This document was prepared based on statements made at the earnings announcement meeting held on July 17,
2012 and should not be construed as a solicitation for investment to the Investment Corporation.
Moreover, please understand that we shall not be held liable for omissions and errors of data and phrases used in thisdocument. Furthermore, opinions and forecasts indicated in this document are the Investment Corporation’s
judgments as of the time this document was prepared. No assurances or promises can be given regarding theaccuracy and certainty of this information, and it can be modified without prior notice.

Main Q&A in the 13th Fiscal Period Earnings Announcement
Date and Time: 15:30~16:30, July 17, 2012 (Tuesday)
Presenter: Akira Yamanouchi / President and Representative Director
Daiwa Real Estate Asset Management Co. Ltd.
*Questions are presented in order of sequence.

Q1. It appears that some REITs have gradually started to make big acquisition deals. Can
you tell me the status of your pipelines for acquiring large-scale properties and theprospects for any actual acquisitions?
(Answer)
We recognize that there have been a relatively large number of proposals given to theInvestment Corporation from the early stages. However, we have not won a bid to datebecause the future rents we anticipate for the properties are lower than the competition. Tobid properties, we have to offer higher prices based on more aggressive estimates of rents,
but we want to carefully examine and select properties before acquiring them, rather thanacquire assets in a hasty manner at a comparatively expensive price.

Q2. Discussions are under way concerning system reforms. Are there any suggestions orideas in the discussions you want to see applied?
(Answer)
As a REIT sponsored by a securities firm, we would be interested in working on andapplying new systematic arrangements related to capital policies as long as they benefit
unitholders. At present, the investment unit price of the Investment Corporation is
discounted significantly in comparison with the net asset value (NAV), and we as the asset
management company are “concerned about” the status of the price to NAV ratio. In thisregard, we would be interested in being able to purchase treasury stocks, or the Investment
Corporation’s investment units, including the effects of demonstrating our concerns.
Furthermore, we consider that reduction of capital without any refund to unitholders may be
a useful arrangement when we judge that selling a property even at a price lower than its
book value should help increase the Investment Corporation’s business value.
Regarding other aspects of the system reforms, we believe it would be advantageous ifsome systems that are applicable for foreign REITs but prohibited in Japan become
available for J-REITs, as well.

Q3. What changes have you perceived in the voices of your tenants before the sponsorchange?
(Answer)
Many tenants have welcomed the sponsor changing to Daiwa Securities, though there aresome who have not shown any interest in the sponsor change. We have the impression thatthe change has been accepted particularly well by large tenants.

Q4. The Investment Corporation has become a subsidiary of the Daiwa Securities Group,with the Group holding around 46% of its investment units issued and outstanding.
Maybe not immediately, but will this fact not generate any concern about theInvestment Corporation having difficulty in increasing capital or purchasing treasury
investment units, or will there not be any restrictions imposed by the sponsor?
(Answer)
There have been no restrictions imposed by the sponsor on the operations of the Investment
Corporation. Moreover, we believe that what is advantageous to other unitholders should
also be advantageous for the sponsor, who is also an owner of investment units. On theother hand, the current investment unit price is not at a level that allows issuance ofinvestment units through a public offering. So we will first acquire good properties so as toincrease cash dividends, and then conduct a public offering when the investment unit pricerises to a certain level. We don’t believe the sponsor will put a stop on such steps.
As for purchasing treasury investment units, we would carefully examine and consider thematter, to avoid any issues for unitholders as a result of violating conduit requirements.

Q5. Can you tell us how far your dividend per unit may increase as a result of terminationof free rent periods and property acquisitions?
(Answer)
The possible increase may now be lower by several hundred yen compared to half a year
ago, as there have been rent adjustments and lowering of rents for existing tenants.
However, a further dividend increase of around 500 yen per unit can be expected, if theimpact of free rent periods and phased rents are eliminated. Moreover, we believe it ispossible to increase the dividend by around 1,000 yen per unit if we successfully conduct
property acquisitions totaling 40 billion yen at appropriate interest rate costs and adequate
cap rates.

Q6. You assume some tenants will move out from Shinjuku Maynds Tower in the 15thfiscal period. Do you think it is possible to fill the vacant spaces by leasing them atthe same rent levels?
(Answer)
The rents for Shinjuku Maynds Tower are now almost the same as the market rents.
Moreover, we feel that the Shinjuku market has been improving on a daily basis since webegan leasing activities for the spaces, as we have received not only inquiries from possible
new tenants but also received attractive proposals from existing tenants for expanding
leased floors. Our budget for the 15th fiscal period does not assume any rent revenue
through May 2013 from spaces becoming vacant after the move-out of tenants. Thus, webelieve it possible to conduct leasing while focusing to some extent on the rent levels.

Q7. What is the rent gap situation? Please explain it separately for large-scale buildings
and other buildings.
(Answer)
The rent gap for large-scale buildings has been significantly reduced, standing at less than
10%. However, the figure still remains at slightly more than 10% for medium-sized buildings,
and advertised rents for new tenants are still decreasing at some buildings. However, we do
not expect that the rents will significantly decrease much further going forward.

Q8. In terms of property transactions, do you think the properties for sale from CMBS
have already peaked?
(Answer)
We think that property sales from CMBS are going to peak from now. While we have been
contacted regarding properties for sale from CMGS, not all of them are excellent in quality orother aspects, and the Investment Corporation cannot often invest these properties in alone.
At present, the more excellent the property, the more often they are refinanced. We feel thatthose who conduct refinancing have higher price perspectives than we do.

Q9. How are the pipelines of Daiwa Securities working in property acquisitions?
(Answer)
The Marketing Department members of the Asset Management Company visit operation
bodies of Daiwa Securities one by one and make proposals on leasing and property
brokerage for such operating companies, which are customers and receive property
information from them. However, as the number of properties of investment-grade quality for
REITs is limited, such information has not led to any specific results to date. Once someactual results are achieved, Daiwa Securities will understand that such information isbeneficial to its customers, and will serve as a strong pipeline, as Daiwa Securities has
broad networks and deep trust relationships with their customers.

Q10. What is the leasing status of Daiwa Shibadaimon?
(Answer)
The market in the area is quite difficult and we struggled with leasing not only for theproperty but also for Daiwa Onarimon. However, we successfully improved the occupancy
rate of the property to 78% as of the end of the 13th fiscal period. We anticipate it to operate
at almost full occupancy, judging from the applications received from prospective tenants.
However, we think it does not make sense to conclude lease contracts at low rents just to
increase the occupancy rate. Accordingly, we focus on increasing the number of private
viewings by would-be tenants and work to conclude contracts with them at competitive rents
that are competitive with market rents.

End