This document was prepared based on statements made at the earnings announcement meeting held on August 10, 2016
(Wednesday) and should not be construed as a solicitation for investment in the Investment Corporation. Moreover, please
understand that we shall not be held liable for omissions and errors of data and phrases used in this document. Furthermore,opinions and forecasts indicated in this document are the Investment Corporation’s judgments as of the time this document
was prepared. No assurances or promises can be given regarding the accuracy and certainty of this information, and it canbe modified without prior notice.

Main Q&A at the 21st Fiscal Period Earnings Announcement
Date and Time: 15:30-16:18, August 10, 2016 (Wednesday)
Presenter: Akira Yamanouchi / President and Representative Director
Daiwa Real Estate Asset Management Co. Ltd.
*Questions are presented in order of sequence.

Q1. Concerning the improvement in basic strength mentioned on page 16 of the presentationmaterials, considering that recent occupancy rate is also already at a high level, do you
envision contract renewals and new leases each becoming roughly 50% going forward?
(Answer)Improvement in basic strength is not affected by occupancy rate. The numerical figures provided as
improvement in basic strength are intended to show changes in rent on a contract basis attributable tocontract renewals and new leases in each fiscal period.

Q2. Concerning financial status, how much will dividends increase as a result of refinancing?
(Answer)
As mentioned on page 34 of the presentation materials, refinancing of approximately 20.0 billion yen
is to take place in the fiscal period ending May 2017, but when the reduction in borrowing costs istaken into account, dividend per unit is expected to increase by 100 yen or so.

Q3. What were the reasons for selling the properties that were sold in the asset replacements
mentioned on page 25 of the presentation materials?
(Answer)
We sell properties by taking into consideration property competitiveness from a long-term perspective
spanning 20 years. The properties were sold due in part to also being offered favorable terms andconditions from the buyers in that process.

Q4. Concerning the capital increase through public offering for which resolution on issuance waspassed last month, the offering amount was relatively low and the decrease in LTV was thus
also not all that much. Was this due to taking into consideration the level of dividend per unit
or is this an indication that external growth will be less active going forward?
1

(Answer)
Various risks are involved in management, but the offering was implemented with the offering amountdetermined by taking into consideration the ability to continue the increase in dividend per unit even inlight of such risks.

Q5. The rent increase results seem solid, but are there any recent signs of the rent increase
slowing?
(Answer)
We recognize that there are investors who are skeptical about future rent increase, but speaking fromthe field, the sense is that there is not much supply of middle-scale office buildings with unit rent in thehigher 10,000 yen range or so, and there is thus no sense of the rent increase slowing. At this point intime, the environment is seen to be one in which rent increase can continue in also the fiscal period
ending November 2016 and the fiscal period ending May 2017.

Q6. There have been cases of acquisition of properties in not so favorable locations and such atother REITs. Is the plan to continue upholding the policy to keep acquiring mainly properties
in central Tokyo?
(Answer)
We will continue to uphold that policy. In the future, middle-scale office buildings, too, may involverisks of secondary vacancies and tertiary vacancies, but we believe that it is the property location thatcan match against such risks. For that reason, we believe that properties in central Tokyo have thelowest risks from a long-term perspective.
In the acquisition of properties, the policy is to carefully select properties in locations where tenantneeds can be expected in the long term.

Q7. According to the earnings forecast for the fiscal period ending May 2017 on page 12 of thepresentation materials, dividend per unit is forecast to increase despite operating revenue
decreasing. This probably means that efforts will be made to reduce costs so as not to cause
dividend per unit to decrease, but what about the outlook for operating revenue and dividend
per unit in and after the fiscal period ending November 2017?
(Answer)
Cost reductions are planned for the fiscal period ending May 2017. In and after the fiscal period
ending November 2017, operating revenue and repair cost are both forecast to increase andintentions are to continue the increase in dividend per unit.

Q8. Looking at the conceptual chart of the rental clock on page 14 of the presentation materials,
does this mean that there will come a time when rent will decrease in the long run? How will
this affect REITs focusing on office buildings?
(Answer)Our Investment Corporation is a REIT investing mainly in middle-scale office buildings and not one
2

investing in large-scale office buildings. As illustrated by the conceptual chart of the rental clock,although REITs investing in large-scale office buildings can probably anticipate a substantial increase
in rent, rent is relatively stable for middle-scale office buildings. We thus believe that the Investment
Corporation has strong resistance in times when rent is on the decrease. On top of that, on the other
hand, we believe that the Investment Corporation is one that can anticipate a certain degree of rent
increase in times when rent increase can be anticipated.

Q9. How will top management keep generating added value going forward?
(Answer)
Revitalization has been pursued through such measures as reshuffling personnel in consideration ofrunning the organization in a manner that can demonstrate good synergy among the people fromdiverse backgrounds that have come together since change of the sponsor to Daiwa Securities Group.
Currently, the organization as a whole has people from each department acting autonomously.
Although, to be honest, I feel that the added value that I myself can generate is becoming smaller, I
intend to continuously keep doing what I can do for the asset management company.

End3