2012/7/17

Daiwa Office Investment Corporation
Earnings Announcement
for the 13th Fiscal Period(Fiscal Period ended May 2012)

Contents
Section 1

Section 3

Performance Highlights and Forecasts

External Growth The 13th Fiscal Period Topics

4 The Real Estate Market and Trading Performance21

 Highlights of the 13th Fiscal Period5 Acquisition of Properties Under Review

22

 Highlights of Forecasts for the 14th and 15th Fiscal Period6 Recent Property Acquisition23

 Issue and Activities of the Investment Corporation

7

 Portfolio and Acquisition Policy

24 Properties Acquired after The Sponsor Change

25

Section 2

Section 4

Internal Growth

Financial Strategy

 Leasing Market of Tokyo Office Building9 Portfolio Map

10 Status of Interest-bearing Liabilities27 Analyses of Leasing Income11 Unitholders

31

 Performance of Shinjuku Maynds Tower & E SPACE TOWER

14

 Activities in the 14th Fiscal Period32

 Internal Growth Strategies

15th Properties Focused on Leasing in the 13 FP

16

Section 5

17
 Strategic Renewals Aimed at Improving in Building Competitiveness 18

Appendixth Properties Subject to Leasing Improvement in the 14 FP

 Actions Taken for Environmental Efforts

19

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Section 1
Performance Highlights and Forecasts
The 13th Fiscal Period (December 1, 2011 ~ May 31, 2012)

The 13th Fiscal Period Topics█ Properties Acquisition¾“Nihonbashi Hongokucho Tosei Building” (Date of Delivery: 2012/5/11 Acquisition Price: 1,721 million yen)

¾ The land ownership of “Daiwa Sarugakucho” (Date of Delivery: 2012/3/30 Acquisition Price: 190 million yen)

█ Property Management and Management Situation¾

Occupancy Rate at the end of the 13th FP : 94.3% (the 13th Expected Occupancy Rate estimated in Jan. 2012 : 90.8% /Occupancy Rate at the end of the 12th FP: 92.4%)¾

Average Contract Rent at the end of May. 2012 : 19,480 yen (% change from the end of Nov. 2011: -3.7%)█ Financial Situation¾ Interest-bearing liabilities at the end of May 2012 : 111,391.25 million yen ( LTV (based on acquisition price) : 35.6%)¾ Refinanced 19.6 billion yen in May 2012 and improved the debt cost dramatically¾ As the result of concluding the swap agreements, the rate of loans with fixed interests rate increased from 28.2% to 84.3%.

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 13th Fiscal Period█ Results of the 13th Fiscal Period(million yen)

12th Fiscal Period(ended Nov. 2011)(36properties)

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

ChangeOperating Revenue

7,605

7,431

▲ 174

Operating Expenses

4,288

4,341

+52

Operating Income

3,317

3,090

▲ 226

Non-operating expenses

1,560

1,080

▲ 480

Ordinary Income

1,767

2,022

+254

Net Income

1,766

2,021

+254

Dividend per Unit

4,464 yen

5,107 yen

+643yenOccupancy Rate

92.4%

94.3%

+1.9%

NOI Yield (annualized)

3.6%

3.4%

－

Due to increase in the full contribution of E SPACETOWER acquired in the 12th FP (+138 mil yen) but
decrease in the operating revenue by the tenants’ moving
out from Daiwa Jimbocho, Daiwa Onarimon and Daiwa
Sarugakucho, total operating revenue in the 13th FP is
7,431 mil yen （▲174mil yen）
Increase in outsourcing expenses (+63mil yen) (of them,
the agent fee: +49mil yen)
Without expenses for attaining unsecured status forborrowings and decrease in debt cost accompanying therefinancing of borrowings. (▲480mil yen)(million yen)

(Reference)Previous Forecast of
13th Fiscal Period(36 properties)

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

ChangeOperating Revenue

7,269

7,431

+162

Operating Expenses

4,264

4,341

+77

Net Income

1,919

2,021

+101

Dividend per Unit

4,850 yen

5,107 yen+257 yenOccupancy Rate

90.8%

94.3%

+3.5%

Increase in the rent revenue (rent and common area
charge) (+25 mil yen), utilities revenue (+90mil yen) andother lease business revenue including restoring theoriginal condition.

Increase in the utilities expenses (+71mil yen) anddecrease in the repair expenses excluding restoring theoriginal condition.

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 14th and 15th Fiscal Period█ the 14th Fiscal Period(Forecast)(million yen)th

14 FP Forecast
Ending Nov. 2012(37 properties)

Differencecompared to 13thFP

Operating Revenue

7,413

▲ 18

Operating Expenses

4,439

+98

Operating Income

2,973

▲ 116

Non-Operating expenses

794

▲ 285

Net-Income

2,177

+155

5,500yen+393yen

Expected Occupancy Rate

94.3%

0.0%

Expected NOI Yield (annualized)

3.2%

－

Dividend per Unit

█ the 15th Fiscal Period(Forecast)

Because of increase in taxes and dues of Daiwa Kayabacho
Building, Jimbocho Place and E SPACE TOWER, operating
expenses in the 14th Fiscal Period is estimated to be 4,439 milyen (+98mil yen)
Due to cost reductions by refinancing loans, non-operating
expenses is estimated to be 794 mil yen. (▲285mil yen)(million yen)
15th FP Forecast
Ending May. 2013(37 properties)

Differencecompared to 14thFP

Operating Revenue

7,080

▲ 333

Operating Expenses

4,156

▲ 283

Operating Income

2,923

▲ 49

Non-Operating expenses

744

▲ 49

Net-Income

2,177

0

5,500 yen

0yen

Expected Occupancy Rate

93.5%

▲ 0.6%

Expected NOI Yield (annualized)

3.2%

－

Dividend per Unit

Because of increase in rent revenue of Daiwa Sarugakucho but
decrease in rent revenue of Daiwa Jimbocho and Daiwa Kudan,
etc., operating revenue in the 14th Fiscal Period is estimated to be
7,413 mil yen (▲18mil yen)

Because of decrease in utilities revenue, other lease businessrevenue and rent revenue by assuming tenants’ moving out
from Shinjuku Maynds Tower, operating revenue in the 15th
Fiscal Period is estimated to be 7,080mil yen (▲333mil yen)

Due to decrease in utilities expenses, repair expenses anddepreciation, operating expenses in the 15th Fiscal Period is
estimated to be 4,156mil yen (▲283mil yen)
Due to cost reductions by refinancing loans, non-operating
expenses is estimated to be 744mil yen. (▲49mil 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.

6

Issues and Activities of the Investment Corporation
Balance
Balance Sheet
Sheet ofof thethe 13th
13th Fiscal
Fiscal Period
Period(FiscalPeriodended
May,(Fiscal Period ended May, 2012)2012)（Unit：million yen）

Asset Issues and Activities

Liability Issues and Activities Reduction in Risk of Rising Interest Rate

 Measures to Improve Profitability

Î Increase in the rate of fixed interest rateloans and reduce in risk of rising interest
rateÎ Improve occupancy rate through lease-up

Liabilities

Î Prevent cancellations by strengthening
relations with existing tenants
Î Implement strategic renewals aimed atboosting competitiveness Strengthen Collaboration with GroupÎ Strengthen leasing through collaboration
with Daiwa Securities Group124,515
Financial Strategy
Status of interestbearing liabilities

Internal Growth
Leasing
Improvement
P9~19

Assets Decrease in Interest Rate Costs

Î Continually strive to reduce financial costs

P27~30325,315Net Assets

 Measures to Reduce Costs

Î Reduce energy consumption costs

200,800

Î Individualize some heat sources for airconditioning systems
Î Ensure appropriate construction costs

 Selective Purchases of Properties

Î Invest aggressively for the competitive
properties screened carefullyÎ Amend the Asset Management Guideline
and clarify the criteria to acquire properties

External Growth
Growth through asset
acquisitions

Forecast
Forecast EPS
EPS forfor thethe 14th
14th Fiscal
Fiscal Period
Period5,500 yenP21~25

Forecast
Forecast EPS
EPS forfor thethe 15th
15th Fiscal
Fiscal Period
Period5,500 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
Leasing
Leasing Market
Market ofof TokyoTokyo Office
Office Market
MarketTrend
Trend ofof Office
Office Rent
Rent andand Vacancy
Vacancy Rate
Rate
of
5
CentralWardsofof 5 Central Wards of Tokyo
Tokyo

Rent (yen/tsubo)(yen/tsubo)
25,000(%)
10

23,0008

28,000（Rent）（Vacancy Rate）

2008/926,000

Ｂ Class Bldg.

21,0006

24,0002007/919,0004

2001/6

A Class Bldg.
Rental Market Clock(conceptual chart)

2000/1

22,0002003/10Large-scale Buildings of 5 Central Wards of Tokyo
17,0002
20,000Existing Building Average Rent (left axis)
Existing Building Vacancy Rate (right axis)

100

91

'16/01'15/01'14/01'13/01'12/01'11/01'10/01'09/01'08/01'07/01'06/01

2011/122012/6Large-scale Buildings
increased by 17,600tsubo
between 2011/12 and 2012/6(by 4% in total rent area)

125

2008/916,000

216

200
150

18,000

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

250'05/01'04/01'03/01'02/010'01/01

15,000

181

154

121

119
77

65

86 85

117
57

2001/6

2007/990

87

2000/1
2003/10

14,00050

Construction Completion(Data): Miki Shoji and Mori Building

Office Buildings of 5 Central Wards of Tokyo 2011/12

'15

'14

'13

'12

'11

'10

'09

'08

'07

'06

'05

'04

'03

'02

'01

0
Construction
Incompletion

2012/6

12,000
0％

1％

2％

3％

4％

5％

6％

7％

8％

9％

10％

(Data) Sanko Estate compiled by Daiwa Real Estate Asset Management(Vacancy Rate)
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

Portfolio Map ~ Up or down in occupancy rate compared with previous Fiscal Period~
55 Central
Central Wards
Wards ofof TokyoTokyo andand Tokyo
Tokyo Metropolitan
Metropolitan Area
Area
As of May. 31, 2012

Ikebukuro Station

Daiwa Higashi Ikebukuro

Occupancy rate compared withprevious Fiscal PeriodUp: 12 buildingsDown: 8 buildings

Unchanged : 17 buildings
Daiwa Misakicho

Shinjuku Ward

Daiwa Sarugakucho
Daiwa Jimbocho

Shinjuku Station

Daiwa Kudan
Nihonbashi Hongokucho Tosei Building *Chiyoda Ward
Sunline Bldg. No.7
Tokyo
StationShinjuku Maynds Tower

ShibuyaWard
SHIBUYAEDGE

Daiwa Jingumae
Daiwa Ginza Annex

Daiwa Minami Aoyama

Daiwa Nishi shimbashi

Daiwa Ginza

Daiwa Onarimon
E SPACE TOWER

Regional
Regional Cities
CitiesJimbocho Place

Daiwa Shibuya SS
Shibuya Station

Daiwa Kodenmacho
Nihonbashi MS Bld.

Chuo
Ward

Daiwa Nihonbashi Honcho

Daiwa Kayabacho Build.
Daiwa Kyobashi
Daiwa Ginza 1-chome
BPS Square
Daiwa Tsukiji
Daiwa Tsukiji616
Daiwa Tsukishima

Daiwa Shinbashi510
Daiwa Azabudai

Daiwa A Hamamatsucho
Daiwa Shibadaimon

Minato Ward

Daiwa Kinshicho
Benex S-3

Daiwa Shibaura

Daiwa Minami-Senba
Tokyo

Shinagawa Station

Daiwa Shinagawa North•The occupancy rate of Nihonbashi Hongokucho Tosei Building maintained comparedto the occupancy rate at 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.

10Analyses of Leasing Income (1)█Occupancy
Occupancy Rate
Rate
100.0%

99.0%(1)(1) TheThe 1313hh Fiscal
Fiscal Period
Period (Actual)(Actual)

98.3%
97.7%

98.2%

97.4%

95.4%

94.3% 94.3%

95.0%

93.5%
92.8%

90.0%

 Occupancy rate of Daiwa Sarugkucho recovered to 100.0%.

92.4%

Occupancy Rate (Actual)

90.8%

Expected Occupancy Rate (in Jul. 2012)

94.3％

 The occupancy rate at the end of the 13th Fiscal Period recovered from 90.8%(F)* to
94.3%.

95.9%

97.6%

97.0%

Occupancy Rate and Forecast

 Occupancy rate of Daiwa Onarimon recovered to 100.0%.
 Occupancy rate of Nishishinbashi was up to 79.6%.

90.7%

Expected Occupancy Rate (in Jan. 2012)
85.7%

85.0%

th Fiscal(2)(2) TheThe 1414th
Fiscal Period
Period (Forecast)(Forecast)

1th FP 2th FP 3th FP 4th FP 5th FP 6th FP 7th FP 8th FP 9th FP 10th
FP

11th
FP

12th
FP

13th
FP

14th
FP

15th
FP

 The expected occupancy rate at the end of the 14th Fiscal Period is estimated torecover from 90.7%(F)* to 94.3%.
 Major tenant of Daiwa Kudan is scheduled to leave.

Rate
Rate ofof Move
Move In
In // Out
Out
15.0%

 Meanwhile the occupancy rates of Ｄａｉｗａ Jimbocho and Daiwa Kudan are
estimated to recover early.

13.4%

10.0%

9.8%
7.2%

5.0%

7.4%

5.9%

3.2%

3.9%

2.5%

3.3%

0.0%
7th FP-5.0%

8th FP

9th FP-3.9%

10th FP

11th FP

12th FP

-3.4%

-3.9%

-5.9%

-10.0%

13th FP-7.3%

Expected Rate of Moving-in-14.7%

14th FP

15th FP-3.0%

Rate of Moving-in-12.0%-15.0%

94.3％

-6.0%

th Fiscal(3)(3) TheThe 1515th
Fiscal Period
Period (Forecast)(Forecast)

93.5％

 The expected occupancy rate at the end of the 15th Fiscal Period is estimated to be
93.5%.
 Tenants of Shinjuku Maynds Tower are estimated to move out.
 The occupancy rate of the 15th Fiscal Period is estimated conservatively because oflarge supply of office buildings and uncertain outlook of economy.

Rate of Moving-out
Expected Rate of Moving-out-20.0%(F)* : expected on January,13 2012

* Rate of Moving-in and Moving-out to 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.

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

NumberNumber ofof New
New Leases
Leases andand Cancellations
Cancellations **

(%)

500

100

（Case)

60

40*
1,000㎡~(Acquired properties)(leftax is)

400

90

30

31
17

20
6

5

~300㎡(left ax is)

16

300

6
4

5

7

37

37

34

200
129

13

4

80

0

34

-20
-20

-14

-12

-19

-20

-24

129

18

-2

Occupancy Rate (right ax is)

1
31

38

24

1,000㎡~(Ex cluding Acuired properties)(left ax is)
300㎡~1,000㎡(left ax is)

33

134

146

70

-40

115

-53

-60
7th FP100-25

8th FP

9th FP

10th FP

11th FP

12th FP

13th FP

60

New Leases
97

105

108

106

13Fiscal Period0502010/5

2010/11* After changing the sponsor.

2011/5

2011/11

Cancellations

Net New Leases

113

2012/5

New Leases
Cancellations

Cost
Space
Space
BetterConsolidation
Reduction Expansion
Reduction
Location
11
13
3
2
4
4
3
5
6
2

Other

Total
5
5

38
25

* Excluding residence and warehouse
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 (3)Average
Average Contract
Contract Rent
Rent andand Market
Market Rent
Rent(yen/tsubo)

Contract
Contract Renewal
Renewal

25,000█ The 14th Fiscal Period Contract Renewal Target
The rate of Contract Renewal Target Area to total rentableare(195,541.63㎡) at the end of 13th Fiscal Period
Revision Target Area,
12.3%

20,000Non-Revision Target
Area, 87.7%█ The 13th Fiscal Period Contract Renewal
Cancelled Area (Revision Cancelled Area (NonRevision Target), 7.0%
Target ), 1.0%

Average Contract Rent*
Miki Shoji Tokyo 5 Central Wards Office Rent

Revision Target Area,
22.3%

The rate of Contract Renewal Area during 13th Fiscal Period tototal rentable are (189,755.60㎡) at the end of 12th Period
Non-Revision Target
Area, 69.7%

15,000
4th FP

5th FP

6th FP

7th FP

8th FP

9th FP

10th FP

11th FP

12th FP

13th FP* Average of rent that tenants contracted by the end of each Period pay(Million yen)

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

1,250
1,200
1,150

Increase by
New
Acquisition

30.7%
0.8%

12th FP

28.4%

4.0%

48.4%

19.6%

3.5%

Decrease by
Rent
Revisions

1,100

64.5%

13th FP

Increase by New
Decrease by
LeasesTenants’Cancellations

11th FP

40.8%

9.5%

45.0%
4.7%

1,050
10th FP

1,000
End of Nov. 2011
Monthly Contract Rent

End of May 2012
Monthly Contract Rent

* Monthly Contact Rent means a total final ret from tenants who contracted by the end of the
Fiscal Period.

0.0%

53.9%
20.0%
Decrease

40.0%
Increase

12.1%

34.0%
60.0%
Unchanged

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.

13Performance of Shinjuku Maynds Tower & E SPACE TOWER%% ShareShare ofof Maynds
Maynds Tower
Tower && EE SpaceSpace Tower
Tower

Shinjuku
Shinjuku Maynds
Maynds Tower
Tower Occupancy
Occupancy Rate
Rate

100.0%

99.9% 99.9% 99.9% 99.9% 98.3% 94.0%

99.4% 100.0% 96.6% 99.9% 99.1%
78.1%

80.0%

Shinjuku Maynds Tower& E SPACE TOWER：
50.4％

Other Properties:
49.6％

60.0%

Shinjuku May nds Tow er Occupancy Rate

40.0%

Shinjuku May nds Tow er Ex pected Occupancy Rate

20.0%
0.0%
4th FP 5th FP 6th FP 7th FP 8th FP 9th FP 10th FP 11th FP 12th FP 13th FP 14th FP 15th FP

Appraisal
Appraisal Value
Value ofof Shinjuku
Shinjuku Maynds
Maynds Tower
Tower andand EE SPACESPACE TOWER
TOWER(mil yen) Shinjuku Maynds Tower
110,000(mil yen)
27,000EE SPACESPACE TOWER
TOWER Occupancy
Occupancy RateRate

E SPACE TOWER
100.0%
100%

108,000

26,000+2.0Bil yen+0.1Bil yen

25,000104,000+1.8Bil yen

100.0% 100.0% 100.0% 100.0% 100.0% 96.5% 100.0% 100.0% 100.0%

89.60%

80%
60%

106,000

92.8%

40%

E SPACE TOWER Occupancy RateE SPACE TOWER Ex pected Occupancy Rate

Cap:4.0％ Cap:4.0％ Cap:4.0％
20%
24,000102,000

Cap:4.4％

Cap:4.3％ Cap:4.3％

0%
4th FP 5th FP 6th FP 7th FP 8th FP 9th FP 10th FP 11th FP 12th FP 13th FP 14th FP 15th FP

100,000

23,00011th FP

12th FP

13th FP

Acquisition 12th FP
price

13th FPThis 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

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.
Î Enhance property recognition with up-to-date information.
Implement face-to-face leasing by visiting with regularly-updated vacancy information and property information.

Leasing
Leasing Activities
Activities（Case)

100

Number of Inquiries from potential tenants(left axis)

100%

Number of new contracts(left axis)
Occupancy Rate (right axis)

75

95%

50

90%

25

85%

0

80%

█ 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.

█ Measures to reduce costs
Î Maintain the fair cost and price level by introducing the principle of competition and continue to look into theconstruction cost of heat light and water and management cost.

2011/122012/01

2012/02

2012/032012/04

2012/05█ Implement strategic renewals aimed at boosting competitivenessÎ Scrutinize construction content and ensure appropriate construction costs.
Î Implement environmentally friendly construction and equipments for existing properties.

█ 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.

Strengthen
Strengthen collaboration
collaboration with
with leasingleasing agentsagentsCurrently work with
about 100 agents

Furthermore, reinforce
the collaboration withother new 100 agentsThis 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

Properties Focused on Leasing in the 13th FP█

Daiwa Sarugakucho
100.0 (%)

100.0

100.0

█

Daiwa Kyobashi

100.0 (%)
88.6

50.0

0.0
2011/50.0
2011/110.0
2011/5

Daiwa Sarugakucho on March 2012 and the occupancy rate of Daiwa
Sarugakucho recovered to 100%.

 The occupancy rate is expected to be up to 100% in the near future.

█(%)

2012/5

Japan Earthquake, but Daiwa Kyobashi started to recover by appealing
the convenient location and high aseismic capacity.

 The new tenant who meets the characteristics of local area, moved in

100.0

2011/11

 This occupancy rate had remained low due to its ages after the Great East

the property in September 2011.Occupancy rate was down to 0.0%.

Sunline No.7

42.1

2012/5

 Former tenant, to whom the entire building was being leased, vacated

█

53.7

50.0

Daiwa Jimbocho
100.0

(%)

100.0

100.0

88.4
79.7
68.1
50.0

50.0
20.6

0.0

0.0
2011/5

2011/112012/5

 The tenant, subsidiary of foreign company, vacated in June 2011 due

to withdrawal of its business from the Japanese market.
 The occupancy rate recovered by appealing the convenient locationand its property design.

7.4

2011/5

2011/112012/5

 Main tenant vacated in January 2012 due to improvement of its businessefficiency and the occupancy rate was down to 7.4%.
 The occupancy rate is recovering by appealing the convenient locationand property design and expected to be up to 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.

16

Properties Subject to Leasing Improvement██

Daiwa Kudan

Daiwa Jimbocho█

BPS Square 1-minute walk from Jinbocho Stationon the Tokyo Metro Hanzomon
Line ,Toei Subway Mita Line and Toei
Subway Shinjuku Line.

 1-minute walk from Kudan Station on

the Tokyo Metro Tozai, Hanzomon
Line ,Toei Subway Shinjuku Line.

2

whose head quarter is in the areaof “Around Tokyo Station” or“Ginza”

Shinjuku and Shibuya

for office buildings due to theconvenient access using 3 subways.

Kudan Minami 1chome, Chiyoda-ku, Tokyoon the Tokyo Metro Hibiya Line.
 Located in the affiliated companies

 The convenient access to Otemachi,

 Located in the area with high demand

Address

 1-minute walk from Tsukiji Station

 Located in the area with middle

offices, many universities, various
types of schools andAddress

Kanda Jimbocho 2chome, Chiyoda-ku, Tokyo
2

Address

Tsukiji 2chome,Chuo-ku, Tokyo
2

Site Area

540.67m

Site Area

598.04m

Site Area

464.81m

Structure

SRC

Structure

S

Structure

SRC

Floor

9F

Floor

10F

Use

OfficeUse
Total Floor
Area
Occupancy
Rate

Office / Parking / Store

Completion

March 1987

2

3,679.70m

Floor

B1/8F

Use

Office / Parking

Total Floor
Area
Occupancy
Rate

88.0%⇒39.6% (June 2012)

Completion

 The main tenant vacated the property during the 14th

Fiscal Period due to improvement of its businessefficiency and the occupancy rate is expected to be down
to 39.6%.
 DOI has appealed the convenient access using 3

subways, and implemented renewal construction. DOI
aims to recover the occupancy rate as soon as possible.

2

4,247.18m
20.6%

March 1997

 The main tenant vacated the property during the 13th

Fiscal Period due to improvement of its businessefficiency and the occupancy rate fell considerably.
 DOI has appealed the convenient access using 3

subways. DOI aims to recover the occupancy rate assoon as possible.

Total Floor
Area
Occupancy
Rate
Completion

22,902.92m
0.0%January 1996

 The tenant, occupied 100% of this bldg, vacated theproperty during the 13th Fiscal Period due to its
business slump.
 DOI has appealed easy access to “Tokyo Station” and“Ginza”. DOI aims to recover the occupancy rate assoon as possible.

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Strategic Renewals Aimed at Improving in Building
Competitiveness█ Capital Expenditures implemented in the 13th Fiscal Period■ Common area Renovation

Name of real estate
properties

Purpose

Implementation
periodTotal Amount(million yen)

Shinjuku Maynds Tower

Construction work of
Introduction of heatsource2011/12～2012/5

245

Daiwa Nishi-Shinbashi

Construction work for energy
conservation

2011/8～2011/12

131

Daiwa Jinbocho

Renovation work for commonarea

2012/1～2012/2

40

Construction work for value-up
2011/12～2012/1
on 5F

10

Nihonbashi MS building█ Capital Expenditures for the 14th Fiscal Period
Name of properties

PurposeScheduled
implementation
periodTotal Amount(million yen)

Daiwa Sarugakucho

Renovation work for commonarea

2012/3～2012/6

187

BPS squareConstruction work for updating
2012/7～2012/9
package air conditioners

75

Shinjuku Maynds Tower

Construction work for iron2012/9～2012/11
parts paint of roof (east side)

40

Construction work for
Shinjuku Maynds Tower installation of CT soundproofwall
Daiwa A Hamamatsucho

Updating package air
conditioners

2012/6～2012/8

36

2012/7～2012/11

32

Daiwa Jimbocho(Before)■ Introduction of heat source

Shinjuku Maynds Tower■ Construction work for Value-up on 5F

Nihonbashi MS building(After)■ Installation of CT soundproof wall

Shinjuku Maynds Tower■ Construction work for energy conservation

Daiwa Nishi-Shinbashi■ Entrance Renovation■ Common area Renovation

Daiwa Sarugakucho

Daiwa SarugakuchoThis 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

Actions Taken for Environmental Efforts█ Shinjuku Maynds Tower: Introduction of heat source
to get its cool water for air-conditioning by itself ,which is provided by thedistinct heating and cooling corporation. The heat source started to work in
June 2012. Concerning introduction of heat source DOI uses the ESCO
service so that the installer maintains the equipments and guarantees thesaving cost. As a result, Shinjuku Maynds Tower is estimated to cut
approximately 833t-CO2/ year. Additionally Shinjuku Maynds Tower is
expected to achieve the goal of CO2 emission reduction based on Tokyo

CO2 Emmision(t-CO2)

DOI introduced the individual heat source in Shinjuku Maynds Tower in order
11,50011,00010,50010,000
9,500
9,000
8,500
8,000

Image of CO2 emission reduction Gurantee reduction
after introduction of heat source of 833t-CO2/year

environment protection ordinance for Shinjuku Maynds Tower.

BoforeAfter(Photo) Shinjuku Maynd Tower / Heat source█ E SPACE TOWER : Achievement of the certification of SMBC Sustainable Building Assessment Loan
DOI achieved the ranking of “Silver” in the evaluation of SMBC Sustainable Building Assessment Loan because of the high evaluation for the
implementation of sustainable management policy, the sustainable utilization of the site, the interior environment and water-saving. SMBC Sustainable
Building Assessment Loan is a financing product based on the assessment of buildings owned or constructed by companies for such as 1) theenvironmental 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) E SPACE TOWER█ Daiwa Real Estate Asset Management : Joining Green Purchasing Network etc.
Daiwa Real Estate Asset Management to which DOI entrust its asset management operations joined Green Purchasing Network to
reduce stress on the environment by promoting green purchasing, i.e. buying the least environmentally-impacting products available. And
Daiwa Real Estate Asset Management established “Green Purchasing Guideline”.
Daiwa Real Estate Asset Management is a memberof Green Purchasing Network

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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 the Investment Corporation 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%
350.0

350
59.0%
300

54.4%

60.8%

54.4%

250

Total Acquisition Price200

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

150
100

79.5

313.3

311.3
54.0%

52.2%

287.0

283.4

265.0

265.0

265.0

269.1

278.1

287.3

60%
42.3%
35.3%

22.6%

26.4%

27.4%

26.9%

29.8%

35.6%

30.0%

50%
40%
30%
20%

Invest competitive properties
screened carefully

50

70%

10%

0

0%
Listed1st
Period2nd
Period3rd
Period4th
Period5th
Period6th
Period7th
Period8th
Period9th
Period10th
Period11th
Period12th
Period13th
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.

21

Acquisition of Properties Under Review█ Number of Property Acquisition under review（case）（case）

600

100
Number of properties under review（ left axis）

500█

Property Selling stance by industries
Current

General BusinessCompanies

Number of properties under detailed review（ right axis）

Developers

Lenders, etc.

9Continuing refinance

9Expansion of demands for decreasing in risk
asset (by the impact of Basel regulations etc.)

9Continuing refinance
9Postpone the term of equity andsenior loan due to expensive bookvalue

9Possibility to sell the properties by changing thelenders’ stance
9Potentiality to sell properties by confirming theloss of equity investors

Individuals, andlow demand for selling
Small- to Medium- 9Relatively
properties
sized Business 9Few appropriate properties for REIT
Companies

9 Chance to sell properties from individuals whoneed to gain cash

50
Funds

44
200
32

35
30

CMBS

9Continuing refinance
9Selling some properties by seniorlenders and servicer stages after
default

9Expansion of demands for decreasing in risk
asset (by the impact of Basel regulations etc.)
9Potentiality to sell properties from the seniorlender stage
9Chance to close the sell by gradual low price

Insurance

9Mainly selling regional properties
9Deciding at the bid price in manycases

9Potentiality to change the selling stance
9Expecting to sell properties in the core area
depending on the price and proposal

100

0

0
10th FP

11th FP

12th FP

13th FP

9 Expecting to sell properties by businessrecovering
9 Chance to sell properties to focus on corebusiness

9Expecting to sell developed properties byrecovering occupancy rate
9Delay in recovering occupancy rateof the developed properties
9Expecting to sell properties after booking of
impairment loss
9Without sales due to expensive bookvalue
9Possibility to sell properties to improve cash flow
for future developments

400

300

9Decrease in needs for off-balanced
9Decrease in needs to sell propertiesof expensive book value due to theslump

Future* The number of gross proposals
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.

22

Recent Property Acquisition
Nihonbashi Hongokucho Tosei Building

The Site of Daiwa Sarugakucho

Acquisition Price :1,721million yen (Settlement Date: May 11,2012)

Acquisition Price :190million yen ( Settlement Date: March 30,2012)

Location

4-2-16 Nihonbashi Hongokucho Chuo-ku, Tokyo  Traffic Accessibility

Site Area

393.01㎡

Structure

Steel construction with 8 stories above ground

Floor

8F

Total Floor Area

2,386.51㎡

Appraisal Value

1,810 million yen (at the time of Acquisition)

Construction Date May 25,2010
Occupancy Rate

100.0％ (ended May 2012)

A 4-minute walk to “ Kanda” Station on the JR Chuo,
Yamanote, Keihin-Tohoku Lines and Tokyo Metro Ginza LineA 6-minute walk to “Otemachi” Station on Tokyo Metro
Marunouchi, Chiyoda, Tozai and Hanzomon Lines and Toei
Mita Line.
 Characteristics

Located in the area building relatively small offices andmany SME offices and keeping a high office demand fora long term.

Location

2-13-10 Sarugakucho Chiyoda-ku, Tokyo

Site Area

858.47㎡

Type of Specified Assets

Real Estate

Ownership Form

Ownership

Appraisal Value

269million yen（ at the time of Acquisition）

 Traffic Accessibility

A 6-minute walk to Suidobashi” Station on the JR Sobu Line and a 7 walk to“Jimbocho” Station on the Tokyo Metro Hanzomon, and Toei Mita andShinjuku Lines.
 Reason for the acquisition

The aim of acquisition of the site in Daiwa Sarugakucho is to raise the asset
value. As the reslut, its appraisal value increased by 600 million yen
because of acquiring the site and recovering the occupancy rate. By owning
both Daiwa Sarugakucho and its site, the liquidity of Daiwa Sarugakucho isconsidered to be improved.

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

Portfolio and Acquisition Policy█ Acquisition Policy

Distribution
Distribution Chart
Chart ofof Portfolio
Portfolio Properties
Properties

 Investing heavily in the five central wards of Tokyo and equivalent area.

(Total Floor Area (㎡)Portfolio Properties

120,000

 For the time being, invest heavily in younger A class buildings and younger B class buildings (1)within 20 years of building age.
 Aim to improve stability and profitability of our portfolio by achieving new buildings
 Consider property replacement, such as selling Zone (2) properties and purchasing Zone (1)properties.

A Class Buildings

100,000

Investment
Investment Ratio
Ratio

Shinjuku Maynds Tower

Area
Area
80,00055Central
CentralWards
Wards
Tokyo
Tokyo
Metropolitan
Metropolitan
Regional
RegionalCities
CitiesInvestment Target

60,000█ Amendent of the Asset Management Guidelines

Ratio
Ratio
92.3%
6.2%

( Clarification of Investment Target Asset)

1.5% In the case of those intended for other uses but readily convertible to office (like educational
institution and data center), such properties may be set as a target of investment as those used as
offices.

Classification
Classification
Ａ
Class
ＡClass

Ratio
Ratio
42.7%

Ｂ
Class
ＢClass57.3%

 In cases where several real estate can be used an integrated manner in socioeconomic terms,
properties with leasable floor area of the office portion accounting for over 50% of the total leasable
floor area shall be set as a target of investment(Review of Investment Target Area)

40,000 The ratio of investment in 5 Central Wards of Tokyo continues to be over 60%(1)
E SPACE TOWER

 The ratio of Tokyo Metropolitan will be changed from under 20% to under 40% to enhance theflexibility of investment in Tokyo Metropolitan

B Class Buildings

20,000(Clarification of investment in Silent partnership equity interests or Real Estate Backed
Securities, etc.)(2)

 By clarifying the investment in silent partnership equity interests or real estate backed securities, etc.,
the chances to acquire properties shall be expanded

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㎡

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

Properties Acquired after Sponsor Change
Acquisition time 9th Fiscal Period

Property nameDaiwa Jimbocho

10th Fiscal Period
Daiwa NishiShimbashi

Daiwa Kudan

11th Fiscal Period
Daiwa Kayabacho
Building

Jimbocho Place

12th Fiscal
Period13th Fiscal
PeriodE SPACE TOWER

NihonbashiHongokucho
Tosei Build

Total

Address

Acquisition Price

SellerKanda Jimbocho, Nishi-Shimbashi,
Chiyoda-ku, Tokyo Minato-ku, Tokyo
4,150
million yen
ORIX JREIT Inc.

5,000
million yen

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

NihonbashiKayabacho,
Chuo-ku, Tokyo
5,600
million yen

Japan Core Asset II Shining Nova the Fifth Daiwa Property Co.,
Ltd.
B TMK
Ltd.

Kanda Jimcocho, Maruyamacho
Chiyoda-ku, Tokyo Shibuya-ku, Tokyo

NihonbashiHongokucho,
Chuo-ku, Tokyo

－

3,550
million yen

24,000
million yen

1,721
million yen

48,021
million yen

Tokyu Land
Corporation

Endeavor Realty
Fund Ltd.

Tosei Corporation－

Acquisition date

March 10, 2010

August 13, 2010

September. 2, 2010

March 25, 2011

March 29, 2011

July 8, 2011

May11,2012－

Building age
at the time ofacquisition

13.0years

17.0years

23.4years

0.9years

1.1years

8.7years

2.0years

9.4years*

NOI yield
at the time ofacquisition

6.0％

5.5％

5.3％

5.1％

5.1％

4.8％

5.3％

5.1％*

* Building age and NOI yield at the time of acquisition is calculated by the weighted average acquisition priceThis 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Section 4
Financial Strategy

Status of Interest-bearing Liabilities (1)Loan
Loan toto Value
Value Trend
Trend

Ratio
Ratio ofof Long-toLong-to Short-Term
Short-Term Borrowings
Borrowings（Billion yen）

280

70%

12th Fiscal Period

13th Fiscal Period

Interest-bearing Liabilities
240

LTV (based on acquisiton price)
Expected LTV

200

20.0%

60%

32.3%

50%

Upper limit range LTV in themedium-term target

80.0%

67.7%

160

40%

120

30%

80

20%

40

10%

0

0%

Long-term borrowings

Current position of long-term borrowings

Ratio
Ratio ofof Fixed
Fixed –– toto Floating
Floating Borrowings
Borrowings
12th Fiscal Period

13th Fiscal Period

15.7%

28.2%

84.3%

1s
t

P
2n erioddPe
3r rioddP
4t eriohdP
5t eriohdPe
6t riodhP
7t eriohdPe
8t riodhP
9t eriohdP
10 erith od
11 Perth iodP
12 erith od
13 Perth iod
Pe
ri o
d

71.8%

* LTV( based on acquisition price) ＝Total interest-bearing liabilities / Total acquisition price ofproperties held at the end the Fiscal Period

Fixed interest

Floating interest※By swap transactions, loans of more than 1.5 years remaining period becomes all fixed 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.

27

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

Debt
Debt Cost
Cost Rate*
Rate* (annualized)(annualized)(Million yen）
25,000

6.0%

1,000

5.0%

20,000

3,500

2,000

4.0%
1,700

41
15,000
3,925
6,000

10,000

3.0%
8,500

8,900

19,60019,000 2,500

2.0%
5,000
11,843
2,000

5,000

5,000

1.0%

5,481

6,500
3,000

◆

Expected Debt Cost Rate

3,500
2,000

0.0%

0
13th FP 14th FP 15th FP 16th FP 17th FP 18th FP 19th FP 20th FP 21th FP 22th FP 23st FP
May
Nov.
May.
Nov.
May.
Nov.
May.
Nov.
May.
Nov.
May.
2012
2012
2013
2013
2014
2014
2015
2015
2016
2016
2017

28th FP
Nov.
2019

Pe
2n rioddPe
3r rioddPe
4t riodhPe
5t riodhPe
6t riodhPe
7t riodhPe
8t riodhPe
9t riodhP
10 erith odP
11 eriothdP
12 erith odP
13 eriothdP
14 erith odP
15 erio
th
d
Pe
rio
d

1,000

4,000

Debt Cost Rate

1s
t

5,000

◆

* Debt Cost Rate (annualized): (Interest Expense + Financial Related Expenses)/ Interestbearing 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.

28

Status of Interest-bearing Liabilities (3)█ List of Interest-bearing Liabilities
TypeInterest
Rate (%)

Date ofadvanceDue date

Sumitomo Mitsui Banking Corporation.

4,887.50 Fixed

1.81%

09/9/18

12/9/18

Sumitomo Mitsui Trust Bank, Ltd.

3,421.25 Fixed

1.81%

09/9/18

Dev elopment Bank of Japan, Inc.

2,587.50 Fixed

1.54%

09/9/18985.00 Fixed

1.81%

Sumitomo Mitsui Trust Bank, Ltd.

1,962.50 Fixed

Taiy o Life Insurance Company .

TypeInterest
Rate (%)

Date ofadvanceDue date

Shinsei Bank, Ltd.(*)

1,000.00 Fixed

0.97%

11/7/8

14/7/8

12/9/18

Resona Bank, Limited.(*)

3,000.00 Fixed

0.88%

11/8/31

15/2/27

12/9/18

Dev elopment Bank of Japan, Inc.

3,000.00 Fixed

1.09%

11/9/30

15/3/31

09/9/18

12/9/18

Shinsei Bank, Ltd.(*)

2,000.00 Fixed

0.89%

11/9/30

15/3/31

1.79%

09/11/30

12/11/30

Dev elopment Bank of Japan, Inc.

1,700.00 Fixed

1.02%

12/5/11

17/5/10981.25 Fixed

1.79%

09/11/30

12/11/30

Dev elopment Bank of Japan, Inc.

6,500.00 Fixed

1.02%

12/5/21

17/5/22

The Gunma Bank, Ltd.

981.25 Float

T+1.00%09/11/30

12/11/30

Sumitomo Mitsui Banking Corporation.(*)

0.86%

12/5/21

17/5/31

ORIX Bank Corporation.

4,000.00 Fixed

1,000.00 Float

T+0.40%11/7/8

13/1/10

Sumitomo Mitsui Trust Bank, Ltd.(*)

12/5/21

17/5/313,500.00 Float

T+1.00%10/2/26

13/2/28

3,000.00 Fixed

0.85%

Aozora Bank, Ltd.

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

The Shizuoka Bank, Ltd

0.85%

12/5/21

17/5/311,000.00 Float

T+1.00%10/2/26

13/2/28

1,500.00 Fixed

The Kagaw a Bank Ltd.

Shinsei Bank, Ltd.(*)

12/5/21

16/5/31

T+1.00%10/2/26

13/2/28

2,000.00 Fixed

0.75%

985.00 Float

Mizuho Corporate Bank, Ltd. (*)

2,000.00 Fixed

0.67%

12/5/21

15/5/29500.00 Fixed

0.67%

12/5/21

15/5/29

Lender

The 77 Bank Ltd.

Total current maturities of long term borrow ings

TermLong term borrowings

Current maturities of long term borrowings

Term

Long term borrowings

Balance(million yen)

(As of May 31, 2012)

22,291.25

LenderThe Bank of Yokohama,Ltd.(*)

Balance(million yen)

Kansai Urban Banking Corporation.

5,000.00 Fixed

0.98%

11/6/30

13/6/28

Sumitomo Mitsui Trust Bank, Ltd.(*)

5,000.00 Fixed

0.87%

11/7/8

13/7/8The Bank of Fukuoka, Ltd.(*)

1,000.00 Fixed

0.87%

11/7/8

13/7/8

Shinsei Bank, Ltd.

2,000.00 Float

T+0.90%10/9/2

13/7/31

The Bank of Fukuoka, Ltd.

2,000.00 Float

T+0.85%

10/9/30

13/9/30

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

Resona Bank, Limited.(*)

2,000.00 Fixed

1.04%

11/3/18

14/3/18

Resona Bank, Limited.(*)

2,000.00 Fixed

1.04%

11/3/25

14/3/18

Sumitomo Mitsui Banking Corporation.(*)

2,000.00 Fixed

0.96%

11/3/25

14/3/25

Mizuho Corporate Bank, Ltd. (*)

4,900.00 Fixed

0.77%

11/9/30

14/3/31

Mitsubishi UFJ Trust and Banking Corporation.

3,000.00 Fixed

0.96%

11/9/30

14/3/31

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

14/7/8Long-termNo. 1 Unsecured and Subordinated3,500.00 Float

Interest
Rate(%)
T+2.40%Mizuho Trust and Banking Co., Ltd.(*)

3,000.00 Fixed

0.97%

11/7/8

14/7/8Long-termNo. 2 Unsecured Inv estment Corporation

5,000.00 Fixed

1.87%

Aozora Bank, Ltd.(*)

1,500.00 Fixed

0.97%

11/7/8

14/7/8

Total inv estment corporate bonds

8,500.00

Total long-term borrow ings

80,600.00

Total borrow ings

102,891.25

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
Term

LenderBalance(million yen)

(As of May 31, 2012)Type

Date ofadvanceDue date

09/9/17

19/9/17

10/6/24

13/6/24

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

Status of Interest-bearing Liabilities (4)█Borrowing Total by Financial Institution
The
Fiscal Period
Period (ended(ended May
May 2012)
2012)
The 1313thth Fiscal
Name of Financial Institution

The
The 77thth Fiscal
Fiscal Period
Period (ended(ended May
May 2009)
2009)（Before Change of Sponser）

Balance(million yen)

Share

Period over
PeriodSumitomo Mitsui Banking
Corporation.

24,38721.9%+19.5%Development Bank of Japan.

13,78712.4%+143.5%

Sumitomo Mitsui Trust Bank, Ltd.

13,38312.0%+28.6%

Shinsei Bank, Ltd.

8,000

7.2%

+33.3%

Resona Bank, Limited.

7,000

6.3%

0.0%

Mizuho Corporate Bank, Ltd.

6,900

6.2%

+40.8%

Aozora Bank, Ltd.

5,000

4.5%

-79.7%

Kansai Urban Banking Corporation.

5,000

4.5%

0.0%

Mizuho Trust and Banking Co., Ltd.

4,500

4.0%

+50.0%

Mitsubishi UFJ Trust and Banking
Corporation.

3,000

2.7%

0.0%

The Bank of Fukuoka, Ltd.

3,000

2.7%

0.0%

ORIX Bank Corporation.

2,500

2.2%

0.0%

Aozora Bank, Ltd.
Shinsei Bank, Ltd.
GE Japan Corporation.
Kansai Urban Banking Corporation.
American Life Insurance Company
Resona Bank, Limited.
Mizuho Bank, Ltd.
UBS Securities Japan Ltd.
Sompo Japan Insurance Inc.
The Iyo Bank, Ltd.

BalanceShare(million yen)
25,10035.8%
12,100
17.3%
5,937
8.5%
5,500
7.9%
5,000
7.1%
5,000
7.1%
4,925
7.0%
2,850
4.1%
2,470
3.5%
0.8%
570

Century Tokyo Leasing Corporation.

570

0.8%

The Gunma Bank, Ltd.

1,981

1.8%

-0.2%

70,022100.0%The Shizuoka Bank, Ltd

1,000

0.9%

0.0%

The Kagawa Bank Ltd.

985

0.9%

-0.4%

The 77 Bank Ltd.

985

0.9%

0.0%

Taiyo Life Insurance Company.

981

0.9%

-0.4%

The Bank of Yokohama, Ltd.

500

0.4%

―

Investment corporation bonds.

8,500

7.6%

0.0%

111,391

100.0%+1.3%

Name of Financial Institution

Total（*） Balance is rounded down to less than million yen.

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.

30

Unitholders█ Unitholders’ Share by Investor Type

Investor Type

Individuals

12th Fiscal
PeriodNumber ofUnit
37,32613th Fiscal
PeriodNumber ofUnit
37,409█ List of Top 10 Investors
Change ofUnit

83

133,482

7,174

33.72%

Commercial Bank

0

0

0

0.00%

Regional Bank

1,534

1,602

68

0.40%

Trust Bank

118,524

130,789

12,26533.04%

Life Insurance

Investor Name

1

Daiwa Investment Management Inc

0

128,905

128,905

32.57%

2

Japan Trustee Services Bank, Ltd.
(Trust Account)

58,51470,15911,64517.73%

3

Daiwa Securities Group Inc.

51,89351,8930

13.11%

4

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

27,78824,574-3,214

6.21%

5

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

22,65823,674

1,016

5.98%

7,878

10,740

2,862

2.71%

9.45%

126,308

Rate*

No.
Rate*

Financial Institutions

12th Fiscal 13th Fiscal
PeriodPeriodChange of
Unit
Number of Number of
Unit
Unit

438

607

169

0.15%

5,369

0

-5,3690.00%

6The Master Trust Bank of Japan, Ltd.
(Investment Trust Account)

443

484

41

0.12%

7

JP Morgan Chase Bank 380180

0

8,392

8,392

2.12%

Other Domestic Corporation

132,560

131,832-728

33.31%

8

Nomura Bank (Luxembourg) S.A.

6,548

4,428

-2,1201.12%Foreigner

44,577

38,833-5,744

9.81%

9

Individuals

2,926

2,917

-9

0.74%

Securities

55,02754,242-785

13.70%

395,798

395,7980

100.00%10

The Bank of New York, Treaty Jasdec
Account

2,478

2,515

37

0.64%

Non-life Insurance
Other Financial Institutions

Total（*）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.

31

Activities in the 14th Fiscal Period█

Internal Growth → “Bonji-Tettei”「Accomplishing ordinary tasks thoroughly and carefully enables us to achieve extraordinary results.」
¾
¾
¾

█

External Growth →
¾
¾
¾

█

Increasingly strengthen collaboration with various agents to improve occupancy rate through lease-up, implement prompt and smoothleasing and enhance property recognition with up-to-date information .
Prevent cancellations by strengthening relations with existing tentans.
Implement strategic renewal investments aimed at enhancing property value , reduce cost and strengthen collaboration with Daiwa
Securities Group.

Proactively invest in competitive properties after thorough consideration

LTV (based on acquisition price) at the end of the 13th Fiscal Period was 35.6%. By taking advantage of the low LTV, expeditiously
acquire 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):
42.3%).
Strive to improve the 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 in risk of rising interest rates by controlling debt cost and borrowing a long-term loan

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Section 5
AppendixSummary of Results for the 13th Fiscal Period (1) ~Balance Sheet~█ Comparison with Results of the 12th Fiscal Period
12th Fiscal Period
As of Nov.30, 2011
Million Yen
Current Assets(% )16,966

Million Yen
5.2%

12th Fiscal Period
As of Nov.30, 2011(% )17,432Million Yen
Current Liabilities

5.4%

10,818

11,504

Operating Accounts Payables

Cash and Deposits in Trust

5,416

5,296

Current Portion of Long-term Loans Payable

84

Other Current Assets

646

Building and Others (including Trust Property)
Land and Others (including Trust Property)
Other Tangible Fixed Assets
Intangible Fixed Assets
Leasehold Rights and Leasehold Rights in Trust
Other Intangible Fixed Assets
Investments and Other Assets

－

261

631

Advances Received

862

876

94.7%

307,858

94.6%

93.1%

304,634

93.6%

56,829244,177

247,785

17

24
1.5%

2,720

4,970

2,713

6

6

314

0.1%

502

Leasehold and Security Deposits Paid in Trust

113

113

Long-term Prepaid Expenses

190

368

Other Investments and Other Assets
Deferred Assets

10
33

Investment Corporation Bond Issuance Costs
Total Assets

33
323,217

0.8%

25

Other Current Liabilities
Fixed Liabilities

8,500

8,500

65,88180,600Tenant Leasehold and Security Deposits

6,250

6,024

Tenant Leasehold and Security Deposits in Trust

4,598

4,592

1

13

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

0.0%

99,730Investment Corporation Bonds

Total Liabilities and Net Assets

122,669

7.6%

443
26.4%

Long-term Loans Payable

Total Liabilities
0.2%

183
85,232Other Fixed Liabilities

21
0.0%

911
22,291300,926

4,977

24,785546

309

306,21756,731(% )35,535Net Assets

Tangible Fixed Assets

11.6%

Million Yen

Accounts Payables-Other

Liabilities

Consumption Taxes Receivable

13th Fiscal Period
As of May.31, 2012(% )37,437

Cash and Deposits

Fixed Assets

Assets13th Fiscal Period
As of May.31, 2012

38.0%

30.7%

124,515

198,780

198,780

1,767

2,021

－

-2

38.3%

200,54862.0%

200,800

61.7%

323,217100.0%

325,315100.0%

25
100.0%

325,315100.0%

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.

34

Summary of Results for the 13th Fiscal Period (2) ~Income Statement~█ Comparison with Results of the 12th Fiscal Period█ Comparison with the 13 Fiscal Period Forecasts

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

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

12th Fiscal Period
As of Nov.30, 2011
36
183

13th Fiscal Period
As of May.31, 201237
183

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

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

13th Period Forecast( Jan. 13, 2012)36
183

13th Period(May. 31, 2012)
37
183

ChangeOperating Revenues (A)

7,605

7,431

-174

Operating Revenues (A)

7,269

7,431

+162

Gain on Sale

―

―

―

Gain on Sale

―

―

―

Operating Expenses (B)

4,288

4,341

+ 52

Operating Expenses (B)Expenses related to Rental Business(excluding depreciation)

2,123

2,165

+ 41

Depreciation

1,347

1,367

+ 19

4,264

4,341

+77

Expenses related to Rental Business(excluding depreciation)

2,085

2,165

+79

Depreciation

1,376

1,367

-9

-235

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

3,806

3,898

+92

3,090

-226

Operating Income (A-B)

3,004

3,090

+85

1,560

1,080

-480

Non-operating Expenses

1,082

1,080

-2

Interest Expense (including cap amortization)

858

800

-58

Interest Expense

806

800

-6

Borrowing expenses

692

266

-426

Borrowing expenses

266

266

+0

1,767

2,022

+254

Ordinary Income

1,921

2,022

+100

Extraordinary Income

―

32

+32

Extraordinary Income

―

32

+32

Extraordinary Expenses

―

32

+32

Extraordinary Expenses

―

32

+32

1,766

2,021

+254

Net Income

1,919

2,021

+101

395,798口

395,798口―

395,798口

395,798口

―

4,464

5,107

+ 643

4,850

5,107

+ 257

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

4,134

3,898

Operating Income (A-B)

3,317

Non-operating Expenses

Ordinary Income

Net Income
Investment Units Issued and Outstanding
Dividend per Unit (Unit: Yen)

Investment Units Issued and Outstanding
Dividend per Unit (Unit: 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.

35

Forecasts (the 14th and 15th Fiscal Period)█ Forecast for the 14th and 15th 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

13th Period(May 31, 2012)37
183

14th Period Forecast 15th Period Forecast(Nov. 30, 2012)(May. 31, 2013)
37
37
183
182

7,431

7,413

7,080

―

―

―

4,341

4,439

4,156

Expenses related to Rental Business(excluding depreciation)

2,165

2,314

2,132

Depreciation

1,367

1,304

1,229

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

3,898

3,794

3,717

Operating Income (A-B)

3,090

2,973

2,923

Non-operating Expenses

1,080

794

744

Interest Expense

800

645

612

Borrowing expenses

266

135

120

2,022

2,179

2,179

Extraordinary Income

32

―

―

Extraordinary Expenses

32

―

―

2,021

2,177

2,177

395,798口

395,798口

395,798口

5,107

5,500

5,500

Operating Revenues (A)Gain on Sale
Operating Expenses (B)Ordinary Income

Net Income
Investment Units Issued and Outstanding
Dividend per Unit (Unit: Yen)

* 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.

36

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

Unit

9th Period 10th Period 11th Period 12th Period 13th Period

Day

182

183

182

183

183

Property

31

33

35

36

37

%

85.7

95.9

95.4

92.4

94.3

Average acquisition priceMillion yen

266,937

274,167

281,535

306,492

311,607

NOI (after deduction of gain on sale)

Million yen

4,922

4,465

4,873

5,482

5,265

Funds from operation (FFO)

Million yen

3,261

2,518

2,734

3,114

3,388

Return on asset (ROA)

%

1.3

0.9

1.1

1.1

1.2

Return on equity (ROE)

%

2.1

1.3

1.5

1.8

2.0

Capital adequacy ratio at end of period

%

70.8

67.9

67.1

62.0

61.7

Loan-to-Value (LT V) at end of period

%

25.5

28.1

28.9

34.0

34.2

 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.

37

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

3.2%

E SPACE TOWER

6,336.26

3.2%

Trend Micro Incorporated

Shinjuku Maynds Tower

6,309.84

3.2%

Not disclosed *Daiwa Kayabacho Build.

5,899.11

3.0%

Daiwa Onarimon

5,100.06

2.6%

EMC Japan

Shinjuku Maynds Tower

4,980.78

2.5%

Sekisui House, Ltd.

Shinjuku Maynds Tower

4,498.57

2.3%

UCC Holdings Co., Ltd.

Not disclosed *Shinjuku Maynds Tower

4,316.90

2.2%

Not disclosed *Shinjuku Maynds Tower

4,114.50

2.1%

Not disclosed *Daiwa Sarugakucho

3,657.43

1.8%-

51,593.33

26.3%

Total

(As of May 31, 2012)

Other
16.2%
Foods
3.6%
Construction
3.7%
Retail Trade
4.0%
Precision
Instruments
4.4%
Banks
5.0%

Services
29.8%

Information &Communication
17.4%

wholesale
Real Estate
7.4%
8.6%

* The leased space of top 100 tenant covers 73.0% of total leased space as of theend of the 13th 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.

38

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

Property Name

Appraisal Value at
End of 12th Period

Appraisal Value at
End of 13th Period(Nov.30, 2011)(May 31, 2012)

Compared to
End of 12th Period
Difference

ChangeMajor*
ReasonAcquisition
Price

Compared to
Acquisition Price
Difference

ChangeCap Rate
12th Period 13th Period

Daiwa Ginza

13,90014,000+100

0.7%

14,100

-100

-0.7%

4.6%

4.5%

Daiwa Ginza Annex

2,860

2,960

+100

3.5%

3,050

-90

-3.0%

4.5%

4.4%

Daiwa Shibaura

7,380

7,400

+20

0.3%

8,265

-865

-10.5%

5.1%

5.1%

Daiwa Minami Aoyama

3,970

3,930

-40

-1.0%

4,550

-620

-13.6%

4.9%

4.8%

Daiwa Sarugakucho **

2,120

2,720

+600

28.3%

3,190

-470

-14.7%

5.3%

5.3%

Daiwa A Hamamatsucho

2,870

2,870

-

0.0%

2,865

+5

0.2%

4.8%

4.8%

Daiwa Jingumae

2,010

1,930

-80

-4.0%

2,800

-870

-31.1%

4.7%

4.7%

Daiwa Shibadaimon

2,730

2,620

-110

-4.0%

2,578

+42

1.6%

4.7%

4.7%

Daiwa Misakicho

2,470

2,470

-

0.0%

2,346

+124

5.3%

5.1%

5.1%

Daiwa Shimbashi 510

2,250

2,320

+70

3.1%

2,080

+240

11.5%

5.2%

5.0%

BPS Square

1,560

1,510

-50

-3.2%

1,560

-50

-3.2%

5.3%

5.2%

Daiwa Tsukiji

1,370

1,420

+50

3.6%

1,240

+180

14.5%

5.2%

5.1%

Daiwa Tsukiji 616

2,400

2,400

-

0.0%

2,440

-40

-1.6%

5.0%

5.0%

Daiwa Tsukishima Bldg.

7,870

7,660

-210

-2.7%

7,840

-180

-2.3%

5.2%

5.2%

Nihombashi MS Bldg.

2,330

2,340

+10

0.4%

2,520

-180

-7.1%

5.0%

4.9%

Daiwa Azabudai

1,760

1,740

-20

-1.1%

1,600

+140

8.8%

5.0%

4.8%

Daiwa Shibuya SS

3,810

3,790

-20

-0.5%

3,930

-140

-3.6%

5.0%

4.8%

Daiwa Nihombashi Honcho

6,740

6,780

+40

0.6%

7,420

-640

-8.6%

5.1%

4.9%

Daiwa Ginza 1-chome

4,190

4,270

+80

1.9%

4,620

-350

-7.6%

4.8%

4.7%

(*) Major Reason : (1) Decrease in market rent (2) Increase in cap-rate (3) Increase in cancellation notices(**) As the occupancy rate of Daiwa Sarugakucho recovered due to tenant’s moving-in and DOI acquired the site of Daiwa Sarugakucho for 190 million yen, the appraisal value atthe end of 13th Fiscal Period increased.
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

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

Property Name

Appraisal Value at
End of 12th Period

Appraisal Value at
End of 13th Period(Nov.30, 2011)(May 31, 2012)

Compared to
End of 12th Period
Difference

ChangeMajor *
ReasonAcquisition
Price

Compared to
Acquisition Price
Difference

ChangeCap Rate
12th Period 13th Period

Daiwa Kyobashi

2,880

2,900

+20

0.7%

3,460

-560

-16.2%

5.0%

4.9%

Sunline Building No. 7

2,250

2,170

-80

-3.6%

2,680

-510

-19.0%

5.0%

4.8%

Daiwa Onarimon

14,40013,000-1,400-9.7%

13,860

-860

-6.2%

4.9%

4.7%

Shinjyuku Maynds Tower

106,000

108,000+2,0001.9%

133,800-25,800-19.3%

4.0%

4.0%

SHIBUYA EDGE

4,060

3,940

-120

-3.0%

5,900

-1,960-33.2%

4.6%

4.6%

Daiwa Kodemmacho

1,920

1,900

-20

-1.0%

2,460

-560

-22.8%

5.3%

5.2%

Daiwa Jimbocho

2,930

2,760

-170

-5.8%

4,150

-1,390-33.5%

5.2%

5.1%

Daiwa Nishishimbashi

5,600

4,860

-740

-13.2%

5,000

-140

-2.8%

4.9%

4.9%

Daiwa Kudan

2,960

2,820

-140

-4.7%

4,000

-1,180-29.5%

5.0%

4.9%

Daiwa Kayabacho Building

6,110

6,110

-

0.0%

5,600

+510

9.1%

4.5%

4.5%

Jimbocho Place

3,640

3,660

+20

0.5%

3,550

+110

3.1%

4.5%

4.5%

E SPACE TOWER

25,90026,000+100

0.4%

24,000+2,000

8.3%

4.3%

4.3%

-

1,810

-

-

1,721

+89

5.2%

-

5.1%

Daiwa Kinshicho

3,540

3,220

-320

-9.0%

3,653

-433

-11.9%

5.4%

5.4%

Daiwa Higashi-Ikebukuro

3,500

3,510

+10

0.3%

2,958

+552

18.7%

5.2%

5.2%

Benex S-3

3,410

3,200

-210

-6.2%

4,950

-1,750-35.4%

5.8%

5.8%

Daiwa Shinagawa North

5,670

5,690

+20

0.4%

7,710

-2,020-26.2%

5.3%

5.2%

Daiwa Minami-Senba

2,940

2,850

-90

-3.1%

4,810

-1,960-40.7%

5.5%

5.5%

273,530**** -580-0.2%

313,256-39,726-12.7%--

Nihonbashi Hongokucho Tosei Build

Total

272,300①* Major Reason : (1) Decrease in market rent (2) Increase in cap-rate (3) Increase in cancellation notices.
** Total of Compared to End of 12th Period excludes the properties acquired in 13th 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.

40

Portfolio Performance Summary (1) (12th-13th Fiscal Period Results by Property)
Daiwa Ginza

Daiwa Ginza Annex

Daiwa Shibaura

Daiwa Minami Aoyama

Daiwa Sarugakucho

Daiwa A Hamamatsucho

Daiwa Jingumae

Property Name

Acquisition Price (million yen)Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (% )PML (% ) (*6)
Property Management Company
Number of operating days
Profits from property-related activities (*1)

(1) Property-related Revenues
Rent (incl. common service fees)
Other Revenues (*2)(2) Property-related Expenses
Administrative Expenses
Utility Charges
Property Management Fees
Property-related Taxes (*3)
Non-life Insurance Costs
Repair Expenses
Other Expenses(3) NOI ( ＝(1)-(2)) (*5)
Annualized NOINOI Yield (*4)
Depreciation and Amortization(Reference) Proceeds for Restoration and Repair Work
Proceeds from Amortization of Leashold and Security Deposits

14,100
3,050
8,265
4,550
3,190
2,865
2,800
12th Period 13th Period 12th Period 13th Period 12th Period 13th Period 12th Period 13th Period 12th Period 13th Period 12th Period 13th Period 12th Period 13th Period
13,571
13,722
2,920
2,933
8,145
8,132
4,497
4,487
2,953
3,172
2,810
2,808
2,755
2,746
13,90014,000
2,860
2,960
7,380
7,400
3,970
3,930
2,120
2,720
2,870
2,870
2,010
1,930
84.9
86.9
100.0
100.0
99.1
98.3
100.0
100.0
0.0
100.0
100.0
100.0
78.5
100.0
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
Best Property
Xymax Axis
Best Property
Best Property
Property Partners
Best Property
Best Property
183
183
183
183
183
183
183
183
183
183
183
183
183
183
313,360
322,919
85,17064,448259,030
264,257
128,889
105,122- (※ 7)- (※ 7)
141,900
137,785
45,01756,151
313,360
322,919
85,17064,448258,115
261,958
128,889
105,122- (※7)- (※7)
141,900
137,785
45,01756,151
0
0
0
0
915
2,299
0
0
- (※ 7)- (※ 7)000086,72390,511
24,15722,48065,24964,92530,56029,367- (※ 7)- (※ 7)62,86459,427
16,58819,292
13,39915,0905,556
3,863
12,922
12,3734,054
3,974- (※ 7)- (※ 7)
8,726
8,791
2,625
6,050
26,63426,993
4,677
5,204
21,076
22,4107,821
7,306- (※ 7)- (※ 7)
9,041
9,110
4,800
4,764
5,206
4,349
1,238
1,230
3,855
3,859
2,034
1,756
- (※7)- (※7)
2,117
2,036
1,200
1,200
26,35726,361
8,806
8,810
20,58820,588
11,883
11,883- (※ 7)- (※ 7)
9,207
9,208
6,601
6,602
509
456
122
111
497
455
181
165
- (※ 7)- (※ 7)
229
210
89
81
2,548
5,247
3,483
3,260
6,309
5,237
4,585
4,281
- (※ 7)- (※ 7)
4,141
668
1,180
503
12,067
12,011
272
0
0
0
0
0
- (※ 7)- (※ 7)
29,40029,4008989
226,636
232,407
61,012
41,968
193,780
199,332
98,32875,75461,788-20,696
79,03678,35828,42936,858452,035
463,545
121,692
83,708386,503397,575
196,120
151,095
123,238-41,280
157,641
156,289
56,70373,515
3.2%
3.3%
4.0%
2.7%
4.7%
4.8%
4.3%
3.3%
4.1%
-1.3%
5.5%
5.5%
2.0%
2.6%
67,934
68,88917,731
18,02324,34225,061
11,343
11,377- (※ 7)- (※ 7)
11,418
11,569
9,901
10,080
0
0
0
0
602
501
0
0
- (※ 7)- (※ 7)
0
0
0
0
0
0
0
0
0
0
0
0
- (※7)- (※7)
0000(*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 does not include 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 acquisition price.
(*5) NOI in this table is calculated by accounting for Property-related Taxes for “NOI (after deduction of gain on sale)” found on p.37 and so does not equal that figure.
(*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 (May 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.

41

Portfolio Performance Summary (2) (12th-13th Fiscal Period Results by Property)
Daiwa Shibadaimon

Daiwa Misakicho

Daiwa Shimbashi 510

BPS Square

Daiwa T sukiji

Daiwa T sukiji 616

Daiwa T sukishima Bldg.

Property Name

Acquisition Price (million yen)Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (% )PML (% ) (*6)
Property Management Company
Number of operating days
Profits from property-related activities (*1)

(1) Property-related Revenues
Rent (incl. common service fees)
Other Revenues (*2)(2) Property-related Expenses
Administrative Expenses
Utility Charges
Property Management Fees
Property-related Taxes (*3)
Non-life Insurance Costs
Repair Expenses
Other Expenses(3) NOI ( ＝(1)-(2)) (*5)
Annualized NOINOI Yield (*4)
Depreciation and Amortization(Reference) Proceeds for Restoration and Repair Work
Proceeds from Amortization of Leashold and Security Deposits

7,840
2,578
2,346
2,080
1,560
1,240
2,440
12th Period 13th Period 12th Period 13th Period 12th Period 13th Period 12th Period 13th Period 12th Period 13th Period 12th Period 13th Period 12th Period 13th Period
2,460
2,447
2,233
2,219
2,139
2,134
1,384
1,368
1,217
1,212
2,323
2,309
7,282
7,214
2,730
2,620
2,470
2,470
2,250
2,320
1,560
1,510
1,370
1,420
2,400
2,400
7,870
7,660
100.0
78.0
100.0
100.0
97.4
99.7
100.0
0.0
100.0
100.0
100.0
89.7
100.0
100.0
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
Best Property
Best Property
Property Partners
Best Property
Xymax Axis
Property Partners
Property Partners
183
183
183
183
183
183
183
183
183
183
183
183
183
183
86,08364,147- (※7)- (※7)
94,33886,138- (※7)- (※7)
48,653
51,634
83,39977,720286,383
286,370
286,383
286,370
86,08364,147- (※7)- (※7)
94,33886,138- (※7)- (※7)
48,653
51,634
83,39977,72000
00- (※7)- (※7)00- (※7)- (※7)
000058,39452,997
21,705
21,776- (※7)- (※7)
17,91653,020- (※7)- (※7)
11,227
12,687
22,11821,947
8,485
10,205
5,861
8,879- (※7)- (※7)
3,801
6,005- (※7)- (※7)
2,346
2,326
4,850
4,944
26,264
24,117
6,752
5,209- (※7)- (※7)
5,828
5,612- (※7)- (※7)
3,104
3,192
7,627
6,790
4,295
4,201
1,303
1,225
- (※7)- (※7)
1,391
1,289- (※7)- (※7)
1,200
1,200
1,501
1,394
13,80213,802
6,295
6,297- (※7)- (※7)
5,667
5,667- (※7)- (※7)
4,143
4,150
7,214
7,214
367
338
139
128
- (※7)- (※7)
136
125- (※7)- (※7)
68
62
152
139
5,178
331
1,354
36
- (※7)- (※7)
1,030
34,259- (※7)- (※7)
365
1,756
773
1,433
0
0
0
0
- (※7)- (※7)
61
61- (※7)- (※7)
00
0
31
227,988
233,373
64,37742,371
68,84965,521
76,422
33,11841,63814,25037,42538,946
61,28055,773454,732
465,472
128,403
84,510137,322
130,685
152,427
66,05583,04928,422
74,647
77,680122,226
111,241
5.8%
5.9%
5.0%
3.3%
5.9%
5.6%
7.3%
3.2%
5.3%
1.8%
6.0%
6.3%
5.0%
4.6%
67,83567,912
14,542
14,859- (※7)- (※7)
6,430
6,484- (※7)- (※7)
7,039
7,048
20,28820,48400
00- (※7)- (※7)00- (※7)- (※7)
0
0
0
0
0
0
0
0
- (※7)- (※7)00- (※7)- (※7)
0000(*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 does not include 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 acquisition price.
(*5) NOI in this table is calculated by accounting for Property-related Taxes for “NOI (after deduction of gain on sale)” found on p.37 and so does not equal that figure.
(*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 (May 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.

42

Portfolio Performance Summary (3) (12th-13th 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

Acquisition Price (million yen)Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (% )PML (% ) (*6)
Property Management Company
Number of operating days
Profits from property-related activities (*1)

(1) Property-related Revenues
Rent (incl. common service fees)
Other Revenues (*2)(2) Property-related Expenses
Administrative Expenses
Utility Charges
Property Management Fees
Property-related Taxes (*3)
Non-life Insurance Costs
Repair Expenses
Other Expenses(3) NOI (＝(1)-(2)) (*5)
Annualized NOINOI Yield (*4)
Depreciation and Amortization(Reference) Proceeds for Restoration and Repair Work
Proceeds from Amortization of Leashold and Security Deposits

2,680
2,520
1,600
3,930
7,420
4,620
3,460
12th Period 13th Period 12th Period 13th Period 12th Period 13th Period 12th Period 13th Period 12th Period 13th Period 12th Period 13th Period 12th Period 13th Period
2,503
2,502
1,570
1,563
3,837
3,829
7,197
7,168
4,545
4,545
3,381
3,369
2,646
2,643
2,330
2,340
1,760
1,740
3,810
3,790
6,740
6,780
4,190
4,270
2,880
2,900
2,250
2,170
100.0
100.0
100.0
100.0
100.0
87.0
73.5
85.2
88.1
96.9
53.7
88.6
68.1
88.4
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
Best Property
Best Property
Best Property
Xymax Axis
Xymax Axis
Best Property
Best Property
183
183
183
183
183
183
183
183
183
183
183
183
183
183
83,40175,36865,863
61,415
128,490
113,120
140,378
143,954
116,578
98,01749,37556,681
70,373
63,66861,553
63,66883,40175,36865,86360,034
128,490
112,332
140,378
143,954
111,947
97,902
49,37556,681
8,819
0
0
0
0
1,380
0
788
0
0
4,631
114
0
0
29,09829,744
18,593
21,225
12,47912,761
28,121
41,36460,61637,90736,224
31,17541,02130,872
4,468
6,507
3,819
5,018
2,433
2,501
5,086
6,530
6,037
8,502
7,395
8,556
4,806
13,672
5,220
5,503
5,303
5,597
3,171
3,404
9,143
8,721
12,96913,327
7,573
7,326
5,311
5,894
1,209
1,200
1,257
1,223
1,200
1,200
1,684
1,794
2,069
2,221
1,794
1,514
1,200
1,200
14,341
14,341
7,059
7,036
5,199
5,199
10,65810,65912,08912,085
8,390
8,390
7,176
7,177
155
142
155
142
100
92
166
152
348
315
170
155
161
146
3,702
2,051
998
2,207
373
362
1,382
13,50627,101
1,456
10,9005,157
22,366
2,783
0
0
0
0
0
0
0
0
0
0
0
74
0
0
41,27433,92264,80854,14253,384
48,653
100,369
71,75579,762106,046
80,354
66,841
8,354
25,80682,32467,659129,262
107,988
106,477
97,041200,190
143,119
159,088
211,514160,269
133,318
16,66251,471
3.1%
2.5%
5.1%
4.3%
6.7%
6.1%
5.1%
3.6%
2.1%
2.9%
3.5%
2.9%
0.5%
1.5%
9,592
9,721
11,365
11,963
7,736
7,796
15,948
16,10328,60828,947
18,536
19,095
16,903
17,116
0
0
0
0
0
0
570
10,2300
013,666
8,630
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

(*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 does not include 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 acquisition price.
(*5) NOI in this table is calculated by accounting for Property-related Taxes for “NOI (after deduction of gain on sale)” found on p.37 and so does not equal that figure.
(*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 (May 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.

43

Portfolio Performance Summary (4) (12th-13th Fiscal Period Results by Property)
Daiwa Onarimon

Shinjyuku Maynds Tower

SHIBUYA EDGE

Daiwa Kodemmacho

Daiwa Jimbocho

Daiwa Nishishimbashi

Daiwa Kudan

Property Name

Acquisition Price (million yen)Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (% )PML (%) (*6)
Property Management Company
Number of operating days
Profits from property-related activities (*1)

(1) Property-related Revenues
Rent (incl. common service fees)
Other Revenues (*2)(2) Property-related Expenses
Administrative Expenses
Utility Charges
Property Management Fees
Property-related Taxes (*3)
Non-life Insurance Costs
Repair Expenses
Other Expenses(3) NOI (＝(1)-(2)) (*5)
Annualized NOINOI Yield (*4)
Depreciation and Amortization(Reference) Proceeds for Restoration and Repair Work
Proceeds from Amortization of Leashold and Security Deposits

4,000
5,900
2,460
5,000
13,860133,800
4,150
12th Period 13th Period 12th Period 13th Period 12th Period 13th Period 12th Period 13th Period 12th Period 13th Period 12th Period 13th Period 12th Period 13th Period
3,993
3,972
13,68013,651
131,775
131,543
5,835
5,822
2,446
2,440
4,140
4,165
5,072
5,128
2,960
2,820
14,40013,000106,000
108,000
4,060
3,940
1,920
1,900
2,930
2,760
5,600
4,860
88.1
88.0
87.1
100.0
99.9
99.9
100.0
100.0
100.0
100.0
100.0
20.6
55.0
79.6
7.96
7.96
5.45
5.45
6.42
6.42
3.14
3.14
7.71
7.71
5.58
5.58
6.76
6.76
Mitsui Fudosan Building Management
Mitsui Fudosan Building Management
Xymax Axis
Xymax Axis
Xymax Axis
Xymax Axis
Property Partners
183
183
183
183
183
183
183
183
183
183
183
183
183
183
127,697
115,311417,593358,6812,541,293
2,554,873
115,806
115,182
64,93564,684
161,481
57,150137,671
113,237
127,697
115,311417,593358,6812,538,947
2,546,329
115,806
115,182
64,93564,684
161,481
57,150137,671
113,237
0
0
0
0
2,346
8,543
0
0
0
0
0
0
0
0
23,511
54,14377,90485,279829,826
742,90721,707
20,884
13,28813,671
33,63068,42788,29853,361
4,684
9,677
13,74322,008
133,528
130,990
4,962
4,382
2,775
2,813
6,274
13,282
12,307
17,884
7,166
6,796
19,87320,993
292,440
288,990
6,080
6,296
4,248
4,258
11,627
6,109
10,830
9,301
1,868
1,833
4,073
3,497
17,826
17,624
1,733
1,712
1,200
1,200
1,614
1,209
1,743
1,433
8,987
8,990
36,682
36,682
263,549
269,849
7,456
7,448
3,824
3,824
11,212
11,212
17,04016,957
153
138
518
475
4,463
4,099
130
118
93
86
181
164
303
277
652
26,7093,013
1,624
113,960
27,597
1,344
928
323
668
2,678
36,21346,070
7,506
0
0
0
0
4,057
3,758
0
0
822
822
40
238
3
3
104,185
61,164
339,688273,400
1,711,466
1,811,961
94,09894,29551,64751,009127,850-11,280
49,372
59,873
207,802
121,995
677,521545,3073,413,581
3,614,022
187,683
188,076
103,013
101,740
255,003-22,500
98,475
119,419
5.2%
3.0%
4.9%
3.9%
2.6%
2.7%
3.2%
3.2%
4.2%
4.1%
6.1%
-0.5%
2.0%
2.4%
23,961
24,13429,44329,462528,283
532,827
16,662
16,693
8,177
8,247
23,062
23,92046,97650,33400000
14,7420000035,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

(*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 does not include 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 acquisition price.
(*5) NOI in this table is calculated by accounting for Property-related Taxes for “NOI (after deduction of gain on sale)” found on p.37 and so does not equal that figure.
(*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 (May 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.

44

Portfolio Performance Summary (5) (12th-13th 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

Acquisition Price (million yen)Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (%)
PML (%) (*6)
Property Management Company
Number of operating days
Profits from property-related activities (*1)

(1) Property-related Revenues
Rent (incl. common service fees)
Other Revenues (*2)(2) Property-related Expenses
Administrative Expenses
Utility Charges
Property Management Fees
Property-related Taxes (*3)
Non-life Insurance Costs
Repair Expenses
Other Expenses(3) NOI ( ＝(1)-(2)) (*5)
Annualized NOINOI Yield (*4)
Depreciation and Amortization(Reference) Proceeds for Restoration and Repair Work
Proceeds from Amortization of Leashold and Security Deposits

4,950
5,600
3,550
24,000
1,721
3,653
2,958
12th Period 13th Period 12th Period 13th Period 12th Period 13th Period 12th Period 13th Period 12th Period 13th Period 12th Period 13th Period 12th Period 13th Period
5,618
5,590
3,626
3,606
24,141
24,094
1,740
3,470
3,445
2,840
2,819
4,469
4,433
6,110
6,110
3,640
3,660
25,90026,000
1,810
3,540
3,220
3,500
3,510
3,410
3,200
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
97.9
90.1
89.5
96.6
5.58
5.58
6.13
6.13
5.78
5.78
6.93
7.42
7.42
5.56
5.56
5.66
5.66
Mitsui Fudosan Building Management
Property Partners
Xymax Axis
Xymax Axis
MS Building Support
Best Property
Best Property
183
183
183
183
183
183
146
183
21
183
183
183
183
163,025
155,494- (※7)- (※7)
90,942
108,730
539,461
677,807
4,816
151,854
148,409
151,083
130,753
160,166
155,494- (※7)- (※7)
90,942
108,730
539,461
677,807
4,816
151,854
148,409145,311
129,1222,858
0- (※7)- (※7)
0
0
0
0
0
0
0
5,771
1,630
56,94055,866- (※7)- (※7)
13,79814,146
83,124
95,604668
41,272
61,40345,43939,222
15,637
16,902- (※7)- (※7)
6,315
5,913
47,10440,741523
12,937
17,360
10,221
9,821
16,98318,749- (※7)- (※7)
5,814
6,394
28,50042,2180
11,643
11,574
15,59015,0172,423
2,354- (※7)- (※7)
1,388
1,680
6,248
6,854
135
2,272
2,219
2,123
1,885
16,32015,970- (※7)- (※7)
617
13
15
0
13,067
13,069
9,632
9,630
455
419
- (※7)- (※7)
155
142
632
724
10
303
280
292
269
5,120
1,472
- (※7)- (※7)
118
0
490
4,934
0
1,049
16,901
7,579
2,600
0
0
- (※7)- (※7)
0
0
135
118
0
0
0
0
0
106,084
99,626
159,796
160,502
77,144
94,581
456,336582,201
4,146
110,582
87,003
105,643
91,528211,589
198,709318,719
320,127
153,866
188,646
1,140,841
1,161,221
72,062
220,560
173,531
210,710
182,556
4.3%
4.0%
5.7%
5.7%
4.3%
5.3%
4.8%
4.8%
4.2%
6.0%
4.8%
7.1%
6.2%
45,20239,290- (※7)- (※7)
19,70819,70852,07862,7382,185
28,28628,37722,25422,30300- (※7)- (※7)
0
0
0
0
0
0
0
4,900
5,000
0
0
- (※7)- (※7)
0
0
0
0
0
0
0
0
0

(*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 does not include 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 acquisition price.
(*5) NOI in this table is calculated by accounting for Property-related Taxes for “NOI (after deduction of gain on sale)” found on p.37 and so does not equal that figure.
(*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 (May 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.

45

Portfolio Performance Summary (6) (12th-13th Fiscal Period Results by Property)
Daiwa Shinagawa North

Daiwa Minami-Senba

7,710

4,810

Property Name

Acquisition Price (million yen)Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (% )PML (% ) (*6)
Property Management Company
Number of operating days

Profits from property-related activities (*1)

(1) Property-related Revenues
Rent (incl. common service fees)
Other Revenues (*2)(2) Property-related Expenses
Administrative Expenses
Utility Charges
Property Management Fees
Property-related Taxes (*3)
Non-life Insurance Costs
Repair Expenses
Other Expenses(3) NOI (＝(1)-(2)) (*5)
Annualized NOINOI Yield (*4)
Depreciation and Amortization(Reference) Proceeds for Restoration and Repair Work
Proceeds from Amortization of Leashold and Security Deposits

12th Period 13th Period 12th Period 13th Period
7,508
7,480
4,879
4,858
5,670
5,690
2,940
2,850
100.0
100.0
91.7
100.0
5.56
5.56
11.56
11.56
Mitsui Fudosan Building Management
Best Property
183
183
183
183
180,917
192,421108,522108,185
180,917
192,421108,522108,185000052,97656,08536,76637,14012,21912,436
12,22813,21715,155
15,766
10,501
9,480
2,742
2,877
1,643
1,622
19,645
19,644
11,622
11,373
409
377
273
250
2,805
4,985
497
1,198
0
0
0
0
127,940
136,334
71,756
71,042
255,182
271,923
143,119
141,696
3.3%
3.5%
3.0%
2.9%
33,3320033,1594,500
031,8710030,99800(*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 does not include 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 acquisition price.
(*5) NOI in this table is calculated by accounting for Property-related Taxes for “NOI (after deduction of gain on sale)” found on p.37 and so does not equal that figure.
(*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 (May 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

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

Akira Yamanouchi

Vice President andRepresentative Director

Yoshiki Nishigaki(Head of Private Fund Management)

Vice President andRepresentative Director

Yuji Shinotsuka(Head of Finance & Business Planning)

Compliance
Compliance Officer
Officer
Representative
Representative
Director
Director

Director (non-executive)

Toshihiro Matsui

Director (non-executive)

Mikita Komatsu

AuditorToshihiko Onishi

Internal
Internal Control
Control Office
Office Formulation and

Implementation of construction
project of the properties.

Naoyuki Owa(Head of Administration)

Investment Management
Department

Marketing Department

Acquisitions Team Marketing activities concerning

commissioned businesses

 Formulation of investment

policies Relation with tenants whose theInvestment Corporation owns
the properties Matters relating to theacquisition and disposal of
assets Formulation of policies on

leasing and management ofassets Matters relating to the leasing

and management of assets
Investment Planning Team Budget and performance

management of the portfolio

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

Established
Capitalization

October 21, 2004
200 million yen

Representative Director

Akira Yamanouchi

Directors

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

Employees

43

Registered Financial
Instruments Firm
Building Lots and Buildings
Transaction Business License
Discretionary Agent for Real
Estate Transaction Approval

No. 355 (Financial Instruments), Director, Kanto Local Finance
BureauNo. (2)-83920, Governor of Tokyo
No. 34, Minister of Land, Infrastructure, Transport and Tourism

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

General Administrative
Department

Business Planning
Department

 Matters relating to the operation

 Analysis of real estate market,

asset liability management
and management of surplus
fundof the general meeting ofinvestors and the executive
officers of the Investment
Corporation

retail industry trends and thereal estate investment trust
market Matters relating to disclosure, Matters relating to the operation

Finance Department
Finance and IR Team Matters relating to financing,IR activities, formulation of the
IR strategy and Public
Relations
Accounting Team

Asset Management Team

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

 Matters relating to financial

results and accounting, cash
allotment, accounting audit,
budget and performance
management
 Matters concerting accounting

and finance of the Asst
Manager(As of July 13. 2012)of the general meeting ofshareholders, the board of
directors and committees of theAsset Manager
 Submission of applications forvarious permits, licenses,
approvals, registrations, etc.
stipulated by laws andregulations
 Storage and management of

the important documents andinformation
 Matters relating to human Research and analysis of thebusiness challenge of theInvestment Corporation
 Matters relating to thedevelopment of annual asset
management plans andmedium-term asset
management plans Development and revision of

the Investment Guidelines

Private Fund Management
Department
Advisory Team Matters relating to advisoryconcerning managements forcustomers’ assets
Operational Team Matters relating to operation

concerning discretionary funds

Management Team Matters relating to management

for customers

 Matters relating to the provisionof new businesses General risk management of theInvestment Corporation

resources and labor service

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

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.

48

Achievements / Synergy with Daiwa Securities Group
Sponsor Change

8th Period

9th Period

10th Period

11th Period

12th Period

13th Period(2009/07)(2009/11)(2010/5)(2010/11)(2011/5)(2011/11)(2012/05)

Allotted new units to DSGI(DSGI :10Bil yen)(Jul.2009)

Finance

Made all loan
uncollateralized(Sep.2011)

Issued investment corporatebond underwritten by Daiwa
CM(5.0Bil yen) (Jun.2010)

Issued subordinatedcorporate bond to DSGI
(3.5Bil yen) (Sep.2009)

Construct optimal debt structure
Increase in the rate of
fixed interest rate loan
(May 2012)

Rating A- → A (R&I)(Sep. 2009)
Acquired Daiwa Kayabacho
Building (Mar.2011)

Accelerate Acquisition utilizing
Daiwa’s Network

Acquired E SPACETOWER (Jul. 2011)

Take advantage of low LTV

Daiwa Securities started a
RE brokeragebusiness (Sep.2011)

LeasingDaiwa Securities Group Inc.
Acquired 51,893 units throughPrivate Allotment (Jul. 2009)

Keep stable bank formation

Keep good communication withlenders

Acquisition

Unitholders’Composition

FutureDaiwa PIP acquired
60,000 units(Jul. 2010)

Daiwa PIP purchased
Additional 68,905 units(Feb. - Mar. 2012)
Daiwa Investment
Management purchased
128,905 units (May. 2012)

Accelerate leasing activities
utilizing Daiwa’s network

Construct more stable
unitholders’ composition with IR
activities

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

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.

50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