February 8, 2019
For Immediate Release
Investment Corporation:
Daiwa House REIT Investment Corporation
2-4-8, Nagatacho, Chiyoda-ku, Tokyo
Jiro Kawanishi, Executive Director(TSE Code: 8984)
Asset Manager:
Daiwa House Asset Management Co., Ltd.
Koichi Tsuchida, President and CEO
Inquiries:
Haruto Tsukamoto, Director and CFO
TEL. +81-3-3595-1265

Notice Concerning Revision to Forecast of Results for the Fiscal Period Ending August 31, 2019and Announcement of Forecast of Results for the Fiscal Period Ending February 29, 2020
Daiwa House REIT Investment Corporation (“DHR”) hereby announces the revision of its forecast of results forthe fiscal period ending August 31, 2019 (from March 1, 2019 to August 31, 2019) announced on October 17, 2018
and newly announces its forecast of results for the fiscal period ending February 29, 2020 (from September 1, 2019
to February 29, 2020), as shown below.
There are no changes to DHR’s forecast of results for the fiscal period ending February 28, 2019 (from September 1,
2018 to February 28, 2019) announced on October 17, 2018.
1.

Revision of the forecast of results for the fiscal period ending August 31, 2019(from March 1, 2019 to August 31, 2019)
Distributions
per unit
Distributions
Net income (excluding in excess of
per unit
distributions earnings per(yen)in excess ofunitearnings)
(yen)
(yen)

Operatingrevenues(millionyen)

Operatingincome(millionyen)

Ordinaryincome(millionyen)

Net income(millionyen)

22,804

9,247

7,847

7,846

4,071

5,100

0

24,585

10,438

8,747

8,747

4,215

5,170

0

Difference(B) – (A)

1,781

1,190

900

900

144

70

－

Percentagechange

7.8%

12.9%

11.5%

11.5%

3.5%

1.4%

－

Previous
forecast(A)
Revisedforecast(B)* Anticipated number of investment units as of the end of the period in previous forecast:
1,927,000 units
Anticipated number of investment units as of the end of the period in revised forecast:
2,075,000 units (refer to “Investment units” in the attachment, “Assumptions for Forecasts of Results for the Fiscal Periods Ending
August 31, 2019 and February 29, 2020” for details)

Disclaimer: This announcement is prepared for the public disclosure of the revision to forecast of results for the fiscal period ending
August 31, 2019 and announcement of forecast of results for the fiscal period ending February 29, 2020 of DHR and has not been
prepared for the purpose of soliciting investment.

-1-2.

Forecast of results for the fiscal period ending February 29, 2020
(from September 1, 2019 to February 29, 2020)

Forecast for thefiscal period
ending February
29, 2020

Operatingrevenues(millionyen)

Operatingincome(millionyen)

Ordinaryincome(millionyen)

Netincome(millionyen)Net
incomeper unit(yen)24,911

10,668

9,161

9,161

4,414

Distributions
per unit
Distributions(excludingin excess ofdistributions
earnings perin excess ofunit (yen)earnings)(yen)5,3700* Anticipated number of investment units as of the end of the period:
2,075,000 units (refer to “Investment units” in the attachment, “Assumptions for Forecasts of Results for the Fiscal Periods Ending
August 31, 2019 and February 29, 2020” for details)(Note 1) The above forecasts are formulated based on current assumptions shown in the attachment, “Assumptions for Forecasts of Results for
the Fiscal Periods Ending August 31, 2019 and February 29, 2020”. Actual figures may fluctuate due to factors such as the acquisitionand disposition of real estate and other transactions in the future, developments in the real estate market and other factors, additional
issuances of new investment units in the future and other changes in circumstances surrounding DHR. The forecasts are not aguarantee of the forecasted distribution amount.
(Note 2) DHR may revise the above forecasts in the event that results are anticipated to differ substantially from the forecasts over a certainlevel.

(Reference) Forecast of results for the fiscal period ending February 28, 2019(from September 1, 2018 to February 28, 2019)

Forecast for thefiscal period
ending February
28, 2019Operating
revenues(millionyen)

Operatingincome(millionyen)

Ordinaryincome(millionyen)Net
income(millionyen)Net
incomeper unit(yen)

22,752

9,610

8,232

8,231

4,271

Distributions
per unit
Distributions(excludingin excess ofdistribution
earnings pers in excess
unit (yen)of earnings)
(yen)
5,300

0

* Anticipated number of investment units as of the end of the period: 1,927,000 units

3.

Reason for the revision and announcement

DHR revised its forecast due to changes in assumptions for forecast of results for the fiscal period ending August 31,
2019 (from March 1, 2019 to August 31, 2019) announced on October 17, 2018 as a result of issuance of new
investment units announced today in the press release “Notice Concerning Issuance of New Investment Units andSecondary Offering of Investment Units” and the acquisition and leasing of assets announced today in the press
release “Notice Concerning Acquisition and Leasing of Trust Beneficiary Interests in Domestic Real Estate”.
Accordingly, DHR announces new forecast of results for the fiscal period ending February 29, 2020 (fromSeptember 1, 2019 to February 29, 2020) based on the same assumptions as above.

* Distribution of this material: This material is distributed to “Kabuto Club” (a media correspondents’ club at theTokyo Stock Exchange), the press club at the Ministry of Land, Infrastructure, Transport and Tourism and the pressclub for construction trade newspapers at the Ministry of Land, Infrastructure, Transport and Tourism.
* DHR’s website: https://www.daiwahouse-reit.co.jp/en/

Disclaimer: This announcement is prepared for the public disclosure of the revision to forecast of results for the fiscal period ending
August 31, 2019 and announcement of forecast of results for the fiscal period ending February 29, 2020 of DHR and has not been
prepared for the purpose of soliciting investment.

-2-Assumptions for Forecasts of Results for the Fiscal Periods Ending August 31, 2019 and February 29, 2020
Item

Assumptions

・ Fiscal period ending August 31, 2019:(184 days from March 1, 2019 to August 31, 2019)
Operating period・ Fiscal period ending February 29, 2020:(182 days from September 1, 2019 to February 29, 2020)
・ DHR has assumed that DHR would acquire the following properties of real-estate trust
beneficiary interests (“Anticipated Acquisitions”) as described in the press release“Notice Concerning Acquisition and Leasing of Trust Beneficiary Interests in Domestic
Real Estate” announced today: Nursery Room Berry Bear Omori Nishi Welcia OtaOmori Nishi Store on March 12, 2019; D Project Kitahachioji I, D Project Kitahachioji
II, D Project Kitahachioji III, iias Tsukuba, Aoyama Tailor Bunkyo Sengoku Ekimae
Store, FOLEO Shobu and Daiwa Roynet Hotel Nagoya Shinkansenguchi on April 5,2019; D Project Itabashi Shingashi, D Project Sagamihara, D Project Kuki VIII, DPortfolio
Project Yokkaichi and D Project Ibaraki Ishioka on April 10, 2019.
・ DHR has assumed that, regarding 229 properties (216 properties of real estate andreal-estate trust beneficiary interests DHR owns as of today plus 13 AnticipatedAcquisitions), there would be no changes in the composition of DHR’s portfolio(acquisition of new properties or disposition of the acquired assets) until the end of thefiscal period ending February 29, 2020 other than the above.
・ Changes in the composition of the portfolio may, however, occur in the future.
・ Operating revenues include revenues from rent, common area charges, parking lot usage
fees, incidental revenues, utilities expenses reimbursements and key money, etc. Each ofOperating revenues
these items is calculated based on past records and future estimates.
・ DHR has assumed that no delinquencies or non-payment of rent by tenants.
・ Operating expenses mainly comprise expenses related to rental business. Such expenses,excluding depreciation, are calculated based on past records, making certain adjustments
as appropriate considering factors that may cause changes in expenses.
・ DHR has assumed that DHR would incur depreciation expenses of 4,767 million yen for
the fiscal period ending August 31, 2019 and 4,832 million yen for the fiscal period
ending February 29, 2020. These figures are calculated based on the straight-line methodwith incidental expenses added to purchase prices of non-current assets.
・ DHR has estimated property tax, city planning tax and depreciation asset tax of 1,784
million yen for the fiscal period ending August 31, 2019 and 1,784 million yen for thefiscal period ending February 29, 2020. Property tax and city planning tax that would be
Operating expenses
paid by DHR and the seller (the former beneficiary) on a pro rata basis in accordance(excludingwith the holding period and settled at the time of acquisition, and such taxes are deemed
amortization ofas acquisition costs of the property and not included in expenses. Property tax and citygoodwill)planning tax for the Anticipated Acquisitions of 206 million yen would be expensed
starting from the fiscal period ending August 31, 2020.
・ DHR has assumed that DHR would incur certain repairs and maintenance expenses ineach fiscal period based on the medium- to long-term repair and maintenance plan
prepared by the Asset Manager. However, actual repairs and maintenance expenses ineach fiscal period may change substantially from DHR’s forecasts, as (i) DHR may
incur expenses for urgent repairs to properties due to damage caused by unforeseeable
factors, (ii) generally, there is a substantial difference in expenses incurred between eachfiscal period, and (iii) expenses are not incurred based on a regular schedule.
・ Selling, general and administrative expenses are estimated based on the actual values orrates, etc., of each item individually.
・ Amortization of goodwill is estimated to be 1,982 million yen for the fiscal period
Amortization ofending August 31, 2019 and to be 1,982 million yen for the fiscal period ending
goodwill
February 29, 2020.

Disclaimer: This announcement is prepared for the public disclosure of the revision to forecast of results for the fiscal period ending
August 31, 2019 and announcement of forecast of results for the fiscal period ending February 29, 2020 of DHR and has not been
prepared for the purpose of soliciting investment.

-3-Item

Assumptions

Non-operating
expenses・ DHR has assumed one-time costs of 200 million yen for the fiscal period ending August
31, 2019 as expenses related to issuance of new investment units and related matters
resolved at a meeting of the board of directors of DHR held today.
・ DHR has assumed interest expenses and other borrowing-related expenses, etc. of 1,492
million yen for the fiscal period ending August 31, 2019 and 1,507 million yen for thefiscal period ending February 29, 2020.

Interest-bearing
debt

Investment units

Distributions
per unit

・ The balance of outstanding interest-bearing debt is 321,268 million yen as of today. Inaddition, DHR assumed that (i) long-term loans of 4,000 million yen would be repaid
and long-term loans of 4,000 million yen would be borrowed on March 27, 2019, (ii)long-term loans of 7,600 million yen would be repaid, and long-term loans of 7,600
million yen would be borrowed on March 29, 2019, (iii) long-term loans of 3,000
million yen would be borrowed as part of funds for the acquisition of the AnticipatedAcquisitions on April 5, 2019 and (iv) long-term loans of 24,500 million yen would beborrowed as part of funds for the acquisition of the Anticipated Acquisitions on April 10,
2019. As a result, DHR assumed the remaining amount of interest-bearing debt would be
348,768 million yen on April 10, 2019.
・ DHR assumed long-term loans of 28,910 million yen that become due by the end of thefiscal period ending February 29, 2020 would be fully refinanced.
・ Other than the above, DHR has assumed the balance of outstanding interest-bearing debt
would be unchanged until the end of the fiscal period ending February 29, 2020.
・ In addition to the 1,927,000 units issued as of today, DHR has assumed that the total of
148,000 units, which is the maximum number of investment units planned to be newly
issued through issuance of new investment units via public offering (138,000 units,assuming over-allotment option is fully exercised (maximum 10,000 units)) which wasresolved at the meeting of the board of directors of DHR held today, would be issued.
・ Net income per unit and distributions per unit are calculated based on the number ofinvestment units issued as of the end of the fiscal periods ending August 31, 2019 andFebruary 29, 2020 will be 2,075,000 investment units including the expected 148,000
units to be newly issued as noted above.
・ Other than the above, DHR has assumed there would be no change in the number ofissued units resulting from the additional issuance of investment units, etc. through theend of the fiscal period ending February 29, 2020.
・ For distributions (distributions per unit), DHR has assumed that a distribution would bemade with limits of the amount of profit in accordance with the distribution policy
prescribed in DHR’s Articles of Incorporation. In addition, DHR has assumed that for
the amount equivalent to amortization of goodwill described in “Amortization ofgoodwill” above, reserve for temporary difference adjustments, apart from net income,would be partially reversed and used as funds for payment, and the reserve fortemporary difference adjustments of 1,982 million yen (955 yen per unit) and 1,982
million yen (955 yen per unit) would be reversed and used as funds for payments in thefiscal periods ending August 31, 2019 and February 29, 2020, respectively.
・ Changes in DHR’s portfolio, fluctuations in rent income due to changes in tenants andother factors, unforeseen repairs and maintenance expenses and other factors may leadto changes in the amount of distributions per unit.

Distributions
in excess ofearnings per unit

・ DHR has no plans to pay distributions in excess of earnings (distributions in excess ofearnings per unit) as of today.

Others・ DHR has assumed that no enforcement of such revisions to laws and regulations, tax
systems, accounting standards, securities listing regulations and rules of The Investment
Trusts Association, Japan, etc. that may affect the above forecasts.
・ DHR’s forecasts assume no unforeseen significant changes in general economic trends
or conditions in the real estate market.

Disclaimer: This announcement is prepared for the public disclosure of the revision to forecast of results for the fiscal period ending
August 31, 2019 and announcement of forecast of results for the fiscal period ending February 29, 2020 of DHR and has not beenprepared for the purpose of soliciting investment.

-4-