Investor Presentaiton slide image

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 25
View entire presentation