As of February 1, 2009

daVinci Select K.K.

IR Material for the Sixth Fiscal Period(Fiscal Period Ended November 2008)

Contents
Investment Highlights

3

5. External Growth- External Growth Target

18

1. Highlights of the Sixth Fiscal Period- Sixth Fiscal Period Highlights

5

2. Financial Strategy- Financial Highlights- Financial Stability Enhancement withFinancing Activities- Future Financial Strategies- Long-Term Debt and Fixed-Rate
Borrowing Ratios

7
8
9
10

3. Investment Strategies in the Future- Investment Strategies in the
Current Fiscal Period

12

4. Internal Growth- Results of Rent Revisions in the
Sixth Fiscal Period- Status of Rent Gap- Rent Management Policies

14
15
16

6. Appendix- Medium-Term Investment Target- Major Financial Data
- Summary of Results for Sixth Fiscal Period(Comparison with results of the previous period)- Summary of Results for Sixth Fiscal Period(Comparison with results forecast)- Results Forecast (Seventh and Eighth Fiscal Periods)- List of Interest-Bearing Debt (1)(As of May 31, 2008)- List of Interest-Bearing Debt (2)(As of January 27, 2009)- Major Investors- Seventh Fiscal Period EPS Interest Sensitivity- Portfolio Performance Summary(Sixth Fiscal Period Results by Property)- Property Disposition Results- Portfolio Property Photographs- Map of Portfolio- Organization of the Asset Management Company

20
21
22
23
24
25
26
27
28
29
30
31・32
33
34

This presentation includes forward-looking statements about DA Office Investment Corporation,
daVinci Select, daVinci Holdings and daVinci Advisors and affiliated companies (the Group). To theextent that statements in this presentation do not relate to historical or current facts, they constituteforward-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 orinvestment 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 theindependent 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 ofthis presentation.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

Investment Highlights<Investment guidelines>

Manage assets with the aim of improving
Operational EPS(*) over the mid-to-long term.
* EPS excluding capital and extra-ordinary gain/loss¾Status of refinancing: Loan-to-Value (LTV) was slashed to 22.5% with the prepayment of borrowings

and other factors
Continue efforts to build a solid financing structure based on medium-term financial
strategies.
¾Status of leasing:Cancellations occurred for certain contracts as a result of a rapid business slowdown.
Rent peak-out
Policy to maintain higher occupancy rates¾Real estate market:

Debt-financing markets remained frozen, and the trading market continued to slump.

31. Highlights of the
Sixth Fiscal Period(From June 1, 2008 to November 30, 2008)

Sixth Fiscal Period Highlights (From June 1, 2008 to November 30, 2008)■ Results for the Sixth Fiscal Period
Results
Results (30(30 Properties)
Properties)■ Forecasts
ChangeChange fromfrom Previous
Previous Period
PeriodSeventhSeventh Period
Period (30(30 properties)
properties) Eighth
Eighth Period
Period(30(30 properties)
properties)(Disclosed as of January 20, 2009)(Disclosed as of January 26, 2009)

OperatingOperating Revenue
Revenue¥15,393¥15,393 M
M+¥5,162+¥5,162 M
M+50.5%+50.5%¥8,130¥8,130 M
M¥7,869¥7,869 M
M

OperatingOperating Income
Income¥11,041¥11,041 M
M+¥4,805+¥4,805 M
M+77.1%+77.1%¥3,954¥3,954 M
M¥3,689¥3,689 M
M

Net
Net Income
Income¥9,342¥9,342 M
M+¥5,390+¥5,390 M
M+136.4%+136.4%¥2,864¥2,864 M
M¥2,545¥2,545 M
M

Dividend
Dividend per
per Unit
Unit¥27,165¥27,165+¥7,888+¥7,888+40.9%+40.9%¥8,328¥8,328¥7,400¥7,400Operational
Operational EPS
EPS (*)(*)¥6,882¥6,882-¥4,822-¥4,822-41.2%-41.2%¥7,861¥7,861¥7,400¥7,400(*) Net income per investment unit excluding capital and extra-ordinary gain/loss

M = million■ Review of the Sixth Fiscal Period¾

Significant slashing of LTV with prepayment ofborrowings, etc.

¾

Diversification of payment dates for borrowings, etc.

¾

Internal growth at a rate of 3.2% (based on total rent)¾

Sales of three properties (daVinci Kamiyacho, daVinci
Mita and Believe Omori)¾

Newly appointed executive officers at the Investment
Corporation¾

Newly appointed director of the Investment Management
Department at the asset management company

This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

5

2. Financial Strategy

Financial Highlights■ Changes in Interest-Bearing Debt in the Sixth Fiscal Period
LTV was slashed significantly as a result of private placement, property sales, etc.
Changes in LTV
Balance (million yen)

LTV *2 (%)

160,000

80

New
New borrowings of 5.5 billion yen(three-year fixed rate, collateralized)
from Kansai Urban Banking Corporation.

140,000

Refinancing by Aozora Bank, Ltd. with a 1billion yen increase in debt (from shortterm borrowings to long-term borrowings)

Commitment line establishment
at 8.6 billion yen by Nomura Capital
Investment Co., Ltd.

70

60

52%

New

New

120,000

New borrowings of 3.5 billion yen(three-year fixed rate, collateralized)
from Mizuho Bank, Ltd.

147,895

100,000

Issuance of collateralized
investment corporation bonds
for raising 2 billion yen

50

34%

40

31%
28%

31%

30%

27%
30

22.7%

22.5%

22.5%

22.5%

80,00020
93,89588,395(1)

60,000(2)*1

End ofFifth
PeriodJune 6,2008

June 30,
2008

77,77078,77082,270

(3)

(4)

(5)

July 18,2008

September 2,
2008

September
30, 2008

71,270

(7)

(8)

(9)

(10)

(6)

60,27059,77059,77059,722October 10,
2008

November21, 2008

November28, 2008

January 21,
2009

January 27,
2009

10

*1 Assigned numbers correspond to those appearing in the table on the next page. *2 LTV is calculated on the basis of the acquisition price.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

7

Financial Stability Enhancement with Financing Activities■ Financing Activities in the Sixth Fiscal Period
Conditions for financing have deteriorated markedly, but the Investment Corporation is taking all available steps to stabilize its finances, including collateralization, issuing ofcollateralized investment corporation bonds, and sales of existing properties. During the Sixth Fiscal Period, the Investment Corporation undertook the following financing activities:
Numbers in the following table correspondto those used in the chart on the previous page.

Borrowings, issuance of investment corporation bonds
and refinancing performed

NumberPrepayment and repurchase of investment corporation
bonds for retirement performed

Outline(1)

June 5, 2008: Prepayment of 24,500 million yen to Nomura Capital Investment
June 6, 2008: Prepayment of 30,000 million yen to Lehman Brothers Commercial Mortgage and repurchase of investment corporation bonds of 5,000 million yen for retirement(2)

New borrowings of 5,500 million yen from Kansai Urban Banking Corporation (collateralized borrowings)
Security was created for all existing borrowings.

(3)

Prepayment of 8,625 million yen to Citibank Japan, repurchase of investment corporation bonds of 3,000 million yen for retirement, and repayment on due dates of 4,500 million yen to Aozora Bank

(4)

August 29, 2008: Repayment on due dates of 4,500 million yen to Aozora Bank and borrowings of 5,500 million yen from the same bank (collateralized borrowings increased by 1,000 million yen), andrefinancing of 3,000 million yen by Resona Bank (collateralized borrowings)
September 2, 2008: Repayment of 5,000 million yen to American Life Insurance Company and borrowings of the same amount from the same company (contract review required by collateralreplacement due to property sales)(5)

Borrowings of 3,500 million yen from Mizuho Bank (collateralized borrowings)(6)

Repurchase of uncollateralized investment corporation bonds of the first issue of 11,000 million yen for retirement(7)

Repurchase of uncollateralized investment corporation bonds of the first issue of 11,000 million yen for retirement(8)

Issuance of mortgage investment corporation bonds of 2,000 million yen, and repayment on due dates of 2,500 million yen to Shinsei BankFirst action of its kind taken by a listed real estate investment corporation (diversification of financing methods)(9)

January 20, 2009: Commitment line establishment at 8,600 million yen (*1) by Nomura Capital Investment
January 21, 2009: Borrowings of 2,000 million yen from Nomura Capital Investment based on the commitment line, and repayment on due dates of mortgage investment corporation bonds of 2,000
million yen(10)

Repayment of 4,448 million yen to Aozora Bank and borrowings of 4,400 million yen from the same bank

*1 The amount corresponding to borrowings from Aozora Bank shall be deducted from the commitment line when Aozora Bank offers loans in exchange for 4,448 million yen that becomes due on January 27, 2009.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

8

Future Financial Strategies■ Future Financial Strategies
The Investment Corporation is conducting its financing activities based on the following financial policies it established in May 2008.
(3) Extend the due dates of borrowings so that the ratio of
long-term debt will be more than the lower limit of 60-70%(1) Conduct leveraged control to confine LTV within an upper limit of 40-50%(2) Diversify payment dates so that the total balance of interest-bearing debt
that comes due in any one period will be less than 20 billion yen(upper limit benchmark)(4) Diversify lenders centering on domestic financial institutions

Table of distributed due dates (as of January 27, 2009)
Borrowings from
Aozora Bank(Million yen)

Borrowings from
Nomura Capital Investment

Upper limit benchmark per period(based on financial strategies)

20,000Total balance of interest-bearing debt that will becomedue in the seventh fiscal period (fiscal period ending
May 2009): 16,400 million yen

Borrowings from other parties

Total balance of interest-bearing debt that will becomedue in the eighth fiscal period (fiscal period ending
November 2009): 18,822 million yen

15,000Due date: May 21
Scheduled for repayment(using funds on hand)Refinancing of 4,400 million yen
by Aozora Bank

Scheduled forrefinancing

2,000
10,0003,500

10,000Due date: May 26
Scheduled for refinancing
together with borrowings
due at the end of April

13,822
3,000

5,000

4,448

4,400

5,500

5,500

5,000

5,000

2,000
End of Apr.
2009

End of May
2009

End of June2009

End of July2009

End of Aug.
2009

End of Sep.
2009

End of Oct.
2009

End of Nov.
2009

May 2010 (9th period)

May 2011 (11th Period)～～

End of Mar.
2009

～
～

End of Feb.
2009

～
～

Jan. 27, 2009

Nov. 2011(12th period)

Nov. 2013(16th period)

This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

9

■ Long-Term Debt and Fixed-Rate Borrowing Ratios■ Ratios of long-term and short-term borrowings■ Ratios of floating-rate and fixed-rate borrowings

The ratio of long-term debt rose from 33.0% to 41.0% due to the
prepayment of short-term borrowings and the execution of new
long-term debt.

The ratio of fixed-rate borrowings fell slightly from 28.0% to 26.0%.

Ratios of long-term and short-term borrowings

Ratios of floating-rate and fixed-rate borrowings

As of May 31, 2008 (end of the fifth period)

As of May 31, 2008 (end of the fifth period)

Long-term debt
48,895 million yen
Short-termborrowings (*)
99,000 million yen
67.0%

Floating-rate
92,625 million yen
62.7%

33.0%

Fixed-rate
41,448 million yen
28.0%

Balance: 147,895 million yen

Floating-rate (hedged with caps)
13,822 million yen 9.3%
Balance: 147,895 million yen

As of January 27, 2009

As of January 27, 2009
Short-termborrowings
6,400 million yen
10.7%

Long-term debt due to be
repaid within one year
28,822 million yen
48.3%

Long-term debt
24,500 million yen

Floating-rate
30,400 million yen
50.9%

41.0%

Fixed-rate
15,500 million yen
26.0%

Balance: 59,722 million yen
Balance: 59,722 million yen

Floating-rate (hedged with caps)
13,822.5 million yen 23.1%* Including investment corporation bonds.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

10

3. Investment Strategies
in the Future

Investment Strategies in the Current Fiscal Period
Achieve steadyinternal growth.

Achieve a stablefinancial basis.
¾ Extend the debt duration.
¾ Diversify payment dates.
¾ Diversify lenders.

High¾ Increase tenantsatisfaction.
¾ Maintain higher

occupancy rates.
Priority

External Growth¾ Acquire properties according to

the financial position.
¾ Consider property replacement.

Low

This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

12

4. Internal GrowthResults of Rent Revisions in the Sixth Fiscal Period■ Increased Rent Revisions (for a total of 295 tenants in 30 properties at the end of the sixth fiscal period)
Below is the status of increased rent revisions since June 1, 2008 at 30 properties owned by the Investment Corporation at the end of the sixth fiscal period.

Tenants not subject to rent revisions

Tenants subject torent revisions

77.6%

22.4%
(14 tenants withnew contracts)

Tenants continuing
previous contract terms

Tenants in rent revision negotiations

4.5%

95.5%

3

63 (14)

1.6%

1
(1)

Breakdown of rent increase

12.2%

66

229

Tenants
Tenants continuing
subject to rent
previous contract terms
decreases■ Rent increase at tenants subject to revisions

90.5%

5 (0)

57 (13)Tenants for rent
revisions
Tenants with newcontracts

Rent
increase

11.1%
29.7%

■ Total rent increase<<Changes in the rate of increase>>

3.2%
3.9%
3.9%

(%)

Tenants accepting rent increases

7.9%

Breakdown

4
3
2
1
0

3.8%
3.8%

2.4%
2.4%

Third period Fourth period Fifth period Sixth period(*) The total rate of rent increase (%) = difference between old and new rent for tenants subject to rent revisions in the sixth fiscal period (excluding tenants that occupy properties
scheduled for sale in the sixth fiscal period) / (total monthly rent at fifth period-end) - (total monthly rent at fifth period-end properties sold during the sixth period)
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

14

Status of Rent Gap
Difference between the current rent and the market rent (rent gap) for properties owned by the Investment Corporation
Area

Property namedaVinci Ginza

Current rent
(Nov. 2008)

30,008Market rent
(May 2008)

35,000Market rent
(Nov. 2008)

35,000Market rentchange (%)

0.00%

Rent gap rate
(May 2008)22.17%

Rent gap rate
(Nov. 2008)Area

27.39%

15.27%

27,45832,00030,000-6.25%

17.04%

9.26%

daVinci Kyobashi

19,43622,00021,000-4.55%

14.76%

8.05%

Sunline 7 Bldg.

23,05727,00027,0000.00%

18.78%

17.10%

0.00%

24.98%

24.98%

20,000

0.00%

7.38%

5.11%

daVinci Minami Aoyama

29,10834,00032,000-5.88%

16.81%

9.94%

daVinci Sarugakucho

18,15021,00020,000-4.76%

15.70%

10.19%

24,00022,000-8.33%

20,66825,00024,000-4.00%

8.69%-0.37%

31.81%

16.12%

daVinci Misakicho

20,111

20,50020,000-2.44%

1.93%-0.55%

daVinci Shimbashi 510

17,83719,00018,000-5.26%

12.17%

0.91%

daVinci Tsukiji

18,541

19,00018,000-5.26%

5.07%-2.92%BPS Square

12,62817,00016,000-5.88%

34.62%

26.70%

daVinci Tsukiji 616

16,89918,00017,000-5.56%

15.47%

0.60%

Shuwa Tsukishima Bldg.

16,246

16,50016,500

0.00%

2.77%

1.56%

Nihonbashi MS Bldg.

16,79920,00018,000-10.00%24.46%

7.15%

Atlantic Bldg.

18,42020,00018,000-10.00%13.85%-2.28%

Shibuya SS Bldg.

26,52930,00028,000-6.67%

15.94%

5.54%

Tokyo metropolitan area andregional major cities

Five central wards of Tokyo

daVinci Shibadaimon

22,082

6.84%

Five central wards of Tokyo

-7.14%

30,000daVinci Jingumae

Rent gap rate
(Nov. 2008)

26,00020,0009.59%

Rent gap rate
(May 2008)

28,00030,0000.00%

Market rentchange (%)

22,556

19,02722,000Market rent
(Nov. 2008)

daVinci Ginza 1-chome

24,00422,000Market rent
(May 2008)

daVinci Nihonbashi Honcho

daVinci Shibaura

20,592Current rent
(Nov. 2008)

16.64%

daVinci Ginza Annex

daVinci A Hamamatsucho

Property namedaVinci Onarimon

25,15430,00028,000-6.67%

26.97%

11.31%

Shinjuku Maynds Tower

33,47345,00042,000-6.67%

39.15%

25.47%SHIBUYA EDGE

30,98433,00031,000-6.06%

5.39%

0.05%

daVinci Kodemmacho

15,74518,00017,000-5.56%

16.73%

7.97%

Subtotal

26,21232,51930,730-5.50%

28.52%

17.24%-3.13%

31.97%

27.85%

daVinci Kinshicho

12,12416,00015,500daVinci Higashi-Ikebukuro

15,301

16,00016,0000.00%

11.63%

4.57%

Bennex S-3

14,79015,00014,000-6.67%

1.55%-5.34%
5.49%

daVinci Shinagawa II

18,96022,00020,000-9.09%

16.35%

daVinci Minami-Senba

13,17914,00013,500-3.57%

10.75%

2.44%

Subtotal

14,93016,526

15,670-5.18%

12.91%

4.96%

Total

24,26929,76428,135-5.47%

26.79%

15.93%*1 Current rent is calculated based on the rent level on November 30, 2008 for offices above the second floor*2 Market rent is based on assessments prepared in market reports by Tokyu Livable, Inc., a leading Japanese leasing agency.
*3 Rent gap rate = (Market rent – Current rent) / Current rent
*4 Subtotal, total rent, rate of change in rent, and rent gap rate are weighted averages using floor areas

This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

15

Rent Management Policies■ General Policies■ Shinjuku Maynds Tower
50,000¥45,000¥45,000¥42,000

Maintain higher occupancy rates.
40,000Market rent
Market rent

30,000

Average rent

Average rent

Rate ofincrease¥29,111/tsubo(*)

11.1%¥32,340/tsubo(*)

20,000¾ Identify market trends on a real-time basis,¾ Grasp the status of tenants, andRate ofincrease
3.5%

Average rent
¥33,473/tsubo(*)

10,000¾ Propose rental plans based on tenants' needsforPrioritizing relationships with tenants andShortening vacancy periods.

Acquisition point(July 2007)

5th period(May 2008)

6th period(Nov. 2008)¾ Average rent rose 3.5%.
¾ The rent gap rate fell to 25.47%.
(From 39.15% at the end of the fifth fiscal period)¾ Market rent is peaking out.

Flexible actions basedon market rent

¾ Vacancy rates are rising in the
Shinjuku area.
* 1tsubo = 35.58 ft2
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

16

5. External Growth

External Growth Target■ Present situation■ Policies adopted by the Investment Corporation

Financial markets¾Set top priority to stabilizing the financial basegoing forward.

¾ Stricter approach to lending¾ Withdrawal of foreign-affiliated lenders from the markets¾Consider property replacement.

Shift to property sales caused byrefinancing difficulty¾Aim for an asset size of 350 billion yen in the
mid-to-long term.

Real estate markets¾ Stagnant economic activities by all companies,
including real estate industry

Total assets

350 billion yen

A decrease in real estate buyers■ An image of medium-term
external growth287.0 billion yen

278.7 billion yen
265.0 billion yen

Total
acquisition price138.4 billion yen
130.4 billion yen

End of third
periodEnd of fourth
periodEnd of fifth
periodEnd of sixth
period～～End of second
periodMedium-term target

This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

18

6. Appendix

Medium-Term Investment Target■ Investment Objectives

Achieve mid-to-long term Operational EPS growth.
■ Medium-Term Investment Target

Aim to increase Operational EPS to the 15,000's over the medium term

Operational EPS¥15,000's- Internal growth: Grow the total rent at an annual rate of 6%.
- External growth: Increase the asset size to 350 billion yen.
yen
: Assume an LTV of around 45%.

Operational
EPS

Operational
EPS

7,861 yen

7,400 yen

20～～

Forecast for seventh Forecast for eighth
period (ending
period (ending
November 30, 2009)
May 31, 2009)

Medium-term target

■ Major Financial Data

Ite m
Numbe r of days of inve stme nt
Numbe r of prope rtie s at e nd of pe riod
Occupancy rate at e nd of pe riod

Unit

2nd pe riod 3rd pe riod 4th pe riod 5th pe riod 6th pe riod

Day

183

182

183

183

183

P ropert y

37

34

35

33

30

%

97.5

99.0

98.2

98.3

97.6

Ave rage acquis ition priceMillion yen

121,547

138,883

199,274

286,162

272,482

NOI (afte r de duction of gain from s ale )Million yen

3,209

3,920

5,062

6,827

7,529

Funds from ope ration (FFO)

Million yen

2,307

2,638

3,492

3,674

3,592

NOI yie ld

%

5.3

5.7

5.1

4.8

4.6

Re turn on asse t (ROA)

%

1.6

2.1

1.9

1.3

3.3

Re turn on e quity (ROE)

%

3.9

5.6

4.7

3.0

5.6

Capital ade quacy ratio at e nd of pe riod

%

37.5

36.1

44.0

44.8

72.8

Loan-to-Value (LTV) at e nd of pe riod

%

55.9

57.7

51.2

49.9

22.0

FFO:
Net income + Depreciation – Gain from sale
NOI yield:
Annualized NOI / Average Acquisition Price
ROA:
Annualized Net Income / Total Assets
ROE:
Annualized Net Income / Total Investments
LTV:Interest-bearing debt at end of period / Total
assets at end of period* Figures are rounded to the first decimal place.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

21

Summary of Results for Sixth Fiscal Period (1)■ Comparison with results of the previous period
Unit: Million yen (excluding the number of investment units and cash dividends)
Fifth period

Sixth period(Ended May 31, 2008)(Ended Nov. 30, 2008)

Number of properties (period-end)33

30

Effective number of days of investment

183

183

Change-3[Assumptions for analysis] (Unit: Million yen)
I. Comparison with the fifth period on the basis of properties ownedat the end of the fifth period (30 properties, excluding properties
sold during the sixth period)
II. Other factors

Operating revenues (A)10,23015,393+ 5,162

Gains on sales

1,552

6,975

+ 5,422

Operating expenses (B)

3,994

4,351

+ 357

[Operating revenues]
I. 220 [Increase in rent, etc. 8,152 (6th period) - 7,931 (5th period)]
II. - 372 [Rent, etc. from properties sold during the 6th period]

Rental business expenses (excluding
depreciation)

1,783

2,044

+ 261

Depreciation

1,275

1,225

- 50

Income and loss from rental operations(excluding gains on sales)

5,619

5,148

- 471

Operating income (A-B)

6,235

11,041+ 4,805

Non-operating expenses

2,295

1,709

- 585

II. - 44 [Rental business expenses, etc. for properties sold during thesixth period]

1,073

650

- 423

II. - 37 [Rental business expenses, etc. for properties sold during thefifth period]

Ordinary income

3,952

9,343

+ 5,390

Net income

3,951

9,342

+ 5,390

205,000

343,905

19,277

27,165Interest expense (including amortizationof caps)Number of investment units outstanding
Dividend per unit (unit: yen)

II. - 108 [Rent, etc. from properties sold during the 5th period][Rental business expenses]
I. 322 [1,749 (6th period) - 1,426 (5th period) / Of which, taxes andpublic dues of 217]

[Interest expense]»- 606 [Average principal: 152,012 (5th period) → 80,496 (6th period)]»

182 [Average interest rate: 1.41% (5th period) → 1.61% (6th period)]

7,888This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

22

Summary of Results for Sixth Fiscal Period (2)■ Comparison with results forecast
Unit: Million yen (excluding the number of investment units and cash dividends)
Sixth period
Forecast
announced on
August 15, 2008

Actualresults

Difference[Rental Operations]: Based on earnings fromOperating revenues (A)15,272

15,393+ 120

Gains on sales

6,931

6,975

+ 43

131 increase in income

Operating expenses (B)

4,425

4,351

- 73

»

Rental business expenses (excluding
depreciation)

2,095

2,044

- 51

Depreciation

1,228

1,225

-3

Income and loss from rental operations(excluding gains on sales)

5,016

5,148

+ 131

Operating income (A-B)

10,846

11,041+ 194

Non-operating expenses

1,739

1,709

- 30

Interest expense (including
amortization of caps)

650

- 12

Ordinary income

9,106

9,343

+ 236

Net income

9,104

9,342

+ 237

343,905

343,905

26,475

27,165

Dividend per unit (unit: yen)

- 142 million yen [Repair cost]■Changes in results forecast
Initial forecast

663

Number of investment units outstanding

property rental operations excluding gains on sales+ 690(Million yen)

Revisedforecast(Announced on(Announced on
January 23)
August 15)

Actual results

Difference
from initial
forecast

Operating revenues

9,762

15,272

15,393+ 5,631

Ordinary income

3,016

9,106

9,343

+ 6,327

Net income

3,014

9,104

9,342

+ 6,328

Dividend per unit (yen)14,706

26,475

27,165+ 12,459

Sold on September
2 (1 property)

This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

23

Results Forecast (Seventh and Eighth Fiscal Periods)■ Results forecast for the seventh and eighth fiscal periods
Unit: Million yen (excluding the number of investment units and cash dividends)
Sixth period(Ended November
30, 2008)

Forecast for theseventh period

Forecast for theeighth period(ending May 31,
2009)(ending November
30, 2009)

Number of properties (period-end)

30

30

30

Effective number of days of investment

183

182

183

Compared with the sixth period-

Operating revenues (A)15,393

8,130

7,869

Gains on sales

6,975

0

0

Operating expenses (B)

4,351

4,175

4,180

Rental business expenses (excluding depreciation)

2,044

2,040

2,059

Depreciation

1,225

1,222

1,236

Income and loss from rental operations (excluding
gains on sales)

5,147

4,867

4,573

Operating income (A-B)

11,041

3,954

3,689

Non-operating expenses

1,709

1,252

1,142

650

609

765

Ordinary income

9,343

2,702

2,547

Net income

9,342

2,864

2,545

343,905

343,905

343,905

Dividend per unit (unit: yen)

27,165

8,328

7,400

Operational EPS (unit: yen)

6,882

7,851

7,400

Interest expense (including amortization of caps)

Number of investment units outstanding[Assumptions for forecast] (Unit: Million yen)
Average assets under management:
272,452 (6th period) → 265,045 (7th period)[Interest expense]
Compared with the sixth period-

Average principal: 80,496 (6th period) → 67,373 (7th period)-

Average interest rate: 1.61% (6th period) → 1.82% (7th period)* Although we assume that rents will remain at the current level, actual rents may differ from the assumption depending on the status of assets under management.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

24

■ List of Interest-Bearing Debt (1)■ List of interest-bearing debt (As of May 31, 2008)
Term

Short termLong term

LenderBalance(million yen)Type ofinterest rate

Interest rate(%)

Date of advanceDue date

Lehman Brothers Commercial Mortgage

30,000Floating rate

1.359%

Dec. 3, 2007

Dec. 3, 2008

Nomura Capital Investment Co., Ltd.

11,000Floating rate

1.179%

Jul. 31, 2007

Jul. 31, 2008

Aozora Bank, Ltd.

4,500

Resona Bank, Limited

3,000

Floating rate

1.243%

Aug. 31, 2007

Aug. 29, 2008

Nomura Capital Investment Co., Ltd.

13,500Floating rate

1.179%

Nov. 26, 2007

Jul. 31, 2008

Shinsei Bank, Limited

2,500

Floating rate

1.243%

Nov. 26, 2007

Nov. 28, 2008

Aozora Bank, Ltd.

4,500

Floating rate

1.369%

Mar. 21, 2008

Jul. 18, 2008

Total short-term borrowings

69,000American Life Insurance Company

5,000

Fixed rate

1.700%

Oct. 21, 2005

Oct. 21, 2012

Aozora Bank, Ltd.

4,448

Fixed rate

0.929%

Jan. 27, 2006

Jan. 27, 2009

GE Real Estate - Japan

5,937

UBS Securities Japan Limited

2,850

Sompo Japan Insurance Inc.

2,470

Mizuho Bank, Ltd.

1,425

Floating rate

1.643%

Oct. 23, 2006

Sep. 18, 2009

The Iyo Bank, Ltd.

570

Tokyo Leasing Co., Ltd.

570

Citibank Japan Ltd.

8,625

Floating rate

1.343%

Nov. 26, 2007

Dec. 25, 2008

Aozora Bank, Ltd.

10,000Floating rate

1.343%

Nov. 26, 2007

May 26, 2009

Shinsei Bank, Limited

5,000

Floating rate

1.343%

Nov. 26, 2007

Nov. 30, 2009

Resona Bank, Limited

2,000

Fixed rate

1.591%

Mar. 21, 2008

Mar. 21, 2011

Total long-term debt

48,895#1 Unsecured Investment Corporation Bond

30,000

Fixed rate

1.500%

Nov. 26, 2007

Nov. 28, 2008

Total interest-bearing debt

147,895

This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

25

■ List of Interest-Bearing Debt (2)■ List of interest-bearing debt (As of January 27, 2009)
Term
Short termLong term

LenderBalance(million yen)Type ofinterest rate

Interest rate(%)

Date of advanceDue date

Nomura Capital Investment Co., Ltd.

2,000

Floating rate

2.255%

January 21, 2009

May 21, 2009

Aozora Bank, Ltd.

4,400

Floating rate

1.752%

January 27, 2009

April 30, 2009

Total short-term borrowings

6,400

American Life Insurance Company

5,000

Fixed rate

1.700%

September 2, 2008

August 31, 2013

GE Japan Corporation

5,937

UBS Securities Japan Limited

2,850

Sompo Japan Insurance Inc.

2,470
Floating rate

1.658%

October 23, 2006

September 18, 2009

Mizuho Bank, Ltd.

1,425

The Iyo Bank, Ltd.

570

Tokyo Leasing Co., Ltd.

570

Aozora Bank, Ltd.

10,000Floating rate

1.358%

November 26, 2007

May 26, 2009

Shinsei Bank, Limited

5,000

Floating rate

1.358%

November 26, 2007

November 30, 2009

Resona Bank, Limited

2,000

Fixed rate

1.591%March 21, 2008

March 18, 2011

Kansai Urban Banking Corporation

5,500

Fixed rate

2.000%

June 30, 2008

June 30, 2011

Aozora Bank, Ltd.

5,500

Floating rate

1.657%

August 29, 2008

February 26, 2010

Resona Bank, Limited

3,000

Fixed rate

1.903%

August 29, 2008

August 31, 2011

Mizuho Bank, Ltd.

3,500

Floating rate

1.858%

September 30, 2008

September 30, 2011

Total long-term debt

53,322

Total interest-bearing debt

59,722* Borrowings in red represent borrowings after the end of the sixth fiscal period.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

26

■ Major Investors■ Investors
Fifth Fiscal Period (As of May 31, 2008)
Number of investment units by owner
Securities
firms
2%
Foreignbodies27%

Number of investment units by owner

Breakdown of financial institutions
Nonlifeinsurancecompanies
2%

Individuals
21%
Government
and local
governments0%

Sixth Fiscal Period (As of November 30, 2008)
Other
financial
institutions
3%

Foreignbodies
15%

Banks
8%

Life insurancecompanies
8%

Securities
firms
2%

Individuals
15%
Government
and local
governments
0%

Breakdown of financial institutions
Nonlifeinsurancecompanies7%

Other
financial
institutions
4%

Banks
5%

Life insurancecompanies
7%

Financial
institutions
24%

Other
domestic
corporations
6%■ List of top 10 investors
Fifth Fiscal Period (As of May 31, 2008)
Name of investor

Trust banks
77%

Other
domestic
corporations
44%

Trust banks
79%

Financial
institutions
44%

Sixth Fiscal Period (As of November 30, 2008)
Number ofunits owned Ratio

1 The Master Trust Bank of Japan, Ltd. (Trust Account)
15,5482 NikkoCiti Trust and Banking Corporation (Investment Trust Account) 14,855
3 The Nomura Trust and Banking Co., Ltd. (Investment Trust Account)
12,646
4 Japan Trustee Services Bank, Ltd. (Trust Account)
10,417
5 Trust & Custody Services Bank, Ltd. (Securities Investment Trust Account) 9,580
6 American Life Insurance Company GAL
7,989
7 K. K. daVinci Advisors
6,950
8 Goldman Sachs International
5,971
9 Nomura Securities Co., Ltd.
4,697
10 UBS AG London Account IPB Segregated Client Account
4,593

Name of investor

Number ofunits owned Ratio

1 The Columbus Co., Ltd.
138,905
2 NikkoCiti Trust and Banking Corporation (Investment Trust Account)30,1433 Credit Suisse Securities Europe Limited PB Sec Int Non-Treaty Client 14,629
4 Japan Trustee Services Bank, Ltd. (Trust Account)
12,4735 The Master Trust Bank of Japan, Ltd. (Trust Account)
8,993
6 The Nomura Trust and Banking Co., Ltd. (Investment Trust Account)
8,458
7 American Life Insurance Company GAL
7,619
8 K. K. daVinci Holdings
6,950
9 Goldman Sachs and Company Regular Account
5,630
10 The Fuji Fire and Marine Insurance Co., Ltd.
5,599

7.58%
7.25%
6.17%
5.08%
4.67%
3.90%
3.39%
2.91%
2.29%
2.24%

40.39%
8.76%
4.25%
3.63%
2.61%
2.46%
2.22%
2.02%
1.64%
1.63%

This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

27

■ Seventh Fiscal Period EPS Interest Sensitivity
Sensitivity Analysis(Unit: Yen)

Impact of dividend per unit

Rate of rent increase(six-month period)

0%
1%
2%
3%
4%
5%

0.00%
48
256
464
672
881
1,089

0.75%
-192
15
223
431
640
848

The above impact on dividend
per unit is factored in torecalculate the forecast dividend
based on the publicly announced
amount of ¥8,328(Unit: Yen)

Forecast dividend per unit

Rate of rent increase(six-month period)

Interest rate spread (annual rate)
0.30%
0.45%
0.60%
0
-48
-96
-144
208
160
111
63
416
368
320
271
624
576
528
480
832
784
736
688
1,041
992
944
896

0.15%

0%
1%
2%
3%
4%
5%

0.00%
8,376
8,584
8,793
9,001
9,209
9,417

Interest rate spread (annual rate)
0.15%
0.30%
0.45%
0.60%
8,328
8,280
8,232
8,183
8,536
8,488
8,440
8,392
8,744
8,696
8,648
8,600
8,953
8,904
8,856
8,808
9,161
9,113
9,064
9,016
9,369
9,321
9,273
9,224

A 0.15% interest rateincrease is factored in on thebasis of current short-term
variable interest rate levels
The repricing date during theseventh fiscal period isscheduled to be at the end of
February. Therefore, interest ratecosts on the list are converted tothose for three months.
All dividends per unit on the list
are converted on the assumptionthat the number of investment
units is 343,905.

0.75%
8,135
8,343
8,552
8,760
8,968
9,176

(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.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

28

■ Portfolio Performance Summary (Sixth Fiscal Period Results by Property)(*1) For operating income from property leasing activities, actual results (excluding certain other income and property-related taxes)
for the fifth fiscal period are used and displayed by rounding off to the nearest thousand yen.
(*2) Other income does not include restoration and renovation work or deferred security deposits.
(*3) Property taxes, city planning taxes and depreciable asset taxes recorded in property-related taxes are calculated by converting theactual amount for fiscal 2007 to the number of operating days in the fifth fiscal period.

(*4) NOI Yield is calculated by dividing annualized NOI in 3 on the table by the acquisition price.
(Note) As the above properties are assets under management as of the period end, they do not include daVinci Mita, Believe Omori
and daVinci Kamiyacho, which were sold during the period.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

29

Property Disposition Results
DA Office REIT aims to raise portfolio quality by selling mainly its small-sized office buildings oroffice buildings outside of the five central wards of Tokyo to bring about high gains on sales.
Period2

Property nameAppraisal value

Selling price

Capital gain*

1,688

1,719

2,180

29.1%

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%

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%

Sapporo Chiyoda Bldg.

1,384

1,624

2,005

44.9%

daVinci Shin-Yokohama

2,180

2,980

3,200

46.8%

Believe Omori

3,160

4,010

4,480

41.8%

daVinci Mita

3,250

4,690

4,760

46.5%

daVinci Kamiyacho

12,00014,90017,000

41.7%

Total

35,65842,662

48,87637.1%

daVinci Gyoenmae

3

4

5

6

Acquisition price(Millions of yen)

* Capital gain: Gain on sale/acquisition price30

■ Portfolio Property Photographs (1)(As of January 26, 2009)

daVinci Nihonbashi Honcho

daVinci Kyobashi

daVinci Ginza 1-chome

Sunline 7 Bldg.

daVinci Ginza

daVinci Ginza Annex

daVinci Shibaura

daVinci Minami Aoyama

daVinci Sarugakucho

daVinci A Hamamatsucho

daVinci Jingumae

daVinci Shibadaimon

daVinci MisakichodaVinci Shimbashi 510

Shinjuku Maynds Tower

daVinci Onarimon

BPS Square

daVinci Tsukiji

daVinci Tsukiji 616

Shuwa Tsukishima Bldg.

Nihonbashi MS Bldg.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

31

■ Portfolio Property Photographs (2)Atlantic Bldg.

Shibuya SS Bldg.

Bennex S-3

daVinci Kodemmacho

daVinci KinshichodaVinci Higashi-Ikebukuro(As of January 26, 2009)

SHIBUYA EDGE

daVinci Shinagawa II

daVinci Minami-Senba

This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

32

■ Map of Portfolio(As of January 26, 2009)

Main Target Area for Investment: Five Central Wards of Tokyo

Possible Areas for Investment:
Major Regional Cities

Shinjuku Ward

Shinjuku
Maynds
Tower

ShibuyaWarddaVinci Sarugakucho

daVinci Misakicho

Shinjuku Station
Shinjuku 3-chomedaVinci Nihonbashi Honcho

Nihonbashi MS Bldg.

Chiyoda Ward
Sunline 7 Bldg.
Tokyo
daVinci Ginza 1-chome
BPS Square Station

daVinci Kodemmacho

Chuo WarddaVinci Minami-Senba

daVinci Tsukiji
daVinci Jingumae

daVinci Kyobashi
daVinci
Ginza Annex
daVinci Tsukiji 616
daVinci Minami Aoyama
daVinci
SHIBUYA EDGE
daVinci Ginza
Shimbashi
Shuwa
510
Shibuya Station
TsukishimadaVinci Onarimon
Bldg.
daVinci A Hamamatsucho
Shibuya SS Bldg. Atlantic Bldg.
daVinci
Shibadaimon

Target Area for Investment:
Tokyo Metropolitan Area
daVinci Higashi-Ikebukuro

daVinci Kinshicho

Minato WarddaVinci Shibaura
Bennex S-3
Yamanote LineTokyo

Saikyo Line

Shinagawa Station
daVinci Shinagawa II

Chuo Line
YokosukaLine/Sobu
Express Line33

■ Organization of the Asset Management Company■ Organization Chart

Board of Directors and Auditors

Shareholders’ Meeting
Auditors
Board of Directors

Representative Director Yoshiki Nishigaki (President and Representative Director)
Director
Takashi Abe (Chairman)
Director
Jinmoo Kim (Chief Administration and IR & Planning
Officer)
Kazuhiro Tadano (Chief Financial Officer)
Director
Atsuko Takahashi (Chief Investment Officer)
Director
Kotaro Matsuoka
Director
Masayoshi Ogawa (Tax Accountant)
Outside Director
Shigeru Takagi (Attorney of Law)
Outside Director
Koichi Yokoyama (CPA)
AuditorCompliance Committee■ Company Overview

Investment Committee

Compliance Officer
Representative Director
Internal Control Office
Company Name: daVinci Select Kabushiki Gaisha

Investment Management
Department

General Administrative
Department

IR & Planning
Department

Finance Department

Research &Acquisitions Team

Personnel & General
Affairs TeamIR & Planning Team

Finance & Accounting
Team- Matters relating to the acquisitionand disposal of assets- Research and analysis of industry
trends in the real estate market andthe retail industry- Development and revision of theInvestment Guidelines- Matters relating to theoperation of the general meetingof investors and the board of
directors and matters relating
to the operation of the general
meeting of shareholders, theBoard of Directors andcommittees- Matters relating to disclosures- Matters relating to financingof the investment
corporation

Representative Director: Yoshiki Nishigaki- Development and revision of
the Investment Guidelines

Employees: 25 (Including 3 concurrent directors, as ofJanuary 26, 2009)- Matters relating to thedevelopment of a budget,
settlement of accounts,
disclosure and accounting of
the investment corporation

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

Asset Management
Team- Compliance officer support, etc.
- Development of asset management- Matters relating to humanplans, annual asset management
resources and general affairs
plans and medium-term asset
management plans and thedevelopment and revision of mediumterm asset management plans- Development and revision of theInvestment Guidelines- Matters relating to IR of theinvestment corporation- Research and analysis of the realestate investment trust market- Matters relating to the response
to investors of the investment
corporation (excluding mattersrelating to general meetings ofinvestors)

Address: 6-2-1 Ginza, Chuo-ku, Tokyo
Established: October 21, 2004
Capitalization: 200 million yen
Directors: 9 (4 executive, 4 non-executive, 1 auditor)

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

This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

34