July 14, 2011

Earnings Announcement
for the 11th Fiscal Period(Fiscal Period Ended May 2011)This document is provided for informational purposes and should not be construed as an offer orsolicitation of an offer to buy or sell any specific product, including investment units. We advise
you to inquire with each securities company with regards to the purchase of Daiwa Office
Investment Corporation’s investment units.
This document is not intended to provide information meeting the requirements of Japan’s new
Financial Instruments and Exchange Law or Investment Trust and Investment Corporation Law, orby the associated cabinet orders, cabinet office ordinances, or rules, or by the rules governingcompanies listed on the Tokyo Stock Exchange, or any other applicable rules, nor is it adisclosure document or statement of financial performance prepared in accordance with theprovisions of any of the foregoing.
This document contains forward-looking statements. However, these forward-looking statements
are based on certain assumptions and judgments made using currently available information, andthere are a number of known and unknown risks and uncertainties. These forward-looking
statements are not a guarantee of future performance or management results, and actual results
may differ materially from any explicit or implicit forecasts contained herein.
Although the information contained in this document is the best available at the time of
publication, no assurances can be given regarding the accuracy and certainty of this information.
The content of this document can be modified or withdrawn without prior notice.

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

1

Contents
Section 1

Section 4

Performance Highlights and Forecasts

Financial Strategy

 11th Fiscal Period Topics and 12th & 13th Forecasts

4

 Highlights of the 11th Fiscal Period

 Status of Interest-bearing Liabilities27

5

 Highlights of Forecasts for the 12th and 13th Fiscal Period

 Efforts for uncollateralized loans30

6 Unitholders

31 Issue and Activities of the Investment Corporation7

 Upside Potential32 Medium-term Target of Total Acquisition Price

8

 Competitive Edges

33

Section 2

Section 5External Growth

Appendix The Real Estate Market and Property Acquisitions10

 Summary of Results for the 11th Fiscal Period35

 Acquisition Policy and Approach11

 Forecasts (12th and 13th Fiscal Periods)

36

 Recent Property Acquisition

12

 Major Financial Data

38

 Appraisal Values at End of Fiscal Period39

 Portfolio Performance Summary

41

Section 3

 Organization of the Asset Management Company

46

Internal Growth Positioning of Asset Manager within Daiwa Securities Group47

 Portfolio Map

18 Analyses of Leasing Income19 Influence of the Great East Japan Earthquake23

 Properties Subject to Leasing Improvement

25

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

2Section 1
Performance Highlights and Forecasts

11th Fiscal Period Topics and 12th & 13th Forecasts
11th Fiscal Period Topics
Properties Acquisition¾ Daiwa Kayabacho Building(Date of Delivery: 2011/3/25 Acquisition Price: 5,600 million yen)

¾ Jimbocho Place(Date of Delivery: 2011/3/29 Acquisition Price: 3,550 million yen)

Property Management and Management Situation¾ Occupancy Rate at the end of May 2011 : 95.4% ( at the end of Nov. 2010 : 95.9%)¾ Average Contract Rent

as of end-May 2011 : 19,692 yen (compared to the end of Nov. 2010 : -3.5%)

Financial Situation¾ Interest-bearing liabilities at the end of May 2011 : 86,250 million yen ( LTV (based on acquisition price) at the end of May 2011: 30.0%)¾ The rate of uncollateralized loans compared to all interest-bearing liabilities at the end of May 2011 : 30.7%( the rate at the end of Nov.2010 :

16.9%)

Forecast of 12th Fiscal Period and 13th Fiscal PeriodProperties Acquisition¾ E SPACE TOWER

(Date of Delivery : 2011/7/8 Acquisition Price : 24,000 million yen)

Property Management and Management Situation¾ Estimated Occupancy Rate; at the end of Nov. 2011: 90.7%, at the end of May 2012 : 90.4%

Financial Situation¾ Interest-bearing liabilities after acquiring E SPACE TOWER : 111,750 million yen (LTV (based on acquisition price) : 35.9%)¾ Conducting negotiation with lenders to have all loans collateralized, and then some loans are assumed to be repaid ahead of schedule.

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

4

Highlights of the 11th Fiscal Period
Results of the 11th Fiscal Period
10th Fiscal Period(ended Nov. 2010)(33properties)(million yen)

11th Fiscal Period(ended May 2011)(35 properties)

ChangeMain Reason

Operating Revenue

6,424

6,758

+ 334

Operating Cost

3,942

3,935

-7

Operating Income

2,481

2,823

+ 342

Ordinary Income

1,273

1,587

+ 313

Non-operating expenses

1,212

1,245

+32

Net Income

1,282

1,453

+ 170

395,798 unit

395,798 unit－

Dividend per Unit

3,240 yen

3,671 yen

+431yenOccupancy Rate

95.9％

95.4％

NOI Yield (annualized)

3.2％

3.5％

Number of Investment Unit

(Reference)Previous Forecast *of
11th Fiscal Period(35 properties)

11th Fiscal Period(ended Nov.30, 2010)(35 properties)

Operating Revenue

6,786

6,758

-27

Operating Cost

4,124

3,935

-189

Net Income

1,424

1,453

+28

Dividend per Unit

3,600 yen

3,671 yen

+ 71yenOccupancy Rate

93.4％*

95.4％

ChangeAcquisition of Daiwa Kayabacho Build. & Jimbocho Place(+95mil yen), the lease fee from the properties acquired in 10th
Fiscal Period (+141mil yen), increasing in the lease fee from other properties
Expenses related to rent business (-28mil yen), Asset management fee (+25mil yen)Account for extraordinary expenses (Loss on disaster (70mil yen), Provision for loss on disaster (63mil yen))

Main Reason
Decrease in utilities income (-73 mil yen), Increase in other lease business revenue (+42mil yen)
Decrease in Expenses related to rent business (-149mil yen) and Other operating expenses (-39mil
yen)
Account for extraordinary expenses (Loss on disaster (70mil yen), Provision for loss on disaster (63mil
yen))* The occupancy rate of 33 existing properties Announced on March 3, 2011
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

5

Highlights of Forecasts for the 12th and 13th Fiscal Period
Forecasts

12th Fiscal Period Forecast(million yen)
11th FP(May 2011)(35 properties)

12th FP
Forecast(Nov. 2011)(36properties)

Differencecompared to11th FP

13th FP
Forecast(May 2012)(36properties)

Differencecompared to12th FP

during the 11th Fiscal Period will fully contribute. Rent revenue will increase
due to the acquisition of E SPACE TOWER. And rent revenue of existing
properties will remain unchanged but occupancy rates will decrease.

Operating Revenue

6,758

7,420

+661

7,207

-213

Operating Cost

3,935

4,238

+303

4,137

-100



2,823

3,182

+358

3,069

Rental business expenses will increase due to properties acquired in the 11th
Fiscal Period and the acquisition of E SPACE TOWER

Operating Income

The rent revenue of Daiwa Kayabacho Building and Jimbocho Place acquired

Non-operating expenses will temporarily rise significantly as the Investment
Corporation aims to attain unsecured status for all borrowings (early repayment-112

costs are anticipated to temporarily arise due to early repayments of
Non-Operating expenses

1,245

1,557

+312

1,147

-409

Ordinary Income

1,587

1,624

+37

1,921

+296

Net Income

1,453

1,622

+169

1,919

+296

395,798 unit

395,798 unit

3,671 yen

4,100 yenborrowings).

13th Fiscal Period Forecast

Number of Investment Unit
Dividend per Unit

395,798 unit
+429 yen

4,850 yen

Expected Occupancy Rate

95.4％

90.7%

90.4%

Expected NOI Yield

3.5％

3.5%

3.4%

The rent revenue of E SPACE TOWER acquired in the 12th Fiscal Period will
increase but deterioration of operating revenue is forecast due to tenants
moving out of existing properties and other factors+750yen

Rental business expenses, asset management fees, etc. will decrease

The increase of non-operating expenses anticipated for the 12th Fiscal Period
is only temporary, and non-operating expenses for the 13th Fiscal Period andonwards will significantly decrease

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

6

Issues and Activities of the Investment Corporation
Balance
Balance Sheet
Sheet ofof thethe 11th
11th Fiscal
Fiscal Period
Period(Fiscal(Fiscal Period
Period ended
ended May,
May, 2011)2011)（Unit：million yen）

Asset Issues and Activities

Liability Issues and Activities

 Promoting Property Purchases

 Diversify Financing MeansÎ Acquired the Daiwa Kayabacho Building
and Jimbocho Place in the 11th Fiscal
PeriodÎ Acquired E SPACE TOWER, second
largest in scale following Shinjuku Maynds
Tower, in the 12th Fiscal Period (July2011)Î Pay close attention to tenant trends andacquire properties with due consideration

Liabilities
98,392External Growth
Growth through asset
acquisitions
P12~16

Assets

P27~30Internal Growth
Leasing
Improvement

Î Strengthen relations with tenants throughnewly establishing a marketing promotion
department

Î Continually strive to reduce costs such as
interest rate reduction through change ofsponsors and improvement of financial
structure Increase Ratio of Unsecured Borrowings

Net Assets

Î Continue acquiring properties by procuring
unsecured borrowings

200,234

Î Aim to attain unsecured status for all
borrowings through negotiations withlenders

P25

Financial Strategy

Î Aim to improve property value throughrenewal of common-use areas of buildings
where tenants have vacated Strengthening Tenant Relations

 Reduce Interest Rate Costs

Financial Strategy
Status of interestbearing liabilities

298,626

 Rebuilding Leasing Strategies

Î Although business reorganizations andsuch of tenants are seen amidst thecontinued stagnation of the Japanese
economy, the Investment Corporation
won’t decrease rent fee solely for purpose
to improve the occupancy rate.

Î Strengthen financial base by diversifying
lenders and improving conditions for
procurement, etc.

Status ofunitholders
P31

Forecast
Forecast EPS
EPS forfor thethe 12th
12th Fiscal
Fiscal Period
Period4,100 yen
Forecast
Forecast EPS
EPS forfor thethe 13th
13th Fiscal
Fiscal Period
PeriodNet Asset Issues and Activities
 Group Support

Î The business base of major unitholders will
be stabilized by having the Daiwa Securities
Group implement loans with the Investment
Corporation’s investment units as collateral.
Stabilization of unitholder composition isthus expected

4,850 yenThis document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

7

Medium-term Target of Total Acquisition Price
Total
Total Acquisition
Acquisition Price
Price
Medium-term Target to achieve a total acquisition price of 350 billion yen at early stage by taking advantage of the low LTV(Billion yen)

Total Acquisiton Price

400.0

LTV (based on acquisiton price)70.00%
350.0

Expected LTV
350.0

60.00%

300.0

50.00%

250.0
40.00%
200.0
150.0

287.0

283.4

265.0

265.0

265.0

269.1

278.1

287.3

311.3

20.00%

100.0
50.0

79.5

110.8

130.4

30.00%

138.4

10.00%
0.00%

0.0
Listed1st
Period2nd
Period3rd
Period4th
Period5th
Period6th
Period7th
Period8th
Period9th
Period10th
Period11th
PeriodAs of July
2011

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

8Section 2
External GrowthThe Real Estate Market and Property Acquisitions
The
The Real
Real Estate
Estate Market
Market andand Trading
Trading Performance
Performance
Source: Compiled by the Investment Corporation based on data from the “Real Estate Transaction Survey” of the
Urban Research Institute (Mizuho Trust and Banking’s think tank) and information from the Bank of Japan’s website(Case)
800

Number of Transactions
Lending Stance DI (Real Estate)
Lending Stance DI (All Industries)

700
Number of Transactions

600

30
20
10

500

0

400

-10

300

-20

200

-30

100

-40

0

-50
2005 2nd 2006 1st Half 2006 2nd 2007 1st Half 2007 2nd 2008 1st Half 2008 2nd 2009 1st Half 2009 2nd 2010 1st Half 2010 2nd 2011 1st Half 2011 2nd 2012 1st Half
Half
Half
Half
Half
Half
Half
Half

Subprime Loan
Problem

Boom Period(Billion yen)
350

287.0

300

283.4

Total Acquisition Price

265.0

Adjustment Period

265.0

265.0

DI=Diffusion Index (Aboveis easy (accommodating),
whereas below
is severe)(Number)00Expanding Period

269

278

287

250
200
150
100

110.8

130.4

138.4

79.5

Select excellent properties
for future growth50
0Listed

1st Period

2nd Period

3rd Period

4th Period

5th Period

6th Period

7th Period

8th Period

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

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

10Acquisition Policy and Approach
Medium-term target to achieve a total acquisition price of 350 billion yen at an early stage
Acquisition Policy

Distribution
Distribution Chart
Chart ofof Portfolio
Portfolio Properties
Properties(Total Floor Area (㎡) Continue investing heavily in the five central wards of Tokyo.

Portfolio Properties

120,000

 For the time being, invest heavily in younger A class buildings and younger B classbuildings (1) within 20 years of building age.
 Aim to improve stability and profitability of our portfolio by achieving new buildings

A Class Buildings

100,000

Investment
Investment Ratio
Ratio

Shinjuku Maynds Tower

Area
Area
80,000 Consider property replacement, such as selling Zone (2) properties and purchasing
Zone (1) properties.

55Central
CentralWards
Wards
Tokyo
Tokyo
Metropolitan
Metropolitan
Regional
RegionalCities
CitiesInvestment Target

60,000

Ratio
Ratio
92.3%

Approach for the Property Acquisition

6.2%
1.5%

Classification
Classification
Ａ
Class
ＡClass

Ratio
Ratio
43.0%

Ｂ
Class
ＢClass57.0%

 Gain advantage in the purchase competition by constantly maintaining abundant cash
reserves and utilize the support capacity of our sponsor, etc. to lead to negotiation at moreadvantageous terms than competitors
 Not belonging to a group comprised of real estate companies, etc., allows for collecting
various types of property information

40,000 Expanding new pipelines by acquiring debt portions of beneficiary rights for which money
claims are held in trust and where real estate have been established as collateral.

(1)

E SPACE TOWER

 Strengthen alliance with the Daiwa Securities Group and exert the Group’s strengths in
the areas of property information collection and joint projects, etc. to proactively takeadvantage of the marketing ability of the Daiwa Securities Group Aim to improve stability
and profitability of our portfolio by achieving new buildings

B Class Buildings

20,000Daiwa Kayabacho Build.

(2)

Jimbocho Place*A class buildings: Total floor area is over 30,000㎡

0
0.0

10.0

20.0

30.0

40.0

50.0

60.0

** B class buildings: Total floor area over 2,000㎡ but less than 30,000㎡(Building Age)

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

11

Recent Property Acquisition (1)Daiwa Kayabacho Building
Acquisition Price

5.60 Billion yen

Expected NOI*

286 Million yen

 Convenient Location in Tokyo
The property is located within about a 3-minute walk to
Kayabacho Station on the Tokyo Metro Tozai Line andHibiya Line and walking distance to Nihombashi Stationon the Tokyo Metro Tozai Line and Ginza Line and on
Tokyo Municipal Asakusa Line. This area is one of the
major financial business areas in Japan, centered on
the Tokyo Stock Exchange.

 Sponsor Support
The property is a first property which the Investment
Corporation has acquired from the sponsor group,
Daiwa Securities Group. The property will be theyoungest building in out portfolio and is highly
competitive for its high-spec.
Location

Nihombashi Kayabacho 1-chome, Chuo-ku

Site Area

880.35㎡

Structure

S/SRC

Floor

B1/8F

Total Floor Area

5,843.65㎡

Leasable Floor Area 5,899.11㎡* Expected NOI is described as the figure released on March 3, 2011

Construction

April 30, 2010

Acquisition Price

5.60 Billion yen

Occupancy Rate

100.0％ (as of May 31, 2011)

Date of Delivery

March 25, 2011

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

12

Recent Property Acquisition (2)Jimbocho Place
Acquisition Price

3.55 Billion yen

Expected NOI*

180 Million yen

 Convenient location in Tokyo
The property is located within about a 2-minute
walk to Jimbocho Station on the Tokyo Metro
Hanzomon Line or the Tokyo Municipal Mita
Line or Shinjuku Line and about a 3-minute
walk to Kudanshita Station on the Tokyo Metro
Tozai Line or Hanzomon Line or the Tokyo
Municipal Shinjuku Line.

 Leasing Agreement

Location

Kanda Jimbocho 3-chome Chiyoda-ku

Site Area

500.05㎡

Structure

S

Floor

9F

Total Floor Area

The Investment Corporation entered into aleasing agreement with Tokyu Land Corporationfor vacant floors of the Property. And theProperty is a new building and maintains thehigh competitive edge for the equipment spec.,
so the Property is expected to ensure stableprofitability in the future.

3,496.44㎡

Leasable Floor Area 2,889.34㎡
Construction

February 9, 2010

Acquisition Price

3.55 Billion yen

Occupancy Rate

100.0％ (as of May 31,2011)

Settlement Date

March 29, 2011

* Expected NOI is described as the figure released on March 3, 2011

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

13

Recent Property Acquisition (3)E SPACE TOWER
Acquisition Price

24.00 Billion yen

Expected NOI*

1,151 Million yen

 Convenient location in Tokyo
The property is located within about a 7-minute
walk to Shibuya Station on the JR Lines and on
the Tokyo Metro Lines and a 3-minute walk to
Shinsen Station on the Keio Inokashira Line.

 Over 300 Billion yen of AUM
After the acquisition of the property, the total
amount of asset under management of theInvestment Corporation (based on acquisition
price) reached 311.345 billion yen. We expectthat the growth in the total amount of AUM will
increase our presence in the J-REIT market.

LocationMaruyamacho Shibuya-ku, Tokyo

Site Area

2,998.38㎡

Structure

S/SRC

Floor

B1/15F

Total Floor Area

18,145.04㎡

Leasable Floor Area 13,960.74㎡* Expected NOI is described as the figure released on June 30, 2011

Construction

October 31, 2002

Acquisition Price

24.00 Billion yen

Occupancy Rate

89.3％ (as of July 8,2011)

Settlement Date

July 8, 2011

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

14

Recent Property Acquisition (3) -2
Reason to Acquire E SPACE TOWER

Massive
Massive Office
Office SpaceSpace Supply
Supply** Superior Location
Î About a 7-minute walk to Shibuya Station on the JR Lines and on the Tokyo MetroÎ Accumulation of vigorous business enterprises as IT-related enterprises is

Shinjuku-Ku
Shinjuku Station

remarkable in this area and demand for office space is high.
Î The area near Shibuya Station has less supply of large-scale office buildings

Chuo-Ku

Chiyoda-Ku

compared to other office area.

 Positive Contribution to the portfolio

Shibuya-Ku

Tokyo
StationShibuyaStationShinbashi
StationÎ After the acquisition of the Property, the average age of buildings in our portfolio
improved from 21.2 years to 20.3 years.
Î The portion of Shinjuku Maynds Tower, based on acquisition price, decreased from
46.6% to 43.0%.

Minato-Ku

Shinagawa- Meguro-ku
1.0%ku
Shibuya-ku 9.0%

 Competitive Building Spec.

4.6%

Î 15 stories above ground and 1 below, the total floor area of approximately 5,488
tsubo, its standard floor features approximately 302 tsubo of floor space andShinjuku-ku
11.7%

2,800mm ceiling height for a standard floor.

Chiyoda-ku
37.2%

Shinagawa
StationMinato-ku
24.9%

Î The large-scale office building relatively new and competitive with high-spec near
Shibuya Station, like the Property is rare.

Chuo-ku
11.7%*

Shinagawa-Ku

Map of Large office buildings (over 10,000 m2 of total floor area) which are planning to beconstructed near Tokyo 5 wards after 2011 and pie-chart showing total area of these buildings
Data: “Nikkei Real Estate Market News” in the June 2011 issue “ Large-scale office building
Map constructed in the future”

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

15

Recent Property Acquisition (3) -3
Regional Characteristics around JR Shibuya station%% ShareShare ofof industries
industries
Shibuya Ward

Other
55%

Tokyo 5 Central Wards

Information &Communication
24%

Other
70%

Service21%

Data: Bloomberg
Pie chart is showing the rate of the number of theheadquarter of enterprises listed on 1st Section of TSE,
2nd Section of TSE, Mothers of TSE, and JASDAQ
located in each place per sector.

Information &Communication
16%
Service14%

All over Japan

Other
80%

Information &Communication
10%
Service10%

Tenants
Tenants inin thethe large-scalelarge-scale office
office buildings
buildings
 Shibuya Hikarie

DeNA Co., Ltd. / NHN Japan Corp.
 Shibuya Mark City

CyberAgent, Inc. / McAfee, Inc.
 Sumitomo Fudosan First Tower

mixi, Inc. / PIA Corporation / Groupon Japan, Inc.
 Cerulean Tower

GMO Internet, Inc.
Data: Nikkei Real Estate Market News and HP of each company
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

16Section 3
Internal GrowthPortfolio Map ~ Up or down in occupancy rate compared with previous Fiscal Period ~55 Central
Central Wards
Wards ofof TokyoTokyo

As of May 31, 2011

Regional
Regional Cities
CitiesOccupancy rate compared withprevious Fiscal PeriodUp: 8 buildings

Down : 5 buildings
Shinjuku Ward

Daiwa Misakicho

Unchanged : 20 buildings

Daiwa Sarugakucho

New Properties : 2 buildings

Daiwa Jimbocho
Jimbocho Place

Daiwa Kudan

Sunline Bldg. No.7

Daiwa Kodenmacho
Nihonbashi MS Bld.

Chiyoda Ward

Shinjuku Maynds Tower

ShibuyaWard
SHIBUYAEDGE

Tokyo
Station Chuo
Daiwa Nihonbashi Honcho

Ward

Daiwa Jingumae
Daiwa Minami Aoyama

Daiwa Ginza Annex
Daiwa Ginza

Daiwa Minami-Senba

Daiwa Kayabacho Build.

Daiwa Kyobashi
Daiwa Ginza 1-chome
BPS Square
Daiwa Tsukiji
Daiwa Tsukiji616
Daiwa Tsukishima

Tokyo
Tokyo Metropolitan
Metropolitan Area
Area

Kyodo Bldg. (Nishishimbashi)Daiwa Shibashi510
Daiwa Onarimon
Daiwa A Hamamatsucho
E SPACE TOWER
Daiwa Shibuya SS
Daiwa Shibadaimon(July 2011)
Shibuya Station
Daiwa Azabudai

Daiwa Higashi-Ikebukuro

Daiwa Shibaura

Daiwa Kinshicho

Minato Ward
Benex S-3

Tokyo

Daiwa Shinagawa North

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

18

Analyses of Leasing Income (1)Occupancy
Occupancy Rate
Rate andand NOINOI Yield
Yield

NOI Compared to Previous Fiscal Period

100%Occupancy Rate(%)(1) The 11th Fiscal Period
99.0%

95%

97.0% 97.4%

98.2% 98.3%

95.9%
97.6% 97.7%

 Acquired Daiwa Kayabacho Building and Jimbocho Place

95.4%

 The Properties acquired during the 10th Fiscal Period fully contributed.
 The occupancy rate for the 11th Fiscal Period was slightly down to95.4, but rent revenue of existing properties increased.

90.7%

92.8%
90%

90.4%

Occupancy Rate
85.7%

(2) The 12th Fiscal Period

85%(Million yen)
9,000

NOI (Million yen): Rent revenue + Other lease business revenue - Expenses
related to rent business + Depreciation
NOI yield (%) : NOI / Period average acquisition price

8,000

6,895

7,000

①
6,373

②

5,133

 Daiwa Kayabacho Building and Jimbocho Place acquired during the
11th Fiscal Period will fully contribute.

8.0%

 By acquiring E SPACE TOWER during the 12th Fiscal Period, NOI
will increase.

③

6,334

5,000

5,409
4,922
4,465

4,873

5,275

3,974

4,000
3,143

+535 million yen(Yield (%))
9.0%

5,915

6,000

+408 million yen

7.0%
6.0%
5.0%

 The level of tenant cancellations in the 12th Fiscal Period is frecasted
to be same with recent years, but not to recover the occupancy rateby decreasing rent fee aggressively, the occupancy rate in the 12th
Fiscal Period estimated to be 90.7%.

4.0%

3,282

3,000

3.0%

2,000

2.0%

1,000

1.0%

0

0.0%
1st
2nd
3rd
4th
5th
6th
7th
8th
9th
10th
11th
12th
13th
Period Period Period Period Period Period Period Period Period Period Period Period Period(3)The 13th Fiscal Period-134 million yen

 E SPACE TOWER acquired during the 12th Fiscal Period will fully
contribute.
 As it is for the 12th Fiscal Period, the Investment Corporation will notdecrease rent fee for solely purpose to improve the occupancy rate.
The occupancy rate for the 13th Fiscal Period is estimated to be down
to 90.4%.

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

19Analyses of Leasing Income (2)（Million yen）
1,150

Contract
Contract Rent*
Rent* Increase
Increase andand Reduction
Reduction

Ratio
Ratio ofof Contract
Contract Rent
Rent Revisions*
Revisions*11th Period

1,100

Increase from
New Leases

10th Period

5.2%

39.6%

55.2%

Increaseby New
Acquisition

9th Period

1,050

61.3%

38.7%

Decreasefrom Tenants’Cancellations

8th Period

2.8%

68.5%

28.6%

37.5%

18.1%

44.5%

Decreasefrom Rent
Revisions

7th Period

1,000
End of Nov. 2010
Monthly Contract Rent

End of May 2011
Monthly Contract Rent

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

0%

37.5%

51.6%

10.9%

20%

*Based on leased space

40%
Unchanged

60%
Decrease

80%

100%

Increase

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

20Analyses of Leasing Income (3)＊New
New Leases
Leases andand Cancellations
Cancellations＊(Case)
40

Average
Average Contract
Contract Rent
Rent andand Market
Market Rent
Rent

28,00033

30(yen/tsubo)

31

30

24
17

20
6

5

10

16
4

24,000-12

20,000

0
-10

-20

-20

-14

-19
-24

-30
-40

16,000

-50
-53

-60
7th Period

8th Period

9th Period

10th Period

11th Period

New Leases
Cancellations
Difference between New Leases and Cancellations
Cost
Reduction

Space
Expansion

Consolidation

BetterLocation

Reduction

12,000
4th Period 5th Period 6th Period 7th Period 8th Period 9th Period 10th Period 11th Period

Other

Avrage Contract Rent *Miki Shoji Tokyo 5 Central Wards Office Rent
CBRE Asking rent in Tokyo 5 Central Wards (excluding common area charge)

Total

New Leases

1

6

0

1

4

4

16

Cancellations

1

0

6

1

0

4

12

＊Excluding residence and warehouse* Average of rent that tenants contracted by the end of each Fiscal Period pay

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

21

Analyses of Leasing Income (4)Major
Major Tenants
Tenants Top
Top 1010 List
List

Tenant Name

Property

Pie
Pie Chart
Chart ofof Industries
Industries ofof TopTop 5050 TenantTenantLeased Space** (m2)% of Total Leased
Space ***

Daiwa Tsukishima

6,379.88

3.6%

Trend Micro Incorporated

Shinjuku Maynds Tower

6,309.84

3.6%

Not disclosed *Daiwa Kayabacho Build.

5,899.11

3.2%

Daiwa Onarimon

5,091.47

2.7%

EMC Japan

Shinjuku Maynds Tower

4,980.78

2.7%

Sekisui House, Ltd.

Shinjuku Maynds Tower

4,498.57

2.4%

Not disclosed *Shinjuku Maynds Tower

4,316.90

2.3%

Not disclosed *Shinjuku Maynds Tower

4,114.50

2.2%

SUN WAVE CORPORATION

Daiwa Sarugakucho

3,657.43

2.0%

Not disclosed *Daiwa Jimbocho

2,932.44

1.6%-

48,180.92

26.3%

Not disclosed *UCC Holdings Co., Ltd.

Total

Other
17.4%
Retail Trade
4.1%
Construction
4.2%
Electric Appliances
4.7%
Foods
4.8%
Precision Instruments
5.9%
Banks
6.0%

Services
25.7%

Information &Communication
16.7%
Real Estate
10.4%* The leased space of top 50 tenant covers 58.1% of total leased space as of theend of the 11th Fiscal Period** Industries are categorized according to TSE’s 33 industry group.

•*Not disclosed due to tenant's request•** Leased spaces of the tenants in Shinjuku Maynds Tower are described as the figure equivalent to 6/7, ownership % of the Investment Corporation.
•*** The figures of %of Total Leased Space are round down to the first decimal place.

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

22

Impact of the Great East Japan Earthquake (1)Impact of Great East Japan Earthquake on Properties

Strengthening Earthquake Resistance of Properties

 No casualties or damage having a serious impact on the investment status at all

35 portfolio properties
 Onsite investigation conducted by third-party investigation companies reportsthat there was no significant damage to any of the properties due to the

Ratio
RatioofofNew
New//Old
OldEarthquake
Earthquake
Resistant
ResistantStandards*
Standards*Buildings
Buildings

Portfolio PML*:

5.62%*Prepared by NKS, Risk Management, Inc.

Old earthquake resistancestandards:18.3%

Earthquake Though there was no major damage to building structures, repair, renovation

New earthquake
resistance standards:
81.7%

and reinforcement work was conducted for minor damage to the exterior andinterior of buildings and facilities at some properties*based on acquisition pricePhoto of earthquake resistance work at Daiwa Kyobashi
Building

Details of Reinforcing Works for quakewith Old Earthquake Resistance Standards

Restoration Costs Resulting fromGreat East Japan Earthquake
Daiwa Ginza
Daiwa Ginza Annex

Conducted in 2003. Strengthening of walls, reinforcement of pillars andbeams (carbon fiber + steel plate winding + reinforced steel), slit
installment, etc.
Conducted in 2006. Strengthening of walls, steel plate winding of pillars,slit installment, etc.
Conducted in 2003. Strengthening of walls.

Conducted by end of May 2011

61 million yen

Other expenses by the end of May 2011
(including investigation fees)

8 million yen

Estimated costs for restoration work for June 2011
onwards

63 million yen

Daiwa Nihombashi Honcho

Conducted in 2006. Additional reinforcing walls, new steel-framed brace,
aramid fiber sheet winding of pillars, etc.

Total

134 million yen

Daiwa Ginza 1-chome

Conducted in 2005. Additional reinforcing walls, strengthening of walls,
new steel plate brace, slit installment, carbon fiber sheet winding of
beams, etc.

Daiwa Kyobashi

Conducted in 2005. Additional reinforcing walls, strengthening of walls,
carbon fiber sheet winding of pillars and beams, etc.

Daiwa Onarimon

Conducted in 2003. New reinforcing walls, strengthening of walls,
strengthening of pillars, carbon fiber sheet winding of pillars, new steel
plate brace, etc.

Daiwa Shimbashi 510
Daiwa Shibuya SS

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

23
23

Impact of the Great East Japan Earthquake (2)Electricity Conservation Efforts
Properties (9) that Fall Under Major Consumers(Contracted 500kW or more) Electricity conservation (15% reduction from max. of same period lastsummer) is being implemented from July 1, 2011 to September 22, 2011
(9:00-20:00 on business days) for major consumers (contracted 500kW or

Shinjuku Maynds Tower, Daiwa Ginza, Daiwa Shibaura, Daiwa

more) in the service area of TEPCO.

Tsukishima, Daiwa Shinagawa North, Daiwa Nihombashi Honcho,
Daiwa Nishi-Shimbashi, Benex S-3, Daiwa Higashi-IkebukuroElectricity Conservation Measures (Examples)Specific Efforts of Tenants in Electricity Conservation

Restrooms and Hot Water Supply Rooms
Encourage turning off lights in restrooms when not in use

 Held meetings with tenants concerning electricity conservation
 Distributed announcements to tenants concerning electricity conservation incommon-use areas
 Visited individual tenants (primarily major tenants) and requested cooperationfor electricity conservation, and also confirmed their respective electricity
conservation policies for the summer

Common-Use
Areas

Lights at Entrances, Elevator Halls, Hallways, etc.
Turn off 80-90% (10-20% of usual)
Air Conditioning of Common-Use Areas
Completely turn off

 Drafted and implemented effective electricity conservation measures for each

Elevators
At buildings with three or more regular elevators, complete stopping of one

building by holding meetings with air conditioning and automatic control
equipment manufacturers
 Applied for shared use schemes (adjusting by integrating the conservation

amount at buildings that have difficulty in reducing electricity consumption withthose that can easily reduce consumption)

Turning off electric water heater water supply for restroom sinks and hot
water supply rooms, as well as hand dryers, toilet seat heaters and hot water
washers

Tenant Areas(requests totenants)

Air Temperature Settings
Set air-conditioning temperatures higher than last year (targeting 28℃)
Lighting
Turning off unneeded lights and use of blinds and fansThis document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

24
24

Properties Subject to Leasing Improvement
Daiwa Sarugakucho

Daiwa Ginza 1-chome
Location

Sarugakucho, Chuo-ku

Location

Ginza 1-chome Chuo-ku

Construction

June 1985

Construction

January 1962

Total Floor Area

4,303.97㎡

Total Floor Area

4,771.31㎡

Acquisition Price

3,000 million yen

Acquisition Price

4,620 million yen

 2-minute

walk from Ginza 1-chome
Station on the Tokyo Metro YurakuchoLine, and 4-minute walk from Kyobashi
Station on the Tokyo Metro Ginza Line 3-minute walk from Suidobashi Station on

the JR Sobu Line Located in a business area with many

 Closeto central Ginza and highly
competitive also as office and commercial
location

universities and various types of schools

Activities and Future Strategy

Activities and Future Strategy

 Since a notice of departure was received in April 2011 from thetenant that was renting the entire building, a large internal renewal,
which includes individualizing the air conditioning system, isplanned Conduct multifaceted business activities such as selection of target

 The occupancy rate had recovered to 97.9% at the end of the 11th

Fiscal Period but will drop in the 12th Fiscal Period and after due to
notices of contract termination received from several tenants
 Aim to re-raise the occupancy rate through efficient use of

campaigns, etc.

tenants giving consideration to locational characteristics

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

25
25

Section 4
Financial Strategy

Status of Interest-bearing Liabilities (1)Ratio-to Short-Term Borrowings
Ratio ofof LongLong-toShort-Term
Borrowings

Loan
Loan toto Value
Value Trend
Trend(Billion yen)
280
260
240

70%
Interest-bearing Liabilities
LTV (based on acquisiton price)
Expected LTV

200

50%

Upper limit range LTV in themedium-term target160

11th Fiscal Period

17.2
%

60%

220

180

10th Fiscal Period

54.8
%

82.8
%

Current position of long-term borrowings

As of July 8, 2011

29.9
%

45.2
%

70.1
%

Long-term borrowings

40%

140
120

30%

Ratio
Ratio ofof Fixed
Fixed –– toto Floating
Floating Borrowings
Borrowings

100
80

10th Fiscal Period

11th Fiscal Period

43.1
%

38.9
%

As of July 8, 2011

20%

60
40

10%

48.3
%

20

1s
tP
eri
2n od
dP
er
i
3rd od
Pe
ri o
d
4th
Pe
ri o
5th d
Pe
rio
6th d
Pe
rio
d
8th
Pe
ri o
9th d
Pe
rio
10
d
th
Pe
rio
11
d
th
Pe
rio
d

0
o
As

f

ly
Ju

11
20

0%

8.6
%
Fixed interest

52.8
%

29.6
%
64.1
%

6.4%

8.2
%
Floating interest (capped)

Floating interest* LTV( based on acquisition price) ＝Total interest-bearing liabilities / Total acquisition price ofproperties held at the end the Fiscal Period
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

27

Status of Interest-bearing Liabilities (2)Continuous decline in debt cost by refunding from high-cost borrowingsand decreasing in financial related expenses is estimatedRepayment
Repayment Dates
Dates(Million yen）（％）

30,000

6.0%

Released on Jun.30 2011
Orix Trust Bank
(T+0.40%)
25,000

5.0%

Aozora Bank
(T+2.19%)

Released on Jun. 30 2011
1,000

Shinsei Bank
(L+1.80%)

20,0003,500

Sumitomo Trust & Banking
Bank of Fukuoka(T+0.50%)

4,000
6,000

3,500

2.0%
Debt
Cost Rate
1st Period

19,000

1.0%

5,000

3,000

12,50013th
Expected
Debt Cost Rate
P i d

2,000

5,000
5,500

0

3.0%

7,100

0.0%

5,500
5,000

4,000

3,500

1,000
12th Period 13th Period 14th Period 15th Period 16th Period 17th Period 18th Period（Nov. 11） （May 12） （Nov. 12） （May 13） （Nov. 13） （ May 14） （Nov. 14）

28th Period（Nov. 19）1st
2n Perd iodP
3r erid od
P4t erih od
P5t erih od
P
6t erih od
P7t erih od
P8t erih od
P
9t erih od
10 Pe
th rio
d
11 Pe
r
th io
12 Pe dth rio13 Pe dth rio14 Pe dth rioPe driod10,000

4.0%

Released on Jun. 30, 2011
SMBC
Mizuho Trust & Banking
Aozora Bank
Shinsei Bank
(T+0.60%)

2,000

19,60015,000Debt
Debt Cost
Cost Rate*
Rate* (annualized)(annualized)* Debt Cost Rate (annualized): (Interest Expense + Financial Related Expenses)/
Interest-bearing Liabilities)

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

28

Status of Interest-bearing Liabilities (3)List of Interest-bearing Liabilities
LenderCurrent maturities of long term borrowings

Term

Long term borrowings

Sumitomo Mitsui Banking Corporation (*)
The Sumitomo Trust and Banking Co., Ltd. (*)
Dev elopment Bank of Japan, Inc. (*)
The 77 Bank Ltd. (*)
The Chuo Mitsui Trust and Banking Co., Ltd. (*)
Taiy o Life Insurance Company (*)
The Gunma Bank, Ltd. (*)
Tha Kagaw a Bank Ltd.(*)
Kansai Urban Banking Corporation
Resona Bank, Ltd.
Mizuho Bank, Ltd.
Shinsei Bank, Ltd.
Aozora Bank, Ltd.
Total current maturities of long term borrow ings
Sumitomo Mitsui Banking Corporation (*)
The Sumitomo Trust and Banking Co., Ltd. (*)
Dev elopment Bank of Japan, Inc. (*)
The 77 Bank Ltd. (*)
The Chuo Mitsui Trust and Banking Co., Ltd. (*)
Taiy o Life Insurance Company (*)
The Gunma Bank, Ltd (*)
Aozora Bank, Ltd.
The Shizuoka Bank, Ltd.
Tha Kagaw a Bank Ltd.(*)
Shinsei Bank, Ltd.
American Life Insurance Company
Fukuoka Bank
Orix Trust Bank
Resona Bank, Ltd.
Sumitomo Mitsui Banking Corporation (*)
Resona Bank, Ltd.

Shinsei Bank, Ltd.
Total long-term borrow ings
Total borrow ings

Balance(million y en)
37.50
26.25
150.00
7.50
15.00
7.50
7.50
7.50
5,500.00
3,000.00
3,500.00
7,100.00
19,600.00
38,958.75
4,887.50
3,421.25
2,587.50
985.001,962.50
981.25981.253,500.00
1,000.00
985.002,000.00
5,000.00
2,000.00
1,500.00
2,000.00
2,000.00
2,000.00
1,000.00
38,791.25
77,750.00(As of May 31, 2011)
Ty pe
Fix edFix edFix edFix edFix edFix edFloat
Float
Fix edFix ed
Float
Float
Float
Fix edFix edFix edFix edFix edFix ed
Float
Float
Float
Float
Float
Fix ed
Float
Float
Float
Float
Float
Float

Interest Rate

Date of

(%)
1.81%
1.81%
1.54%
1.81%
1.79%
1.79%
T+1.00%
T+1.00%2.00%
1.90%
T+1.00%L+1.80%T+2.19%adv ance
09/9/18
09/9/18
09/9/18
09/9/18
09/11/30
09/11/30
09/11/30
10/2/26
08/6/30
08/8/29
08/9/30
09/2/20
09/5/21

1.81%
1.81%
1.54%
1.81%
1.79%
1.79%
T+1.00%
T+1.00%
T+1.00%
T+1.00%T+0.90%2.29%
T+0.85%
T+0.85%
T+0.70%T+0.60%T+0.70%T+0.55%Due date
12/9/18
12/9/18
12/9/18
12/9/18
12/11/30
12/11/30
12/11/30
13/2/28
11/6/30
11/8/31
11/9/30
12/2/20
12/5/21

09/9/18
09/9/18
09/9/18
09/9/18
09/11/30
09/11/30

12/9/18
12/9/18
12/9/18
12/9/18
12/11/30
12/11/30

09/11/30
10/2/26
10/2/26
10/2/26
10/9/2
08/9/2
10/9/30
10/9/30
11/3/18
11/3/25
11/3/25
11/5/25

12/11/30
13/2/28
13/2/28
13/2/28
13/7/31
13/8/30
13/9/30
13/9/30
14/3/18
14/3/25
14/3/18
13/11/29（*）Portions of long-term installment loans that are due within 1 year have been categorized as
current maturities of long term borrowings.

Investment Corporation Bonds
Term

Balance

Lender(million y en)(As of May 31, 2011)
Ty pe

Interest Rate

Date of(%)

adv ance

Due date

Long-term No. 1 Unsecured and Subordinated

3,500

Float

T+240bps

09/9/17

19/9/17Long-term No. 2 Unsecured Inv estment Corporation

5,000

Fix ed1.87%

10/6/24

6/24/13

Total investment corporate bonds

8,500

Balance by interest-bearing liabilities(Including Investment Corporation Bonds)(As of May 31, 2011)
Balance(million yen)

Share
(% )

Aozora Bank
Shinsei Bank

23,100.00

26.8

10,100.00

11.7

Resona Bank
Sumitomo Mitsui Banking Corporation

7,000.00

8.1

6,925.00

8.0

Kansai Urban Banking Corporation
American Life Insurance Company
Mizuho Bank

5,500.00

6.4

5,000.00

5.8

3,500.00

4.1

Sumitomo Trust and Banking
Development Bank of Japan

3,447.50

4.0

2,737.50

3.2

Fukuoka Bank
Chuo Mitsui Trust and Banking

2,000.00

2.3

1,977.50

2.3

Orix Trust Bank
Shizuoka Bank
77 Bank

1,500.00

1.7

1,000.00

1.2

992.50

1.2

Kagawa Bankl
Taiyo Life Insurance

992.501.2

988.75

1.1

Gunma Bank

988.75Investment corporation bonds
Total

Name of Financial Institution(As of July 14, 2011)
Balance(million yen)

Share
(% )

Aozora Bank

24,600.00

22.0

Sumitomo Mitsui Banking Corporation
Shinsei Bank

20,425.00

18.3

11,100.00

9.9

Sumitomo Trust and Banking
Resona Bank

8,447.50

7.6

7,000.00

6.3

Kansai Urban Banking Corporation
American Life Insurance Company

5,000.00

4.5

5,000.00

4.5

Mizuho Bank
Mizuho Trust & Banking

3,500.00

3.1

3,000.00

2.7

Fukuoka Bank
Development Bank of Japan

3,000.00

2.7

2,737.50

2.4

Orix Trust Bank
Chuo Mitsui Trust and Banking

2,500.00

2.2

1,977.50

1.8

Shizuoka Bank
77 Bank

1,000.00

0.9

992.500.9

992.500.9

1.1

Kagawa Bankl
Taiyo Life Insurance

988.750.9

8,500.00

9.9

Gunma Bank

988.750.9

86,250.00

100.0

Investment corporation bonds
Total

8,500.00

7.6

111,750.00

100.0

Name of Financial Institution

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

29

Efforts towards Unsecured Borrowings Status
Continue negotiations with banks to attain unsecured status for all borrowings in the 12th Fiscal Period
Impact of Unsecured Borrowings Status in 12th Fiscal Period

Benefits of Unsecured Borrowings Status

 Continue negotiating with banks to attain unsecured status for all borrowings. In
 Increased flexibility for procuring borrowings

order to achieve this in the 12th Fiscal Period, early repayment of someborrowings is expected.
 With the early repayment of borrowings, temporary occurrences of early
amortization of borrowing expenses and payment of break funding costs* areanticipated.
 An increase in total cost due to bringing borrowings to unsecured status is not
anticipated, due to refinancing costly borrowings, reduction of expenses for
management of collateral, etc.

 Reduced financial costs including expenses for management of collateral Positive ingredients for improved ratings Facilitates expansion of lending financial institutions
 Facilitates issuing investment corporation bonds* Principle repayment amount × (applied interest rate – re-operation interest rate) × number of remaining days

Ratio
Ratio ofof Unsecured
Unsecured Borrowings
Borrowings

Simulation
Simulation ofof Unsecured
Unsecured
Borrowings
Borrowings Scenario
Scenario

140

100%

Without Unsecured Borrowings Status

120

Within Unsecured Borrowings Status

Ratio of Unsecured Borrowings*
75%

100
80

50%
After acquisition of
E Space Tower

60
40
20
0

*Unsecured interest-bearing liabilities ÷interest-bearing liabilities

This is a cost simulation graph where the costs for borrowings at the end of May 2011 is
100 and a scenario where early repayments are made and all borrowings are brought tounsecured status is compared with a scenario where this does not take place (assumes
that the amount of interest-bearing liabilities stays the same)
11th Period

12th Period

13th Period

25%

0%

3th
4th
5th
6th
7th
8th
9th
10th
11th
12th
Period Period Period Period Period Period Period Period Period
PeriodThis document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.
30
30
14th Period

15th Period

16th Period

Unitholders
Current State of Unitholders

List of Top 10 Investors Domestic Trust Bank increased units.

No.

Investor Name Daiwa PI Partners which is a consolidated subsidiary of Daiwa

Securities Group Inc. borrowed the funds to Columbus because
Columbus had to pay back the loan collateralized the units (68,905units)of the Investment Corporation.

11th Fiscal
PeriodNumber of
Unit

Change of
Unit

Individuals

39,65836,746-2,912

9.28%

Bank

1,611

1,534

-77

0.39%

116,311

127,211+10,900

32.14%

Life Insurance

222

223

+1

0.06%

Non-life Insurance

5,599

5,369

-230

1.36%

Other Financial Institutions

1,964

273

-1,691

0.07%

Other Domestic Corporation

133,033

132,640-393

33.51%

Foreigner

43,90537,840-6,065

9.56%

Securities

53,49553,962+467

13.63%

395,798

395,7980

100.00%Investor Type

Trust Bank

Total

Rate

Rate

1

K.K. Columbus

68,90568,905017.41%

2

Daiwa PI Partners Co. Ltd.

60,00060,000015.16%

3

Japan Trustee Services Bank, Ltd.
(Trust Account)

48,07859,646+11,568

15.07%

4

Daiwa Securities Group Inc.

51,89351,8930

13.11%

5

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

35,542

30,579-4,963

7.73%

6

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

23,45025,136+1,686

6.35%

7

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

7,695

10,341+2,646

2.61%

8

Nomura Bank (Luxembourg) S.A.

0

9,893

+9,893

2.50%

9Goldman Sachs International

7,803

7,055

-748

1.78%

10

The Fuji Fire and Marine InsuranceCo., Ltd.

5,599

5,369

-230

1.36%

Unitholders’ Share by Investor Type10th Fiscal
PeriodNumber ofUnit

10th Fiscal 11th Fiscal
PeriodPeriodChange of
Unit
Number of Number of
Unit
Unit

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

31

Upside Potential█

External Growth → Total acquisition price of 350 billion yen on the medium-term¾

After acquiring E SPACE TOWER, LTV (based on acquisition price) raised to 35.9%, but its LTV level is low. By taking advantage ofthe low LTV, acquisitions of properties will be conducted by procuring debts¾

Medium-term goal to achieve a total acquisition price of 350 billion yen at an early stage with LTV at 43%, which remains low LTV
level compared with other REITs.

¾█

The portfolio of our existing properties will improve through the acquisition of prime and young properties.

Internal Growth → Maintain asset value through professional approach¾

Enhancement of relationships with tenants by establishing “Marketing Department” in the Asset Manager.

¾

Value up our properties by improving the air conditioners to control individually and upgrading other building services.

¾

The Investment Corporation can aim to increase the profit by passing on the energy saving effect to other our buildings that theInvestment Corporation achieve with these improvements of our building services.

█

Financial Strategy → Strengthen of balance sheet by un-collateralizing borrowings and Reduction of debt costs¾

Debt costs would significantly be reduced by refinancing high cost borrowings and changing for the better debt covenants after the 14th Fiscal Period.

¾

It cost temporally to un-collateralize all borrowings but the Investment Corporation doesn’t estimate to increase total cost by reducing debt costs and collateralmanaging costs.

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

32

Competitive Edge
Establish highly-transparent business structure Strictly control conflicts of interest with sponsor

 Introduce external consultants for more sophisticated risk management

 Introduce financial institutions’ rigorous compliance framework

 Collaborate with the Daiwa Securities Group and raise the information
management system level Ensure high transparency and establish disciplined investment process

Expand net work of collaboration with the
Daiwa Securities Group Remarkably expand financing capacity
 Reinforce sourcing activities
 Increase

sense of security from tenants/investors by improving
creditworthiness Issuance of unsecured investment corporation bonds
 Contribute to tenants staying at the property and to leasing activities
 Strengthen relationships with investors by enhancing IR in Japan and abroad

Secure well-experienced, highly-professional
human resources Develop team of outstanding professional staff by capitalizing on the humanresources of the Daiwa Securities Group Employ excellent human resources from outside by drawing on the Daiwa

 Obtain excellent human resources from outside

Securities Group’s brand power Increase number of employees with a high level of motivation to challenge

new business stages

 Increase well-experienced and highly-professional staff with a high level ofmotivation from the Daiwa Securities Group Share the long-term goal of REIT business and concentrate on expanding
REIT market

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

33Section 5
AppendixSummary of Results for the 11th Fiscal Period (1) ~Balance Sheet~
Comparison with Results of the 10th Fiscal Period
10th Fiscal Period
As of Nov.30, 2010
Million Yen
Current Assets

6.7%

Million Yen(%)

15,566

Million Yen
Current Liabilities

5.2%

13,191

9,164

Trade Payables

Cash and Deposits in Trust

5,312

5,370

Current Maturities of Long-term Borrowings

Consumption Taxes Receivable

119－

Other Current Assets

1,168

1,031
93.3%

283,016

94.8%

269,274

91.4%

277,81793.0%

Buildings Held in Trust

50,51852,627

Land Held in Trust

218,730

225,160

24

29

Other Tangible Fixed Assets
Intangible Fixed Assets
Leasehold Rights in Trust
Other Intangible Fixed Assets
Investments and Other Assets

4,978

1.7%

4,970

221

113

113

Long-term Prepaid Expenses

334

92

Other Investments and Other Assets

18

14

51

Investment Corporation Bond Issuance Costs
Total Assets

0.0%

51
294,562

42

0.1%

(%)

16,103

5.5%

11th Fiscal Period
As of May.31, 2011
Million Yen(%)

41,140593

875

14,25838,958Other Payables

237

245

Rents Received in Advance

807

716

Other Current Liabilities

206

344

Fixed Liabilities

78,395

26.6%

57,252

Investment Corporation Bonds Issued

8,500

8,500

Long-term Debt

60,016

38,791

Leasehold and Security Deposits Received

5,375

5,339

Leasehold and Security Deposits Received in Trust

4,496

4,617

6

4

Other Fixed Liabilities

7
0.2%

Leasehold and Security Deposits Paid in Trust

Deferred Assets

1.7%

4,970

8
466

4,977

Net Assets

Intangible Fixed Assets

274,719

Liability

Cash and Deposits

Fixed Assets

Assets(%)

19,792

10th Fiscal Period
As of Nov.30, 2010

11th Fiscal Period
As of May.31, 2011

13.8%

19.2%

Total Liabilities

94,498Paid-in Capital

198,780

198,780

Retained Earnings

1,282

1,453

Total Net Assets

200,06367.9%

200,23467.1%

294,562100.0%

298,626

100.0%

Total Liabilities and Net Assets

32.1%

98,392

32.9%

0.0%

42
100.0%

298,626

100.0%

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

35

Summary of Results for the 11th Fiscal Period (2)Comparison with Results of the 10th Fiscal Period
10th Period(Nov. 30, 2010)

11th Period(May. 31, 2011)

ChangeNumber of Properties (at period-end)

33

35

2

Effective Number of Days of Investment

183

182

1

Comparison with Forecasts
11th Period
Forecast(March 3, 2011)

11th Period(May. 31, 2011)

ChangeNumber of Properties (at period-end)

35

35

0

Effective Number of Days of Investment

182

182

0

6,424

6,758

+ 334

Operating Revenues (A)

―

―

―

Gain on Sale

3,942

3,935

-7

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

1,958

1,884

-74

Depreciation

1,235

1,281

+ 45

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

3,229

3,592

+ 363

Operating Income (A-B)

2,481

2,823

Non-operating Expenses

1,212Interest Expense (including cap amortizatio
Financing Related Expenses

6,786

6,758

- 27

―

―

―

4,124

3,935

- 189

Rental Business Expenses(excluding depreciation)

2,025

1,884

- 140

Depreciation

1,290

1,281

-9

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

3,470

3,592

+ 122

+ 342

Operating Income (A-B)

2,661

2,823

+ 162

1,245

+ 32

Non-operating Expenses

1,235

1,245

+ 10

811

826

+ 14

Interest Expense (including cap amortizatio

830

826

-4

391

410

+ 19

Financing Related Expenses

393

410

+ 17

1,273

1,587

+ 313

1,426

1,587

+ 160

Extraordinary Income

9

0

-9

Extraordinary Income

―

0

+0

Extraordinary Expense

―

134

+ 134

Extraordinary Expense

―

134

+ 134

1,282

1,453

+ 170

Net Income

1,424

1,453

+ 28

395,798unit

395,798unit

395,798unit

395,798unit

3,240

3,671

3,600

3,671

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

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

Ordinary Income

Investment Units Issued and Outstanding+ 431

Dividend per Unit (Unit: Yen)

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

+ 71

36

Forecasts (12th and 13th Fiscal Period) ~ Profit-and-Loss Statement~
Forecast for the 12th and 13th Fiscal Period
Unit: Million Yen (excluding the number of investment units and cash dividends)

Number of Properties (at period-end)

35

12th Period
Forecast(Nov 30, 2011)36

Effective Number of Days of Investment

182

183

11th Period(May. 31, 2011)

Operating Revenues (A)13th Period
Forecast(May. 31, 2012)
36
183

6,758

7,420

7,207

―

―

―

3,935

4,238

4,137

Rental Business Expenses (excluding depreciation)

1,884

2,011

1,932

Depreciation

1,281

1,368

1,384

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

3,592

4,041

3,890

Operating Income (A-B)

2,823

3,182

3,069

Non-operating Expenses

1,245

1,557

1,147

Interest Expense (including cap amortization)

826

882

867

Financing Related Expenses

410

663

271

1,587

1,624

1,921

Extraordinary Income

0

―

―

Extraordinary Expense

134

―

―

1,453

1,622

1,919

395,798 unit

395,798unit

395,798 unit

3,671

4,100

4,850

Gain on Sale
Operating Expenses (B)Ordinary Income

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

* Although we assume that rents will remain at the current level, actual rents may differ from the assumption depending on the status ofassets under management.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

37

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

Unit

7th Period 8th Period 9th Period 10th Period 11th Period

Day

182

183

182

183

182

Property

30

30

31

33

35

%

97.7

92.8

85.7

95.9

95.4

Average acquisition priceMillion yen

265,045

265,045

266,937

274,167

281,535

NOI (after deduction of gain on sale)

Million yen

6,334

5,915

4,922

4,465

4,873

 NOI

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

Net Income + Depreciation – Gain on Sale
 ROA

Annualized Net Income / Total Assets
 ROE

Annualized Net Income / Total Investments
Million yen

4,338

3,890

3,261

2,518

2,734

Return on asset (ROA)

%

2.2

1.9

1.3

0.9

1.1

Return on equity (ROE)

%

3.2

2.7

2.1

1.3

1.5

Capital adequacy ratio at end of period

%

69.6

70.2

70.8

67.9

67.1

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

%

25.4

25.3

25.5

28.1

28.9

Funds from operation (FFO) Loan-to-Value (LTV) at end of Fiscal Period

Interest-bearing liabilities at end of Fiscal Period /Total assets at end of Fiscal Period* Figures are rounded to the first decimal place.

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

38

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

Appraisal Value at
End of 10th Period

Appraisal Value at
End of 11th Period

Compared to
End of 10th Period(Nov.30, 2010)(May 31, 2011)

Difference

Change

Major
ReasonAcquisition
Price

Compared to
Acquisition Price
Difference

Cap Rate

Change 10th Period 11th Period

Daiwa Ginza

14,00013,900

-100

-0.7%

14,100

-200

-1.4%

4.6%

4.6%

Daiwa Ginza Annex

2,920

2,900

-20

-0.7%

3,050

-150

-4.9%

4.5%

4.5%

Daiwa Shibaura

7,087

7,290

203

2.9%

8,265

-975

-11.8%

5.2%

5.2%

Daiwa Minami Aoyama

4,000

3,980

-20

-0.5%

4,550

-570

-12.5%

4.9%

4.9%

Daiwa Sarugakucho

3,350

2,490

-860

-25.7%

3,000

-510

-17.0%

5.7%

5.3%

Daiwa A Hamamatsucho

2,854

2,910

56

2.0%

2,865

45

1.6%

5.1%

4.9%

Daiwa Jingumae

2,010

2,020

10

0.5%

2,800

-780

-27.9%

4.7%

4.7%

Daiwa Shibadaimon

2,789

2,820

31

1.1%

2,578

242

9.4%

5.1%

4.8%

Daiwa Misakicho

2,398

2,410

12

0.5%

2,346

64

2.7%

5.3%

5.2%

Daiwa Shimbashi 510

2,540

2,540

0

0.0%

2,080

460

22.1%

5.2%

5.2%

BPS Square

1,660

1,660

0

0.0%

1,560

100

6.4%

5.3%

5.3%

Daiwa Tsukiji

1,370

1,370

0

0.0%

1,240

130

10.5%

5.2%

5.2%

Daiwa Tsukiji 616

2,410

2,410

0

0.0%

2,440

-30

-1.2%

5.1%

5.1%

Daiwa Tsukishima Bldg.

7,720

7,710

-10

-0.1%

7,840

-130

-1.7%

5.3%

5.3%

Nihonbashi MS Bldg.

2,430

2,420

-10

-0.4%

2,520

-100

-4.0%

5.0%

5.0%

Daiwa Azabudai

1,830

1,830

0

0.0%

1,600

230

14.4%

5.0%

5.0%

Daiwa Shibuya SS

3,950

3,940

-10

-0.3%

3,930

10

0.3%

5.0%

5.0%

Daiwa Nihonbashi Honcho

7,360

6,980

-380

-5.2%

7,420

-440

-5.9%

5.1%

5.1%

(3)

(1)

Major Reason : (1) Decrease in market rent (2) Increase in cap-rate (3) Increase in cancellation notices

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

39

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

Appraisal Value at
End of 10th Period

Appraisal Value at
End of 11th Period

Compared to
End of 10th Period(Nov.30, 2010)(May 31, 2011)

Difference

Major
ReasonChangeDaiwa Ginza 1-chome

4,310

4,190

-120

-2.8%

Daiwa Kyobashi

3,350

3,130

-220

-6.6%

Sunline Building No. 7

2,360

2,280

-80

Daiwa Onarimon

14,60014,400Shinjyuku Maynds Tower

106,000

SHIBUYA EDGE

Acquisition
Price

Compared to
Acquisition Price
Difference

Cap Rate

Change 10th Period 11th Period

4,620

-430

-9.3%

4.8%

4.8%

3,460

-330

-9.5%

5.0%

5.0%

-3.4%

2,680

-400

-14.9%

5.0%

5.0%

-200

-1.4%

13,860

540

3.9%

4.9%

4.9%

106,0000

0.0%

133,800-27,800-20.8%

4.0%

4.0%

4,130

4,060

-70

-1.7%

5,900

-1,840-31.2%

4.6%

4.6%

Daiwa Kodemmacho

1,920

1,920

0

0.0%

2,460

-540

-22.0%

5.3%

5.3%

Daiwa Jimbocho

4,340

3,820

-520

-12.0%

4,150

-330

-8.0%

5.2%

5.2%

Daiwa Nishishimbashi

5,720

5,680

-40

-0.7%

5,000

680

13.6%

5.0%

5.0%

Daiwa Kudan

4,240

3,990

-250

-5.9%

4,000

-10

-0.3%

5.0%

5.0%

Daiwa Kayabacho Building

-

5,980

-

-

5,600

380

6.8%

-

4.6%

Jimbocho Place

-

3,660

-

-

3,550

110

3.1%

-

4.6%

Daiwa Kinshicho

3,587

3,570

-17

-0.5%

3,653

-83

-2.3%

5.6%

5.5%

Daiwa Higashi-Ikebukuro

3,414

3,570

156

4.6%

2,958

612

20.7%

5.4%

5.3%

Benex S-3

3,410

3,410

0

0.0%

4,950

-1,540-31.1%

5.8%

5.8%

Daiwa Shinagawa North

5,770

5,770

0

0.0%

7,710

-1,940-25.2%

5.2%

5.2%

Daiwa Minami-Senba

3,030

2,920

-110

-3.6%

4,810

-1,890-39.3%

5.5%

5.5%

242,859

249,930**-2,569**-1.1%

287,345-37,415-13.0%

-

-

Total

(1)

(1)

(1)

* Major Reason : (1) Decrease in market rent (2) Increase in cap-rate (3) Increase in cancellation notices** Total of Compared to End of 10th Period excludes the properties acquired in 11th Period.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

40

Portfolio Performance Summary (1) (10th-11th Fiscal Period Results by Property)
Daiwa Ginza

Daiwa Ginza Annex

Daiwa Shibaura

Daiwa Minami Aoyama

Daiwa Sarugakucho

Daiwa A Hamamatsucho

Daiwa Jingumae

Property Name

14,100
3,050
8,265
4,550
3,000
2,865
2,800
10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period
Book Value (million yen)
13,688
13,625
2,952
2,935
8,154
8,148
4,514
4,503
2,976
2,964
2,831
2,822
2,766
2,759
Appraisal Value (million yen)
14,00013,900
2,920
2,900
7,087
7,290
4,000
3,980
3,350
2,490
2,854
2,910
2,010
2,020
Occupancy Rate (%)
91.1
80.1
86.5
88.0
97.1
98.8
100.0
100.0
100.0
100.0
100.0
100.0
78.5
78.5
9.20
9.17
7.50
7.46
5.10
5.09
12.80
12.79
9.80
9.79
6.00
6.03
12.00
12.01
PML (%) (*6)
UNHEX
UNHEX
Xymax Axis
UNHEX
UNHEX
UNHEX
UNHEX
Property Management Company
Number of operating days
183
182
183
182
183
182
183
182
183
182
183
182
183
182
(1) Property-related Revenues
389,434
329,343
98,342
101,703292,944234,983
139,537
127,423- (*7)- (*7)
136,676
142,078
13,14238,603379,062
329,343
88,471
101,703291,899
233,066
139,537
127,423- (*7)- (*7)
136,676
142,078
13,14238,603
Rent (incl. common service fees)
Other Revenues (*2)
10,371
0
9,870
0
1,045
1,917
0
0
- (*7)- (*7)0000(2) Property-related Expenses
96,85393,53520,473
20,15370,193
117,558
27,056
24,608- (*7)- (*7)
60,95558,204
21,053
15,724
Administrative Expenses
13,28815,591
3,902
4,193
12,167
13,0433,684
3,443- (*7)- (*7)
8,743
8,317
8,057
2,678
Utility Charges
29,61023,113
5,453
4,391
22,46519,011
8,586
6,565- (*7)- (*7)
10,102
8,634
3,493
4,450
Property Management Fees
6,489
6,781
1,636
1,551
4,860
7,312
2,474
1,862
- (*7)- (*7)
2,425
2,144
2,290
1,274
Property-related Taxes (*3)
24,916
24,9138,207
8,206
20,293
20,293
11,388
11,388- (*7)- (*7)
9,068
9,071
6,488
6,488
Non-life Insurance Costs
598
522
142
125
555
507
202
184
- (*7)- (*7)
254
233
102
91
Repair Expenses
9,765
10,222
1,132
1,668
9,631
57,390719
1,161- (*7)- (*7)
961
404
391
652
Other Expenses
12,184
12,391
0
17
220
0
0
2
- (*7)- (*7)
29,40029,400229
89292,580
235,808
77,86981,549222,750
117,425
112,480
102,81498,506100,254
75,72083,873-7,911
22,878(3) NOI (＝(1)-(2)) (*5)
583,562
472,912155,312
163,546444,283
235,495
224,346
206,194
196,474
201,059
151,028
168,207-15,779
45,883
Annualized NOINOI Yield (*4)
4.1%
3.4%
5.1%
5.4%
5.4%
2.8%
4.9%
4.5%
6.5%
6.7%
5.3%
5.9%
-0.6%
1.6%
Depreciation and Amortization
67,25767,45917,531
17,673
23,40623,78810,801
11,077- (*7)- (*7)
16,45012,236
9,777
9,829(Reference) Proceeds for Restoration and Repair Work
0
0
0
0
635
882
0
0
- (*7)- (*7)
00
0
33
Proceed s from Amo rtiza ti on of L eashol d and Security Depo si ts
0
0
0
0
0
0
0
0
- (*7)- (*7)
00
00Profits from property-related activities (*1)

Acquisition Price (million yen)(*1) For profits from property-related activities, actual results (excluding Other Revenues and Property-related Taxes) are used and displayed by rounding down to the nearest thousand yen.
(*2) Other Revenues does not include Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*3) Fixed property taxes, city planning taxes and depreciable asset taxes recorded in Property-related Taxes are calculated by converting the actual amount to the number of operating days.
(*4) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the acquisition price.
(*5) NOI in this table is calculated by accounting for Property-related Taxes for “NOI (after deduction of gain on sale)” found on p.38 and so does not equal that figure.
(*6) NKSJ Risk Management, Inc. has prepared for the PML since 10th Fiscal Period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2011).
(*’7) Not disclosed due to tenant's request

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

41

Portfolio Performance Summary (2) (10th-11th Fiscal Period Results by Property)
Daiwa Shibadaimon

Daiwa Misakicho

Daiwa Shimbashi 510

BPS Square

Daiwa Tsukiji

Daiwa Tsukiji 616

Daiwa Tsukishima Bldg.

Property Name

2,578
2,346
2,080
1,560
1,240
2,440
7,840
10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period
Book Value (million yen)
2,480
2,466
2,261
2,247
2,151
2,145
1,418
1,401
1,230
1,224
2,365
2,340
7,404
7,346
Appraisal Value (million yen)
2,789
2,820
2,398
2,410
2,540
2,540
1,660
1,660
1,370
1,370
2,410
2,410
7,720
7,710
Occupancy Rate (%)
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
85.1
100.0
87.0
100.0
100.0
100.0
PML (%) (*6)
3.00
2.99
6.70
6.68
8.10
8.13
7.70
7.67
9.70
9.70
7.70
7.69
10.90
10.89
UNHEX
UNHEX
Property Partners
UNHEX
Xymax Axis
Property Partners
Property Partners
Property Management Company
Number of operating days
183
182
183
182
183
182
183
182
183
182
183
182
183
182
(1) Property-related Revenues
100,676
99,776- (*7)- (*7)
86,632
91,194- (*7)- (*7)
48,37647,742
93,48880,591
288,889284,270
100,676
97,389- (*7)- (*7)
86,632
91,194- (*7)- (*7)
48,37647,742
93,48880,591
288,889284,270
Rent (incl. common service fees)
Other Revenues (*2)
02,387
- (*7)- (*7)00- (*7)- (*7)
0000
00(2) Property-related Expenses
21,66826,095- (*7)- (*7)
17,833
16,685- (*7)- (*7)
12,265
12,952
23,874
21,38253,88549,612Administrative Expenses
5,591
8,891
- (*7)- (*7)
3,938
3,833- (*7)- (*7)
2,442
3,586
6,223
4,858
8,454
8,120
Utility Charges
7,791
6,178
- (*7)- (*7)
5,318
4,969- (*7)- (*7)
3,336
2,814
7,784
6,750
26,21822,382
Property Management Fees
1,890
1,434
- (*7)- (*7)
1,790
1,423- (*7)- (*7)
1,399
1,350
1,885
1,804
4,333
4,312
Property-related Taxes (*3)
5,994
6,014
- (*7)- (*7)
5,967
5,965- (*7)- (*7)
4,182
4,182
7,453
7,453
13,37813,378Non-life Insurance Costs
155
141- (*7)- (*7)
151
139- (*7)- (*7)
75
69
169
155
406
374
Repair Expenses
245
3,434
- (*7)- (*7)
605
294- (*7)- (*7)
828
948
359
359
1,094
1,044
Other Expenses
00- (*7)- (*7)
61
60- (*7)- (*7)
000000(3) NOI (＝(1)-(2)) (*5)
79,00773,681
69,12569,283
68,79974,50847,34049,11036,11034,79069,61459,209235,004
234,657
Annualized NOI
157,582
147,767
137,873
138,948
137,222
149,426
94,422
98,49072,024
69,771
138,848
118,744468,724
470,605
NOI Yield (*4)
6.1%
5.7%
5.9%
5.9%
6.6%
7.2%
6.1%
6.3%
5.8%
5.6%
5.7%
4.9%
6.0%
6.0%
Depreciation and Amortization
14,312
14,395- (*7)- (*7)
6,306
6,416- (*7)- (*7)
7,014
7,022
28,55828,77267,45867,526(Reference) Proceeds for Restoration and Repair Work03,450
- (*7)- (*7)00- (*7)- (*7)
00
0
0
0
0
Proceed s from Amo rtiza tion of L eashold and Security Depo si ts00- (*7)- (*7)00- (*7)- (*7)
000
0
00Profits from property-related activities (*1)

Acquisition Price (million yen)(*1) For profits from property-related activities, actual results (excluding Other Revenues and Property-related Taxes) are used and displayed by rounding down to the nearest thousand yen.
(*2) Other Revenues does not include Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*3) Fixed property taxes, city planning taxes and depreciable asset taxes recorded in Property-related Taxes are calculated by converting the actual amount to the number of operating days.
(*4) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the acquisition price.
(*5) NOI in this table is calculated by accounting for Property-related Taxes for “NOI (after deduction of gain on sale)” found on p.38 and so does not equal that figure.
(*6) NKSJ Risk Management, Inc. has prepared for the PML since 10th Fiscal Period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2011).
(*’7) Not disclosed due to tenant's request

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

42

Portfolio Performance Summary (3) (10th-11th Fiscal Period Results by Property)
Nihonbashi MS Bldg.

Daiwa Azabudai

Daiwa Shibuya SS

Daiwa Nihonbashi Honcho

Daiwa Ginza 1-chome

Daiwa Kyobashi

Sunline Building No. 7

Property Name

2,520
1,600
3,930
7,420
4,620
3,460
2,680
10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period
Book Value (million yen)
2,509
2,501
1,576
1,576
3,854
3,851
7,246
7,218
4,562
4,545
3,409
3,394
2,656
2,651
Appraisal Value (million yen)
2,430
2,420
1,830
1,830
3,950
3,940
7,360
6,980
4,310
4,190
3,350
3,130
2,360
2,280
Occupancy Rate (%)
100.0
100.0
100.0
100.0
100.0
100.0
65.2
73.5
97.4
97.9
100.0
42.1
80.5
79.7
PML (%) (*6)
7.80
7.84
9.60
9.57
8.70
8.67
8.50
8.49
10.20
10.16
10.00
10.04
8.60
8.62
Property Management Company
UNHEX
UNHEX
UNHEX
Xymax Axis
Xymax Axis
UNHEX
UNHEX
Number of operating days
183
182
183
182
183
182
183
182
183
182
183
182
183
182
(1) Property-related Revenues
74,92981,582
65,17965,474
128,897
134,61395,591
113,178
92,480118,811
103,407
72,10775,44072,99874,92981,582
65,17965,474
128,897
134,61395,591
113,178
91,758118,811
103,407
72,10774,54071,939Rent (incl. common service fees)
Other Revenues (*2)
0
0
0
0
0
0
0
0
722
0
0
0
900
1,059
(2) Property-related Expenses
20,832
17,42427,37012,361
28,262
26,48044,20536,82830,70928,05922,756
20,676
26,49840,812Administrative Expenses
5,233
3,704
2,467
2,306
4,294
4,109
14,148
6,947
9,052
4,857
5,994
6,033
4,401
4,435
Utility Charges
5,404
4,863
3,242
2,964
9,889
8,453
10,423
11,816
7,738
6,777
7,547
5,452
5,809
4,999
Property Management Fees
1,933
1,320
1,200
1,200
1,823
2,187
3,796
3,160
2,945
1,803
1,828
1,414
1,236
1,352
Property-related Taxes (*3)
7,189
7,189
5,282
5,280
11,013
11,007
12,73912,739
7,839
7,839
6,994
6,994
14,643
14,643Non-life Insurance Costs
173
157
111
102
187
169
402
355
195
173
180
164
174
158
Repair Expenses
898
188
15,066
508
1,054
554
2,694
1,808
2,938
6,533
210
618
232
15,223
Other Expenses
0
0
0
0
0
0
0
0
0
74
0
0
0
0
(3) NOI (＝(1)-(2)) (*5)
54,09664,15837,80853,112
100,634
108,133
51,38576,35061,77090,75280,651
51,43048,94132,186
Annualized NOI
107,898
128,669
75,411
106,516
200,718
216,860
102,490
153,119
123,203
182,003
160,861
103,143
97,61664,549NOI Yield (*4)
4.3%
5.1%
4.7%
6.7%
5.1%
5.5%
1.4%
2.1%
2.7%
3.9%
4.6%
3.0%
3.6%
2.4%
Depreciation and Amortization
12,598
11,241
7,116
7,353
15,32815,47728,23728,516
18,61918,442
16,797
16,853
9,266
9,363(Reference) Proceeds for Restoration and Repair Work
0
0
0
0
0
0
0
0
0
0
0
0
375
0
Proceed s from Amo rtiza ti on of L eashol d and Security Depo si ts
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Profits from property-related activities (*1)

Acquisition Price (million yen)(*1) For profits from property-related activities, actual results (excluding Other Revenues and Property-related Taxes) are used and displayed by rounding down to the nearest thousand yen.
(*2) Other Revenues does not include Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*3) Fixed property taxes, city planning taxes and depreciable asset taxes recorded in Property-related Taxes are calculated by converting the actual amount to the number of operating days.
(*4) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the acquisition price.
(*5) NOI in this table is calculated by accounting for Property-related Taxes for “NOI (after deduction of gain on sale)” found on p.38 and so does not equal that figure.
(*6) NKSJ Risk Management, Inc. has prepared for the PML since 10th Fiscal Period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2011).
(*’7) Not disclosed due to tenant's request

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

43

Portfolio Performance Summary (4) (10th-11th Fiscal Period Results by Property)
Daiwa Onarimon

Shinjyuku Maynds Tower

SHIBUYA EDGE

Daiwa Kodemmacho

Daiwa Jimbocho

Daiwa Nishishimbashi

Daiwa Kudan

Property Name

13,860133,800
5,900
2,460
4,150
5,000
4,000
10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period
Book Value (million yen)
13,735
13,707132,294
132,218
5,868
5,851
2,461
2,454
4,184
4,162
5,151
5,116
4,038
4,015
Appraisal Value (million yen)
14,60014,400106,000
106,000
4,130
4,060
1,920
1,920
4,340
3,820
5,720
5,680
4,240
3,990
Occupancy Rate (%)
100.0
100.0
99.9
99.9
100.0
100.0
100.0
100.0
100.0
100.0
85.5
79.1
90.7
100.0
PML (%) (*6)
5.50
5.45
6.40
6.42
3.10
3.14
7.70
7.71
5.60
5.58
6.80
6.76
8.00
7.96
Mitsui Fudosan Building Management
Mitsui Fudosan Building Management
Xymax Axis
Xymax Axis
Xymax Axis
Property Partners
Xymax Axis
Property Management Company
Number of operating days
183
182
183
182
183
182
183
182
183
182
110
182
90
182
(1) Property-related Revenues
425,897441,543
2,155,432
2,348,714
126,032
116,564
52,54762,618164,862
160,377
106,011
173,867
56,159118,550
425,897441,543
2,153,082
2,346,390
126,032
111,206
52,54762,618164,862
160,377
106,011
163,664
56,159118,550
Rent (incl. common service fees)
Other Revenues (*2)
0
0
2,350
2,323
0
5,357
0
0
0
0
0
10,20200(2) Property-related Expenses
109,935
113,514805,823
723,474
21,731
26,731
15,362
13,146
20,75321,07918,536
41,7795,698
13,863Administrative Expenses
12,841
12,249179,628
135,080
4,284
7,616
3,742
2,786
6,017
6,033
9,571
16,3102,215
4,693
Utility Charges
22,401
19,522299,905
274,128
7,992
5,678
4,924
4,190
12,392
10,244
5,934
9,717
2,181
7,068
Property Management Fees
4,795
4,429
27,36916,920
2,068
1,943
1,513
1,238
1,647
1,603
2,219
2,918
1,136
1,856
Property-related Taxes (*3)
36,72136,722
259,491
265,758
7,210
7,210
3,849
3,848
0
0
0
77
0
8
Non-life Insurance Costs
585
527
5,063
4,544
150
132
109
95
249
185
216
308
89
156
Repair Expenses
32,58940,062
26,546
19,221
24
4,149
400
165
416
2,774
592
12,44475
80
Other Expenses
0
0
7,817
7,820
0
0
822
822
29
238
3
3
0
0
(3) NOI (＝(1)-(2)) (*5)
315,962
328,029
1,349,609
1,625,239
104,301
89,832
37,18549,471
144,108
139,297
87,474132,087
50,461
104,686
Annualized NOI
630,197
657,860
2,691,844
3,259,409
208,032
180,159
74,167
99,214287,429
279,360
290,256
264,901
204,648
209,948
NOI Yield (*4)
4.5%
4.7%
2.0%
2.4%
3.5%
3.1%
3.0%
4.0%
6.9%
6.7%
5.8%
5.3%
5.1%
5.2%
Depreciation and Amortization
29,29029,371
509,704
515,729
16,642
16,642
8,135
8,150
22,91722,99931,02546,667
11,962
23,926(Reference) Proceeds for Restoration and Repair Work
0
0
7,359
0
0
5,000
0
0
0
0
0
11,11500Proceed s from Amo rtiza ti on of L eashold and Security Depo si ts
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Profits from property-related activities (*1)

Acquisition Price (million yen)(*1) For profits from property-related activities, actual results (excluding Other Revenues and Property-related Taxes) are used and displayed by rounding down to the nearest thousand yen.
(*2) Other Revenues does not include Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*3) Fixed property taxes, city planning taxes and depreciable asset taxes recorded in Property-related Taxes are calculated by converting the actual amount to the number of operating days.
(*4) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the acquisition price.
(*5) NOI in this table is calculated by accounting for Property-related Taxes for “NOI (after deduction of gain on sale)” found on p.38 and so does not equal that figure.
(*6) NKSJ Risk Management, Inc. has prepared for the PML since 10th Fiscal Period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2011).
(*’7) Not disclosed due to tenant's request

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

44

Portfolio Performance Summary (5) (10th-11th Fiscal Period Results by Property)
Daiwa Kayabacho Build.

Jimbocho Place

Daiwa Kinshicho

Daiwa Higashi-Ikebukuro

Benex S-3

Daiwa Shinagawa North

Daiwa Minami-Senba

Property Name

4,950
7,710
4,810
3,653
2,958
5,600
3,550
10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period
Book Value (million yen)
5,625
3,630
3,523
3,495
2,885
2,862
4,552
4,501
7,570
7,539
4,939
4,907
Appraisal Value (million yen)
5,980
3,660
3,587
3,570
3,414
3,570
3,410
3,410
5,770
5,770
3,030
2,920
Occupancy Rate (%)
100.0
100.0
100.0
100.0
97.9
97.9
100.0
95.6
95.2
100.0
91.7
91.7
PML (%) (*6)
5.58
6.13
7.40
7.42
5.60
5.56
5.70
5.66
5.60
5.56
11.60
11.56
Mitsui Fudosan Building Management
Mitsui Fudosan Building Management
Property Management Company
UNHEX
UNHEX
Xymax Axis
UNHEX
Property Partners
Number of operating days
68
64
183
182
183
182
183
182
183
182
183
182
(1) Property-related Revenues- (*7)
29,614
154,430
149,522
141,135
143,306
144,225
158,773
169,428
158,658
112,283
106,209
Rent (incl. common service fees)- (*7)
29,614
154,430
149,522
139,460
143,306
144,225
158,773
167,178
158,658
112,283
106,209
Other Revenues (*2)
- (*7)
0
0
0
1,674
0
0
0
2,249
0
0
0
(2) Property-related Expenses- (*7)
2,877
44,98741,30043,85636,97987,54551,661
62,92750,99449,47735,857Administrative Expenses- (*7)
1,602
13,952
12,452
12,547
9,518
17,271
15,052
12,96414,003
21,673
12,904
Utility Charges- (*7)
507
13,124
10,676
15,65715,01318,096
16,274
15,591
13,527
10,047
9,399
Property Management Fees
- (*7)
644
2,311
2,637
2,557
2,224
4,135
2,430
4,996
2,792
2,696
1,560
Property-related Taxes (*3)
- (*7)
1
13,03813,046
9,687
9,678
16,377
16,28819,36819,365
11,650
11,586
Non-life Insurance Costs- (*7)
55
335
308
314
297
505
463
483
416
322
278
Repair Expenses- (*7)
40
2,224
2,179
3,091
247
31,159
1,151
9,522
879
3,086
129
Other Expenses- (*7)
27
0
0
0
0
0
0
0
9
0
0
(3) NOI (＝(1)-(2)) (*5)
58,587
26,737
109,443
108,222
97,279106,326
56,679107,112106,500
107,664
62,80570,351
Annualized NOI
314,478
152,485
218,289
217,038
194,026
213,236
113,049
214,813
212,419
215,919
125,268
141,088
NOI Yield (*4)
5.6%
4.3%
6.0%
5.9%
6.6%
7.2%
2.3%
4.3%
2.8%
2.8%
2.6%
2.9%
Depreciation and Amortization- (*7)
9,808
29,13028,40029,753
23,52455,93056,47336,92334,86634,191
33,990(Reference) Proceeds for Restoration and Repair Work- (*7)
0
0
0
3,100
0
0
0
9,150
0
0
0
Proceed s from Amo rtiza ti on of L eashol d and Security Depo si ts- (*7)
0
0
0
0
0
0
0
0
0
0
0
Profits from property-related activities (*1)

Acquisition Price (million yen)(*1) For profits from property-related activities, actual results (excluding Other Revenues and Property-related Taxes) are used and displayed by rounding down to the nearest thousand yen.
(*2) Other Revenues does not include Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*3) Fixed property taxes, city planning taxes and depreciable asset taxes recorded in Property-related Taxes are calculated by converting the actual amount to the number of operating days.
(*4) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the acquisition price.
(*5) NOI in this table is calculated by accounting for Property-related Taxes for “NOI (after deduction of gain on sale)” found on p.38 and so does not equal that figure.
(*6) NKSJ Risk Management, Inc. has prepared for the PML since 10th Fiscal Period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2011).
(*’7) Not disclosed due to tenant's request

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

45

Organization of the Asset Management Company
Organization Chart

Company Overview

Shareholders’Shareholders’ Meeting
Meeting
Auditors
Auditors
Board
Board ofof Directors
Directors
Compliance
Compliance
Committee
Committee
Compliance
Compliance Officer
Officer
Representative
Representative
Director
Director
Internal
Internal Control
Control Office
OfficeAcquisitions Team

Marketing Department
 Marketing activities concerning trust Formulation of investment policies

beneficiary rights business Matters relating to the acquisition

 Relation with tenants whose theand disposal of assets
Asset Management Team

President andRepresentative Director

Akira Yamanouchi

Vice President andRepresentative Director

Yoshiki Nishigaki(Head of Advisory Department)

Vice President andRepresentative Director

Yuji Shinozuka(Head of Finance & Business Planning)
Atsuko Takahashi(Head of Investment Management)

Director

Investment
Investment Committee
Committee

Investment Management
Department

Investment Corporation owns theproperties

Directorand management of assets
management of assets
Investment Planning Team Budget and performance

management of the portfolio

Naoyuki Owa(Head of Administration)

Director (non-executive)

Toshihiro Matsui

Director (non-executive)

Hikaru Sakagami

AuditorToshihiko Onishi

Finance Department
Finance and IR Team Matters relating to financing,asset liability management andmanagement of surplus fund
 Matters relating to disclosure, IR

activities, formulation of the IR
strategy and Public Relations

 Formulation of policies on leasing Matters relating to the leasing andCompany Name

Board of Directors and Auditors

Accounting Team Matters relating to financial results

and accounting, cash allotment,
accounting audit, budget andperformance management
 Matters concerting accounting andfinance of the Asst Manager

Address

Daiwa Real Estate Asset Management Co. Ltd.
6-2-1 Ginza, Chuo-ku, Tokyo

Established
Capitalization

October 21, 2004
200 million yen

Representative Director

Akira Yamanouchi

Directors

8 (5 executive, 2 non-executive, 1 auditor)

Employees

40 (as of July 1, 2011)

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

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

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

General Administrative
Department

Business Planning
Department

 Matters relating to the operation of Analysis of real estate market, retailthe general meeting of investors andthe executive officers of theInvestment Corporation
 Matters relating to the operation of

the general meeting ofshareholders, the board of directors
and committees of the AssetManager
 Submission of applications forvarious permits, licenses, approvals,
registrations, etc. stipulated by laws
and regulations
 Storage and management of theimportant documents andinformation
 Matters relating to human resourcesindustry trends and the real estate
investment trust market
 Research and analysis of thebusiness challenge of theInvestment Corporation
 Matters relating to the developmentof annual asset management plans
and medium-term asset
management plans Development and revision of theInvestment Guidelines
 Matters relating to the provision of

new businesses General risk management of theInvestment Corporation

Advisory Department
 Matters relating to advisoryconcerning formulation of
replacement, disposal, or income
and expense plans for customers’
assets Matters relating to advisoryconcerning management, operation,leasing, and maintenance andrenovation of customers’ assets
 Agency or intermediary ontransactions or leasing, etc. of
assets by customers (excluding
businesses pertaining to be Type II
financial instruments business)
 Matters relating to reporting andother duties being conducted forinvestors of private funds

and labor service

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

46

Positioning of Asset Manager within Daiwa Securities Group
Group Structure of Daiwa Securities Group
Daiwa Securities Group Inc.
RetailWholesale

Asset Management

Daiwa Securities

Daiwa Securities
Capital Markets（Daiwa Securities CM)

Daiwa Asset Management

Daiwa CM
Europe Limited
Daiwa CM
Hong Kong Limited

Investment

System / Research

Daiwa Corporate

Daiwa Institute of
Research Holdings

Investment

Daiwa SB Investments

Daiwa Securities
SMBC Principal
Investments

Daiwa Real Estate
Asset Management

Daiwa PI Partners

Daiwa Institute of
Research

DIR Business Innovations

Daiwa CM
America Inc.

 The Daiwa Securities Group promotes the marketing of net increase to individual investors, who really want attractive products that have the potential for stable

management performance.
 Daiwa Real Estate Asset Management aims for long-term and stable provision of attractive management products as the real estate asset managementcompany of the Daiwa Securities Group

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

47

The Daiwa Office Investment Corporation logo has been created.
The logo symbolizes hospitality with an open door and the desire to be a bright andopen investment corporation. We will continue to aim to be a highly-transparent
investment corporation that is further cherished and trusted by our investors andtenants.

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

48