Financial Summary for the Fiscal Year Ending November 2025 (REIT)

Overview of Financial Results

For the fiscal year ending November 2025, Daiwa Office Investment Corporation recorded operating revenue of JPY 16,056 million (5.6% YoY increase), operating income of JPY 8,593 million (8.5% YoY increase), ordinary income of JPY 7,497 million (7.9% YoY increase), and net income attributable to owners of parent of JPY 7,496 million (7.9% YoY increase). Distributions per unit rose to JPY 8,020, with a payout ratio of 100.0%. The occupancy rate remained high at 98.9%, securing stable earnings supported by a favorable leasing environment in the central Tokyo office building market.

Asset Management and Financial Condition

At the end of the period, the portfolio consisted of 58 properties (total acquisition cost of JPY 464,354 million) and one anonymous partnership investment interest (JPY 3,746 million), maintaining a portfolio focused on office buildings in central Tokyo. Interest-bearing debt stood at JPY 217,950 million, with an average remaining maturity of long-term borrowings of 4.1 years. Treasury unit retirements totaled 8,410 units, and net assets amounted to JPY 242,491 million. The financial strategy is based on leverage control, maturity diversification, and maintaining a long-term borrowing ratio of over 70%.

Outlook and ESG Initiatives

Operating revenue and profits for the fiscal periods ending May 2026 and November 2026 are expected to slightly decline; however, distributions per unit are planned at JPY 7,250 and JPY 7,070, respectively. On the ESG front, active initiatives continue with targets for reducing GHG emissions, an increase in properties with environmental certifications, and achieving the Green Star rating for 14 consecutive years in the GRESB evaluation.