This translation of the original Japanese notice is provided solely for information purposes. Should there be any discrepancy
between this translation and the Japanese original, the latter shall prevail.
REIT Issuer: Daiwa Office Investment Corporation (Stock Code No.: 8976)
Representative: Keiichi Sakai, Executive Director

July 19, 2024

Asset Manager: Daiwa Real Estate Asset Management Co. Ltd.
Representative: Yoshiki Nishigaki, President and Representative Director
Inquiries to: Kentaro Azumi, General Manager, Corporate Division(Tel: +81-3-6215-9649)

Notice Concerning Divestment of of Trust Beneficiary Interest in Domestic Real Estate (DaiwaTsukishima)
Daiwa Office Investment Corporation (the “Investment Corporation”) hereby announces that Daiwa Real Estate
Asset Management Co. Ltd., to which the Investment Corporation entrusts management of its assets (the “AssetManager”), has decided today to divest trust beneficial interest in real estate (the “Divestment”) as follows.
1. Summary of the Divestment
Asset Name
Type of Asset

Sale Price (Note 1)

Book Value
Difference between SalePrice and Book Value(Note 2)
Date of Conclusion ofSales Agreement
Scheduled Delivery Date

Daiwa Tsukishima (the “Property”)
Trust beneficial interest in domestic real estate
9,800 million yen (excluding settlement amounts of fixed asset tax and city planning tax
and consumption tax.)(1) 3,920 million yen(2) 2,940 million yen(3) 2,940 million yen(40% of quasi co-ownership (30% of quasi co-ownership (30% of quasi co-ownershipinterest)interest)
interest)
6,295 million yen (As of May 31, 2024)
3,505 million yen
July 19, 2024
(1) November 29, 2024

(2) May 30, 2025

(3) November 28, 2025

Purchaser
Daiwa Securities Realty Co., Ltd. (“Daiwa Securities Realty”)
Intermediary (Note3)
Yes
Payment Method
To be received on each of the scheduled delivery dates(Note 1) The Investment Corporation will pay expenses for soil contamination survey and countermeasures to thepurchaser as reimbursement. In addition, depending on the future development of discussions with the tenants
and other circumstances, it is possible that the Investment Corporation will need to bear the cost of responding
to the tenants as the seller. Note that the expenses for soil contamination survey and countermeasures arethose related to the soil contamination survey required when cutting, filling, excavating or otherwise altering
land of the Property in accordance with the Ordinance on the Environment to Ensure the Health and Safety ofTokyo Residents as stated in the securities report filed by the Investment Corporation on February 19, 2024.
(Note 2) The figure differs from a capital gain from divestment. It is a simple calculation of difference between the saleprice and the book value as of May 31, 2024, for reference.
(Note 3) The intermediary of the Divestment does not correspond to an interested person, etc.

2. Reason for the Divestment
The Investment Corporation decided that the Divestment was in line with its management policy,
comprehensively taking into account the characteristics of the Property, measures on return of profits tounitholders described below, current and future portfolio strategy, and trends in real estate market conditions
for the improvement of unitholder value.
In light of the current status of the management of the portfolio, after considering the level of yields on theProperty and potential for future stability and growth, it was determined that actualizing the evaluation of theProperty in the current trading market would contribute to the enhancement of unitholder value. Note that thedelivery of the Divestment is divided between three periods (the fiscal period ending November 2024, the fiscalperiod ending May 2025, and the fiscal period ending November 2025) to stabilize the distribution over a longer
term by returning the proceeds of the sale to unitholders in installments over the three periods while reserving
some of them internally.

13. Details of the Asset to Be Divested

Asset Name
Daiwa Tsukishima
Type of Specified Asset
Trust beneficial interest in domestic real estate
TrusteeMizuho Trust & Banking Co., Ltd.
Maturity of Trust Period
March 31, 2026
Location (Address)
4-16-13 Tsukishima, Chuo-ku, Tokyo
Use (Real Property Registry)
OfficeOwnership FormOwnership
Site Area (Real Property Registry) 3,157.62 m2
Total Floor Area
9,416.34 m2(Real Property Registry)
Structure (Real Property Registry) Reinforced concrete structure flat roof, 5 stories above groundConstruction Date (RealJuly 31, 1996
Property Registry)Book Value
6,295 million yen (May 31, 2024)
Appraisal Value
9,800 million yen(Date of Valuation)(as of May 31, 2024)
Appraiser
DAIWA REAL ESTATE APPRAISAL CO., LTD.
Date of Delivery(1) November 29, 2024, (2) May 30, 2025, (3) November 28, 2025
Summary of Tenants (as of May 31, 2024)
Total Number of Tenants 3
Rent Revenue
141 million yen (Note)
Security Deposit and
166 million yen
Guaranty
Total Leased Floor Space 3,425.23 m2
Total Leasable Floor Space 8,425.69 m2
Occupancy Rate

40.6%(Note) Rent revenue is for the fiscal period ended May 2024 (from December 1, 2023, to May 31, 2024).

4. Details of the Purchaser
The purchaser is Daiwa Securities Realty Co., Ltd., a sister company of the Asset Manager and a subsidiary ofDaiwa Securities Group Inc. (“Daiwa Securities Group”). The purchaser is an interested person, etc. as
stipulated in the Act on Investment Trusts and Investment Corporations, and a related party as stipulated in the“rules on prevention of conflicts of interest,” the Asset Manager’s internal regulations. In conducting thedivestment transactions of the asset to be divested with the purchaser, the Asset Manager therefore has taken
the decision-making procedures as stipulated in the rules on prevention of conflicts of interest, and confirmedthat the sale price is the same as the appraisal value.
(1)
(2)
(3)

Name
Location
Title/Name ofRepresentative

Daiwa Securities Realty Co., Ltd.
2-1, Ginza 6-chome, Chuo-ku, Tokyo

Toshio Fukushima, President and Representative Director

2

1.
2.
3.
4.
5.
6.
7.
8.

Purchase and sale, investment, leasing, and brokerage of real estateManagement of real estate
Owning, purchase and sale, and brokerage of trust beneficial interest
Type II financial instruments business
Real estate brokerage business
Trust business
Purchase and sale, holding, management, and investment of securities
Brokerage and mediation of corporate business transfer, asset sales,capital participation, business alliance, merger, etc.
9. Supervision of and consultation on construction works
10. Direct investment and purchase and sales, brokerage, and management ofinvestments in specified purpose companies, special purpose companies(companies so defined by the Ordinance on Terminology, Forms andPreparation Methods of Financial Statements, etc.), real-estate investment
funds, and real estate investment corporations
11. Planning and research on effective use of real estate
12. Management consultancy
13. Property management and administration
14. Money lending business as stipulated in the Money Lending Business Act
15. Services related to purchase and sale of monetary claims, or related tointermediary, brokerage or agency of the same
16. Services related to conclusion of loan participation agreement, or related tointermediary, brokerage or agency of the same
17. Services related to conclusion of partnership contract, limited partnershipagreement for investment, or silent partnership contract, or related tointermediary, brokerage or agency of the same
18. Services related to Article 17-3, paragraph (2), item (xii) of the Regulation
for Enforcement of the Banking Act
19. Any and all businesses incidental or related to the preceding items(4)

Nature of Business

(5)
(6)
(7)
(8)
(9)
(10)
(11)

Stated Capital
500 million yen
Net Sales
42,763 million yen
Date of Establishment
April 1, 2021
Net Assets
1,834 million yen
Total Assets
68,381 million yen
Major Shareholders
Daiwa Securities Group Inc. 100%
Relationships with the Investment Corporation/Asset Manager
There is no capital relationship to be noted between the purchaser and theInvestment Corporation/Asset Manager.
Daiwa Securities Group, the parent company of the Asset Manager, is theCapitalparent company of the purchaser owning 100% of its shares. In addition, theRelationships
purchaser is an interested person, etc. of the Asset Manager as stipulated in theAct on Investment Trusts and Investment Corporations.
Human
As of today, some employees of the Asset Manager are seconded to theRelationships
purchaser.
The purchaser has concluded a basic agreement on pipeline support, etc. withBusinessthe Asset Manager regarding the provision, etc. of the pipeline support function
Relationships
and the warehousing function by the purchaser.
The purchaser is a subsidiary of Daiwa Securities Group, the parent company ofRelated Party Status
the Asset Manager, and therefore a related party.

5. Future Prospects
Regarding the forecast of management status for the fiscal period ending November 2024 (from June 1, 2024
to November 30, 2024) and the fiscal period ending May 2025 (from December 1, 2024 to May 31, 2025)
assuming the Divestment, please refer to “REIT Financial Report for the 37th Fiscal Period” announced today.

36. Summary of Appraisal Report
DAIWA REAL ESTATE APPRAISAL CO., LTD.

Appraiser
Appraisal Date

May 31, 2024

Appraised Value

9,800 million yenItems(million yen)
(Note 1)

Outline, etc.

Income Approach Value

9,800

Direct Capitalization Value

4,849484(1) Operating Revenue
Potential Annual Rent
RevenueAmount of Loss due toVacancy

PM Fee510

Assessed rent, which is stable over the medium to longterm, etc.

25

Assessed by taking into account the standard vacancy
rate and specific factors of the subject property.

96(2) Operating Expenses
Maintenance andOperation Cost

Estimated equally based on direct capitalization value
and discounted cash flow value.

22(Note 2)

Assessed based on the level of actual historical data.
Assessed based on actual historical data.

Water & Utility Charges

30Repair1

Leasing Fee

4

Recorded as the average annual repair cost as per theER estimate.
Amount equivalent to new monthly rent for 1.2 months.

Tax

32

Based on actual historical amount.

Non-life Insurance

0

Deemed actual amount, etc. as being appropriate.

Others3(3) Net Operating Revenue

388(4) Profit fromDeposits/Guarantees

3Return yield is assumed at 1.0%.

(5) Capital Expenditures

11

Deemed the average annual amount of major repair
costs and renewal costs as per the ER estimate.as
being appropriate.

(6) Net Revenue ((3)+(4)-(5))380(7) Capitalization Rate

3.8%

Discounted Cash Flow Value

9,710

Discount Rate

3.5%

Terminal Capitalization Rate

4.0%

Integrated Value by Using Cost
MethodAssessed by reflecting fluctuation risks of income andprincipal in the discount rate.
Assessed by comprehensively taking into account themarket trends, etc. after considering the regional
factors, specific factors, etc. of the subject property.
Assessedconsidering
futureuncertainties,
deterioration of buildings and divestment risks, basedon capitalization rate.

6,250

Ratio of Land

88.3%

Ratio of Building

11.7%

Other, things appraiser noted upon valuation－(Note 1) The above revenue and expenses are based on the appraisal report and are not the figures forecasted by theInvestment Corporation or the Asset Manager.
(Note 2) With no PM’s permission given for a specific disclosure of the PM fees, there is no disclosure of the breakdown ofthe fees. Disclosure of the PM fee figures in a specific manner may cause adverse effects on other business
operations of the PM, resulting in a negative impact on the planned efficient operation based on the maintenancepolicy of the investment-target property of the Investment Corporation that the Investment Corporation is tocontract with the PM. This may in turn further cause adverse effects on unitholders’ interests. Therefore, the figure
presented in this column is calculated together with maintenance and operation costs.

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【Reference Material】Portfolio Overview After Acquisition of the PropertyRegion

Name of Property

Date of (Scheduled) Acquisition

Investment Ratio(Note 4)

Daiwa Ginza

Oct 21, 2005

14,100.0

3.0%

Daiwa Ginza Annex

Oct 21, 2005

3,050.0

0.7%

Daiwa Shibaura

Oct 21, 2005

8,265.0

1.8%

3,190.0

0.7%

Oct 21, 2005/

Daiwa Sarugakucho

Mar 30, 2012

Daiwa A Hamamatsucho

Oct 21, 2005

2,865.0

0.6%

Daiwa Jingumae

Oct 21, 2005

2,800.0

0.6%

Daiwa Shibadaimon

Oct 21, 2005

2,578.0

0.6%

Daiwa Misakicho

Oct 21, 2005

2,346.0

0.5%

Daiwa Tsukijiekimae

Jan 27, 2006

1,560.00.3%

Daiwa Tsukiji

Jan 27, 2006

1,240.0

0.3%

Daiwa Nihonbashi Horidomecho

May 1, 2006

2,520.0

0.5%

Daiwa Azabudai

May 1, 2006

1,600.0

0.3%

Jul 13/ Nov 26, 2007

66,900.0

14.4%

Daiwa Kodenmacho

Aug 31, 2007

2,460.0

0.5%

Daiwa Nishi-Shimbashi

Aug 13, 2010

5,000.0

1.1%

Daiwa Kayabacho Building

Mar 25, 2011

5,600.0

1.2%

Daiwa Jimbocho 3-ｃhome

Mar 29, 2011

3,550.0

0.8%

E SPACE TOWER

Jul 8, 2011

24,000.0

5.2%

Daiwa Nihonbashi Hongokucho

May 11, 2012

1,721.00.4%

9,650.0

2.1%

Shinjuku Maynds Tower

Five Central
Wards ofTokyo(Note 1)

Acquisition Price(million yen)

Dec 3, 2012/

shinyon curumu

Apr 12, 2013

Daiwa Akasaka

Aug 9, 2013

9,200.0

2.0%

Daiwa Shibuya Miyamasuzaka

Sep 27, 2013

7,000.0

1.5%

Daiwa Azabu Terrace

Jul 4, 2014

14,000.0

3.0%

Daiwa Ebisu 4-chome

Dec 1, 2014

4,135.2

0.9%

LAQUAS Higashi Shinjuku

Dec 3, 2014

8,450.0

1.8%

Daiwa Aoyama

Mar 2, 2015

9,800.0

2.1%

Shinsen PlaceMar 2, 2015

4,800.0

1.0%

Daiwa Shibuya SquareMay 1, 2015

16,000.0

3.4%

Daiwa River Gate

Jun 2, 2015

28,000.0

6.0%

Daiwa Hatchobori ekimae

Sep 11, 2015

2,871.0

0.6%

Daiwa Hatchobori ekimae WestSep 11, 2015

1,647.0

0.4%

Daiwa Nishi-Shinjuku

Mar 29, 2016

13,710.0

2.9%

Kirin Nihonbashi Building

May 26, 2016

8,180.0

1.8%

Daiwa Higashi-Nihonbashi

Jun 1, 2016

6,370.0

1.4%

Daiwa Daikanyama

Jun 29, 2016

2,280.0

0.5%5RegionName of Property

Date of Acquisition

Acquisition Price(million yen)

Investment Ratio(Note 4)

Daiwa Shinjuku WestJul 21, 2016

942.0

0.2%

Daiwa Kanda Mikuracho Building

Dec 21, 2016

1,592.0

0.3%

Daiwa Kanda East

Jan 12, 2018

4,200.0

0.9%

Daiwa Kandasudacho

Jun 7,2018/ Nov 1,2018

2,295.0

0.5%

Daiwa Sasazuka Tower

Oct 30, 2018

15,500.0

3.3%

Daiwa Sasazuka

Dec 27, 2018

3,000.00.6%

Daiwa Harumi

Feb 27, 201911,200.0

2.4%

Daiwa Mita 2-Chome

Jul 1, 2019

2,635.0

0.6%

Nihonbashi Central SquareMay 21, 2020

3,521.5

0.8%

Daiwa Nihonbashi BakurochoDaiwa Kandabashi
Daiwa Akihabara

Nov 13, 2020
Sep 29, 2021
Jun 28, 2024

5,733.0
1,970.0
15,503.0

1.2%
0.4%
3.3%

S-GATE FIT Nihonbashi Bakurocho

Mar 29, 2024

6,300.0

1.4%

375,829.7

80.7%

Total Number of Properties located in Five Central Wards of Tokyo: 48
Daiwa Higashi-Ikebukuro

Oct 21, 2005

2,958.0

0.6%

Daiwa Shinagawa North

Jul 13, 2007

7,710.0

1.7%

Daiwa Kamiooka

Mar 1, 2013

2,000.0

0.4%

May 29, 201415,220.0

3.3%

May 1, 2015

5,600.0

1.2%

Jul 21, 2016

3,800.00.8%

CONCURRED Yokohama

Jan 11, 2018

38,100.0

8.2%

Daiwa Shinagawa Gotenyama

Sep 13, 2018

2,500.0

0.5%

Daiwa Nakano-Sakaue

Dec 13, 20192,750.0

0.6%

80,638.0

17.3%

9,481.5

2.0%

9,481.5

2.0%

465,949.2

100.0%

Daiwa Ogikubo Tower
Greater Tokyo
Daiwa Meguro Square(Note 2)
Daiwa Ogikubo

Total Number of Properties located in Greater Tokyo: 9Major Regional
Daiwa Kitahama
Cities (Note 3)

Aug 1, 2014

Total Number of Properties located in Major Regional Cities: 1
Total Number of Properties: 58(Note 1) “Five Central Wards of Tokyo” means Chiyoda-ku, Chuo-ku, Minato-ku, Shinjuku-ku and Shibuya-ku.
(Note 2) “Greater Tokyo” means Tokyo (excluding the Five Central Wards of Tokyo), Kanagawa, Chiba and Saitamaprefectures.

(Note 3) Major Regional Cities” means Osaka area (i.e., Osaka, Kyoto and Hyogo prefectures), Nagoya area (Aichi,Mie and Gifu prefectures), ordinance-designated cities and core cities under Local Autonomy Act.

(Note 4) Figures in the “Investment Ratio” column represent the percentage of the acquisition price of each property to the(Note 5)

aggregate amount of the acquisition price and are rounded to the first decimal place. Please note that adding up of
the investment ratio of the properties may not exactly match the investment ratio for each investment region or forthe overall portfolio.
The above overview represents the state after the completion of the third delivery (scheduled delivery date: November28, 2025) of the Property (Daiwa Tsukishima).

*Website URL of the Investment Corporation: https://www.daiwa-office.co.jp/en/

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