2013/1/17

Daiwa Office Investment Corporation
Earnings Announcement
for the 14th Fiscal Period(Fiscal Period ended November 2012)

Contents
Section 1

Section 3

Performance Highlights and Forecasts

External Growth The 14th Fiscal Period Topics

4 The Real Estate Market and Trading Performance22

 Highlights of the 14th Fiscal Period5 Property Review for Acquisition23

 Highlights of Forecasts for the 15th and 16th Fiscal Period6 Recent Property Acquisition (1)24 Issue and Activities of the Investment Corporation

7

 Recent Property Acquisition (2)-1

25

 Recent Property Acquisition (2)-2

26

Section 2

 Recent Property Acquisition (3)27Internal Growth Recent Property Acquisition (4)28 Portfolio and Acquisition Policy

29 Properties Acquired after The Sponsor Change

30

 Leasing Market of Tokyo Office Building (1)9 Leasing Market of Tokyo Office Building (2)10 Portfolio Map

11 Analyses of Leasing Income (1)12 Analyses of Leasing Income (2)13 Analyses of Leasing Income (3)14 Status of Interest-bearing Liabilities (1)32 Performance of Shinjuku Maynds Tower & E SPACE TOWER

15

 Status of Interest-bearing Liabilities (2)33 Internal Growth Strategies

16

 Status of Interest-bearing Liabilities (3)34 Occupancy Rate of the Properties Subject to17

 Status of Interest-bearing Liabilities (4)35 Unitholders

36

 Activities in the 15th Fiscal Period

37

Leasing Improvement in the 14th FP
th Properties Subject to Leasing Improvement in the 15 FP

18

 Strategic Renewals and Leasing Activity

19

 Actions Taken for Environmental Efforts

20

Section 4

Financial Strategy

Section 5

Appendix

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

1This document is provided for informational purposes and should not be construed as an offer orsolicitation of an offer to buy or sell any specific product, including investment units. We advise
you to inquire with each securities company with regards to the purchase of Daiwa Office
Investment Corporation’s investment units.
This document is not intended to provide information meeting the requirements of Japan’s new
Financial Instruments and Exchange Law or Investment Trust and Investment Corporation Law, orby the associated cabinet orders, cabinet office ordinances, or rules, or by the rules governingcompanies listed on the Tokyo Stock Exchange, or any other applicable rules, nor is it adisclosure document or statement of financial performance prepared in accordance with theprovisions of any of the foregoing.
This document contains forward-looking statements. However, these forward-looking statements
are based on certain assumptions and judgments made using currently available information, andthere are a number of known and unknown risks and uncertainties. These forward-looking
statements are not a guarantee of future performance or management results, and actual results
may differ materially from any explicit or implicit forecasts contained herein.
Although the information contained in this document is the best available at the time of
publication, no assurances can be given regarding the accuracy and certainty of this information.
The content of this document can be modified or withdrawn without prior notice.

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

2

The 14th Fiscal Period Topics█ Properties Acquisition¾ “West Park Osaki” (Date of Delivery: September 18, 2012 Acquisition Price: 1,650 million yen)

█ Property Management and Management Situation¾ Occupancy Rate at the end of the 14th FP : 96.4% (the 14th Expected Occupancy Rate estimated in July 2012 : 94.3% /Occupancy Rate at the end of the 13th FP: 94.3%)¾ Average Contract Rent at the end of November 2012 : 18,768 yen (% change from the end of May 2012: -3.7%)█ Financial Situation¾ Interest-bearing liabilities at the end of November 2012 : 112,081.25 million yen ( LTV (based on acquisition price) : 35.6%)¾ As a result of refinancing, debt cost has improved and the average borrowing rate declined from 1.9% to 1.4%

<Reference> The 15th Fiscal Period Topics█ Properties Acquisition (Scheduled)¾ “shinyon curumu” (Date of Delivery: December 3, 2012 and April 12, 2013 (Scheduled) Acquisition Price: 9,650 million yen)
¾ “Honshu Meieki Building” (Date of Delivery: February 1, 2013 (Scheduled) Acquisition Price: 5,300 million yen)
¾ “Kamiooka Eye Mark Building” (Date of Delivery: March 1, 2013 (Scheduled) Acquisition Price: 2,000 million yen)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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

4

Highlights of the 14th Fiscal Period█ Results of the 14th Fiscal Period(Million Yen)

13th Fiscal Period(ended May 2012)(37properties)

14th Fiscal Period(ended Nov. 2012)(38 properties)

Difference

Operating Revenue

7,431

7,566

+134

Operating Expenses

4,341

4,419

+77

Operating Income

3,090

3,146

+56

Non-operating expenses

1,080

787

▲ 292

Ordinary Income

2,022

2,364

+342

Net Income

2,021

2,369

+347

Dividend per Unit

5,107 yen

5,986 yen+879 yenOccupancy Rate

94.3%

96.4%

+2.1%

NOI Yield (annualized)*

3.4%

3.4%

－

*NOI Yield (annualized) calculated based on book value

Increase in rent revenue from existing properties (Daiwa
Sarugakucho, E SPACE TOWER, etc.), full contribution ofrent revenue from Nihonbashi Honkokucho Tosei Building
acquired in the 13th FP and increase in rent revenue from
West park Osaki acquired in the 14th FP.
New payments for the taxes and dues associated with theacquisition of Daiwa Kayabacho Building, Jimbocho Placeand E SPACE TOWER in 2011 increased the total taxes
and dues. But decrease in depreciation adds up to anincrease of 77 million yen.
Borrowing cost improves due to cost reductions byrefinancing loans. Non-operating expenses decreased by
292 million yen.

Since leasing of existing properties (Daiwa Ginza, Daiwa
Nishi-Shimbashi, etc.) was going well, dividend forecast
was increased by 200 yen on Sep 7, 2012.
(Million Yen)

(Reference)(A) Forecast announced
on July 16, 2012(37 properties)(B) Forecast announced
on September 7, 2012(38 properties)

Difference between(A) and (B)(C) 14th Fiscal Period(ended Nov. 2012)(38 properties)

Difference between(C) and (B)Operating Revenue

7,413

7,517

+104

7,566

+48

Operating Expenses

4,439

4,468

+28

4,419

▲ 49

Net Income

2,177

2,256

+79

2,369

+113

Dividend per Unit

5,500 yen

5,700 yen+200 yen

5,986 yen+286 yenOccupancy Rate

94.3%

－

－

96.4%

－

Previous forecast of the
14th Fiscal Period

Decrease in repair
expenses increased
dividend by 286 yenfrom the forecast on
Sep. 7, 2012.

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

5

Highlights of Forecasts for the 15th and 16th Fiscal Period(Million Yen)

█The 15th Fiscal Period(Forecast)th

15 FP Forecast
Ending May 2013(41 properties)

Differencecompared to 14thFP

Operating Revenue

7,605

+39

Operating Expenses

4,381

▲38

Operating Income

3,224

+77

Non-Operating expenses

748

▲38

Net-Income

2,473

+104

6,250yen+264 yen

Expected Occupancy Rate

94.3%

▲2.1%

Expected NOI Yield (annualized)

3.3%

－

Dividend per Unit

█The 16th Fiscal Period(Forecast)

Operating Expenses increases due to new acquisitions (shinyon
curumu, etc.) but repair expense and depreciation decreases.

Cost reduction by refinancing loans.

(Million Yen)
16th FP Forecast
Ending Nov 2013(41 properties)

Differencecompared to 15thFP

Operating Revenue

7,966

+360

Operating Expenses

4,618

+236

Operating Income

3,348

+123

Non-Operating expenses

753

+4

Net-Income

2,592

+118

6,550 yen+300 yen

Expected Occupancy Rate

94.6%

+0.3%

Expected NOI Yield (annualized)

3.3%

－

Dividend per Unit

Assumed decrease in rent revenue of Shinjuku Maynds Tower bytenant’s cancellations, but acquisition of shinyon curumu, Honshu
Meieki Building and Kamiooka Eye Mark Building increased the
Operating Income.

Full contribution of rent revenue from Honshu Meieki Building andKamiooka Eye Mark Building acquired in the 15th FP. Rent
revenue of Daiwa Ginza, Daiwa Jimbocho, E SPACE TOWER,
etc. increased.

Increase in both Operating Expenses for new acquisitions in the
15th FP and repair expenses.

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

6

Issues and Activities of the Investment Corporation
Balance
Balance Sheet
Sheet ofof thethe 14th
14th Fiscal
Fiscal Period
Period(Fiscal(Fiscal Period
Period ended
ended November
November 2012)2012)（Unit：Million Yen）

Asset Issues and Activities

Liability Issues and Activities

 Measures to Improve Profitability

 Reduction in Risk of Rising Interest RateÎ Improve occupancy rate of the low
occupant properties scheduled for
acquisition in the 15th FP
Î Prevent cancellations by strengthening
relations with existing tenants
Î Implement strategic renewals aimed forboosting competitiveness Strengthen Collaboration with GroupÎ Prepare for the risk of rising interest rates
in the future by lengthening borrowing
terms

Liabilities
124,547
Financial Strategy
Status of interestbearing liabilities

Internal Growth
Leasing
Improvement
P8 - 21

Assets

P32 - 35

325,665

Î Strengthen leasing through collaboration
with Daiwa Securities GroupNet Assets

Î Increase ratio of fixed interest rate byutilizing swap transactions and reduce therisk of rising interest rates in the future.
 Decrease in Interest Rate Costs

Î Continuously strive to reduce financial
costs

201,117

 Measures to Reduce Costs

Î Reduce energy consumption costs
Î Individualize compartment of heat sources
for air-conditioning systems
Î Ensure appropriate construction costs

 Selective Purchases of Properties

Î Active investment for competitive
properties after thorough selection

External Growth
Growth through asset
acquisitions

Forecast
Forecast EPS
EPS forfor thethe 15th
15th Fiscal
Fiscal Period
Period6,250 yen

P22 - 31

Forecast
Forecast EPS
EPS forfor thethe 16th
16th Fiscal
Fiscal Period
Period6,550 yenThis 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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

7Section 2
Internal Growth

Leasing Market of Tokyo Office Building (1)(Yen / Tsubo)
25,00010

Leasing
Leasing Market
Market ofof TokyoTokyo Office
Office Market
Market(%)
23,000Trend
Trend ofof Office
Office Rent
Rent andand Vacancy
Vacancy Rate
Rate
of
5
CentralWardsofof 5 Central Wards of Tokyo
Tokyo

Rent (Yen / Tsubo)
28,000（Rent）

8

21,000（Vacancy Rate）

2008/926,0006

Ｂ Class Bldg.
24,0002007/919,000A Class Bldg.
Rental Market Clock(conceptual chart)

2001/6
2000/1

4
22,00017,0002003/10Large scale buildings of 5 Central Wards of Tokyo

2
Existing Building Average Rent (left axis)

20,000Existing Building Vacancy Rate (right axis)

200

100

'16/01'15/01'14/01'13/01'12/01'11/01'10/01'09/01'08/01'07/01

18,000

121

91

119
77

117
65

86

87

85

From
To
Change in rent
area
Change inpercentage

2010/122011/06

2011/06
2011/122011/122012/06

2012/06
2012/12-40,998

69,723

168,375

101,574 2011/12

-1.0%

1.7%

4.1%

57

34

50

2012/92012/12

2001/6

2007/990

2.4%

2012/6

2008/916,000

181

154
125

Changes in total rent area of large scale buildings

Supply of large scale office buildings（10 thousand㎡/year）
250
216

150

'06/01'05/01'04/01'03/01'02/010'01/01

15,000The high hoveringvacancy rate createdby vacant space ofless popular buildings
is holding back thehigher end of rents.

2000/1
2003/10

14,000

0
'16

'15

'14

'13

'12

'11

'10

'09

'08

'07

'06

'05

'04

'03

'02

'01

Office Buildings of 5 Central Wards of Tokyo 2011/12

Incomplete Construction
Completed Construction(Data): Miki Shoji and Mori Building * Large scale office buildings : Total floor area of 10,000m2 or more.

12,000
0％

1％

2％

3％

4％

5％

6％

7％

2012/6

8％

9％

10％

(Data) : Sanko Estate compiled by Daiwa Real Estate AssetManagement(Vacancy Rate)* Large scale buildings : A floor area of 200 tsubo (661.2m2) or more.
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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.
9

Leasing Market of Tokyo Office Building (2)Relocation
Relocation needs
needs ofof tenants
tenants (Greater(Greater Tokyo
Tokyo Area)
Area)

SupplySupply andand demand
demand trend
trend ofof thethe Tokyo
Tokyo Office
Office Building
Building Market
Market **(Tsubo)400,000

300,000*Leasing buildings with total
floor area of 500 tsubo or more.

9.0%

Predicted figures
Gap of supply and demand
6.0%

100,000

4.5%

0

3.0%

20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16

200,000-100,000-200,000

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

7.5%

Floor area of new supplies
Floor area of new demands
Vacancy Rate

1.5%

0.0%

2008
(n=427)

9.8% 3.8% 15.0%

2010(n=434)

10.2% 6.9%

2012
(n=638)

17.4%

71.4%

19.8%

8.8%

63.1%

20.8%

53.0%

Plans to move-out within 2years
Scheduled but not yet determined

Plans to move-out after 2years
No plans to move-out(Data): Transition of the supply and demand balance (standard scenario) from CBRE
“Office market medium term forecast 2012 Tokyo's 23 wards”

Rent-built Tokyo
newly
Rent trend
trend ofof thethe newlynewly-built
Tokyo Office
Office Buildings
Buildings **140
130

Newly-built Office Buildings
Existing Office Buildings*New-built buildings are limited tobuildings of one year building age.

120
110

Newly
establish
ed
1.4%

100
90

Expansion
27.3%

Other /
No
answer
42.3%

ReductionConsolid 15.0%
ation
13.0%
Separati
on
1.0%

20

03
20 /0103
20 /0704
20 /0104
20 /0705
20 /0105
20 /0706
20 /0106
20 /0707
20 /0107
20 /0708
20 /0108
20 /0709
20 /0109
20 /0710
20 /011020 /0711
20 /0111
20 /0712
20 /0112/0
780(Data) Miki Shoji Tokyo office, Index graph placing rent of January 2003 = 100(Data): CBRE “Conscious survey on offices 2012 (Greater Tokyo Area)” Nov. 2012
Survey period: From end of Oct. to early Nov. 2012

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

10Portfolio Map -Increase and decrease in occupancy rate compared with previous Fiscal PeriodAs of November 30, 2012

55 Central
Central Wards
Wards ofof TokyoTokyo andand Greater
Greater Tokyo
Tokyo Area
Area
Occupancy rate compared withprevious Fiscal Period
Daiwa Higashi Ikebukuro

Ikebukuro StationUp: 13 buildingsDown: 4 buildings

Unchanged : 20 buildings

Regional
Regional Cities
Cities
Shinjuku Station

Shinjuku Ward

Daiwa Misakicho
Jimbocho Place

Daiwa Sarugakucho
Daiwa Jimbocho
Daiwa Kudan
Daiwa Kodenmacho
Nihonbashi Hongokucho Tosei Building
Nihonbashi MS Bld.
Shinjuku Maynds Tower
Sunline Bldg. No.7
Daiwa Nihonbashi Honcho
Tokyo
Shibuya
Daiwa Kayabacho Build.
Chiyoda Ward Station
Daiwa
JingumaeWard
Daiwa Kyobashi
Daiwa Ginza Annex
Chuo Daiwa Ginza 1-chome
Daiwa Minami Aoyama
Ward
BPS Square
Daiwa Ginza
SHIBUYA
Daiwa Tsukiji
EDGE
Daiwa Tsukiji 616
Daiwa Nishi-Shimbashi
Daiwa Tsukishima
E SPACE TOWER
Daiwa Onarimon
Daiwa Shinbashi510
Shibuya Station
Daiwa A Hamamatsucho
Daiwa Shibuya SS
Daiwa Shibadaimon
Daiwa Azabudai
Daiwa Shibaura

Daiwa Kinshicho

Minato WardTokyo

Benex S-3
Shinagawa Station

Daiwa Minami-Senba

Daiwa Shinagawa NorthWest Park Osaki ** West Park Osaki maintains full occupancy from the time of acquisition.

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

11Analyses of Leasing Income (1)█ Occupancy Rate and Forecast

Occupancy
Occupancy Rate
Rate
100%

99.0%
97.4%

(1)
(1) TheThe 1414hh Fiscal
Fiscal Period
Period (Actual)(Actual)

98.3%
97.7%

98.2%

95.9%

97.6%

97.0%
95%

95.4%

96.4% 96.1%
96.1%
94.3%

94.3% 94.6%

Occupancy Rate (Actual)
Expected Occupancy Rate in 14th Period
Expected Occupancy Rate in 13th Period
Expected Occupancy Rate (38properties)

85.7%

85%
2nd

3rd

4th

5th

6th

7th

8th

9th

10th 11th 12th 13th 14th 15th 16th

FP

FP

FP

FP

FP

FP

FP

FP

FP

FP

FP

FP

FP

FP

FP

FP

9.8%
7.4%

3.9%

3.2%

3.3%

8.2%
4.0%

2.6%

0.0%
-5.0%

7th FP
8th FP-3.9%

9th FP-10.0%-15.0%-20.0%

10th FP
12th FP
13th FP
14th FP
15th FP-3.4% 11th FP
-3.9%
-3.9%
-5.9%
-6.3%
-7.3%
Rate of Moving-in-12.0%-14.7%

 The expected occupancy rate at the end of 15th Fiscal Period is estimated as 94.3%
due to acquisition of low occupant properties.

 The cancellation rate of the 15th Fiscal period is estimated to decrease to 3.9%.

13.4%

10.0%
5.0%

94.3％

 The expected occupancy rate of the existing 38 properties (excluding new acquired
properties) are estimated to remain mostly level of 96.1%.

Rate
Rate ofof New
New Leases
Leases // Cancellations
Cancellations

7.2%

 Occupancy rate of Daiwa Nihombashi Honcho recovered from 85.2% to 97.6%.

(2)(2) TheThe 1515thth Fiscal
Fiscal Period
Period (Forecast)(Forecast)

1st

15.0%

 Occupancy rate of Daiwa Jimbocho recovered from 20.6% to 86.7%.
 Daiwa Shibadaimon, Daiwa Higashi-Ikebukuro, Daiwa Tsukiji 616, Daiwa Shibuya SS,
Daiwa Kyobashi, Sunline Building No. 7 and Daiwa Kudan reached full occupancy.

92.8%
90%

96.4％

Ex pected Rate of Moving-in
Rate of Moving-out
Ex pected Rate of Moving-out

16th FP-2.3%(3)(3) TheThe 1616thth Fiscal
Fiscal Period
Period (Forecast)(Forecast)

94.6％

 The expected occupancy rate at the end of 16th Fiscal Period is estimated as 94.6%,
assuming no recovery in the occupancy rates of the low occupant properties acquiredin the 15Th Fiscal Period.
 The expected occupancy rate of the existing 38 properties (excluding new acquired
properties) are estimated as 96.1%.
 The cancellation rate of the 16th Fiscal period is estimated to decrease to 2.3%.

*Ratio transition of new leases and cancellations areas to the total rentable area.

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

12Analyses of Leasing Income (2)Diversification
Diversification ofof Tenants
Tenants Rent
Rent Area
Area

Tenant numbers

Transition
Transition ofof New
New Leases
Leases andand Cancellations
Cancellations andand its
its ReasonsReasons **（Cases)

(%)

500

100.0

（Cases)

60
44
38

40

1,000㎡ or over (left axis)

400

33
24

90.0

17

20

300㎡ - 1,000㎡ (left axis)

65less than 300㎡ (left axis)
Occupancy Rate (right axis)
300

38
41

4
-2

-20
-20

-14

-19

-12
-20

-24

32
146
129

129

159

13

80.0

41

200

18

18

16

0

40
42

31

30

70.0

-25

-26

-40

134

115

-53

-60

7th FP 8th FP 9th FP 10th FP 11th FP 12th FP 13th FP 14th FP

100

60.0

97

105

108

106

113

119

0

14th Period

50.0
2010/5

2010/112011/5

2011/112012/5

2012/11

New Leases

New Leases
Cancellations

Cost
Reduction

Cancellations
Space
Space
Consolidation
Expansion
Reduction
9
16
7
2
3
7
4
6

Net New Leases
BetterLocation

Other
7
4

Total
3
2

44
26

* Excluding residence and warehouse tenants.

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

13

Analyses of Leasing Income (3)Average
Average Contract
Contract Rent
Rent andand Market
Market Rent
Rent

(Yen / Tsubo)
25,000Contract
Contract Renewal
Renewal Area
Area
█ The 15th Fiscal Period Contract Renewal Tenants
The ratio of areas scheduled for contract renewal to the total
rentable area (201,328.33㎡) at the end of 14th Fiscal Period.

20,000Contract Renew al Area

Non Contract Renew al

21.5%

Area, 78.5%█ The 14th Fiscal Period Contract Renewal

Av erage Contract Rent*

Cancellation from

Cancellation from Non

Contract Renew al Area

Contract Renew al Area

1.8%

4.7%

Miki Shoji Toky o 5 Central Wards Office Rent

The ratio of areas which had contract renewal during 14th Fiscal
Period to the total rentable area (195,540.50㎡) at the end of 13th
Period.
Non Contract Renew al
Area (Ex cluding
cancelletion), 82.0%

15,000Contract Renew al Area

4th FP 5th FP 6th FP 7th FP 8th FP 9th FP 10th FP 11th FP 12th FP 13th FP 14th FP* Average Contract Rent is an average monthly rent of the tenants contracting at the end of the Fiscal period.
(Million Yen)

(Ex cluding
cancelletion), 11.4%

Attribution
Attribution Analysis
Analysis // Monthly
Monthly Contract
Contract Rent*
Rent*

1,250
14th FP

1,200
1,150

Increase by New
LeasesDecrease by
Tenants’Cancellations

Increase by
New
Acquisition

63.7%

13.8%

64.5%

13th FP

30.7%
0.8%

12th FP

Decrease by
Rent
Revisions

1,100

22.7%

28.4%

4.0%
19.6%

48.4%
3.5%

1,050

11th FP

1,000

10th FP

40.8%

45.0%

9.5%

4.7%

End of May 2012
Monthly Contract Rent

End of Nov. 2012
Monthly Contract Rent

* Monthly Contact Rent is a total of final rent from tenants contracting at the end of the Fiscal Period.

0.0%

53.9%
20.0%
Decrease

40.0%
Increase

34.0%
60.0%
Unchanged

12.1%
80.0%

100.0%
Cancell

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

14Performance of Shinjuku Maynds Tower & E SPACE TOWER
Acquisition
Acquisition AmountAmount Ratio
Ratio ofof Maynds
Maynds Tower
Tower && EE SpaceSpace Tower
Tower

Shinjuku
Shinjuku Maynds
Maynds Tower
Tower Occupancy
Occupancy Rate
Rate
100.0%

99.4% 100.0% 96.6% 99.9% 99.1%

99.9% 99.9% 98.3% 93.5% 95.1%

78.1%

80.0%
Other Properties:
49.9％

99.9% 99.9%

60.0%

Shinjuku Maynds Tower& E SPACE TOWER：
50.1％

40.0%

Shinjuku Maynds Tower Occupancy Rate

20.0%

Shinjuku Maynds Tower Expected Occupancy Rate

0.0%
4th FP 5th FP 6th FP 7th FP 8th FP 9th FP

OfficeOffice Building
Building Supply
Supply inin thethe Five
Five Central
Central Wards
Wards ofof Tokyo
Tokyo

10th

11th

12th

13th

14th

15th

16th

FP

FP

FP

FP

FP

FP

FP

EE SPACESPACE TOWER
TOWER Occupancy
Occupancy Rate
Rate

(10,000m2)
200

100.0%

Middle class building completed / completing after 2012

100%

*

150

Large-scale building completeing after 2013

92.8%

100.0% 100.0% 100.0% 100.0% 100.0% 96.5% 100.0% 100% 100.0% 100.0% 100.0%

80%

Large-scale building completed in 201260%
E SPACE TOWER Occupancy Rate

100

40%

E SPACE TOWER Expected Occupancy Rate

20%

50

0%
4th FP 5th FP 6th FP 7th FP 8th FP 9th FP

0
Minato-ku

Shibuya-ku

Shinjuku-ku

Chiyoda-ku

Chuo-ku

10th
FP

11th
FP

12th
FP

13th
FP

14th
FP

15th
FP

16th
FP

(Data): Mori Building and Nikkei Real Estate Market Report.
• Since E SPACE TOWER was acquired on July 2011, the occupancy rate data of June 2011 is used for the odd
number periods and data of December 2011is used for the even number periods before 12th FP.
* Large scale properties are offices with total floor area of 10,000m2 or more.
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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.
15

Internal Growth Strategies“Bonji-Tettei”
Accomplishing ordinary tasks thoroughly and carefully
enables us to achieve extraordinary results█ Improve occupancy rate through lease-upÎ Strengthen collaboration with agents.
Hold regular meetings and regular visits with various agents.
Î Implement prompt and smooth leasing.
Person in charge of asset management to be present at time of property viewing, and establish a point of contact andcollaboration and means of communication with the property management company.
（Cases)Î Enhance property recognition with up-to-date information.
100
Implement face-to-face leasing by visiting with regularly-updated vacancy information and property information.

█ Measures to reduce costs

Number of Inquiries from potential tenants (left axis)

100%

Number of new contracts (left axis)█ Prevent cancellations by strengthening relations with existing tenants
Î Enhance tenant satisfaction by strengthening communication with existing tenants.
Î Visit all tenants on a regular basis and ensure timely response by deepening interaction among people andrespond to tenants face-to-face.

Leasing
Leasing Activities
Activities

Occupancy Rate (right axis)

75

95%

50

90%

25

85%

0

80%

Î Maintain fair cost and price level by introducing principle of competition and continue to look into construction costsof heat light and water and management cost.

█ Implement strategic renewals aimed at boosting competitiveness█ Strengthen collaboration with Daiwa Securities GroupÎ Reinforce leasing by utilizing Daiwa Securities’ branch network.
Î Implement leasing that utilizes Daiwa Securities Group’s network of corporate clients.

20
11
/1
20 2
12
/0
20 1
12
/0
20 2
12
/0
20 3
12
/0
20 4
12
/0
20 5
12
/0
20 6
12
/0
20 7
12
/0
20 8
12
/0
20 9
12
/1
20 0
12
/1
1

Î Scrutinize construction contents and ensure appropriate construction costs.
Î Implement environmentally friendly construction and equipments for existing properties.

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

16

Occupancy Rate of the Properties Subject to Leasing Improvement in the 14th FP█ Daiwa Kudan█ Daiwa Jimbocho(Acquisition price: 4,000 mil yen)walk from Kudan
Station on the Tokyo Metro Tozai,
Hanzomon Line ,Toei Subway
Shinjuku Line.

Station on the Tokyo Metro
Hanzomon Line, Toei Subway
Mita Line and Shinjuku Line.

 Many affiliated companies of

those head quarters situated in
the area of “Tokyo Station
perimeter” or “Ginza” are nearby.

 Area has many middle scale

offices, universities, various
type of schools and retails.

100.0%

100.0%

100.0%

88.0%

100.0%

86.7%

51.2%

50.0%

walk from Tsukiji
Station on the Tokyo Metro
Hibiya Line.

Shinjuku and Shibuya.

demand for office buildings dueto the convenient access using 3
subways.

100.0%

 1-minute Convenient access to Otemachi,

 Located in the area with high88.1%

(Acquisition price: 1,560 mil yen) 1-minute walk from Jinbocho

 1-minute100.0%█ BPS Square(Acquisition price: 4,150 mil yen)

50.0%

50.0%

20.6%
0.0%

0.0%
2011/112012/5

2012/110.0%

2011/112012/5

2012/11

 Main tenant vacated the property during the 14th Fiscal

 The main tenant vacated the property during the 13th

Period due to improvement of its business efficiency so theoccupancy rate went down to 51.2%.

Fiscal Period due to improvement of its business efficiency
so the occupancy rate went down to 20.6%.

 DOI has appealed points such as property close to the DOI has appealed points such as property close to thestation and convenient access using three subways.
 Occupancy

rate improved quickly by implementing
proactive renewal construction.
th Delivered full occupancy within the 14 Fiscal Period.

station and convenient access using three subways.
 Occupancy

rate improved quickly by implementing
proactive renewal construction.

2011/110.0%
2012/50.0%
2012/11 The company operating the whole building as a sub-leasevacated the property during the 13th Fiscal Period due to its
business slump. The occupancy rate fell to 0.0%.
 All the end-tenants vacated on August 2012, since thenimplemented restoration to original state.
 Actual leasing activity starts from October 2012.

th Full occupancy expected in the 15 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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

17

Properties Subject to Leasing Improvement in the 15th FP█ Honshu Meieki Bldg.

█ shinyon curumu

Nagoya Station on JR andNagoya city metro Line and 2minute walk from undergrounddoorway leading to Nagoya
Station underground shopping
arcade.

south exit of Shinjuku Station
on JR and directly connected to
Shinjuku 3-chome Station on
the Tokyo Metro Marunouchi
Line and Fuku-toshin Line.
 Area expects to expand further

1,144.63m

Structure

S / RCFloor

B2 / 11F

Use
Total Floor
Area
Occupancy
Rate
Completion

Office / Store
2

9,234.99m

51.90% (December 2012)*
January 2012

Station on the Tokyo Metro
Hibiya Line.
 Many affiliated companies of

those head quarters situatedin the area of “Tokyo Station
perimeter” or “Ginza” arenearby.

growing year by year withlarge scale redevelopment
being planned.
Address

Meieki-Minami 1 chome, Nakamura-ku,
Nagoya-shi, Aichi Prefecture

Site Area

Address

Tsukiji 2 chome,Chuo-ku, Tokyo

2,059.56m

Site Area

464.81m

Structure

S

Structure

SRC

Floor

12F

Floor

10F
Office2Site Area 1-minute walk from Tsukiji

 Area of business accumulation

with the development of thestation bldg. scheduled for2016 opening.
Shinjuku 4 chome, Shinjuku-ku, Tokyo(Acquisition price: 1,560 mil yen) 6-minute walk from Exit 7 of

 4-minute walk from the new

Address█ BPS Square(Acquisition price: 5,300 mil yen)(Acquisition price: 9,650 mil yen)

2

UseTotal Floor
Area
Occupancy
Rate

Office / Store

78.4% (February 2013 : Planned)

Use
Total Floor
Area
Occupancy
Rate

Completion

December 2007

Completion

2

10,416.96m

2

2

2,902.92m

0.0% (November 2012)
January 1996

 Area is a hub for a number of railroads including JR,
 DOI will appeal points such as property close to JR

Shinjuku station and convenient access using threesubways.
 Area is located where commercial and office zone

intersects. With further development of the area, mid tolong term demand from tenants are expected.
 Prospected area for growth potential due to development in

the Shinjuku new south exit.
* Represents occupancy rate of the whole building.

Nagoya city metro, Nagoya Railroad and Kintetsu withconvenient access.
 DOI will appeal the property’s closeness of 6-minute walkfrom Nagoya Station and 2-minute walk from underground
shopping arcade.
 Area’s business accumulation will grow due to large scale

development planned in the future. DOI will take inrelocation needs from other office areas of Nagoya city andaim for early occupancy rate improvement.

 Since occupancy rate is staying stagnant, the property

continues to be subject to leasing improvement for the15th
Fiscal Period.
 DOI will appeal the property’s convenience which is locatedin front of the Tsukiji Station exit and closeness to Tokyo
Station and Ginza area.
 While seeking needs for the whole building, DOI will aim forearly occupancy rate improvement.

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

18

Strategic Renewals and Leasing Activity█ Capital Expenditures implemented in the 14th Fiscal Period■ Daiwa Sarugakucho common area rennovation■ Daiwa Sarugakucho entrance rennovation(Before)(After)■ Shinjuku Maynds Tower common area renovation(Before)(Before)(After)█ Strategic Leasing Activity(After)■ Shinjuku Maynds Tower roof iron frame paint(Before)(After)(Daiwa Ginza)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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

19

Actions Taken for Environmental Efforts█ Daiwa Ginza : Received SMBC Sustainable Certification
Even though Daiwa Ginza is just coming up to 50 years old, it has earned “Gold” from a certification level based on SMBC Sustainable
Building Assessment Loan because of a high evaluation for “the policy and implementation of sustainable management”, “the sustainableutilization of site” and “the risk management”.
SMBC Sustainable Building Assessment Loan facilitates loans based on the assessment of buildings owned or constructed by companies
for such as 1) the environmental performance on energy, water and materials and other issues, 2) initiatives on risk management necessary
for securing sustainability, including earthquake resistance, BCP and BCM, and 3) management policy and implementation to promote 1)
and 2).

(Photo) Daiwa Ginza█ Daiwa Real Estate Asset Management : GRESB 2012 awards "Green Star"
Daiwa Real Estate Asset Management participated in the latest Global Real Estate Sustainability Benchmark (GRESB) survey for the
portfolio of Daiwa Office Investment Management and earned the best rating of "Green Star" from GRESB Survey 2012. Daiwa Real Estate
Asset Management received a high evaluation on sustainability from both "Management and Policy" and "Implementation andMeasurement" aspects.
GRESB is an industry-led international organization which intends to evaluate sustainability performance of real estate portfolios.
Daiwa Real Estate Asset Management will continue to make efforts to improve sustainability performance.

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

20Section 3External GrowthThe Real Estate Market and Trading Performance
The
The Real
Real Estate
Estate Market
Market andand Trading
Trading Performance
Performance（Number）
800

30

Number of Transactions
Lending Stance DI (Real Estate)
Lending Stance DI (All Industries)

700
Number of Transactions

600

20
10

500

0

400

-10

300

-20

200

-30

100

-40
-50

0
2005 2nd 2006 1st 2006 2nd 2007 1st 2007 2nd 2008 1st 2008 2nd 2009 1st 2009 2nd 2010 1st 2010 2nd 2011 1st 2011 2nd 2012 1st 2012 2nd 2013 1st
Half
Half
Half
Half
Half
Half
Half
Half
Half
Half
Half
Half
Half
Half
Half
Half

DI=Diffusion Index (Aboveis easy (accommodating),
whereas below
is severe)

Source: Compiled by DOI based on data from the “Real Estate Transaction Survey” of the Urban Research Institute(Mizuho Trust and Banking’s think tank) and information from the Bank of Japan’s website

00（Billion yen）
400

80%

350
59.0%
300

54.4%

250

54.4%
Total Acquisition Price

200
150
100

60.8%

79.5

311.3
54.0%

52.2%

287.0

283.4

265.0

265.0

265.0

269.1

278.1

314.9

331.8

70%

287.3

60%
50%
35.3%

Estimated LTV（Acquisition
Price ）
LTV（Acquisition Price）
130.4 138.4
110.8

313.3

350.0

26.4%

27.4%

26.9%

29.8%

35.6%

35.6%

38.7%

40%

30.0%
30%

22.6%

20%

Active investment for competitive
properties after thorough selection

50

42.1%

10%

0

0%
Listed1st
Period2nd
Period3rd
Period4th
Period5th
Period6th
Period7th
Period8th
Period9th
Period10th
Period11th
Period12th
Period13th
Period14th
Period15th
PeriodThis 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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

22

Property Review for Acquisition█ Number of Properties Reviewed for Acquisition（Cases）█ Property Selling Potentials / Trends by Attributes（Cases）

100

600
Number* of properties reviewed （ left axis）

Attributes

Potential Needs and Trends

General BusinessCompanies- Possibility to sell to focus on core business.

General Contractors- Possibility to sell to lock in profits.

Developers- Possibility to sell after booking of impairment loss.

Lenders- Continue to refinance for core assets.

Creditors- Possibility to sell from senior lenders and servicers who havedefaulted (However number of cases are in a decreasing
trend).

- Possibility to sell as part of a restructuring plan.

Number of properties reviewed in detail （ right axis）

500

400

300

50
44

200
32

CMBS

35
30

Funds

25

- Continue to refinance.
- Possibility to sell depending on currency movement.

100- Possibility to sell by confirming the loss of equity investors

00
10th FP

11th FP* Number of gross proposals.

12th FP

13th FP

14th FP

Others- Realization needs by individuals and small and medium sizedbusiness operators.
- Possibility to sell for inheritance.
- Possibility to sell from life and non-life insurance.

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

23

Recent Property Acquisition (1)█ West Park Osaki

Acquisition Price : 1,650 million yen

Settlement Date : September 18, 2012

Expected NOI : 101 million yen< Characteristics of the Property > Stable market in the Osaki area
9 Vacancy rate is low in the Osaki area.
Period of Time
Vacancy Rate

2012.3
1.5%

2012.6
1.6%

2012.90.9%(Data): CBRE

 Stable demands from tenants
9 Number of major corporations are based in large scalebuildings around the property so sub-office and move-in
needs are expected from those affiliates, business
partners and subcontracted companies.

 Relatively new property close to Osaki Station
9 3-minute walk form the west exit of Osaki Station of the JR
Yamanote, Saikyo, Shonan-Shinjuku and Rinkai Lines.
9 Close to Shinagawa Station and Haneda Airport with goodaccess to major cities throughout Japan.
9 Relatively new property and supply of competitive middle
class office buildings are limited.

<Major corporations based in Osaki Area>
Sony, Fuji Electric, Lawson, Japan Steel Works, 、Toshiba Tec, Adobe Systems, Mitsui Mining & Smelting,
Meidensha, Sumitomo Construction Machinery, Nippon
Meat Packers, Mos Food Services, Puma Japan, etc.
Location

3-6-28 Osaki Shinagawa-ku, Tokyo

Site Area

749.63㎡

Structure

S / RCFloor

B1 / 6F

Total Floor Area

2,243.36㎡

Appraisal Value

1,910 million yen (August 2012)

Construction Date September 14, 2007
Occupancy Rate

100.0％ (ended November 2012)

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

24

Recent Property Acquisition (2)-1█ shinyon curumu

Acquisition Price : 9,650 million yen

Settlement Date : December 3, 2012
/ April 12, 2013 (Scheduled)

Expected NOI : 411 million yen< Characteristics of the Property > Property close to Shinjuku Station
9 4-minute walk from the new south exit of JR Lines.
9Directly connected to the access way to Shinjuku 3chome Station
 A property relatively new with sufficient spec
9 A newly-built property on January 2012.
9 Has latest crime-prevention system on each floor.
 Implementation of efficient leasing operation
9 By conducting leasing activity of the whole building,efficient operation is implemented.

Location

4-2-23 Shinjuku Shinjuku-ku, Tokyo

Site Area

1,144.63㎡

Structure

S / RCFloor

B2 / 11F

Total Floor Area

9,234.99㎡

Appraisal Value

10,000 million yen (October 2012)

Construction Date January 25, 2012
Occupancy Rate

51.9％ (December 2012)** Represents occupancy rate of the whole building.
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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

25

Recent Property Acquisition (2)-2
 Directly connected to the access way

 Developmentof new south exit of
Shinjuku Station

to Shinjuku 3-chome Station
9 Property is directly connected to the access way of Japan’smost powerful area to attract

crowds

9 Shinjuku Station is Japan’s largest terminal in number ofcommuters a day which is one indication to learn about
facility on a vacant lot adjacent to new south exit of JR
area’s attractiveness to crowds.
Shinjuku Station.
(10,000 people/ day)
9Ministry of Land, Infrastructure, Transport and Tourism 400
365
302
is planning to build a highly accessible transportation
252
200
node in this Shinjuku area.
110
9 East Japan Railway is planning to build a complex

the Shinjuku 3-chome Station on Tokyo Metro
Marunouchi Line and Fuku- toshin Line.

0
Shinjuku

Shibuya

IkebukuroTokyo(Data): Office Japan, Number of commuters a day, Spring 2012 Intersection of office and commercial area
9 The property is located where the office and commercial
area intersects. With further development of the area, mid
to long term demand from tenants are expected.
 Shared operation with Tokyo Metro Fuku-

Toshin Line
9 Tokyo Metro Fuku-toshin Line will start shared operation

with Tokyu Toyoko Line from march 16, 2013.
Kawagoe
Tokorozawa(Data): Tokyo National Highway Office

Wakoshi
Seibu Yurakucho Line

(Tsubo)Ikebukuro

50,000

Office Area

40,000Shinjuku 3-chome

20,00010,000
0

15

14

20

13

20

12

20

11

20

10

20

09

20

08

(Data):Sanko EstateThis 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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

20

ShibuyaMusashi-Kosugi
Yokohama
Motomachi-Chukagai

Office Area

30,00020

Tokyu Toyoko Line

Commercial Area

 New supplies in Shinjuku ward
9 The new supplies in the Shinjuku ward area willconsiderably decrease after year 2013.

Tobu Tojo Line26

Recent Property Acquisition (3)Acquisition Price :5,300 million yen█ Honshu Meieki Bldg.

Settlement Date : February 1, 2013
(scheduled)

Expected NOI : 318 million yen< Characteristics of the Property > Convenient transportation access
9 6-minute walk from Nagoya Station on JR and Nagoya
city metro Line and 2-minute walk from undergrounddoorway leading to Nagoya Station underground
shopping arcade.
9 A number of railroads including JR, Nagoya city metro(Higashiyama-line and Sakuradori-line), Nagoya
Railroad and Kintetsu are available.

 Office market in the Nagoya area
9 Vacancy rate of Nagoya Station area is lower thanother office area of Nagoya city and its decreasing
trend is continuing.
(Vacancy rate)
18.0%

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%
2011.112

2012.1

2

3

Nagoya business area
Sakae area

Site Area

1-21-19 Meieki-Minami Nakamura-ku,
Nagoya-shi Aichi Prefecture
2,059.56㎡

Structure

S

Floor

12F

Location

4

5

6

7

Nagoya Station area
Marunouchi area

8

9

10

11

Hushimi area

 Growing business accumulation
9 Three skyscrapers are planned to be completed in thearea around Nagoya Station. The area’s businessaccumulation is expected to grow.
9 DOI will take in relocation needs from other officeareas of Nagoya city.
Sakura Dori

Total Floor Area 10,416.96㎡

Meieki 3 chome plan

Appraisal Value 5,960 million yen (November 2012)
Construction Date December 20, 2007

Meieki 1 chome plan

Honshu Meieki Building
Meieki Dori

Nagoya Station

Occupancy Rate 78.4％ (February 2013 : Planned)

Nagoya Station new building planThis 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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

27

Recent Property Acquisition (4)█ Kamiooka Eye Mark Bldg.

Acquisition Price :2,000 million yen

Settlement Date : March 1, 2013
(scheduled)< Characteristics of the Property > Convenient transportation access
9 1-minute walk from Kamiooka Station on Keikyu Line andYokohama Municipal Subway.
9 Keikyu Line’s “super limited express train” and “limited
express train” stops at Kamiooka Station which is convenient
to go to terminal areas such as 9 minute ride to Yokohama
Station and 26 minute ride to Shinagawa Station.
9 The bus terminal adjacent to Kamiooka Station is large insize within the southern part of Yokohama City and has goodtransportation access.

Expected NOI : 122 million yen

 High number of commuters
9 In terms of the number of commuters in year 2011,
Kamiooka Station ranked second to Yokohama Station of
all the Keikyu Main Line’s station within the Kanagawa
prefecture.
9 It is also ranked high within the main terminal stations inthe suburbs.
(Person a day)

400,000

200,000

0

303,890
140,230

120,483
Keikyu Main Line
Keikyu Main Line Odakyu Line

Yokohama St.

113,423

Keio Line

Shinyurigaoka
Chofu St.
St.
(Data): From the HP of each railroad companies, number of commuters in 2011

Site Area

1-14-6 Kamiooka Nishi, Konan-ku
Yokohama-shi, Kanagawa Prefecture689.12㎡

Structure

S / SRC

Floor

B3 / 7F

Location

Total Floor Area 3,755.36㎡
Appraisal Value 2,030 million yen (November 2012)
Construction Date May 13, 2011

Kamiooka St.

 Tenants providing services for local residents
9 There are high office demands from companies which
provides services for local residents around Kamiooka
Station.
9 Relatively new property in front of the station with highlevel of competitiveness.
Floor
Current tenants
7F
Real estate agency
6F
Telemarketing center
6F
Music school
5F
Real estate agency
5F
English conversation school
4F
Preparatory school
3F
Financial institution
2F
Financial institution
2F
Financial institution
1F
Financial institution
B2F
Financial institution

Occupancy Rate 100.0％ (March 2013 : Planned)
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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

28

Portfolio and Acquisition Policy█ Acquisition Policy
Distribution
Distribution Chart
Chart ofof Portfolio
Portfolio Properties
Properties

 Invest heavily in A and B class buildings less than 20 years of building age

Investment Target
for the time being(Total Floor Area (㎡) Invest heavily in the five central wards of Tokyo and equivalent area.

Portfolio Properties

105,000

corresponding to zone (1) for the time being.
 Target properties to improve stability and profitability of our existing portfolio.
 Consider disposal or replacement of Zone (2) properties at all times.

A Class Buildings

100,000█ Status after acquisition of the scheduled properties
for the 15th Fiscal Period

Shinjuku Maynds Tower

95,000End of the 14th PD Investment area

25,00020,000Greater Tokyo
6.6％

E SPACE TOWER(1)
15,00010,000Major Regional
Cities 1.5％

Five Central
Wards of Tokyo
91.8％

B Class Buildings

Honshu Meieki Bldg.

5,000

After acquisition

Greater Tokyo
6.9％

Major Regional
Cities 3.0％

Five Central
Wards of Tokyo
90.1％

 Property classshinyon curumu

Class A
42.5％

(2)

Class A
40.3％

Kamiooka Eye Mark Bldg.

Class B
57.5％

West Park Osaki

Class B
59.7％

0
0.0

10.0

20.0

30.0

40.0

50.0

60.0
(Building Age)*A class buildings: Total floor area is over 30,000㎡** B class buildings: Total floor area over 2,000㎡ but less than 30,000㎡

 Weighted average of the building age

21.5 years

20.5 years

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

29

Properties Acquired after Sponsor Change
Acquisition Period

9th Fiscal Period

Property nameDaiwa Jimbocho

Kudan Minami, Chiyoda-ku,
Tokyo
4,000 million yen

Nihonbashi-Kayabacho,
Chuo-ku, Tokyo
5,600 million yen

Kanda Jimcocho,
Chiyoda-ku, Tokyo
3,550 million yen

Maruyamacho Shibuya-ku,
Tokyo
24,000 million yen

Japan Core Asset II Ltd.

Shining Nova the Fifth B TMK

Daiwa Property Co., Ltd.

Tokyu Land Corporation

Endeavor Realty Fund Ltd.

March 10, 2010
13.0 years
6.0％

August 13, 2010
17.0 years
5.5％

September. 2, 201023.4 years
5.3％

March 25, 2011
0.9 years
5.1％

March 29, 2011
1.1 years
5.1％

July 8, 2011
8.7 years
4.8％

13th Fiscal Period

14th Fiscal Period

NihonbashiHongokucho
Tosei Build

West Park Osaki

Seller

ORIX JREIT Inc.

Acquisition date
Age of bldg. *NOI yield *Acquisition Period
Property nameNishi-Shimbashi,
Minato-ku, Tokyo
5,000 million yen

Jimbocho Place

12th Fiscal Period

Daiwa Kayabacho Building

Acquisition Price

Daiwa Nishi-Shimbashi

11th Fiscal Period

Daiwa Kudan

Kanda Jimbocho,
Chiyoda-ku, Tokyo
4,150 million yen

Address

10th Fiscal Period

E SPACE TOWER

15th Fiscal Period (scheduled)shinyon curumu

Hoshu Meieki Building

Kamiooka Eye Mark
Building

Total

Address
Acquisition Price
SellerAcquisition date
Age of bldg. *NOI yield *Nihonbashi-Hongokucho,
Meieki-Minami Nakamura- Kamiooka Nishi, Konan-ku
Osaki Shinagawa-ku, Tokyo Shinjuku Shinjuku-ku, Tokyoku, Nagoya-shi Aichi
Yokohama-shi, Kanagawa
Chuo-ku, Tokyo
1,721 million yen
1,650 million yen
9,650 million yen
5,300 million yen
2,000 million yen
Two domestic
Domestic special
Tosei Corporation
MCR Six GK
Shimizu Corporationindustrial companies
purpose company
December 3, 2012 /February 1, 2013
May 11,2012
September 18, 2012
March 1,2013 (scheduled)
April 12, 2013 (scheduled)(scheduled)
2.0 years
5.0 years
1.0 years
5.1 years
1.8 years
5.3％
6.1％
4.3％
6.0％
6.1％

－
66,621 million yen－－
7.5 years**
5.1％**

This document is not material disclosed in compliance with the Financial
Instruments
and Exchange
anyareregulation
similar* Numbersof the building
age and Law
NOI oryield
based onofthe
timenatureof acquisition.
, nor is it intended for the purposes of solicitation. Daiwa Office Investment
Corporation
advisesreaderto
makeinvestment
decisionsat theirjudgment.
* * The building age and NOI yield are calculated by weighted averageof theownacquisition
price. 30

Section 4
Financial Strategy

Status of Interest-bearing Liabilities (1)█ Status of the Interest-bearing Liability(In comparison with the end of the 13th FP)

Loan
Loan toto Value
Value Trend
Trend(Billion Yen)

280

70%

13th Fiscal Period■ Ratio of Long and Short-Term Borrowings

Interest-bearing Liabilities
LTV (based on acquisiton price)240

Expected LTV

200

14th Fiscal Period

20.0%

60%

25.0%

50%
80.0%

Upper limit range LTV in themedium-term target
160

40%

120

30%

75.0%

Long-term borrowings

Current position of long-term borrowings(Includes investment corporation bonds
redeemable within one year)■ Ratio of Fixed and Floating Borrowings
13.8%

15.7%

80

20%

40

10%

84.3%

86.2%

Fixed interest

0%

1s
t

P
2n eriodP d
3r eriod
P d
4t eriohP d
5t erioh
P d
6t eriohP d
7t erioh
P d
8t eriohP d
9t eriohd
10 Perth iod11 Perth iod12 Perth iod13 Perth iod14 Perth iodPerio
d0Floating interest* LTV( based on acquisition price) ＝Total interest-bearing liabilities / Total acquisition price ofproperties held at the end of the Fiscal Period■ Maturity (Weighted average of the outstanding loans)

2.24 years

2.41 years

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

32

Status of Interest-bearing Liabilities (2)Repayment
Repayment Dates
Dates

Debt
Debt Cost
Cost Rate*
Rate* (annualized)(annualized)(Million Yen)

6.0%

20,00018,0001,000

5.0%

16,0003,500
14,000

4.0%

12,000

8,500

2,000
8,900

10,0003.0%
19,000 2,500

8,000

16,810

6,000

2.0%
6,000
2,000

5,000 1,600

6,500
1,950

4,000
2,500
4,000

2,000

3,400

3,500

14th FP15th FP16th FP17th FP18th FP19th FP20th FP21th FP22th FP23st FP24th FP25st FP
Nov. May. Nov. May. Nov. May. Nov. May. Nov. May. Nov. May.
2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018

28th FP
Nov.
2019

3,000
1,000

2,000 2,000◇

Expected Debt Cost Rate

1.0%

6,050

5,000

Debt Cost Rate

1,700

0.0%

0

1s
tF
2n P
d
F
3r P
d
F
4t P
h
F
5t P
h
F
6t P
h
F
7t P
h
F
8t P
h
F
9t P
h
10 FP
th
11 FP
th
12 FP
th
13 FP
th
14 FP
th
15 FP
th
16 FP
th
FP

4,481

◆

* Debt Cost Rate (annualized): (Interest Expense + Financial Related Expenses) / Interest-bearing Liabilities)

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

33

Status of Interest-bearing Liabilities (3)█ List of Interest-bearing Liabilities

1,500.00 Fixed

0.85%

12/5/21

17/5/31

Shinsei Bank, Ltd.(*)

2,000.00 Fixed

0.75%

12/5/21

16/5/31

13/1/10Mizuho Corporate Bank, Ltd. (*)

2,000.00 Fixed

0.67%

12/5/21

15/5/29

10/2/26

13/2/28

The Bank of Yokohama,Ltd.(*)

500.00 Fixed

0.67%

12/5/21

15/5/29

T+1.00%10/2/26

13/2/28

The Shizuoka Bank, Ltd

2,000.00 Fixed

0.52%

12/8/31

15/8/315,000.00 Fixed

0.98%

11/6/30

13/6/28

Sumitomo Mitsui Trust Bank, Limited(*)

3,400.00 Fixed

0.69%

12/9/18

18/2/28

Sumitomo Mitsui Trust Bank, Ltd.(*)

5,000.00 Fixed

0.87%

11/7/8

13/7/8Development Bank of Japan Inc

2,550.00 Fixed

0.96%

12/9/18

17/8/31

The Bank of Fukuoka, Ltd.(*)

1,000.00 Fixed

0.87%

11/7/8

13/7/8

Sumitomo Mitsui Banking Corporation(*)

1,500.00 Fixed

0.71%

12/9/18

17/8/31

Shinsei Bank, Ltd.

2,000.00 Float

T+0.90%10/9/2

13/7/31

Mizuho Corporate Bank, Ltd.(*)

1,000.00 Fixed

0.71%

12/9/18

17/8/31

The Bank of Fukuoka, Ltd.

2,000.00 Float

T+0.85%

10/9/30

13/9/30

The Hiroshima Bank, Ltd.(*)

1,000.00 Fixed

0.79%

12/9/18

17/8/31

ORIX Bank Corporation.

1,500.00 Float

T+0.85%

10/9/30

13/9/30

Shinsei Bank, Ltd.

1,000.00 Float

T+0.55%

11/5/25

13/11/29

1,500.00 Fixed

0.61%

12/9/18

15/8/31
15/8/31

Interest
Rat e (%)

Date ofadvanceDue date

ORIX Bank Corporation.

1,000.00 Float

T+0.40%11/7/8

Aozora Bank, Ltd.

3,500.00 Float

T+1.00%985.00 Float

Kansai Urban Banking Corporation.

Current maturities of long term borrowings

Lender

The Kagawa Bank Ltd.

Total current maturities of long term borrowings

Long term borrowings

Mizuho Trust and Banking Co., Ltd.(*)

BalanceType(million yen)

TermLong term borrowings(As of November 30, 2012)

Sumitomo Mitsui Banking Corporation(*)
The Musashino Bank, Ltd.(*)

22,985.00

The 77 Bank, Ltd.(*)

1,000.00 Fixed

0.61%

12/9/18

Resona Bank, Limited.(*)

2,000.00 Fixed

1.04%

11/3/18

14/3/18

Sumitomo Mitsui Trust Bank, Limited(*)

1,950.00 Fixed

0.60%

12/11/30

18/2/28

Resona Bank, Limited.(*)

2,000.00 Fixed

1.04%

11/3/25

14/3/18

The Gunma Bank, Ltd. (*)

1,000.00 Fixed

0.57%

12/11/30

15/11/30

Sumitomo Mitsui Banking Corporation.(*)

2,000.00 Fixed

0.96%

11/3/25

14/3/25TAIYO LIFE INSURANCE COMPANY

300.00 Fixed

0.60%

12/11/30

15/11/30

Mizuho Corporate Bank, Ltd. (*)

4,900.00 Fixed

0.77%

11/9/30

14/3/31

Nippon Life Inslance Company

300.00 Fixed

0.60%

12/11/30

15/11/30

Mitsubishi UFJ Trust and Banking Corporation.

3,000.00 Fixed

0.96%

11/9/30

14/3/31

Total long-term borrowings

80,600.00

Total borrowings

103,585.00

The Gunma Bank, Ltd.(*)

1,000.00 Fixed

0.77%

11/9/30

14/3/31

Sumitomo Mitsui Banking Corporation.(*)

13,500.00 Fixed

0.94%

11/7/8

14/7/8Mizuho Trust and Banking Co., Ltd.(*)

3,000.00 Fixed

0.97%

11/7/8

14/7/8

Aozora Bank, Ltd.(*)

1,500.00 Fixed

0.97%

11/7/8

14/7/8

Shinsei Bank, Ltd.(*)

1,000.00 Fixed

0.97%

11/7/8

14/7/8Resona Bank, Limited.(*)

3,000.00 Fixed

0.88%

11/8/31

15/2/27

Development Bank of Japan, Inc.

3,000.00 Fixed

1.09%

11/9/30

15/3/31

Shinsei Bank, Ltd.(*)

2,000.00 Fixed

0.89%

11/9/30

15/3/31Development Bank of Japan, Inc.

1,700.00 Fixed

1.02%

12/5/11

17/5/10Development Bank of Japan, Inc.

6,500.00 Fixed

1.02%

12/5/21

17/5/22

Sumitomo Mitsui Banking Corporation.(*)

4,000.00 Fixed

0.86%

12/5/21

Sumitomo Mitsui Trust Bank, Ltd.(*)

3,000.00 Fixed

0.85%

12/5/21

Note: Fixed Interest Rate is rounded to the second decimal.
（*）The interest rate of this loan was changed from floating rate to fixed rate by concluding the swap
agreement and described as fixed interest rate.

█ Investment Corporation Bonds(As of November 30, 2012)
TypeInterest
Rate
(%)

Long
No. 1 Unsecured and Subordinated-term

3,500.00 Float

T+2.40%*17/5/31

WithinNo. 2 Unsecured Investment Corporation
1 year*5,000.00 Fixed

17/5/31

Total investment corporate bonds

8,500.00

Term

LenderBalance(million yen)

1.87%

Date ofadvanceDue date

09/9/17

19/9/17

10/6/24

13/6/24

Note: The interest rate will change to to 6 month TIBOR + 390 bps, from the day after the tenth payment
date until maturity, due to 5 year lapse step-up floating interest.
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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.
34

Status of Interest-bearing Liabilities (4) – Total Borrowing from Financial Institutions The
The 1313thth Fiscal
Fiscal Period
Period (ended(ended May
May 2012)
2012)
Balance(million yen)

Name of Financial Institution

The
4thth Fiscal
The 114
Fiscal Period
Period (ended(ended November
November 2012)2012)
Name of Financial Institution

Share

Balance(million yen)

Share

Sumitomo Mitsui Banking Corporation.

24,387

21.9%

Sumitomo Mitsui Banking Corporation.

21,50019.2%

Development Bank of Japan Inc.

13,787

12.4%

Development Bank of Japan Inc.

13,75012.3%

Sumitomo Mitsui Trust Bank, Limited

13,38312.0%

Sumitomo Mitsui Trust Bank, Limited

13,350

11.9%

Shinsei Bank, Ltd.

8,000

7.2%

Shinsei Bank, Ltd.

8,000

7.1%

Resona Bank, Limited

7,000

6.3%

Mizuho Corporate Bank, Ltd.

7,900

7.0%

Mizuho Corporate Bank, Ltd.

6,900

6.2%

Resona Bank, Limited

7,000

6.2%

Aozora Bank, Ltd.

5,000

4.5%

Aozora Bank, Ltd.

5,000

4.5%

Kansai Urban Banking Corporation

5,000

4.5%

Kansai Urban Banking Corporation

5,000

4.5%

Mizuho Trust and Banking Co., Ltd.

4,500

4.0%

Mizuho Trust and Banking Co., Ltd.

4,500

4.0%

Mitsubishi UFJ Trust and Banking Corporation

3,000

2.7%

Mitsubishi UFJ Trust and Banking Corporation

3,000

2.7%

the Bank of Fukuoka, Ltd.

3,000

2.7%

the Bank of Fukuoka, Ltd.

3,000

2.7%

ORIX Bank Corporation

2,500

2.2%

ORIX Bank Corporation

2,500

2.2%

The Gunma Bank, Ltd.

1,981

1.8%

The Gunma Bank, Ltd.

2,000

1.8%

The Shizuoka Bank, Ltd

1,000

0.9%

The Shizuoka Bank, Ltd

2,000

1.8%

The 77 Bank, Ltd.

985

0.9%

The Hiroshima Bank, Ltd.

1,000

0.9%

The Kagawa Bank, Ltd.

985

0.9%

The 77 Bank, Ltd.

1,000

0.9%

TAIYO LIFE INSURANCE COMPANY

981

0.9%

The Musashino Bank, Ltd.

1,000

0.9%

The Bank of Yokohama,Ltd.

500

0.4%

The Kagawa Bank, Ltd.

981

0.9%

Investment Corporate Bond

8,500

7.6%

The Bank of Yokohama,Ltd.

500

0.4%

111,391

100.0%TAIYO LIFE INSURANCE COMPANY

300

0.3%

Nippon Life Inslance Company

300

0.3%

Investment Corporate Bond

8,500

7.6%

112,081100.0%

Total

Note: Balance is rounded down to less than million yen.
Indicates new lenders in the 14th FP.

Total

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

35

Unitholders█ Unitholders’ Share by Investor Type

Investor Type

Individuals

13th Fiscal
PeriodNumber ofUnit
37,40914th Fiscal
PeriodNumber ofUnit
34,742█ List of Top 10 Investors
Change ofUnit-2,667

148,487

15,00537.52%

Commercial Bank

0

0

0

0.00%

Regional Bank

1,602

1,452

-150

0.37%

Trust Bank

130,789

145,839

15,05036.85%

Life Insurance

Investor Name

1

Daiwa Investment Management Inc

128,905

128,905032.57%

2

Japan Trustee Services Bank, Ltd.
(Trust Account)

70,15982,70812,54920.90%

3

Daiwa Securities Group Inc.

51,89351,8930

13.11%

4

Trust & Custody Services Bank, Ltd.
(Securities Investment Trust Account)

23,67423,769

95

6.01%

5

The Nomura Trust and Banking Co,.
Ltd. (Investment Trust Account)

24,574

20,150-4,424

5.09%

8.78%

133,482

Rate*

No.
Rate*

Financial Institutions

13th Fiscal 14th Fiscal
Change ofPeriodPeriodUnit
Number of Number of
Unit
Unit

607

498

-109

0.13%

0

0

0

0.00%

6

The Master Trust Bank of Japan, Ltd.
(Investment Trust Account)

10,74019,212

8,472

4.85%

484

698

214

0.18%

7

Nomura Bank (Luxembourg) S.A.

4,428

7,359

2,931

1.86%

Other Domestic Corporation

131,832

183,787

51,95546.43%

8

Individuals

2,917

2,520

-397

0.64%

Foreigner

38,83327,016-11,8176.83%
9State Street Bank and Trust Company
505104

1,061

1,668

607

0.42%

10

State Street Bank and Trust Company
505223

1,423

1,593

170

0.40%

Non-life Insurance
Other Financial Institutions

Securities
Total

54,242

1,766-52,4760.45%

395,798

395,798

0100%（*）Rounded to the second decimal.

（*）Rounded to the second decimal.
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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

36

Activities in the 15th Fiscal Period█

Internal Growth → “Bonji-Tettei”「Accomplishing ordinary tasks thoroughly and carefully enables us to achieve extraordinary results.」¾ Work on improving quality of acquisitions on new properties.
¾
¾
¾

█

External Growth →
¾
¾
¾

█

Strengthen collaboration with various agents, implement prompt and smooth leasing and enhance property recognition with up-to-date
information.
Prevent cancellations by strengthening relations with existing tenants.
Implement strategic renewal investments to enhance existing property value , reduce cost and strengthen collaboration with Daiwa
Securities Group.
Active investment for competitive properties after thorough selection
After consideration of the acquisitions in the 15th Fiscal Period, expected LTV (based on acquisition price) will be 38.7%. Continue
expeditious acquisition of highly-competitive properties.
Aim for early achievement of the medium-term target total acquisition price of 350 billion yen (expected LTV (based on acquisition price):
42.1%).
Strive to improve existing portfolio by acquiring relatively-new and highly-competitive properties.

Financial Strategy →Continue to strengthen financial structure and reduce debt costs¾

Strengthen ties with our financial institutions for further reduction of debt costs.

¾

Increasingly build on bank formation.

¾

Reduce future interest rate risks by controlling debt costs, lengthening maturities and fixing interest rates.

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

37Section 5
AppendixSummary of Results for the 14th Fiscal Period (1) - Balance Sheet █ Comparison with Results of the 13th Fiscal Period

13th Fiscal Period
As of May.31, 2012
Million Yen
17,432Current Assets

(%)
5.4%

Million Yen
16,64913th Fiscal Period
As of May.31, 2012(%)
Current Liabilities

5.1%

Cash and Deposits

11,504

11,336

Operating Accounts Payables

Cash and Deposits in Trust

5,296

4,710

Other Current Assets

631

602
94.9%

261

258

93.9%

Advances Received

876

831

Other Current Liabilities

443

294

248,877

22

353

Other Investments and Other Assets
Deferred Assets

2,720

Total Assets

0.8%

2,713

2,719

531

113

113

368

387

21

29
0.0%

25
325,315

16
325,665

30.7%

0.8%

Long-term Loans Payable

80,60080,600

6,024

6,457

4,592

4,025

0.2%

Tenant Leasehold and Security Deposits
Tenant Leasehold and Security Deposits in
Trust
Other Fixed Liabilities

13

52

Total Liabilities

0.0%
100.0%

Unitholders' equity
Unappropriated Retained Earnings
Valuation, Translation Adjustments and Others
Total Net Assets
Total Liabilities and Net Assets

9.2%

94,6353,500

16100.0%

99,730
8,500

5
0.2%

Fixed Liabilities

(%)

5,000

Investment Corporation Bonds

2,713

6
502

25

Investment Corporation Bond Issuance Costs

22,981

305,748247,785

Other Intangible Fixed Assets

22,291

308,999

Land and Others (including Trust Property)

Investments and Other Assets
Leasehold and Security Deposits Paid in
TrustLong-term Prepaid Expenses

546

93.6%

56,517

Leasehold Rights and Leasehold Rights in Tru

911

94.6%

56,826

Intangible Fixed Assets

7.6%

Million Yen
29,912

304,634

Building and Others (including Trust Property)
Other Tangible Fixed Assets(%)

307,858

Liabilities

Tangible Fixed Assets

Million Yen
24,78514th Fiscal Period
As of Nov.30, 2012

Current Portion of Long-term Loans Payable
Current Portion of Investment Corporation
Bond
Accounts Payables-Other

Net Assets

Fixed Assets

Assets14th Fiscal Period
As of Nov.30, 2012

124,515

38.3%

29.1%

124,547

198,780

198,780

2,021

2,369

38.2%

-32

-2
200,800

61.7%

201,11761.8%

325,315100.0%

325,665

100.0%

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

39

Summary of Results for the 14th Fiscal Period (2) - Income Statement █ Comparison with Results of the 13th Fiscal Period█ Comparison with the 14 Fiscal Period Forecasts

Unit: Million Yen (excluding the number of investment units and cash dividends)

13th Fiscal Period
As of May.31, 2012
Number of Properties (at period-end)
37
Effective Number of Days of Investment
183

14th Fiscal Period
As of November, 2012
38
183

Unit: Million Yen (excluding the number of investment units and cash dividends)

14th Period Forecast( Jul. 13, 2012)
Number of Properties (at period-end)
37
Effective Number of Days of Investment
183

Change14th Fiscal Period(Nov. 30, 2012)
38
183

ChangeOperating Revenues (A)

7,431

7,566

134

Operating Revenues (A)

7,413

7,566

152

Gain on Sale

―

―

―

Gain on Sale

―

―

―

Operating Expenses (B)

4,341

4,419

+ 77

Operating Expenses (B)

4,439

4,419

-20

2,314

2,296

-18

Depreciation
Gain and Loss from Rental Operations(excluding gain on sale)

1,304

1,305

1

3,794

3,964

169

Expenses related to Rental Business(excluding depreciation)

2,165

2,296

+ 130

Depreciation

Expenses related to Rental Business(excluding depreciation)

1,367

1,305

-61

Gain and Loss from Rental Operations(excluding gain on sale)

3,898

3,964

65

Operating Income (A-B)

3,090

3,146

56

Operating Income (A-B)

2,973

3,146

173

Non-operating Expenses

1,080

787

-292

Non-operating Expenses

794

787

-7

Interest Expense (including cap amortizatio

800

631

-168

Interest Expense

645

631

-14

Borrowing expenses

266

142

-124

Borrowing expenses

135

142

7

2,022

2,364

+342

Ordinary Income

2,179

2,364

185

Extraordinary Income

32

5

-27

Extraordinary Income

―

5

5

Extraordinary Expenses

32 ―

-32

Extraordinary Expenses――

Net Income

Ordinary Income

Net Income

2,021

2,369

+347

Investment Units Issued and Outstanding

395,798

395,798―

Dividend per Unit (Unit: Yen)

5,107

5,986

+ 879

―

2,177

2,369

192

Investment Units Issued and Outstanding

395,798

395,798―

Dividend per Unit (Unit: Yen)

5,500

5,986

+ 486

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

40

Forecasts (the 15th and 16th Fiscal Period)█ Forecast for the 15th and 16th Fiscal Period
Unit: Million Yen (excluding the number of investment units and cash dividends)

Number of Properties (at period-end)
Effective Number of Days of Investment

14th Period(Nov. 30, 2012)38
183

15th Period Forecast 16th Period Forecast(May. 31, 2013)(Nov. 30, 2013)
41
41
182
183

Operating Revenues (A)

7,566

7,605

7,966

Gain on Sale

―

―

―

Operating Expenses (B)

4,419

4,381

4,618

2,296

2,257

2,461

1,305

1,286

1,302

Gain and Loss from Rental Operations(excluding gain on sale)

3,964

4,061

4,202

Operating Income (A-B)

3,146

3,224

3,348

Non-operating Expenses

787

748

753

Interest Expense

631

601

607

Borrowing expenses

142

137

137

2,364

2,475

2,594

Extraordinary Income

5

―

―

Extraordinary Expenses

―

―

―

2,369

2,473

2,592

Investment Units Issued and Outstanding

395,798

395,798

395,798

Dividend per Unit (Unit: Yen)

5,986

6,250

6,550

Expenses related to Rental Business(excluding depreciation)
Depreciation

Ordinary Income

Net Income* 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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

41

Major Financial Data
Item
Number of days of investment
Number of properties at end of period
Occupancy rate at end of period

Unit

10th Period 11th Period 12th Period 13th Period 14th Period

Day

183

182

183

183

183

Property

33

35

36

37

38

%

95.9

95.4

92.4

94.3

96.4

Average acquisition priceMillion Yen

274,167

281,535

306,492

311,607313,923

NOI (after deduction of gain on sale)

Million Yen

4,465

4,873

5,482

5,265

5,270

Funds from operation (FFO)

Million Yen

2,518

2,734

3,114

3,388

3,675

Return on asset (ROA)

%

0.9

1.1

1.1

1.2

1.4

Return on equity (ROE)

%

1.3

1.5

1.8

2.0

2.4

Capital adequacy ratio at end of period

%

67.9

67.1

62.0

61.7

61.8

Loan-to-Value (LTV) at end of period

%

28.1

28.9

34.0

34.2

34.4

 NOI

Rent revenue + Other lease business revenue –Expenses related to rent business + Depreciation
 FFO

Net Income + Depreciation – Gain on Sale
 ROA

Annualized Net Income / Total Assets
 ROE

Annualized Net Income / Total Investments
 Loan-to-Value (LTV) at end of Fiscal Period

Interest-bearing liabilities at end of Fiscal Period / Total
assets at end of 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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

42

Analyses of Tenants
Major
Major Tenants
Tenants Top
Top 1010 List
List

Tenant Name

Not disclosed *Fields Corporation

Property

Daiwa Tsukishima%% ShareShare ofof Industries
Industries ofof Top
Top 100
100 Tenant
TenantLeased Space ** % of Total Leased(m2)Space ***

6,379.88(As of November 30, 2012)

3.1%
Foods
3.6%
Construction
3.8%

E SPACE TOWER

6,336.26

3.1%

Trend Micro Incorporated

Shinjuku Maynds Tower

6,309.84

3.1%

Not disclosed *Daiwa Kayabacho Build.

5,899.11

2.9%

Banks
5.1%

Not disclosed *Shinjuku Maynds Tower

5,337.60

2.6%

Retail Trade
5.2%

Daiwa Onarimon

5,100.06

2.5%

EMC Japan

Shinjuku Maynds Tower

4,980.78

2.4%

Sekisui House, Ltd.

Shinjuku Maynds Tower

4,498.57

2.2%

Not disclosed *Shinjuku Maynds Tower

4,316.90

2.1%

Not disclosed *Daiwa Sarugakucho

3,657.43

1.8%-

52,816.43

26.2%

UCC Holdings Co., Ltd.

Total

Other
14.2%

Precision
Instruments
5.2%
wholesale
8.1%

Services
32.5%

Information &Communication
14.4%
Real Estate
8.1%* The leased space of top 100 tenant covers 70.7% of total leased space as of theend of the 14th Fiscal Period.
** Industries are categorized according to TSE’s 33 industry group.

* Not disclosed due to tenant's request.
*** Leased spaces of the tenants in Shinjuku Maynds Tower are described as the figure equivalent to 6/7, ownership % of the Investment Corporation.
*** Rounded down to 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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

43

Appraisal Value at End of Fiscal Period (1)(Unit: Million Yen)

Property Name

Appraisal Value at
End of 13th Period

Appraisal Value at
End of 14th Period(May 31, 2012)(Nov. 30, 2012)

Compared to
End of 13th Period * Acquisition
Price

Difference

ChangeCompared to
Acquisition Price
Difference

Cap Rate

Change 13th Period 14th Period

Daiwa Ginza

14,00014,300+300

2.1%

14,100

+200

1.4%

4.5%

4.4%

Daiwa Ginza Annex

2,960

3,010

+50

1.7%

3,050

-40

-1.3%

4.4%

4.3%

Daiwa Shibaura

7,400

7,470

+70

0.9%

8,265

-795

-9.6%

5.1%

5.0%

Daiwa Minami Aoyama

3,930

3,950

+20

0.5%

4,550

-600

-13.2%

4.8%

4.7%

Daiwa Sarugakucho
**

2,720

2,980

+260

9.6%

3,190

-210

-6.6%

5.3%

5.2%

Daiwa A Hamamatsucho

2,870

2,830

-40

-1.4%

2,865

-35

-1.2%

4.8%

4.7%

Daiwa Jingumae

1,930

1,990

+60

3.1%

2,800

-810

-28.9%

4.7%

4.6%

Daiwa Shibadaimon

2,620

2,620

-

0.0%

2,578

+42

1.6%

4.7%

4.6%

Daiwa Misakicho

2,470

2,470

-

0.0%

2,346

+124

5.3%

5.1%

5.1%

Daiwa Shimbashi 510

2,320

2,340

+20

0.9%

2,080

+260

12.5%

5.0%

4.9%

BPS Square

1,510

1,430

-80

-5.3%

1,560

-130

-8.3%

5.2%

5.2%

Daiwa Tsukiji

1,420

1,420

-

0.0%

1,240

+180

14.5%

5.1%

5.1%

Daiwa Tsukiji 616

2,400

2,320

-80

-3.3%

2,440

-120

-4.9%

5.0%

4.9%

Daiwa Tsukishima Bldg.

7,660

7,810

+150

2.0%

7,840

-30

-0.4%

5.2%

5.1%

Nihombashi MS Bldg.

2,340

2,380

+40

1.7%

2,520

-140

-5.6%

4.9%

4.8%

Daiwa Azabudai

1,740

1,740

-

0.0%

1,600

+140

8.8%

4.8%

4.7%

Daiwa Shibuya SS

3,790

3,710

-80

-2.1%

3,930

-220

-5.6%

4.8%

4.7%

Daiwa Nihombashi Honcho

6,780

6,790

+10

0.1%

7,420

-630

-8.5%

4.9%

4.8%

Daiwa Ginza 1-chome

4,270

4,340

+70

1.6%

4,620

-280

-6.1%

4.7%

4.6%

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

44

Appraisal Value at End of Fiscal Period (2)(Unit: Million Yen)

Property Name

Appraisal Value at
End of 13th Period

Appraisal Value at
End of 14th Period

Compared to
End of 13th Period(May 31, 2012)(Nov. 30, 2012)

Difference

ChangeAcquisition*
Price

Compared to
Acquisition Price
Difference

Cap Rate

Change 13th Period 14th Period

Daiwa Kyobashi

2,900

2,930

+30

1.0%

3,460

-530

-15.3%

4.9%

4.8%

Sunline Building No. 7

2,170

2,110

-60

-2.8%

2,680

-570

-21.3%

4.8%

4.7%

Daiwa Onarimon

13,00013,000-0.0%

13,860

-860

-6.2%

4.7%

4.6%

Shinjyuku Maynds Tower

108,000

108,000-

0.0%

133,800-25,800-19.3%

4.0%

4.0%

SHIBUYA EDGE

3,940

3,930

-10

-0.3%

5,900

-1,970-33.4%

4.6%

4.5%

Daiwa Kodemmacho

1,900

1,910

+10

0.5%

2,460

-550

-22.4%

5.2%

5.1%

Daiwa Jimbocho

2,760

2,730

-30

-1.1%

4,150

-1,420-34.2%

5.1%

5.1%

Daiwa Nishishimbashi

4,860

4,900

+40

0.8%

5,000

-100

-2.0%

4.9%

4.8%

Daiwa Kudan

2,820

2,730

-90

-3.2%

4,000

-1,270-31.8%

4.9%

4.9%

Daiwa Kayabacho Building

6,110

6,260

+150

2.5%

5,600

+660

11.8%

4.5%

4.4%

Jimbocho Place

3,660

3,660

-

0.0%

3,550

+110

3.1%

4.5%

4.4%

E SPACE TOWER
Nihonbashi Hongokucho Tosei
Build
Daiwa Kinshicho

26,00026,000-0.0%

24,000+2,000

8.3%

4.3%

4.4%

1,810

1,810

0

0.0%

1,721

+89

5.2%

5.1%

5.0%

3,220

3,300

+80

2.5%

3,653

-353

-9.7%

5.4%

5.3%

Daiwa Higashi-Ikebukuro

3,510

3,510

-

0.0%

2,958

+552

18.7%

5.2%

5.1%

Benex S-3

3,200

3,200

-

0.0%

4,950

-1,750-35.4%

5.8%

5.7%

Daiwa Shinagawa North

5,690

5,690

-

0.0%

7,710

-2,020-26.2%

5.2%

5.1%

－

1,910

-

0.0%

1,650

+260

15.8%

0.0%

4.8%

2,850

2,850

-

0.0%

4,810

-1,960-40.7%

5.5%

5.5%

273,530

276,330

+890*

0.3%

314,906-38,576-12.3%--

Westpark Osaki
Daiwa Minami-Senba
Total* ThisThe document
figure in thecolumn“Total”of theto Endof 13th period/ Difference”
excludesdifference
andofthechangeratio
is notmaterial
disclosedin “Compared
compliance with
the Financial
Instruments
and Exchange
Lawtheor anyregulation
similarnaturethFP.
in, northeisproperties
in the 14
it intendedacquired
for the purposesof solicitation.
Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

45

Portfolio Performance Summary (1) (13th-14th Fiscal Period Results by Property)
Daiwa Ginza

Daiwa Ginza Annex

Daiwa Shibaura

Daiwa Minami Aoyama

Daiwa Sarugakucho

Daiwa A Hamamatsucho

Daiwa Jingumae

Property Name

14,100
3,050
8,265
4,550
3,190
2,865
2,800
13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period
Book Value (million yen)
13,722
13,658
2,933
2,915
8,132
8,114
4,487
4,476
3,172
3,289
2,808
2,799
2,746
2,736
Appraisal Value (million yen)
14,00014,300
2,960
3,010
7,400
7,470
3,930
3,950
2,720
2,980
2,870
2,830
1,930
1,990
Occupancy Rate (%)
86.9
94.3
100.0
100.0
98.3
98.8
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
PML (%) (*6)
9.17
9.17
7.46
7.46
5.09
5.09
12.79
12.79
9.79
9.79
6.03
6.03
12.01
12.01
Property Management Company
Best Property
Best Property
Xymax Axis
Best Property
Property Partners
Best Property
Best Property
Number of operating days
183
183
183
183
183
183
183
183
183
183
183
183
183
183
(1) Property-related Revenues
322,919
327,239
64,44891,621
264,758
240,845
105,122
124,846- (※7)- (※7)
137,785
131,185
56,151
59,173
Rent (incl. common service fees)
322,919
327,239
64,44891,621
261,958
236,974
105,122
124,846- (※7)- (※7)
137,785
131,185
56,151
59,173
Other Revenues (*2)
0
0
0
0
2,800
3,871
0
0
- (※7)- (※7)0000(2) Property-related Expenses
90,511
101,051
22,48020,19764,92570,94929,367
27,044- (※7)- (※7)
59,42760,762
19,292
16,713Administrative Expenses
15,09018,381
3,863
3,761
12,37318,366
3,974
3,623- (※7)- (※7)
8,791
9,373
6,050
2,919
Utility Charges
26,99332,936
5,204
5,917
22,41022,5537,306
9,519- (※7)- (※7)
9,110
10,0684,764
5,773
Property Management Fees
4,349
5,551
1,230
1,243
3,859
3,564
1,756
1,640
- (※7)- (※7)
2,036
1,962
1,200
1,397
Property-related Taxes (*3)
26,361
27,6838,810
9,118
20,58819,232
11,883
11,573- (※7)- (※7)
9,208
8,657
6,602
6,354
Non-life Insurance Costs
456
457
111
110
455
450
165
163
- (※7)- (※7)
210
208
81
82
Repair Expenses
5,247
3,021
3,260
45
5,237
6,780
4,281
524
- (※7)- (※7)
668
1,092
503
129
Other Expenses
12,011
13,01800
0
0
00- (※7)- (※7)
29,40029,4008957(3) NOI (＝(1)-(2)) (*5)
232,407226,187
41,96871,424
199,833
169,896
75,75497,801-20,696
96,69078,35870,42336,85842,460
Annualized NOI
463,545
451,139
83,708142,458
398,574
338,863
151,095
195,068-41,280
192,852
156,289
140,461
73,51584,688NOI Yield (*4)
3.4%
3.3%
2.9%
4.9%
4.9%
4.2%
3.4%
4.4%
-1.3%
5.9%
5.6%
5.0%
2.7%
3.1%
Depreciation and Amortization
68,88969,341
18,02318,03025,061
25,371
11,377
11,391- (※7)- (※7)
11,56911,904
10,080
10,135(Reference) Proceeds for Restoration and Repair Work
0
0
0
0
501
2,816
0
0
- (※7)- (※7)
00
0
0Proceed s from Amo rtiza ti on of L eashol d and Security Depo si ts
0
0
0
0
0
0
0
0
- (※7)- (※7)
00
00Profits from property-related activities (*1)

Acquisition Price (million yen)(*1) For profits from property-related activities, actual results (excluding Other Revenues and Property-related Taxes) are used and displayed by rounding down to the nearest thousand yen.
(*2) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*3) Fixed property taxes, city planning taxes and depreciable asset taxes recorded in Property-related Taxes are calculated by converting the actual amount to the number of operating days.
(*4) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(*5) NOI in this table is calculated by adjusting the Property-related Taxes for the “NOI (after deduction of gain on sale)” aforementioned in the “Major Financial Data” so the figures do not match.
(*6) NKSJ Risk Management, Inc. has prepared for the PML. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (December 2012).
(*’7) Not disclosed due to tenant's request.

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

46

Portfolio Performance Summary (2) (13th-14th Fiscal Period Results by Property)
Daiwa Shibadaimon

Daiwa Misakicho

Daiwa Shimbashi 510

BPS Square

Daiwa Tsukiji

Daiwa Tsukiji 616

Daiwa Tsukishima Bldg.

Property Name

2,578
2,346
2,080
1,560
1,240
2,440
7,840
13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period
Book Value (million yen)
2,447
2,433
2,219
2,205
2,134
2,132
1,368
1,406
1,212
1,207
2,309
2,291
7,214
7,148
Appraisal Value (million yen)
2,620
2,620
2,470
2,470
2,320
2,340
1,510
1,430
1,420
1,420
2,400
2,320
7,660
7,810
Occupancy Rate (%)
78.0
100.0
100.0
100.0
99.7
99.7
0.0
0.0
100.0
100.0
89.7
100.0
100.0
100.0
PML (%) (*6)
2.99
2.99
6.68
6.68
8.13
8.13
7.67
7.67
9.70
9.70
7.69
7.69
10.89
10.89
Property Management Company
Best Property
Best Property
Property Partners
MS Building Support
Xymax Axis
MS Building Support
Property Partners
Number of operating days
183
183
183
183
183
183
183
183
183
183
183
183
183
183
(1) Property-related Revenues
64,147
65,204- (※- (※86,138
7)85,902- (※- 7)(※51,634
7)
55,27877,72071,879286,370
287,081
Rent (incl. common service fees)
64,147
65,204- (※- 7)(※
86,138
7)85,902- (※- (※
7)
51,634
7)
52,06377,72071,879286,370
287,081
Other Revenues (*2)
0
0
- (※
- (※
7) 0
0
- (※
- (※
7)
7) 0
3,215
0
0
0
0
(2) Property-related Expenses
21,776
20,493- (※- (※7)
53,020
7)
19,210- (※- (※7)
12,687
7)
14,311
21,94723,871
52,997
67,203Administrative Expenses
8,879
5,641
- (※
- (※
6,005
7)
3,938
- (※
- (※
7)
2,326
7)
2,506
4,944
7,089
10,205
8,528
Utility Charges
5,209
7,237
- (※
- (※
7)
5,612
7)
7,364
- (※
- (※7)
3,192
7)
3,411
6,790
7,404
24,11730,157
Property Management Fees
1,225
1,200
- (※
- (※
1,289
7)
1,289
- (※
- (※7)
1,200
7)
1,238
1,394
1,229
4,201
4,305
Property-related Taxes (*3)
6,297
6,243
- (※
- (※7)
5,667
7)
5,612
- (※
- (※ 7)
4,150
7)
3,837
7,214
6,750
13,802
13,269Non-life Insurance Costs
128
126
- (※
- (※
1257)
124
- (※
- (※ 7)
627)
61
139
137
338
334
Repair Expenses
36
45
- (※
- (※ 7)34,2597)819- (※- (※ 7)
1,7567)
3,256
1,433
1,259
331
10,608Other Expenses00- (※- (※ 7)
617)
61
- (※
- (※ 7)
07)
0
31
0
0
0
(3) NOI (＝(1)-(2)) (*5)
42,371
44,711
65,521
68,44633,11866,692
14,250-11,619
38,94640,96655,77348,007233,373
219,878
Annualized NOI
84,51089,178130,685
136,519
66,055133,019
28,422-23,176
77,68081,708111,241
95,752
465,472438,555
NOI Yield (*4)
3.5%
3.7%
5.9%
6.2%
3.1%
6.2%
2.1%
-1.6%
6.4%
6.8%
4.8%
4.2%
6.5%
6.1%
Depreciation and Amortization
14,85914,921- (※- (※ 7)
6,484 7) 6,568- (※- (※ 7) 7,048 7) 7,115
20,484
20,57067,912
67,949(Reference) Proceeds for Restoration and Repair Work00- (※- (※ 7)
0 7)
0
- (※
- (※
7)
0 7)
0
0
0
0
0
Proceed s from Amo rtiza ti on of L eashol d and Security Depo si ts
0
0
- (※
- (※
7)
0 7)
0
- (※
- (※
7)
0 7)
0
0
0
0
0
Profits from property-related activities (*1)

Acquisition Price (million yen)(*1) For profits from property-related activities, actual results (excluding Other Revenues and Property-related Taxes) are used and displayed by rounding down to the nearest thousand yen.
(*2) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*3) Fixed property taxes, city planning taxes and depreciable asset taxes recorded in Property-related Taxes are calculated by converting the actual amount to the number of operating days.
(*4) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(*5) NOI in this table is calculated by adjusting the Property-related Taxes for the “NOI (after deduction of gain on sale)” aforementioned in the “Major Financial Data” so the figures do not match.
(*6) NKSJ Risk Management, Inc. has prepared for the PML. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (December 2012).
(*’7) Not disclosed due to tenant's request.

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

47

Portfolio Performance Summary (3) (13th-14th Fiscal Period Results by Property)
Nihombashi MS Bldg.

Daiwa Azabudai

Daiwa Shibuya SS

Daiwa Nihombashi Honcho

Daiwa Ginza 1-chome

Daiwa Kyobashi

Sunline Building No. 7

Property Name

2,520
1,600
3,930
4,620
3,460
2,680
7,420
13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period
Book Value (million yen)
2,502
2,490
1,563
1,556
3,829
3,814
7,168
7,152
4,545
4,541
3,369
3,352
2,643
2,640
Appraisal Value (million yen)
2,340
2,380
1,740
1,740
3,790
3,710
6,780
6,790
4,270
4,340
2,900
2,930
2,170
2,110
Occupancy Rate (%)
100.0
100.0
100.0
80.2
87.0
100.0
85.2
97.6
96.9
98.8
88.6
100.0
88.4
100.0
PML (%) (*6)
7.84
7.84
9.57
9.57
8.67
8.67
8.49
8.49
10.16
10.16
10.04
10.04
8.62
8.62
Property Management Company
Best Property
Best Property
MS Building Support
Xymax Axis
Xymax Axis
Best Property
Best Property
Number of operating days
183
183
183
183
183
183
183
183
183
183
183
183
183
183
(1) Property-related Revenues
75,36881,80861,41551,003
123,350
101,497
143,954
165,123
106,647
112,450
56,68173,546
63,66875,666
Rent (incl. common service fees)
75,36881,80860,034
48,258112,332
100,197
143,954
165,123
97,902
112,450
56,681
68,646
63,66873,052Other Revenues (*2)
0
0
1,380
2,744
11,018
1,300
0
0
8,744
0
0
4,900
0
2,614
(2) Property-related Expenses
21,225
19,525
12,761
17,28741,36430,32437,90740,85031,17524,25430,872
29,59929,74429,467Administrative Expenses
5,018
3,946
2,501
2,644
6,530
6,800
8,502
9,426
8,556
5,122
13,672
7,391
6,507
5,002
Utility Charges
5,597
6,519
3,404
3,786
8,721
10,235
13,327
15,859
7,326
8,860
5,894
8,351
5,503
7,609
Property Management Fees
1,223
1,276
1,200
1,200
1,794
1,348
2,221
2,489
1,514
1,746
1,200
1,200
1,200
1,227
Property-related Taxes (*3)
7,036
6,576
5,199
4,864
10,6599,531
12,085
11,843
8,390
7,873
7,177
7,043
14,341
13,611
Non-life Insurance Costs
142
141
92
91
152
149
315
311
155
154
146
145
142
140
Repair Expenses
2,207
1,065
362
4,700
13,506
2,259
1,456
919
5,157
496
2,783
5,468
2,051
1,875
Other Expenses
0
0
0
0
0
0
0
0
74
0
0
0
0
0
(3) NOI (＝(1)-(2)) (*5)
54,14262,282
48,65333,715
81,985
71,172106,046
124,273
75,471
88,19625,80643,94633,922
46,199Annualized NOI
107,988
124,225
97,041
67,246
163,523
141,956
211,514
247,867
150,531
175,91051,47187,65367,65992,147
NOI Yield (*4)
4.3%
5.0%
6.2%
4.3%
4.3%
3.7%
3.0%
3.5%
3.3%
3.9%
1.5%
2.6%
2.6%
3.5%
Depreciation and Amortization
11,963
11,831
7,796
7,816
16,103
16,21928,947
29,11319,095
19,37017,116
17,261
9,721
9,992(Reference) Proceeds for Restoration and Repair Work
0
0
0
2,744
10,230
1,300
0
0
8,630
0
0
4,900
0
2,614
Proceed s from Amo rtiza ti on of L eashol d and Security Depo si ts
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Profits from property-related activities (*1)

Acquisition Price (million yen)(*1) For profits from property-related activities, actual results (excluding Other Revenues and Property-related Taxes) are used and displayed by rounding down to the nearest thousand yen.
(*2) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*3) Fixed property taxes, city planning taxes and depreciable asset taxes recorded in Property-related Taxes are calculated by converting the actual amount to the number of operating days.
(*4) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(*5) NOI in this table is calculated by adjusting the Property-related Taxes for the “NOI (after deduction of gain on sale)” aforementioned in the “Major Financial Data” so the figures do not match.
(*6) NKSJ Risk Management, Inc. has prepared for the PML. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (December 2012).
(*’7) Not disclosed due to tenant's request.

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

48

Portfolio Performance Summary (4) (13th-14th Fiscal Period Results by Property)
Daiwa Onarimon

Shinjyuku Maynds Tower

SHIBUYA EDGE

Daiwa Kodemmacho

Daiwa Jimbocho

Daiwa Nishishimbashi

Daiwa Kudan

Property Name

13,860133,800
5,900
2,460
4,150
5,000
4,000
13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period
Book Value (million yen)
13,651
13,623
131,543
131,155
5,822
5,807
2,440
2,436
4,165
4,141
5,128
5,078
3,972
3,959
Appraisal Value (million yen)
13,00013,000108,000
108,000
3,940
3,930
1,900
1,910
2,760
2,730
4,860
4,900
2,820
2,730
Occupancy Rate (%)
100.0
100.0
99.9
98.3
100.0
100.0
100.0
100.0
20.6
86.7
79.6
80.7
88.0
100.0
PML (%) (*6)
5.45
5.45
6.42
6.42
3.14
3.14
7.71
7.71
5.58
5.58
6.76
6.76
7.96
7.96
Mitsui Fudosan Building Management
Mitsui Fudosan Building Management
Property Management Company
Xymax Axis
Xymax Axis
Xymax Axis
Xymax Axis
Property Partners
Number of operating days
183
183
183
183
183
183
183
183
183
183
183
183
183
183
(1) Property-related Revenues
358,681336,575 2,569,616 2,496,694
115,182
110,649
64,68463,58092,15024,524113,237
108,349
115,311
68,612Rent (incl. common service fees)
358,681336,575 2,546,329 2,453,884
115,182
109,793
64,68463,58057,15024,524113,237
104,788
115,31147,612Other Revenues (*2)
0023,28642,8100856
0035,0000
03,560
021,000(2) Property-related Expenses
85,27979,247
742,907799,000
20,88422,802
13,671
14,48368,427
26,88353,361
43,61954,14349,197Administrative Expenses
22,008
12,838130,990
142,563
4,382
6,085
2,813
3,515
13,282
8,605
17,884
14,692
9,677
12,197
Utility Charges
20,99327,709288,990294,948
6,296
7,257
4,258
5,104
6,109
5,343
9,301
10,967
6,796
6,362
Property Management Fees
3,497
3,400
17,624
17,276
1,712
1,655
1,200
1,200
1,209
1,200
1,433
1,462
1,833
1,200
Property-related Taxes (*3)
36,682
33,677
269,849
247,460
7,448
7,319
3,824
3,632
11,212
10,785
16,95715,805
8,990
8,553
Non-life Insurance Costs
475
466
4,099
4,079
118
117
86
86
164
159
277
272
138
134
Repair Expenses
1,624
1,155
27,597
87,172
928
367
668
122
36,213
748
7,506
418
26,70920,748Other Expenses
0
0
3,758
5,498
0
0
822
822
238
40
3
0
0
0
(3) NOI (＝(1)-(2)) (*5)
273,400
257,327 1,826,704 1,697,693
94,29587,84651,00949,09623,719-2,35859,87364,72961,164
19,415
Annualized NOI
545,307513,248 3,643,427 3,386,110
188,076
175,212
101,740
97,92547,308-4,703
119,419
129,105
121,995
38,724
NOI Yield (*4)
4.0%
3.8%
2.8%
2.6%
3.2%
3.0%
4.2%
4.0%
1.1%
-0.1%
2.3%
2.5%
3.1%
1.0%
Depreciation and Amortization
29,46229,449532,827
451,359
16,693
16,4608,247
8,310
23,92024,36250,33450,461
24,13424,435(Reference) Proceeds for Restoration and Repair Work0014,74240,474000035,000000021,000
Proceed s from Amo rtiza ti on of L eashol d and Security Depo si ts
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Profits from property-related activities (*1)

Acquisition Price (million yen)(*1) For profits from property-related activities, actual results (excluding Other Revenues and Property-related Taxes) are used and displayed by rounding down to the nearest thousand yen.
(*2) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*3) Fixed property taxes, city planning taxes and depreciable asset taxes recorded in Property-related Taxes are calculated by converting the actual amount to the number of operating days.
(*4) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(*5) NOI in this table is calculated by adjusting the Property-related Taxes for the “NOI (after deduction of gain on sale)” aforementioned in the “Major Financial Data” so the figures do not match.
(*6) NKSJ Risk Management, Inc. has prepared for the PML. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (December 2012).
(*’7) Not disclosed due to tenant's request.

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

49

Portfolio Performance Summary (5) (13th-14th Fiscal Period Results by Property)
Daiwa Kayabacho Build.

Jimbocho PlaceE Space Tower

Nihonbashi Hongokucho Tosei
Build

Daiwa Kinshicho

Daiwa Higashi-Ikebukuro

Benex S-3

Property Name

4,950
24,000
3,653
2,958
5,600
3,550
1,721
13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period 13th Period
Book Value (million yen)
5,590
5,563
3,606
3,587
24,09424,038
1,740
1,732
3,445
3,418
2,819
2,799
4,433
4,405
Appraisal Value (million yen)
6,110
6,260
3,660
3,660
26,00026,000
1,810
1,810
3,220
3,300
3,510
3,510
3,200
3,200
Occupancy Rate (%)
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
90.1
100.0
96.6
88.0
PML (%) (*6)
5.58
5.58
6.13
6.13
5.78
5.78
6.93
6.93
7.42
7.42
5.56
5.56
5.66
5.66
Mitsui Fudosan Building Management
Property Management Company
Property Partners
Xymax Axis
MS Building Support
Best Property
Best Property
Xymax Axis
Number of operating days
183
183
183
183
183
183
21
183
183
183
183
183
183
183
(1) Property-related Revenues- (※7)- (※7)
108,730
118,219
677,807766,722
4,816
60,386
148,409
149,135
135,753
122,312
155,494
147,394
Rent (incl. common service fees)- (※7)- (※7)
108,730
118,219
677,807766,722
4,816
60,386
148,409
134,407
129,122
122,312
155,494
145,305
Other Revenues (*2)
- (※7)- (※7)
0
0
0
0
0
0
0
14,727
6,630
0
0
2,089
(2) Property-related Expenses- (※7)- (※7)
14,146
26,52995,604
178,774
668
7,670
61,40350,32839,22245,35955,86656,981
Administrative Expenses- (※7)- (※7)
5,913
5,579
40,74140,042523
2,887
17,36012,376
9,821
12,861
16,902
18,231
Utility Charges- (※7)- (※7)
6,394
9,074
42,21857,8190
3,358
11,574
13,75215,017
17,04018,74919,356
Property Management Fees
- (※7)- (※7)
1,680
1,706
6,854
7,728
135
1,200
2,219
1,894
1,885
1,867
2,354
2,172
Property-related Taxes (*3)
- (※7)- (※7)
179,433
1557,36500
13,06911,983
9,630
8,797
15,97015,269Non-life Insurance Costs- (※7)- (※7)
142
140
724
719
10
92
280
277
269
266
419
415
Repair Expenses- (※7)- (※7)
0594
4,934
14,6580
132
16,901
10,043
2,600
4,526
1,472
1,536
Other Expenses- (※7)- (※7)
0
0
118
439
0
0
0
0
0
0
0
0
(3) NOI (＝(1)-(2)) (*5)
160,502
146,405
94,581
91,690582,201
587,948
4,146
52,71587,00398,807
96,52876,952
99,62690,413
Annualized NOI
320,127
292,010
188,646
182,879 1,161,221 1,172,683
72,062
105,143
173,531
197,074
192,529
153,485
198,709180,332
NOI Yield (*4)
5.7%
5.2%
5.2%
5.1%
4.8%
4.9%
4.1%
6.1%
5.0%
5.8%
6.8%
5.5%
4.5%
4.1%
Depreciation and Amortization- (※7)- (※7)
19,70819,70862,73863,2962,185
13,15628,37728,541
22,30322,39539,29039,520(Reference) Proceeds for Restoration and Repair Work
- (※7)- (※7)
0
0
0
0
0
0
0
7,840
5,000
0
0
0
Proceed s from Amo rtiza ti on of L eashol d and Security Depo si ts- (※7)- (※7)
0
0
0
0
0
0
0
6,887
0
0
0
0
Profits from property-related activities (*1)

Acquisition Price (million yen)(*1) For profits from property-related activities, actual results (excluding Other Revenues and Property-related Taxes) are used and displayed by rounding down to the nearest thousand yen.
(*2) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*3) Fixed property taxes, city planning taxes and depreciable asset taxes recorded in Property-related Taxes are calculated by converting the actual amount to the number of operating days.
(*4) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(*5) NOI in this table is calculated by adjusting the Property-related Taxes for the “NOI (after deduction of gain on sale)” aforementioned in the “Major Financial Data” so the figures do not match.
(*6) NKSJ Risk Management, Inc. has prepared for the PML. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (December 2012).
(*’7) Not disclosed due to tenant's request.

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

50

Portfolio Performance Summary (6) (13th-14th Fiscal Period Results by Property)
Daiwa Shinagawa NorthWest Park Osaki

Daiwa Minami-Senba

38 properties

Property Name

7,710
1,650
4,810
13th Period 13th Period 13th Period 13th Period 13th Period 13th Period
Book Value (million yen)
7,480
7,450
1,715
4,858
4,829
Appraisal Value (million yen)
5,690
5,690
1,910
2,850
2,850
Occupancy Rate (%)
100.0
100.0
100.0
100.0
92.7
PML (%) (*6)
5.56
5.56
10.93
11.56
11.56
Mitsui Fudosan Building Management
Property Management Company
Best Property
Xymax Axis
Number of operating days
183
183
74
183
183
(1) Property-related Revenues
196,921
185,120
24,280108,185
115,294
Rent (incl. common service fees)
192,421
185,120
24,280108,185
115,294
Other Revenues (*2)
4,500
0
0
0
0
(2) Property-related Expenses
56,08553,712
2,914
37,14036,182Administrative Expenses
12,436
13,335
1,382
13,217
11,768
Utility Charges
15,766
17,336886
9,480
11,014
Property Management Fees
2,877
2,768
603
1,622
1,742
Property-related Taxes (*3)
19,644
18,6289
11,373
10,874Non-life Insurance Costs
377
378
31
250
251
Repair Expenses
4,985
1,266
0
1,198
530
Other Expenses
0
0
0
0
0
(3) NOI (＝(1)-(2)) (*5)
140,834
131,408
21,36571,042
79,111
Annualized NOI
280,899
262,099
105,385
141,696
157,791
NOI Yield (*4)
3.8%
3.5%
6.1%
2.9%
3.3%
Depreciation and Amortization
33,15932,6605,466
30,99831,284(Reference) Proceeds for Restoration and Repair Work
4,500
0
0
0
0
Proceed s from Amo rtiza ti on of L eashol d and Security Depo si ts
0
0
0
0
0
Profits from property-related activities (*1)

Acquisition Price (million yen)313,256
314,906
13th Period 13th Period
307,324
308,107273,530
276,330
94.3
96.4
5.64
5.64
183
183
7,431,513 7,566,213
7,338,152 7,384,164
93,360
182,049
2,151,009 2,293,890
486,581460,244654,823
737,020
86,62689,271
624,124
665,182
11,831
11,847
234,967
280,098
52,05450,2255,280,503 5,272,323
10,595,945 10,578,606
3.4%
3.4%
1,367,437 1,305,782
78,603
162,04906,887(*1) For profits from property-related activities, actual results (excluding Other Revenues and Property-related Taxes) are used and displayed by rounding down to the nearest thousand yen.
(*2) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*3) Fixed property taxes, city planning taxes and depreciable asset taxes recorded in Property-related Taxes are calculated by converting the actual amount to the number of operating days.
(*4) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(*5) NOI in this table is calculated by adjusting the Property-related Taxes for the “NOI (after deduction of gain on sale)” aforementioned in the “Major Financial Data” so the figures do not match.
(*6) NKSJ Risk Management, Inc. has prepared for the PML. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (December 2012).
(*’7) Not disclosed due to tenant's request.

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

51

Organization of the Asset Management Company█ Organization Chart█ Company Overview

Shareholders’Shareholders’ Meeting
Meeting
Auditors
Auditors
Board
Board ofof Directors
Directors
Compliance
Compliance
Committee
Committee
Compliance
Compliance Officer
Officer
Representative
Representative
Director
Director
Internal
Internal Control
Control Office
Office Formulation and

Implementation of construction
project of the properties.

Akira Yamanouchi

Vice President andRepresentative Director

Yoshiki Nishigaki(Head of Private Fund Management)

Vice President andRepresentative Director

Yuji Shinotsuka(Head of Business Planning)

Investment Management
Department

Toshihiro Matsui

Director (non-executive)

Mikita Komatsu

Auditor (non-executive)

Toshihiko OnishiMarketing Department

Acquisitions Team Marketing activities concerning

commissioned businesses

 Formulation of investment

policies Relation with tenants of theproperties that Investment
Corporation owns

 Acquisition and disposal of

assetsFinance Department
Finance and IR Team Financing, asset liability

management andmanagement of surplus fund Disclosure, IR activities

Accounting Team
Asset Management Team Financial results and accounting, Formulation of policies oncash allotment, accounting audit,
budgetleasing and management ofassets Leasing and management ofassetsInvestment Planning Team Budget and performance

management of the portfolio

October 21, 2004
200 million yen

Representative Director

Akira Yamanouchi

Directors

7 ( 4 executive, 2 non-executive, 1 auditor)

Employees

42

Discretionary Agent for Real
Estate Transaction Approval

General Administrative
Department
 Operation of the general

meeting of investors and theexecutive officers of theInvestment Corporation
 Operation of the general

meeting of shareholders, theboard of directors andcommittees of the AssetManager
 Submission of applications forManagement Team Management for the customers

 Storage and management of

Asst Managerof the “Private FundManagement Dept.”

important documents andinformation

 Budget and performance Human resources and labor

management of the DRP *portfolio

No. 355 (Financial Instruments), Director, Kanto Local Finance
BureauNo. (2)-83920, Governor of Tokyo
No. 34, Minister of Land, Infrastructure, Transport and Tourism
various permits, licenses,
approvals, registrations, etc.
stipulated by laws andregulations

 Accounting and finance of the

6-2-1 Ginza, Chuo-ku, Tokyo

Established
Capitalization

Registered Financial
Instruments Firm
Building Lots and Buildings
Transaction Business License

Naoyuki Owa(Head of Administration)

Director (non-executive)

Daiwa Real Estate Asset Management Co. Ltd.

Address

President andRepresentative Director

Director

Investment
Investment Committee
Committee

Construction Manager

Company Name

Board of Directors and Auditors(As of December 17. 2012)

A member of the Investment Trusts Association of Japan
A member of Japan Securities Investment Advisers
Association

Business Planning
Department
 Analysis of real estate market,

retail industry trends and thereal estate investment trust
market Research and analysis of thebusiness challenge of theInvestment Corporation
 Development of annual asset

management plans andmedium-term asset
management plans Development and revision of

the Investment Guidelines

Private Fund Management
Department
Advisory Team Advisory concerning

managements for customers’
assetsOperational Team Operation concerning

discretionary funds
 Acquisition and disposal of

assets for DRP
 Leasing and management ofassets for DRP

 Provision of new businesses General risk management of theInvestment Corporation

serviceThis document is not material disclosed in* compliancewith
the Financial
and Exchange
Law or any regulation of similar nature
DRP stands for
Daiwa
ResidentialInstruments
Private Investment
Corporation.
, nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

52

Collaboration with Daiwa Securities Group
Daiwa Securities Group Inc.
RetailGlobal Markets

Global IB

Daiwa Securities

Asset Management

Investment

OthersDaiwa Asset

Daiwa Corporate
Investment

Daiwa Next Bank, Ltd.

Management

Daiwa Institute of
Research Holdings

Daiwa Securities
SMBC Principal
Investments

Daiwa SB Investments

Daiwa Institute of
Research

Collaboration
Wealth Management

Fee

Sourcing Properties
Tenants Leasing
FinanceDaiwa Real Estate
Asset Management

DIR Business
Innovations

Daiwa PI Partners

Whollyowned

Daiwa Securities
Business Center Co. Ltd.

Branch OfficeDaiwa Property Co., Ltd.

IR Activities (Domestic and Overseas)
Real Estate Agency Business (Reinforce Leasing)

Real Estate Agency Business (Reinforce Leasing)
Sourcing Properties and Tenants LeasingThis 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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

53

Competitive Edge
█ Establish highly-transparent business structure Strictly control conflicts of interest with sponsor
 Introduce financial institutions’ rigorous compliance framework
 Ensure high transparency and establish disciplined investment process█ Expand net work of collaboration with the Daiwa Securities Group Remarkably expand financing capacity by capitalizing on the credit capability of the Daiwa Securities Group Reinforce leasing activities by capitalizing on the network of the Daiwa Securities Group Reinforce sourcing activities by capitalizing on the network of the Daiwa Securities Group█ Secure well-experienced, highly-professional human resources Develop team of outstanding professional staff by capitalizing on the human resources of the Daiwa Securities Group Employ excellent human resources from outside by drawing on the Daiwa Securities Group’s brand power Increase number of employees with a high level of motivation to challenge new business stages

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

54

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

55

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. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

56