Investor Presentaiton
Distribution Policy
Treatment of Goodwill
Goodwill recognized
from the merger
79,289 million yen
Goodwill is recorded as intangible non-current assets on B/S
*
Amortized over 20 years using the straight-line method
Use of Retained Earnings
Retained earnings
14,806 million yen
(after a reversal for the period ended Feb. 2017)
To pay distribution equivalent to
goodwill amortization
Reversal of
retained earnings
To cover loss on sale of property, etc.
To address dilution as a result of
issuance of units
Reversal of
retained earnings
Tax-loss carry-forwards
Distribution policy
Net income
Distributions
After the merger
Daiwa House REIT Investment Corporation
Reversal of retained earnings
Distribution in excess of earnings
After completion of reversal
of retained earnings
After completion of
goodwill amortization
Utilizing retained earnings, the
portion equivalent to goodwill
amortization will be covered
and be distributed
Distribution in excess of
earnings as allowance for
adjustment of temporary
differences
Distribution level will not be affected by
goodwill amortization
45,031 million yen (Note)
Goodwill to be amortized over 20 years
(Note) 44,524 million yen can be applied to offset taxable income through August 31, 2018 and
507 million yen can be applied to offset taxable income through February 28, 2021.
When gain on sale of property, etc. is
realized or other factors
Accumulate
retained earnings
Realize stable distributions
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