This document was prepared based on statements made at the earnings announcement meeting held on January 21, 2016
and should not be construed as a solicitation for investment in the Investment Corporation. Moreover, please understand that
we shall not be held liable for omissions and errors of data and phrases used in this document. Furthermore, opinions andforecasts indicated in this document are the Investment Corporation’s judgments as of the time this document was prepared.
No assurances or promises can be given regarding the accuracy and certainty of this information, and it can be modified
without prior notice.

Main Q&A at the 20th Fiscal Period Earnings Announcement
Date and Time: 15:30-16:30, January 21, 2016 (Thursday)
Presenter: Akira Yamanouchi / President and Representative Director
Daiwa Real Estate Asset Management Co., Ltd.
*Questions are presented in order of sequence.

Q1. A relatively large tenant is scheduled to move out during the 22nd Fiscal Period. Can anincrease in rent be expected through tenant replacement?
(Answer)
We believe there is room for an increase in rent. However, in this particular case, the current tenant’s
rent is not markedly low so we do not expect a large increase in rent for the time being.

Q2. Is the reason that the expected amount of increase in rent revenue through the elimination offree rent is smaller than the previous fiscal period since free rent periods are shortened?
(Answer)
The main reason is not that free rent periods are shortened. Rather, it is that the occupancy rateincreased and the number of new leases and cancellations decreased so the portion of free rent
being granted has decreased. We plan to continue strategically offering free rent periods in order torealize increased rents.

Q3. You say that you will acquire properties while considering the conditions of the capital
markets. Are acquisitions by J-REITs slowing down overall given the recent decline in stock
prices?
(Answer)Presently, no effects on property prices are seen from the decline in stock prices in the beginning ofthe year. What we mean by considering the capital markets is that each time we consider a property
for acquisition we deliberate and discuss within the company whether our investors will be happy withthe acquisition. While being sufficiently aware that the stock market is unstable, we will consider anacquisition if we look at the property in the long term and deem it positive, just as we have up till now.

Q4. Given the current real estate market as well as your experience, what are the prospects for theproperty acquisition environment six months to a year from now?
1

(Answer)
As long as the stock market does not fluctuate even more, no changes are expected in the playersthat would mainly be competitors in acquiring properties (listed REITs, private REITs, overseas funds,etc.) so I don’t think there will be any significant changes in property prices. Regarding the view ofrents which are the basis for property prices, increases in rents can be expected for some areas like
Shibuya where the vacancy rate is low, but when you consider other areas as well, I think that wehave not yet arrived at a place where overall property prices have incorporated a significant increasein the rent level.

Q5. Do you think that the demand for office buildings will continue to be strong?
(Answer)
I feel that the demand from tenants has not changed in particular, even since the beginning of theyear when stock prices significantly decreased. No changes in demand for office buildings were felt
during the previous year’s China shock either.

Q6.

The demand from tenants to increase floor space is strong while the occupancy rate isalready high. Isn’t there a risk that you won’t be able to respond to such demand fromtenants?
(Answer)
There are such risks, but currently we haven’t found that many tenants are considering relocation inorder to increase their floor space. We are endeavoring to respond to the demand of tenants toincrease floor space by introducing other properties in our portfolio that have vacancies and such.

Q7.

How do you see yields when acquiring properties? Until now Daiwa Office Investment
Corporation had a lower portfolio yield and so properties with a higher level of yields wereacquired. However, it seems that it would become difficult to acquire properties with yields
higher than the portfolio if the portfolio yield becomes higher due to internal growth. What are
your thoughts on this?
(Answer)
From an investor’s perspective, I think that the key points in assessing yields for property acquisitions
are dividends, NAV, investment unit price, implied cap rates and such. We also assume public
offerings for acquiring properties and in that case we consider whether the acquisition is favorable or
not to our investors as an evaluation criteria. Specifically, for the time being we consider acquisitions
even for properties with yields at the time of acquisition in the latter 3% level if yields of more than 4%
can be realized in the medium term through asset management.

Q8.

The internal growth is higher than the market level but I have recently heard that fluidity ofhuman resources is increasing in the real estate management industry. Do you have any
measures to maintain your asset management team which has succeeded in implementing
favorable internal growth?
2(Answer)
Up to now, we have employed excellent personnel with ample experience in office buildings
management. We believe that it is very important to maintain an excellent asset management teamand are currently also putting efforts into the nurturing of more junior staff by our senior members.

Q9. How much of an increase in rent will you attain with the tenant replacements at Shinjuku
Maynds Tower and E SPACE TOWER?
(Answer)
We cannot give you the specifics on rent as we have confidentiality with our tenants. As a basic
image, the new rents at both properties are about 10% higher than rents that were considered highabout one or two years ago.

Q10. Is there any possibility that you will sell properties? Also, have there been any inquiries foracquiring your properties?
(Answer)
We will continue to implement asset replacements in our portfolio. Currently we continue to get
inquiries for property acquisitions even if we don’t propose sales. We may consider selling ourproperties if good prices are presented but we are in no rush to sell our properties.

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