Investor Presentaiton
Distribution Policy
Accounting Treatment of Goodwill
Goodwill recognized
from the merger
69,377 mil yen
(as of Feb. 28, 2019)
Distribution Policy
Daiwa House REIT Investment Corporation
Net income
Distributions
Reversal of voluntary reserve
Distribution in excess of earnings
After completion of reversal
of voluntary reserve
After completion of
goodwill amortization
Goodwill is recorded as intangible non-current assets on B/S
Amortized over 20 years using the straight-line method
(1,982 mil yen per 6-month fiscal period)
Use of Voluntary Reserve
Voluntary reserve
To pay distribution equivalent to
goodwill amortization
8,930 mil yen
(after distribution payment
for the period ended Feb. 2019)
Reversal of
voluntary reserve
After the merger
Utilizing voluntary reserve, the
portion equivalent to goodwill
amortization will be covered
and be distributed
Distribution in excess of
earnings as allowance for
temporary difference
adjustments
Distribution level will not be affected by
goodwill amortization
To cover loss on sale of property, etc.
Reversal of
voluntary reserve
To address dilution as a result of
issuance of units
Tax loss carry-forwards
507 mil yen
(Note)
(Note) Tax loss carry-forwards can be applied to offset taxable income through the period ending Feb.
2021.
When recording gain on sale of
property, etc. or other items is realized
Accumulation of
voluntary reserve
Goodwill is amortized over 20 years
Realize stable distributions
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