September 3, 2007

daVinci Select K.K.

Business Results for the Third Fiscal
Period, Ended May 31, 2007

Disclaimer:z This presentation includes forward-looking statements about DA Office Investment

Corporation, daVinci Select and daVinci Advisors and affiliated companies (the Group).
To the extent that statements in this presentation do not relate to historical or current
facts, they constitute forward-looking statements. These forward-looking statements are
based on the current assumptions and beliefs of the Group in light of current
information and involve known and unknown risks, uncertainties and other factors.
Such risks, uncertainties and other factors may cause actual performance to bematerially different from any future results, performance, achievements or financial
position expressed or implied by these forward-looking statements.
z This document is not intended as an inducement or invitation to purchase or invest in

the products or investment share of the Group. Nor is the document intended to provide
comprehensive information about the business performance and strategies of the Group.
Each investment decision requires the independent exercise of judgment in fully
reviewing the merits and risks. Investment decisions should not rely solely on theinformation contained herein and should consider multiple factors utilizing various
sources of information.
z The Group undertakes no obligation to publicly update any forward-looking statements

after the date of this presentation.

1

1. Third Fiscal Period Highlights■Business Results for the Third Fiscal Period (December 1, 2006 – May 31, 2007)
Results
Results (34(34 Properties)
Properties)

ChangeChange fromfrom Previous
Previous Period
PeriodInitial
Initial Forecast
Forecast(35(35 Properties)
Properties)

Difference
Difference between
between Actual
ActualResults
andResults and Forecast
Forecast(Announced March 28, 2007)

OperatingOperating Revenue
Revenue¥6,151¥6,151 million
million++ ¥1,241¥1,241 million
million+25.3％+25.3％¥6,110¥6,110 million
million++ ¥41¥41 million
million

+0.7％
+0.7％

OperatingOperating Income
Income¥3,703¥3,703 million
million++ ¥1,271¥1,271 million
million+52.3％+52.3％¥3,626¥3,626 million
million++ ¥76¥76 million
million

+2.1％
+2.1％

Net
Net Income
Income¥2,937¥2,937 million
million++ ¥917¥917 million
million+45.4％+45.4％¥2,899¥2,899 million
million++ ¥37¥37 million
million

+1.3％
+1.3％

Dividend
Dividend per
per Unit
Unit¥29,374¥29,374++ ¥9,178¥9,178+45.4％+45.4％¥28,999¥28,999++ ¥375
¥375

+1.3％
+1.3％

■Recent Key Activities■ Forecasts

Expansion of asset scale through public offering
Approx. 78.7 Billion

100,000

205,000(Note 2)

LTV (Note 3)
56.4%
35.3%

(Note 1）

Third period-end

Number of units

After public
offering

Fourth Period

Fifth Period

OperatingOperating
Revenue
Revenue¥8,224¥8,224 million
million¥6,805¥6,805 million
millionOperatingOperating
IncomeIncome¥5,016¥5,016 million
million¥3,485¥3,485 million
millionNet
Net Income
Income¥4,041¥4,041 million
million¥2,669¥2,669 million
millionDividend
Dividend per
perUnit
Unit¥19,716¥19,716¥13,022¥13,022(Note 4)(Note 1) Total acquisition price of portfolio(Note 2) On the assumption that 205,000 investment units are issued(Note 3) LTV is calculated by dividing interest-bearing debt by the appraisal value of the portfolio at the period-end, or in this case, at the time of public offering.
(Note 4) Forecasts include capital gains from selling daVinci Kayabacho 376, daVinci Yushima, daVinci Nishi-Gotanda I, and daVinci Shin-Yokohama 131.

2

(Note 2)

1. Third Fiscal Period Highlights■Business Results for the Third Fiscal Period (December 1, 2006 – May 31, 2007)
Results
Results (34(34 Properties)
Properties)

ChangeChange fromfrom Previous
Previous Period
PeriodInitial
Initial Forecast
Forecast(35(35 Properties)
Properties)

Difference
Difference between
between Actual
ActualResults
andResults and Forecast
Forecast(Announced March 28, 2007)

OperatingOperating Revenue
Revenue¥6,151¥6,151 million
million++ ¥1,241¥1,241 million
million+25.3％+25.3％¥6,110¥6,110 million
million++ ¥41¥41 million
million

+0.7％
+0.7％

OperatingOperating Income
Income¥3,703¥3,703 million
million++ ¥1,271¥1,271 million
million+52.3％+52.3％¥3,626¥3,626 million
million++ ¥76¥76 million
million

+2.1％
+2.1％

Net
Net Income
Income¥2,937¥2,937 million
million++ ¥917¥917 million
million+45.4％+45.4％¥2,899¥2,899 million
million++ ¥37¥37 million
million

+1.3％
+1.3％

Dividend
Dividend per
per Unit
Unit¥29,374¥29,374++ ¥9,178¥9,178+45.4％+45.4％¥28,999¥28,999++ ¥375
¥375

+1.3％
+1.3％

finance highlights■Recent Key Activities■ Forecasts

Expansion of asset scale through public offering
Approx. 78.7 Billion

100,000

205,000(Note 2)

LTV (Note 3)
56.4%
35.3%

(Note 1）

Third period-end

Number of units

After public
offering

Fourth Period

Fifth Period

OperatingOperating
Revenue
Revenue¥8,224¥8,224 million
million¥6,805¥6,805 million
millionOperatingOperating
IncomeIncome¥5,016¥5,016 million
million¥3,485¥3,485 million
millionNet
Net Income
Income¥4,041¥4,041 million
million¥2,669¥2,669 million
millionDividend
Dividend per
perUnit
Unit¥19,716¥19,716¥13,022¥13,022(Note 4)(Note 1) Total acquisition price of portfolio(Note 2) On the assumption that 205,000 investment units are issued(Note 3) LTV is calculated by dividing interest-bearing debt by the appraisal value of the portfolio at the period-end, or in this case, at the time of public offering.
(Note 4) Forecasts include capital gains from selling daVinci Kayabacho 376, daVinci Yushima, daVinci Nishi-Gotanda I, and daVinci Shin-Yokohama 131.

3

(Note 2)

2. External Growth (1) Third Fiscal Period Highlights

22 Properties at time of
public listing

Acquisition priceapprox. ¥79.5 billion

Ratio of properties
located in the Tokyo
metropolitan area

33 Properties at end of
first fiscal period

37 Properties at end of
second fiscal period

Acquisition priceapprox. 130.4 billion

Acquisition priceapprox. 110.8 billion

Ratio of properties
located in the Tokyo
metropolitan area

Ratio of properties
located in the Tokyo
metropolitan area

34 Properties at end of
third fiscal period

Acquisition priceapprox. 138.4 billion

Ratio of properties
located in the Tokyo
metropolitan area

95.9%

99.0%

95.3%

93.5%

* NOI: Annualized net operating income (before property repair expenses) / Total acquisition price4

2. External Growth (2) Performance Results■ Changes in Value of Property Acquisitions since Public Listing
Starting with an asset scale of ¥79.5 billion at the time of listing on the Tokyo Stock Exchange on October 19, 2005, DA Office
REIT has attained solid growth in its portfolio. With the acquisitions of the Shinjuku Maynds Tower, SHIBUYA EDGE, and thedaVinci Shinagawa II on July 13, 2007, the value of its portfolio has expanded to ¥211.0 billion in just one year and ninemonths since public listing.
Continuing its external growth strategy, DA Office REIT is aiming to reach an asset scale of ¥300 billion by the end of 2008.

5

2. External Growth (3) Next Growth Strategy■ Portfolio Composition Strategy■ daVinci Advisors Performance Results●As of December 31, 2006, daVinci Advisors acquired six properties utilizing its private
fund (using approximately ¥858.5 billion).

Continue investment focus on
Tokyo’s five central wards●An investment fund on the scale of ¥1 trillion (the “¥1 trillion fund”) was put in place inFebruary 2006.

■ Examples of daVinci Advisors’ investment assets
Invest in office buildings that havepotential for internal growth■ Property Acquisition Pipeline

daVinci Iidabashi

daVinci Takada 3-chomedaVinci Shinjuku

Kokusai Akasaka Bldg.

daVinci Fukuoka Tenjin

daVinci Sakurabashi* The properties identified above form a part of a real estate private fund managed by daVinci Advisors. As of July 23,
2007, DA Office REIT had no plans to aquire the subject properties.

63. Internal Growth (1) Third Fiscal Period Highlights
Increased NOI (based on 34 properties at the end of the third fiscal period*)

Increased
Increased earnings
earnings
throughthrough rent
rent

Increased NOI **Maintaining
Maintaining highhighrevisionsrevisionsoccupancy
occupancy rate
rate
InIn thethe third
third fiscal
fiscal period,
period,ofof thethe total
total of
of 53
53

5.7%

5.6%
5.6
Second fiscal period

Occupancy
Occupancy rate:
rate: 99.0%
99.0%
(As
(As ofof MayMay 31,
31, 2007)
2007)

Third fiscal period

contract
contract renewal
renewal tenants,
tenants,

42
42 tenants
tenants (79.2%)(79.2%)
accepted
accepted rent
rent increases
increases* daVinci Shinjuku Gyoen-mae is notincluded in the second fiscal period, anddaVinci Shimbashi 620, daVinci koishikawa,daVinci Okayama, and daVinci Hakata are
not included in the third fiscal period.
** The base for the annualized NOI yield isbefore property repair expenses.
7

3. Internal Growth (2) Implementation of Increased Rent Revisions■Rent Revisions (34 properties with 273 tenants at the third period-end)
For its 34 properties held as of the third period-end, DA Office REIT has been implementing rent revisions to increase rent since December 1, 2006.

Tenants not subject to rent revisions

Tenants subject torent revisions

80.6％

19.4％

220

53

Tenants continuing
previous contract
terms

7.5％

Tenants continuing
previous contract
terms

4.1%

Tenants in rent revision negotiations

92.5％

10.2％

2.4％

（Annual 4.8％）
4.8％）
Achieved third fiscal period target of increasing
total rent revenues above second fiscal periodannual rate of 4%■Rate of Rental Increase for Targeted Tenants

49 (10 tenants renegotiated new contracts)

4
Tenants
negotiating rent
decrease(10 tenants renegotiatednew contracts)■Total Rent Increase

Rent increase by type of tenant

15.6％

Tenant type

Contract renewal

16.0%

Original contract

11.9%

Tenants accepting rent increase

85.7％■Higher Rent Revision Success Rate

5
2

(1 tenantrenegotiated newcontract)

42 (7 tenants renegotiated new contracts)(2 tenants negotiated new contracts)

8

Rent increase

85.7％

3. Internal Growth (3) Management Indicators■Changes in Annualized NOI Yield*

5.3%
6.1%
5.5%
-

5.5%
6.3%
5.7%
5.4%

99.0
98.0
97.0
96.0
95.0
94.0
93.0
92.0
91.0

The base for the annualized NOI yield is before property repair expenses.

2007

Occupancy Rate as of May 31, 2007

99.0％
(Note 1) The graph above is based on data for DA Office REIT’s properties as of June 15, 2007. Contracted rent amounts are calculated as of the month-end
and set at 100% from the month of property acquisition. Rent amounts are adjusted thereafter based on changes in rental contracts.
(Note 2) Monthly rental amounts are from rental agreements for offices, shops and warehouses (excluding master lease contracts), and include subletting andsubleasing contracts (including rental fees for common areas of properties but excluding those for adjunct facilities such parking spaces).
(Note 3) Data corresponding to acquisition dates in the graph above are for all properties acquired at that time. Regarding data for properties acquired on
October 21, 2005, however, five properties sold in the second and third fiscal periods have been excluded.

9

31
M

ay

31
M

ar
.

31
Ja
n.

v.
30
No

30
Se
p.

1
l. 3
Ju

ay

2006

M

2005

31

1
ct
.3

■Changes in Rent Levels from the Time of Acquisition by period

31

90.0

** daVinci Shinjuku Gyoen-mae is not included in the second fiscal period, and daVinci Shimbashi 620, daVinci
Koishikawa, daVinci Okayama, and daVinci Hakata are not included in the third fiscal period.

ar
.

*

5.2%
5.6%
-

(%) 100.0M

1 acquisitionin third period

Third period ended
May 31, 200731

5 acquisitions
in second period

Second period ended
Nov. 30, 2006

Jan.

11 acquisitions
in first pe riodFirst period ended
May 31, 2006

O

17 acquisitions
at time of IPO**■Changes in Occupancy Rate

3. Internal Growth (4) Next Growth Strategy
Strategy
for Bridging the Rent Gap
賃料のギャップを埋める戦略
Raise property rental levels inline with market rates

Pushing ahead
with Increased Rent Revisions
賃料増額改定の推進
Push ahead withincreased rent revisions

Maximize NOI

Fourth fiscal period target: 2.5％ increase in rental income（5％ annual increase above previous period）
period）■Fourth Fiscal Period
Property Notice■Increased Rent Revision Outline※

Major
tenant switch
賃料増額改定の推
planned進

daVinci Nihonbashi Honcho* NOI (Rent cash flows) = Earnings from rental operations - Expenditures from rental operations + Depreciation for the fiscal period103. Internal Growth (5) Closing the Rent Gap
Comparison of Current Rent and Market-Level Rent (for 33 properties as of July 31, 2007)

daVinci Ginza
daVinci Ginza Annex
daVinci Kamiyacho
daVinci Shibaura

26,426
20,67523,874
17,85535,00029,50031,00019,50026,19232,000daVinci Mita

17,577
17,00021,00021,000daVinci A Hamamatsucho

19,80622,000daVinci Jingumae
daVinci Shibadaimon

22,082
18,50024,00022,000daVinci Misakicho

20,111

21,000daVinci Shinbashi 510
daVinci Tsukiji

16,691
18,08319,00018,000BPS Square

12,62817,000daVinci Tsukiji 616

14,92619,000Shuwa Tsukishima Bldg.
Nihonbashi MS Bldg.

14,047
15,647

15,50020,000Atlantic Bldg.

16,20520,00022,17630,000

Shibuya SS Bldg.

Rent gap***

32.4%
42.7%
29.8%
9.2%
22.2%
19.5%
23.5%
11.1%
8.7%
18.9%
4.4%
13.8%
-0.5%
34.6%
27.3%
10.3%
27.8%
23.4%
35.3%

Area

Market rent **daVinci Minami Aoyama

daVinci Sarugakucho
Five central wards of Tokyo

Current rent *Five central wards of Tokyo

Property name

Property nameMarket rent **Rent gap***

16,64627,000daVinci Ginza 1-chome

22,45430,000daVinci Kyobashi

17,99922,000Sunline 7 Bldg.
daVinci Onarimon

21,391
19,391

26,00027,000Shinjuku Maynds Tower

28,92445,000SHIBUYA EDGE

31,132
22,816
12,21013,942
10,69814,651
16,914
12,076
16,082
13,81032,50031,967
16,00016,00014,00015,00019,00013,00021,00016,223

62.2%
33.6%
22.2%
21.5%
39.2%
55.6%
4.4%
40.1%
31.0%
14.8%
30.9%
2.4%
12.3%
7.7%
30.6%
17.5%

20,95528,71437.0%

daVinci KinshichodaVinci HigashiIkebukuro
daVinci Shin-Yokohama
214

Bennex S-3
Believe Omori
Sapporo Chiyoda Bldg.
daVinci Shinagawa Ⅱ
Subtotal
Total*

Current rent*

daVinci Nihonbashi
HonchoSubtotal

Tokyo metropolitan area
and regional major cities

Area

Current rent levels for DA Office REIT properties are below accepted market levels. DA Office REIT anticipates theimportance of closing this “rent gap,” and has therefore positioned increased rental revisions as a management priority.

Current rent is calculated based on the rent level on April 30 for offices above the second floor.

** Market rent is based on an assessment prepared in a market report by Tokyu Livable, Inc. (April 30, 2007).
*** Rent gap = (Market rent – Current rent) / Current rent

11

4. Financial Strategy (1) External Growth Backup
DA Office REIT is building a flexible financial system that reaps the benefits of external growth by conducting public offerings andlowering the LTV ratio.
●Balance sheets after public
offering (as of July 23, 2007)●Projected balance sheets that optimize greater capacity
for acquisitions (Note 3)

Approx. 55% LTV
35.3％ LTV

based on acquisition price of assets

based on assessed value of assets at period-end¥228.7 billion¥300.0 billion

Debt¥80.8 billion

range(Note 2)

(Note 2)

(Note 4)(Note 1)EquityEquity(Note 1) Based on assessed value of total investment assets at the period-end(Note 2) Total interest-bearing liabilities(Note 3) The diagram is based on data of projected property acquisitions(Note 4) Based on acquisition price of total assets

Acquire bond rating

Extend repayment of debt by issuing bonds

Build a flexible system for loans based on a stable financial structure

Optimize external growth backup function that provides ample funds for acquisitions
124. Financial Strategy (2) Protecting Against Rising Interest Rates
Diversification of Debt Repayment（Billions of y en）

Fixed
37.60640

3 0 .4 0 6

Amount of Repayment

35

Floating
Long-term refinancing (planned)30

As the repayment date for debt of ¥30,406
million falls in December 2007,
refinancing of long-term debt is being
considered.

25
20
Short-term
refinancing(planned)

15

Long-term refinancing

Breakdown of short- and long-term debt as of July 23, 200710
5

1 7 .5

7 .2

Nov.

May

2007

2008

6 .1 6 8

1 4 .5 5

Nov.

May

Nov.

May

Nov.

May

Nov.

May

Nov.

2008

2009

2009

2010

2010

2011

2011

2012

2012

5 .0

0

Short-termLong-term¥55.1 billion¥25.7 billion

68.2%

31.8%

Year of Repayment
As of July 23, 2007

Breakdown of debt after refinancing in December 2007 (planned)

Purchase of Interest Rate Cap
Short-term

The purchase of an interest rate cap eliminates the risk of sudden jumps in interest rates while providing
the benefits of low interest rates.

¥21.7 billion
27.9%

Details:

Long-term¥56.1 billion
72.1%① Interest rate target：3-month Tibor ② Strike：1.2％ ③ Assumed principal interest rate spread：
0.8％ ④ Payment premium：0.49％ (approx. 3-year period)→①–④ After consideration of interest rate expense, the annual interest rate was capped at
approximately 2.16%. Forecasts are based on the assumption of a long-term fixed rate of interest.
13

September 3, 2007

daVinci Select K.K.

Reference Material

Third Period Acquisitions■Overview of Property
daVinci Onarimon■Extensive Renovations Conducted to Raise Competitiveness
Seismic reinforcement work and large-scale renovations were carried out at the property in
2004. The property’s competitiveness has been significantly raised with the installation ofindividual air conditioning units and OA floors throughout the entire building, as well as a 24hour security system at the building’s entranceways.

■High Occupancy Rate Contributes to Steady Internal Growth
As the current level of rent from existing tenants is lower than the market rental rate, DA
Office REIT will work to bridge this difference based on its strategy for steady internal
growth through increasing rent revisions.

Location: 6-1-11 Shimbashi, Minato-ku, Tokyo
Land area: 1,990.40㎡
Structure: SRC
Number of floors: 9

Current rent (Note 2)

5.4%
Projected fourth period NOI yield 5.6%
Third period NOI yield

Assumed NOI yield based onmarket report (Note 1)

Market rent (Note 3)
Most recent rental lease

7.3%

Rent gap ratio (Note 4)¥19,391¥27,000¥30,000
39.2%

Floor area: 13,805.18㎡
Leasable floor area: 11,883.66㎡
Construction completion: April 30, 1973
Acquisition price: ¥13.86 billion
Occupancy rate: 100％ (As of May 31, 2007)

Conducted seismic reinforcement workand large-scale renovations in 2004

(Note 1) Assumed NOI Yield (before property repair expenses) is calculated based on a market report by Tokyo Livable, Inc.
(Note 2) Current rent is based on the rent level on April 30 for offices above the second floor.
(Note 3) Market rent is based on an assessment prepared in a market report by Tokyo Livable, Inc. (April 30, 2007).
(Note 4) Rent gap ratio ＝ (Market rent – Current rent) / Current rent

15

Fourth Period Acquisitions■Overview of Property
Shinjuku Maynds Tower■Next to Shinjuku Station—the Busiest Train Station in Japan
The property is a five-minute walk from Shinjuku Station, which services JR East Japan Railway
lines, the Odakyu, Keio, and Seibu lines, as well as Tokyo Metro subway lines.

■High Potential for Steady Internal Growth Anticipated
Given that the current level of rent from existing tenants is lower than the market rental rate, DA
Office REIT will close the “rent gap” with the aim of attaining steady internal growth.
Projected fourth period NOI yield

3.2%

Current rent (Note 2)
Market rent (Note 3)

Assumed NOI yield based on

5.1%

Most recent rental leasemarket report
Rent gap ratio (Note 4)(Note 1) Assumed NOI Yield (before property repair expenses) is calculated based on a market report by Tokyo Livable, Inc.
(Note 2) Current rent is based on the rent level on April 30 for offices above the second floor.
(Note 3) Market rent is based on an assessment prepared in a market report by Tokyo Livable, Inc. (April 30, 2007).
(Note 4) Rent gap ratio= (Market rent – Current rent) / Current rent

Location: 2-1-1 Yoyogi, Shibuya-ku, Tokyo
Land area: 11,500.48m2
Structure: S, SRC
Number of floors: 3 below ground, 34 above ground
Floor area: 97,978.74m2
Leasable floor area: 53,165.58m2
Construction completion: September 26, 1995
Acquisition price: ¥65.10 billion
Occupancy rate: 98.1% (As of May 31, 2007)(Note) DA Office REIT plans to acquire trust beneficiary rights in real estate for coownership corresponding to a ratio of 3:7 of the entire building. The above figuresfor land area, floor area and leasable floor space refer to the entire property.

16¥28,924¥45,000¥50,000
55.6%

Fourth Period Acquisitions■Overview of Properties
SHIBUYA EDGE

daVinci Shinagawa II—First property acquired through the Sponsor Company—Neighboring a redevelopment site that is part of the remarkabledevelopment of the area surrounding Shinagawa Station

Current rent (Note 1)
Market rent (Note 2)
Most recent rental lease
Rent gap ratio (Note 3)
Fourth period NOI yield
Assumed NOI yield basedon market report (Note 4)¥31,132¥32,500¥32,000
4.4％
4.5％
4.6％

¥16,082
Market rent
¥21,000
Most recent rental lease¥21,000
Rent gap ratio
30.5％
Fourth period NOI yield
5.0％
Assumed NOI yield based
5.6％
on market report
Current rent (Note 1)(Note 2)

(Note 3)(Note 4)(Note 1) Current rent is based on the rent level on April 30 for offices
above the second floor.
(Note 2) Market rent is based on an assessment prepared in a market reportby Tokyo Livable, Inc. (April 30, 2007).

(Note 1) Current rent is based on the rent level on April 30 for offices
above the second floor.
(Note 2) Market rent is based on an assessment prepared in a market
report by Tokyo Livable, Inc. (April 30, 2007).
(Note 3) Rent gap ratio = (Market rent – Current rent) / Current rent
(Note 4) Assumed NOI Yield (before property repair expenses) is
calculated based on a market report by Tokyo Livable, Inc.

(Note 3) Rent gap ratio = (Market rent – Current rent) / Current rent
(Note 4) Assumed NOI Yield (before property repair expenses) is
calculated based on a market report by Tokyo Livable, Inc.

Location: 10-3 Udagawa-cho, Shibuya-ku, Tokyo

Location: 1-8-11 Kita-Shinagawa, Shinagawa-ku, Tokyo

Land area: 527.65m

Land area: 2,345.20m2

Structure: RC

Structure: SRC

Number of floors: 1 below ground, 9 above groundNumber of floors: 1 below ground, 11 above ground

Floor area: 3,022.33m2

Floor area: 10,200.29m2

Leasable floor area: 2,479.49m2

Leasable floor area: 6,543.38m2

Construction completion: August 30, 2006

Construction completion: July 3, 1991

Acquisition price: ¥5.90 billion

Acquisition price: ¥7.71 billion

Occupancy rate: 100% (As of May 31, 2007)

Occupancy rate: 99.5% (As of May 31, 2007)

217

Property Disposition in the Third and Fourth Fiscal Periods■Overview of Four Properties Sold in Third Period
daVinci Shimbashi 620

daVinci Koishikawa

daVinci Okayama

daVinci Hakata

Third Period Total
Acquisition price: ¥5,906 million
Floor area:
962.66m2
Acquisition price: ¥660 million
Selling price:¥790 million
Gain on sale:¥121 million
Capital gain:
19.6%

Floor area:
2,609.07m2
Acquisition price: ¥1,460 million
Selling price:¥1,500 million
Gain on sale:¥38 million
Capital gain:
2.7%

Floor area:
4,062.48m2
Acquisition price: ¥1,266 million
Selling price:¥1,600 million
Gain on sale:¥346 million
Capital gain:
26.3%

Floor area:
7,672.95m2
Acquisition price: ¥2,520 million
Selling price:¥3,090 million
Gain on sale:¥567 million
Capital gain:
18.1%

Selling price:¥6,980 million

Gain on sales:¥1,074 million

Capital gain:

18.2％■Overview of Four Properties Sold in Fourth Period
daVinci YushimadaVinci Nishi-Gotanda I

daVinci Kayabacho 376

daVinci Shin-Yokohama 131

Fourth Period Total
Acquisition price: ¥6,090 million
Floor area:
2,286.92m2
Acquisition price: ¥1,080 million
Selling price:¥1,295 million
Gain on sale:¥155 million
Capital gain:
19.9%

Floor area:
3,320.85m2
Acquisition price: ¥1,640 million
Selling price:¥2,211 million
Gain on sale:¥519 million
Capital gain:
34.8%

Floor area:
2,180.94m2
Acquisition price: ¥2,020 million
Selling price:¥2,600 million
Gain on sale:¥449 million
Capital gain:
28.7%

Floor area:
7,453.27m2
Acquisition price: ¥1,350 million
Selling price:¥2,165 million
Gain on sale:¥776 million
Capital gain:
60.3%

Selling price:¥8,271 million

Gain on sales:¥2,181 million

Capital gain:

35.8％* As of July 23, 2007

(Note) Capital gain = (Selling price – Acquisition price) / Acquisition price18

Fourth Fiscal Period EPS Interest Sensitivity
Sensitivity Analysis(Unit: Yen)
Interest rate spread (annual rate)

Impact on dividend per unit
0.00%
Rate of rent
increase(six-month period)

0%
1%
2%
3%
4%
5%

121
388
655
922
1,190
1,457

0.15%

0.30%

0.45%

-121
145
412
679
946
1,213

0
267
534
801
1,068
1,335

-243
23
290
557
824
1,091

0.60%

0.75%
-365
-98
168
435
702
969

-487
-220
46
313
580
847

The above impact on dividend
per unit is factored in torecalculate the forecast dividend
based on the publicly announced
amount of ¥19,716

Rate of rent
increase(six-month period)

0%
1%
2%
3%
4%
5%

Interest rate spread (annual rate)
0.00%
19,838
20,105
20,372
20,63920,906
21,1730.15%
19,716
19,983
20,25020,517
20,784
21,0510.30%
19,594
19,861
20,12820,395
20,662
20,9290.45%
19,472
19,73920,006
20,273
20,54020,8070.60%
19,35019,617
19,884
20,151
20,41820,6850.75%
19,22819,495
19,762
20,02920,296
20,563*The above sensitivity analysis is based solely on the forecast dividend per unit and is provided for simulation purposes only. Accordingly,
there is no guarantee of the accuracy of predicted amounts.

19

Since interest rate revisions
are planned during the fourthfiscal period on August 31,
interest cost has been
calculated over a three-month
periodThe dividend per unit isbased on the assumptionthat a total of 205,000 units
have been issued(Unit: Yen)

Forecast dividend per unit

A 0.15% interest rateincrease is factored in on
the basis of current shortterm variable interest ratelevelsPortfolio Performance Summary (Third Fiscal Period Results by Property)
Building

Operating income from property
leasing activities (*1)

Acquisition price (millions of yen)Book price (millions of yen)Appraisal value (millions of yen)Occupancy rate (%)
PML#days worked (for 3rd FP)① Operating revenues (thousands of yen)
Revenues from property leasing
Other income (*2)
② Total property-related expenses (thousands of yen)
Property management fees
Utilities
PM fees
Property-related taxes (*3)
Insurance
Other③ NOI（=①-②）
NOI Yield（*4）
Repair expenses (thousands of yen)
NOI yield before repair expenses
NOI yield after repair expenses(Reference)
Depreciation and amortization (thousands of yen)
Restoration and renovation work (thousands of yen)

Deferred security deposits (thousands of yen)

Building

Operating income from property
leasing activities (*1)

Acquisition price (millions of yen)Book price (millions of yen)Appraisal value (millions of yen)Occupancy rate (%)
PML#days worked (for 3rd FP)① Operating revenues (thousands of yen)
Revenues from property leasing
Other income (*2)
② Total property-related expenses (thousands of yen)
Property management fees
Utilities
PM fees
Property-related taxes (*3)
Insurance
Other③ NOI（=①-②）
NOI Yield（*4）
Repair expenses (thousands of yen)
NOI yield before repair expenses
NOI yield after repair expenses(Reference)
Depreciation and amortization (thousands of yen)
Restoration and renovation work (thousands of yen)

Deferred security deposits (thousands of yen)daVinci
Ginza

daVinci
Ginza
Annex

14,10014,083
17,100
99.5
12.5
182
427,071
418,123
8,948
94,31825,97622,783
10,10322,552838
12,064
332,753
4.7%
13,7270.2%
4.5%
64,691
6,350
0

3,050
3,037
3,140
98.2
12.7
182
89,22689,2260
19,755
3,938
6,831
1,589
7,203
192
0
69,470
4.6%
615
0.0%
4.5%
16,46400Nihonbashi
MS Bldg.

Atlanctic
Bldg.

2,520
2,536
3,200
100
11.8
182
96,381
96,3810
18,789
4,218
5,817
1,788
6,754
210
0
77,592
6.2%
1,602
0.1%
6.0%
15,610
0
0

1,600
1,607
1,860
100
13.7
182
61,99861,635362
11,573
2,625
2,397
1,562
4,864
123
0
50,425
6.3%
2,726
0.3%
6.0%
7,842
1,599
42

daVinci
MinamiAoyamadaVinciKamiyacho

daVinci
Shibaura

12,00012,08014,000100
13.8
182341,412
341,412
0
78,931
17,544
14,313
13,96032,566546
0262,481
4.4%
7,390
0.1%
4.3%
43,126
4,600
0

8,265
8,261
9,135
97.6
14.5
182
311,566
309,2392,327
58,952
11,821
18,599
9,082
18,875574
0252,613
6.1%
9,705
0.2%
5.9%
30,106
531
0

4,550
4,540
4,990
100
13.8
182
147,339
147,339
0
25,111
4,212
7,239
2,646
10,814199
0122,227
5.4%
495
0.0%
5.4%
18,206
0
0

3,250
3,221
4,220
100
9.5
182
133,613
133,6130
32,637
9,105
9,917
2,965
10,321327
0100,975
6.2%
4,049
0.2%
6.0%
21,860
2,800
0

3,000
3,024
3,240
100
14.6
182
122,712
122,7120
26,381
5,387
8,391
1,821
3,031
195
7,553
96,331
6.4%
4,016
0.3%
6.2%
13,31500

daVinci
Shibuya SS
Nihonbashi
Bldg.
HonchodaVinci
Ginza 1chomedaVinci
Kyobashi

Sunline 7
Bldg.

4,620
4,654
5,090
87.3
13.6
182
149,609
145,675
3,933
28,366
9,049
7,704
4,515
6,796
226
74
121,242
5.3%
11,912
0.5%
4.7%
24,210
8,950
0

3,460
3,471
3,750
100
13.4
182
118,510
118,5100
19,671
4,645
6,755
1,781
6,288
199
0
98,839
5.7%
1,229
0.1%
5.7%
15,775
0
0

2,680
2,699
3,000
100
14.1
182
102,045
102,045025,055
5,505
5,067
1,671
12,632177
076,989
5.8%
1,288
0.1%
5.7%
11,521
0
0

3,930
3,934
4,480
97.6
14.7
182
136,165
133,767
2,398
31,018
6,862
10,552
3,386
9,957
259
0
105,147
5.4%
4,731
0.2%
5.1%
15,891
2,680
0

7,420
7,419
9,090
100
12.0
182
246,422
246,422
037,247
6,094
15,5893,697
11,413440
11209,175
5.7%
0
0.0%
5.7%
28,54700

daVinci
MitadaVincidaVinci A
daVincidaVincidaVinci
Sarugakucho Hamamatsucho Jingumae Shibadaimon Misakicho
2,865
2,849
3,158
100
14.6
182
144,253
144,119
133
58,825
9,329
8,529
2,522
8,784
260
29,40085,427
6.0%
8,415
0.6%
5.4%
14,3641,100
0

daVinci
Onarimon13,86013,927
16,200100
14.8
182447,004
447,004
074,605
17,91518,8595,606
31,559664
0372,399
5.4%
2,160
0.0%
5.4%
28,76200

daVinci
Shinbashi
510

daVinci
Kayabacho 376
2,020
2,078
2,220
100
14.8
182
70,89870,8980
11,993
2,530
3,657
1,280
4,421
104
0
58,905
5.8%
637
0.1%
5.8%
6,376
0
0

2,800
2,803
2,890
100
13.9
182
89,481
89,481
0
20,273
4,086
7,550
2,546
5,974
109
6
69,207
5.0%
5,746
0.4%
4.5%
9,344
0
0

2,578
2,558
2,757
100
12.5
182
96,03396,0330
18,893
5,691
5,995
1,443
5,599
164
0
77,140
6.0%
3,446
0.3%
5.7%
14,384
0
0

2,346
2,341
2,436
100
13.1
182
85,79985,7990
16,074
2,880
6,280
1,285
5,440
187
0
69,724
6.0%
2,616
0.2%
5.7%
13,825
0
0

2,080
2,094
2,350
95.2
13.4
182
81,484
81,4840
20,073
7,335
3,798
3,316
5,449
172
0
61,411
5.9%
228
0.0%
5.9%
3,650
0
0

daVinci
Kinshicho

daVinci
HigashiIkebukuro

daVinci
YushimadaVinci
NishiGotanda I

3,653
3,589
3,811
100
14.9
182
165,766
165,766
043,73015,053
12,415
2,632
13,280348
0122,036
6.7%
1,813
0.1%
6.6%
37,070
0
0

2,958
2,921
3,386
100
13.9
182
143,547
143,47077
38,871
10,13915,992
2,150
10,239350
0104,675
7.1%
2,341
0.2%
6.9%
25,168
0
0

1,080
1,102
1,210
100
14.7
182
45,59545,5950
11,063
3,030
3,135
1,200
3,593
104
0
34,531
6.4%
5
0.0%
6.4%
8,857
0
0

BPS
Square
1,560
1,535
1,650
100
12.5
182
54,90054,900
0
6,203
0
0
790
5,260
152
0
48,696
6.3%
651
0.1%
6.2%
17,51900

daVincidaVinci
ShinShinYokohama Yokohama
214
131
1,640
2,180
1,350
1,634
2,116
1,330
1,790
2,730
1,510
100
100
98.1
10.2
13.0
14.6
182
182
182
73,356110,947
89,34473,356110,947
88,73200611
16,63622,057
26,299
4,776
5,163
6,335
4,600
7,653
7,896
1,283
1,677
2,512
5,782
7,246
9,200
193
316
354
0
0
0
56,71988,88963,044
6.9%
8.2%
9.4%
1,593
5,125
2,996
0.2%
0.5%
0.4%
6.7%
7.7%
8.9%
15,371
33,694
20,111
0
0
800
0
0
0

daVinci
Tsukiji
1,240
1,282
1,420
100
14.0
182
54,41754,417
0
11,137
2,536
3,311
1,293
3,904
91
0
43,279
7.0%
833
0.1%
6.9%
9,779
0
0

daVinci
Tsukiji 616

Shuwa
Tsukishima Bldg.

2,440
2,413
2,440
100
13.0
182
86,626
86,626
0
20,998
4,937
6,693
1,959
7,202
205
0
65,627
5.4%
21,381
1.8%
3.6%
25,010
0
0

7,840
7,754
7,840
100
14.4
182
256,812
256,812046,242
8,383
20,7593,820
12,842436
0210,570
5.4%
2,834
0.1%
5.3%
65,0000
0

Bennex
S-3

Believe
Omori

4,950
4,892
5,700
97.3
12.9
182
223,299
221,379
1,920
54,765
16,406
17,682
3,740
16,366569
0168,533
6.8%
3,899
0.2%
6.7%
56,297
0
0

3,160
3,172
3,440
100
12.8
182
131,422
131,4220
29,975
9,209
9,610
2,077
8,763
314
0
101,446
6.4%
7,938
0.5%
5.9%
21,4443,800
0SapporoChiyoda
Bldg.
1,384
1,367
1,584
98.6
10.5
182
89,50989,509029,361
11,342
9,147
1,741
6,625
505
0
60,147
8.7%
1,545
0.2%
8.5%
18,72500

Total of 34
Properties
138,429
138,342
156,817
99.0
11.0
182
5,024,577
5,003,865
20,712
1,085,895
264,068
315,533
105,456
341,607
10,11949,1093,938,682
5.7%
139,698
0.2%
5.5%
771,928
33,21042(*1) Figures in the statements of income above are rounded down to the nearest 1,000 yen, (excluding other income and property-related taxes).
(*2) Other income does not include restoration and renovation work or deferred security deposits.
(*3) Property-related taxes for properties acquired in 2006 are calculated according to the number of operating days in the third fiscal period, which overlaps with 2007.
(*4) The NOI yield in ③ NOI is calculated by dividing annualized NOI by total acquisition price.
(Note) The above third period-end data does not include investment assets sold during the period, namely daVinci Shinbashi 620, daVinci Koishikawa, daVinci Okayama, anddaVinci Hakata.

20

Portfolio Property Photographs (1)daVinci Nihonbashi
HonchodaVinci Kyobashi

daVinci Ginza 1-chome

Sunline 7 Bldg.

Believe Omori

daVinci Ginza

daVinci Ginza Annex

daVinci Kamiyacho

daVinci Shibaura

daVinci Minami Aoyama

daVinci Mita

daVinci Sarugakucho

daVinci A Hamamatsucho

daVinci Jingumae

daVinci Shibadaimon

daVinci MisakichodaVinci Shimbashi 510

daVinci Kayabacho 376

daVinci Onarimon

BPS Square

daVinci Tsukiji

21Portfolio Property Photographs (2)daVinci Tsukiji 616

Shuwa Tsukishima Bldg.

Nihonbashi MS Bldg.

Atlantic Bldg.

Shibuya SS Bldg.

daVinci KinshichodaVinci YushimadaVinci Nishi-Gotanda I

daVinci Shin-Yokohama
214

daVinci Shin-Yokohama
131

Bennex S-3

Sapporo Chiyoda Bldg.

22

daVinci Higashi-IkebukuroMap of Portfolio
Main Target Area for Investment: Five Central Wards of Tokyo

投資可能エリア・Possible
Areas for Investment:
地方主要都市
Major Regional Cities
Sapporo Chiyoda Bldg.

Shinjuku Ward
Shinjuku Station
Shinjuku
MayndsTower

daVinci Sarugakucho

daVinci MisakichodaVinci Nihonbashi Honcho

Chiyoda Ward
Sunline 7 Bldg.
Tokyo
daVinci Ginza 1-chome
BPS Square Station

ShibuyaWarddaVinci Tsukiji
daVinci Jingumae

Shibuya EDGE

daVinci
Ginza Annex
daVinci Minami Aoyama
daVinci
Shimbashi
daVinci Kamiyacho
510

Shibuya Station

Shibuya SS Bldg.

daVinci Onarimon
daVinci A Hamamatsucho
Atlantic Bldg.
daVinci Mita

Nihonbashi MS Bldg.

Chuo WarddaVinci Kayabacho 376
daVinci
KyobashidaVinci Tsukiji 616
daVinci Ginza
Shuwa
Tsukishima
Bldg.

Target Area for Investment:
Tokyo Metropolitan Area
daVinci Higashi-Ikebukuro

daVinci
Shibadaimon

daVinci YushimadaVinci Kinshicho

Minato Ward

Da Vinci Nishi-Gotanda Ⅰ

daVinci Shibaura
Bennex S-3
Yamanote LineTokyo

Saikyo Line

Shinagawa Station
daVinci Shinagawa Ⅱ

Chuo Line
YokosukaLine/Sobu
Express Line

23

Believe Omori
daVinci Shin-Yokohama 214

daVinci Shin-Yokohama 131

Organization of the Asset Management Company■Organization Chart■Company Overview
Board of Directors and Auditors

Shareholders’ Meeting
Auditors
Board of Directors
Compliance Committee

Representative Director

Takashi Abe

Director

Jinmoo Kim （Administrative Manager）

Director

Kazuhiro Tadano （Chief Financial Officer）

Director

Kotaro Matsuoka （Chief Investment Officer）

Outside Director

Masayoshi Ogawa （CPA）

Outside Director

Sigeru Takagi （Attorney of Law）

AuditorKoichi Yokoyama （CPA）

Investment Committee

Compliance Officer
Representative Director
Internal Control Office

Investment Management
Department

General Administrative
Department

IR & Planning
Department

Finance Department

Research &Acquisitions Team

Personnel & General
Affairs TeamIR & Planning Team

Finance & Accounting
Team・Determining and revising
practical guidelines

・Administration of
Shareholders’ Meetings
and Board of Officer
meetings of theInvestment Corporation,
the General Meeting of
Shareholders, Board of
Directors meetings, andcommittee meetings・Matters related toacquisition and disposal of
assets・Surveys and analysis of realestate and commercial
industry trends

Asset Management
Team・Determining and revising
practical guidelines

Company Name: daVinci Select Kabushiki Gaisha
Address: 6-2-1 Ginza, Chuo-ku, Tokyo
Established: October 21, 2004

・Disclosure-related matters

・Matters related to asset
procurement for theInvestment Corporation

・Investment Corporation IR
・Real estate market surveys
and analysis

・Determining and revisingguidelines

・Matters related to Investment
Corporation unitholders（excluding the Unitholders’Meeting）

・Matters related to theInvestment Corporation’s
performance forecasts,balance sheets, anddisclosure・Compliance Officer
support・Matters related topersonnel and generalaffairs

Capitalization: 200 million yen
Representative Director: Takashi Abe
Directors: 7 (4 executive, 2 non-executive, 1 auditor)
Employees: 20(Including 3 concurrent directors, as of July 31, 2007)
Investment trust management business transaction authorization:
Office of the Prime Minister (No. 45)
Real estate brokerage license: Governor of Tokyo (1) No. 3920
Discretionary transaction agent approval: Ministry ofLand, Infrastructure and Transport (No. 34)

・Determining and changing
annual and mid-term
management plans andrelated documents24