As of July 19, 2021

Daiwa Office Investment Corporation
Earnings Announcement for the 31st Fiscal Period(Fiscal Period Ended May 2021)

Securities Code: 8976

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

1

Contents

Section 3External Growth
Topics of the Fiscal Period Ended May 2021 (31st FP)

4

Impact of the COVID-19 Crisis on the Fiscal Period
Ended May 2021 (31st FP)

5

Section 1
Fiscal Period Ended May 2021 (31st Fiscal Period)
Performance Highlights and Forecasts

Progress in Efforts on Development Project(Nihonbashi-Bakurocho 1-Chome Development Project)

22

Property Transferred in the Fiscal Period Ending May 2021 andEfforts to Improve Portfolio Quality

23

Acquisition/Sale Policy and Status of Deliberation for
Property Acquisitions

24

Change in Asset Size and Acquisition Performance25

Highlights of the Fiscal Period Ended May 2021 (31st FP)

7

Highlights of Forecasts for the Fiscal Periods Ending November
2021 and May 2022 (32nd and 33rd FP)

8

Section 4

Change in Dividends

9

Financial Strategy

Section 2

Status of Interest-Bearing Liabilities

27

Unitholders as of the End of May 2021

30

Section 5

Internal Growth
Leasing Market of Tokyo Office Buildings

12

Analysis of Leasing Business

13

Portfolio Map: Increase and Decrease in Unit Contract Rent
Compared with Previous Fiscal Period

17Internal Growth Strategies

18

Occupancy Status of Properties Subject to Leasing Improvementin the Fiscal Period Ended May 2021 (31st FP)
19
Properties Subject to Leasing Improvement in the Fiscal PeriodEnding November 2021 (32nd FP)

20

Efforts on ESG
Environment

32

Social33

Social / Governance

34

Daiwa Securities Group’s Efforts to Achieve SDGs

35

Appendix

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

2Disclaimer

This material is solely for the purpose of providing information and is not intended to offer or solicit investment nor
function as a recommendation to purchase or sell any specific product. Please refer any inquiries on potential
purchases of the investment units of Daiwa Office Investment Corporation to a securities dealer.
This document is not intended to provide information to meet the requirements of Japan’s Financial Instruments
and Exchange Act or Act on Investment Trusts and Investment Corporations, or any associated cabinet orders,cabinet office ordinances, rules, or any rules governing companies listed on the Tokyo Stock Exchange, or any
other applicable rules, nor is it a disclosure document or statement of financial performance prepared inaccordance with the provisions 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
unknown risks and uncertainties. These forward-looking statements are not a guarantee of future performance ormanagement results of Daiwa Office Investment Corporation, and actual results may materially differ from any
explicit or implicit forecasts contained herein.
Although the information contained in this document is the best available at the time of publication, no assurances
can be given regarding the accuracy and certainty of this information. The content of this document may be
modified or withdrawn without prior notice.
Reproduction or use of the contents included in this document without
prior approval is prohibited.

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

3

Topics of the Fiscal Period Ended May 2021 (31st FP)
Matters relating to internal growth
Occupancy rate as of the end of the 31st FP was 97.5% (End of the 30th FP: 98.9%).
 Monthly rent increase/decrease rate due to contract renewal was +6.1%
 Monthly rent increase/decrease rate due to tenant replacement was -1.3%.
Monthly rent increase/decrease rate for office section alone was +0.5% (retail tenant section was -22.8%)
 Actual dividends for the 31st FP was 14,000 yen (+183 yen, +1.3% from previous period).
 Even in the 31st FP, there was no major impact of COVID-19 on performance, but future situation should be watched carefully.
Percentage of rent increase
upon contract renewal

14.8%

Rent increase/decrease rate
upon contract renewal+6.1 %For details,
please refer to page 15

Rent increase/decrease rate
upon tenant replacement-1.3%

For details,
please refer to page 16

Growth rate of dividend
resource (annualized)

0.6%

For details,
please refer to page 14

Matters relating to external growth
Transferred Daiwa Kyobashi (transfer price: 4,200 million yen, transfer date: December 23, 2020).
 The Nihonbashi-Bakurocho 1-Chome Development Project:
NOI on a normal basis enhanced with plan improvementFor details,
please refer to page 23

For details,
please refer to page 22

Financial information, matters relating to ESG
Share buy-backs: 2.78 billion yen (February 24 to May 14, 2021), with an effect on distributions of about +100 yen.
 Credit rating: Japan Credit Rating Agency, Ltd. (JCR): AA (stable)
Rating and Investment Information, Inc. (R&I): AA- (stable)
 LTV:
42.0% (end of May 2021)
 ESG:
Ratio of properties with green building certification: 60.3% (as of end of May 2021)
This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it
intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

4

Impact of the COVID-19 Crisis on the Fiscal Period
Ended May 2021 (31st FP)
Impact of the COVID-19 crisis on the fiscal period ended May 2021 (31st FP)
There was no major impact of COVID-19 on the performance in the 31st FP, but future situation should be watched carefully. “Provision for revenue decrease in existing
properties in consideration of the COVID-19 crisis (expenses for responding to the COVID-19 crisis)” expected at the beginning of the fiscal period was allocated for
granting free rent, paying leasing expenses ahead of schedule, repair cost, etc.
Fiscal Period Ended May 2021 (31st FP)
Forecast (As of January 2021)

Fiscal Period Ended May 2021 (31st FP)
ActualDifference

Comment

Provision for revenue decrease in existing properties inconsideration of the COVID-19 crisis-270 million yen-194 million yen+76 million yen

Occupancy rate before taking into consideration theimpact of the COVID-19 crisis

97.8%

-

-

• Part of the expenses for responding to the COVID19 crisis was used for granting free rent,
disinfection of common areas in buildings, etc. with
future leasing activities in mind.

95.7%(-2.1%)

97.5%
(-)

+1.8%
(-)

338 million yen

583 million yen+245 million yen(expenses for responding to the COVID-19 crisis)

Assumed occupancy rate on which performance
forecast is based/actual occupancy rate
(in consideration of the impact of the COVID-19 crisis)

Repair cost
Distributions Per Unit

13,900 yen(Gain on sales of real estate properties: 570 yen)

14,000 yen(Gain on sales of real estate properties: 635 yen)+100 yen• Unused expenses for responding to the COVID-19
crisis as well as the amount of other operating
revenue exceeding expectations was allocated forpaying leasing expenses ahead of schedule, repair
cost, etc.
• Effect of share buy-backs: about +100 yen

Response to tenants under the COVID-19 crisis
At the time of announcement on July 17, 2020

At the time of announcement on January 20, 2021

At the time of announcement on July 19, 2021

Number of sections for which postponement of rent
payment or rent reduction was requested

129 sections (14.4% of the entire sections)

161 sections (17.9% of the entire sections)

165 sections (19.0% of the entire sections)

Number of cases responded to the above requests

Deferred rent payment: 37 cases

Deferred rent payment:
Free rent granted:
Rent reduction:

Deferred rent payment:
Free rent granted:
Rent reduction:

Uncollected rent (including agreed uncollected rent)

270 million yen

36 cases
1 case2 cases

160 million yen

40 cases
3 cases
3 cases

15 million yen

Change in receipt of advance cancellation notice (only monthly rent for office and retail sections)(tsubo)The number of advance cancellation notices excluding the move-outs by major tenants was on a downward trend after peaking out in June 2020 but has since stayed at above 500 tsubo

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

5Section 1
Fiscal Period Ended May 2021 (31st Fiscal Period)
Performance Highlights and Forecasts

Highlights of the Fiscal Period Ended May 2021 (31st FP)
Results of the 31st Fiscal Period
30th Fiscal Period(ended Nov. 2020)

31st Fiscal Period(ended May 2021)

FactorDifference

14,849 million yen 15,054 million yen+204 million yen

Operating Expenses

7,133 million yen

6,917 million yen-216 million yen

Operation Income

7,715 million yen

8,137 million yen+421 million yen

606 million yen

592 million yen-14 million yen

7,124 million yen

7,549 million yen+425 million yen

13,817 yen

14,000 yen+183 yen

746,455 yen

752,347 yen+5,892 yen

Period End Occupancy Rate

98.9%

97.5%

-1.4%

Period Average Occupancy Rate (Note 2)

99.0%

97.7%

-1.3%

4.7%

4.7%

+0.0%

Operating Revenue

Non-Operating Expense
Net Income
Dividend per Unit
NAV per Unit

(Note 1)NOI Yield (annualized)(Note 3)(Note 1) Dividends per unit for the 30th FP is calculated by dividing the amount obtained by subtracting provision for reserve for
reduction entry (328 million yen) from unappropriated retained earnings by the total number of investment units
issued and outstanding.
(Note 2) NAV per unit = (Unitholders’ capital +Total appraisal value at the end of fiscal period − Total property book value at theend of fiscal period) / Number of investment units issued and outstanding.*(Note 3) Period average occupancy rate is calculated based on end-of-month occupancy during each fiscal period. (Excluding
Development sites)

IncreaseItem Gain on sale of property sold during FP (1 property)+1,026 million yen Other Operating Revenue+109 million yen

 Revenue (rents and common area fees) from 58 existing properties (Note 5) Utilities revenue-336 million yen-308 million yen-137 million yen

 Revenue (rents and common area fees) from property sold during FP (1 property)
 Revenue (rents and common area fees) from property sold in the previous FP-77 million yen-61 million yen

 Gain on sale of property sold in the previous FP (1 property)

Decrease(1 property)

Decrease Utilities charges-141 million yen Repair cost

-86 million yen

Dividends per unit for the 31st FP is calculated by dividing the amount obtained by subtracting provision for reserve for
reduction entry (716 million yen) from unappropriated retained earnings by the total number of investment units(Note 6)
issued and outstanding.
(Note 5) 58 existing properties are the 59 properties as of the end of the 31st FP less 1 property acquired in the 30th FP(Note 6) In the current period, the number of investment units issued and outstanding is as follows after the acquisition andretirement of treasury investment units.
491,877 units as of the end of the 30th FP⇒ 488,088 units as of the end of the 31st FP(Note 4) NOI Yield (annualized) is calculated based on book value. NOI is annualized based on properties owned at the end of the
fiscal period.

(Reference) Comparison of Forecasts with Results of 31st Fiscal Period
31st Fiscal Period
Forecast(announced Jan. 2021)

31st Fiscal Period(ended May 2021)

Difference

Operating Revenue

14,805 million yen 15,054 million yen+ 248 million yen

Operating Expense

6,621 million yen

6,917 million yen+ 295 million yen

Net Income

7,593 million yen

7,549 million yen▲ 43 million yen

Dividend per Unit

13,900 yen

14,000 yen+100 yenOccupancy Rate

95.7%

97.5%

+1.8%

FactorIncrease

Decrease

Increase
Decrease

Item Rent and common area fee revenue decrease from existing properties inconsideration of the COVID-19 crisis Other Operating Revenue

 Revenue (rents and common area fees) from 59 existing properties+270 million yen+115 million yen(Note 7)

 Utilities revenue

 Repair cost Outsourcing expenses
 Utilities charges-77 million yen-51 million yen+245 million yen+52 million yen-29 million yen(Note 7) 59 existing properties are the 59 properties owned as of the end of the 31th FP.

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

7

Highlights of Forecasts for the Fiscal Periods Ending November 2021 andMay 2022 (32nd and 33rd FP)
32nd Fiscal Period (Forecast)
32nd FP Forecast
Ending Nov. 2021
13,851

Operating Revenue

million yen

FactorDifference from31st FP-1,203

Increase

million yen

Decrease

6,543

million yen-373

million yen

Operation Income

7,308

million yen-829

million yen

570

million yen-21

million yen

6,735

million yen-813

million yen

Increase

14,000 yen-

Decrease

96.8%

-0.7%

96.6%

-1.1%

4.7%

+0.0%-Net Income
Dividend per Unit
Period End Occupancy Rate
Period Average Occupancy Rate

(Note 1)NOI Yield (annualized) (Note 2)

33rd Fiscal Period (Forecast)
33rd FP Forecast
Ending May 2022

Difference from32nd FP

million yen-154

million yen

Operating Expense

6,388

million yen-155

million yen

Non-Operating Expense
Net Income
Dividend per Unit
Period End Occupancy Rate
Period Average Occupancy RateNOI Yield (annualized) (Note 2)(Note 1)

7,308

million yen+0million yen

570

million yen+0million yen

6,736

million yen+0million yen-1,026 million yen

 Revenue (rents and common area fees) from property sold in the previous FP-142 million yen-109 million yen-10 million yen Utilities charges+127 million yen Repair cost

-414 million yen-39 million yen Other Operating Revenue(1 property) Asset management fee

Dividends per unit for the 32nd FP is calculated by dividing the amount obtained by adding reversal of reserve for
reduction entry (97 million yen) to unappropriated retained earnings by the total number of investment units issued andoutstanding. Dividends per unit before the reversal is 13,800 yen. Moreover, reversal of reserve for reduction entry may
change depending on the operational status.

Decrease

13,697+91 million yen

 Revenue (rents and common area fees) from 59 existing properties (Note 5)

FactorOperating Revenue

Operation Income

 Utilities revenue
 Gain on sale of property sold in the previous FP (1 property)

Operating Expense

Non-Operating Expense

Item

Decrease

Item Utilities revenue

 Revenue (rents and common area fees) from 59 existing properties (Note 3)
 Other Operating Revenue-79 million yen-45 million yen-25 million yen Repair cost

-60 million yen

 Outsourcing expenses
 Utilities charges-43 million yen-33 million yen

Dividends per unit for the 33nd FP is calculated by dividing the amount obtained by adding reversal of reserve for
reduction entry (97 million yen) to unappropriated retained earnings by the total number of investment units issued andoutstanding. Dividends per unit before the reversal is 13,800 yen. Moreover, reversal of reserve for reduction entry may
change depending on the operational status.

14,000 yen

-

97.1%

+0.3%

(Note 1) Expected period average occupancy rate is calculated based on end-of-month occupancy during each fiscal period.

96.8%

+0.2%

(Note 2) Expected NOI Yield (annualized) is calculated by taking into account the properties based on the book value for the 31stFP. (Excluding Development sites)

4.7%+0.0%-(Note 3) 59 existing properties are the 59 properties owned as of the end of the 31th FP.

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

8

Change in Dividends
Change in Dividends per Unit (forecast/actual)

Achieved dividend increase for 21 consecutive periods

(yen)

(yen)

13,700 13,900

14,000

4,850

5,500

6,250

7,200

7,540

7,820

8,700

9,350

9,850

10,55010,70010,77011,00011,85012,300 13,000

13,400

4,850

5,350

5,500

6,550

7,300

7,570

8,328

9,000

9,750

9,900

10,56010,71010,80011,40012,00013,200 13,700 13,700 13,900 14,000

12,400This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it
intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

9

MEMO

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

10Section 2
Internal Growth

Leasing Market of Tokyo Office Buildings
Trend of Office Rent and Vacancy Rate of
5 Central Wards of Tokyo

Leasing Market of Tokyo Office Buildings(Yen/Tsubo)

Rent and Vacancy Rate of Large-Scale Office Buildings (Note 1)of 5 Central Wards of Tokyo

Rent(Yen/Tsubo)

Feb. 2008(Rent)

21,025 yen
Jun. 2020

6.12%(Vacancy rate)

Dec. 2020
Jun. 2021
Jun. 2019

Rental Market Clock(conceptual chart)

Jun. 2018

Dec. 2017

Jun. 2017

Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan.
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Jun. 2010

Data: Miki Shoji

Jan. 2004

Office Building Market Medium-Term Forecast
Dec. 2011

Predicted figures(Tsubo)Jul. 2012(Note 1)

Rent
(Yen/Tsubo)

Average Rent and Vacancy Rate of Entire Office Buildings (Note 2)of 5 Central Wards of Tokyo
Jun. 2020

Jun. 2018

New supply (Grade A, etc.)

New supply (Other)

Floor area of new demands

Vacancy rate

2000
2002
2004
2006
2008
2010
2012
2014
2016
2022
2024
2018
2020
2001
2003
2005
2007
2009
2011
2013
2015
2017
2019
2021
2023 2025
Data: CBRE “Office market medium term forecast 2021-2025

Dec. 2020

Jun. 2021

Sep. 2008
Sep. 2007
Dec. 2017

Jun. 2016

Jan. 2004

Jul. 2012
Vacancy rate

Data: Sanko Estate, compiled by Daiwa Real Estate Asset Management(Note 1) Large-scale office buildings: A floor area of 200 tsubos or more.

(Note 1) Predicted figures as of June 2021
(Note 2) No information on the breakdown of new supply is available in or before 2004 (only the total amount is available).

(Note 2) Entire office buildings: Ranging from large-scale buildings to small-scale buildings (less than 20 tsubos).

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

12Analysis of Leasing Business (1)― Change in Occupancy Rate and Ratio of Area Attributable to New Leases/Cancellations as a
Percentage of Total Leasable Area ―Occupancy Rate as of the End of Each Period
(%)

99.0

100.0

98.2
98.7
97.7
97.3
98.3
97.7
97.2

96.4

96.4

96.3
95.0

95.0

99.1

98.9

Change in New Leases and Cancellations and Their Reasons (Note)(Cases)98.9
97.5 96.8
97.1
99.5

97.1
95.7 95.8

Occupancy Rate (Actual)

90.0

Expected Occupancy Rate

33rd FP

32nd FP

31st FP

30th FP

29th FP

28th FP

27th FP

26th FP

25th FP

24th FP

23rd FP

21st FP

22nd FP

20th FP

19th FP

18th FP

17th FP

16th FP

15th FP

14th FP

Expected Occupancy Rate (as of disclosure in Jan. 2021)
85.0

14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st 32nd 33rd
FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP

Ratio of Area Attributable to New Leases/Cancellations
as a Percentage of Total Leasable Area (Note)

14th
FP

14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st 32nd 33rd
FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP(Note) Change in ratio of area attributable new leases/cancellations as a percentage of total leasable area.

15th
FP

16th
FP

17th
FP

18th
FP

19th
FP

20th
FP

21st
FP

22nd
FP

23rd
FP

24th
FP

25th
FP

26th
FP

27th
FP

28th
FP

29th
FP

30th
FP

31st
FP

31st Period

Cost
Reduction

Space
Expansion

Consolidation
Space

Space
Reduction

BetterLocation

New Leases

2

22

0

4

0

7

35

Cancellations

11

3

2

15

0

4

35

Previous numberof leases
Previous numberof leases

1118

Previous numberof leases

Other

Total

12

(Note) Excluding new leases and cancellations by residence and warehouse tenants.

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

13

Analysis of Leasing Business (2)― Improvement in Basic Strength ― Although the monthly rent with the new tenant moving in turned to decrease, the net monthly rent became

positive because the monthly rent with the contract renewal increased.
 Increase in rent revenue due to improved basic strength leads almost directly to an increase in dividend resource
Monthly Rent Increase Due to Contract Renewal/Tenant Replacement(Thousand Yen/Month)

37,56525,5289,020

28,22521,804 21,309

27,02032,295
21,84920,72014,376 14,246 12,747
3,381

Increase Rate of Dividend Resource Due to Improved Basic Strength(Note 1) Obtained by dividing the amount of rent increase (increased amount of monthly rent x 6 months) due to the improved basic strength in each fiscal period by rent revenue (rents and common area fees) in the previous fiscal period.
(Note 2) Obtained by dividing the amount of rent increase (increased amount of monthly rent x 6 months) due to the improved basic strength in each fiscal period by net income in the previous fiscal period.

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

14Analysis of Leasing Business (3)― Changes in Rent Increase/Decrease Rate of Contract Renewal Tenants ―31th Fiscal Period Contract Renewal Tenants*Ratio of area for which contracts were renewed in the 31st FP (through May 2021) to the total leased area
(359,749.01 m²) as of end of November 2020.

Cancellation from Non Contract Renewal Area,
4.4%
Contract Renewal
Area, 23.4%

Change in Rent Increase/Decrease Rate of Contract Renewal Tenants(sections)
Realized upward rent revisions for
15 consecutive periods(%)

Non Contract Renewal Area (Excluding cancellation),
72.2%

*2

*1

(Note) The above indicates rent increase/decrease rate to pre-renewal rents for lease contracts which reached renewed
agreements during each FP.
Rent increase/decrease rate is calculated based on net amount for increased/decreased rents.

Rent Increase Rate Upon Contract Renewal*1 The decrease in the 25th FP was due to some tenants’ switching from sublease to master lease agreements.
*2 The decrease in the 27th FP was due to an agreement on decrease reached by the previous owner.

(Breakdown of upward revision magnitude for monthly rents in the 31th FP) (Note)
15% or more

4%

Ratio of Contract Renewal Areas (based on leased area)
(%)
30.0

Forecasts

23.4

20.0

21.8
15.4

 Daiwa Ogikubo Tower
 CONCURRED Yokohama
 Daiwa Sasazuka Tower

6.1 %

etc.

(Previous FP: 10.6%)

10%

32nd FP

 Shinjuku Maynds Tower

Increase rateof monthly rent

2% or more but
less than 5%

31st FP Daiwa Misakicho

11%

28%

16.8

10.0
0.0

10% or more but
less than 15%

2% or less24.2

Properties with rent increase Daiwa Ginza Annex

33rd FP

34th FP

35th FP(Note) Ratio of area scheduled for contract renewal in each period to the total leased area (351,500.46 m2)
as of end of May 2021.

5% or more but
less than 10%
48%

Increased amount of monthly rent
4,369 thousand yen/month(Note) Percentage figures are based on total monthly rent.

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

15

Analysis of Leasing Business (4)― Status of Contract Rent ―Total Monthly Rent and Increase/Decrease
Rate Due to Tenant Replacement

Average Monthly Contract Rent and Unit Rent Index(Yen/Tsubo)
90.90(Total Monthly Rent,
Thousand Yen)

89.86

91.09

27.9%
23.1%

20,121

23.0%

20,47020,30716.0%

98,24679,80478,60963,923

16.7%

66,10456,96751,02739,89375,251
76,23946,55739,893(Note 1) Average contract rent is the average of monthly contract rent from tenants at the end of each fiscal period.
(Note 2) Unit rent index is the earning rates of unit rent of individual properties indexed with the figure at the end of the 7th FP as 100.

Increase/Decrease in Monthly Contract Rent (Note)
Compared with the End of the Previous Fiscal Period▲1.3 %(Million Yen)

(Note) Comparison of monthly rent due totenant replacement for the sameleasing area.
Ratio is based on total monthly rent.

Properties with Rent Increase

Increase by
New Leases
Increase byRent Revisions

Monthly rent increase / decrease rate
for office sections alone was ＋0.5％（retail tenant section was -22.8%)

Decrease by
Tenants’ Cancellations

Properties with Rent Decrease Daiwa Ginza

 Daiwa Ginza Annex

 Daiwa Shibaura

 Daiwa Jingumae

 Daiwa Shinagawa North E SPACE TOWER

 Daiwa Sasazuka Tower, etc.

 Daiwa Aoyama, etc.

Decreased amount of monthly rent
988 thousand yen/month

End of 30th FP
Monthly Contract Rent

Decrease by
Property Sale

End of 31st FP
Monthly Contract Rent

(Note) Monthly Contact Rent is a total of final rent from contracting tenants at the end of the fiscal period.
Monthly contract rent for Shinjuku Maynds Tower has been adjusted to 3/7 and monthly contract rent for CONCURRED
Yokohama has been adjusted to 75/100.
Monthly contract rent for Nihonbashi Central Square has been adjusted to 60.99% based on agreements, etc. among
the compartmentalized owners.

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

16

Portfolio Map: Increase and Decrease in Unit Contract Rent Compared With
Previous Fiscal Period
Greater Tokyo

Five Central Wards of Tokyo
Comparison with Previous Fiscal Period
Increase and Decrease of Unit Contract Rent (Note 1)

Daiwa Higashi-Ikebukuro

Unit rent increase: 19 contracts

ToshimaWard

The number in ● indicates increase for the consecutive period
2 indicates increase for the second consecutive period)(Ex: ●

Daiwa Ogikubo Tower
Daiwa Ogikubo 7

Daiwa Meguro Square

Unit rent maintained: 32 contracts

Shinjuku Ward

Daiwa Shinjuku West
Daiwa Nishi-Shinjuku
2

shinyon curumu

Daiwa Misakicho
Daiwa Jinbocho 3-chome

Daiwa Sarugakucho

Daiwa Kandasudacho
Daiwa Kanda East

Nihonbashi-Bakurocho
1-Chome Development Site

ChiyodaWardMikuracho
Daiwa Kanda

Daiwa Higashi-Nihonbashi
Daiwa Kodenmacho
Daiwa Nihonbashi Horidomecho
2 Nihonbashi Central Square
Shibuya Ward
Chuo WardKirin Nihonbashi Building Koto Ward
Daiwa Kayabacho Building
4 Daiwa River Gate
Daiwa Jingumae Daiwa Akasaka
2 Daiwa Sasazuka Tower
Daiwa Hatchobori ekimae
Daiwa Sasazuka
Daiwa Hatchobori ekimae West
Daiwa Ginza Annex
Daiwa Aoyama
Daiwa Ginza 16
Daiwa Tsukijiekimae
Daiwa Minami Aoyama
Daiwa Tsukiji
Daiwa
Daiwa SHIBUYA EDGE
Shibuya Miyamasuzaka
12
Daiwa Nishi-Shimbashi
Daiwa Tsukishima
E SPACE TOWER
Daiwa Harumi
Shinsen Place
Daiwa A Hamamatsucho
Daiwa Shibuya Square
Daiwa Azabudai
Daiwa Shibadaimon
Daiwa Daikanyama
Shinjuku Maynds Tower 11

Daiwa Nihonbashi
Hongokucho

Daiwa Kojimachi
4-chomeDaiwa Ebisu 4-chome

Tokyo

Minato Ward

Daiwa Mita 2-Chome
Daiwa Azabu Terrace

8

Daiwa
Shinagawa North

Daiwa
Shinagawa Gotenyama

Unit rent decrease: 7 contract

LAQUAS
Higashi Shinjuku

Daiwa Nakano-Sakaue

CONCURRED Yokohama 6

Daiwa Kamiooka

Daiwa Shibaura

Daiwa Kitahama

Major Regional Cities

Shinagawa
Ward(Note 1) Unit contract rent of each property is the average unit rent of the entire office section of its standard floor (2F or above) (includes sections other thanthose targeted for replacement and renewal).

As of May 31, 2021

(Note 2) Development sites are plotted with ●.

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

17Internal Growth Strategy
Continuous Internal Growth and Maximization of Asset Value
Through “Bonji-Tettei”

DOI Investment Management Department
DOI Management Team (9 members)
Aims at maximizing asset value by means of specialist groups headed by personnel assigned to each property
in the Investment Corporation’s portfolio.

(15 years, 0 months)(19 years, 3 months)(7 years, 5 months)(15 years, 3 months)(15 years, 1 month) Accurate understanding of the leasing market

Grasp ofpresent
situation

 Grasping of needs and trends of occupying

tenants through regular visits In-depth understanding of property features(7 years, 3 months)

 Information gathering from brokers

Activities forinternal growth Implementing tenant satisfaction surveys

and proposing improvement measures Periodical property examination(15 years, 5 months)(2 years, 8 months)(4 years, 9 months)

Construction Management Team (9 members)
Engineering: Formulation and implementation of construction planning for assets.

 Maintenance of a stable occupancy rate bypromptly filling vacancies

Realization ofinternal growth Realization of stable management throughsolid relationship with tenants
 Securement of revenue based on wellplanned medium- to long-term management(15 years, 0 months)(20 years, 4 month)(15 years, 4 months)

Aims to maximize asset value(14 years, 8 months)(6 years, months)(6 years, 1 months)(8 years, 2 months)(5 years, 10 months)(0 years, 8 months)(Note) The number of years stated in the parenthesis is the number of years engaged in the relevant work (as of January 20, 2021)
and does not indicate the number of years employed at the asset management company.

Investment Planning Team (6 members)
Middle office work: Budget and performance management for the portfolio

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

18

Occupancy Status of Properties Subject to Leasing Improvement in
the Fiscal Period ended May 2021 (31th FP)
Daiwa River Gate

Daiwa Jingumae(Acquisition Price: 28,000 million yen)
 The property is approximately a 3-

 The property is approximately a 7-

minute walk from Suitengumae
Station on the Tokyo Metro
Hanzomon Line and approximately a
10-minute walk from Ningyocho
Station on the Tokyo Metro Hibiya
Line and Toei Subway Asakusa Line.

minute walk from Gaienmae Stationon the Tokyo Metro Ginza Line.

B2/20F
Office, apartment, parking
53,790.26 m²
February 1994（％）

 The property is approximately an 11-

minute walk from Shinagawa Stationon the JR lines and approximately a5-minute walk from Kita-Shinagawa
Station on the Keikyu Line.

with high visibility facing Gaiennishidori Street and has a low-riseexternal appearance with highdesignability. The rental rooms arerectangular-shaped floors with nopillars.

high-level facilities such as adopting
a spot network power-receiving
system with highly reliable electricity
supply, and is a large building
representing the surrounding area.

Nihonbashi Hakozakicho, Chuo-ku, Tokyo
7,088.66 m²
S/SRC/RC(Acquisition Price: 7,710 million yen)

 The property is an office building The property has comprehensively

Location
Land Area
Structure
Number of
FloorsUse
Total Floor
Area
Construction
Date

Daiwa Shinagawa North(Acquisition Price: 2,800 million yen)

Location
Land Area
Structure
Number of
FloorsUse
Total Floor
Area
Construction
Date
（％）

Jingumae, Shibuya-ku, Tokyo
887.69 m²
RC
B1/4F
Office2,673.88 m²
December 1997
Occupancy Rate
Expected occupancy rate as of Jan. 2021

 The property is located in an area

near a group of skyscrapers
including
Shinagawa
Grand
Commons and Shinagawa Intercity
at the east exit of JR Shinagawa
Station and has a wide space with atypical floor plate of more than 250
tsubos.

Location
Land Area
Structure
Number of
FloorsUse
Total Floor
Area
Construction
Date

Kita-Shinagawa, Shinagawa-ku, Tokyo
2,345.20 m²
SRC
B1/11F
Office, parking, retail
10,200.29 m²
July 1991（％）

Occupancy Rate
Expected occupancy rate as of Jan. 2021

 Access to central Tokyo is excellent. While it is a large building with a comprehensively highstandard of facilities, it appeals to the market with its relatively low-price sense comparedwith buildings in central areas, and it has received multiple applications.

 The occupancy rate as of the end of May 2021 was 83.4%. By the end of July, it is expected

to arrive at 84.5% due to new contracts. It continues to be a property subject to leasing
improvement in the 32nd period given the occupancy rate decrease expected due to thecoming cancellation of other sections.

 Promote the fact that it is a section able to work with various floor space needs such as

consolidation, expansion, reduction, etc. as the vacant space comprises connected floors.
Multiple applications were received, and one tenant was contracted.

 The occupancy rate as of the end of May 2021 was 100%.

 Successfully incorporated relocation needs inside and outside the Shinagawa area by widely

demonstrating the relative inexpensiveness in comparison with the central Tokyo area to themarket.
Refilling of vacancies is smoothly in progress.

 The occupancy rate as of the end of May 2021 was 95.2%

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

19

Properties Subject to Leasing Improvementin the Fiscal Period Ending November 2021 (32nd FP)
Daiwa River Gate

Shinjuku Maynds Tower(Acquisition Price: 28,000 million yen)

Daiwa Akasaka(Acquisition Price: 66,900 million yen)(Acquisition Price: 9,200 million yen)

 The property is approximately a 3-

 The property is a high-rise office The property is located a 2-minute

minute walk from Suitengumae
Station on the Tokyo Metro
Hanzomon Line and approximately a
10-minute walk from Ningyocho
Station on the Tokyo Metro Hibiya
Line and Toei Subway Asakusa Line.

building located an approximately 5minute walk from Shinjuku Station.

walk
from
Akasaka
Station.
Akasaka-mitsuke Station on theTokyo Metro Marunouchi and Ginzalines and Tameike-sanno Station on
the Tokyo Metro Ginza andNamboku lines are also available.

 The property is connected to JR

Shinjuku Station’s Southern Terrace
Exit by a pedestrian deck and is also
directly connected to Toei Oedo
Line’s Shinjuku Station, making
transportation
exceptionallyconvenient.

 The property has comprehensively

high-level facilities such as adopting
a spot network power-receiving
system with highly reliable electricity
supply, and is a large building
representing the surrounding area.

 There are television stations, major

advertising agencies and IT/mediarelated companies nearby, so movein needs of various companies
centered on the field of media are
expected.

Location

Nihonbashi Hakozakicho, Chuo-ku, Tokyo

Location

Yoyogi, Shibuya-ku, Tokyo

Location

Akasaka,Minato-ku, Tokyo

Land Area

7,088.66 m²

Land Area

11,500.48m²

Land Area

2,521.95 m²

Structure

S/SRC/RC

Structure

S/SRC

Structure

SRC

Number of
Floors

B2/20F

Number of
FloorsB3/34F

Number of
Floors

B2/7F

Use

Office, apartment, parking

Use

Office, retail

Use

Office, retail, Parking

Total Floor
Area

53,790.26 m²

Total Floor
Area

97,978.74m²

Total Floor
Area

13,597.97 m²

Occupancy
Rate

83.4% (as of May 31, 2021)⇒ 81.2%(expected as of the end of Nov. 2021)

Occupancy
Rate

99.6% (as of May 31, 2021)⇒ 98.2% (expected as of the end of Nov. 2021)⇒ 87.4% (expected as of the end of May 2022)

Occupancy
Rate

96.7% (as of May 31, 2021)⇒ 70.9%(expected as of the end of Nov. 2021)

Construction
Date

February 1994

Construction
Date

September 1995

Construction
Date

September 1990

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

20Section 3External GrowthProgress in Efforts on Development Project(Nihonbashi-Bakurocho 1-Chome Development Project)
Key Point of the Project

Nihonbashi-Bakurocho 1-Chome Development Project
Rendering This is the first development project of the Investment Corporation. In a context wherecompetition in the real estate transaction market remains fierce, the project will develop a new
office property upon acquiring a development site in central Tokyo.
 The Asset Manager has created an in-house real estate development team with expertise.
 Outsource

project management to THE SANKEI BUILDING CO., LTD.: reduce risks
concerning development (excessive development costs, schedule delays, and the quality ofthe property developed, etc.)

 Concluded

a construction contract and a design supervision contract with JDC
Corporation: reduce completion risks

 Aim to lease up the building as soon as possible after construction is completed byleveraging the past leasing experience and tenant networks of the Asset Manager.
 Assume NOI yield of 4.2% in normal operation period after completion.

Aiming to improve NOI yield by revising the plan
<Before the plan change><After the plan change>

Expected Acquisition Priceafter Building Completion

5,607 million yen (scheduled)

5,736 million yen (scheduled)

Main Fees Related toConstruction

1,832 million yen (scheduled)

1,961 million yen (scheduled)

Gross Floor Area after Building
Completion

4,842.30 m²

4,894.14 m²

NOI Yield Assumed for Normal
Operation Period after Completion

4.1%

4.2%

Property Details
Acquisition Date of Land
Location/Distance from Station
Price of Land3,775 million yen

Land Area

620.93 m²

Structure after Building
Completion
Completion Date

November 13, 2020
Nihombashi-Bakurocho, Chuo-ku, Tokyo
1-minute walk from Bakurocho Station on the JR Sobu Line

Steel framed structure flat roof,
10 stories above ground (scheduled)
November 2022 (scheduled)

Schedule(Note) The above includes figures, etc. based on assumption or schedule as of present, and actual results may vary.

<Main changes in the plan>

Fiscal Period Ended Nov. 2020
(30th FP)

Contract concluded on
Oct. 2020, and payment
on Nov. 2020

Conclusion of Sale and Purchase
Agreement/ Payment, Project Management
and Design/ Construction Contract

Fiscal Period Ending Nov. 2021
(32nd FP)

Jun. 2021

Construction Start of the New Building

Fiscal Period Ending Nov. 2022
(34th FP)

Nov. 2022 (scheduled)Completion of New Building<Photo of site upon construction start>(end of Jun. 2021)

 Increase of exclusive area through expansion of the shop area

on 1F and office area on 2F and above.
 Upgrade of exterior design.
 Establishing outdoor terrace. Through this, increase of rent of

10F office is expected.

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

22

Property Transferred in the Fiscal Period Ending May 2021 and Efforts to
Improve Portfolio Quality[Transfer] Daiwa Kyobashi
Date of Transfer

December 23, 2020

Location/Distance from Station

Hatchobori, Chuo-ku, Tokyo/2-minute walk from
Hatchobori Station

Transfer Price/Book Value

4,200 million yen

Appraisal Value
Gain on Sale

(Note 1) Gain on Sale is actual results for the 31th FP.

Land Area/Total Floor Area

596.19m² / 4,069.15m²

Structure/Floor

Steel-framed reinforced concrete structure with flat roof,
8 stories above ground and 1 below

3,450 million yen (29th FP）

Construction Date

October 1974 (Note 1) (46 years, as of the date of transfer)

Approx. 1,026 million yen

NOI Yield Based on Transfer Price

3.8％ (Note 2)(Note 2) NOI yield is calculated by dividing the actual annualized NOI for
the 30th FP by the transfer price.

Due to Daiwa Shimbashi 510 and Daiwa Kyobashi being sold, only Daiwa Ginza and Daiwa Ginza Annex comply with outdated standards forearthquake resistance.

Efforts to improve the portfolio quality over the last seven fiscal periods
25th FP

26th FP

Acquisition

Fiscal period ended May 2018

CONCURRED
Yokohama

Daiwa
Kanda East

Fiscal period ended Nov. 2018

Daiwa
Kandasudacho

Daiwa

Shinagawa Gotenyama

Daiwa
Sasazuka Tower

27th FP

Fiscal period ended May 2019

Daiwa
Sasazuka

Transfer

Replacement

CorporateactionShinjuku
Maynds Tower* Sale of a
portion ofco-ownershipinterest

Daiwa
Meieki

Daiwa
Harumi

Daiwa
Mita 2-Chome

Replacement

Exchangetransaction

Daiwa
OnarimonUse of gainon sale28th FP

Fiscal period ended Nov. 2019

Daiwa
Osaki 3-Chome

29th FP

Fiscal period ended May 2020

Daiwa
Nakano-Sakaue

Nihonbashi
Central Square
Replacement

Daiwa
Jinbocho30th FP

Fiscal period ended Nov. 2020

NihonbashiBakurocho
1-ChomeDevelopment
Site

31st FP

Fiscal period ending May 2021

Sold an oldproperty

Replacement

Daiwa
KyobashiDaiwa Shimbashi 510

Use of gainon saleBuy-back of
own investment units
Repayment ofborrowings

Buy-back of
own investment units
Repayment of borrowings

Policy for utilizing internal reserves<Amount of internal reserves>
End of 30th FP:

Approx. 1.1 billion yen+Provision of reserve for reduction entry in the 31st FP:

Approx. 0.7 billion yen

End of 31st FP:

Approx. 1.8 billion yen

The amount of internal reserves at the end of the 31st FP is approximately 1.8 billion yen(equivalent to distribution per unit of 3,690 yen)Plans to reverse internal reserves to cover the temporary revenue decrease, etc. (those that are expected torecover in the near future) due to property replacements, etc.

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

23

Acquisition/Sale Policy and Status of Deliberation for Property Acquisitions
Acquisition/Sale Policy

Distribution Chart of Portfolio PropertiesPlaces priority in the five central wards of Tokyo and equivalent area.



Thoroughly select properties in view of actual demand toward location(distance to station, station power, crowd attraction, surrounding environment),
building specs, etc.

Acquire properties that improve growth potential and profitability of existing
portfolio.



Invest in buildings with a building age of less than 25 years.

Consider replacement when necessary incompetitiveness, profitability, etc. of properties.

considerationoffuture

Secure a sourcing route across a wide range by capitalizing on status as anindependent REIT and establishing strong relations with business companies,
financial institutions, real estate brokers, etc.



Target optimum expansion of portfolio based on in-depth data analysis upon
careful selection from among the wide-ranging information on properties thatcomes from diverse sources.
Number of Properties Reviewed for Acquisition

400(Note)

Number of properties reviewed(left axis)
Number of properties reviewed in detail (right axis)

344
288

300

320

329

360
326

276

348

334

281

* The distance from station is the distance from the nearest station

50

Daiwa Kyobashi

40
35
30

120

25

100

20

80

●Assets sold in 31st FPs●Properties acquired after the sponsor change●Properties acquired before the sponsor change

55

45

Sourcing Strategy Capitalizing on Status as Non-Real
Estate Sponsored REIT

500

Building Age (Year)
60

15

60
10

200

40

29
100

0

18

19

20

14

9

13

17
6

8

22nd FP 23rd FP 24th FP 25th FP 26th FP 27th FP 28th FP 29th FP 30th FP 31st FP(Note) Number of gross proposals.

20

5
Nihonbashi-Bakurocho 1-Chome Development Site (Note)

0

0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0
9.0
10.0 11.0
Distance from station (minutes)(Note) Building Age of Nihonbashi-Bakurocho 1-Chome Development Site is indicated as 0 year.

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

24

Change in Asset Size and Acquisition Performance
Aim to Achieve Medium-Term Goal Asset Size of 500 Billion Yen(billion yen)
550

80%

Total Acquisition Price

LTV (Based on Total Asset)

500
445.7

458.3

467.7

469.3

500.0
469.3

459.7

460.0

461.0

463.1

464.8

461.4

70%

439.4

450
413.2

352.7
311.3

313.2

314.9
40.6

287.3
34.2

34.0

44.3
40.2

41.7

42.3

43.3

42.2

42.3

40.5

41.5

42.1

42.1

50%
42.0

41.8

42.0

34.4

40%

28.9

Acquisition Property

Acquisition Property• Daiwa Ogikubo Tower• Daiwa Nihonbashi Hongokucho
Acquisition Property• E SPACE TOWER

Acquisition Property•100
Daiwa Kayabacho Building• Daiwa Jinbocho 3-chome

Acquisition Property

Acquisition Property• Daiwa Kanda Mikuracho

Acquisition Property• Daiwa Azabu Terrace• Daiwa Kitahama• Daiwa Osaki 3-chome

13th
FP

14th
FP

Acquisition Property• Daiwa Nakano-Sakaue• Nihombashi Central Square• Daiwa Ebisu 4-chome• LAQUAS Higashi Shinjuku• Daiwa Aoyama• Shinsen Place• Daiwa Shibuya Square• Daiwa Meguro Square

Acquisition Property

12th
FP

Acquisition Property

Acquisition Property

Acquisition Property

15th
FP

16th
FP

17th
FP

18th
FP

19th
FP

Acquisition Property• Nihonbashi-Bakurocho
1-Chome Development Site

• CONCURRED Yokohama• Daiwa Kanda East

• Daiwa Shibuya Dogenzaka• Daiwa Akasaka• Daiwa Shibuya Miyamasuzaka• shinyon curumu• Daiwa Meieki• Daiwa Kamiooka

50

11th
FP

Acquisition Property• Daiwa Kandasudacho• Daiwa Shinagawa Gotenyama• Daiwa Sasazuka Tower

Acquisition Property• Daiwa River Gate
• Daiwa Hatchobori ekimae• Daiwa Hatchobori ekimae West

200

0

43.0

37.5

300

150

364.0

332.0

350

250

60%

387.5

400

30%

20%

Acquisition Property• Daiwa Mita 2-Chome

Acquisition Property• Daiwa Higashi-Nihonbashi• Daiwa Daikanyama• Daiwa Shinjuku West
• Daiwa Ogikubo

10%

Acquisition Property• Daiwa Sasazuka• Daiwa Harumi

Acquisition Property• Daiwa Nishi-Shinjuku• Kirin Nihonbashi Building

20th
FP

21st
FP

22nd
FP

23rd
FP

24th
FP

25th
FP

26th
FP

27th
FP

28th
FP

29th
FP

30th
FP

31st
FP

0%

Medium-Term
Goal

25

Section 4
Financial Strategy

Status of Interest-Bearing Liabilities (1)Loan to Value Trend

Status of Interest-Bearing Liabilities(End of 31th Fiscal Period)(Billion Yen)

240

60.0%

Interest-bearing liabilities (left axis)

Ratio of Fixed-Interest and FloatingInterest Borrowings

Ratio ofLong and Short-Term Borrowings

LTV (based on total assets (Note) ) (right axis)
21.0%

11.8%

50.0%

200
Medium- to long-term,
upper-limit target LTV range

42.0%

88.2%

79.0%

40.0%

160

30.0%

120

Fixed-interest borrowings

Long-term loans payable, etc.

Floating-interest borrowings

Short-term loans payable andcurrent portion of long-termloans payable

Status of Rating
20.0%

80

Japan Credit Rating Agency, Ltd. (JCR)

Long-term issuer rating
Rating outlook: Stable(Assigned on February 22, 2021)
10.0%

40

Rating and Investment Information, Inc. (R&I)

Issuer rating

0

15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st
FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP

0.0%

Rating outlook: Stable(Assigned on September 16, 2020)(Note) LTV (based on total assets) = Total interest-bearing liabilities / Total assets

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

27

Status of Interest-Bearing Liabilities (2)Repayment Schedule

Change in Procured Years of Interest-Bearing Liabilities
End of period maturity (left axis)(Million Yen)

(Year)

5.5

20,000 Investment Corporation Bond
18,00016,000(Year)

Average PROC years (right axis)

11.0

Average PROC years(excluding short-term loans payable) (right axis)

5.0

10.0

4.5

9.0

4.0
14,000

4.2

8.0

7.1
3.5

7.0
6.4

12,000
3.0

6.0

2.5

5.0

2.0

4.0

1.5

3.0

4,000

1.0

2.0

2,000

0.5

1.0

10,000

8,000

6,000

0

32nd 33rd 34th 35th 36th 37th 38th 39th 40th 41st 42nd 43rd 44th 45th 46th 47th 48th 49th 50th 51st 52nd
FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP

0.0

18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st
FP FP FP FP FP FP FP FP FP FP FP FP FP FP

0.0

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

28

Status of Interest-Bearing Liabilities (3)As of End of the 31th Fiscal Period
Name of Financial Institutions(Million Yen)

Comparison with
Previous Period

Balance

Balance Ratio

Name of Financial Institutions

Comparison with
Previous Period

Balance

Balance Ratio

Sumitomo Mitsui Banking Corporation

39,400

-500

20.3%

Nippon Life Insurance Company

1,300

-

0.7%

Sumitomo Mitsui Trust Bank, Limited

23,500

-200

12.1%

The Hyakugo Bank, Ltd.

1,000

-

0.5%

Development Bank of Japan Inc.

21,750-

11.2%

The Yamanashi Chuo Bank, Ltd.

1,000

-

0.5%

MUFG Bank, Ltd.

20,500

-200

10.5%

Momiji Bank, Ltd.

1,000

+1,0000.5%Mizuho Corporate Bank, Ltd.

19,400

-200

10.0%

Taiyo Life Insurance Company

300

-

0.2%

Shinsei Bank, Limited

14,000-

7.2%

Fukoku Mutual Life Insurance Company

200

-

0.1%

Resona Bank, Limited.

12,500-

6.4%

The Higashi-Nippon Bank, Limited--1,000-Mizuho Trust and Banking Co., Ltd.

9,500

-

4.9%

194,350-1,100100.0%The Bank of Fukuoka, Ltd.

6,500

-

3.3%

Kansai Mirai Bank, Limited

5,000

-

2.6%

Issuance

Nishi-Nippon City Bank, Ltd.

3,000

-

1.5%

No. 4 Unsecured Investment Corporation Bond

2,100

-

10 years

The 77 Bank, Ltd.

3,000

-

1.5%

No. 5 Unsecured Investment Corporation Bond

1,700

-

5 years

The Norinchukin Bank

3,000

-

1.5%

No. 6 Unsecured Investment Corporation Bond

1,300

-

12 years

The Gunma Bank, Ltd.

2,500

-

1.3%

No. 7 Unsecured Investment Corporation Bond
(DOI ESG Series Bond I)

1,500

-

5 years

The Musashino Bank, Ltd.

2,000

-

1.0%

No. 8 Unsecured Investment Corporation Bond
(DOI ESG Series Bond II)

2,400

-

10 years

Tokio Marine & Nichido Fire Insurance Co.,
Ltd.

2,000

-

1.0%

Total Investment Corporation Bonds

9,000

-

-

The Yamaguchi Bank, Ltd.

2,000

-

1.0%

Total

Comparison with
Previous Period

Balance

Duration of Liabilities

Green Bond

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

29Unitholders as of the End of May 2021
Unitholders’ Share by Investor Type

List of Top 10 Investors

Num ber ofUnits
End of 30th
Fiscal Period

Num ber ofUnits
End of 31st
Fiscal Period

Individual

13,756

13,618

-138

2.79%

Financial
Institution

149,436

148,266-1,17030.38%----

13,037

14,086+1,0492.89%

124,103120,260-3,84324.64%

2,769

306-2,4630.06%

Investor TypeCom m ercial
Bank
Regional Bank

Trust BankLife Insurance

Rate (Note)
End of 31st
Fiscal Period

Change inUnits

Num ber ofUnits
End of 30th
Fiscal Period

Num ber ofUnits
End of 31st
Fiscal Period

128,905

128,905-

26.41%

67,321

67,321-13.79%The Master Trust Bank of Japan, Ltd.

55,77053,503-2,26710.96%

Custody Bank of Japan, Ltd.

40,52139,011-1,510

7.99%

STICHTING PGGM DEPOSITARY PGGM

26,376

26,688

+312

5.47%

14,39813,391-1,0072.74%

7 (Securities Investm ent Trust

10,941

10,385

-556

2.13%

8 BNYM AS AGT/CLTS 10 PERCENT

8,227

6,914

-1,313

1.42%

9 JAPAN SECURITIES FINANCE CO., LTD.

1,770

5,602

+3,832

1.15%

10 SSBTC CLIENT OMNIBUS ACCOUNT

3,134

4,828

+1,6940.99%

357,363356,548-815

73.05%

No.

Investor Name

1 Daiw a Investm ent Managem ent Inc.

2 Daiw a Securities Group Inc.

3 (Trust Account)
4 (Trust Account)

5 LISTED REAL ESTATE PF FUND

The Nom ura Trust and Banking Co.,

6 Ltd.
Non-life
Insurance
Other Financial
Institution

0

+50

+50

0.01%

9,527

13,564+4,037

2.78%

Other Domestic
Corporation

200,338

200,346+8

41.05%

Foreigner

112,223

110,543-1,68022.65%

Securities

16,124

15,315

-809

3.14%

Total

491,877

488,088-3,789100.00%(Note) Rounded to the second decimal place(Investm ent Trust Account)
Custody Bank of Japan, Ltd.
Account)

Total

Rate (Note)
End of 31st
Fiscal Period

Change in
Units(Note) Rounded to the second decimal place

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

30Section 5
Efforts on ESG

Efforts on ESG | Environment
Acquisition of Environmental Certification

Environmental Performance Targets/Results

As a result of proactive acquisition of CASBEE Property Appraisal and other certifications,as of May 31, 2021, the number of properties that have acquired environmental certificationstood at a total of 31 and the acquisition ratio (based on a total floor area in the owned
properties) improved to 60.3%.

The reduction targets and actual results of energy consumption, CO2 emission and water
consumption for the entire portfolio are as follows.

<Environmental Certifications Acquired>
CASBEE Certification: 29 DBJ Green Building Certification: 2★

Rank S: 3
Rank A: 22

BELS Evaluation: 2★★★★: 1★★: 1★★★: 1★

LEED Certification: 1<Reduction Targets and Actual Results for Each Item>
Item

Reduction target(Mid- to long-term target)

EnergyReduction of 5% on an intensity
basis compared to base year

CO2

Reduction of 5% on an intensity
basis compared to base year

Water

Maintain the current level

GOLD: 1★: 1

Rank B+: 4<Change in the Ratio of Properties and the Area
That Have Acquired Environmental Certification>
400,000 m²: Area that acquired green building certification

100%

300,000 m²: Ratio of properties that
acquired green building certification

80%
60%

200,000 m²<GRESB Real Estate Assessment>
We have participated in the GRESB Real
Estate Assessment since 2011 andearned Green Star for nine consecutive
years.

Waste

40%

100,000 m²

–

20%

0 m²

0%

29th FP

30th FP

Actual reduction
Unit

FY2019[base year]

FY2020Rate ofchangeConsumption (MWh)114,466

107,902-5.73%

Consumption intensity (MWh/m²)

0.196

0.181

-7.65%

Emission (t-CO2)

50,04044,675-10.72%Emission intensity (t-CO2/m²)

0.085

0.075

-11.77%

Consumption (m³)

431,914313,046-27.52%

Consumption intensity (m³/m²)

0.739

0.525

-28.96%

Consumption (t)

4,878

3,991

–

Amount of recycled waste (t)

2,868

2,401

–

Recycling rate (%)

58.80

60.16

–

*1 Reduction target (Mid- to long-term target) : The following targets are established for all properties[Energy and CO2] 5% reduction compared to base year over 5 years (from FY2019 (base year) to FY2024) on an intensity basis[Water]
Maintain current level over 5 years (from FY2019 (base year) to FY2024)

31st FP*1 When several certifications have been obtained for the same property, it iscounted as one property so as to calculate the number of properties that
acquired environmental certification without any duplication.
*2 For the sectional ownership building, the figures are calculated using thetotal floor area based on DOI’s ownership ratio.

*2 Aggregation method: Intensity is calculated by dividing each consumption/emission for each fiscal year by intensity denominator(sum of the total floor areas (m²) in accordance with the period of ownership of each building).
The recycling rate is calculated by dividing consumption for each fiscal year by the amount of recycled waste.

Examples of Initiatives<Introduction and Upgrading of LED Lighting, Etc.>

We have introduced LED lighting, etc. sequentially in exclusive areas, common areas, etc. in
the properties we own, and aim to achieve a 100% LED lighting installation rate by the end of
the 41st FP. (Estimated reduction effect for 31st FP to 41st FP: electricity reduction of approx.
11%, CO2 reduction equivalent to 5,000 t)
100%

100%

94%

<Introduction of Water-Saving Equipment
and Upgrading of Facilities>

Upon the renewal of heat source equipment, air-conditioning
equipment, etc., we introduced high-efficiency heat source
equipment with higher energy efficiency and upgraded airconditioning equipment to one with higher energy-saving
performance.

We upgraded sanitary equipment to one withhigherwater-saving
performanceandimplemented renovation to enable use of
rainwater and greywater for non-potable use in
the buildings, etc.

<Issuance of Green Bonds>

We issued our first green bonds (3.9billion yen) in September 2020, believingthat providing investment opportunities toinvestors who are active in ESG
investment is of a social significance.

75%

95%
90%

100%

<Introduction of High-Efficiency Heat Source Equipment
and Upgrading of Air-Conditioning Equipment>

90%
28%

50%
25%

85%
31st 32nd 33rd 34th 35th 36th 37th 38th 39th 40th 41st
FP FP FP FP FP FP FP FP FP FP FP

Introduction of LED in line with renovationof common areas on each floor(Daiwa Sasazuka Tower)

Renewal of air-conditioning equipment(Daiwa Akasaka)Renewal of bathroom vanities, etc.
(Daiwa Minami Aoyama)

Use of the proceeds to repay the loans
taken out to acquire a property(Daiwa Harumi)

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

32

Efforts on ESG | Social
Efforts for Enhancing Tenant Satisfaction and Engaging with Local Communities<Countermeasures Against COVID-19><Installation of Cycle Port for Cycle Sharing>
Installed cycle port for cycle sharing in the building’s site,
contributing to convenience for tenant employees, local
residents and others.

•

Display notice on safety measures•

Install disinfectants, air cleaners, etc.

•

Make sure that employees of building management and building cleaning companies<Installation of Digital Signage>
thoroughly follow hygienic measures (face masks, hand-washing, disinfection, etc.).

Disinfect common areas on a daily basis and establish system of implementing Installed digital signage in elevator halls and othercommon areas of portfolio properties to display energy
disinfection in cooperation with administrative bodies when a COVID-19 case arises, etc.
consumption and promote energy reduction.
• Introduced VR previews of properties for the first time••

<Implement Tenant Satisfaction Surveys>
Implemented questionnaire surveys for office and shop tenants and share theresults with property management companies for application to operational
improvement in an effort to improve tenant satisfaction.
<Expression of Respect for Health Care Workers>
Implemented blue illumination to prevent people from crowding and health caresystem from collapsing. This was an expression of gratitude and respect for
health care workers and shared the thought with users of the office.

Dispatch information to investors through online IR seminars

Install air cleaners(Daiwa River Gate)

Implement antibacterial
treatment

Introduce VR viewing service

Dispatch information(You can view Daiwa Ginza
through online IR seminars
Building from the QR code above)

Install cycle sharing port
(Shinjuku Maynds Tower)

Install digital signage(Daiwa Shibuya Miyamasuzaka)

Efforts for Employees<Improving Various Programs><Development of Office Environment><Implement Jeans Day>
Developed the office environment such as[Child care-related]
Holding “Jeans Day,” an initiative of• Child care leave
establishing a cafeteria space where
the sponsor Daiwa Securities Group
employees can work comfortably, installing• Child care support leave (acquisition rate: 100%)
Inc. Since June 2021, employees
free vending machines, developing the• Short working hours system/Day care subsidy
can come to office in casual wear
communication environment including Wisystemsuch as polo shirts and jeans on
Fi and utilizing free space for remote work.
Fridays, and a charity drive is held
[Nursing care-related]to aid those impacted by COVID-19• Nursing care leave<Attempt of ABW>
(on third Fridays).
Granted subsidies for the remote work plan
[Other]athotels
owned
by
Daiwa
Hotel
Private• Introduced flex time (from May 2021)
Investment
Corporation
whose• Introduced teleworking
management is entrusted to the asset(lending computers, cellphones, etc. to all employees)
management company.
<Ratio of Women at the Asset Management
Furthermore, made attempts addressing
Company>
various workplace and work-style matterssuch as using conference rooms and free
Ratio of women among all employees: 30.7%
space as temporary offices to secure
Ratio of women in managerial positions
space at offices.
(assistant manager or higher):
19.8%*ABW: Activity Based Working

Implement Jeans Day

Blue illumination of the symbol tree, building, etc.
(Shinjuku Maynds Tower)(Daiwa Shibuya Miyamasuzaka)

BCP (Business Continuity Plan)/Efforts for Disaster Prevention
Formulated BCP measures in order to secure safetyof employees, tenants and facility users as well as
continue with important business operations in timesof emergency such as disasters.
Periodically hold emergency drills in collaboration
with PM and BM and promote disaster prevention
measures with AEDs, elevator emergency goods
boxes, emergency stockpile, etc. at portfolio
properties where these can be installed.

Install emergency stockpile

Elevator emergency goods box(Daiwa Azabu Terrace)

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

33

Efforts on ESG | Social / Governance
Establishment of Sustainability Promotion OfficeSame-Boat Investment by the Sponsor Group

Under the recognition that emphasis of ESG in asset management contributes to improving
corporate value in the medium to long term, the Sustainability Promotion Committee wasestablished in 2014 and the Policy Regarding ESG was formulated in March 2019.

Aim to increase unitholder value by matching unitholder interest with the sponsor’s interest

In order to further enhance sustainability efforts, the Sustainability Promotion Office wasestablished in the Asset Management Company on June 1, 2021. In this department,planning, drafting and implementation of ESG and SDGs of the Asset Management
Company and all investment corporations it operates are systematically promoted.

Sponsor group

Number of units

Daiwa Investment
Management Inc.

Holding ratio

128,905 units

26.41%

Daiwa Securities
Group Inc.

67,321 unis13.79%

Holding ratio of Daiwa
Securities Group:
40.2%

Responding to Social Issues Through the Asset Management Company’s Investment in Health Care Facilities
Daiwa Securities Living Investment Corporation contributes to SDGs Target No. 3 “Good health and well-being” and “Achievement of good health and longevity,” one of the top
priorities for achievement of SDGs regarded by the Japanese government.

Social Issues

Daiwa Securities Living Investment Corporation’s Know-How

 Growing needs for health care facilities due to the progression of aging society Capability to make selective investment and support operations, which was gained
through the operation of the former Nippon Healthcare Investment Corporation

 Disparities in the quality of health care facilities and operators
 Diversification of financing methods of operators and their needs to reduce financial risks

 Strong cooperation of operators with Good Time Living Co. Ltd. as the core, which is thelargest operator and also the same-boat investor.

Promotion of the supply of excellent health care facilities
and attraction of highly social funds through the capital market

Review of Management Fee System
Changed to an asset management fee system focusing on management results and enhancing the incentive to increase the distributable amount regarding Management Fee I and III (since the
FP ended November 2018)
Management Fee I(based on assets under management)
Basis of the calculation

Total appraisal value of assets under management(based on market value)

Fee rate
0.05%

Management Fee II(rent revenue standard)
Basis of the calculation
Rent revenue

Management Fee III(based on distributable amount)
Basis of the calculation

Fee rate
3.5%

Distributable amountManagement Fee IV(asset acquisition standard)
Fee rate
5.5%

Basis of the calculation

Fee rate

Acquisition price of target real estate

0.75%

Management Fee V(asset sale standard)
Basis of the calculation
Transfer price of target real estate

Fee rate
0.5%

Lower the ratio linked to the amountof assets under management
Enhanced incentive to increase
distributable amountManagement fee rate for the 31st FP(Note): 0.52%(Note) Annual rate, based on acquisition priceThis document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it
intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

34

Daiwa Securities Group’s Efforts to Achieve SDGs

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

35

Appendix

Three Characteristics of the Investment Corporation(As of July 19, 2021)

OfficeBuilding

Office Specialized REIT

100％

Greater Tokyo

REIT focused on
the Five Central Wards ofTokyo

Regional Major Cities

17.5％

2.1％

Five Central Wards of Tokyo

80.5％(Note) Based on acquisition price.

Steady Growth in Distribution

Dividend
per Unit

Fiscal period ended
Nov. 2020(30th FP)
ActualFiscal period ended
May 2021(31st FP)
ActualFiscal period ending
Nov. 2021(32nd FP)
Forecast

Fiscal period ending
May 2022(33rd FP)
Forecast

13,817 yen

14,000 yen

14,000 yen

14,000 yen

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

37

Portfolio Breakdown by Region and Status in Shinjuku and Shibuya Areas
Shinjuku Maynds Tower

Portfolio Breakdown by Region (%)
Osaka City
2.1％

Yokohama City
8.7％
Other 18 Wardsof Tokyo
8.8％
Chiyoda Ward
4.4％

Shinjuku Maynds Tower Occupancy Rate（％）

Regional Cities
2.1％
Greater Tokyo
17.5％

Shibuya Ward
35.1％

Shibuya Ward/
Shinjuku Ward
42.2％

Minato Ward
11.0%

Five Central Wardsof Tokyo
80.5％

Chuo Ward
22.9%

Shinjuku Ward
7.1％

Location

2-chome, Yoyogi,
Shibuya-ku

Acquisition
price66,900 million yen

13rd 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st 32nd 33rd
FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP
End
End(Note 1) Based on acquisition price(As of July 19, 2021)(Note 2) Percentage is rounded to the first decimal place

E SPACE TOWER

Large-Scale Office Building Supply inthe 23 Wards of Tokyo

E SPACE TOWER Occupancy Rate

2021―2025（％）

Total from 2021 to 2025

4,680,000 m²

Other
1,150,000 m²
Shibuya Area
230,000 m²
Marunouchi andOtemachi Area
890,000 m²
Akasaka andRoppongi Area
890,000 m²

Toranomon Area
890,000 m²

Nihombashi,Yaesu
and Kyobashi Area
820,000 m²

Shinagawa Area
360,000 m²

Source: Mori Trust
Large-scale properties: Offices with total floor areas of 10,000 m² or more

Tamachi and
Hamamatsucho Area
660,000 m²

Location

3 Maruyama-cho,Shibuya-ku

Acquisition
price

24,000 million yen

13rd 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st 32nd 33rd
FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP
End
End(Note) Rent revenue is indexed as the end of the 13th FP = 100.
Ownership interest of Shinjuku Maynds Tower is adjusted from the 25th FP.

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

38

Summary of Results for the Fiscal Period Ended May 2021 (31st FP) (1)― Balance Sheet ―Comparison with Results of the 30th Fiscal Period

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

39

Summary of Results for the Fiscal Period Ended May 2021 (31st FP) (2)― Income Statement ―Comparison with Results of the 30th Fiscal Period

Comparison with the 31st Fiscal Period Forecasts(Note) Dividends per unit for the 30th FP is calculated by dividing the amount obtained by subtracting provision for reserve for reduction entry (328 million yen) from unappropriated retained earnings by the total number of investment units issued andoutstanding. Dividends per unit for the 31st FP is calculated by dividing the amount obtained by subtracting provision for reserve for reduction entry (716 million yen) from unappropriated retained earnings by the total number of investment units issued
and outstanding.

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

40

Forecasts for the Fiscal Periods Ending November 2021 and May 2022
(32nd and 33rd FP)
Forecasts for the 31st and 32nd Fiscal Periods

Effective Number of Days of Investment(Million Yen)

31st Period(May. 31, 2021)

32nd Period
Forecast(Nov 30, 2021)

33rd Period
Forecast(May 31, 2022)

182 days

183 days

182 days

15,054

13,851

13,697

1,026

-

-

6,917

6,543

6,388

Expenses related to Rental Business(excluding depreciation)

3,638

3,357

3,208

Depreciation

1,816

1,806

1,806

Gain and Loss from Rental Operations(Note)(excluding gain on sales of real estate properties
)

8,573

8,688

8,681

Operating Income (A-B)

8,137

7,308

7,308

Non-operating Expenses

592

570

570

445

435

433

7,550

6,737

6,738

Extraordinary Income

-

-

-

Extraordinary Expenses

-

-

-

Total Income Taxes(Includes income taxes deferred)

0

2

2

7,549

6,735

6,736

488,088 units

488,088 units

488,088 units

14,000 yen

14,000 yen

14,000 yen

Operating Revenues (A)Gain on sales of real estate properties (Note)
Operating Expenses (B)Interest Expense(including cap amortization)
Ordinary Income

Net Income
Investment Units Issued and Outstanding
Dividend per Unit

(Note)(Note) Dividends per unit for the 31st FP is calculated by dividing the amount obtained by subtracting provision for reserve for reduction entry (716 million yen) from unappropriated retained earnings by the total
number of investment units issued and outstanding.
Dividends per unit for the 32nd FP is calculated by diving the amount obtained by adding reversal of reserve for reduction entry (97 million yen) to unappropriated retained earnings by the total number ofinvestment units issued and outstanding. Dividends per unit before the reversal is 13,800 yen. Moreover, reversal of reserve for reduction entry may change depending on the operational status.
Dividends per unit for the 33rd FP is calculated by diving the amount obtained by adding reversal of reserve for reduction entry (97 million yen) to unappropriated retained earnings by the total number ofinvestment units issued and outstanding. Dividends per unit before the reversal is 13,800 yen. Moreover, reversal of reserve for reduction entry may change depending on the operational status.

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

41

Status of Interest-Bearing Liabilities (1) (as of May 31, 2021)
Borrowings
LenderShort-term Sumitomo Mitsui Banking Corporation
borrowings Shinsei Bank, Limited

Total short-term borrowings

Shinsei Bank, Limited (*)(**)

Current maturities oflong-term borrowings

Sumitomo Mitsui Banking Corporation (*)

MUFG Bank, Ltd. (*)
Mizuho Bank, Ltd. (*)
MUFG Bank, Ltd. (*)
Sumitomo Mitsui Banking Corporation (*)
Sumitomo Mitsui Banking Corporation (*)

MUFG Bank, Ltd. (*)
Development Bank of Japan Inc.
MUFG Bank, Ltd. (*)
MUFG Bank, Ltd. (*)
Development Bank of Japan Inc.
Development Bank of Japan Inc.

The Gunma Bank, Ltd. (*)
Total current maturities of long-term borrowings
Sumitomo Mitsui Banking Corporation (*)

MUFG Bank, Ltd. (*)
Shinsei Bank, Limited
Sumitomo Mitsui Banking Corporation (*)

Mizuho Bank, Ltd. (*)
Sumitomo Mitsui Banking Corporation (*)

Shinsei Bank, Limited

Long-term borrowings

Mizuho Bank, Ltd. (*)
Resona Bank, Limited (*)
Sumitomo Mitsui Trust Bank, Limited (*)
Sumitomo Mitsui Banking Corporation (*)

Resona Bank, Limited (*)
Shinsei Bank, Limited
The Bank of Fukuoka, Ltd. (*)
Sumitomo Mitsui Trust Bank, Limited (*)

Mizuho Bank, Ltd. (*)
Shinsei Bank, Limited
Resona Bank, Limited (*)
Sumitomo Mitsui Banking Corporation (*)

Mizuho Bank, Ltd. (*)
MUFG Bank, Ltd. (*)
Nishi-Nippon City Bank, Ltd.
The 77 Bank, Ltd. (*)
Sumitomo Mitsui Banking Corporation (*)

Nippon Life Insurance Company (*)
MUFG Bank, Ltd. (*)
Sumitomo Mitsui Trust Bank, Limited (*)

Balance(million y en)

1,400
1,000
2,400
1,000
1,000
1,000
1,500
1,000
3,500
4,000
1,000
1,000
1,000
1,000
2,000
1,500
1,000
21,500
3,000
1,000
1,000
2,000
1,000
1,000
1,000
1,500
1,500
1,000
1,500
2,500
1,500
1,500
1,500
1,500
1,500
1,500
3,000
2,000
500
2,000
1,000
500
1,000
1,000
1,000

Interest
Type

Float
Float

Interest Rate(%)

T+0.250%
T+0.250%

Date of
AdvanceDue date

21/5/31
21/5/31

22/5/31
22/5/31

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

0.856%
0.593%
0.618%
0.585%
0.585%
0.618%
0.585%
0.560%
0.692%
0.593%
0.560%
0.710%
0.634%
0.443%

13/7/31
14/3/25
14/5/29
14/5/29
14/5/29
14/7/8
14/7/8
14/12/1
14/12/3
14/12/3
14/12/3
15/3/31
15/5/1
15/11/30

21/8/31
22/2/28
21/11/30
22/5/31
22/5/31
21/11/30
22/5/31
22/5/31
21/11/30
21/11/30
22/5/31
22/3/31
22/5/31
22/2/28

Fixed
Fixed
Float
Fixed
Fixed
Fixed
Float
Fixed
Fixed
Fixed
Fixed
Fixed
Float
Fixed
Fixed
Fixed
Float
Fixed
Fixed
Fixed
Fixed
Float
Fixed
Fixed
Fixed
Fixed
Fixed

0.378%
0.378%
L+0.325%
0.378%
0.353%
0.458%
L+0.350%
0.353%
0.353%
0.353%
0.458%
0.365%
L+0.325%
0.408%
0.450%
0.450%
L+0.325%0.450%
0.441%
0.450%
0.450%
L+0.250%
0.281%
0.440%
0.281%
0.403%
0.403%

14/5/29
14/5/29
14/7/8
14/7/8
14/12/1
14/12/1
14/12/1
14/12/3
14/12/3
14/12/3
14/12/3
15/2/27
15/3/31
15/5/1
15/5/1
15/5/1
15/5/1
15/5/1
15/5/1
15/5/29
15/5/29
15/8/31
15/8/31
15/8/31
15/9/1115/9/1115/9/11

22/11/30
22/11/30
22/8/31
22/11/30
22/11/30
23/5/31
23/5/31
22/11/30
22/11/30
22/11/30
23/5/31
23/2/28
23/5/31
23/5/31
23/11/30
23/11/30
23/11/30
23/11/30
24/5/31
23/11/30
23/11/30
22/8/31
22/8/31
24/8/30
22/8/31
24/2/29
24/2/29

Term

LenderSumitomo Mitsui Banking Corporation (*)

Nippon Life Insurance Company (*)
Taiyo Life Insurance Company
Sumitomo Mitsui Banking Corporation (*)

Development Bank of Japan Inc.
Mizuho Bank, Ltd. (*)
Resona Bank, Limited (*)
Mizuho Trust and Banking Co., Ltd. (*)

Shinsei Bank, Limited (*)
Nishi-Nippon City Bank, Ltd.
MUFG Bank, Ltd. (*)
MUFG Bank, Ltd. (*)
Sumitomo Mitsui Trust Bank, Limited (*)
Sumitomo Mitsui Banking Corporation (*)

Mizuho Bank, Ltd. (*)
Shinsei Bank, Limited (*)
Fukoku Mutual Life Insurance Company

Long-term borrowings

Term

The Yamaguchi Bank, Ltd.
Development Bank of Japan Inc.
Development Bank of Japan Inc.
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation (*)
Mizuho Trust and Banking Co., Ltd. (*)
Sumitomo Mitsui Trust Bank, Limited (*)
Sumitomo Mitsui Banking Corporation (*)

Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation (*)

Mizuho Bank, Ltd. (*)
Tokio Marine & Nichido Fire Insurance Co., Ltd.

Development Bank of Japan Inc.
The Yamaguchi Bank, Ltd.
Shinsei Bank, Limited (*)
Sumitomo Mitsui Trust Bank, Limited (*)

The Gunma Bank, Ltd. (*)
The Musashino Bank, Ltd. (*)
Tokio Marine & Nichido Fire Insurance Co., Ltd.

Kansai Mirai Bank, Limited
The Bank of Fukuoka, Ltd.
Development Bank of Japan Inc.
Sumitomo Mitsui Trust Bank, Limited (*)

Mizuho Trust and Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation

MUFG Bank, Ltd. (*)
Mizuho Bank, Ltd.
The Gunma Bank, Ltd. (*)

Balance(million y en)

1,000
300
300
1,500
1,500
1,000
1,000
1,000
1,000
1,000
2,500
1,500
2,000
1,500
1,000
2,000
200
1,500
1,700
3,500
3,000
2,000
1,500
3,000
2,000
2,550
1,500
1,000
1,000
2,000
500
2,000
5,000
500
500
1,000
1,500
2,000
1,000
1,000
4,000
3,000
1,000
1,000
1,000

Interest
Type

Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Float
Fixed
Fixed
Float
Float
Float
Float
Float

Interest Rate(%)

0.440%
0.281%
0.541%
0.290%
0.303%
0.290%
0.391%
0.391%
0.378%
0.378%
0.415%
0.415%
0.421%
0.460%
0.460%
0.421%
0.579%
0.450%
0.387%
0.437%
0.477%
0.410%
0.410%
0.452%
0.452%
0.457%
0.513%
0.513%
0.303%
0.498%
0.489%
0.482%
0.436%
0.335%
0.457%
0.313%
0.376%
T+0.350%
0.679%
0.472%
T+0.350%
T+0.350%
T+0.350%
T+0.350%
T+0.225%

Date of
Advance

15/9/11
15/11/30
15/11/30
16/3/29
16/3/29
16/3/29
16/3/29
16/3/29
16/3/29
16/3/29
16/3/29
16/3/29
16/5/26
16/5/26
16/5/26
16/5/31
16/5/31
16/8/31
17/5/10
17/5/22
17/5/22
17/5/31
17/5/31
17/5/31
17/5/31
17/8/31
17/8/31
17/8/31
17/11/30
17/11/30
17/11/30
17/11/30
18/2/28
18/5/31
18/5/31
18/7/31
18/8/31
18/8/31
18/8/31
18/10/30
18/10/30
18/10/30
18/10/30
18/10/30
19/3/29

Due date

24/8/30
22/8/31
22/11/30
23/2/28
23/2/28
23/2/28
23/8/31
23/8/31
24/2/29
24/2/29
24/8/30
24/8/30
24/11/29
25/5/30
25/5/30
24/11/29
26/5/29
26/8/31
23/11/30
24/5/31
24/11/29
25/5/30
25/5/30
25/11/28
25/11/28
25/5/30
26/8/31
26/8/31
22/11/30
25/5/30
25/11/28
26/5/29
26/2/27
25/5/30
26/5/29
23/7/31
25/8/31
27/8/31
27/8/31
26/10/30
27/10/29
27/10/29
27/10/29
27/10/29
26/3/31(Note) Fixed Interest Rate and Floating Interest Rate are rounded to the third decimal place.
** Interest rates that were changed from a floating rate to a fixed rate by concluding the swap agreement are described as fixed interest rates.
** Interest rates are converted based on 1 year = 365 days and indicated.

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

42

Status of Interest-Bearing Liabilities (2) (as of May 31, 2021)
Borrowings
Term

LenderThe Bank of Fukuoka, Ltd.
MUFG Bank, Ltd.
The Norinchukin Bank
The Hyakugo Bank, Ltd.
The Musashino Bank, Ltd.
The Yamanashi Chuo Bank, Ltd.
Kansai Mirai Bank, Limited
MUFG Bank, Ltd. (*)
Resona Bank, Limited
Sumitomo Mitsui Trust Bank, Limited (*)
Sumitomo Mitsui Trust Bank, Limited (*)

Development Bank of Japan Inc.

Long-term borrowings

Sumitomo Mitsui Trust Bank, Limited (*)

The 77 Bank, Ltd. (*)
The Norinchukin Bank
Resona Bank, Limited
Sumitomo Mitsui Trust Bank, Limited (*)
Sumitomo Mitsui Trust Bank, Limited (*)

MUFG Bank, Ltd. (*)
Sumitomo Mitsui Banking Corporation (*)

MUFG Bank, Ltd. (*)
Kansai Mirai Bank, Limited
The Musashino Bank, Ltd.
Mizuho Trust and Banking Co., Ltd. (*)
Sumitomo Mitsui Banking Corporation (*)

Shinsei Bank, Limited (*)
Development Bank of Japan Inc.
Sumitomo Mitsui Trust Bank, Limited
Momiji Bank,Ltd.
Mizuho Bank, Ltd. (*)
Mizuho Bank, Ltd. (*)
Mizuho Bank, Ltd. (*)
Mizuho Bank, Ltd. (*)
MUFG Bank, Ltd. (*)
Sumitomo Mitsui Banking Corporation

Resona Bank, Limited
The 77 Bank, Ltd.
Total long-term borrowings
Total borrowings

Balance(million y en)

3,000
2,000
2,000
1,000
500
1,000
1,500
1,000
2,000
1,300
1,200
1,000
1,500
1,000
1,000
2,000
1,000
3,000
2,000
1,600
1,500
2,000
1,000
3,000
2,000
2,000
1,000
1,000
1,000
1,900
2,000
2,000
2,000
1,500
2,400
2,000
1,000
170,450
194,350

Interest
Type

Float
Float
Fixed
Fixed
Float
Fixed
Float
Fixed
Float
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Float
Fixed
Fixed
Fixed
Fixed
Fixed
Float
Float
Fixed
Fixed
Fixed
Fixed
Float
Float
Fixed
Fixed
Fixed
Fixed
Fixed
Float
Float
Float

Investment Corporation Bonds
Interest Rate(%)

T+0.350%
T+0.350%0.304%
0.304%
T+0.300%
0.540%
T+0.250%0.320%
T+0.400%
0.208%
0.322%
0.450%
0.209%
0.319%
0.350%
T+0.350%0.211%
0.322%
0.322%
0.326%
0.326%
T+0.400%
T+0.400%
0.297%
0.400%
0.400%
0.350%
T+0.350%
T+0.450%0.146%
0.279%
0.356%
0.436%
0.436%
T+0.400%
T+0.400%
T+0.450%

Date of
Advance

19/3/29
19/3/29
19/5/31
19/5/31
19/5/31
19/5/31
19/8/30
19/8/30
19/9/30
19/11/29
19/11/29
19/11/29
20/2/28
20/2/28
20/2/28
20/2/28
20/5/29
20/5/29
20/5/29
20/8/31
20/8/31
20/8/31
20/8/31
20/11/30
20/11/30
20/11/30
20/11/30
21/2/26
21/2/26
21/3/31
21/3/31
21/3/31
21/3/31
21/3/31
21/3/31
21/3/31
21/5/31

Due date

Issuance

28/3/31
28/3/31
26/5/29
26/5/29
27/5/31
29/5/31
26/8/31
26/8/31
29/9/28
24/11/29
26/11/30
28/11/30
25/2/28
27/2/26
28/2/29
29/2/28
25/5/30
27/5/31
27/5/31
27/8/31
27/8/31
30/8/30
30/8/30
27/5/31
28/11/30
28/11/30
28/11/30
29/2/28
31/2/28
24/3/29
26/3/31
27/3/31
28/3/31
28/3/3130/3/29
30/3/29
31/5/30

No. 4 Unsecured Investment Corporation Bond
No. 5 Unsecured Investment Corporation BondNo. 6 Unsecured Investment Corporation Bond
No.7 Unsecured Investment Corporation BondNo. 8 Unsecured Investment Corporation Bond

Total investment corporation bonds

Balance(million y en)

2,100
1,700
1,300
1,500
2,400
9,000

Interest
Type

Fixed
Fixed
Fixed
Fixed
Fixed

Interest Rate(%)

1.000%
0.220%
0.660%
0.310%
0.600%

Date of
Advance

14/9/12
19/9/12
19/9/12
20/9/11
20/9/11Due date

24/9/12
24/9/1231/9/1225/9/1130/9/11(Note) Fixed Interest Rate and Floating Interest Rate are rounded to the third decimal place.
** Interest rates that were changed from a floating rate to a fixed rate by concluding the swap agreement are described as fixed interest rates.

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

43Analysis of Tenants
Major Tenants (Top 10)

Tenant Name

Not disclosed (Note 1)
Not disclosed (Note 1)

Property

Daiwa Sasazuka Tower

Breakdown of Industries (Note 1) of Tenants (Note 2) (%)
Leased Area(m2)

7,135.30
6,189.96

Daiwa Kitahama% of Total
Leased Area
(Note 2)

2.0%

Other Finance
3.0%

1.7%

Insurance
3.0%

Tokio Marine & Nichido Anshin
Consulting Co., Ltd.

Daiwa Ogikubo Tower

6,058.41

1.7%

Palsystem Consumers'
Co-operative UnionLAQUAS Higashi Shinjuku

5,985.08

1.7%

Not disclosed (Note 1)

Daiwa Kayabacho Building

5,899.11

1.6%

Kirin Brewery Company, Ltd.

Kirin Nihonbashi Building

5,630.17

1.6%

INES Corporation

Daiwa Harumi

4,770.20

1.3%

Mitsubishi UFJ NICOS Co., Ltd.

Daiwa Kitahama

4,515.35

1.2%

Not disclosed (Note 1)

Daiwa Sasazuka Tower

4,226.34

Other
15.8%

1.2%

Services
24.0%
Information &Communication
21.6%

Foods
3.2%

Information
Services

12.3%

Wholesale
4.7%
Electric Device
4.8%

Visual/Voice
Information Production

3.9%

Internet-related
Services

2.8%

Construction
5.2%
Real Estate
6.8%

Communications

2.4%

Retail Trade
7.8%

Broadcast

0.3%(As of May 31, 2021)(Note 1) Industries are categorized and prepared by the Investment Corporation according to TSE’s 33 industry groups.
(Note 2) The targets were changed to all tenants from Earnings Announcement for the 30th Fiscal Period.
(Note 3) The categories in the Information & Communication industry are created/prepared by the Investment.
Corporation in accordance with the Japan Standard Industry Classification of the Ministry of Internal Affairs andCommunications.
(Note 4) The ratio is rounded to the first decimal place.

WeWork Japan G.K.
Total

Daiwa Harumi

3,845.14

1.0%

54,255.06

15.4%(Note 1) Not disclosed due to tenant's request.
(Note 2) Rounded down to the first decimal place.

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

44

Appraisal Value Compared With the Previous Fiscal Period (1)(Unit: Million Yen)
Appraisal Value

Property Name

Compared to End of 30th Period

End of 30th Period End of 31st Period

Book Value

ChangeDifference

End of 31st Period

Compared to Book Value at End of 31st
PeriodDifference

Cap Rate
Acquisition Price
End of 30th Period

ChangeEnd of 31st Period

Daiwa Ginza

17,70017,900

+200

+1.1%

12,672+5,22741.3%

14,100

3.4%

3.3%

Daiwa Ginza Annex

3,960

3,960

-

-

2,729

+1,230

45.1%

3,050

3.4%

3.3%

Daiwa Shibaura

8,380

8,430

+50

+0.6%

8,038

+391

4.9%

8,265

3.9%

3.9%

Daiwa Minami Aoyama

4,720

4,740

+20

+0.4%

4,390

+349

8.0%

4,550

3.8%

3.7%

Daiwa Sarugakucho

4,230

4,260

+30

+0.7%

3,099

+1,160

37.4%

3,190

4.3%

4.2%

Daiwa A Hamamatsucho

3,970

3,970

-

-

2,700

+1,269

47.0%

2,865

3.6%

3.6%

Daiwa Jingumae

3,100

3,130

+30

+1.0%

2,661

+468

17.6%

2,800

3.7%

3.6%

Daiwa Shibadaimon

3,970

4,060

+90

+2.3%

2,341

+1,718

73.4%

2,578

3.5%

3.5%

Daiwa Misakicho

3,050

3,120

+70

+2.3%

2,108

+1,011

48.0%

2,346

3.8%

3.8%

Daiwa Tsukijiekimae

2,300

2,310

+10

+0.4%

1,244

+1,065

85.6%

1,560

4.0%

4.1%

Daiwa Tsukiji

1,740

1,750

+10

+0.6%

1,103

+646

58.6%

1,240

3.9%

3.9%

Daiwa Tsukishima

10,80010,800

-

-

6,610

+4,189

63.4%

7,840

4.0%

4.0%

Daiwa Nihonbashi Horidomecho

3,010

3,030

+20

+0.7%

2,380

+649

27.3%

2,520

3.9%

3.8%

Daiwa Azabudai

1,930

1,950

+20

+1.0%

1,473

+476

32.3%

1,600

3.9%

3.8%

Daiwa Kojimachi 4-chome

2,910

2,920

+10

+0.3%

2,822

+97

3.4%

2,910

3.6%

3.5%

Shinjuku Maynds Tower

64,30064,300--63,461+838

1.3%

66,900

3.1%

3.1%

Daiwa SHIBUYA EDGE

5,430

5,450

+20

+0.4%

5,563

-113

-2.0%

5,900

3.6%

3.5%

Daiwa Kodemmacho

2,310

2,330

+20

+0.9%

2,322

+7

0.3%

2,460

4.1%

4.0%

Daiwa Nishishimbashi

7,360

7,370

+10

+0.1%

4,608

+2,761

59.9%

5,000

3.4%

3.4%

Daiwa Kayabacho Building

8,230

8,230

-

-

5,097

+3,132

61.5%

5,600

3.3%

3.3%

Daiwa Jinbocho 3-chome

5,250

5,270

+20

+0.4%

3,255

+2,014

61.9%

3,550

3.3%

3.3%

E SPACE TOWER

36,60036,600--23,421+13,178

56.3%

24,0003.0%

3.0%

Daiwa Nihonbashi Hongokucho

2,690

2,690

-

-

1,515

+1,174

77.5%

1,721

3.9%

3.9%

shinyon curumu

16,50016,500

-

-

9,509

+6,990

73.5%

9,650

3.1%

3.1%

Daiwa Akasaka

15,50015,500--10,080+5,419

53.8%

9,200

3.2%

3.2%

Daiwa Shibuya Miyamasuzaka

12,90013,100

+200

+1.6%

7,271

+5,828

80.2%

7,000

3.3%

3.3%

Daiwa Azabu Terrace

18,20018,300

+100

+0.5%

13,833+4,46632.3%

14,0003.5%

3.5%

Daiwa Ebisu 4-chome

6,440

6,440

-

-

4,167

+2,272

54.5%

4,135

3.6%

3.6%

LAQUAS Higashi Shinjuku

11,30011,300

-

-

8,316

+2,983

35.9%

8,450

3.3%

3.3%

Daiwa Aoyama

12,60012,200

-400

-3.2%

9,984

+2,215

22.2%

9,800

3.1%

3.2%

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

45

Appraisal Value Compared With the Previous Fiscal Period (2)(Unit: Million Yen)
Appraisal Value

Property Name

Compared to End of 30th Period

End of 30th Period End of 31st Period

Book Value

ChangeDifference

End of 31st Period

Compared to Book Value at End of 31st
PeriodDifference

Cap Rate
Acquisition Price
End of 30th Period

ChangeEnd of 31st Period

Shinsen Place

6,800

6,800

-

-

4,897

+1,902

38.8%

4,800

3.2%

3.3%

Daiwa Shibuya Square

22,00022,200

+200

+0.9%

15,798+6,401

40.5%

16,0003.3%

3.3%

Daiwa River Gate

33,80034,300

+500

+1.5%

27,487+6,81224.8%

28,0003.7%

3.7%

Daiwa Hatchobori ekimae

3,320

3,290

-30

-0.9%

2,884

+405

14.1%

2,871

3.4%

3.4%

Daiwa Hatchobori ekimae West

1,970

1,970

-

-

1,702

+267

15.7%

1,647

3.5%

3.5%

Daiwa Nishi-Shinjuku

17,40017,400--13,919+3,48025.0%

13,710

3.2%

3.3%

Kirin Nihonbashi Building

8,350

8,360

+10

+0.1%

8,312

+47

0.6%

8,180

3.8%

3.8%

Daiwa Higashi-Nihonbashi

7,150

7,150

-

-

6,261

+888

14.2%

6,370

3.8%

3.8%

Daiwa Daikanyama

3,590

3,620

+30

+0.8%

2,360

+1,259

53.4%

2,280

3.2%

3.2%

Daiwa Shinjuku West

1,250

1,250

-

-

985

+264

26.8%

942

3.8%

3.8%

Daiwa Kanda Mikuracho

1,820

1,850

+30

+1.6%

1,612

+237

14.7%

1,592

3.8%

3.8%

Daiwa Kanda East

5,700

5,770

+70

+1.2%

4,217

+1,552

36.8%

4,200

3.4%

3.4%

Daiwa Kandasudacho

2,820

2,820

-

-

2,370

+449

19.0%

2,295

3.6%

3.6%

Daiwa Sasazuka Tower

16,00016,000--15,922+77

0.5%

15,5003.8%

3.8%

Daiwa Sasazuka

3,570

3,570

-

-

3,170

+399

12.6%

3,000

3.9%

3.9%

Daiwa Harumi

12,60012,700

+100

+0.8%

11,208+1,491

13.3%

11,200

3.7%

3.6%

Daiwa Mita 2-Chome

3,990

4,020

+30

+0.8%

1,583

+2,436153.9%

2,635

3.7%

3.7%

Nihonbashi Central Square

3,800

3,820

+20

+0.5%

3,614

+205

5.7%

3,521

3.5%

3.4%

Nihonbashi-Bakurocho 1-Chome Development Site

4,010

4,250

+240

+6.0%

3,803

+446

11.8%

3,775

-

-

Daiwa Higashi-Ikebukuro

4,360

4,370

+10

+0.2%

2,551

+1,818

71.3%

2,958

4.0%

4.0%

Daiwa Shinagawa North

6,290

6,300

+10

+0.2%

6,989

-689

-9.9%

7,710

4.1%

4.0%

Daiwa Kamiooka

2,900

2,900

-

-

1,805

+1,094

60.6%

2,000

4.5%

4.5%

Daiwa Ogikubo Tower

23,20023,200--16,213+6,98643.1%

15,220

3.6%

3.6%

Daiwa Meguro Square

7,280

7,280

-

-

5,409

+1,870

34.6%

5,600

3.5%

3.5%

Daiwa Ogikubo

4,820

4,820

-

-

3,965

+854

21.6%

3,800

3.9%

3.9%

CONCURRED Yokohama

41,20041,200--37,762+3,437

9.1%

38,1004.2%

4.2%

Daiwa Shinagawa Gotenyama

2,880

2,880

-

-

2,569

+310

12.1%

2,500

3.9%

3.9%

Daiwa Nakano-Sakaue

2,850

2,860

+10

+0.4%

2,845

+14

0.5%

2,750

4.0%

4.0%

13,300570,400

13,300572,160+1,7600.3%

9,028
450,041+4,271+122,118

47.3%
27.1%

9,481
461,418

3.7%
-

3.7%
-

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

46

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

Appraisal Value at
End of 31st Period

Summary of Appraisal Report (End of 31st Period)
Direct Capitalization Method
Value

DCF Method

Cap Rate

Value

Discount Rate

Terminal Cap Rate

Integrated Value

Daiwa Ginza

17,90018,1003.3%

17,6003.1%

3.5%

16,800Daiwa Ginza Annex

3,960

4,050

3.3%

3,870

3.1%

3.5%

4,420

Daiwa Shibaura

8,430

8,370

3.9%

8,450

3.7%

4.1%

7,400

Daiwa Minami Aoyama

4,740

4,800

3.7%

4,680

3.5%

3.9%

4,520

Daiwa Sarugakucho

4,260

4,320

4.2%

4,190

4.0%

4.4%

1,960

Daiwa A Hamamatsucho

3,970

4,070

3.6%

3,930

3.4%

3.8%

2,450

Daiwa Jingumae

3,130

3,180

3.6%

3,080

3.4%

3.8%

3,000

Daiwa Shibadaimon

4,060

4,130

3.5%

4,030

3.3%

3.7%

2,310

Daiwa Misakicho

3,120

3,170

3.8%

3,100

3.6%

4.0%

1,900

Daiwa Tsukijiekimae

2,310

2,340

4.1%

2,300

4.1%

4.3%

2,180

Daiwa Tsukiji

1,750

1,760

3.9%

1,750

3.9%

4.1%

1,670

Daiwa Tsukishima

10,80010,9004.0%

10,700

3.7%

4.2%

5,610

Daiwa Nihonbashi Horidomecho

3,030

3,050

3.8%

3,010

3.6%

4.0%

1,750

Daiwa Azabudai

1,950

1,980

3.8%

1,920

3.6%

4.0%

1,380

Daiwa Kojimachi 4-chome

2,920

2,960

3.5%

2,870

3.3%

3.7%

4,720

Shinjuku Maynds Tower (Note)

64,300152,000

3.1%

147,000

2.9%

3.3%

52,700Daiwa SHIBUYA EDGE

5,450

5,580

3.5%

5,320

3.3%

3.7%

4,020

Daiwa Kodemmacho

2,330

2,370

4.0%

2,290

3.8%

4.2%

1,320

Daiwa Nishishimbashi

7,370

7,520

3.4%

7,300

3.2%

3.6%

5,190

Daiwa Kayabacho Building

8,230

8,370

3.3%

8,170

3.1%

3.5%

6,750

Daiwa Jinbocho 3-chome

5,270

5,390

3.3%

5,220

3.1%

3.5%

4,270

E SPACE TOWER

36,60037,4003.0%

35,7002.8%

3.2%

34,700Daiwa Nihonbashi Hongokucho

2,690

2,710

3.9%

2,680

3.7%

4.1%

1,720

shinyon curumu

16,50016,8003.1%

16,4002.9%

3.3%

16,400Daiwa Akasaka

15,50015,9003.2%

15,3003.0%

3.4%

14,800Daiwa Shibuya Miyamasuzaka

13,10013,3003.3%

12,800

3.1%

3.5%

12,300Daiwa Azabu Terrace

18,30018,6003.5%

17,900

3.3%

3.7%

17,100Daiwa Ebisu 4-chome

6,440

6,450

3.6%

6,440

3.7%

3.8%

5,040

LAQUAS Higashi Shinjuku

11,30011,7003.3%

11,100

3.1%

3.5%

10,900Daiwa Aoyama

12,20012,5003.2%

12,1003.0%

3.4%

12,100(Note) For Shinjuku Maynds Tower, the appraisal value and integrated value are the values pertaining to the Investment Corporation’s ownership interest, and the value indicated by the direct capitalization method and value
indicated by the DCF method are the values pertaining to the entire property.

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

47

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

Appraisal Value at
End of 31st Period

Summary of Appraisal Report (End of 31st Period)
Direct Capitalization Method
Value

DCF Method

Cap Rate

Value

Discount Rate

Terminal Cap Rate

Integrated Value

Shinsen Place

6,800

6,970

3.3%

6,720

3.2%

3.5%

4,730

Daiwa Shibuya Square

22,20022,4003.3%

21,9003.1%

3.5%

19,800Daiwa River Gate

34,30034,5003.7%

34,000

3.4%

3.8%

33,300Daiwa Hatchobori ekimae

3,290

3,390

3.4%

3,250

3.2%

3.6%

3,850

Daiwa Hatchobori ekimae West

1,970

2,030

3.5%

1,950

3.3%

3.7%

1,940

Daiwa Nishi-Shinjuku

17,40017,7003.3%

17,2003.1%

3.5%

16,800Kirin Nihonbashi Building

8,360

8,460

3.8%

8,260

3.5%

3.9%

7,540

Daiwa Higashi-Nihonbashi

7,150

7,300

3.8%

7,080

3.6%

4.0%

5,720

Daiwa Daikanyama

3,620

3,670

3.2%

3,600

3.2%

3.4%

3,360

Daiwa Shinjuku West

1,250

1,260

3.8%

1,240

3.6%

4.0%

978

Daiwa Kanda Mikuracho

1,850

1,850

3.8%

1,850

3.8%

4.0%

2,090

Daiwa Kanda East

5,770

5,890

3.4%

5,650

3.2%

3.6%

5,450

Daiwa Kandasudacho

2,820

2,890

3.6%

2,790

3.6%

3.8%

2,540

Daiwa Sasazuka Tower

16,00016,5003.8%

15,8003.6%

4.0%

15,200Daiwa Sasazuka

3,570

3,690

3.9%

3,520

3.7%

4.1%

2,740

Daiwa Harumi

12,70012,8003.6%

12,500

3.6%

3.8%

9,440

Daiwa Mita 2-Chome

4,020

4,090

3.7%

3,940

3.5%

3.9%

3,330

Nihonbashi Central Square

3,820

3,900

3.4%

3,730

3.2%

3.6%

1,910

Nihonbashi-Bakurocho 1-Chome Development Site（Land)(Note)

4,250

-

-

-

-

-

-

Daiwa Higashi-Ikebukuro

4,370

4,420

4.0%

4,350

3.8%

4.2%

2,390

Daiwa Shinagawa North

6,300

6,420

4.0%

6,170

3.8%

4.2%

4,680

Daiwa Kamiooka

2,900

2,930

4.5%

2,890

4.3%

4.7%

2,240

Daiwa Ogikubo Tower

23,20023,5003.6%

23,1003.4%

3.8%

14,600Daiwa Meguro Square

7,280

7,460

3.5%

7,200

3.3%

3.7%

6,930

Daiwa Ogikubo

4,820

4,900

3.9%

4,780

3.7%

4.1%

3,510

CONCURRED Yokohama

41,20042,3004.2%

40,7004.0%

4.4%

32,300Daiwa Shinagawa Gotenyama

2,880

2,930

3.9%

2,860

3.7%

4.1%

2,630

Daiwa Nakano-Sakaue

2,860

2,960

4.0%

2,810

3.7%

4.2%

2,540

13,300572,160

13,500664,380

3.7%-

13,200644,240

3.5%
-

3.9%
-

14,700488,618

Daiwa Kitahama
Total(Note) Appraisal value of Nihonbashi-Bakurocho 1-Chome Development Site is the income approach value (development leasing-type.)This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it
intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

48

Change in Unrealized Gain/Loss of Portfolio(Billion Yen)(%)

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

49

Portfolio Performance Summary (1)Fiscal Period Ended May 2021 (31th FP Results by Property)
Daiwa Ginza

Daiwa Ginza Annex

Daiwa Shibaura

Daiwa Minami Aoyama

Daiwa Sarugakucho

Daiwa A
Hamamatsucho

Daiwa Jingumae

Property Name

Acquisition Price (million yen)Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (%)
PML (%) (Note1)

Profits from property-related activities (Note 2)

Property Management Company
Number of operating days
(1) Property-related Revenues (thousand yen)
Rent (incl. common service fees)
Other Revenues (Note 3)(2) Property-related Expenses (thousand yen)

Administrative Expenses
Utility Charges
Property Management Fee
Tax and Public Due
Non-life Insurance Costs
Repair Expenses
Other Expenses(3) NOI (=(1)-(2)) (thousand yen)
Annualized NOI (thousand yen)

(Reference)

NOI Yield (Note 4)
Depreciation and amortization(thousand yen)
Proceeds from Restoration and Repair Work
(thousand yen)
Proceeds from Amortization of Leasehold andSecurity Deposits (thousand yen)

14,100
3,050
8,265
4,550
3,190
2,865
2,800
30th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP
12,731
12,672
2,733
2,729
8,064
8,038
4,405
4,390
3,116
3,099
2,712
2,700
2,671
2,661
17,70017,900
3,960
3,960
8,380
8,430
4,720
4,740
4,230
4,260
3,970
3,970
3,100
3,130
99.7
99.7
93.2
100.0
98.3
98.7
100.0
100.0
100.0
100.0
100.0
100.0
78.5
100.0
4.53
4.53
3.97
3.97
3.82
3.82
9.19
9.19
7.14
7.14
3.79
3.79
13.33
13.33
Best Property
Best Property
Xymax AlphaBest Property
Property Partners
Best Property
Best Property
183
182
183
182
183
182
183
182
183
182
183
182
183
182
427,704 435,354 107,138
99,290 268,586 252,072 133,064 131,412 - (Note5) - (Note5) 135,892 135,197
66,782
59,621
427,704 435,354 100,624
82,990 266,424 249,525 133,064 131,412 - (Note5) - (Note5) 135,892 135,197
66,782
59,6210
0
6,514
16,300
2,162
2,547
0
0 - (Note5) - (Note5)0000106,187
94,427
26,14249,543 135,957
67,16430,20924,876 - (Note5) - (Note5)
57,591
55,667
16,38735,594
18,233
16,5805,933
9,428
18,87817,744
4,065
3,853 - (Note5) - (Note5)
8,892
8,211
2,901
12,997
20,451
16,437
5,339
4,077
14,404
11,042
5,852
4,389 - (Note5) - (Note5)
6,782
5,853
3,047
2,285
6,029
6,921
1,453
1,273
4,003
3,820
1,849
2,120 - (Note5) - (Note5)
1,953
2,071
1,200
1,200
33,95233,946
11,273
11,26820,81620,80313,01912,938 - (Note5) - (Note5)
9,054
9,050
6,899
6,905
515
528
120
123
462
474
181
182 - (Note5) - (Note5)
215
226
101
99
10,514
3,522
2,022
22,437
77,391
13,2585,240
1,391 - (Note5) - (Note5)
1,292
852
2,231
12,09916,48916,4890934
020
00 - (Note5) - (Note5)
29,40029,4007
7
321,517 340,927
80,99549,746 132,629 184,908 102,855 106,535
97,51098,95878,301
79,53050,39524,026641,277 683,727 161,548
99,767 264,533 370,833 205,148 213,656 194,489 198,460 156,175 159,498 100,515
48,185
5.0%
5.4%
5.9%
3.7%
3.3%
4.6%
4.7%
4.9%
6.2%
6.4%
5.8%
5.9%
3.8%
1.8%
65,222

65,278

8,437

8,818

33,72937,292

14,496

14,917 - (Note5) - (Note5)

14,842

14,736

9,040

9,093

0

0

0

16,300

300

182

0

0 - (Note5) - (Note5)

0

0

0

0

0

0

0

0

0

0

0

0 - (Note5) - (Note5)

0

0

0

0

(Note 1) Sompo Risk Care Management Inc. has prepared the PML for the 31st fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2021).
(Note 2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(Note 3) Other Revenues includes Proceeds from Restoration and Repair Work and Proceeds from Amortization of Leasehold and Security Deposits.
(Note 4) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(Note 5) Not disclosed due to tenant's request.

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

50

Portfolio Performance Summary (2)Fiscal Period Ended May 2021 (31th FP Results by Property)
Daiwa Shibadaimon

Daiwa Misakicho

Daiwa Shimbashi 510(Note6)

Daiwa Tsukijiekimae

Daiwa Nihonbashi
Horidomecho

Daiwa Tsukishima

Daiwa Tsukiji

Property Name

Acquisition Price (million yen)Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (%)
PML (%) (Note1)

Profits from property-related activities (Note 2)

Property Management Company
Number of operating days
(1) Property-related Revenues (thousand yen)
Rent (incl. common service fees)
Other Revenues (Note 3)(2) Property-related Expenses (thousand yen)

Administrative Expenses
Utility Charges
Property Management Fee
Tax and Public Due
Non-life Insurance Costs
Repair Expenses
Other Expenses(3) NOI (=(1)-(2)) (thousand yen)
Annualized NOI (thousand yen)

(Reference)

NOI Yield (Note 4)
Depreciation and amortization(thousand yen)
Proceeds from Restoration and Repair Work
(thousand yen)
Proceeds from Amortization of Leasehold andSecurity Deposits (thousand yen)

2,578
2,346
2,080
1,560
1,240
7,840
2,520
30th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP
2,351
2,341
2,096
2,108
1,259
1,244
1,111
1,103
6,612
6,610
2,393
2,380
3,970
4,060
3,050
3,120
2,300
2,310
1,740
1,750
10,80010,800
3,010
3,030
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
3.72
3.72
4.24
4.24
4.23
4.23
4.98
4.98
4.87
4.87
4.68
4.68
Best Property
Best Property
Property Partners MS Building Support
Xymax Alpha
Property Partners
Best Property
183
182
183
182
164
183
182
183
182
183
182
183
182
103,697 100,989 - (Note5) - (Note5)
69,24014
69,90071,10951,04349,211 282,493 269,249
83,56187,640103,697 100,989 - (Note5) - (Note5)
69,24014
69,90071,10951,04349,211 282,493 269,249
83,56187,6400
0 - (Note5) - (Note5)
0
0
0
0
0
0
0
0
0
0
19,35638,347 - (Note5) - (Note5)
26,55914
16,451
14,09911,64016,18542,17760,82022,73019,596
4,273
6,336 - (Note5) - (Note5)
9,328
0
3,529
2,735
4,203
4,827
8,227
9,213
7,289
3,598
4,969
3,826 - (Note5) - (Note5)
4,586
0
3,622
3,262
1,964
1,790
9,553
8,035
3,610
3,719
1,557
1,504 - (Note5) - (Note5)
1,200
0
1,200
1,200
1,200
1,230
4,235
4,040
1,229
1,303
6,643
6,639 - (Note5) - (Note5)
10,568
14
5,272
5,268
4,102
4,098
15,09615,096
6,999
6,995
145
146 - (Note5) - (Note5)
131
0
118
118
75
75
348
347
157
157
1,767
19,894 - (Note5) - (Note5)
744
0
2,699
1,496
94
4,164
4,715
24,086
3,443
3,822
0
0 - (Note5) - (Note5)
0
0
9
18
0
0
0
0
0
0
84,34162,642
63,64040,11042,681053,44957,01039,402
33,025 240,316 208,429
60,831
68,044
168,221 125,628 126,932
80,441- 106,607 114,334
78,58966,233 479,319 418,003 121,329 136,463
7.2%
5.4%
6.1%
3.8%
8.5%
9.2%
7.1%
6.0%
7.2%
6.3%
5.1%
5.7%
10,60910,567 - (Note5) - (Note5)

8,882

0

13,54814,138

8,031

8,031

55,72656,193

15,477

15,50500 - (Note5) - (Note5)

0

0

0

0

0

0

0

0

0

0

0

0 - (Note5) - (Note5)

0

0

0

0

0

0

0

0

0

0

(Note 1) Sompo Risk Care Management Inc. has prepared the PML for the 31st fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2021).
(Note 2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(Note 3) Other Revenues includes Proceeds from Restoration and Repair Work and Proceeds from Amortization of Leasehold and Security Deposits.
(Note 4) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(Note 5) Not disclosed due to tenant's request.
(Note 6) Property sold in 30th FP

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

51

Portfolio Performance Summary (3)Fiscal Period Ended May 2021 (31th FP Results by Property)(Note 1) Sompo Risk Care Management Inc. has prepared the PML for the 31st fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2021).
(Note 2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(Note 3) Other Revenues includes Proceeds from Restoration and Repair Work and Proceeds from Amortization of Leasehold and Security Deposits.
(Note 4) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(Note 5) Property sold in 31st FP(Note 6) Property sold in 29th FP

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

52

Portfolio Performance Summary (4)Fiscal Period Ended May 2021 (31th FP Results by Property)
Daiwa Nishishimbashi

Daiwa Kayabacho
Building

Daiwa

Daiwa Nihonbashi

E SPACE TOWER

Jinbocho 3-chome

shinyon curumu

Hongokucho

Daiwa Akasaka

Property Name

Acquisition Price (million yen)Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (%)
PML (%) (Note1)

Profits from property-related activities (Note 2)

Property Management Company
Number of operating days
(1) Property-related Revenues (thousand yen)
Rent (incl. common service fees)
Other Revenues (Note 3)(2) Property-related Expenses (thousand yen)

Administrative Expenses
Utility Charges
Property Management Fee
Tax and Public Due
Non-life Insurance Costs
Repair Expenses
Other Expenses(3) NOI (=(1)-(2)) (thousand yen)
Annualized NOI (thousand yen)

(Reference)

NOI Yield (Note 4)
Depreciation and amortization(thousand yen)
Proceeds from Restoration and Repair Work
(thousand yen)
Proceeds from Amortization of Leasehold andSecurity Deposits (thousand yen)

5,000
5,600
3,550
24,000
1,721
9,650
9,200
30th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP
4,645
4,608
5,125
5,097
3,275
3,255
23,46623,421
1,529
1,515
9,530
9,509
10,076
10,080
7,360
7,370
8,230
8,230
5,250
5,270
36,60036,6002,690
2,690
16,50016,50015,50015,500
100.0
100.0
100.0
100.0
100.0
88.1
92.8
100.0
100.0
100.0
96.7
93.3
100.0
96.7
3.76
3.76
4.50
4.50
5.33
5.33
3.11
3.11
3.80
3.80
4.44
4.44
7.14
7.14
Xymax Alpha
Property Partners Tokyo Capital Management
Xymax AlphaMS Building Support MS Building Support
Xymax Alpha
183
182
183
182
183
182
183
182
183
182
183
182
183
182
188,554 186,232 - (Note5) - (Note5) 124,456 110,740 810,936 795,067
75,78375,419 388,428 355,783 368,456 378,112
188,554 186,232 - (Note5) - (Note5) 124,456 110,740 810,936 786,067
75,78375,419 388,428 355,783 368,456 360,826
0
0 - (Note5) - (Note5)
0
0
0
9,000
0
0
0
0
0
17,286
77,26843,708 - (Note5) - (Note5)
26,38522,492 198,938 172,649
11,283
10,413 100,780
86,625 179,905 101,540
13,036
12,622 - (Note5) - (Note5)
5,485
5,427
37,04563,9702,328
2,257
31,80823,86025,49522,991
9,304
7,295 - (Note5) - (Note5)
6,477
4,723
38,10230,1242,571
2,252
19,075
14,374
18,43814,3482,508
2,481 - (Note5) - (Note5)
1,866
1,626
8,084
7,924
1,200
1,200
3,860
3,807
4,005
4,143
16,234
16,223 - (Note5) - (Note5)
9,934
9,930
62,30862,312
4,558
4,554
37,98637,98435,56035,530291
290 - (Note5) - (Note5)
150
150
778
777
92
93
402
401
517
517
35,887
4,795 - (Note5) - (Note5)
2,470
634
52,546
7,423
532
56
7,647
6,197
95,887
18,961
6
0 - (Note5) - (Note5)
0
0
72
116
0
0
0
0
0
5,047
111,285 142,524 145,807 152,670
98,071
88,247 611,997 622,417
64,50065,006 287,647 269,158 188,551 276,571
221,963 285,831 290,817 306,179 195,606 176,980 1,220,650 1,248,254 128,648 130,369 573,723 539,796 376,072 554,662
4.8%
6.2%
5.7%
6.0%
6.0%
5.4%
5.2%
5.3%
8.4%
8.6%
6.0%
5.7%
3.7%
5.5%
36,34937,766 - (Note5) - (Note5)

19,87919,87968,49972,164

13,38813,41837,28437,79058,53358,78200 - (Note5) - (Note5)

0

0

0

9,000

0

0

0

0

0

7,500

0

0 - (Note5) - (Note5)

0

0

0

0

0

0

0

0

0

0

(Note 1) Sompo Risk Care Management Inc. has prepared the PML for the 31st fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2021).
(Note 2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(Note 3) Other Revenues includes Proceeds from Restoration and Repair Work and Proceeds from Amortization of Leasehold and Security Deposits.
(Note 4) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(Note 5) Not disclosed due to tenant's request.

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

53

Portfolio Performance Summary (5)Fiscal Period Ended May 2021 (31th FP Results by Property)
Daiwa Shibuya
Miyamasuzaka

Daiwa Azabu Terrace Daiwa Ebisu 4-chome

LAQUAS Higashi
Shinjuku

Daiwa Aoyama

Shinsen Place

Daiwa Shibuya
SquareProperty Name

Acquisition Price (million yen)Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (%)
PML (%) (Note1)

Profits from property-related activities (Note 2)

Property Management Company
Number of operating days
(1) Property-related Revenues (thousand yen)
Rent (incl. common service fees)
Other Revenues (Note 3)(2) Property-related Expenses (thousand yen)

Administrative Expenses
Utility Charges
Property Management Fee
Tax and Public Due
Non-life Insurance Costs
Repair Expenses
Other Expenses(3) NOI (=(1)-(2)) (thousand yen)
Annualized NOI (thousand yen)

(Reference)

NOI Yield (Note 4)
Depreciation and amortization(thousand yen)
Proceeds from Restoration and Repair Work
(thousand yen)
Proceeds from Amortization of Leasehold andSecurity Deposits (thousand yen)

7,000
14,000
4,135
8,450
9,800
4,800
16,00030th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP
7,296
7,271
13,885
13,833
4,182
4,167
8,345
8,316
10,003
9,984
4,909
4,897
15,827
15,79812,90013,10018,20018,3006,440
6,440
11,30011,30012,60012,2006,800
6,800
22,00022,200
100.0
88.1
100.0
100.0
100.0
100.0
100.0
100.0
85.9
100.0
100.0
100.0
100.0
100.0
5.64
5.64
2.67
2.67
2.44
2.44
4.46
4.46
4.42
4.42
6.21
6.21
1.61
1.61
Best Property
MS Building Support ITOCHU Urban Community MS Building Support MS Building Support
Xymax Alpha
Tokyo Capital Management
183
182
183
182
183
182
183
182
183
182
183
182
183
182
334,523 323,070 504,888 469,657 - (Note5) - (Note5) 233,522 232,075 248,669 236,779 - (Note5) - (Note5) 483,125 481,432
334,523 323,070 489,888 469,337 - (Note5) - (Note5) 233,522 232,075 248,669 236,779 - (Note5) - (Note5) 483,125 481,432
0
0
15,000320 - (Note5) - (Note5)0000 - (Note5) - (Note5)0066,77653,202 131,217 100,111 - (Note5) - (Note5)
49,962
46,04264,263
41,961 - (Note5) - (Note5)
74,56362,511
19,911
12,78427,50927,554 - (Note5) - (Note5)
9,468
9,347
9,774
17,613 - (Note5) - (Note5)
15,612
10,814
10,902
9,074
37,66930,883 - (Note5) - (Note5)
13,71010,474
5,902
4,554 - (Note5) - (Note5)
20,818
16,105
4,127
3,795
4,369
4,275 - (Note5) - (Note5)
1,200
1,200
2,953
2,847 - (Note5) - (Note5)
5,763
5,114
23,712
23,70733,74433,740 - (Note5) - (Note5)
21,157
21,157
15,294
15,295 - (Note5) - (Note5)
29,062
26,930376
378
730
729 - (Note5) - (Note5)
358
367
183
188 - (Note5) - (Note5)
445
458
7,722
3,426
27,0952,928 - (Note5) - (Note5)
3,854
3,336
30,154
1,462 - (Note5) - (Note5)
2,861
3,088
24
36
99
0 - (Note5) - (Note5)
213
158
0
0 - (Note5) - (Note5)00267,747 269,867 373,670 369,545 140,175 100,993 183,560 186,033 184,406 194,818 114,295 125,393 408,561 418,920
534,031 541,218 745,300 741,121 279,584 202,542 366,118 373,089 367,805 390,707 227,966 251,475 814,889 840,142
7.3%
7.4%
5.4%
5.4%
6.7%
4.9%
4.4%
4.5%
3.7%
3.9%
4.6%
5.1%
5.1%
5.3%
27,46327,51952,42954,023 - (Note5) - (Note5)

33,58633,73918,106

19,449 - (Note5) - (Note5)

33,47931,6530

0

15,0000 - (Note5) - (Note5)

0

0

0

0 - (Note5) - (Note5)

0

0

0

0

0

0 - (Note5) - (Note5)

0

0

0

0 - (Note5) - (Note5)00(Note 1) Sompo Risk Care Management Inc. has prepared the PML for the 31st fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2021).
(Note 2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(Note 3) Other Revenues includes Proceeds from Restoration and Repair Work and Proceeds from Amortization of Leasehold and Security Deposits.
(Note 4) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(Note 5) Not disclosed due to tenant's request.

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

54

Portfolio Performance Summary (6)Fiscal Period Ended May 2021 (31th FP Results by Property)
Daiwa Hatchobori

Daiwa River Gate

Daiwa Hatchobori

ekimaeDaiwa Nishi-Shinjuku

ekimae West

Kirin Nihonbashi
Building

Daiwa HigashiNihonbashi

Daiwa Daikanyama

Property Name

Acquisition Price (million yen)Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (%)
PML (%) (Note1)

Profits from property-related activities (Note 2)

Property Management Company
Number of operating days
(1) Property-related Revenues (thousand yen)
Rent (incl. common service fees)
Other Revenues (Note 3)(2) Property-related Expenses (thousand yen)

Administrative Expenses
Utility Charges
Property Management Fee
Tax and Public Due
Non-life Insurance Costs
Repair Expenses
Other Expenses(3) NOI (=(1)-(2)) (thousand yen)
Annualized NOI (thousand yen)

(Reference)

NOI Yield (Note 4)
Depreciation and amortization(thousand yen)
Proceeds from Restoration and Repair Work
(thousand yen)
Proceeds from Amortization of Leasehold andSecurity Deposits (thousand yen)

28,0002,871
1,647
13,710
8,180
6,370
2,280
30th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP
27,56927,487
2,894
2,884
1,704
1,702
13,93813,919
8,332
8,312
6,288
6,261
2,365
2,360
33,80034,300
3,320
3,290
1,970
1,970
17,40017,400
8,350
8,360
7,150
7,150
3,590
3,620
96.4
83.4
100.0
100.0
95.8
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
1.76
1.76
5.89
5.89
7.03
7.03
4.32
4.32
5.76
5.76
4.37
4.37
6.21
6.21
Best Property
ITOCHU Urban Community
ITOCHU Urban Community MS Building Support Tokyo Capital Management ITOCHU Urban Community
Xymax Alpha
183
182
183
182
183
182
183
182
183
182
183
182
183
182
1,078,020 963,067
86,70685,38750,97348,923 389,559 407,699 - (Note5) - (Note5) 180,879 177,395 - (Note5) - (Note5)
1,074,746 958,808
86,70685,38750,97348,923 389,559 407,699 - (Note5) - (Note5) 180,879 177,395 - (Note5) - (Note5)
3,273
4,259
0
0
0
0
0
0 - (Note5) - (Note5)00 - (Note5) - (Note5)349,205 442,115
23,811
25,902
38,346
17,74577,41170,702 - (Note5) - (Note5)
31,12832,248 - (Note5) - (Note5)
71,532
72,719
5,920
7,745
3,674
4,217
15,223
13,719 - (Note5) - (Note5)
5,727
8,610 - (Note5) - (Note5)
113,230
98,159
5,920
4,645
2,539
2,263
15,56012,668 - (Note5) - (Note5)
8,947
7,751 - (Note5) - (Note5)
10,700
9,436
1,214
1,200
1,200
1,200
2,676
3,245 - (Note5) - (Note5)
1,796
1,784 - (Note5) - (Note5)
104,490 104,485
9,300
9,300
4,266
4,265
39,29839,294 - (Note5) - (Note5)
11,696
11,696 - (Note5) - (Note5)
2,058
2,056
151
156
78
81
363
372 - (Note5) - (Note5)
242
242 - (Note5) - (Note5)
47,193 155,137
1,305
2,854
26,537
5,718
4,289
1,398 - (Note5) - (Note5)
2,688
2,162 - (Note5) - (Note5)
0
120
0
0
50
0
0
3 - (Note5) - (Note5)30
0 - (Note5) - (Note5)
728,814 520,951
62,89559,485
12,627
31,178 312,148 336,997 160,842 161,495 149,751 145,146
66,34856,221
25,18562,528 622,591 675,846 320,805 323,877 298,683 291,090 132,334 112,751
1,453,646 1,044,765 125,446 119,297
5.3%
3.8%
4.3%
4.1%
1.5%
3.7%
4.5%
4.9%
3.9%
3.9%
4.7%
4.6%
5.6%
4.8%
135,504

136,873

10,42010,430

4,822

4,851

21,015

20,587 - (Note5) - (Note5)

27,85627,937 - (Note5) - (Note5)

434

458

0

0

0

0

0

0 - (Note5) - (Note5)00 - (Note5) - (Note5)

0

0

0

0

0

0

0

0 - (Note5) - (Note5)00 - (Note5) - (Note5)(Note 1) Sompo Risk Care Management Inc. has prepared the PML for the 31st fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2021).
(Note 2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(Note 3) Other Revenues includes Proceeds from Restoration and Repair Work and Proceeds from Amortization of Leasehold and Security Deposits.
(Note 4) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(Note 5) Not disclosed due to tenant's request.

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

55

Portfolio Performance Summary (7)Fiscal Period Ended May 2021 (31th FP Results by Property)
Daiwa Shinjuku West

Daiwa Kanda
Mikuracho

Daiwa Kanda East

Daiwa Kandasudacho

Daiwa Sasazuka
Tower

Daiwa Sasazuka

Daiwa Harumi

Property Name

Acquisition Price (million yen)Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (%)
PML (%) (Note1)

Profits from property-related activities (Note 2)

Property Management Company
Number of operating days
(1) Property-related Revenues (thousand yen)
Rent (incl. common service fees)
Other Revenues (Note 3)(2) Property-related Expenses (thousand yen)

Administrative Expenses
Utility Charges
Property Management Fee
Tax and Public Due
Non-life Insurance Costs
Repair Expenses
Other Expenses(3) NOI (=(1)-(2)) (thousand yen)
Annualized NOI (thousand yen)

(Reference)

NOI Yield (Note 4)
Depreciation and amortization(thousand yen)
Proceeds from Restoration and Repair Work
(thousand yen)
Proceeds from Amortization of Leasehold andSecurity Deposits (thousand yen)

942
1,592
4,200
2,295
15,5003,000
11,20030th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP
988
985
1,616
1,612
4,232
4,217
2,377
2,370
15,95915,922
3,171
3,170
11,233
11,208
1,250
1,250
1,820
1,850
5,700
5,770
2,820
2,820
16,00016,0003,570
3,570
12,60012,700
100.0
100.0
100.0
100.0
100.0
100.0
97.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
8.28
8.28
6.01
6.01
3.86
3.86
5.12
5.12
1.52
1.52
5.90
5.90
4.30
4.30
Best Property
ITOCHU Urban Community MS Building Support Jones Lang LaSalleBest Property
Best Property
ITOCHU Urban Community
183
182
183
182
183
182
183
182
183
182
183
182
183
182
38,754
38,59653,504
51,184 143,884 144,126
69,33467,561 460,713 389,554
93,12091,693 311,082 344,561
38,754
38,59453,504
51,184 143,884 144,126
68,34367,561 460,713 389,554
93,12088,504 311,082 344,561
0
2
0
0
0
0
990
0
0
0
0
3,189
0
0
10,068
10,72621,157
11,10430,61130,315
20,377
14,897 216,007 279,562
39,66730,720 125,301 115,291
2,239
2,929
4,284
4,004
9,797
9,679
7,689
4,803
60,90960,733
12,677
10,202
28,72738,323
2,469
2,055
2,403
1,943
7,908
7,154
3,220
2,719
49,92045,616
9,104
8,004
24,934
17,833
1,200
1,200
1,200
1,200
1,438
1,441
1,200
1,200
4,163
3,491
1,392
1,317
3,073
3,417
3,114
3,114
3,547
3,543
10,44010,4374,615
4,610
55,53255,538
8,954
9,283
27,34627,349
49
49
66
66
178
179
84
84
933
935
171
171
533
532
995
1,377
9,655
346
847
1,423
3,556
1,478
44,547 113,247
7,366
1,741
20,145
7,407
0
0
0
0
0
0
11
0
0
0
0
0
20,53820,426
28,68527,86932,34640,079 113,272 113,810
48,956
52,664 244,705 109,992
53,45360,973 185,781 229,269
57,21455,89264,51680,380 225,926 228,247
97,645 105,617 488,074 220,588 106,614 122,281 370,547 459,798
5.8%
5.7%
4.0%
5.0%
5.3%
5.4%
4.1%
4.5%
3.1%
1.4%
3.4%
3.9%
3.3%
4.1%
2,223

2,228

4,579

5,276

18,486

18,525

6,850

6,945

61,61860,106

12,762

12,55635,44735,782

0

0

0

0

0

0

980

0

0

0

0

0

0

0

0

2

0

0

0

0

10

0

0

0

0

0

0

0

(Note 1) Sompo Risk Care Management Inc. has prepared the PML for the 31st fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2021).
(Note 2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(Note 3) Other Revenues includes Proceeds from Restoration and Repair Work and Proceeds from Amortization of Leasehold and Security Deposits.
(Note 4) 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 Act or any regulation of similar nature, nor is it
intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

56

Portfolio Performance Summary (8)Fiscal Period Ended May 2021 (31th FP Results by Property)
Daiwa Mita 2-Chome

Nihonbashi-Bakurocho 1-

Nihonbashi Central

Daiwa HigashiIkebukuro

Chome Development Site

Square (Note 6)(land)(Note7)

Daiwa Shinagawa

Daiwa Kamiooka

North

Daiwa Ogikubo Tower

Property Name

Acquisition Price (million yen)Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (%)
PML (%) (Note1)

Profits from property-related activities (Note 2)

Property Management Company
Number of operating days
(1) Property-related Revenues (thousand yen)
Rent (incl. common service fees)
Other Revenues (Note 3)(2) Property-related Expenses (thousand yen)

Administrative Expenses
Utility Charges
Property Management Fee
Tax and Public Due
Non-life Insurance Costs
Repair Expenses
Other Expenses(3) NOI (=(1)-(2)) (thousand yen)
Annualized NOI (thousand yen)

(Reference)

NOI Yield (Note 4)
Depreciation and amortization(thousand yen)
Proceeds from Restoration and Repair Work
(thousand yen)
Proceeds from Amortization of Leasehold andSecurity Deposits (thousand yen)

2,635
3,521
3,775
2,958
7,710
2,000
15,22030th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP 30th FP 31th FP
1,587
1,583
3,622
3,614
3,813
3,803
2,569
2,551
7,024
6,989
1,823
1,805
16,328
16,213
3,990
4,020
3,800
3,820
4,010
4,250
4,360
4,370
6,290
6,300
2,900
2,900
23,20023,200
100.0
100.0
100.0
100.0
100.0
100.0
100.0
95.2
100.0
100.0
100.0
94.2
3.21
3.21
5.21
5.21
3.55
3.55
7.19
7.19
6.29
6.29
1.18
1.18
Best Property
Xymax AlphaBest Property
Best Property
Xymax Alpha
Xymax Alpha
183
182
183
182
18
182
183
182
183
182
183
182
183
182
- (Note5) - (Note5)
90,72290,36100 138,758 142,583 205,028 173,059
93,33892,673 662,323 682,124- (Note5) - (Note5)
90,72290,36100 138,758 142,583 204,093 172,109
93,33892,673 662,323 601,358- (Note5) - (Note5)
0
0
0
0
0
0
935
950
0
0
0
80,766- (Note5) - (Note5)
10,382
11,0800031,54230,83855,16960,646
19,267
19,094 181,202 161,637- (Note5) - (Note5)
4,622
4,807
0
0
8,930
8,995
20,72824,8794,469
4,282
45,14951,939- (Note5) - (Note5)
4,457
3,850
0
0
10,182
9,426
11,396
8,741
6,531
5,736
56,112
47,295- (Note5) - (Note5)
1,197
1,222
0
0
2,099
2,147
2,977
2,574
1,305
1,205
7,289
7,342
- (Note5) - (Note5)
7
11
0
0
8,540
8,535
18,832
18,8286,365
6,361
44,982
44,976- (Note5) - (Note5)
88
91
0
0
258
274
395
406
142
142
1,040
1,038
- (Note5) - (Note5)
0
1,096
0
0
1,532
1,459
839
5,215
452
1,365
26,2488,924- (Note5) - (Note5)
8
0
0
0
0
0
0
0
0
0
380
120
79,621
67,06580,34079,2800
0 107,216 111,744 149,859 112,413
74,07173,578 481,120 520,487
158,808 134,499 160,241 158,997
0
0 213,846 224,103 298,899 225,443 147,738 147,561 959,612 1,043,834
10.0%
8.5%
4.4%
4.4%
0.0%
0.0%
8.3%
8.8%
4.3%
3.2%
8.1%
8.2%
5.9%
6.4%
- (Note5) - (Note5)

8,414

8,416

0

0

24,94525,03336,68536,792

18,122

18,144130,809131,344- (Note5) - (Note5)

0

0

0

0

0

0

0

0

0

0

0

0

- (Note5) - (Note5)

0

0

0

0

0

0

0

0

0

0

0

0

(Note 1) Sompo Risk Care Management Inc. has prepared the PML for the 31st fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2021).
(Note 2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(Note 3) Other Revenues includes Proceeds from Restoration and Repair Work and Proceeds from Amortization of Leasehold and Security Deposits.
(Note 4) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(Note 5) Not disclosed due to tenant's request.
(Note 6) Of the rent revenue, the ratio of the Investment Corporation’s ownership interest for revenues (rent, etc.) pertaining to the master lease business is 60.99% based on the agreement, etc. among the compartmentalized co-owners.
The occupancy rate indicates the figure for the area subject to the master lease business.
(Note 7) We are planning the development of office buildings on the property. Theview isrendering preparedbased onthetheexpectedbuilding
after development
and may differ
fromtheregulation
actual building.
Thisexternal
document
isan
notarchitectural
material disclosed
in compliance
with
Financial
Instruments
and Exchange
Act oranyof similar nature, nor is it

intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

57

Portfolio Performance Summary (9)Fiscal Period Ended May 2021 (31th FP Results by Property)(Note 1) Sompo Risk Care Management Inc. has prepared the PML for the 31st fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2021).
(Note 2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(Note 3) Other Revenues includes Proceeds from Restoration and Repair Work and Proceeds from Amortization of Leasehold and Security Deposits.
(Note 4) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(Note 5) Acquisition price, annualized NOI and NOI yield for the 30th FP do not include Daiwa Jinbocho which was sold in the 29th FP and Daiwa Shimbashi 510 which was sold in the 30th FP. Acquisition price, annualized NOI, and NOI yield for the
31st FP do not include Daiwa Jinbocho which was sold in the 29th FP, Daiwa Shimbashi 510 which was sold in the 30th FP and Daiwa Kyobashi which was sold in the 31th FP. Annualized NOI and NOI yield for the 30th FP and the 31st FP
do not include Nihonbashi-Bakurocho 1-Chome Development Site (land).
The portfolio total of (2) Property-related Expenses in the table does notincludeexpensesrelatedto an investment
This
document
is notmaterial
disclosedcorporation.
in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it

intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

58

【Reference】
Wear-Housing by Sponsor Group and Daiwa Securities Realty
 Based on the sponsor support contract with Daiwa Securities Group Inc. and basic contract regarding wearhousing with Daiwa Securities Facilities Co. Ltd., the asset management company of the Investment Corporation
is provided with the wear-housing functions for REITs
 Daiwa Office Investment Corporation acquired 2 properties (52.1 billion yen) in properties during through thewear-housing Daiwa Securities Realty Co. Ltd. was established on April 1, 2021 for the purpose of further strengthening thewear-housing function for REITs【Example of the property acquisition by sponsor support(Daiwa Office Investment Corporation)】

Name
Price

Daiwa Azabu Terrace
14,000 million

Date

Name

July 4, 2014

 The wear-housing functions that Daiwa Securities Group Inc. and Daiwa
Securities Facilities Co. Ltd. have been responsible for have beentransferred to Daiwa Securities Realty Co. Ltd to speed up decisionmaking and ensure mobility.
 In order to meet the diversifying needs of real estate investment bycustomers, Daiwa Securities Realty plans and organizes real estate
investment products in other product forms than REIT.

Price

Company
Name
Address
Established
Amount of
CapitalCEO
Officer
Shareholder

CONCURRED Yokohama
38,100 million

Date

January 11, 2018

Daiwa Securities Realty Co. Ltd.
6-2-1 Ginza, Chuo-ku, Tokyo
April 1, 2021
500 million yen
Akira Yamanouchi
5（Director: 2, Director (non-executive): 2,
Auditor (non-executive): 1）
Daiwa Securities Group Inc.（100%）

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

59

Overview of Asset Management Company (1)Company Overview

Directors(As of July 1, 2021)

Company Name

Daiwa Real Estate Asset Management Co., Ltd.

Address

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

Established

October 21, 2004

Paid-in Capital

200 million yen

Representative Director

Toshio Fukushima
Executive directors: 5
Executive auditors: 1
Non-executive directors: 1
Non-executive auditors: 2

Board of Directors

9No. of Employees

128 (excluding dispatched employees)

Registered Financial
Instruments Firm

Registration No. 355 (Financial Instruments),
Director-General, Kanto Local Finance Bureau(Kinsho)

Building Lots and Buildings
Transaction Business License

License No. (4)-83920, Governor of Tokyo

Discretionary Agent for Real
Estate Transaction Approval

License No. 34, Minister of Land, Infrastructure,
Transport and Tourism

Association Membership

Member of The Investment Trusts Association,
Japan
Member of Japan Investment Advisers
Association
Member of Type II Financial Instruments Firms
Association(As of July 1, 2021)
President and Representative Director

Toshio Fukushima

Vice President and Representative Director

Yuji Shinotsuka

Vice President and Representative Director

Yoshiki Nishigaki

Director

Hajime Imbe

Director

Tatsui Yanagisawa

Director (non-executive)

Satoru Shibasaki

AuditorYutaka Nishio

Auditor (non-executive)

Hiromasa Kawashima

Auditor (non-executive)

Toshiyuki Kato

REITs That Entrust Asset Management
to the Asset Management Company(As of July 1, 2021)
Daiwa Office
Investment Corporation

Listed REIT focusing on office buildings
Asset size: approximately 461.4 billion yen (59 properties)

Daiwa Securities Living
Investment Corporation

Listed residential REIT
Asset size: approximately 328.2 billion yen (230 properties)

Daiwa Residential Private
Investment Corporation

Private REIT focusing on residential properties
Asset size: approximately 146.3 billion yen (89 properties)

Daiwa Hotel Private
Investment Corporation

Private REIT focusing on hotels
Asset size: approximately 54.2 billion yen (13 properties)

Daiwa Securities Logistics
Private Investment
Corporation

Private REIT focusing on logistics facilities
Asset size: approximately 33.5 billion yen (6 properties)

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

60

Overview of Asset Management Company (2)Organization Chart
Shareholders’ Meeting
Corporate Auditors
Board of Directors
Compliance Committee

Investment Committee *Sustainability Promotion
Committee

President andRepresentative Director* Set up separately for each investment corporation

Sustainability Promotion OfficeInternal Control OfficeAcquisition and AssetManagement Division
DOI Investment
Management
Department

Origination
Department

Private REIT
Investment
Management
Department

DLI Investment
Management
Department

Compliance Officer

Private Fund Division

Investment Planning
Department

Construction
Management
Department

Private FundManagement
Department

Corporate Division

REIT Planning
Department

Finance
Department

Administration
Department

Sourcing Team

DOI
Investment TeamDLI
Investment TeamDRP
Investment Team

Infrastructure
Team

Finance Team

Development TeamDOIManagement TeamDLIManagement TeamDHP
Investment TeamManagement Team

Accounting TeamDLI
Portfolio System
Team

DLP
Investment Team

Overseas BusinessPreparation TeamManagement Team

Corporate Planning
Department

Compliance & Risk
Management
Department

DRP
Management TeamDHP
Management TeamDLPManagement Team（As of July 1, 2021）
This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it
intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

61

MEMO

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

62