January 14, 2011

Earnings Announcement
for the 10th Fiscal Period(Fiscal Period Ended November 2010)

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The content of this document can be modified or withdrawn without prior notice.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

 10th Fiscal Period Topics4

 Status of Interest-bearing Liabilities25

 Financial Highlights of the 10th Fiscal Period5 Collateral Situation28

 Highlights of Forecasts for the 11th and 12th Fiscal Periods

6 Unitholders

29 Issue and Activities of the Investment Corporation

7

 Competitive Edges

30

 Medium-term Target of Total Acquisition Price8

 Upside Potential

31

Section 2

Section 5

Internal Growth

Appendix Portfolio Map

10 Summary of Results for the 10th Fiscal Period33 Analyses of Leasing Income11 Forecasts (11th and 12th Fiscal Periods)

35

 Status of Shinjuku Maynds Tower

15

 Major Financial Data

36

 Properties Subject to Leasing Improvement16 Appraisal Values at End of Fiscal Period37

 Case Example of Leasing Activities17 Portfolio Performance Summary

39

 Exploitation of New Pipeline44 Organization of the Asset Management Company

45

 Positioning of Asset Manager within Daiwa Securities Group

46

Section 3External Growth The Real Estate Market and Property Acquisitions

19

 Current Portfolio and Acquisition Policy20 Sourcing Strategies

21 Progress on Property Acquisitions

22

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

10th Fiscal Period Topics
10th Fiscal Period Topics
During the 10th Fiscal Period, the occupancy rate, which had fallen to 85.7% as of the end of the 9th Fiscal Period, recovered to 95.9%

In August 2010, the Kyodo Building (Nishishimbashi) was acquired for 5.0 billion yen and in September 2010, Kyodo Building (Kudan Ichigo-kan) was
acquired for 4.0 billion yen

In June 2010, 5.0 billion yen in unsecured investment corporation bonds were issued through a public offering. In September 2010, new unsecured
borrowings of 5.5 billion yen were procured.



In August 2010, a major unitholder, Columbus, sold 70,000 shares, of which 60,000 shares were acquired by Daiwa PI Partners

Status of Shinjuku Maynds TowerThe occupancy rate, which had dropped to 78.1% at the end of the 9th Fiscal Period, recovered to 99.9% as a result of leasing activities that draw on
the Property’s characteristics



Improved the quality of the property by switching some lighting of outside facilities and by upgrading the surveillance camera system

Brand Value Enhancement Activities

In September 2010, the names of 25 buildings were changed, centering on those that were still crowned with the name of the former sponsor, to Daiwa●● Building.



In September 2010, the name of the Investment Corporation was changed to “Daiwa Office Investment Corporation”

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

4

Fiscal Highlights of the 10th Fiscal Period
Results of the 10th Fiscal Period

Status of the 10th Fiscal Period

9th Fiscal Period(ended May 31, 2010)(31 properties)

10th Fiscal Period(ended Nov. 30, 2010)(33 properties)

Operating Revenue¥ 6,985 million¥ 6,424 million▲ ¥ 561million

Operating Cost

¥ 4,026 million¥ 3,942 million▲ ¥ 83million

Operating Income¥ 2,959 million¥ 2,481 million▲ ¥ 477million

Ordinary Income¥ 1,773 million¥ 1,273 million▲ ¥ 500million

Net Income¥ 2,076 million¥ 1,282 million▲ ¥ 794million

395,798 unit

¥395,798 unit-

Dividend per Unit

¥ 5,246¥ 3,240▲ ¥ 2,006

Occupancy Rate

85.7％

95.9%

NOI Yield

3.7％

3.2%

Number of Investment
Unit(Reference)

10th Fiscal Period(ended Nov.30, 2010)(33 properties)

Forecast *of
10 Fiscal Period(32 properties)
th

Operating Revenue

Change Operating revenue for the 10th Fiscal Period decreased despite the acquisitionof 2 properties which added to the revenue due to the leasing income of major
tenants who moved out during the 9th Fiscal Period not entirely recover during
the 10th Fiscal Period Furthermore, although the occupancy rate recovered during the 10th Fiscal

Period, rent revenue did not increase since free rent clauses were attached tocontracts with new tenants and operating revenue dropped 561 million yen to
end at 6,424 million yen

Operating Cost
 Although utility charges rose due to the rise in temperature during the summer,

ChangeOperating Revenue¥ 6,317million¥ 6,424 million¥ 107 million

Net Income¥ 1,257 million¥ 1,282 million¥ 25million

Dividend per Unit

¥ 3,176¥ 3,240¥ 64

Occupancy Rate

91.7％

95.9%

NOI Yield

3.3％

3.2%

and depreciation expenses rose, there was a decrease in expenses forrestoration and repair upon tenants moving out as well as a decrease inmanagement costs for most properties, resulting in operating expenses
decreasing 83 million yen compared to the 9th Fiscal Period to 3,942 million
yen* Announced on June 13, 2010
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 11th and 12th Fiscal Period
Forecasts(as of January 13, 2011)
10th Fiscal Period(ended Nov. 30, 2010)(33 properties)

11th Fiscal Period
Forecast(ended May 30, 2011)(33properties)

12th Fiscal Period
Forecast(ended Nov. 30 2011)(33properties)

Operating Revenue¥ 6,424 million¥ 6,650 million¥ 6,757 million

Operating Cost

¥ 2,481 million¥ 2,546 million¥ 2,655 million

Operating Income¥ 1,273 million¥ 1,300 million¥ 1,427 million

Ordinary Income¥ 1,282 million¥ 1,298 million¥ 1,425 million

Number of Investment
Unit

The 11th Fiscal Period Forecast

Of tenants who moved in during the 9th Fiscal Period or 10th Fiscal Period,
rents will be received from tenants whose free rent period, etc. will end.
Operating revenue for the 11th Fiscal Period is forecast to increase 226 million
yen compared to the 10th Fiscal PeriodA switch will be made from a strategy of prioritizing raising the occupancy rate
to a strategy of improving terms and conditions of contracts with tenants andthe occupancy rate is forecast to drop from 95.9% to 93.4%

Net income is forecast to increase by 15 million yen and dividend per unit will
be 3,280 yen

The 12th Fiscal Period Forecast
395,798 unit

395,798 unit

395,798 unit

Dividend per Unit

¥ 3,240¥ 3,280¥ 3,600

Expected Occupancy
Rate

95.9%

93.4%

94.2%

Expected NOI Yield

3.2%

3.3%

3.4%



Of tenants who moved in during the 10th Fiscal Period, rents from tenants
whose free rent period, etc. will end are expected to increase, but forecasts areconservative in view of rent decreases, cancellation risk, etc. Operating
revenue for the 12th Fiscal Period is forecast to increase 106 million yen
compared to the 11th Fiscal Period.

The occupancy rate of the 12th Fiscal Period is forecast to improve from 93.4%
to 94.2%

Due to decreases of operating expenses, non-operating expenses, etc., net
income is forecast to increase by 126 million yen and dividend per unit will be
3,600 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.

6

Issues and Activities of the Investment Corporation
Balance
Balance Sheet
Sheet ofof thethe 1010thth Fiscal
Fiscal Period
Period(November(November 30,
30, 2010)
2010)（Unit：million yen）

Asset Issue and Activities

Liabilities Issue and Activities Diversify financing means

 Activities of Shinjuku Maynds

Tower

Liabilities

Î Strengthen relationships with tenants
and strive to maintain occupancy rateÎ Continue

implementing
renewalconstructions and strive to enhancethe value of the property

 Rebuilding the Leasing

StrategyÎ While doing the utmost to raise theoccupancy rate of Daiwa Nihombashi
Honcho, etc., aim to improve contract
terms and conditions from a strategy
of prioritizing the occupancy rate Promote property purchasesÎ Acquisition of Kyodo Building (Nishishimbashi) and Kyodo Building (Kudan
Ichigo-kan)Î Raise the pace of acquiring propertiesÎ Raise procurement ability by diversifying

94,498Internal Growth
Status of Shinjuku
Maynds Tower
P15Internal Growth
Leasing Activities
P16～17

lenders and issuing investment corporation
bonds

Financial Strategy
Status of interestbearing liabilities

Assets

P26～28294,562

 Increase in the ratio of unsecured

borrowings
Î Continue acquiring properties by procuring
unsecured borrowings
Î Strive to raise the ratio of unsecured
borrowings by various methods

Net Assets

Net Assets Issues and Activities

200,063

 Stabilize unitholder composition
Financial Strategy

External Growth
Growth throughasset acquisitions

Status ofunitholders
P29

P19～24

Î By carrying out activities to stabilize
unitholder composition or to raise liquidity,
do utmost to develop a new field of
unitholders

Forecast
Forecast EPS
EPS forfor thethe 11
11thth Fiscal
Fiscal Period
Period3,280 yen
Forecast
Forecast EPS
EPS forfor thethe 12
12thth Fiscal
Fiscal Period
Period3,600 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)
400.0

Total Acquisiton Price70.00%LTV (based on acquisiton price)
Expected LTV

350.0

60.00%

300.0

50.00%

250.0

40.00%

200.0
30.00%

150.0

287.0

283.4

265.0

265.0

265.0

269.1

278.1
20.00%

100.0
50.0

79.5

110.8

130.4

138.4

10.00%

0.0

0.00%
Listed1st
Period2nd
Period3rd
Period4th
Period5th
Period6th
Period7th
Period8th
Period9th
Period10th
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.

8Section 2
Internal GrowthPortfolio Map ~ decrease or increase in occupancy rate compared with previous Fiscal Period ~55 Central
Central Wards
Wards ofof TokyoTokyo

As of November 30, 2010

Regional
Regional Cities
CitiesOccupancy rate compared withprevious Fiscal Period

Daiwa Misakicho

Shinjuku Ward

Increase: 12 buildings

Decrease: 3 buildings

Unchanged : 16 buildings

Daiwa Sarugakucho

Daiwa Jimbocho
Kyodo Bldg. (Kudan Ichigo-kan)
Sunline Bldg. No.7
Shinjuku Maynds Tower

ShibuyaWard
SHIBUYAEDGE

Nihonbashi MS Bld.
Tokyo
Station Chuo
Daiwa Nihonbashi Honcho

Daiwa Jingumae
Daiwa Minami Aoyama

Daiwa Ginza

Daiwa Azabudai

Daiwa Minami-Senba

Ward

Daiwa Ginza 1-chome
Daiwa Ginza Annex

Kyodo Bldg. (Nishishimbashi)Daiwa Shibashi510
Daiwa Onarimon
Daiwa A Hamamatsucho
Daiwa Shibuya SS

Shibuya Station

Daiwa Kodenmacho

Chiyoda Ward

Daiwa Kyobashi
BPS Square
Daiwa Tsukiji
Daiwa Tsukiji616
Daiwa Tsukishima

Tokyo
Tokyo Metropolitan
Metropolitan Area
Area

Daiwa Higashi-Ikebukuro

Daiwa Shibadaimon
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.

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

NOI Compared to Previous Fiscal Period

Occupancy Rate(%)(1) The 10thth Fiscal Period

100%
99.0%
95%

97.0%

98.2%

98.3%

97.4%

 The occupancy rate for the 10th Fiscal Period rose for 12 properties,
including Shinjuku Maynds Tower, and recovered to 95.9%

95.9%
97.6%

▲456 million yen

97.7%

 Due to the impact of a drop in existing rents, free rents, etc., the NOI
yield ended at 3.2%

94.2%
93.4%

92.8%

(2) The 11thth Fiscal Period90%
Occupancy Rate
85.7%
85%

(Million y en)
9,000(Yield (%))
9.0%
NOI (Million yen): Rent revenue + Other lease business revenue - Ex penses related to rent business + Depreciation

8,000

8.0%

NOI yield (% ) : NOI / Period average acquisition price

6,895

7,000
6,000

6,373

6,334

①

②

③

7.0%

5,915
6.0%

5,133

4,922
4,465

5,000

4,623

4,743

5.0%

3,974
4,000

3,143

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

PeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriod+158 million yen

 The occupancy rate for the 11th Fiscal Period is estimated to be
93.4% based on expectations on the possibility of the occupancy rateof some properties dropping temporarily, excluding Shinjuku Maynds
Tower Although an increase can be expected in the 11th Fiscal Period inleasing income which will be received from tenants whose free rent
period will end, NOI yield is estimated to remain roughly the same at
3.3%, based on projections of an impact from a drop in existing rents,
etc.

(3)The 12thth Fiscal Period+119 million yen

 The occupancy rate that is projected to decline during the 11th Fiscal
Period is estimated to recover by the 12th Fiscal Period and theoccupancy rate is forecast to be 94.2% in the 12th Fiscal Period
 Although rents are projected to increase due to the end of the freerent period from tenants who move in during the 10th Fiscal Period, aslow recovery is forecast based on a projection of losses from vacantareas, declining rents, and other factors, and NOI yield is forecast to
be 3.4%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.

11Analyses of Leasing Income (2)Contract
Contract Rent*
Rent* Increase
Increase andand Reduction
Reduction

Ratio
Ratio ofof Contract
Contract Rent
Rent Revisions*
Revisions*（Million
yen）
（百万円）
1,200

Increase from newleases

1,100

Increase by new
acquisition

10th Period

55.2%

39.6%

5.2%

Increase fromrent revisions
Decrease fromtenants’ Decrease fromcancellations rent revisions

9th Period

68.5%

28.6%

8th Period

37.5%

2.8%

44.5%

18.1%

1,000

7th Period

51.6%

10.9%

37.5%

900

May 2010
Monthly Contract Rent

Nov. 2010
Monthly Contract Rent

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

0%

20%

40%
Unchanged

60%
Decrease

80%

100%

Increase*Based on leased space

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

12Analyses of Leasing Income (3)＊New
New Leases
Leases andand Cancellations
Cancellations＊(yen/tsubo)(Case)
40
30

33

28,00030

31

24,000

24
17

20
10

Average
Average Contract
Contract Rent
Rent andand Market
Market Rent
Rent

6

5

20,00016,0000

12,000
4th Period

-10
-20
-20

5th Period

6th Period

7th Period

8th Period

9th Period

10th Period

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

-14

-19

* Average of rent that tenants contracted by the end of each Fiscal Period pay

-24

-30
-40

ReasonReason forfor New
New Leases
Leases andand Cancellations
Cancellations

-50
-53

-60
7th Period(Case)

Cost
Reduction

Space
Expansion

Consolidation

New Leases

8

10

4

Cancellations

4

Betterlocation

Other

Total

5

31

3

14

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

8th Period
9th Period
New Leases
Cancellations
Difference between New Leases and Cancellations

Reduction

10th Period

641＊Excluding residenceAnalyses of Leasing Income (4)Major
Major Tenants
Tenants Top
Top 1010 List
List

Tenant Name

Not disclosed *Trend Micro Incorporated
EMC Japan

Property

Pie
Pie Chart
Chart ofof Industries
Industries ofof TopTop 3030 TenantTenantLeased Space(m2)% of Total LeasedSpace

Daiwa Tsukishima

6,379.88

3.6

Shinjuku Maynds Tower

6,309.84

3.6

Shinjuku Maynds Tower

4,980.78

2.8

Daiwa Onarimon

4,963.88

2.8

Sekisui House, Ltd.

Shinjuku Maynds Tower

4,498.57

2.5

Not disclosed *Shinjuku Maynds Tower

4,316.90

2.4

Not disclosed *Shinjuku Maynds Tower

4,114.50

2.3

SUN WAVE CORPORATION

Daiwa Sarugakucho

3,657.43

2.0

Not disclosed *Daiwa Jimbocho

2,932.44

1.6

Shinjuku Maynds Tower

2,892.71

1.6-

45,046.93

25.7

UCC Holdings Co., Ltd.

JR EAST DESIGN CORPORATION
Total

Wholesale Trade
3.3%

Other
12.9%

Other Products
4.6%

Services
29.2%

Precision Instruments
5.2%

Construction
5.7%
Foods
6.2%
Electric Appliances
6.3%

Information &Communication
18.7%
Banks
8.0%

* The leased space of top 30 tenant covers 45.4% of total leased space as of theend of the 10th Fiscal Period** Industries are categorized according to TSE’s 33 industry group.

* 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.

14

Status of Shinjuku Maynds Tower
Present State of the Property

Occupancy Rate of Shinjuku Maynds Tower
100.0%

The occupancy rate, which had significantly declined during the previous fiscal period,
largely improved due to a focus on leasing activities and has now reached fulloccupancy
Implementing switching some lighting of outside facilities, upgrading the surveillancecamera system and renewal constructions are planned to continue in an aim to raise
the added value of Shinjuku Maynds TowerStrengthening of relationships with tenantsImplementing some investments to raise tenant satisfaction

95.0%

(5)

90.0%

(4)
85.0%

(3)

Activities for Improvement of Property Value

80.0%

(2)

Average for Nishi-Shinjuku area office buildings*
Value of properties will be enhanced through activities
such as the renewal of stores on basement floors andcommon-use areas on the 1F

Implementing of renewal constructions on thestandard floors will continue in an aim to raise thevalue of propertiesWhile collaborating with property managementcompanies, the management company will hold directcommunication with tenants so that tenant needs will
be assessed and contribute to raising tenantsatisfaction
Energy data will be analyzed in efforts to conserve
energy and reduce costs

Shinjuku Manynds Tower

75.0%

(1)

70.0%
08.9 08.11 09.1 09.3 09.5 09.7 09.9 09.11 10.1 10.3 10.5 10.7 10.9 10.11* Source: CBRENo.

Announce Date

ReasonNumber of Floor

Occupancy
Rate

(1)

February 1, 2010

Better Location

1.5

78.8%

(2)

June 25, 2010

Space Expansion

1

81.4%

(3)

July 20, 2010

Better Location

1

84.5%

(4)

August 31, 2010

Consolidation

2

91.0%

(5)

October 8, 2010

Space Expansion

2.5

99.4%

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.

15

Properties Subject Leasing Improvement
Daiwa Nihombashi Honcho
(%)
100.0

Daiwa Kyobashi

100.0 100.0

(%)
100.0

Occupancy Rate
Ex pected Occupacy Rate

100.0

100.0

100.0

100.0
88.1

88.1

84.9

65.2

65.0

77.0

65.0

61.0

54.0
Occupancy Rate
Ex pected Occupacy Rate

38.2
30.0

30.0

6th

7th

8th

9th

10th

11th

12th

6th

Period Period Period Period Period Period Period
Location

Nihombashi-Honcho
Chuo-ku

Constructed

January 1964

Total floor area 9,869.38㎡
Acquisition Price 7,420million yen

 4-minute walk from Mitsukoshimae
Station on the Tokyo Metro Hanzomon Lineand Ginza Line Recognized to be a property with highlyconvenient access and high competitiveness

Activities and Future Strategy
 The Property’s large tenant vacated the property during the 9th Fiscal Period at the endof April. Although the occupancy rate fell to 38.2% at the end of May, the rate recovered
to 65.2% at the end of the 10th Fiscal Period as a result of carrying out activities for theproperty as a property subject to improvement that was higher than the 48.2% that was
forecast As a property subject to leasing improvement in continuation from before, collaboration

7th

8th

9th

10th

11th

12th

Period Period Period Period Period Period Period
Location

Hacho-bori Chuo-ku

Constructed

October 1974

Total floor area

4,069.15㎡

Acquisition Price 3,460million yen

3-minute walk from Takaracho Station on
Toei Asakusa Line, 4-minute walk from
Hachobori Station on Tokyo Metro Hibiya
Line, 5minute walk from Kyobashi Station
on Tokyo Metro Ginza Line.
Transportation convenience is well andeasy to walk to Ginza.

Activities and Future Strategy
 Since the main tenant vacated the property, the occupancy rate during the 11th Fiscal

Period is projected to drop to 54.0%
 Aim to recover the occupancy rate by the 12th Fiscal Period while scrutinizing thecreditworthiness of tenants, contract terms and conditions, etc. and focus on finding new
stable tenantswith leasing brokers and property managers will be conducted in striving to recover theoccupancy rate by the 12th Fiscal Period The creditworthiness of tenants, contract terms and conditions, etc. will be scrutinized

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

16

Case Examples of Leasing Activities
Daiwa Ginza 1-chome

Daiwa Jingumae
(%)

(%)
100.0

100.0
97.4

97.4

100.0 100.0100.0

97.0

78.5
90.0

90.7

78.5

78.5

11th

12th

50.0
80.0

80.0

Occupancy Rate
Ex pected Occupancy Rate

78.9

78.9

Occupancy Rate
Ex pected Occupacy Rate

70.0
6th

7th

8th

9th

10th

11th

0.0

0

12th

6th

Period Period Period Period Period Period Period
Location

Ginza 1-chome
Chuo-ku

Construction

January 1962

Total floor area

4,771.31㎡

Acquisition Price 4,620million yen

2-minute walk from Ginza 1-chome Station on
the Tokyo Metro Yurakucho Line, and 4-minute
walk from Kyobashi Station on the Tokyo Metro
Ginza Line
Close to central Ginza and highly competitive
also as office/residential location

Activities and Future Strategy

7th

8th

9th

10th

Period Period Period Period Period Period Period
Location

Jingumae Shibuya-ku

Construction

December 1997

Total floor area

2,673.88㎡



7-minute walk from Gaienmae Station on theTokyo Metro Ginza Line

Office building boasting high visibility from facing
Gaien-nishi Street

Acquisition Price 2,800million yen

Activities and Future Strategy

 The occupancy rate of this property had continued to be low, but the common-use areas

and bathroom areas were renewed.

 Common-use areas were renewed after the tenant who had been renting the entire

building vacated the property

 As a result of planning a leasing campaign, etc., a recovery from the 76.6% occupancy

rate forecast for the end of the 10th Fiscal Period to 97.4% was attained.
 Responded to demands for increasing floor areas from existing tenants Occupancy rate, which had been 0% in the 9th Fiscal Period, recovered to 78.5% as ofthe end of the 10th Fiscal Period as a result of implementing campaigns, etc.
 Creditworthiness of tenants, contract terms and conditions, etc. will be scrutinized in

striving to obtain new stable tenants for the remaining floors

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

17Section 3External 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

30
Number of Transactions
Lending Attitude DI (Real Estate)
Lending Attitude DI (All Industries)

700
Number of Transactions

600

20
10

500

0

400

-10

300

-20

200

-30

100

-40
-50

0
2005 2nd Half 2006 1st Half 2006 2nd Half 2007 1st Half 2007 2nd Half 2008 1st Half 2008 2nd Half 2009 1st Half 2009 2nd Half 2010 1st Half 2010 2nd Half 2011 1st Half 2011 2nd Half

(Billion yen)
350

Subprime Loan
Problem

Boom Period
287.0

300

283.4

265.0

Adjustment Period
265.0

265.0

DI=Diffusion Index (Aboveis easy (accommodating),
whereas below
is severe)(Number)00Expanding Period
269.1

278.1

Total Acquisition Price

250
200
150
100

110.8

138.4

130.4

Aggressive investment
for future growth

79.5

50
0
Listed

1st Period

2nd Period

3rd Period

4th Period

5th Period

6th Period

7th Period

8th Period

9th Period

10th Period

11th Period

12th 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.

19Current Portfolio and Acquisition Policy
Medium-term target to achieve a total acquisition price of 350 billion yen at an early stage
Distribution
Distribution Chart
Chart ofof Portfolio
Portfolio Properties
Properties(Total Floor Area (㎡)Portfolio Properties

120,000

Current Portfolio
 Investment is concentrated in the five central wards of Tokyo.

A Class Buildings

100,000

 Portion of B class buildings are older buildings ((2)).

Investment
Investment Ratio
Ratio

Shinjuku Maynds Tower

Area
Area
80,000 A class buildings* (Shinjuku Maynds Tower ) and B class buildings**.

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

60,000

Ratio
Ratio
91.3%

Acquisition Policy

6.9%
1.7%

Classification
Classification
Ａ
Class
ＡClass

Ratio
Ratio
48.1%

Ｂ
Class
ＢClass51.9%

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

40,000(1)

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

Kyodo Bldg. (Kudan Ichigo-kan）

B Class Buildings

20,000(2)

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

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

Sourcing Strategy
Strengths of the Investment Corporationin Property Acquisition

Property Selling Needs
General Business Company
 Selling properties being discharged to improve balance sheets,
properties being discharged for such reasons as financial
restructuring, etc.

Developer Selling properties with good progress in securing tenants andrecognized to be income-generating properties after development, etc

 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 more advantageous terms than competitors
 Not belonging to a group comprised of real estate companies, etc., allows

for collecting various types of property information
 Strengthen alliance with the Daiwa Securities Group and exert theGroup’s strengths in the areas of property information collection and joint

General Constructor
 Selling properties that were temporarily held for such reasons as thebankruptcy of property owners but are now able to be sold due torecovery in earnings, etc

projects, etc. to proactively take advantage of the marketing ability of the
Daiwa Securities Group

Lender CMBS, etc.
 Selling properties for which the collection of funds would like to bepromoted due to there being no prospects for loans receivable being
repaid, etc.

Fund
 Selling properties from repayment of loans becoming due andbusiness plans reaching the end of term, etc.

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

Recent Property Acquisition (1)Kyodo Building (Nishishimbashi)(This building name will be changed to “Daiwa Nishishimbashi” in the future)
Acquisition Price

5.00 Billion yen

Expected NOI*

276 Million yen

 Convenient Location in Tokyo
The property is located within a 8-minute walk to
Toranomon Station on Tokyo Metro Ginza Line, about a
9-minute walk to Kamiyacho on Hibiya Line and Mita
Station on Tokyo Municipal Toei. Also, taking into
account that the demand for office space in the area,
we are of the opinion that the Property is expected to
be stably operated.

 Redevelopment ProjectIn the surrounding areas of the property, aredevelopment project is underway for Loop Highway 2,
which runs from Toranomon to Shimbashi (commonly
known as “McArthur Road”), as well as for thesurrounding areas. As such, revitalization of the areas
surrounding the property can be expected in the future.
Location

Nishi-shimbashi 3-chome Minato-ku

Site Area

1,138.26㎡

Structure

SRC

Floor

B1/10F

Total Floor Area

6,913.81㎡

Leasable Floor Area 4,812.19㎡* Expected NOI in the press release announced on August 10, 2010

Construction

July 31, 1993

Acquisition Price

5.00 Billion yen

Occupancy Rate

85.5％ (as of Nov.30, 2010)

Date of Delivery

August 13, 2010

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

Recent Property Acquisition (2)Kyodo-Building ( Kudan Ichigo-kan) (This building name will be changed to “Daiwa Kudan” in the future)
Acquisition Price

4.00 Billion yen

Expected NOI*

213 Million yen

 Convenient location in Tokyo
The property is conveniently located in termsof public transportation, which is within a 1minute walk to Kudanshita Station on
Tokyo Municipal Shinjuku Line, the Tokyo
Metro Tozai and Hanzomon Lines.

 Acquisition of property after

renewal＊Remodeling in the elevator hall＊Reinforcement on the rooftop

Location

Kudan Minami 1-chome Chiyoda-ku

Site Area

540.67㎡

Structure

SRC

Floor

9F

Total Floor Area

Renewal of the property was completed by
the seller at the time of its acquisition.
Therefore, competitive leasing activities canbe carried out from the time of its acquisition
despite its building age not being all that new.

*Expected NOI in the press release announced on June
14, 2010

3,679.70㎡

Leasable Floor Area 3,135.95㎡
Construction

March 31, 1987

Acquisition Price

4.00 Billion yen

Occupancy Rate

90.7％ (as of Nov.30 2010)

Settlement Date

September 2, 2010

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Section 4
Financial Strategy

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

Ratio
-to Short-Term Borrowings
Ratio ofof LongLong-toShort-Term
Borrowings(Billion yen)
280
260
240

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

65%

55%

200

50%

Upper limit range LTV in themedium-term target

160
140

4.8% 3.1%
10.3%

17.2%

60%

220

180

10th Fiscal Period

9th Fiscal Period

92.1%

72.5%

45%
40%

LTV Target for the near future

35%
30%

100

25%

80

20%

60

15%

40

10%

20

5%

0

0%

Long-term borrowings

Investment corporation bonds

Ratio
Ratio ofof Fixed
Fixed –– toto Floating
Floating Borrowings
Borrowings
9th Fiscal Period

10th Fiscal Period

42.6%

47.6%

9.8%

43.1%

48.3%

8.6%

1s
tP

er
2 n io ddPeri
3 r oddPeri
4 th odPeri
5 th o dPeri
6 th o dPeri
7 th o dPeri
8 th o dPeri
9 th o dPe
1 0 rio d
th
Pe
ri o
d

120

Current position of long-term borrowings* LTV( based on acquisition price) ＝Total interest-bearing liabilities / Total acquisition price ofproperties held at the end the Fiscal Period

Fixed interest

Floating interest (capped)

Floating interest

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

25

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

Debt
Debt Cost
Cost Rate*
Rate* (annualized)(annualized)（％）

6.0(Million yen）
25,00020,000Aozora Bank (Secured)
Amount： 19,600 million yen
Interest Rate：T+219bps

5.0
4.0
ORIX Trust Bank (Unsecured)
Amount: 1,500million yen
Interest Rate: T+85bps

Shinsei Bank (Secured)
Amount： 7,100 million yen
Interest Rate：L+180bps

Fukuoka Bank (Unsecured)
Amount: 2,000million yen
Interest Rate： T+85bps

3.0
2.0
1.0

19,6004,000
2,000

15,000Shinsei Bank (Unsecured)
Amount：2,000million yen
Interest Rate：T+90bps

0.0
1st 2nd 3rd
4th
5th
6th
7th
8th
9th 10th
Period Period Period Period Period Period Period Period Period Period* Debt Cost Rate (annualized): (Interest Expense + Financial Related Expenses)/
Interest-bearing Liabilities)

1,500
2,000

3,500

10,000

3,000

5,000

13,900

2nd Series of Unsecured
Investment Corporation Bond
Amount: 5,000million yen
Interest Rate：1.87％

Debt
Debt Cost
Cost Simulation
Simulation
100

5,000
7,100
5,500

5,500

50
5,000

3,500

2,000

0
10th Period
Nov. 1011th Period 12th Period 13th Period 14th Period 15th Period 16th Period
Nov. 13
Nov. 11
May 12
Nov. 12
May 13
May 1128th Period
Nov. 19* Assigning a total amount of interest expense and financial related
expenses at 10th Fiscal Period the value of 100. Assume that debt costequal current debt cost to refund liabilities. (excluded new financing)
10th

11th

12th

13th

14th

15th

16th

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

26

Status of Interest-bearing Liabilities (3)(As of November 30, 2010)

Investment Corporation Bonds

List of Interest-bearing Liabilities
Term

LenderLong term borrowings

Current maturities of long term borrowin

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.(*)
Resona Bank, Ltd.
Kansai Urban Banking Corporation
Resona Bank, Ltd.
Mizuho Bank, Ltd.
Total current maturities of long term borrow ings
Shinsei Bank, Ltd.
Aozora Bank, Ltd.
Sumitomo Mitsui Banking Corporation (*)
The Sumitomo Trust and Banking Co., Ltd. (*)
Dev elopment Bank of Japan, Inc. (*)
Mizuho Bank, Ltd.
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
Total long-term borrow ings
Total borrow ings

Balance(million y en)
37.50026.250150.000
7.500
15.000
7.500
7.500
7.500
2,000.000
5,500.000
3,000.000
3,500.000
14,258.750
7,100.000
19,600.000
4,906.250
3,434.375
2,662.500
1,400.000
985.000
1,970.000
985.000
985.000
3,500.000
1,000.000
988.750
2,000.000
5,000.000
2,000.000
1,500.000
60,016.875
74,275.63

Ty pe
Fix edFix edFix edFix edFix edFix edFloat
Float
Fix edFix edFix ed
Float
Float
Float
Fix edFix edFix edFloat
Fix edFix edFix ed
Float
Float
Float
Float
Float
Fix edFloat
Float

Interest Rate

Date of

(%)
1.81%
1.81%
1.54%
1.81%
1.79%
1.79%
T+100bps
T+100bps
1.59%
2.00%
1.90%
T+100bps

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
08/3/2108/6/30
08/8/29
08/9/30

12/9/18
12/9/18
12/9/18
12/9/18
12/11/30
12/11/30
12/11/30
13/2/28
11/3/18
11/6/30
11/8/31
11/9/30

L+180bps
T+219bps
1.81%
1.81%
1.54%
T+125bps
1.81%
1.79%
1.79%
T+100bps
T+100bps
T+100bps
T+100bps
T+90bps

09/2/20
09/5/21
09/9/18
09/9/18
09/9/18
09/9/18

12/2/20
12/5/21
12/9/18
12/9/18
12/9/18
12/9/18

09/9/18
09/11/30
09/11/30
09/11/30
10/2/26
10/2/26
10/2/26
10/9/2
08/9/2
10/9/28
10/9/28

12/9/18
12/11/30
12/11/30
12/11/30
13/2/28
13/2/28
13/2/28
13/7/31
13/8/30
13/9/30
13/9/30

2.29%
T+85bps
T+85bpsDue date

Term

Balance

LenderTy pe(million y en)

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)
Name of Financial Institution

Balance

Share (% )Aozora Bank

(million yen)
23,100.000

Shinsei Bank

9,100.000

11.0

Kansai Urban Banking Corporation

5,500.000

6.6

Resona Bank

5,000.000

6.0

American Life Insurance Company

5,000.000

6.0

Sumitomo Mitsui Banking Corporation

4,943.750

6.0Mizuho Bank

4,900.000

5.9

Sumitomo Trust and Banking

3,460.625

4.2

Development Bank of Japan

2,812.500

3.4

Fukuoka Bank
Chuo Mitsui Trust and Banking

2,000.000
1,985.000

2.4
2.4

27.9

Orix Trust Bank

1,500.000

1.8

Shizuoka Bank

1,000.000

1.2

Kagawa Bankl

996.250

1.2

Gunma Bank

992.500

1.2

Taiyo Life Insurance

992.500

1.2

77 Bank992.500

1.2

Investment corporation bonds

8,500.000

10.3

82,775.625

100.0

Total

（*）Portions of long-term installment loans that are due within 1 year have been categorized as
current maturities of long term borrowings.

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Collateral Situation
No.
1

2

3

Properties
Daiwa Onarimon

Borrowingdate

Repayment
date

Pledger

08/9/2

13/8/30

American Life
Insurance
Company

08/3/21

11/3/18

Risona Bank

08/6/30

11/6/30

Kansai Urban
Bank

Daiwa Minami Aoyama
SHIBUYA EDGE

Properties

Borrowingdate

Repayment
date

Daiwa A Hamamatsucho
Daiwa Shibadaimon

SMBC

Daiwa Shinbashi510
Daiwa Kinshicho
9

Nihonbashi MS Bldg.

4

Daiwa Shinagawa North

08/8/29

11/8/31

Risona Bank

Daiwa Azabudai

5

Daiwa Shibaura

08/9/30

11/9/30Mizuho Bank

Daiwa Shibuya SS

6Shinjuku Maynds Tower （1/7）

09/2/20

12/2/20

Shinsei Bank

Daiwa Nihonbashi Honcho

Daiwa Ginza

Daiwa Ginza 1chome

Daiwa Ginza Annex

Shinjuku Maynds Tower （1/7）

Sumitomo Trust
09/9/18

12/9/18

10

Daiwa Higashi Ikebukuro
Daiwa Tsukiji

09/5/21

12/5/21

12/11/30

10/2/26

13/2/28

Aozora Bank
Shizuoka Bank
Kagawa Bank

Shinjuku Maynds Tower （1/7）
11Daiwa Kyobashi

Daiwa Sarugakucho

77 Bank

09/11/30

Aozora Bank

Daiwa Tsukisihima

8

Shinjuku Maynds Tower （1/7）

Development
Bank of Japan

Chuo-Mitsui TrustBank
Taiyo Life
Gunma Bank

Daiwa Jingumae

7

Pledger

Daiwa Misakicho

Daiwa Tsukiji616
Sunline 7 Bldg.

No.

Daiwa Minami-Senba

Shinjuku Maynds Tower （1/7）

―

―

―

Shinjuku Maynds Tower（1/7）

Daiwa Jimbocho

―

―

―

BPS Square

Kyodo Building (Nishishimbashi)

―

―

―

Kyodo Building (Kudan Ichigo-kan)

―

―

―

Bennex S-3

09/9/18

12/9/18

Mizuho Bank

Daiwa Kodenmacho

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

Unitholders
Current State of Unitholders

List of Top 10 Investors

 Columbus sold 70 thousand investment units last.

No.

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

Group Inc. purchased 60 thousand investment units sold by Columbus.

Unitholders’ Share by Investor Typethth

10 Fiscal
PeriodNumber ofUnit

9 FiscalPeriodNumber of
Unit

Change of
Unit

Individuals

39,65842,527-2,869

10.0%

Bank

1,611

1,611

0

0.4%

116,311

107,267+9,04429.4%Life Insurance

222

313

-91

0.1%

Non-life Insurance

5,599

5,599

0

1.4%

Other Financial Institutions

1,964

2,579

-615

0.5%

Other Domestic Corporation

133,033

143,182-10,149

33.6%

Foreigner

43,90539,589+4,316

11.1%

Securities

53,495

53,131

+364

13.5%

395,798

395,7980

100.0%

Investor Type

Trust Bank

Total

Rate

10th Fiscal 9th Fiscal
PeriodPeriodChange of
Number of Number of
Unit
Unit
Unit

Rate

1

K.K. Columbus

68,905

138,905-70,000

17.41%

2

Daiwa PI Partners Co. Ltd.

60,0000+60,000

15.16%

3

Daiwa Securities Group Inc.

51,89351,8930

13.11%

4

Japan Trustee Services Bank, Ltd.
(Trust Account)

48,07829,593+18,485

12.15%

5

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

35,542

13,050+22,492

8.98%

6

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

23,45020,905+2,545

5.92%

7Goldman Sachs International

7,803

9,774

-1,971

1.97%

8

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

7,695

12,376-4,681

1.94%

9The Fuji Fire and Marine InsuranceCo., Ltd.

5,599

5,599

0

1.41%

10

Deutsche Bank AG London-PB NonTreaty Clients 613

5,100

2

+5,098

1.29%

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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

 Increase young staff with a high level of motivation from the Daiwa
Securities Group Obtain excellent human resources from outside

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

 Establish a medium-term business plan and clarify goals

new business stages

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

30

Upside Potential█

Internal Growth → Increase of leasing income due to the ending of free rent periods, etc.
¾

Due to the ending of free rent periods, etc. of new tenants who moved in during the 9th Fiscal Period or 10th Fiscal Period, leasing
income will increase in phases from the 11th Fiscal Period and is expected to cause an increase in income until the 14th Fiscal Period¾

Enhancement of relationships with tenants and a lot of efforts to avoid rent decreased, losses from vacant areas, etc. will achieve astable profit.
(In the 11th Fiscal Period and 12th Fiscal Period leasing income is forecast to increase due to an increase in tenants whose free rent
period, etc. will end, but the disclosure includes rent decreases and forecasts of losses from vacant areas as well as forecasts oftenants moving in for these fiscal periods)█

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

By taking advantage of the low LTV, acquisitions of properties will be conducted byAcquisition
price

Total
acquisition
price

LTV*

Share of
Shinjuku
Maynds Tower

with LTV at 44%, which is within the LTV target range on a medium- to long-term¥ 22.5 billion¥ 300.7billion

35%

44.5％

perspective¥ 50.0 billion¥ 328.2 billion

40%

40.8％

Share of Shinjuku Maynds Tower will be reduced through the acquisition of prime¥ 71.8 billion¥ 350.0 billion

44%

38.2％

properties to improve earnings structure¥ 112.5 billion¥ 390.7 billion

50%

34.2％

procuring debts¾¾

Medium-term goal to achieve a total acquisition price of 350 billion yen at an early stage*Based on total acquisition price█Financial Strategy → Reduction of debt costs¾

Debt costs would significantly be reduced if high cost borrowings that are due during the 13th Fiscal Period are procured at current fundprocurement costs¾

Reduction of debt costs are expected to have a positive impact beginning from the dividends of the 14th Fiscal Period

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

31Section 5
AppendixSummary of Results for the 10th Fiscal Period (1) ~Balance Sheet~
Comparison with Results of the 9th Fiscal Period
9th Fiscal Period
As of May 31, 2010
Million Yen

Cash and Deposits in Trust
Consumption Taxes Receivable
Other Current Assets
Fixed Assets
Intangible Fixed Assets
Buildings Held in Trust

AssetsLand Held in Trust
Other Tangible Fixed Assets
Intangible Fixed Assets
Leasehold Rights in Trust
Other Intangible Fixed Assets
Investments and Other Assets(%)

17,178

6.1%

19,792

11,2904.0%

13,191

(%)

3,882

1.4%

16,103

Trade Payables

510

0.2%

593

Current Liabilities

1.7%

5,312

2,258

0.8%

14,258

32

0.0%

119

Other Payables

269

0.1%

237

1,142

0.4%

1,168

Rents Received in Advance

652

0.2%

807

266,66393.9%

274,719

93.3%

Other Current Liabilities

191

0.1%

206

260,901

91.9%

269,274

91.4%

79,12627.9%

78,395

48,16317.0%

50,518Investment Corporation Bonds Issued

3,500

1.2%

8,500

Long-term Debt

66,65023.5%

60,016

Leasehold and Security Deposits Received

4,892

1.7%

5,375

Leasehold and Security Deposits Received in Trust

4,075

1.4%

4,496

8

0.0%

6

Fixed Liabilities

5.5%

26.6%

212,726

74.9%

218,730

11

0.0%

24

4,972

1.8%

4,978

4,970

1.8%

4,970

2

0.0%

8

Total Liabilities

83,00929.2%

94,498Paid-in Capital

198,780

70.0%

198,780

Retained Earnings

2,076

0.7%

1,282

200,85770.8%

200,06367.9%

283,866

100.0%

294,562100.0%

0.3%

466

113

0.0%

113

Long-term Prepaid Expenses

654

0.2%

334

Other Investments and Other Assets

21

0.0%

18

24

0.0%

51

Total Assets

Million Yen

4,713

789

Investment Corporation Bond Issuance Costs

6.7%

(%)

10th Fiscal Period
As of Nov.30, 2010

Current Maturities of Long-term Borrowings

Leasehold and Security Deposits Paid in Trust

Deferred Assets

Million Yen

Liability

Cash and Deposits

Million Yen

24

0.0%

51

283,866

100.0%

294,562

1.7%

Other Fixed Liabilities

0.2%

CapitalCurrent Assets(%)

9th Fiscal Period
As of May 31, 2010

10th Fiscal Period
As of Nov.30, 2010

Total Capital
Total Liabilities and Capital

32.1%

0.0%
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.

33

Summary of Results for the 10th Fiscal Period (2) ~ Profit-and-Loss Statement~
Comparison with Results of the 9th Fiscal Period
9th Period(May 31, 2010)

10th Period(Nov. 30, 2010)

ChangeNumber of Properties (at period-end)

31

33

2

Effective Number of Days of Investment

182

183

1

Operating Revenues (A)

6,985

6,424

? 561

―

―

―

4,026

3,942

? 83

Rental Business Expenses(excluding depreciation)

2,063

1,958

? 104

Depreciation

1,184

1,235

+ 50

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

3,737

3,229

? 507

Operating Income (A-B)

2,959

2,481

Non-operating Expenses

1,192Interest Expense (including cap amortization)
Financing Related Expenses

Gain on Sale
Operating Expenses (B)Comparison with Forecasts
10th Period
Forecast(July 13, 2010)

10th Period(Nov. 30, 2010)

ChangeNumber of Properties (at period-end)

32

33

1

Effective Number of Days of Investment

183

183

－

Operating Revenues (A)

6,317

6,424

+ 107

―

―

―

3,851

3,942

+ 91

Rental Business Expenses(excluding depreciation)

1,854

1,958

+ 104

Depreciation

1,232

1,235

+3

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

3,229

3,229

+0

? 477

Operating Income (A-B)

2,465

2,481

+ 16

1,212

+ 20

Non-operating Expenses

1,206

1,212

+6

768

811

+ 42

Interest Expense (including cap amortization)

806

811

+5

420

391

? 29

Financing Related Expenses

390

391

+1

1,273

? 500

Ordinary Income

1,259

1,273

+ 14

―

9

+9

1,257

1,282

+ 25

395,798uit

395,798uit

3,176

3,240

Ordinary Income

Gain on Sale
Operating Expenses (B)Extraordinary Income

303

9

? 294

Extraordinary Income

Net Income

2,076

1,282

? 794

Net Income

395,798unit

395,798unit

5,246

3,240

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

Investment Units Issued and Outstanding? 2,006

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.

+64

34

Forecasts (11th and 12th Fiscal Period) ~ Profit-and-Loss Statement~
Forecast for the 11th and 12th Fiscal Period
Unit: Million Yen (excluding the number of investment units and cash dividends)

10th Period(Nov. 30, 2010)

11th Period Forecast(May 31, 2011)

12th Period Forecast(Nov. 30, 2011)

Number of Properties (at period-end)

33

33

33

Effective Number of Days of Investment

183

182

183

Operating Revenues (A)

6,424

6,650

6,757

―

―

―

3,942

4,104

4,102

Rental Business Expenses (excluding depreciation)

1,958

2,027

2,014

Depreciation

1,235

1,279

1,285

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

3,229

3,343

3,457

Operating Income (A-B)

2,481

2,546

2,655

Non-operating Expenses

1,212

1,245

1,228

Interest Expense (including cap amortization)

811

827

822

Financing Related Expenses

391

406

394

1,273

1,300

1,427

9

―

―

1,282

1,298

1,425

395,798unit

395,798unit

395,798unit

3,240

3,280

3,600

Gain on Sale
Operating Expenses (B)Ordinary Income
Extraordinary 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.

35

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

Unit

6th Period 7th Period 8th Period 9th Period 10th Period

Day

183

182

183

182

183

Property

30

30

30

31

33

%

97.6

97.7

92.8

85.7

95.9

Average acquisition priceMillion yen

272,452

265,045

265,045

266,937

274,167

NOI (after deduction of gain on sale)

Million yen

6,373

6,334

5,915

4,922

4,465

Funds from operation (FFO)

Million yen

 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
3,592

4,338

3,890

3,261

2,518

Return on asset (ROA)

%

3.3

2.2

1.9

1.3

0.9

Return on equity (ROE)

%

5.6

3.2

2.7

2.1

1.3

 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.

Capital adequacy ratio at end of period

%

72.8

69.6

70.2

70.8

67.9

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

%

22.0

25.4

25.3

25.5

28.1

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

36

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 9th Period(Nov.30, 2010)(May 31, 2010)

Compared to
End of 9th Period
Difference

Change

Major
ReasonAcquisition
Price

Compared to
Acquisition Price
Difference

Cap Rate

Change 10th Period 9th Period

Daiwa Ginza

14,00014,600

-600

-4.1%

14,100

-100

-0.7%

4.6%

4.6%

Daiwa Ginza Annex

2,920

3,030

-110

-3.6%

3,050

-130

-4.3%

4.5%

4.5%

Daiwa Shibaura

7,087

7,430

-343

-4.6%

8,265

-1,178-14.3%

5.2%

5.2%

Daiwa Minami Aoyama

4,000

4,350

-350

-8.0%

4,550

-550

-12.1%

4.9%

4.8%

Daiwa Sarugakucho

3,350

3,350

0

0.0%

3,000

350

11.7%

5.7%

5.7%

Daiwa A Hamamatsucho

2,854

2,860

-6

-0.2%

2,865

-11

-0.4%

5.1%

5.1%

Daiwa Jingumae

2,010

1,940

70

3.6%

2,800

-790

-28.2%

4.7%

4.7%

Daiwa Shibadaimon

2,789

2,812

-23

-0.8%

2,578

211

8.2%

5.1%

5.1%

Daiwa Misakicho

2,398

2,392

6

0.3%

2,346

52

2.2%

5.3%

5.3%

Daiwa Shimbashi 510

2,540

2,560

-20

-0.8%

2,080

460

22.1%

5.2%

5.2%

BPS Square

1,660

1,650

10

0.6%

1,560

100

6.4%

5.3%

5.3%

Daiwa Tsukiji

1,370

1,390

-20

-1.4%

1,240

130

10.5%

5.2%

5.2%

Daiwa Tsukiji 616

2,410

2,600

-190

-7.3%

2,440

-30

-1.2%

5.1%

5.1%

Daiwa Tsukishima Bldg.

7,720

7,690

30

0.4%

7,840

-120

-1.5%

5.3%

5.3%

Nihonbashi MS Bldg.

2,430

2,490

-60

-2.4%

2,520

-90

-3.6%

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

3,950

0

0.0%

3,930

20

0.5%

5.0%

5.0%

(2)

(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.

37

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 9th Period(Nov.30, 2010)(May 31, 2010)

Compared to
End of 9th Period
Difference

Change

Major
ReasonAcquisition
Price

Compared to
Acquisition Price
Difference

Cap Rate

Change 10th Period 9th Period

Daiwa Nihonbashi Honcho

7,360

8,070

-710

-8.8%

(1)

7,420

-60

-0.8%

5.1%

5.1%

Daiwa Ginza 1-chome

4,310

4,550

-240

-5.3%

(1)

4,620

-310

-6.7%

4.8%

4.8%

Daiwa Kyobashi

3,350

3,550

-200

-5.6%

(3)

3,460

-110

-3.2%

5.0%

5.0%

Sunline Building No. 7

2,360

2,450

-90

-3.7%

2,680

-320

-11.9%

5.0%

5.0%

Daiwa Onarimon

14,60015,100

-500

-3.3%

13,860

740

5.3%

4.9%

4.9%

Shinjyuku Maynds Tower

106,000

106,0000

0.0%

133,800-27,800-20.8%

4.0%

4.0%

SHIBUYA EDGE

4,130

4,220

-90

-2.1%

5,900

-1,770-30.0%

4.6%

4.6%

Daiwa Kodemmacho

1,920

1,950

-30

-1.5%

2,460

-540

-22.0%

5.3%

5.3%

Daiwa Jimbocho

4,340

4,290

50

1.2%

4,150

190

4.6%

5.2%

5.2%

Kyodo Building (Kudan Ichigo-kan)**

4,240

4,210

30

0.7%

4,000

240

6.0%

5.0%

5.0%

Kyodo Building (Nishishimbashi)**

5,720

5,710

10

0.2%

5,000

720

14.4%

5.0%

5.0%

Daiwa Kinshicho

3,587

3,542

45

1.3%

3,653

-66

-1.8%

5.6%

5.6%

Daiwa Higashi-Ikebukuro

3,414

3,417

-3

-0.1%

2,958

456

15.4%

5.4%

5.4%

Benex S-3

3,410

3,380

30

0.9%

4,950

-1,540-31.1%

5.8%

5.8%

Daiwa Shinagawa North

5,770

5,710

60

1.1%

7,710

-1,940-25.2%

5.2%

5.2%

Daiwa Minami-Senba

3,030

3,500

-470

-13.4%

4,810-1,780-37.0%

5.5%

5.5%

242,859

246,573-3,714-1.5%

278,195-35,336-12.7%

-

-

Total

(1)

* Major Reason : (1) Decrease in market rent (2) Increase in cap-rate (3) Increase in cancellation notices•**Substitute appraisal value at the time of acquisition for appraisal value at the end of 9th 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.

38

Portfolio Performance Summary (1) (9th-10th Fiscal Period Results by Property)
Daiwa Ginza

Daiwa Ginza Annex

Daiwa Shibaura

Daiwa Minami Aoyama

Daiwa Sarugakucho

Daiwa A Hamamatsucho

Daiwa Jingumae

3,050
9th Period
10th Period
2,965
2,952
3,030
2,920
86.5
86.5
－
7.5
UNHEX
182
183
92,132
98,342
92,132
88,47109,870
23,816
20,473
5,949
3,902
4,863
5,453
1,600
1,636
7,662
8,207
146
142
3,594
1,132
0
0
68,316
77,869137,006
155,312
4.5%
5.1%
17,441
17,531
2,700
0
0
0

8,265
9th Period
10th Period
8,164
8,154
7,430
7,087
99.1
97.1
－
5.1
Xymax Axis
182
183
288,493292,944287,228
291,899
1,265
1,045
76,60070,193
14,171
12,16719,003
22,465
4,993
4,860
19,511
20,293566
555
18,134
9,631
220
220
211,893
222,750424,950444,283
5.1%
5.4%
23,16823,406
392
635
0
0

4,550
9th Period
10th Period
4,513
4,514
4,350
4,000
100.0
100.0
－
12.8
UNHEX
182
183
138,229
139,537
138,229
139,5370024,662
27,056
3,509
3,684
6,733
8,586
2,125
2,474
10,975
11,388
205
202
1,113
719
0
0
113,567
112,480
227,757
224,346
5.0%
4.9%
10,557
10,801
0
0
0
0

3,000
9th Period
10th Period
2,987
2,976
3,350
3,350
100.0
100.0
－
9.8
UNHEX
182
183
127,876
128,993
127,876
128,9930026,78630,487
5,412
5,394
7,497
8,712
1,918
1,934
3,064
3,087
188
185
238
2,388
8,467
8,784
101,090
98,506
202,736
196,474
6.8%
6.5%
11,777
11,801
0
0
0
0

2,865
9th Period
10th Period
2,839
2,831
2,860
2,854
100.0
100.0
－
6.0
UNHEX
182
183
145,731
136,676
145,720
136,67610
062,611
60,955
8,867
8,743
8,430
10,102
4,588
2,425
9,059
9,068
258
254
2,007
961
29,40029,40083,12075,720166,696
151,028
5.8%
5.3%
16,234
16,450
0
0
0
0

2,800
9th Period
10th Period
2,763
2,766
1,940
2,010
0.0
78.5
－
12.0
UNHEX
182
183
72,89813,142
72,89813,1420049,002
21,053
3,846
8,057
5,509
3,493
1,288
2,290
6,268
6,488
105
102
31,727391
258
229
23,896-7,911
47,922-15,779
1.7%
-0.6%
9,427
9,777
35,0000
00Property Name

14,100
9th Period
10th Period
Book Value (million yen)
13,74913,688
Appraisal Value (million yen)
14,60014,000Occupancy Rate (%)
89.2
91.1
－
PML (%) (*6)
9.2
Property Management Company
UNHEX
Number of operating days
182
183(1) Property-related Revenues
370,933
389,434
370,933
379,062
Rent (incl. common service fees)
Other Revenues (*2)
0
10,371(2) Property-related Expenses
86,31696,853Administrative Expenses
13,605
13,288
Utility Charges
25,471
29,610Property Management Fees
8,309
6,489
Property-related Taxes (*3)
23,61024,916
Non-life Insurance Costs
615
598
Repair Expenses
2,519
9,765
Other Expenses
12,183
12,184(3) NOI (＝(1)-(2))
284,617292,580
Annualized NOI
570,798
583,562NOI Yield (*4)
4.0%
4.1%
Depreciation and Amortization
67,066
67,257(Reference) Proceeds for Restoration and Repair Work00
Proceed s from Amo rtiza ti on of L eashol d and Security Depo si ts
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.36 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 (January 2011) and 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.

39

Portfolio Performance Summary (2) (9th-10th Fiscal Period Results by Property)
Daiwa Shibadaimon

Daiwa Misakicho

Daiwa Shimbashi 510

BPS Square

Daiwa Tsukiji

Daiwa Tsukiji 616

Daiwa Tsukishima Bldg.

2,346
9th Period
10th Period
2,274
2,261
2,392
2,398
100.0
100.0
－
6.7
UNHEX
182
183
84,89687,04384,89687,0430
0
17,965
17,917
2,879
2,872
5,417
6,928
1,271
1,306
5,590
5,673
124
122
2,683
1,015
0
0
66,931
69,125
134,229
137,873
5.7%
5.9%
14,08314,091
0
0
0
0

2,080
9th Period
10th Period
2,138
2,151
2,560
2,540
88.2
100.0
－
8.1
Property Partners
182
183
86,376
86,632
85,68886,632688
022,238
17,833
5,125
3,938
4,106
5,318
1,331
1,790
5,722
5,967
153
151
5,737
605
60
61
64,13868,799128,629
137,222
6.2%
6.6%
5,825
6,306
0
0
0
0

1,560
9th Period
10th Period
1,435
1,418
1,650
1,660
100.0
100.0
－
7.7
UNHEX
182
183
55,32055,32055,32055,320
0
0
6,528
7,979
0
0
0
0
655
448
5,414
5,481
133
131
324
1,917
0
0
48,792
47,34097,852
94,422
6.3%
6.1%
17,33817,340
0
0
0
0

1,240
9th Period
10th Period
1,236
1,230
1,390
1,370
85.1
85.1
－
9.7
Xymax Axis
182
183
50,762
48,37650,762
48,37600
11,21812,265
2,593
2,442
2,913
3,336
1,223
1,399
3,994
4,182
77
75
416
828
0
0
39,544
36,11079,30572,024
6.4%
5.8%
7,276
7,014
0
0
0
0

2,440
9th Period
10th Period
2,389
2,365
2,600
2,410
100.0
87.0
－
7.7
Property Partners
182
183
99,18893,48899,18893,4880022,42823,874
5,195
6,223
6,413
7,784
1,960
1,885
7,451
7,453
171
169
1,236
359
0
0
76,76069,614
153,941
138,848
6.3%
5.7%
28,501
28,558
0
0
0
0

7,840
9th Period
10th Period
7,470
7,404
7,690
7,720
100.0
100.0
－
10.9
Property Partners
182
183
282,883
288,889
282,883
288,8890052,26653,885
9,172
8,454
20,933
26,218
4,687
4,333
12,96813,378
413
406
4,092
1,094
0
0
230,617
235,004
462,500
468,724
5.9%
6.0%
67,13867,45800
00Property Name

2,578
9th Period
10th Period
Book Value (million yen)
2,492
2,480
Appraisal Value (million yen)
2,812
2,789
Occupancy Rate (%)
100.0
100.0
－
PML (%) (*6)
3.0
Property Management Company
UNHEX
Number of operating days
182
183(1) Property-related Revenues
104,719
100,676
Rent (incl. common service fees)
104,719
100,676
Other Revenues (*2)00(2) Property-related Expenses
32,325
21,668Administrative Expenses
5,516
5,591
Utility Charges
6,375
7,791
Property Management Fees
1,561
1,890
Property-related Taxes (*3)
5,730
5,994
Non-life Insurance Costs
158
155
Repair Expenses
12,983245
Other Expenses
0072,39479,007(3) NOI (＝(1)-(2))
Annualized NOI
145,186
157,582
NOI Yield (*4)
5.6%
6.1%
Depreciation and Amortization
14,26914,312(Reference) Proceeds for Restoration and Repair Work00
Proceed s from Amo rtiza ti on of L eashol d and Security Depo si ts
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.36 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 (January 2011) and 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.

40

Portfolio Performance Summary (3) (9th-10th 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

1,600
9th Period
10th Period
1,576
1,576
1,830
1,830
100.0
100.0
－
9.6
UNHEX
182
183
60,48065,17959,09965,1791,380
016,827
27,370
3,064
2,467
2,573
3,242
1,530
1,200
5,063
5,282
113
111
4,481
15,0660043,65337,80887,54475,411
5.5%
4.7%
6,939
7,116
0
0
0
0

3,930
9th Period
10th Period
3,865
3,854
3,950
3,950
100.0
100.0
－
8.7
UNHEX
182
183
110,651
128,897
110,151
128,897499
055,68328,262
4,679
4,294
7,946
9,889
5,683
1,823
10,297
11,013
191
187
26,8851,054
0
054,968100,634
110,237
200,718
2.8%
5.1%
15,105
15,32828,2980
0
0

7,420
9th Period
10th Period
7,264
7,246
8,070
7,360
38.2
65.2
－
8.5
Xymax Axis
182
183
230,343
95,591
230,343
95,5910039,224
44,2059,171
14,14812,372
10,423
3,759
3,796
12,224
12,739
413
402
1,283
2,694
0
0
191,119
51,385383,289
102,490
5.2%
1.4%
28,05528,237
0
0
0
0

4,620
9th Period
10th Period
4,536
4,562
4,550
4,310
78.9
97.4
－
10.2
Xymax Axis
182
183
146,489
92,480120,366
91,75826,122722
28,44630,709
6,555
9,052
6,224
7,738
2,070
2,945
7,281
7,839
199
195
6,040
2,938
74
0
118,043
61,770236,734
123,203
5.1%
2.7%
19,256
18,619
4,500
0
0
0

3,460
9th Period
10th Period
3,424
3,409
3,550
3,350
88.1
100.0
－
10.0
UNHEX
182
183
115,383
103,407
112,089
103,4073,293
020,43222,756
4,700
5,994
6,352
7,547
1,864
1,828
6,653
6,994
184
180
678
210
0
0
94,95180,651
190,424
160,861
5.5%
4.6%
16,191
16,797
0
0
0
0

2,680
9th Period
10th Period
2,663
2,656
2,450
2,360
79.7
80.5
－
8.6
UNHEX
182
183
54,77675,44054,76374,54013900
24,71926,498
4,462
4,401
4,387
5,809
1,288
1,236
13,632
14,643
177
174
771
232
0
0
30,057
48,941
60,27897,616
2.2%
3.6%
9,170
9,266
0
375
0
0

Property Name

2,520
9th Period
10th Period
Book Value (million yen)
2,520
2,509
Appraisal Value (million yen)
2,490
2,430
Occupancy Rate (%)
100.0
100.0
－
7.8
PML (%) (*6)
UNHEX
Property Management Company
Number of operating days
182
183(1) Property-related Revenues
78,65574,92977,10774,929Rent (incl. common service fees)
Other Revenues (*2)
1,548
0(2) Property-related Expenses
25,002
20,832Administrative Expenses
4,882
5,233
Utility Charges
4,551
5,404
Property Management Fees
1,725
1,933
Property-related Taxes (*3)
7,027
7,189
Non-life Insurance Costs
176
173
Repair Expenses
6,503
898
Other Expenses
1350(3) NOI (＝(1)-(2))
53,65354,096
Annualized NOI
107,601
107,898
NOI Yield (*4)
4.3%
4.3%
Depreciation and Amortization
17,107
12,598(Reference) Proceeds for Restoration and Repair Work
6,990
0Proceed s from Amo rtiza tion of L eashold and Security Depo sits
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.36 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 (January 2011) and 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.

41

Portfolio Performance Summary (4) (9th-10th Fiscal Period Results by Property)
Daiwa Onarimon

Shinjyuku Maynds Tower

SHIBUYA EDGE

133,800
9th Period
10th Period
132,676
132,294
106,000
106,000
78.1
99.9
－
6.4
Xymax Axis
182
183
2,452,626
2,155,432
2,450,303
2,153,082
2,323
2,350
966,128805,823
141,682
179,628
262,968
299,905
17,39027,369256,965
259,491
5,178
5,063
279,418
26,5462,524
7,817
1,486,498
1,349,609
2,981,163
2,691,844
2.2%
2.0%
499,844509,704
254,228
7,359
0
0

5,900
9th Period
10th Period
5,885
5,868
4,220
4,130
100.0
100.0
－
3.1
Xymax Axis
182
183
136,644
126,032
136,644
126,0320023,15821,731
4,355
4,284
6,198
7,992
5,035
2,068
6,962
7,210
154
150
450
24
0
0
113,486
104,301
227,596
208,032
3.9%
3.5%
16,597
16,64200
00Daiwa Kodemmacho

Daiwa Jimbocho

Kyodo Building (Kudan

Kyodo Building

Property Name

Acquisition Price (million yen)

Profits from property-related activities (*1)

13,860
9th Period
10th Period
Book Value (million yen)
13,761
13,735
Appraisal Value (million yen)
15,10014,600Occupancy Rate (%)
100.0
100.0
－
5.5
PML (%) (*6)
Xymax Axis
Property Management Company
Number of operating days
182
183(1) Property-related Revenues
421,944425,897
421,944425,897
Rent (incl. common service fees)
Other Revenues (*2)00(2) Property-related Expenses
80,387
109,935
Administrative Expenses
13,248
12,841
Utility Charges
17,78922,401
Property Management Fees
12,195
4,795
Property-related Taxes (*3)
34,07936,721
Non-life Insurance Costs
598
585
Repair Expenses
2,476
32,589Other Expenses
00(3) NOI (＝(1)-(2))
341,557
315,962
Annualized NOI
684,990
630,197
NOI Yield (*4)
4.9%
4.5%
Depreciation and Amortization
29,22629,290(Reference) Proceeds for Restoration and Repair Work00
Proceed s from Amo rtiza ti on of L eashold and Security Depo sits
0
0

2,460
4,150
9th Period
10th Period
9th Period
10th Period
2,440
2,461
4,205
4,184
1,950
1,920
4,290
4,340
86.8
100.0
100.0
100.0
－
－
7.7
5.6
Mitsui Fudosan Building Management
Property Partners
182
183
83
183
47,38852,547
69,905
164,862
47,38852,547
69,905
164,862000015,75315,362
6,425
20,753
4,680
3,742
2,670
6,017
3,422
4,924
2,486
12,392
1,509
1,513
809
1,647
3,801
3,849
0
0
112
109
121
249
1,404
400
78
416
822
822
259
29
31,63537,18563,480144,108
63,441
74,167279,156
287,429
2.6%
3.0%
6.7%
6.9%
7,938
8,135
11,44022,917
0
0
0
0
0
0
0
0

5,000
4,000
9th Period
10th Period
9th Period
10th Period
5,151
4,038
5,720
4,240
85.5
90.7
6.8
8.0
Mitsui Fudosan Building Management
Xymax Axis
110
90
106,01156,159106,01156,1590018,536
5,698
9,571
2,215
5,934
2,181
2,219
1,136
0
0
216
89
592
75
3
0
87,47450,461
290,256
204,648
5.8%
5.1%
31,025
11,9620000(*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.36 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 (January 2011) and 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.

42

Portfolio Performance Summary (5) (9th-10th Fiscal Period Results by Property)
Daiwa Kinshicho

Daiwa Higashi-Ikebukuro

Benex S-3

Daiwa Shinagawa North

Daiwa Minami-Senba

33properties

Property Name
Total

Acquisition Price (million yen)

Profits from property-related activities (*1)

3,653
9th Period
10th Period
Book Value (million yen)
3,548
3,523
Appraisal Value (million yen)
3,542
3,587
Occupancy Rate (%)
100.0
100.0
－
7.4
PML (%) (*6)
Property Management Company
UNHEX
Number of operating days
182
183(1) Property-related Revenues
153,778
154,430
Rent (incl. common service fees)
153,778
154,430
Other Revenues (*2)00(2) Property-related Expenses
41,61544,987Administrative Expenses
13,722
13,952
Utility Charges
10,532
13,124
Property Management Fees
2,504
2,311
Property-related Taxes (*3)
12,757
13,038Non-life Insurance Costs
340
335
Repair Expenses
1,758
2,224
Other Expenses
00
112,163
109,443(3) NOI (＝(1)-(2))
224,941
218,289
Annualized NOINOI Yield (*4)
6.2%
6.0%
Depreciation and Amortization
29,027
29,130(Reference) Proceeds for Restoration and Repair Work00
Proceed s from Amo rtiza ti on of L eashol d and Security Depo sits
0
0

2,958
9th Period
10th Period
2,914
2,885
3,417
3,414
100.0
97.9
－
5.6
UNHEX
182
183
153,723
141,135
153,723
139,460
0
1,674
38,981
43,856
10,18812,547
14,111
15,657
2,316
2,557
9,588
9,687
317
314
2,458
3,091
0
0
114,742
97,279230,114
194,026
7.8%
6.6%
29,63329,753
0
3,100
0
0

4,950
9th Period
10th Period
4,583
4,552
3,380
3,410
80.4
100.0
－
5.7
Xymax Axis
182
183
122,413
144,225
122,413
144,2250056,76587,545
19,203
17,271
15,02318,096
2,998
4,135
16,28816,377
513
505
2,738
31,1590065,64856,679131,655
113,049
2.7%
2.3%
55,45555,930
0
0
0
0

7,710
4,810
9th Period
10th Period
9th Period
10th Period
7,605
7,570
4,963
4,939
5,710
5,770
3,500
3,030
90.8
95.2
63.2
91.7
－
－
5.6
11.6
Mitsui Fudosan Building Management
UNHEX
182
183
182
183
190,470
169,428
103,035
112,283
188,487
167,178
103,035
112,283
1,982
2,249
0
0
58,02662,92736,94149,477
16,956
12,964
13,88921,673
13,37915,591
8,672
10,047
4,134
4,996
1,548
2,696
18,89319,368
11,586
11,650
499
483
332
322
4,162
9,522
910
3,086
0
0
0
0
132,444
106,500
66,09462,805
265,615
212,419
132,552
125,268
3.4%
2.8%
2.8%
2.6%
48,51736,92335,22834,191
1,600
9,150
0
0
3,098
0
0
0

278,195
9th Period
10th Period
265,860
274,219
236,653
242,859
85.7
95.9
－
5.6
6,649,152
6,610,024
39,1282,049,295
363,960
522,664
105,882
560,130
12,945429,305
54,4074,599,857
9,376,838
3.5%
1,184,842
333,710
3,098

6,403,869
6,374,684
29,184
1,969,769
427,064
624,108
107,376574,683
13,106
163,878
59,552
4,434,100
9,063,757
3.3%
1,235,682
20,6190(*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.36 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 (January 2011) and 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.

43

Development of a New Pipeline
Deliberation
Deliberation ofof Activities
Activities toto Develop
Develop aa New
New Pipeline
Pipeline
The Investment Corporation is deliberating the acquisition of debt portions of beneficiary rights for which money claims are held in trust and where real estate
have been established as collateral (hereafter, “beneficiary right of accounts receivable in trust”). If investment in debt portions of beneficiary rights ofaccounts receivable in trust becomes possible, the opportunities for acquiring properties before funds exit out of the properties grows. This option will bedeliberated on as a new pipeline for the future.

<REIT (investing in Kinsen-Shintaku)><Monetary Claim>
Kinsen-Shintaku<REIT (after acquiring properties)>

借入金
Existing
既存物件
Properties

Beneficiary right ofaccounts receivable
In trust(Acquirement fromother companies)

Trust Bank
(Possession of
credit obligation)

Credit management /Collection / Entrust

Liability

Existing
Properties

Liability

出資
Capital

Proprietary rights
Or
Beneficiary rights

CapitalCollection
Short Sale

Servicer

Creditor
Payment

Instructions
Asset Manager
Advisory Agreement

Daiwa Real Estate
Asset 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.

44

Organization of the Asset Management Company
Organization Chart

Company Overview
Board of Directors and Auditors

Shareholders’Shareholders’ Meeting
Meeting
Auditors
Auditors
Board
Board ofof Directors
Directors
Compliance
Compliance
Committee
Committee
Investment
Investment Committee
Committee

Compliance
Compliance Officer
Officer
Representative
Representative
Director
Director
Internal
Internal Control
Control Office
OfficeInvestment Management
Department

Acquisitions Team

General Administrative
Department
Matters relating to theacquisition and disposal of
assetsFormulation of investment
policiesAsset Management Team

Matters relating to the leasing
and management of assets
Formulation of policies on
leasing and management ofassetsInvestment Planning Team Budget and performance

Matters relating to theoperation of the general
meeting of investors and theboard of directors
Matters relating to theoperation of the general
meeting of shareholders, theBoard of Directors andcommittees
Matters relating to humanresources and labor service
Submission of applications
for various permits, licenses,
approvals, registrations, etc.
stipulated by laws andregulations

Business Planning
Department








Analysis of real estate market
and retail industry trends
Research and analysis of thereal estate investment trust
marketMatters relating to thedevelopment of annual asset
management plans andmedium-term asset
management plans

President and Representative
Director

Akira Yamanouchi

Vice President andRepresentative Director

Yoshiki Nishigaki

Vice President andRepresentative Director

Yuji Shinozuka(Head of Business Planning)

Director

Atsuko Takahashi(Head of Investment Management)

Director

Naoyuki Owa(Head of Administration)

Director

Yoji Ueda (Head of Finance)

Director (non-executive)

Toshihiro Matsui

Director (non-executive)

Hikaru Sakagami

Auditor

Shigeharu Tominaga

Finance Department

Finance and IR Team

Matters relating to financing
and asset liability
management
Matters relating to formulationof the IR strategy

Advisory Department
 Matters relating to advisoryconcerning formulation of
replacement, disposal, or income andexpense plans for customers’ assets
 Matters relating to advisoryconcerning management, operation,leasing, and maintenance andrenovation of customers’ assets
 Agency or intermediary on

Development and revision of
the Investment Guidelines

Accounting Team

Budget and performance
management
Matters relating to financial
results and accounting

transactions 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

Company Name

Daiwa Real Estate Asset Management Co. Ltd.

Address

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

Established

October 21, 2004

Capitalization

200 million yen

Representative Director Akira Yamanouchi
Directors

9 (6 executive, 2 non-executive, 1 auditor)

Employees

31 (as of November 30, 2010)

Registered Financial
Instruments Firm

No. 355 (Financial Instruments), Director,
Kanto Local Finance Bureau

Building Lots andBuildings Transaction
Business License

No. (2)-83920, Governor of Tokyo

Discretionary Agent forReal EstateTransaction Approval

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

management of the portfolio

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.

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Positioning of Asset Manager within the 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.

 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 The Daiwa Securities Group promotes the marketing of net increase to individual investors and focuses on the development of attractive products that have thepotential for stable management performance. Daiwa Real Estate Asset Management aims more business expansion by developing those products.

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