daVinci Select K.K. Business Results for the Fourth Fiscal ...2 第3期末第4期末 Fourth Fiscal...

daVinci Select K.K.

January 24, 2008

Business Results for the Fourth Fiscal Period, Ended November 30, 2007

11

Disclaimer: This presentation includes forward-looking statements about DA Office Investment Corporation, daVinci Select and daVinci Advisors and affiliated companies (the Group). To the extent that statements in this presentation do not relate to historical or current facts, they constitute forward-looking statements. These forward-looking statements are based on the current assumptions and beliefs of the Group in light of current information and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause actual performance to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements.

This document is not intended as an inducement or invitation to purchase or invest in the products or investment shares of the Group. Nor is the document intended to provide comprehensive information about the business performance and strategies of the Group. Each investment decision requires the independent exercise of judgment in fully reviewing the merits and risks. Investment decisions should not rely solely on the information contained herein and should consider multiple factors utilizing various sources of information.

The Group undertakes no obligation to publicly update any forward-looking statements after the date of this presentation.

2

第３期末第４期末

Fourth Fiscal Period Highlights■Business Results for the Fourth Fiscal Period (June 1, 2007 – November 30, 2007)

（Disclosed as of June 15, 2007）

Operating RevenueOperating Revenue

Operating IncomeOperating Income

Net IncomeNet Income

Dividend per UnitDividend per Unit

Results (35 Properties)Results (35 Properties)

¥8,553 million¥8,553 million



¥21,245¥21,245

Change from Previous PeriodChange from Previous Period

+¥2,402 million+¥2,402 million



-¥8,129-¥8,129

+39.1%+39.1%

+40.9%+40.9%

+48.3%+48.3%

-27.7%-27.7%

Initial Forecast (33 properties)

Initial Forecast (33 properties)




¥19,716¥19,716

Difference between Actual Results and Forecast

Difference between Actual Results and Forecast

+¥329 million+¥329 million



+¥1,529+¥1,529

+4.0%+4.0%

+4.0%+4.0%

+7.8%+7.8%

+7.8%+7.8%

■ Forecasts Fifth Period Sixth Period

Operating Revenue

Operating Revenue

Operating Income

Operating Income

Net IncomeNet Income

Dividend per Unit

Dividend per Unit




¥19,013¥19,013




¥14,706¥14,706

■Recent Key Activities

Expansion of asset scaleExpansion of asset scale

Third period-end Fourth period-end(Note) The amounts above for total acquisition price do not include various costs necessary for undertaking acquisitions

3

93.5%

95.3% 99.0%95.9% 97.8%

Asset Scale

(Acquisition Price)

October. 2005

(As of IPO)

May 31, 2006

(First period-end)

May 31, 2007

(Third period-end)

November 30, 2006

(Second period-end)

November 30, 2007

(Fourth period-end)

Acquisition price approx. ¥287.0 billion

Fourth Fiscal Period Highlights

Ratio of properties located in the Tokyo

metropolitan area

Acquisition price approx. ¥138.4 billionAcquisition price

approx. ¥130.4 billionAcquisition price

approx. ¥110.8 billion

Acquisition price approx. ¥79.5 billion


metropolitan area


metropolitan area


metropolitan area


metropolitan area

External Growth—Performance Results

4

Starting with an asset scale of ¥79.5 billion at the time of listing on the Tokyo Stock Exchange on October 19, 2005, DA Office REIT has attained solid growth in its portfolio. With the acquisitions of the Shinjuku Maynds Tower (42.9％ co-ownership), SHIBUYA EDGE, and daVinci Shinagawa II on July 13, 2007, daVinci Minami-Senba and daVinci Kodemmacho on August 31, 2007, and the Shinjuku MayndsTower (42.9％ co-ownership) on November 26, 2007, the value of its portfolio has expanded to ¥287.0 billion in just two years and one month since public listing.

Continuing its external growth strategy, DA Office REIT is aiming to reach an asset scale of ¥300.0 billion by the end of 2008.

■Changes in Value of Property Acquisitions since Public Listing

5

■ daVinci Advisors Performance Results

External Growth—Next Growth Strategy■ Portfolio Composition Strategy

Continue investment focus on TokyoContinue investment focus on Tokyo’’s s five central wardsfive central wards

Invest in office buildings that have Invest in office buildings that have potential for internal growthpotential for internal growth

■ Revision of Operating Guidelines （09/28/2007）

● daVinci Advisors, a real estate fund giant, has an extensive track record as a real estate private fund in fund formation, operation and management.

● An investment fund on the scale of ¥1 trillion (the “¥1 Trillion Fund”) was put in place in February 2006.

daVinci Iidabashi daVinci Takada 3-chome daVinci Shinjuku

■ Examples of daVinci Advisors’ investment assets

The size of properties that can be The size of properties that can be acquired has been increasedacquired has been increased

Properties can be acquired up to Properties can be acquired up to 110% of their appraisal value110% of their appraisal value(when the transaction involves interested parties)(when the transaction involves interested parties)

Kokusai Akasaka Bldg. daVinci Fukuoka Tenjin daVinci Sakurabashi

6

Fourth Period NOI Yield■ NOI Yield (based on 35 properties at the end of the fourth fiscal period*1)

*1 daVinci Yushima, daVinci Nishi-Gotanda, DaVinci Kayabacho 376 and daVinciShin-Yokohama 131 are not included in the fourth fiscal period.

*2 The base for the annualized NOI yield is before property repair expenses.

5.0%5.0%Fourth Period NOI Yield Fourth Period NOI Yield *2*2

Rent IncreasesRent IncreasesIn the fourth fiscal period,

of the 63 tenants who renewed contracts,

58 58 tenants (92%) accepted rent increases

Total rent increase: 3.93.9％(Third period: 2.4%)

Rent Gap RateRent Gap Rate

31.331.3%%

7

100％

Implementation of Increased Rent Revisions■ Rent Revisions (35 properties with 353 tenants at fourth period-end)

■ Rental Increase for Targeted Tenants

■ Total Rent IncreaseTenants subject to

rent revisions

■ Higher Rent Revision Success Rate

63

58 (14 tenants renegotiated new contracts)

Achieved fourth fiscal period target of Achieved fourth fiscal period target of increasing total rent revenues 2.5% above the increasing total rent revenues 2.5% above the second period!!second period!!

58 (14 tenants renegotiated new contracts)

16.016.0％％

3.93.9％％17.8％

(14 tenants renegotiated

new contracts)

Tenants not subject to rent revisions

290

82.2％

Rent increase by type of tenant

Tenants in rent revision negotiations

92.1％

Tenants continuing previous contract terms

5

7.9％

100％

Tenants accepting rent increases

For its 35 properties held as of the fourth period-end, DA Office REIT has been implementing rent increases since June 1, 2007

Total rate of rent increase = total monthly rent for fourth period-end / (total monthly rent as of third period-end) – (total monthly rent at third period-end for properties sold during the fourth period) + (monthly rents at July-end for Shinjuku Maynds Tower, SHIBUYA EDGE and daVinci Shinagawa II, and monthly rents at August-end for daVinci Kodemmacho and daVinci Minami-Senba)

Tenant type Rent increase

Contract renewal 13.1%New contract 43.6%

Internal Growth—Management Indicators

8

0

1

2

3

4

Second Period Third Period Fourth Period

As of May 31, 2006As of November 30,

2006 As of May 31, 2007As of November 30,

2007

15 acquisitionsat time of IPO*2 5.1% 5.3% 5.5% 5.9%

9 acquisitionsin first period 5.3% 5.8% 6.1% 6.1%5 acquisitions

in second period - 5.5% 5.7% 6.1%1 acquisition

in third period - - 5.4% 5.6%5 acquisitions

in fourth period - - - 3.6%Total at the end of

fourth period 5.3% 5.6% 5.7% 5.0%*1 The base for the annualized NOI yield is before property repair expenses.*2 The above calculations of the NOI yield exclude data for properties sold before November 30, 2007.

■ Changes in Occupancy Rate■ Changes in Annualized NOI Yields*1

■Increases in Portfolio Rental Levels

2.1%2.1% 2.4%2.4%

3.9%3.9%(%)

■ Results of Rent Increase at daVinci Nihonbashi Honcho

daVinci NihonbashiHoncho

¥¥9,090 9,090 millionmillion

May 31, 2007May 31, 2007

¥¥10,100 10,100 millionmillion

November 30, 2007November 30, 2007

Period-end appraisal value increase

Up 11.1%

¥¥16,64616,646//tsubotsubo

April 30, 2007April 30, 2007

¥¥18,75418,754//tsubotsubo

November 30, 2007November 30, 2007Up 10.6%

Monthly rental contract Average increase

62.2%62.2%April 30, 2007April 30, 2007

44.0%44.0%November 30, 2007November 30, 2007

Proportion of rent gap

90.0

91.0

92.0

93.0

94.0

95.0

96.0

97.0

98.0

99.0

100.0

Oct

. 31

Jan.

31

Mar

. 31

May

. 31

Jul. 3

1

Sep.

30

Nov.

30

Jan.

31

Mar

. 31

May

. 31

Jul. 3

1

Sep.

30

Nov.

31

2005 2006 2007

Occupancy rate as of Occupancy rate as of November 30, 2007November 30, 2007

98.2%98.2%

(%)

Internal Growth—Next Growth Strategy

9

* NOI (rent cash flows) = Earnings from rental operations – Expenditures from rental operations + Depreciation from the fiscal period

■Increased Rent Revision Outline

賃料のギャップを埋める戦略賃料増額改定の推進Strategy for Bridging the Rent Gap Pushing Ahead with Increased Rent Revisions

Push ahead with increased rent revisions

Gap between current DA Office REIT property rent levels and

market rent levelsMaximize NOI

Fifth fiscal period target: 3.5% increase in rental revenues Fifth fiscal period target: 3.5% increase in rental revenues (above previous period)(above previous period)

Closing the Rent Gap

10

■Comparison of Current Rent and Market-Level Rent (for 35 Properties as of November 30, 2007)Current rent levels for DA Office REIT properties are below accepted market levels. DA Office REIT anticipates the importance of closing this “rent gap,” and has therefore positioned increased rental revisions as a management priority.

*1 Current rent is calculated based on the rent level on April 30, 2007 for offices above the second floor

*2 Market rent is based on assessments prepared in market reports by Tokyu Livable, Inc.

*3 Rent gap ＝ (Market rent – Current rent) / Current rent

*4 Market rent (Apr. 2007) figures shown for da Vinci Kodemmacho and da Vinici Minami-Senba actually represent figures current as of August 2007.

Area Property name Current rent(Nov. 2007)

Market rent(Apr. 2007)

Market rent(Nov. 2007)

Market rentchange (%)

Rent gap rate(Nov. 2007)

daVinci Ginza 28,301 35,000 35,000 0.0% 23.7%daVinci Ginza Annex 22,762 29,500 30,000 1.7% 31.8%daVinci Kamiyacho 24,401 31,000 31,000 0.0% 27.0%daVinci Shibaura 18,341 19,500 21,000 7.7% 14.5%

daVinci Minami Aoyama 29,108 32,000 35,000 9.4% 20.2%daVinci Mita 18,757 21,000 23,000 9.5% 22.6%

daVinci Sarugakucho 18,150 21,000 21,000 0.0% 15.7%daVinci A Hamamatsucho 19,892 22,000 22,000 0.0% 10.6%

daVinci Jingumae 22,082 24,000 24,000 0.0% 8.7%daVinci Shibadaimon 18,967 22,000 25,000 13.6% 31.8%

daVinci Misakicho 20,111 21,000 21,000 0.0% 4.4%daVinci Shimbashi 510 16,766 19,000 19,000 0.0% 13.3%

daVinci Tsukiji 18,083 18,000 19,000 5.6% 5.1%BPS Square 12,628 17,000 17,000 0.0% 34.6%

daVinci Tsukiji 616 14,196 19,000 19,000 0.0% 33.8%Shuwa Tsukishima Bldg. 14,047 15,500 16,000 3.2% 13.9%

Nihonbashi MS Bldg. 16,069 20,000 20,000 0.0% 24.5%Atlantic Bldg. 16,794 20,000 21,000 5.0% 25.0%

Shibuya SS Bldg. 22,495 30,000 30,000 0.0% 33.4%

Five

cen

tral w

ards

of T

okyo

Area Property name Current rent(Nov. 2007)

Market rent(Apr. 2007)

Market rent(Nov. 2007)

Market rentchange (%)

Rent gap rate(Nov. 2007)

daVinci Nihonbashi Honcho 18,754 27,000 28,000 3.7% 49.3%daVinci Ginza 1-chome 27,269 30,000 32,000 6.7% 17.3%

daVinci Kyobashi 18,708 22,000 22,000 0.0% 17.6%Sunline 7 Bldg. 21,512 26,000 27,000 3.8% 25.5%

daVinci Onarimon 20,878 27,000 30,000 11.1% 43.7%Shinjuku Maynds Tower 31,100 45,000 45,000 0.0% 44.7%

SHIBUYA EDGE 31,312 32,500 33,000 1.5% 5.4%daVinci Kodemmacho 15,420 18,000 18,000 0.0% 16.7%

Subtotal 24,183 31,906 32,504 1.9% 34.4%daVinci Kinshicho 12,210 16,000 16,000 0.0% 31.0%

daVinci Higashi-Ikebukuro 14,195 16,000 16,000 0.0% 12.7%daVinci Shin-Yokohama 214 11,028 14,000 14,000 0.0% 26.9%

Bennex S-3 14,665 15,000 15,000 0.0% 2.3%Believe Omori 17,089 19,000 19,000 0.0% 11.2%

Sapporo Chiyoda Bldg. 12,075 13,000 13,000 0.0% 7.7%daVinci Shinagawa II 18,170 21,000 21,000 0.0% 15.6%

daVinci Minami-Senba 12,641 13,000 14,000 7.7% 10.8%Subtotal 14,078 15,826 15,950 0.8% 13.3%

21,892 28,260 28,751 1.7% 31.3%TotalFi

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Fourth Period Financial Highlights

11

■Public offerings (July 10 and August 7, 2007)

* Including overallotment

■Acquired Bond Rating (September 12, 2007)

Rating issued *Rating issued *

A+A+ ((Stable)Stable)

* Rating and Investment Information, Inc. (R&I)

■Investment Corporation Bond Issue Registration (Submitted October 2, 2007)

Planned issue amount *Planned issue amount *¥¥100,000100,000 millionmillion

■Issue of Investment Corporation Bond (November 26, 2007)

First Unsecured Investment Corporation Bond *First Unsecured Investment Corporation Bond *

¥¥30 billion30 billion

* Date of maturity: November 28, 2008

* The period of the planned issue amount is from October 10, 2007 to October 9, 2009

Total amount *Total amount *¥¥49,698 million49,698 million ¥¥128,779128,779 millionmillion

Total unitsTotal units100,000100,000 unitsunits 205,000205,000 unitsunits

1212

Acquired Property and Interest-Bearing Liabilities

0

50

100

150

200

250

300

3rd period-end July 31 Aug. 31 Nov. 26 4th period-end

Acquisition price

(Incl. unsecured assets)Interest-bearing liabilities

(Note) Investment corporation bonds are included in interest-bearing liabilities

¥84.1 billion ¥78.8 billion ¥85.3 billion

¥138.4 billion

¥211.0 billion ¥218.3 billion

¥287.0 billion

¥154.9 billion

Period-end ratio of total assets to interest-

bearing liabilities：

57.7%

Period-end ratio of total assets to

interest-bearing liabilities：

51.2%

¥287.0 billion

¥154.9 billion

37% 36% 61% 61%0%

English page

Properties acquired (2

buildings: ¥7.3 billion)

Properties acquired (7:3 co-ownership of Shinjuku

Maynds Tower: ¥68.7 billion)

Ratio of acquisition price standards to interest-bearing

liabilities:

39.1%


liabilities:

37.3%


liabilities: 54.0%

Unsecured asset ratio Unsecured asset ratio

(Billions of yen)Properties

acquired via PO (3 buildings: ¥78.7

billion)

13

Diversification of Debt Repayment

30 .0

14 .5 5

8 .6257 .5

10 .0

2.5

30.0 6.168

5.011 .07.2

5.013 .5

3 .5

0

10

20

30

40

50

60

70

May

2008

Nov.

2008

May

2009

Nov.

2009

May

2010

Nov.

2010

May

2011

Nov.

2011

May

2012

Nov.

2012

Year of Repayment

Am

ount

of R

epay

men

t

FixedFloating

(Billions of yen)

Settlement dates will be spread out through

refinancing to undertake the prepayment of debt to the

utmost extent

Finance ActivitiesEnglish page

Conversion to long-term fixed loans will be considered

Reference MaterialReference Material

daVinci Select K.K.

January 24, 2008

Fourth Period Acquisitions (1)

Shinjuku Shinjuku MayndsMaynds TowerTower

■Overview of Property

Fourth period NOI yield (Note 1) 3.3%

4.9%

¥31,100¥45,000¥50,00044.7%

Assumed NOI yield based on market report (Note 2)

Acquisition Price: ¥65,100 million

Acquired as of Acquired as of July 13, 2007July 13, 2007

Acquisition Price: ¥68,700 million

Co-ownership: 42.9％

Co-ownership:

85.7％

Total Acquisition PriceTotal Acquisition Price:

¥133,800 million

15

Acquired as of Acquired as of November 26, 2007November 26, 2007

Current rent (Note 3)

Market rent (Note 4)

Most recent rental lease

Rent gap ratio (Note 5)

(Note 1) Fourth period NOI yield = Fourth period NOI / acquisition price (July and September are annualized and calculated on a weighted average basis)(Note 2) Assumed NOI Yield (before property repair expenses) is calculated based on a market report by Tokyo Livable, Inc. (Note 3) Current rent is based on the rent level on November 30 for offices above the second floor.(Note 4) Market rent is based on an assessment prepared in a market report by Tokyo Livable, Inc. (November 30, 2007).(Note 5) Rent gap ratio ＝ (Market rent – Current rent) / Current rent

Location: 2-1-1 Yoyogi, Shibuya-ku, Tokyo

Land area: 11,500.48 m2

Structure: S, SRC

Number of floors: 3 below ground, 34 above ground

Floor area: 97,978.74 m2

Leasable floor area: 51,911.14 m2

Construction completion: September 26, 1995

Occupancy rate: 99.4% (as of November 30, 2007)(Note) DA Office REIT acquired trust beneficiary rights in real estate for co-ownership corresponding to a ratio of 6:7 of the entire building. The above figures for land area, floor area and leasable floor space refer to the entire property.

Co-ownership: 42.9％

daVincidaVinci MinamiMinami--SenbaSenba daVincidaVinci KodemmachoKodemmacho

¥12,641¥14,000¥13,000

10.8%4.8% 6.1%

¥15,420¥18,000¥16,000

16.7%4.9%5.4%

16





Projected fourth period NOI yield








(Note 1) Current rent is based on the rent level on November 30 for offices above the second floor.

(Note 2) Market rent is based on an assessment prepared in a market report by Tokyo Livable, Inc. (November 30, 2007).

(Note 3) Rent gap ratio ＝ (Market rent – Current rent) / Current rent

(Note 4) Assumed NOI Yield (before property repair expenses) is calculated based on a market report by Tokyo Livable, Inc.

Fourth Period Acquisitions (2)■Overview of Properties

Location: 4-11-28 Minami Senba, Chuo-ku, Osaka

Land area：1,405.74 m2

Structure: SRC

Number of floors: B1/8F

Floor area：7,738.47 m2

Leasable floor area：5747.05 m2

Construction completion：September 30, 1986

Acquisition price：¥4.81 billion

Occupancy rate：92.8% (As of November 30, 2007)

Location: 3-2 Odemmacho Nihonbashi, Chuo-ku, Tokyo

Land area：486.86 m2

Structure: SRC

Number of floors: 8F

Floor area：2,882.28 m2

Leasable floor area：2,379.21 m2

Construction completion：March 25, 1985

Acquisition price：¥2.46 billion

Occupancy rate：100% (As of November 30, 2007)





■Overview of Properties

SHIBUYA EDGESHIBUYA EDGE

¥31,312¥33,000¥33,000

5.4%4.5% 4.5%

¥18,170¥21,000¥21,000

15.6%5.2% 5.6%

17

Fourth Period Acquisitions (3)













daVincidaVinci Shinagawa IIShinagawa II

Location: 10-3 Udagawa-cho, Shibuya-ku, Tokyo

Land area: 527.65 m2

Structure: RC




Construction completion: August 30, 2006

Acquisition price: ¥5.90 billion

Occupancy rate: 100% (As of November 30, 2007)

Location: 1-8-11 Kita-Shinagawa, Shinagawa-ku, Tokyo

Land area: 2,345.20 m2

Structure: SRC




Construction completion: July 3, 1991

Acquisition price: ¥7.71 billion

Occupancy rate: 99.5% (As of November 30, 2007)









Property Disposition Results

18

(Millions of yen)

* Capital gain: Gain on sale/acquisition price

DA Office REIT aims to raise portfolio quality by selling its small-sized office buildings and office buildings outside of the five central wards of Tokyo to bring about high gains on sales.

Period Property name Acquisition price Appraisal value Selling price Capital gain*

2 daVinci Gyoenmae 1,688 1,719 2,180 29.1%

3

daVinci Shimbashi 620 660 732 790 19.7%

daVinci Koishikawa 1,460 1,460 1,500 2.7%

daVinci Okayama 1,266 1,357 1,600 26.4%

daVinci Hakata 2,520 2,280 3,090 22.6%

4

daVinci Nishi-Gotanda I 1,640 1,790 2,211 34.8%

daVinci Kayabacho 376 2,020 2,400 2,600 28.7%

daVinci Shin-Yokohama 131 1,350 1,520 2,165 60.4%

daVinci Yushima 1,080 1,200 1,295 19.9%

5Sapporo Chiyoda Bldg. 1,384 1,624 2,005 44.9%

daVinci Shin-Yokohama 2,180 2,980 3,200 46.8%

6 Believe Omori 3,160 4,010 4,480 41.8%

Total 20,408 23,072 27,116 32.9%

19

Fifth Fiscal Period EPS Interest Sensitivity

0.00% 0.15% 0.30% 0.45% 0.60% 0.75%0% 207 0 -207 -414 -622 -8291% 569 361 154 -53 -260 -4672% 930 723 516 308 101 -1063% 1,292 1,085 877 670 463 2554% 1,654 1,447 1,239 1,032 824 6175% 2,016 1,808 1,601 1,394 1,186 979

Imapact of dividendper unit

Interest rate spread (annual rate)

Rate of rentincrease

(six-monthperiod

0.00% 0.15% 0.30% 0.45% 0.60% 0.75%0% 19,221 19,013 18,806 18,599 18,391 18,1841% 19,582 19,375 19,168 18,960 18,753 18,5452% 19,944 19,737 19,529 19,322 19,115 18,9073% 20,306 20,099 19,891 19,684 19,476 19,2694% 20,668 20,460 20,253 20,046 19,838 19,6315% 21,029 20,822 20,615 20,407 20,200 19,993

Forecast dividendper unit

Interest rate spread (annual rate)

Rate of rentincrease

(six-monthperiod)

The above impact on dividend per unit is factored in to

recalculate the forecast dividend based on the publicly announced

amount of ¥19,013

A 0.15% interest rate increase is factored in on the basis of current short-term variable

interest rate levels

(Unit: Yen)

(Unit: Yen)

Since interest rate revisions are planned during the fifth

fiscal period mainly on February 29, 2008, interest

cost has been calculated over a three-month period

(Note) The above sensitivity analysis is based solely on the forecast dividend per unit and is provided for simulation purposes only. Accordingly, there is no guarantee of the accuracy of predicted amounts.

The dividend per unit is based on the assumption that a total of 205,000 units have

been issued

Sensitivity Analysis

Portfolio Performance Summary (Fourth Fiscal Period Results by Property)

20

daVinciGinza

daVinciGinzaAnnex

daVinciKamiyacho

daVinciShibaura

daVinciMinamiAoyama

daVinciMita

daVinciSarugakucho

daVinci AHamamatsu

cho

daVinciJingumae

daVinciShibadaimo

n

daVinciMisakicho

daVinciShinbashi

510

daVinciKaya-

bacho 376

daVinciTsukiji

daVinciTsukiji 616

ShuwaTsuki-

shima Bldg.

NihonbashiMS Bldg. Atlanctic Bldg.

14,100 3,050 12,000 8,265 4,550 3,250 3,000 2,865 2,800 2,578 2,346 2,080 1,560 1,240 2,440 7,840 2,520 1,60014,031 3,021 12,054 8,238 4,532 3,201 3,029 2,836 2,798 2,549 2,331 2,090 1,518 1,272 2,398 7,694 2,550 1,59917,800 3,240 14,200 9,226 5,050 4,410 3,530 3,185 2,940 2,853 2,482 2,470 1,780 1,710 2,440 7,990 3,290 1,940

99.5 98.2 90.1 98.7 100 100 100 100 100 100 100 95.4 100 100 86.8 100 81.0 10012.5 12.7 13.8 14.5 13.8 9.5 14.6 14.6 13.9 12.5 13.1 13.4 12.5 14.0 13.0 14.4 11.8 13.7183 183 183 183 183 183 183 183 183 183 183 183 183 183 183 183 183 183

1 Operating Revenues 499,845,047 94,922,908 365,266,005 325,517,661 153,569,193 141,932,701 127,339,552 148,684,225 90,886,277 97,515,608 87,292,799 85,955,247 54,900,000 55,522,048 75,424,879 254,825,484 96,100,289 63,815,427Revenues from Property Leasing(Incl. common service fees) 492,601,047 94,922,908 365,266,005 323,510,661 153,569,193 141,932,701 127,339,552 148,684,225 90,886,277 97,515,608 87,292,799 85,955,247 54,900,000 55,522,048 75,424,879 254,825,484 96,100,289 63,815,427Other Income (*2) 7,244,000 0 0 2,007,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0

87,096,967 21,218,991 71,395,019 60,214,367 31,210,230 33,149,152 29,121,755 60,826,078 20,256,937 20,552,245 16,923,586 15,975,750 6,124,564 11,603,681 21,234,322 50,600,178 19,245,722 12,388,794Property Management Fees 12,814,965 4,127,077 13,862,312 11,888,880 3,827,810 9,436,474 5,385,342 9,063,812 3,924,625 5,750,460 2,891,368 4,513,270 0 2,548,950 4,951,949 8,401,658 3,923,462 3,205,760Utilities 28,973,654 8,022,561 16,467,760 20,500,226 8,971,857 10,443,091 9,493,331 10,207,360 8,832,617 7,254,458 7,110,924 4,371,341 0 3,761,438 7,209,437 24,421,788 6,651,284 2,559,328PM Fees 9,874,084 1,652,388 7,996,601 8,340,202 7,430,981 2,696,675 3,458,403 2,924,394 1,361,918 1,818,032 1,309,903 1,470,794 677,773 1,258,584 1,434,258 4,313,836 1,492,071 1,415,659Prperty Related Taxes (*3) 22,558,531 7,220,314 32,510,507 18,901,828 10,776,855 10,258,435 3,031,870 8,964,948 5,955,555 5,562,443 5,434,371 5,448,551 5,293,158 3,942,340 7,435,782 13,022,013 6,970,238 5,083,494Insurance 800,383 185,651 557,839 583,231 202,727 314,477 199,229 265,564 111,863 166,852 177,020 171,794 153,633 92,369 202,896 440,883 208,667 124,553Other 12,075,350 11,000 0 0 0 0 7,553,580 29,400,000 70,359 0 0 0 0 0 0 0 0 0

412,748,080 73,703,917 293,870,986 265,303,294 122,358,963 108,783,549 98,217,797 87,858,147 70,629,340 76,963,363 70,369,213 69,979,497 48,775,436 43,918,367 54,190,557 204,225,306 76,854,567 51,426,633823,240,706 147,005,080 586,136,119 529,156,843 244,049,297 216,972,652 195,898,884 175,236,194 140,872,727 153,506,161 140,353,894 139,576,592 97,284,339 87,596,742 108,084,990 407,334,626 153,289,163 102,572,246

5.8% 4.8% 4.9% 6.4% 5.4% 6.7% 6.5% 6.1% 5.0% 6.0% 6.0% 6.7% 6.2% 7.1% 4.4% 5.2% 6.1% 6.4%Repair expenses 5,710,585 9,219,740 4,357,445 5,877,744 11,642,073 4,028,547 9,904,058 924,000 1,210,144 35,000 652,000 4,723,800 438,000 90,369 2,758,800 8,082,800 2,707,287 556,364Annualized repair expenses 11,389,964 18,389,098 8,691,078 11,723,369 23,220,528 8,035,080 19,753,995 1,842,950 2,413,675 69,808 1,300,437 9,421,786 873,606 180,244 5,502,524 16,121,431 5,399,780 1,109,687NOI yield to repair expenses 0.1% 0.6% 0.1% 0.1% 0.5% 0.2% 0.7% 0.1% 0.1% 0.0% 0.1% 0.5% 0.1% 0.0% 0.2% 0.2% 0.2% 0.1%NOI after repair expenses 811,850,742 128,615,982 577,445,041 517,433,474 220,828,769 208,937,572 176,144,889 173,393,244 138,459,052 153,436,353 139,053,457 130,154,806 96,410,733 87,416,498 102,582,466 391,213,195 147,889,383 101,462,559NOI yield after repair expenses 5.8% 4.2% 4.8% 6.3% 4.9% 6.4% 5.9% 6.1% 4.9% 6.0% 5.9% 6.3% 6.2% 7.0% 4.2% 5.0% 5.9% 6.3%Depreciation and amortization 66,196,625 16,524,679 44,174,418 30,252,535 17,440,590 22,168,693 13,863,711 14,433,470 9,530,026 14,353,675 14,076,047 3,800,264 17,519,099 11,218,709 25,277,001 65,192,802 15,769,428 7,893,985Restoration and renovation work 2,571,429 0 0 187,500 8,200,000 0 0 0 0 0 0 0 0 0 0 0 5,700,000 0Deferred security deposits 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Shibuya SSBldg.

daVinciNihonbashi

Honcho

daVinciGinza 1-chome

daVinciKyobashi

Sunline 7Bldg.

daVinciOnarimon

ShinjukuMayndsTower

SHIBUYAEDGE

daVinciKoemmach

o

daVinciKinshicho

daVinciHigashi-

Ikebukuro

daVinciShin-

Yokohama

BennexS-3

BelieveOmori

daVinciShinagawa

II

SapporoChiyoda

Bldg.

daVinciMinamiSenba

Total of 35Properties

3,930 7,420 4,620 3,460 2,680 13,860 133,800 5,900 2,460 3,653 2,958 2,180 4,950 3,160 7,710 1,384 4,810 287,0193,922 7,397 4,630 3,457 2,689 13,899 134,366 5,927 2,474 3,556 2,915 2,097 4,837 3,166 7,696 1,361 4,831 286,9794,510 10,100 5,530 3,810 3,060 16,800 137,000 5,980 2,410 3,879 3,417 2,980 6,060 4,010 7,760 1,624 4,810 314,276100.0 97.9 96.6 100 97.2 100 99.4 100 100 100 100 95.6 97.3 100 99.5 100 92.8 98.2

14.7 12.0 13.6 13.4 14.1 14.8 9.4 11.2 14.7 14.9 13.9 13.0 12.9 12.8 11.9 10.5 12.5 9.6183 183 183 183 183 183 141（5）（*5） 141 92 183 183 183 183 183 141 183 92 -

1 Operating Revenues 142,735,027 286,330,751 163,900,857 123,603,720 102,063,068 476,881,671 1,143,199,907 118,139,804 36,838,260 170,733,498 147,405,018 111,241,660 228,980,865 133,350,003 194,444,668 89,760,418 77,357,628 6,566,282,173Revenues from Property Leasing(Incl. common service fees) 142,735,027 255,127,421 163,900,857 123,603,720 101,801,778 476,881,671 1,142,268,020 118,139,804 36,838,260 170,733,498 147,405,018 110,490,396 228,980,865 133,350,003 194,444,668 89,760,418 77,357,628 6,523,883,402Other Income (*2) 0 31,203,330 0 0 261,290 0 931,887 0 0 0 0 751,264 0 0 0 0 0 42,398,771

30,597,764 48,653,013 31,503,922 20,920,993 25,562,743 87,961,813 290,511,766 16,436,231 6,270,054 46,495,869 41,589,569 20,312,820 49,481,472 33,995,175 39,403,970 28,174,827 18,596,395 1,425,606,734Property Management Fees 6,104,310 14,769,924 5,912,600 4,651,658 4,207,506 17,934,075 52,632,160 2,972,663 1,530,245 15,192,140 10,153,002 5,154,090 16,172,115 11,686,854 10,169,351 11,086,105 6,803,700 307,650,672Utilities 11,603,132 15,411,049 8,987,280 7,711,178 6,252,178 24,667,403 123,207,275 6,029,256 1,772,598 15,069,259 18,796,205 9,046,870 20,748,136 9,851,081 12,173,502 8,392,859 4,793,503 489,765,219PM Fees 2,396,824 6,219,001 9,563,565 1,863,101 2,058,195 12,852,350 13,884,472 2,454,351 660,204 2,708,596 2,214,099 2,160,803 3,783,654 3,131,270 4,137,731 1,569,777 1,345,617 133,930,166Prperty Related Taxes (*3) 10,243,345 11,812,925 6,814,822 6,493,205 12,863,611 31,843,966 95,580,740 4,816,217 1,827,249 13,171,092 10,071,901 3,633,020 8,205,465 9,024,341 12,491,891 6,608,212 5,474,207 429,347,442Insurance 250,153 440,114 225,655 201,851 181,253 664,019 2,569,373 163,744 63,914 354,782 354,362 318,037 572,102 301,629 421,994 495,374 179,368 12,717,355Other 0 0 0 0 0 0 2,637,746 0 415,844 0 0 0 0 0 9,501 22,500 0 52,195,880

112,137,263 237,677,738 132,396,935 102,682,727 76,500,325 388,919,858 852,688,141 101,703,573 30,568,206 124,237,629 105,815,449 90,928,840 179,499,393 99,354,828 155,040,698 61,585,591 58,761,233 5,140,675,439224,890,664 476,661,397 265,521,325 205,929,644 153,420,981 779,976,638 2,207,313,272 263,275,206 121,276,034 247,796,363 211,052,671 181,360,801 358,017,915 198,166,733 401,346,487 122,834,648 233,128,804 11,100,136,838

5.7% 6.4% 5.7% 6.0% 5.7% 5.6% 3.3% (*6) 4.5% 4.9% 6.8% 7.1% 8.3% 7.2% 6.3% 5.2% 8.9% 4.8% 5.0%Repair expenses 2,496,054 3,533,820 456,600 783,833 1,260,079 254,500 20,774,324 24,000 48,000 11,748,029 1,311,159 7,625,609 4,817,400 1,558,000 4,959,803 6,459,500 0 141,029,466Annualized repair expenses 4,978,468 7,048,329 910,704 1,563,382 2,513,272 507,609 53,777,505 62,127 190,434 23,431,861 2,615,153 15,209,548 9,608,475 3,107,486 12,839,206 12,883,702 0 290,176,834NOI yield to repair expenses 0.1% 0.1% 0.0% 0.0% 0.1% 0.0% 0.1% 0.0% 0.0% 0.6% 0.1% 0.7% 0.2% 0.1% 0.2% 0.9% 0.0% 0.1%NOI after repair expenses 219,912,196 469,613,068 264,610,621 204,366,262 150,907,709 779,469,029 2,153,535,767 263,213,079 121,085,600 224,364,502 208,437,518 166,151,253 348,409,440 195,059,247 388,507,281 109,950,946 233,128,804 10,809,960,004NOI yield after repair expenses 5.6% 6.3% 5.7% 5.9% 5.6% 5.6% 3.2% 4.5% 4.9% 6.1% 7.0% 7.6% 7.0% 6.2% 5.0% 7.9% 4.8% 4.9%Depreciation and amortization 15,976,537 28,628,711 24,678,030 15,783,237 11,725,449 29,079,736 253,433,382 13,007,665 5,245,313 37,239,220 25,466,460 33,934,428 56,539,789 21,984,299 37,721,321 18,935,017 17,608,817 1,056,673,168Restoration and renovation work 0 2,970,000 0 0 714,286 0 3,942,860 0 0 0 0 2,100,000 2,200,000 0 0 0 0 28,586,075Deferred security deposits 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

#days worked (for 4th FP)

NOI Yield（*4）

Occupancy Rate (%)

Ope

ratin

g In

com

e fr

om P

rope

rty L

easi

ngA

ctiv

ities

(*1)

PML

(Reference)

3 NOI（=1-2）

Building

Aquisition Price (millions of yen)Book Price (millions of yen)

Appraisal Value (millions of yen)

Occupancy Rate (%)PML

#days worked (for 4th FP)

2 Total Property-related Expenses O

pera

ting

Inco

me

from

Pro

perty

Lea

sing

Act

iviti

es (*

1)

Annualized NOI

Building

Aquisition Price (millions of yen)Book Price (millions of yen)

Appraisal Value (millions of yen)

(Reference)

2 Total Property-related Expenses

3 NOI（=1-2）

Annualized NOINOI Yield（*4）

(*1) Figures in the statements of income above are rounded down to the nearest 1,000 yen, (excluding other income and property-related taxes).(*2) Other income does not include restoration and renovation work or deferred security deposits.(*3) Property-related taxes for properties acquired in 2006 are calculated according to the number of operating days in the third fiscal period, which overlaps with 2007.(*4) The NOI yield in 3 NOI is calculated by dividing annualized NOI by total acquisition price.(*5) The DA Office REIT acquired trust beneficiary rights in Shinjuku Maynds Tower twice within the period under review. The number of operating days

corresponding to the first 7:3 acquisition on July 13, 2007 totaled 141. The number of operating days corresponding to the second 7:3 acquisition on November 26, 2007 appears in parentheses.

(*6) The DA Office REIT acquired trust beneficiary rights in Shinjuku Maynds Tower twice within the period under review. Accordingly, NOI is calculated according to each acquisition price and the weighted average number of operating days for each acquisition.

(Note) The above third period-end data does not include investment assets sold during the period, namely daVinci Kyabacho 376, daVinci Yushima, daVinci Nishi-Gotanda I, and daVinciShin-Yokohama 131.

21

Shinjuku Maynds Tower

(As of January 23, 2008)

daVinci NihonbashiHoncho

daVinci Kyobashi daVinci Ginza 1-chome Sunline 7 Bldg. Believe Omori daVinci Ginza daVinci Ginza Annex

daVinci Kamiyacho daVinci Shibaura daVinci Minami Aoyama daVinci Mita daVinci Sarugakucho daVinci A Hamamatsucho daVinci Jingumae

Portfolio Property Photographs (1)

daVinci Shibadaimon daVinci Misakicho daVinci Shimbashi 510 daVinci Onarimon BPS Square daVinci Tsukiji

22

SHIBUYA EDGE daVinci Shinagawa Ⅱ daVinci Shin-Yokohama 214

daVinci Minami-Senba Bennex S-3 Sapporo Chiyoda Bldg. daVinci Kodemmacho

(As of January 23, 2008)Portfolio Property Photographs (2)

daVinci Tsukiji 616 Shuwa Tsukishima Bldg. Nihonbashi MS Bldg. Atlantic Bldg. Shibuya SS Bldg. daVinci Kinshicho daVinci Higashi-Ikebukuro

(As of January 23, 2008)

2323

Sapporo Chiyoda Bldg.

投資可能エリア・地方主要都市

Possible Areas for Investment:

Major Regional Cities

Map of Portfolio

daVinci MisakichodaVinci Sarugakucho

Nihonbashi MS Bldg.

daVinci Tsukiji 616daVinci Ginza

ShuwaTsukishima Bldg.

daVinci Shibaura

daVinci Mita

daVinciShibadaimon

Atlantic Bldg.daVinci A Hamamatsucho

daVinci KamiyachodaVinci

Shimbashi510

daVinci Ginza Annex

daVinci TsukijiBPS Square

daVinci Jingumae

daVinci Minami Aoyama

Shibuya SS Bldg.

Main Target Area for Investment: Five Central Wards of Tokyo

daVinci Nihonbashi Honcho

daVinci Kyobashi

daVinci Ginza 1-chomeSunline 7 Bldg.

daVinci Onarimon

SHIBUYA EDGE

daVinci Shinagawa Ⅱ

Shinjuku Maynds Tower

Shinjuku Ward

Chiyoda Ward

Shibuya Station

Minato Ward

Tokyo

Shibuya Ward

Shinagawa Station

Chuo Ward

Tokyo Station

YokosukaLine/SobuExpress Line

Chuo Line

Saikyo Line

Yamanote Line

Shinjuku Station

daVinci Higashi-Ikebukuro

daVinci Kinshicho

Bennex S-3daVinci Shin-Yokohama 214

Believe Omori

Target Area for Investment:

Tokyo Metropolitan Area

daVinci Minami-Senba

daVinci Kodemmacho

Organization of the Asset Management Company

2424

■Organization Chart ■Company Overview

Company Name: daVinci Select Kabushiki Gaisha

Address: 6-2-1 Ginza, Chuo-ku, Tokyo

Established: October 21, 2004

Capitalization: 200 million yen

Representative Director: Takashi Abe

Directors: 7 (4 executive, 2 non-executive, 1 auditor)

Employees: 20(Including 3 concurrent directors, as of January 23, 2008)

Registered Financial Instruments Firm No. 355 (Financial Instruments), Director, Kanto Local Finance Bureau

Building Lots and Buildings Transaction Business License No. (1)-83920, Governor of Tokyo

Discretionary Agent for Real Estate Transaction Approval No. 34,

Minister of Land, Infrastructure and Transport

A member of the Investment Trusts Association of Japan

Representative Director

Director

Director

Director

Outside Director

Outside Director

Auditor

Board of Directors and Auditors

・Determining and revising practical guidelines

・Determining and changing annual and mid-term management plans and related documents

IR & Planning Team

Asset Management Team

Finance & Accounting Team

Research & Acquisitions Team

Personnel & General Affairs Team

Board of Directors

Shareholders’ Meeting

Auditors

Compliance Committee

Investment Committee

Representative DirectorCompliance Officer

Finance DepartmentInvestment Management Department

General Administrative Department

・Disclosure-related matters

・Investment Corporation IR

・Real estate market surveys and analysis

・Matters related to Investment Corporation unitholders（excluding the Unitholders’Meeting）

・Determining and revising practical guidelines

・Matters related to acquisition and disposal of assets

・Surveys and analysis of real estate and commercial industry trends

・Matters related to asset procurement for the Investment Corporation

・Determining and revising guidelines

・Matters related to the Investment Corporation’s performance forecasts, balance sheets, and disclosure

・Administration of Shareholders’ Meetings and Board of Officer meetings of the Investment Corporation, the General Meeting of Shareholders, Board of Directors meetings, and committee meetings

・Compliance Officer support

・Matters related to personnel and general affairs

IR & Planning Department

Internal Control Office

Takashi Abe

Jinmoo Kim （Administrative Manager）

Kazuhiro Tadano （Chief Financial Officer）

Kotaro Matsuoka （Chief Investment Officer）

Masayoshi Ogawa （Tax Accountant）

Shigeru Takagi （Attorney of Law）

Koichi Yokoyama （CPA）

daVinci Select K.K. Business Results for the Fourth Fiscal ...2 第3期末第4期末 Fourth Fiscal...

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Transcript of daVinci Select K.K. Business Results for the Fourth Fiscal ...2 第3期末第4期末 Fourth Fiscal...

daVinci Select K.K. Business Results for the Fourth Fiscal ...2 第3期末 第4期末 Fourth Fiscal...

Documents

Transcript of daVinci Select K.K. Business Results for the Fourth Fiscal ...2 第3期末 第4期末 Fourth Fiscal...

daVinci Select K.K. Business Results for the Fourth Fiscal ...2 第3期末第4期末 Fourth Fiscal...

Transcript of daVinci Select K.K. Business Results for the Fourth Fiscal ...2 第3期末第4期末 Fourth Fiscal...