Daiwa Office Investment Corporation
Earnings Announcement for the 15th Fiscal Period(Fiscal Period ended May 2013)

Contents
Section 1
15th Fiscal Period Performance Highlights and Forecasts

Section 3

15th Fiscal Period Topics

4

The Real Estate Market and Trading Performance23

Highlights of the 15th Fiscal Period

5

Portfolio and Acquisition Policy

24

Highlights of Forecasts for the 16th and 17th Fiscal Periods

6

Property Review for Acquisition

25

Changes in Dividends and Appraisal Value

7

15th FP Property Acquisition

26

Issues and Activities of the Investment Corporation

8

16th FP Property Acquisition

28

Properties Acquired after Sponsor Change

30

Section 2External Growth

Section 4

Internal Growth
Leasing Market of Tokyo Office Buildings

10

Financial Strategy

Analyses of Leasing Income

11

Status of Interest-bearing Liabilities

32

Performance of Shinjuku Maynds Tower & E SPACE TOWER 16

Unitholders

36Internal Growth Strategies

17

Activities in the 16th Fiscal Period

37

Occupancy Rate of the Properties Subject to Leasing
Improvement in the 15th FP

18

Properties Subject to Leasing Improvement in the 16th FP

19

Energy-Saving Measures, Disaster Prevention Measures,
CS Improving Measures, etc.

20

Actions Taken for Environmental Efforts

21

Appendix

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

1This document is provided for informational purposes and should not be construed as an offer
or solicitation 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,or by the associated cabinet orders, cabinet office ordinances, or rules, or by the rules
governing companies listed on the Tokyo Stock Exchange, or any other applicable rules, nor isit a disclosure 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, and there 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 thisinformation. 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
15th Fiscal Period
Performance Highlights and Forecasts

15th Fiscal Period Topics█ Properties Acquisition¾¾¾¾

shinyon curumu (Acquisition Dates: December 3, 2012, April 12, 2013 Acquisition Price: ¥9,650 million)
Honshu Meieki Building (Acquisition Date: February 1, 2013 Acquisition Price: ¥5,300 million)
Kamiooka Eye Mark Building (Acquisition Date: March 1, 2013 Acquisition Price: ¥2,000 million)
Sunline Building No. 7 (Additional Acquisition) (Additional Acquisition Dates: March 29 and May 29, 2013
Additional Acquisition Price: ¥230 million)█ Property Management and Management Situation¾¾

Occupancy Rate at the end of the 15th FP: 95.0% (the 15th Expected Occupancy Rate estimated in
January 2013: 94.3% / Occupancy Rate at the end of the 14th FP: 96.4%)
Average Contract Rent at the end of May 2013*: 18,564 yen (% and amount of change from the end of
November 2012: -204 yen, -1.1%)<Average contract rent of the existing 38 buildings at the end of May 2013: ¥18,655 (% change from theend of November 2012: -¥113, -0.6%)>█ Financial Situation¾¾¾

LTV (based on total assets): 37.5% (end of 14th Fiscal Period: 34.4%), LTV (based on total assets) after
acquisition of below properties: 39.9%
Average remaining years at the end of the Fiscal Period: 2.49 years (end of 14th Fiscal Period: 2.25 years)
Ratio of fixed interest: 80.5% (end of 14th Fiscal Period: 86.2%)<Reference> The 16th Fiscal Period Topics█ Properties Acquisition/ Scheduled Properties Acquisition¾

Tousen Dogenzaka Daini Building (Acquisition Date: July 3, 2013 Acquisition Price: ¥4,500 million)¾

Akasaka Business Place (Acquisition Date: August 9, 2013 (scheduled) Acquisition Price: ¥9,200 million)*Average Contract Rent is, as a rule, calculated after excluding all non-office uses such as retail, 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.

4

Highlights of the 15th Fiscal Period
Results of the 15th Fiscal Period
14th Fiscal Period(38 properties)(Million Yen)

15th Fiscal Period(41 properties)

Difference

Operating Revenue

7,566

7,615

48

Operating Expense

4,419

4,306

-113

Operation Income

3,146

3,308

161

787

733

-53

Ordinary Income

2,364

2,590

225

Net Income

2,369

2,589

219

Dividend per Unit

5,986 yen

6,542 yen

556 yenOccupancy Rate

96.4%

95.0%

-1.4%

NOI Yield (annualized)*

3.4%

3.3%

-0.1%

Non-Operating expense

Increase factors: property acquisitions during the Fiscal Period(+¥278 million), full contribution of acquired properties in the
14th Fiscal Period (+¥29 million)
Decrease factors: revenues of existing assets (-¥71 million),other lease business revenue (-¥87 million: Proceeds forrestoration and repairs, etc.), utilities revenue (-¥82 million)
Decrease factors: repair expenses (-¥65 million), utilities
expenses (-¥58 million)
Increase factors: outsourcing expenses (+¥36 million)
Decrease factors: interest expenses (-¥42 million), decrease incosts in accordance with refinancing of existing borrowings)* NOI Yield (annualized) calculated based on book value(Million Yen)

(Reference)
Comparison of forecasts withresults of the 15th Fiscal Period

15th Fiscal Period
Forecast (announced
January 2013)

15th Fiscal Period(41 properties)

Difference

Increase factors: other lease business revenue (+¥20 million:
cancellation penalty, etc.), revenues of existing assets (+¥13
million)Decrease factors: utilities revenue (-¥24 million)

Operating Revenue

7,605

7,615

9

Operating Expense

4,381

4,306

-74

Net Income

2,473

2,589

115

Dividend per Unit

6,250 yen

6,542 yen

292 yenOccupancy Rate

94.3%

95.0%

0.7%

Decrease factors: utilities expenses (-¥31 million), repair
expenses (-¥15 million), advertising expenses (-¥13 million),other commission paid (-¥19 million), depreciation (-¥6 million)
Increase factors: outsourcing expenses (+¥11 million)

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 16th and 17th Fiscal Periods(Million Yen)

█ The 16th Fiscal Period(Forecast)

16th FP Forecast
Ending November 2013(43 properties)

Difference compared
to 15th FP

Operating Revenue

8,242

627

Operating Expense

4,666

359

Operation Income

3,576

267

723

-9

2,850

260

Dividend per Unit

7,200 yen

658 yenOccupancy Rate

94.8%

-0.2%

NOI Yield (annualized)*

3.4%

0.1%

Non-Operating expense
Net Income

Increase factors: property acquisitions during the Fiscal Period (+¥278
million), full contribution of acquired properties in the 15th Fiscal Period(+¥87 million), revenues of existing assets (+¥186 million:
disappearance of free rent period, etc.), utilities revenue (+¥138 million)
Decrease factors: other lease business revenue (-¥79 million)
Increase factors: utilities expenses (+¥138 million), depreciation (+¥42
million), repair expenses (+¥41 million), asset management fees (+¥35
million), outsourcing expenses (+¥31 million)
Decrease factors: decrease in costs in accordance with redemption of
investment corporation bonds (-¥41 million), interest expenses (+¥26
million)(Million Yen)

█ The 17th Fiscal Period(Forecast)

17th FP Forecast
Ending May 2014(43 properties)

Difference compared
to 16th FP

Decrease factors: utilities revenue (-¥91 million), revenues of existing
assets (-¥45 million)
Increase factors: full contribution of acquired properties in the 16th
Fiscal Period (+¥125 million)

Operating Revenue

8,235

-6

Operating Expense

4,607

-59

Operation Income

3,628

52

737

13

2,889

39

Dividend per Unit

7,300 yen

100 yenOccupancy Rate

94.3%

-0.5%

NOI Yield (annualized)*

3.5%

0.1%

Non-Operating expense
Net Income

Decrease factors: utilities expenses (-¥45 million), repair expenses(-¥19 million)
Increase factors: interest expenses (+¥16 million)* Expected NOI Yield (annualized) is calculated based on the book value forthe15th Fiscal Period for existing properties, and based on acquisition price for
new properties.

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

6

Changes in Dividends and Appraisal Value(Yen)

Changes
Changes inin Dividends
Dividends per
per Unit
Unit(Billion Yen)

Changes−in
Built
Changes inin Appraisal
Appraisal Value
Value andand Built−
Built−in
Loss
Loss

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.

7

Issues and Activities of the Investment Corporation
Balance
Balance Sheet
Sheet ofof thethe 15th
15th Fiscal
Fiscal Period
Period(FiscalPeriod
ended
May
2013)
(Fiscal Period ended May 2013)(Unit：Million Yen)

Asset Issues and Activities

Liability Issues and Activities

 Measures to Improve Profitability

Î Proactive information distribution,
occupancy rate improvement of low
occupant properties through condition
setting, etc. in response to feedback, etc.
Î Preventing cancellations by strengthening
relations with existing tenants andimproving the quality of buildings,
equipment and management systems
Î Strategic renewal planned to enhancecompetitiveness Financial Stabilization

Liabilities
Internal Growth
Leasing
Improvement
P9~21

141,227
AssetsFinancial Strategy

Status of interestbearing liabilitiesÎ Financial stabilization by further
expansion of lending financial
institutions
Î Reducing refinancing risk bylengthening loans payable anddispersing of repayment deadlines

P31~35342,572

 Strengthen Collaboration with GroupNet Assets

Î Strengthen leasing through collaboration
with Daiwa Securities Group

201,345

 Measures to Reduce Costs

Î Reduce energy costs
Î Ensure appropriate construction costs

Forecast EPS for the 16th Fiscal Period
External Growth Acquire selected properties

Î Active investment for competitive
properties after thorough selection

Growth throughasset acquisitions
P22~307,200 yen
Forecast EPS for the 17th Fiscal Period

7,300 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.

8Section 2
Internal Growth

Leasing Market of Tokyo Office Buildings(Yen / Tsubo)

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)(Rent)

2008/9(Vacancy Rate)

Ｂ Class Bldg.
2007/9A Class Bldg.

2001/6

2000/1

Rental Market Clock(conceptual chart)

2003/10Large scale buildings of 5 Central Wards of Tokyo(Tsubo)(Data): Miki Shoji
Predicted figures

From

2011/6 2011/12

To

2011/122012/6 2012/12

2013/6

Change in rent area

28,725 168,375 101,574

66,426

Change in percentage

0.7%

4.1%

Gap of supply anddemand2012/6 2012/12

2.4%

1.5%

2012/6

2011/12
2008/92013/6

2012/12

Office Buildings of 5 Central Wards of Tokyo
2007/92001/6

2000/1
2003/10

2011/122012/6

2013/6(Data): Transition of the supply and demand balance (standard scenario) from
CBRE “Office market medium term forecast 2012 Tokyo's 23 wards”

2012/12(Data): Sanko Estate compiled by Daiwa Real Estate Asset Management* Large scale buildings: A floor area of 200 tsubo (661.2m2) or more.

(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.

10Analyses of Leasing Income (1)- Portfolio Map: Increase and decrease in occupancy rate compared with previous Fiscal Period 55 Central
Central Wards
Wards ofof TokyoTokyo andand Part
Part ofof Greater
Greater Tokyo
Tokyo Area
Area

Daiwa Higashi Ikebukuro

Occupancy rate comparedwith previous Fiscal PeriodUp:

9 buildings

Down

:

6 buildings

Unchanged :26 buildings

Greater
Greater TokyoTokyo

Daiwa Higashi IkebukuroWest Park Osaki

Daiwa Kinshicho

Daiwa Shinagawa North

Benex S-3

Shinjuku Ward

Shinjuku Maynds Tower

ShibuyaWard
SHIBUYAEDGEE SPACE TOWER

Daiwa Misakicho
Jimbocho Place

Daiwa Sarugakucho
Daiwa Jimbocho
Daiwa Kudan
shinyon curumu*
Daiwa Kodenmacho
Nihonbashi Hongokucho Tosei Building
Nihonbashi MS Bld.
Sunline Bldg. No.7
Daiwa Nihonbashi Honcho
Chuo
Daiwa Kayabacho Build.
Chiyoda Ward
Daiwa Jingumae
Ward
Daiwa Kyobashi
Daiwa Ginza 1-chome
Daiwa Ginza Annex
Daiwa Minami Aoyama
Daiwa Tsukijiekimae
Daiwa Ginza
Daiwa Tsukiji
Daiwa Tsukiji 616
Daiwa Nishi-Shimbashi
Daiwa Tsukishima
Daiwa Shibuya SS
Daiwa Azabudai

Kamioooka Eye Mark Building*Daiwa Kinshicho

Daiwa Shinbashi510
Daiwa A Hamamatsucho

Daiwa Shibadaimon
Daiwa Shibaura

Minato WardRegional
Regional Cities
CitiesHonshu Meieki Building*Tokyo

Daiwa Minami-Senba

West Park Osaki

Daiwa Shinagawa North

As of May 31, 2013

* shinyon curumu, Honshu Meieki Building: occupancy rateincreased from time of acquisition. Kamioooka Eye Mark Building
maintains full occupancy from the time of acquisition.
(Note) Former name "BPS SQUARE" has been changed to the new name “Daiwa Tsukijiekimae” from May 1, 2013This 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)- Changes in Occupancy and Cancellation Rates Occupancy
Occupancy Rate
Rate

█ Occupancy Rate and Forecast(1) The 15th Fiscal Period (Actual)

95.0%

 Occupancy rate of Daiwa Tsukijiekimae recovered from 0.0% to10.3%.
 Occupancy rate of Benex S−3 recovered from 88.0% to 98.2%.
 Daiwa Azabudai, Daiwa Minami−Senba, Daiwa Jimbocho, Daiwa
Nishishinbashi reached full occupancy.
 Acquisitions of properties with low occupancy (shinyon curumu,
Honshu Meieki Building) became a factor for decreasing theoverall occupancy rate.

(2) The 16th Fiscal Period (Forecast)

Rate
Rate ofof New
New Leases
Leases // Cancellations
Cancellations

94.8%

 The expected occupancy rate of the 16th Fiscal Period is
estimated to improve from the 94.6% estimated in the 14th Fiscal
Period to 94.8%.
 The expected occupancy rates of the existing 41 properties(excluding new acquired properties) are estimated to remain
mostly at a level of 94.9%.
 Cancellations by tenants of a certain size are expected at about 2
properties.

(3) The 17th Fiscal Period (Forecast)

94.3%

 The expected occupancy rate of the 17th Fiscal Period is
estimated as 94.3%.
 The expected occupancy rates of the existing 41 properties(excluding new acquired properties) are is estimated as 94.3%.
* Ratio transition of new leases and cancellations areas to the total rentable area.

 Cancellations by tenants of a certain size are expected at about 4
properties.

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

12Analyses of Leasing Income (3)- Diversification of Tenants and Transition of New Lease and Cancellations -Tenant numbers(Cases)Transition
Transition ofof New
New Leases
Leases andandCancellations
Cancellations andand its
its ReasonsReasons **Diversification
Diversification ofof Tenants
Tenants Rent
Rent Area
Area
(%)

(件)

15th Period
New Leases
Cancellations* Office and retail are the target tenants (excluding residence and warehouse)

Cost
Space
Space
Consolidation
Reduction Expansion
Reduction
2
2

13
0

0
4

0
5

BetterLocation
4
0

Other

Total
5
4

24
15

* Excluding residence and warehouse tenants.

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

13

Analyses of Leasing Income (4)- Portfolio Map: Increase and Decrease in Unit Contract Rent Compared with Previous Fiscal Period 55 Central
Central Wards
Wards ofof TokyoTokyo andand Greater
Greater Tokyo
Tokyo Area
Area

Daiwa Higashi Ikebukuro

Comparison with previous
Fiscal Period
Increase and decrease of unit
contract rent
Unit rent increase: 8 buildings

Greater
Greater TokyoTokyo

Daiwa Higashi Ikebukuro
Daiwa Kinshicho

Unit rent decrease : 9 buildings
Unit rent maintained :21 buildingsWest Park Osaki
Daiwa Shinagawa North
Benex S-3

Shinjuku Ward
Shinjuku Maynds Tower

ShibuyaWard
SHIBUYAEDGEE SPACE TOWER

Daiwa Misakicho
Jimbocho Place

Daiwa Sarugakucho
Daiwa Jimbocho
Daiwa Kudan
Daiwa Kodenmacho
Nihonbashi Hongokucho Tosei Building
Nihonbashi MS Bld.
Sunline Bldg. No.7
Daiwa Nihonbashi Honcho
Daiwa Kayabacho Build.
Daiwa Jingumae
Daiwa Kyobashi
Daiwa Ginza 1-chome
Daiwa Ginza Annex
Daiwa Minami Aoyama
Daiwa Tsukijiekimae
Daiwa Ginza
Daiwa Tsukiji
Daiwa Tsukiji 616
Daiwa Nishi-Shimbashi
Daiwa Tsukishima
Daiwa Onarimon
Daiwa Shinbashi510
Daiwa A Hamamatsucho
Daiwa Shibuya SS
Daiwa Shibadaimon
Daiwa Azabudai
Daiwa Shibaura

Minato Ward

Daiwa Kinshicho

Regional
Regional Cities
CitiesDaiwa Minami-Senba
Daiwa Shinagawa NorthWest Park Osaki

As of May 31, 2013
* shinyon curumu, Honshu Meieki Building, Kamiooka Eye Mark Building are
not indicated since they were acquired in the 15th 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.

14Analyses of Leasing Income (5)- Status of Contract Rent Average
Average Contract
Contract Rent
Rent andand Market
Market Rent
Rent

(Yen/ Tsubo)

Contract
Contract Renewal
Renewal Area
Area

* The contract rent of the existing 38 properties in
the 15th Fiscal Period was ¥18,655 (period-onperiod change of –¥113, –0.6%).

18,768 yen
18,564 yen█The 16th Fiscal Period Contract Renewal Tenants* The ratio of areas scheduled for contract
renewal to the total rentable area
(214,401.00㎡) at the end of 15th Fiscal
Period.

█The 15th Fiscal Period Contract Renewal* The ratio of areas which had contract renewal
during 15th Fiscal Period to the total rentable area
(201,330,01㎡) at the end of 14th Period.

* Average Contract Rent is an average monthly rent of the tenants contracting at the endof the Fiscal period.

Attribution
Attribution Analysis
Analysis // Monthly
Monthly Contract
Contract Rent*
Rent*(Million Yen)

+59

1,142

+70

-63

Increase by New
LeasesDecrease by Increase by
Rent
Rent Revisions
Revisions

Decrease by Tenants’Cancellations

End of November 2012
Monthly Contract Rent

1,204

-4

+0.4

Increase by New
Acquisition

End of May 2013
Monthly Contract Rent

* Monthly Contact Rent is a total of final rent from tenants contracting at the end of the Fiscal Period.
Monthly Contract Rent for Shinjuku Maynds Tower was adjusted on June 7.

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

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

Other Properties:
52.5%

Shinjuku Maynds Tower& E SPACE TOWER:
47.5%

OfficeOffice Building
Building Supply
Supply inin thethe Five
Five Central
Central Wards
Wards ofof TokyoTokyo
2009-2012

Others1,620,000m2

Shibuya-ku
200,000m2
Shinjuku-ku
480,000m2

Shinjuku
Shinjuku Maynds
Maynds Tower
Tower Occupancy
Occupancy Rate
Rate

E
E SPACESPACE TOWER
TOWER Occupancy
Occupancy Rate
Rate

2013-2016

Chiyoda-ku
1590,000m2

Chuo-ku
390,000m2
Minato-ku
460,000m2

OthersShibuya-ku
170,000m2 520,000m2
Shinjuku-ku
Chiyoda-ku
170,000m2
1,380,000m2
Minato-ku
690,000m2
Chuo-ku
740,000m2

Source: Mori Trust Large scale properties are offices with total floor area of 10,000m2 or more.

* Since E SPACE TOWER was acquired on July 2011, the occupancy rate
data of June 2011 is used for the odd number periods and data of December
2011 is used for the even number periods before 12th FP.

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Internal Growth Strategies“Bonji-Tettei”
Accomplishing ordinary tasks thoroughly and carefully
enables us to achieve extraordinary results█ Leasing: Leasing with Good Terms
Î Further strengthen collaboration with agents by holding various regular meetings and regular visits withvarious agents.
Î Regularly visit agents and enhance recognition of properties subject to leasing improvement and confirm
the amount of feedback and responses.
Î Implement prompt and smooth leasing by Daiwa Real Estate Asset Management being present at thetime of property viewing and directly grasping the status of negotiations.

Leasing
Leasing Activities
Activities(Cases)Î Properties that can aim for unit price recovery will confirm the status of neighboring properties andperform term adjustments that can produce good results with the people in charge of each company(face-to-face leasing).

█ Relations with Tenants: Strengthening Communication with TenantsÎ Further strengthen relations with tenants by deepening interaction among people by visiting all tenants ona regular basis, etc.
Î Implement communication with and satisfaction surveys for existing tenants and aim for mutualcommunication.

█ Engineering: Verification of Construction Plans and Environmental Responses
Î Maintain fair cost and price level by introducing principle of competition and continue to look into
construction costs of heat light and water and management cost.
Î Work to systematically perform “work that can be performed on the side of the ordering party that enables
costs to be reduced while the quality of construction is maintained, such as separate orders,” centering
on large-scale construction accompanying the long-term repair plan.
Î Raise the added value and competitiveness by advancing initiatives for environmental certification
systems such as GRESB and environmental responses at existing assets.

█ Collaboration with GroupÎ Reinforce leasing by utilizing Daiwa Securities’ branch network.
Î Implement leasing that utilizes Daiwa Securities Group’s network of corporate clients.

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

Occupancy Rate of the Properties Subject to Leasing
Improvement in the 15th FP█ shinyon curumu(Acquisition Price: 9,650 million yen)

█ Honshu Meieki Bldg.
(Acquisition Price: 5,300 million yen) Highly convenient property

located a 4-minute walk fromthe new south exit of
Shinjuku Station on JR anddirectly connected to
Shinjuku 3-chome Station on
the Tokyo Metro Marunouchi
Line and Fuku-toshin Line.
 Area expects to expand

Time of Acquisition (’12/12)

 Property located a 6-minute Highly convenient property

walk from Exit 7 of Nagoya
Station on JR and Nagoya
city metro Line and 2-minute
walk from undergrounddoorway leading to Nagoya
Station underground
shopping arcade.

located a 1-minute walkfrom Tsukiji Station on theTokyo Metro Hibiya Line.

 Area of businessfurther with the developmentof the station bldg.
scheduled for 2016 opening.

 It is one of the low occupant properties acquired in

the 15th Fiscal Period.
unified by wholly owning the properties that werepreviously owned by two owners, and occupancy
rate will be improved by keeping everyone informed
about the new strategy towards the market.
 A 4-minute walk from JR Shinjuku Station,completed in January 2012, and aim for earlyoccupancy rate improvement by appealing both
location and specs.

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

’13/5

 It is one of the low occupant properties acquired in

the 15th Fiscal Period.

 The leasing strategy of the whole building will be Many affiliated companies

accumulation growing year
by year with large scale
redevelopment being
planned.

Time of Acquisition (’13/2)’13/5█ Daiwa Tsukijiekimae(Acquisition Price: 1,560 million yen)

 Occupancy rate improved by increased rented area

 A sub-lease (whole building) tenant vacated, andactual leasing activity started from October 2012
after restoration and repair work.

of existing tenants and new tenants moving in.

 Amount of feedback increased by the initial search Taking in of relocation needs accompanying thefor whole building demand changing to a policy
promoting multiple tenants.

large-scale redevelopment plan until December 2015
centering on Nagoya Station continues to bescheduled.

 Acquisition of contracts and applications continues toadvance even after May 2013, and responding
toward recovering occupancy rate.
 As of the date of this document, the estimatedoccupancy rate for the end of November 2013 is
expected to be 58.5% due to two tenants contractingThis 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

Properties Subject to Leasing Improvement in the 16th FP█ shinyon curumu(Acquisition Price: 9,650 million yen)

█ Honshu Meieki Bldg.
(Acquisition Price: 5,300 million yen) Highly convenient property

 Property located a 6-minute Highly convenient property

walk from Exit 7 of Nagoya
Station on JR and Nagoya
city metro Line and 2-minute
walk from undergrounddoorway leading to Nagoya
Station underground
shopping arcade.

located a 1-minute walkfrom Tsukiji Station on theTokyo Metro Hibiya Line.

located a 4-minute walk fromthe new south exit of
Shinjuku Station on JR anddirectly connected to
Shinjuku 3-chome Station on
the Tokyo Metro Marunouchi
Line and Fuku-toshin Line.
 Area expects to expand

Site Area
Structure

Shinjuku 4 chome, Shinjuku-ku, Tokyo
1,144.63m

2

S / RCFloor

B2 / 11F

Use

Office / Store

Total Floor Area 9,234.99m

2

Occupancy Rate 55.9% (May 2013)
Completion

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

accumulation growing year
by year with large scale
redevelopment being
planned.
Address

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

Site Area

2,059.56m

Structure

S

Floor

12F

Use

Office / Store

Total Floor Area

10,416.96m

2

2

Occupancy Rate 85.4% (May 2013)
Completion

January 2012 Many affiliated companies of Area of businessfurther with the developmentof the station bldg. scheduled
for 2016 opening.
Address█ Daiwa Tsukijiekimae(Acquisition Price: 1,560 million yen)

December 2007

Address

Tsukiji 2 chome, Chuo-ku, Tokyo

Site Area

464.81m

Structure

SRC

Floor

10F

Use

Office22Total Floor Area

2,902.92m

Occupancy Rate

10.3% (May 2013)

Completion

January 1996

 After acquisition, amount of feedback increased due Will keep the market informed as a relatively new Since the current occupancy rate is still low, theto keeping the market informed about it and forminga foothold for occupancy recovery.

property, which are in shorter supply, in Nagoya
Station area.

property continues to be subject to leasing
improvement following the 15th Fiscal Period.

 Switch to building management taking locational

characteristics into consideration and spread industry
types that can be accepted.
 Prospected area for growth potential due todevelopment in the Shinjuku new south exit, and aim
for occupancy rate improvement while focusing on
rent unit while giving consideration to market
recovery.

 Flexibly responds to tenant demand by leveraging

the wide rentable areas that can meet diverse needs
 Successively recognize market conditions and aim

for early occupancy rate improvement while flexibly
setting rent.

 DOI will appeal the property’s convenience which islocated in front of the Tsukiji Station exit andcloseness to Tokyo Station and Ginza area.
 Since there are operational results enhancing market

recognition in both the amount of feedback and thenumber of applications, sufficiently perform followups of considering tenants through operational
continuity leading to applications and contracts.

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

Energy–Saving Measures, Disaster Prevention Measures,
CS Improving Measures, etc.
█ Energy–Saving Measures█ Disaster Prevention Measures■ Introduced basement parking area “LED lighting” at Shinjuku Maynds
Tower■ Long-term earthquake countermeasure construction on elevators (five) at
Shinjuku Maynds Tower(Before)(After)■ Introduced common area “LED lighting” at Daiwa Ginza(Before)(After)■ Installed disaster prevention cabinets (total of 28) in the total portfolio in
preparation for disasters█ Coexistence with Local Societies(Before)(After)█ CS Improving Measures■ Renewal construction (entrance ceiling) at Daiwa Azabudai(Before)(After)■ Distribution of calendars to tenants■ Last year a LED
illumination light-up washeld in step with JR
Minami-Shinjuku BuildingThis year an illuminationis planned in the whole
Minami-Shinjuku area incollaboration with JR,
Odakyu, andTakashimaya

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

20

Actions Taken for Environmental Efforts█ Daiwa Real Estate Asset Management: GRESB 2012 awards "Green Star"
Daiwa Real Estate Asset Management participated in the latest Global Real Estate Sustainability Benchmark(GRESB) survey for the portfolio of Daiwa Office Investment Management and earned the best rating of "GreenStar" from GRESB Survey 2012. Daiwa Real Estate Asset Management received a high evaluation onsustainability from both "Management and Policy" and "Implementation and Measurement" aspects.
GRESB is an industry-led international organization which intends to evaluate sustainability performance of realestate portfolios.
Daiwa Real Estate Asset Management again participated in GRESB 2013 and will continue to make efforts toimprove sustainability performance with the expectations that real estate sustainability will be adopted as a criteria
for investment among Japanese investors in the future.

█ Daiwa Ginza: Received SMBC Sustainable Certification
Even though Daiwa Ginza is just coming up to 50 years old, it has earned “Gold” from a certification level based on
SMBC Sustainable Building Assessment Loan because of a high evaluation for “the policy and implementation ofsustainable management”, “the sustainable utilization of site” and “the risk management”.
SMBC Sustainable Building Assessment Loan facilitates loans based on the assessment of buildings owned orconstructed by companies for such as 1) the environmental performance on energy, water and materials and otherissues, 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).

█ Daiwa Ginza Introduced in MLIT’s “The Best Practices of Green Building”
Daiwa Ginza was introduced as an example for the MLIT’s “The Best Practices of Green Building” and is featured
on the webpage. The building was praised for remaining competitive even 50 years after completion with its
reduction of air-conditioning load, earthquake resistance, BCP measures and such. The “Best Practices” introducescases of increased environmental values of real estate in terms of contribution to regional environments,
cooperative relationships or shared benefits among stakeholders (operators, residents, investors, etc.) and such.
(MLIT’s Green Building Online Portal: http://tochi.mlit.go.jp/greenbuilding/kankyo/english/bestpractice/index.html)(Photo) Daiwa Ginza

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

21Section 3External GrowthThe Real Estate Market and Trading Performance
The
The Real
Real Estate
Estate Market
Market andand Trading
Trading Performance
Performance
DI=Diffusion Index (Aboveis easy (accommodating),
whereas below
is severe)00

Active investment for competitive
properties after thorough selection

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

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

Building Age (Year) Invest heavily in the five central wards of Tokyo and equivalentarea.
 Thoroughly select properties in view of actual demand toward

location (distance to station, station power, popularity, crowd
attraction).
 Target properties to improve stability and profitability of ourexisting portfolio.
 Invest in buildings less than 25 years of building age.

█ Status After Acquisition of Scheduled
Properties for the 16th Fiscal Period
End of the 15th FP
Greater Tokyo
6.9%

Major Regional
Cities 3.0%

After acquisition
GreaterTokyo
6.6%

Major Regional
Cities 2.9%

Daiwa Kudan
Tosen Dogenzaka Daini Building
Akasaka Business Place
Daiwa Nishi-Shimbashi
Daiwa Jinbocho

Five Central
Wards of Tokyo
90.1%

E SPACE TOWER

Five Central
Wards of Tokyo
90.5%

Jinbocho
Kamioooka Eye PlaceMark BuildingWest Park Osaki
Daiwa Kayabacho Building

Honshu Meieki Building

Nihonbashi Hongokucho Tosei Building

shinyon curumu

Distance to station (minutes)*

andindicate properties acquired after sponsor changes, and distance to station is measured by the
distance to the nearest station.

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

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

General BusinessCompanies

Potential Needs and Trends- Possibility to sell to focus on core business.
- Possibility to sell with the purpose of financial improvement.

General Contractors- Possibility to sell with the purpose of enjoying development
income.

Developers- Possibility to sell after booking of impairment loss.

Lenders- Continue to refinance for core assets.

Creditors- Possibility to sell from senior lenders and servicers (however,the number of cases is on a decreasing trend)

CMBS (Commercial
Mortgage Backed
Securities)

Funds* 物件数は情報を入手した延べ件数* Number of gross proposals.

Others- Continue to refinance.
- Possibility to sell due to locked in gains and losses
accompanying the fund’s exit.

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

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

25

15th FP Property Acquisition (1)█ shinyon curumu

Expected NOI: 4.3%

Acquisition Price: 9,650 million yen(Settlement Date: December 3, 2012 / April 12, 2013)

Location

4-2-23 Shinjuku Shinjuku-ku, Tokyo

Site Area

1,144.63㎡

Structure

S/RC

Floor

B2/11F

Total Floor
Area
Appraisal
Value
Construction
Date
Occupancy
Rate█ Honshu Meieki Building

Expected NOI: 6.0%

Acquisition Price: 5,300 million yen(Settlement Date: February 1, 2013)

9,234.99㎡

Location

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

10,100 million yen (May 2013)

Site Area

2,059.56㎡

January 25, 2012

StructureS

55.9% (May 2013)

Floor

12F

Total Floor
Area
Appraisal
Value
Construction
Date
Occupancy
Rate

10,416.96㎡
6,000 million yen (May 2013)
December 20, 2007
85.4% (May 2013)

 Transportation access Transportation access

4-minute walk from the new south exit of JR Lines, directly connectedto the access way of the Shinjuku 3-chome Station on the Tokyo Metro
Marunouchi Line and the Fukutoshin Line.
 Feature of the property
The property is located where the office and commercial areas
intersect. With further development of the area, mid- to long-term
demand from tenants is expected.

6-minute walk from Nagoya Station on JR and Nagoya city metro Lineand 2-minute walk from underground doorway leading to Nagoya
Station underground shopping arcade.
 Feature of the property
Three skyscrapers are planned to be completed in the area around
Nagoya Station. The area’s business accumulation is expected to grow.

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.

26

15th FP Property Acquisition (2)█ Kamiooka Eye Mark Building Expected NOI: 6.1% █ Sunline Building No. 7 (Additional Acquisition)
Acquisition Price: 2,000 million yen(Settlement Date: March 1, 2013)

Location

1-14-6 Kamiooka Nishi, Konan-ku
Yokohama-shi, Kanagawa Prefecture

Site Area

689.12㎡

Structure

S/SRC

Floor

B3/7F

Acquisition Price: 230 million yen(Settlement Date: March 29, 2013 and May 29)

Total Floor
Area
Appraisal
Value
Construction
Date
Occupancy
Rate

3,755.36㎡
2,040 million yen (May 2013)
May 13, 2011
100% (May 2013)

Location

4-7-2 Kojimachi, Chiyoda-ku

Site area(total)608.42㎡ (additional acquisition: approx. 8.5%)

Total floorarea

3,942.61㎡

Total floor are of
the exclusive space
Co-ownershipinterest of thecommon space
AppraisalValue

260.89㎡(additional acquisition)
8.93 % (additional acquisition)
236million yen (additional
acquisition, Jan. 2013)

 Transportation access Transportation access1-minute walk from Kamiooka Station on Keikyu Line and Yokohama
Municipal Subway.
 Feature of the property
Relatively new property in front of the station with a high level ofcompetitiveness and high office demand from companies that provide
services for local residents around Kamiooka Station.

A 2-minute walk from Kojimachi Station on the Tokyo Metro Yurakucho Line, a 7minute walk from Hanzomon Station on the Tokyo Metro Hanzomon Line, and a
7-minute walk from Yotsuya Station on the JR Line and the Tokyo Metro
Marunouchi/Nanboku Lines.
 Effects of acquisition
Having come to own the whole compartmentalized ownership of the property due
to the additional acquisition, the efficiency and liquidity of management
operations are expected to be enhanced and, accompanying this, the cap rate
significantly improve and contribute to increasing appraisal value.

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

16th FP Property Acquisition (1)█ Tousen Dogenzaka Daini Building
Acquisition Price: 4,500 million yen (Settlement Date: July 3, 2013)

Expected NOI: 4.6%
█ Demand for office buildings in Shibuya,
Dogenzaka, Sakuradai, and Nanpeidai
Other
20.0%
Commercial(Wholesale & Retail Trade)
10.0%Services
16.0%

Information,
Communication, &
IT
54.0%

(Data): Compiled by DOI based on office rent data of Sanko Estate█ Redevelopment plan of Shibuya Station perimeter

Location28-1 Maruyama-cho, Shibuya-ku

Site Area

721.34㎡

Structure

SRC

Floor
Total Floor
Area
Construction
date
Occupancyrate
Appraisalvalue

B1/ 11F
5,644.91㎡
March 11, 1988 (new construction)
October 6, 1988 (extension)
100.0% (at time of acquisition)
4,630 million yen (May 2013)█ Convenient transportation access
9 9-minute walk from Shibuya Station on the JR Line, 3-

minute walk from a major business, commercial, andhotel complex directly connected to Shibuya Station,and 4-minue walk from Shinsen Station on the Keio
Inokashira Line.
9 Multiple accessibility to lines such as JR, Tokyo Metro,
Tokyu, and Keio.

█ Characteristics of the local area
9 Further development is expected since Shibuya area

enjoys abundant needs for office space primarily fromIT and IT-related companies, and redevelopment of the
Shibuya Station area is planned.

(Data): Compiled by DOI based on press releases of Tokyu
Corporation and 4 other companies

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

16th FP Property Acquisition (2) - Scheduled Property Acquisition █ Akasaka Business Place
Acquisition Price: 9,200 million yen (Scheduled Settlement Date: August 9, 2013) Expected NOI: 4.8%
█ Characteristics of the local area
9 There are many leading, domestic

corporations and foreign companies, andis one of the foremost popular areas inTokyo where it is packed with many
commercial and service-relatedcompanies.
9 There are commercial TV stations, major
advertising agencies, and IT/media relatedcompanies around the property, and it has
a high accumulation of companies related
to such industries.

█ Redevelopment plans around theproperty
9 Multiple redevelopment plans areunderway around the property.

Location

2-14-5 Akasaka, Minato-ku

Site Area

2,521.95㎡

Structure

SRC

Floor
Total Floor
Area
Construction
date
Occupancyrate
Appraisal
value

B2/7F
13,554.49㎡
September 13, 1990
89.2% (at planned acquisition date)
10,200 million yen (Jun. 2013)█ Property close to Akasaka Station
9 2-minute walk from Akasaka Station on theTokyo Metro Chiyoda Line.
9 There are major subway stations, such as

Akasakamitsuke Station on the Tokyo Metro
Marunouchi/Ginza Lines and Tameikesanno
Station on the Ginza and Nanboku Line,around the property, and there is multiple
accessibility to lines.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

29

Properties Acquired after Sponsor Change
Acquisition Period

9th Fiscal Period

Property nameDaiwa Jimbocho

Daiwa Nishi-Shimbashi

Daiwa Kudan

Daiwa Kayabacho Building

Address

Kanda Jimbocho,
Chiyoda-ku, Tokyo

Nishi-Shimbashi,
Minato-ku, Tokyo

Kudan Minami,
Chiyoda-ku, Tokyo

Acquisition Price

4,150 million yen

5,000 million yen

Seller

ORIX JREIT Inc.

Acquisition date
Age of bldg. *NOI yield *Acquisition Period
Property name10th Fiscal Period

12th Fiscal Period

13th Fiscal Period

Jimbocho PlaceE SPACE TOWER

Nihonbashi-Hongokucho
Tosei Build

Nihonbashi-Kayabacho,
Chuo-ku, Tokyo

Kanda Jimbocho,
Chiyoda-ku, Tokyo

Maruyamacho,
Shibuya-ku, Tokyo

Nihonbashi-Hongokucho,
Chuo-ku, Tokyo

4,000 million yen

5,600 million yen

3,550 million yen

24,000 million yen

1,721 million yen

Japan Core Asset II Ltd.

Shining Nova the Fifth B
TMK

Daiwa Property Co., Ltd.

Tokyu Land Corporation

Endeavor Realty Fund Ltd.

Tosei Corporation

March 10, 2010

August 13, 2010

September. 2, 2010

March 25, 2011

March 29, 2011

July 8, 2011

May 11,2012

13.0 years
6.0%

17.0 years
5.5%

23.4 years
5.3%

0.9 years
5.1%

1.1 years
5.1%

8.7 years
4.8%

2.0 years
5.3%

Kamiooka Eye Mark
Building

Tousen Dogenzaka Daini
Building

14th Fiscal PeriodWest Park Osaki

11th Fiscal Period

15th Fiscal Period
shinyon curumu

Hoshu Meieki Building

16th Fiscal Period
Akasaka Business Place

Total

Address
Acquisition Price
SellerOsaki Shinagawa-ku,
Tokyo
1,650 million yen
MCR Six GK

Acquisition date

September 18, 2012

Age of bldg. *NOI yield *5.0 years
6.1%

Shinjuku Shinjuku-ku,
Tokyo
9,650 million yen
Two domestic
industrial companies
December 3, 2012 /April 12, 2013
1.0 years
4.3%

Meieki-Minami Nakamura- Kamiooka Nishi, Konan-ku
ku, Nagoya-shi Aichi
Yokohama-shi, Kanagawa
5,300 million yen
2,000 million yen
Domestic special
Shimizu Corporation
purpose company

Shibuya-ku, Tokyo

Minato-ku, Tokyo－

4,500 million yen
Domestic special purpose
company

9,200 million yen

80,321 million yen

Hakuba Capital 1 TMK－February 1, 2013

March 1,2013

July 3, 2013

August 9, 2013 (scheduled)－

5.1 years
6.0%

1.8 years
6.1%

25.3 years
4.6%

22.9 years
4.8%

10.9 years **－***Numbers of the building age and NOI yield are based on the time of acquisition.
The building age is calculated by weighted average of the acquisition price.

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

30Section 4
Financial Strategy

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

█ Status of Interest-bearing Liabilities
14th Fiscal Period

15th Fiscal Period Ratio of Long and Short-Term Borrowings

25.0%

Upper limit range LTV in themedium-term target

29.2%

70.8%

75.0%

Long-term borrowings

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

86.2%
Fixed interest

19.5%

80.5%
Floating interest* LTV( based on Total Asset) ＝Total interest-bearing liabilities / Total Asset

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

32

Status of Interest-bearing Liabilities (2)Changes
Changes inin Procured
Procured Years
Years ofofInterestBearing
Liabilities
Interest
Interest-Bearing Liabilities

Repayment
Repayment Dates
Dates(Million Yen)

(Year)(Year)

25,00021,70020,00015,00010,0005,000

Nov.2018
27th FP
May.2019
28th FP
Nov.2019
29th FP
May.2020
30th FP
Nov.2020

15th FP
May.2013
16th FP
Nov.2013
17th FP
May.2014
18th FP
Nov.2014
19th FP
May.2015
20th FP
Nov.2015
21st FP
May.2016
22nd FP
Nov.2016
23rd FP
May.2017
24th FP
Nov.2017
25th FP
May.2018
26th FP

0This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

33

Status of Interest-bearing Liabilities (3)█ List of Interest-bearing Liabilities
Balance(million yen)
Shinsei Bank, Ltd.
2,000
ORIX Bank Corporation
1,500
2,000
The Bank of Fukuoka, Ltd.
2,000
Resona Bank, Limited(*)
Resona Bank, Limited(*)
2,000
Sumitomo Mitsui Banking Corporation.(*)
2,000
Shinsei Bank, Ltd.
1,000
Kansai Urban Banking Corporation
5,000
5,000
Sumitomo Mitsui Trust Bank, Limited(*)
1,000
The Bank of Fukuoka, Ltd.(*)
Mizuho Bank, Ltd.(*)
4,900
Mitsubishi UFJ Trust and Banking Corporation
3,000
The Gunma Bank, Ltd.(*)
1,000
Total current maturities of long term borrowings
32,400Sumitomo Mitsui Banking Corporation.(*)
13,5003,000
Mizuho Trust and Banking Co., Ltd.(*)
1,500
Aozora Bank, Ltd.(*)
Shinsei Bank, Ltd.(*)
1,000
Resona Bank, Limited(*)
3,000
Development Bank of Japan Inc.
3,000
Shinsei Bank, Ltd.(*)
2,000
1,700
Development Bank of Japan Inc.
6,500
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation.(*)
4,000
Sumitomo Mitsui Trust Bank, Limited(*)
3,000
Mizuho Trust and Banking Co., Ltd.(*)
1,500
Shinsei Bank, Ltd.(*)
2,000
Mizuho Bank, Ltd.(*)
2,000
500
The Bank of Yokohama, Ltd.(*)
2,000
The Shizuoka Bank, Ltd
Development Bank of Japan Inc.
2,550
Sumitomo Mitsui Banking Corporation.(*)
1,500
The Hiroshima Bank, Ltd.(*)
1,000
Mizuho Bank, Ltd.(*)
3,400
500
Sumitomo Mitsui Banking Corporation.(*)
1,000
The Musashino Bank, Ltd.(*)
The 77 Bank, Ltd.(*)
1,000

Type
Float
Float
Float
Fixed
Fixed
Fixed
Float
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed

Date ofadvance
10/9/2
10/9/30
10/9/30
11/3/18
11/3/25
11/3/25
11/5/25
11/6/30
11/7/8
11/7/8
11/9/30
11/9/30
11/9/30

Due date
13/7/31
13/9/30
13/9/30
14/3/18
14/3/18
14/3/25
13/11/29
13/6/30
13/7/8
13/7/8
14/3/31
14/3/31
14/3/31

Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed

0.94%
0.97%
0.97%
0.97%
0.88%
1.09%
0.89%
1.02%
1.02%
0.86%
0.85%
0.85%
0.75%
0.67%
0.67%
0.52%
0.96%
0.71%
0.79%
0.69%
0.61%
0.61%
0.61%

11/7/8
11/7/8
11/7/8
11/7/8
11/8/31
11/9/30
11/9/30
12/5/11
12/5/21
12/5/21
12/5/21
12/5/21
12/5/21
12/5/21
12/5/21
12/8/31
12/9/18
12/9/18
12/9/18
12/9/18
12/9/18
12/9/18
12/9/18

14/7/8
14/7/8
14/7/8
14/7/815/2/27
15/3/31
15/3/31
17/5/10
17/5/20
17/5/31
17/5/31
17/5/31
16/5/31
15/5/29
15/5/29
15/8/31
17/8/31
17/8/31
17/8/31
18/2/28
15/8/31
15/8/31
15/8/31

Term

LenderBalance(million yen)Mizuho Bank, Ltd.(*)
1,000
Sumitomo Mitsui Trust Bank, Limited(*)
1,950
1,000
The Gunma Bank, Ltd. (*)
300
Taiyo Life Insurance Company
Nippon Life Inslance Company
300
Development Bank of Japan Inc.
2,000
Shinsei Bank, Ltd.(*)
2,000
ORIX Bank Corporation
1,000
2,000
Sumitomo Mitsui Banking Corporation.
1,500
Sumitomo Mitsui Trust Bank, Limited
Tokio Marine & Nichido Fire Insurance Co., Ltd.
1,000
The Yamaguchi Bank, Ltd.
500
The Higashi-Nippon Bank, Limited
500
Aozora Bank, Ltd.
2,000
Aozora Bank, Ltd.
1,500
1,000
The Kagawa Bank, Ltd.
2,000
Resona Bank, Limited
Fukoku Mutual Life Insurance Company
200
Sumitomo Mitsui Trust Bank, Limited
1,500
Development Bank of Japan Inc.
1,000
Aozora Bank, Ltd.
1,000
500
The Gunma Bank, Ltd.
500
The Musashino Bank, Ltd.
Total long-term borrowings
87,400Total borrowings
119,800
Long term borrowings

Current maturities of long term borrowings

Lender(As of May 31, 2013)

Interest
Rate (%)
T+0.90%T+0.85%
T+0.85%
1.04%
1.04%
0.96%
T+0.55%
0.98%
0.87%
0.87%
0.77%
0.96%
0.77%

Long term borrowings

Term

Type
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Float
Float
Float
Fixed
Fixed
Float
Float
Float
Float
Float
Fixed
Float
Fixed
Float
Float
Float

Interest
Rate (%)
0.71%
0.60%
0.57%
0.60%
0.60%
0.85%
0.60%
T+0.35%
T+0.43%
T+0.43%0.69%
0.69%
T+0.35%
T+0.43%
T+0.25%
T+0.40%T+0.43%0.53%
T+0.40%0.96%
T+0.40%T+0.32%
L+0.32%

Date of Due dateadvance
12/9/18 17/8/31
12/11/30 18/2/28
12/11/30 15/11/30
12/11/30 15/11/30
12/11/30 15/11/30
12/12/3 17/11/30
12/12/3 17/11/30
13/1/10 18/2/28
13/2/1 20/2/28
13/2/1 20/2/28
13/2/1 17/11/30
13/2/1 17/11/30
13/2/1 18/2/28
13/2/28 20/2/28
13/2/28 16/8/31
13/2/28 19/2/28
13/3/1 20/2/28
13/3/29 16/5/31
13/4/12 19/11/29
13/4/12 19/11/29
13/4/12 19/5/31
13/4/12 18/5/31
13/4/12 18/5/31

Note: Fixed Interest Rate is rounded to the second decimal place.
(*) Interest rates that were changed from a floating rate to a fixed rate by concluding the swap agreement aredescribed as fixed interest rates.
* Mizuho Corporate Bank, Ltd. merged with Mizuho Bank, Ltd. on July 1, 2013 and thus is indicated as its
post-merger company name of Mizuho Bank, Ltd.

█ Investment Corporation Bonds
Term
Long-term

Lender
No. 1 Unsecured and SubordinatedWithin 1 year No. 2 Unsecured Investment Corporation

BalanceType(million yen)InterestRate(%)

Date of Due dateadvance

3,500 Float※ T+2.40% ※ 09/9/17 19/9/17
5,000 Fixed

1.87%

10/6/24 13/6/24

8,500
Total investment corporate bonds* The interest rate will change to 6 month TIBOR + 390 bps, from the day after the tenth payment date until
maturity, due to 5 year lapse step-up floating interest.

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

34

Status of Interest-bearing Liabilities (4)- Total Borrowing from Financial Institutions The
The 14th
14th Fiscal
Fiscal Period
Period(ended(ended November
November 2012)2012)
Name of Financial Institution
Sumitomo Mitsui Banking Corporation.
Development Bank of Japan Inc.
Sumitomo Mitsui Trust Bank, Limited
Shinsei Bank, Ltd.
Mizuho Corporate Bank, Ltd.
Resona Bank, LimitedAozora Bank, Ltd.
Kansai Urban Banking Corporation
Mizuho Trust and Banking Co., Ltd.
Mitsubishi UFJ Trust and Banking Corporation
the Bank of Fukuoka, Ltd.
ORIX Bank Corporation
The Shizuoka Bank, Ltd
The Gunma Bank, Ltd.
The Hiroshima Bank, Ltd.
The 77 Bank, Ltd.
The Musashino Bank, Ltd.
The Kagawa Bank, Ltd.
The Bank of Yokohama, Ltd.
TAIYO LIFE INSURANCE COMPANY
Nippon Life Insurance Company
Investment Corporate Bond
Total

Balance(million yen)
21,50013,75013,350
8,000
7,900
7,000
5,000
5,000
4,500
3,000
3,000
2,500
2,000
2,000
1,000
1,000
1,000
981
500
300
300
8,500
112,081Note: Balance is rounded down to less than million yen.
Indicates new lenders in the 15th FP.

The
The 15th
15th Fiscal
Fiscal Period
Period(ended(ended May
May 2013)
2013)
Share

Name of Financial Institution

19.2%
12.3%
11.9%
7.1%
7.0%
6.2%
4.5%
4.5%
4.0%
2.7%
2.7%
2.2%
1.8%
1.8%
0.9%
0.9%
0.9%
0.9%
0.4%
0.3%
0.3%
7.6%
100.0%

Sumitomo Mitsui Banking Corporation.
Development Bank of Japan Inc.
Sumitomo Mitsui Trust Bank, Limited
Shinsei Bank, Ltd.
Resona Bank, Limited
Mizuho Bank, Ltd.
Aozora Bank, Ltd.
Kansai Urban Banking Corporation
Mizuho Trust and Banking Co., Ltd.
Mitsubishi UFJ Trust and Banking Corporation
The Bank of Fukuoka, Ltd.
ORIX Bank Corporation
The Gunma Bank, Ltd.
The Shizuoka Bank, Ltd
The Musashino Bank, Ltd.
The Hiroshima Bank, Ltd.
The Kagawa Bank, Ltd.
The 77 Bank, Ltd.
Tokio Marine & Nichido Fire Insurance Co., Ltd.
The Bank of Yokohama, Ltd.
The Yamaguchi Bank, Ltd.
The Higashi-Nippon Bank, Limited
Taiyo Life Insurance Company
Nippon Life Insurance Company
Fukoku Mutual Life Insurance Company
Investment Corporate Bond
Total

BalanceShare(million yen)
23,500 18.3%
16,750 13.1%
16,350 12.7%
10,000
7.8%
9,000
7.0%
7,900
6.2%
6,000
4.7%
5,000
3.9%
4,500
3.5%
3,000
2.3%
3,000
2.3%
2,500
1.9%
2,500
1.9%
2,000
1.6%
1,500
1.2%
1,000
0.8%
1,000
0.8%
1,000
0.8%
1,000
0.8%
500
0.4%
500
0.4%
500
0.4%
300
0.2%
300
0.2%
200
0.2%
8,500
6.6%
128,300 100.0%* Mizuho Corporate Bank, Ltd. merged with Mizuho Bank, Ltd. on July 1, 2013 and thus isindicated as its post-merger company name of Mizuho Bank, Ltd.

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

35

Unitholders█ Unitholders’ Share by Investor Type█ List of Top 10 Investors

Investor Type

14th Fiscal
PeriodNumber ofUnit

15th Fiscal
PeriodNumber of
Unit

Change of
Unit

Rate*

Individuals

34,742

31,108-3,634

7.86%

148,487

143,739-4,74836.32%

Financial Institutions

Commercial Bank

0

0

0

No.

Investor Name

14th Fiscal 15th Fiscal
PeriodPeriodNumber of Number of
Unit
Unit

Change of
Unit

Rate*

1

Daiwa Investment Management Inc.

128,905

128,905032.57%

2

Japan trustee Services Bank, Ltd.
(Trust Account)

82,70867,897-14,81117.15%

3

Daiwa Securities Group Inc.

51,89359,321

7,428

14.99%

4

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

23,76928,640

4,871

7.24%

0.00%

Regional Bank

1,452

1,158

-294

0.29%

Trust Bank

145,839

141,596-4,24335.77%

5

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

19,212

23,543

4,331

5.95%

498

461

-37

0.12%

6

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

20,15020,681

531

5.23%

0

0

0

0.00%
7

Nomura Bank (Luxembourg) S.A.

7,359

3,686

-3,673

0.93%

698

524

-174

0.13%

Other Domestic Corporation

183,787

191,2387,451

48.32%

8

MSIP CLIENT SECURITIES

10

2,265

2,255

0.57%

Foreigner

27,01628,192

1,176

7.12%

9

Individuals

2,520

1,940

-580

0.49%

Securities

1,766

1,521

-245

0.38%

1,593

1,789

196

0.45%

395,798

395,7980

100.00%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

Life Insurance
Non-life Insurance
Other Financial Institutions

Total

10 State Street Bank and Trust Company 505223(*) Rounded to the second decimal place.

(*) Rounded to the second decimal place.

Activities in the 16th Fiscal Period█

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

█

█

¾

Focus on leasing with good terms by further strengthening collaboration with various agents.

¾

Mutually communicate by enhancing communication with existing tenants.

¾

Work to look into plans that lead to cost reduction while maintaining the quality of construction.

¾

Raise the added value and competitiveness by advancing environmental responses at existing assets.

¾

Continue to strengthen collaboration with Daiwa Securities Group.

External Growth → Active investment for competitive properties after thorough selection¾

After consideration of the acquisition in the 16th Fiscal Period expected LTV (based on total assets) will be 39.9%.

¾

Continue expeditious acquisition of highly-competitive properties.

¾

Aim for early achievement of the medium-term target total acquisition price of 350 billion yen (expected LTV(based on total assets): 40.7%).

¾

Strive to improve existing portfolio by acquiring properties with high actual demand (distance to station, station
power, popularity, crowd attraction).

Financial Strategy → Continue to reduce financial risk and strengthen financial structure¾

Strengthen ties with our financial institutions for further reduction of financial risk.

¾

Lengthen maturities and advance financial stabilization.

¾

Further build on and strengthen bank formation.

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

Appendix

Summary of Results for the 15th Fiscal Period (1) - Balance Sheet █ Comparison with Results of the 14th 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.

39

Summary of Results for the 15th Fiscal Period (2) - Income Statement █ Comparison with Results of the 14th Fiscal Period█ Comparison with the 15th Fiscal Period Forecasts

Unit: Million Yen
14th Fiscal Period
Number of Properties (at period-end)
Effective Number of Days of Investment
Operating Revenues (A)Gain on Sale
Operating Expenses (B)Expenses related to Rental Business(excluding depreciation)
Depreciation
Gain and Loss from Rental Operations(excluding gain on sale)

Unit: Million Yen
15th Fiscal Period(January 16, 2013)

15th Fiscal Period

Number of Properties (at period-end)41

41

Effective Number of Days of Investment

182

182

15th Fiscal Period

38
183

Change

41
182
7,566
―
4,419

7,615
―
4,306

+48
―
-113

Operating Revenues (A)

2,296

2,219

-76

Operating Expenses (B)

1,305

1,280

-25

3,964

4,115

+151

3,146

3,308

+161

787
631

733
587

-53
-44

2,364

2,590

+225

Extraordinary Income

5

―

-5

Extraordinary Expenses

―

―

―

2,369

2,589

+219

395,798

395,798―

Operating Income (A-B)
Non-operating Expenses
Interest Expense (including cap amortization)
Ordinary Income

Net Income

Investment Units Issued and Outstanding

7,605

7,615

+9

―

―

―

4,381

4,306

-74

Expenses related to Rental Business(excluding depreciation)

2,257

2,219

-38

Depreciation

1,286

1,280

-6

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

4,061

4,115

+53

Operating Income (A-B)

3,224

3,308

+84

Non-operating Expenses

748

733

-15

601

587

-13

2,475

2,590

+114

Extraordinary Income

―

―

―

Extraordinary Expenses

―

―

―

2,473

2,589

+115

395798395798

―

6,250

6,542

+292

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

Gain on Sale

Interest Expense (including cap amortization)
Ordinary Income

Net Income
Investment Units Issued and Outstanding

Dividend per Unit (Unit: Yen)

Change

5,986

6,542

+556

Dividend per Unit (Unit: Yen)

Forecasts (16th and 17th Fiscal Periods)█

Forecast for the 16th and 17th Fiscal Period
Unit: Million Yen
15th Fiscal Period

16th Fiscal Period Forecast 17th Fiscal Period Forecast

Number of Properties (at period-end)

41

43

43

Effective Number of Days of Investment

182

183

182

Operating Revenues (A)

7,615

8,242

8,235

―

―

―

4,306

4,666

4,607

Expenses related to Rental Business (excluding depreciation)

2,219

2,457

2,394

Depreciation

1,280

1,323

1,334

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

4,115

4,462

4,506

Operating Income (A-B)

3,308

3,576

3,628

Non-operating Expenses

733

723

737

587

573

583

2,590

2,852

2,891

Extraordinary Income

―

―

―

Extraordinary Expenses

―

―

―

2,589

2,850

2,889

395798395798395798

6,542

7,200

7,300

Gain on Sale
Operating Expenses (B)Interest Expense (including cap amortization)
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 statusof assets under management.

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

41

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

Unit

11th FP

12th FP

13th FP

14th FP

15th FP

Day

182

183

183

183

182

Property

35

36

37

38

41

%

95.4

92.4

94.3

96.4

95.0

306,492

311,607313,923

325,751

 NOI

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

Net Income + Depreciation – Gain on Sale
Average acquisition priceMillion Yen

281,535

NOI (after deduction of gain on sale)

Million Yen

4,873

5,482

5,265

5,270

5,395

Funds from operation (FFO)

Million Yen

2,734

3,114

3,388

3,675

3,869

 ROA

Annualized Net Income / Total Assets
 ROE

Annualized Net Income / Total Investments
Return on asset (ROA)

%

1.1

1.1

1.2

1.4

1.6

Return on equity (ROE)

%

1.5

1.8

2.0

2.4

2.6

Capital adequacy ratio at end of period

%

67.1

62.0

61.7

61.8

58.8

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

%

28.9

34.0

34.2

34.4

37.5

 Loan-to-Value (LTV) at end of Fiscal Period

Interest-bearing liabilities at end of Fiscal Period/ Total assets at end of Fiscal Period

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

42

Analyses of Tenants(As of May 31, 2013)

Major
Major Tenants
Tenants Top
Top 1010 ListList%% ShareShare ofof Industries*
Industries* ofof Top
Top 100
100 Tenants**
Tenants**

Leased Space
(㎡)
(*2)

% of Total
Leased Space(*3)

Daiwa Tsukishima

6,379.88

2.9%

Trend Micro Incorporated

Shinjuku Maynds Tower

6,314.58

2.9%

Not disclosed (*)

Daiwa Kayabacho Build.

5,899.11

2.7%

EMC Japan

Shinjuku Maynds Tower

5,693.39

2.6%

Fields Corporation

E SPACE TOWER

5,371.74

2.5%

Not disclosed (*)

Shinjuku Maynds Tower

5,337.60

2.4%

Daiwa Onarimon

5,100.06

2.3%

Sekisui House, Ltd.

Shinjuku Maynds Tower

4,498.57

2.0%

FreeBit Co., Ltd.

E SPACE TOWER

4,477.93

2.0%*1 当該テナント名を開示することについて承諾が得られていないため記載せず
Not disclosed(*)
Daiwa Sarugakucho
3,657.43

1.7%

Total

24.5%

Tenant Name(*1)
Not disclosed (*)

UCC Holdings Co., Ltd.

Property*2 新宿マインズタワーのテナントは、本投資法人が保有する持分(6/7)に相当する面積を記載*3 全賃貸面積に占める割合は少数第2位以下を切り捨て

52,730.29* Industries are categorized according to TSE’s 33 industry groups.
** The leased space of top 100 tenant covers 67.2% of total leased space
as of the end of the 15th Fiscal Period.

*1 Not disclosed due to tenant's request.
*2* Leased spaces of the tenants in Shinjuku Maynds Tower are described as the figure equivalent to 6/7,ownership % of the Investment Corporation.
*3 Rounded down to first decimal place.

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

43

Appraisal Value Compared to the Previous Fiscal Period (1)(Unit: Million Yen)
Property Name

Compared to
End of 14th Period

Appraisal value
End of 14th Period

End of 15th Period

Difference

ChangeDaiwa Ginza

14,30014,700+400

2.8%Daiwa Ginza Annex

3,010

3,100

+90

Daiwa Shibaura

7,470

7,470

Daiwa Minami Aoyama

3,950

Daiwa Sarugakucho

Acquisition
Price

Compared to
Acquisition Price

Cap Rate

Difference

Change14th Period 15th Period

14,100

+600

4.3%

4.4%

4.3%

3.0%

3,050

+50

1.6%

4.3%

4.2%

―

0.0%

8,265

-795

-9.6%

5.0%

5.0%

4,010

+60

1.5%

4,550

-540

-11.9%

4.7%

4.6%

2,980

3,090

+110

3.7%

3,190

-100

-3.1%

5.2%

5.1%

Daiwa A Hamamatsucho

2,830

2,830

―

0.0%

2,865

-35

-1.2%

4.7%

4.7%

Daiwa Jingumae

1,990

2,050

+60

3.0%

2,800

-750

-26.8%

4.6%

4.5%

Daiwa Shibadaimon

2,620

2,640

+20

0.8%

2,578

+62

2.4%

4.6%

4.6%

Daiwa Misakicho

2,470

2,480

+10

0.4%

2,346

+134

5.7%

5.1%

5.1%

Daiwa Shimbashi 510

2,340

2,310

-30

-1.3%

2,080

+230

11.1%

4.9%

4.8%

Daiwa Tsukijiekimae

1,430

1,400

-30

-2.1%

1,560

-160

-10.3%

5.2%

5.1%

Daiwa Tsukiji

1,420

1,420

―

0.0%

1,240

+180

14.5%

5.1%

5.0%

Daiwa Tsukiji 616

2,320

2,370

+50

2.2%

2,440

-70

-2.9%

4.9%

4.9%

Daiwa Tsukishima Bldg.

7,810

7,850

+40

0.5%

7,840

+10

0.1%

5.1%

5.1%

Nihombashi MS Bldg.

2,380

2,410

+30

1.3%

2,520

-110

-4.4%

4.8%

4.8%

Daiwa Azabudai

1,740

1,730

-10

-0.6%

1,600

+130

8.1%

4.7%

4.6%

Daiwa Shibuya SS

3,710

3,830

+120

3.2%

3,930

-100

-2.5%

4.7%

4.6%

Daiwa Nihombashi Honcho

6,790

6,980

+190

2.8%

7,420

-440

-5.9%

4.8%

4.7%

Daiwa Ginza 1-chome

4,340

4,480

+140

3.2%

4,620

-140

-3.0%

4.6%

4.5%

Daiwa Kyobashi

2,930

3,030

+100

3.4%

3,460

-430

-12.4%

4.8%

4.7%

Sunline Building No. 7

2,110

2,600

+254

12.0%

2,910

-310

-10.7%

4.7%

4.4%* Difference and change in “Compared to End of the 14th Period” do not include the impact of the properties acquired in the 15th Period (including acquisition of additional ownership:
Sunline Building No. 7 appraisal value of 236 million yen).

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

44

Appraisal Value Compared to the Previous Fiscal Period (2)(Unit: Million Yen)
Property Name

Compared to
End of 14th Period

Appraisal value
End of 14th Period

End of 15th Period

Difference

Acquisition
Price

ChangeCompared to
Acquisition Price
Difference

ChangeCap Rate
14th Period 15th Period

Daiwa Onarimon

13,00013,300+300

2.3%

13,860

-560

-4.0%

4.6%

4.5%

Shinjuku Maynds Tower

108,000

113,000+5,0004.6%

133,800-20,800-15.5%

4.0%

3.8%

SHIBUYA EDGE

3,930

4,040

+110

2.8%

5,900

-1,860-31.5%

4.5%

4.4%

Daiwa Kodenmacho

1,910

1,960

+50

2.6%

2,460

-500

-20.3%

5.1%

5.0%

Daiwa Jimbocho

2,730

2,780

+50

1.8%

4,150

-1,370-33.0%

5.1%

5.0%

Daiwa Nishishimbashi

4,900

4,710

-190

-3.9%

5,000

-290

-5.8%

4.8%

4.8%

Daiwa Kudan

2,730

2,830

+100

3.7%

4,000

-1,170-29.3%

4.9%

4.8%

Daiwa Kayabacho Building

6,260

6,300

+40

0.6%

5,600

+700

12.5%

4.4%

4.4%

Jimbocho Place

3,660

3,670

+10

0.3%

3,550

+120

3.4%

4.4%

4.4%

E SPACE TOWER

26,00026,500+500

1.9%24,000+2,500

10.4%

4.4%

4.2%

Nihonbashi Hongokucho Tosei Build

1,810

1,830

+20

1.1%

1,721

+109

6.3%

5.0%

5.0%

shinyon curumu―

10,100

―

―

9,650

+450

4.7%

―

4.3%

Daiwa Kinshicho

3,300

3,320

+20

0.6%

3,653

-333

-9.1%

5.3%

5.3%

Daiwa Higashi-Ikebukuro

3,510

3,480

-30

-0.9%

2,958

+522

17.6%

5.1%

5.2%

Benex S-3

3,200

3,260

+60

1.9%

4,950

-1,690-34.1%

5.7%

5.6%

Daiwa Shinagawa North

5,690

5,820

+130

2.3%

7,710

-1,890-24.5%

5.1%

5.0%West Park Osaki

1,910

1,930

+20

1.0%

1,650

+280

17.0%

4.8%

4.8%

―

2,040

―

―

2,000

+40

2.0%

―

5.6%

2,850

2,860

+10

0.4%

4,810

-1,950-40.5%

5.5%

5.5%

―

6,000

―

―

5,300

+700

13.2%

―

5.2%

276,330

302,510+7,8042.8%

332,086-29,576

-8.9%

―

―

Kamiooka Eye Mark Building
Daiwa Minami-Senba
Honshu Meieki Building
Total(*)* Difference and change in “Compared to End of the 14th Period” do not include the impact of the properties acquired in the 15th Period (including acquisition of additional ownership:
Sunline Building No. 7 appraisal value of 236 million yen).

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

45

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

Property Name

Appraisal Value(End of 15th
period)Summary of Appraisal Report (End of 15th Fiscal Period)
Direct Capitalization Method
Value

Cap Rate

DCF Method
Value

Discount Rate

Terminal Cap
Rate

Integrated Value

Daiwa Ginza

14,70015,7004.3%

14,2004.0%

4.6%

10,500Daiwa Ginza Annex

3,100

3,150

4.2%

3,040

3.9%

4.5%

2,730

Daiwa Shibaura

7,470

7,560

5.0%

7,430

4.8%

5.2%

5,520

Daiwa Minami Aoyama

4,010

4,090

4.6%

3,930

4.3%

4.9%

3,300

Daiwa Sarugakucho

3,090

3,140

5.1%

3,040

4.8%

5.4%

1,560

Daiwa A Hamamatsucho

2,830

2,860

4.7%

2,820

4.5%

4.9%

1,750

Daiwa Jingumae

2,050

2,060

4.5%

2,040

4.2%

4.8%

2,060

Daiwa Shibadaimon

2,640

2,700

4.6%

2,610

4.4%

4.8%

1,570

Daiwa Misakicho

2,480

2,500

5.1%

2,470

4.9%

5.3%

1,300

Daiwa Shimbashi 510

2,310

2,390

4.8%

2,270

4.5%

5.1%

1,760

BPS Square

1,400

1,500

5.1%

1,360

5.1%

5.4%

910

Daiwa Tsukiji

1,420

1,450

5.0%

1,410

5.0%

5.3%

653

Daiwa Tsukiji 616

2,370

2,400

4.9%

2,360

4.6%

5.1%

1,120

Daiwa Tsukishima Bldg.

7,850

7,890

5.1%

7,830

4.8%

5.3%

4,140

Nihombashi MS Bldg.

2,410

2,460

4.8%

2,350

4.5%

5.1%

1,560

Daiwa Azabudai

1,730

1,770

4.6%

1,690

4.3%

4.9%

1,180

Daiwa Shibuya SS

3,830

4,010

4.6%

3,750

4.3%

4.9%

2,690

Daiwa Nihombashi Honcho

6,980

7,330

4.7%

6,830

4.3%

5.0%

3,990

Daiwa Ginza 1-chome

4,480

4,730

4.5%

4,370

4.1%

4.8%

3,780

Daiwa Kyobashi

3,030

3,090

4.7%

2,960

4.4%

5.0%

1,870

Sunline Building No. 7

2,600

2,730

4.4%

2,540

4.1%

4.7%

3,370

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

Appraisal Value at End of Fiscal Period (2)(Unit: Million Yen)
Appraisal Value(End of 15th
period)Property Name

Summary of Appraisal Report (End of 15th Fiscal Period)
Direct Capitalization Method
Value

DCF Method

Cap Rate

Value

Discount Rate

Terminal Cap
Rate

Integrated Value

Daiwa Onarimon

13,30013,500

4.5%

13,100

4.2%

4.8%

9,990

Shinjuku Maynds Tower

113,000

139,000

3.8%

129,000

3.6%

4.0%

96,800SHIBUYA EDGE

4,040

4,240

4.4%

3,960

4.1%

4.7%

2,830

Daiwa Kodenmacho

1,960

2,000

5.0%

1,910

4.7%

5.3%

950

Daiwa Jimbocho

2,780

2,970

5.0%

2,700

5.0%

5.3%

2,560

Daiwa Nishishimbashi

4,710

4,890

4.8%

4,630

4.5%

5.0%

3,310

Daiwa Kudan

2,830

3,040

4.8%

2,750

4.8%

5.1%

1,940

Daiwa Kayabacho Building

6,300

6,390

4.4%

6,260

4.2%

4.6%

4,470

Jimbocho Place

3,670

3,760

4.4%

3,630

4.2%

4.6%

3,120

E SPACE TOWER

26,50026,9004.2%

26,1004.0%

4.4%

21,100Nihonbashi Hongokucho Tosei Build

1,830

1,860

5.0%

1,820

4.8%

5.2%

1,300

shinyon curumu

10,10010,400

4.3%

10,000

4.1%

4.5%

10,200Daiwa Kinshicho

3,320

3,380

5.3%

3,290

5.1%

5.5%

2,060

Daiwa Higashi-Ikebukuro

3,480

3,510

5.2%

3,470

5.0%

5.4%

2,030

Benex S-3

3,260

3,320

5.6%

3,200

5.3%

5.9%

3,280

Daiwa Shinagawa North

5,820

5,960

5.0%

5,680

4.7%

5.3%

4,410

West Park Osaki

1,930

1,950

4.8%

1,920

4.6%

5.0%

1,290

Kamiooka Eye Mark Building

2,040

2,030

5.6%

2,040

5.4%

5.8%

1,930

Daiwa Minami-Senba

2,860

2,900

5.5%

2,820

5.2%

5.8%

1,850

Honshu Meieki Building

6,000

6,100

5.2%

5,950

5.2%

5.4%

6,560

302,510

333,610―315,530――

239,293

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.

47

Portfolio Performance Summary (1)(14th-15th Fiscal Period Results by Property)

(*1)
(*2)
(*3)
(*4)
(*5)
(*6)
(*7)

Sompo Japan Nipponkoa Risk Management Inc. has prepared for the PML. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (Jun. 2013).
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.
Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
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.
(3) NOI in this table is calculated by adjusting the Property-related Taxes for the “NOI (after deduction of gain on sale)” aforementioned in the Appendix “Major Financial Data” so the figures do not match.
NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
Sunline Building No. 7, compartmentalized ownership was additionally acquired on March 29, 2013 and May 29, 2013, was calculated without adjusting the number of operating days.

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

48

Portfolio Performance Summary (2)(14th-15th Fiscal Period Results by Property)

(*1)
(*2)
(*3)
(*4)
(*5)
(*6)
(*7)
(*8)

Sompo Japan Nipponkoa Risk Management Inc. has prepared for the PML. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (Jun. 2013).
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.
Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
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.
(3) NOI in this table is calculated by adjusting the Property-related Taxes for the “NOI (after deduction of gain on sale)” aforementioned in the Appendix “Major Financial Data” so the figures do not match.
NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
Not disclosed due to tenant's request.
Only NOI, Annualized NOI and NOI Yield are indicated as the occupancy rate is 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.

49

Portfolio Performance Summary (3)(14th-15th Fiscal Period Results by Property)

(*1)
(*2)
(*3)
(*4)
(*5)
(*6)
(*7)

Sompo Japan Nipponkoa Risk Management Inc. has prepared for the PML. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (Jun. 2013).
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.
Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
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.
(3) NOI in this table is calculated by adjusting the Property-related Taxes for the “NOI (after deduction of gain on sale)” aforementioned in the Appendix “Major Financial Data” so the figures do not match.
NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
Sunline Building No. 7, compartmentalized ownership was additionally acquired on March 29, 2013 and May 29, 2013, was calculated without adjusting the number of operating days.

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

50

Portfolio Performance Summary (4)(14th-15th Fiscal Period Results by Property)

(*1)
(*2)
(*3)
(*4)
(*5)
(*6)

Sompo Japan Nipponkoa Risk Management Inc. has prepared for the PML. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (Jun. 2013).
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.
Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
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.
(3) NOI in this table is calculated by adjusting the Property-related Taxes for the “NOI (after deduction of gain on sale)” aforementioned in the Appendix “Major Financial Data” so the figures do not match.
NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.

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

Portfolio Performance Summary (5)(14th-15th Fiscal Period Results by Property)

(*1)
(*2)
(*3)
(*4)
(*5)
(*6)
(*7)
(*8)

Sompo Japan Nipponkoa Risk Management Inc. has prepared for the PML. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (Jun. 2013).
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.
Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
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.
(3) NOI in this table is calculated by adjusting the Property-related Taxes for the “NOI (after deduction of gain on sale)” aforementioned in the Appendix “Major Financial Data” so the figures do not match.
NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
Not disclosed due to tenant's request.
While compartmentalized ownership for shinyon curumu was acquired on December 3, 2012 and April 12, 2013, the number of operating days used is from December 3, 2012.

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

52

Portfolio Performance Summary (6)(14th-15th Fiscal Period Results by Property)

(*1)
(*2)
(*3)
(*4)
(*5)
(*6)

Sompo Japan Nipponkoa Risk Management Inc. has prepared for the PML. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (Jun. 2013).
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.
Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
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.
(3) NOI in this table is calculated by adjusting the Property-related Taxes for the “NOI (after deduction of gain on sale)” aforementioned in the Appendix “Major Financial Data” so the figures do not match.
NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.

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.

53

Organization of the Asset Management Company█ Organization Chart(As of June 26, 2013)

President andAkira Yamanouchi
Representative Director

Shareholders’Shareholders’ Meeting
Meeting
Auditors
Auditors

Vice President andYuji Shinotsuka
Representative Director (Head of Business Planning

Board
Board ofof Directors
Directors

Yoshiki Nishigaki
Vice President andRepresentative Director (Head of Private Fund Management

Compliance
Compliance Committee
Committee

Naoyuki Owa(Head of Administration

Director

Investment
Investment Committee
Committee

Compliance
Compliance Officer
Officer
Representative
Representative Director
Director
Internal
Internal Control
Control Office
OfficeInvestment
Investment Planning
Planning Department
Department

Auditor (non-executive

Office Management Team Marketing activities for the Asset Planning and formulation of

Residential Investment Team
policies concerning DRP’s(**)
investment
 Asset acquisition and disposal for
DRP’s investment managementbusiness

 Planning and formulation ofpolicies concerning the leasing,management and disposal of
DRP’s assets
Management Planning Team Budget and performance

Management Company’s
entrustment business Investor marketing for private
placement products
 Disclosure, IR and public
relations for the investment
corporations
 Operation of the investment
corporations’ general meeting ofunitholders
 Fund procurement (investment
units) for the investment
corporations

Masaru Shirataki

FinanceFinance Department
Department
Finance Team Fund procurement (investment

corporation bonds), ALM, surplus
management and fundmanagement for the Investment
Corporation
Accounting Team Financial results and accounting,cash allotment, accounting audit,
budget Accounting and finance of theAsset Manager
Management Teammanagement for the investment
corporations’ portfolios

 Management for the customers ofConstruction Management Team Issuance and underwriting of Formulation and implementationof construction planning of theinvestment corporations’ assets

No. (2)-83920, Governor of Tokyo

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

Office Investment Team

Residential Management Team

Building Lots and Buildings
Transaction Business
LicenseDirector (non-executive) Mikita Komatsu Planning and formulation ofpolicies concerning the leasing,management and disposal of
DOI’s assets

Daiwa Real Estate Asset Management Co. Ltd
6-2-1 Ginza, Chuo-ku, Tokyo
October 21, 2004
200 million yen
Akira Yamanouchi
7 (4 executive, 2 non-executive, 1 auditor)
47
No. 355 (Financial Instruments), Director, Kanto
Local Finance Bureau

Discretionary Agent for Real No. 34, Minister of Land, Infrastructure, Transport
Estate Transaction Approval and Tourism

MarketingMarketing Department
Department

policies concerning DOI’s (*)
investment
 Asset acquisition and disposal for
DOI’s investment managementbusiness

Company Name
Address
Established
Capitalization
Representative Director
Directors
Employees
Registered Financial
Instruments Firm

Director (non-executive) Toshihiro Matsui

Asset
Asset Management
Management Department
Department

 Planning and formulation of█ Company Overview

Board of Directors and Auditors

the “Private Fund Management
Dept.”

Association Membership

GeneralGeneral Administrative
Administrative
Department
Department
 Management of executive
officers’ meeting for theInvestment Corporation
 Operation of the general meetingof shareholders, the board of
directors and committees of theAsset Manager
 Revision/elimination ofregulations, management of
documents, information
management and systems
management
 Licensing, approval, registration
and reporting stipulated by laws
and regulations
 Litigation and handling ofcomplaints
 Human resources and labor
serviceBusiness
Business Planning
Planning
Department
Department
 Analysis of real estate market,
retail industry trends and the realestate investment trust market
 Analysis and management of theinvestment corporations’managerial issues
 Development and revision of theinvestment corporations’ annual
asset management plans andmedium-term asset managementplans Development and revision of theinvestment corporations’
Investment Guidelines
 Provision of new businesses General risk management of theInvestment Corporation

PrivatePrivate Fund
Fund Management
Management
Department
Department
Advisory Team Advisory concerning

managements for customers’
assetsOperational Team Formulation of investment policies

for discretionary funds

 Acquisition, disposal, leasing andmanagement of assets of
discretionary funds

DRP’s investment securities(*) DOI stands for Daiwa Office Investment Corporation.
(**) DRP stands for Daiwa Residential Private Investment Corporation.

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

54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 SB Investments

Daiwa Securities
SMBC Principal
Investments

Daiwa Real Estate
Asset Management

Daiwa PI Partners

Collaboration
Wealth Management

Sourcing Properties
Tenants Leasing
Finance

Fee

Whollyowned

Daiwa Institute of
Research Holdings
Daiwa Institute of
Research
DIR Business
Innovations
Daiwa Securities
Business Center Co. Ltd.

Daiwa Property Co., Ltd.

Branch Office

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.

55

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.

56

[ Memorandum ]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.

[ Memorandum ]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.

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.

59