As of July 18, 2014

Daiwa Office Investment Corporation
Earnings Announcement for the 17th Fiscal Period(Fiscal Period ended May 2014)

Contents
Section 1

Section 4

17th Fiscal Period Performance Highlights and Forecasts

External Growth

17th Fiscal Period Topics

4

Highlights of the 17th Fiscal Period

5Acquisition/Sale Policy and Status of Deliberation
for Property Acquisitions

24

Changes in Asset Size and Trading Performance25

Properties Acquired after Sponsor Change

26

Portfolio after Acquisition of Three Properties

27

Extensive Property Sourcing Route28

Newly Acquired Property

29

Highlights of Forecasts for the 18th and 19th Fiscal Periods 6
Changes in Dividends

7

Section 2
Highlights of Public Offering in June 2014
Changes in Major Indices due to Public Offering

9

Summary of Public Offering in June 2014

10

Section 3
Internal Growth
Leasing Market of Tokyo Office Buildings

12

Analyses of Leasing Income

13Internal Growth Strategies

17

Occupancy Rate of the Properties Subject to Leasing
Improvement in the 17th FP

18

Value-up Properties in the 18th FP

19

Performance of Shinjuku Maynds Tower &E SPACE TOWER

20

Measures to Increase Portfolio Value

21

Actions Taken for Environmental Efforts

22

Section 5
Financial Strategy
Status of Interest-bearing Liabilities

32

Unitholders as of the End of the 17th Fiscal Period

35

Activities in the 18th Fiscal Period

36

Appendix

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This document is provided for informational purposes and should not be construed as an offer
or solicitation 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,or by the associated cabinet orders, cabinet office ordinances, or rules, or by the rules
governing companies listed on the Tokyo Stock Exchange, or any other applicable rules, nor isit a disclosure 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, and there 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 thisinformation. 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.

2Section 1
17th Fiscal Period
Performance Highlights and Forecasts

17th Fiscal Period Topics█ Property Acquisition/Sale

Property replacement in the 17th FP (Acquisition of 1 property; Sale of 1 property)Integral Tower (Acquisition date: May 29, 2014; Acquisition price: 15,220 million yen)Daiwa Shibuya SS Building (Delivery Date: May 30, 2014; Sale Price: 3,800 million yen)

█ Property Management and Management Situation

Occupancy Rate at the end of the 17th FP: 96.4% (17th FP Expected Occupancy Rate estimated in January
2014: 94.8% / Occupancy Rate at the end of the 16th FP: 96.3%)



Average Contract Rent at the end of May 2014*: 18,215 yen (% and amount of change from the end of
November 2013: -253 yen, -1.4%)<Average contract rent of the existing 43 properties(*) at the end of May 2014: 18,481 yen(% and amount ofchange from the end of November 2013: +9 yen, unchanged)>█ Financial Situation
LTV (based on total assets): 43.0% (end of 16th FP: 40.6%)



Average remaining years at the end of the Fiscal Period: 3.82 years (end of 16th FP: 3.43 years)

Ratio of fixed interest: 80.3% (end of 16th FP: 83.8%)* Calculated based on properties excluding Integral Tower and Daiwa Shibuya SS Building(*) Average Contract Rent is, as a rule, calculated after excluding all non-office uses such as retail, residence, and warehouse.

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

4

Highlights of the 1７th Fiscal Period
Results of the 17th Fiscal Period
16th Fiscal Period(44 properties)

17th Fiscal Period(44 properties)(Million Yen)

Difference

Operating Revenue

8,432

8,587

155

Operating Expense

4,755

4,826

71

Operation Income

3,677

3,760

83

726

760

34

Ordinary Income

2,955

3,005

49

Net Income

2,959

3,016

56

7,478 yen

7,621 yen

143 yen459,893 yen

467,984 yen

8,091 yenOccupancy Rate

96.3%

96.4%

0.1%

NOI Yield (annualized)*

3.4%

3.4%

0.0%

Non-Operating expense

Dividend per Unit
NAV per unit

* NAV per unit = (Unitholders’ equity + Total appraisal value at the end of fiscal period − Total
property book value at the end of fiscal period) / Investment units issued and outstanding** NOI Yield (annualized) calculated based on book value(Million Yen)

(Reference)
Comparison of forecasts withresults of 17th Fiscal Period

17th Fiscal Period
Forecast (announced
January 2014)

17th Fiscal Period(44 properties)

Difference

Operating Revenue

8,441

8,587

145

Operating Expense

4,685

4,826

141

Net Income

2,984

3,016

31

7,540 yen

7,621 yen

81 yenDividend per Unit
Occupancy Rate

Increase factors:
Gain on property sale (1 property)(+600 million)
Rental revenues of property acquired during
the period (1 property)(+300 million)
Full contribution of rental revenues of acquired properties(3 properties) in the previous period(+261 million)
Other lease business revenue(Proceeds for restoration and repairs, etc.)(+27 million)
Decrease factors:
Utilities revenues(-102 million)
Rental revenues of existing properties(41 properties)(-55 million)(* Of which, -66 million for E SPACE TOWER, -46 million for
Daiwa Ginza, -46 million for Daiwa Higashi Ikebukuro)
Increase factors:
Outsourcing expenses
Depreciation
Repair expenses
Property-related taxes
Asset management fees
Decrease factors:
Utilities expenses
Increase factors:
Interest expenses(+37 million)(+26 million)(+21 million)(+15 million)(+13 million)(-34 million)(+31 million)

Increase factors:
Rental revenues of property additionallyacquired during the period (Integral Tower)(+6 million)
Rental revenues of existing properties(43 properties)(+44 million)
Utilities revenue(+45 million)
Other lease business revenue(+40 million)(Proceeds for restoration and repairs, cancellation penalty, etc.)

Increase factors:
Utilities expenses(+60 million)
Repairexpenses(+36 million)
94.8%
96.4%
1.6%
Outsourcing expenses(+24 million)
This document is not material disclosed in compliance with the Financial Instruments
and Exchange Law or any regulation of similar nature,
Depreciation(+14 million)
nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation
reader to makeinvestment decisions at their own judgment.
Assetadvises
managementfees(+8 million)

5

Highlights of Forecasts for the 18th and 19th Fiscal Periods(Million Yen)

18th FP Forecast█ The 18th Fiscal Period Ending
Difference compared toNovember 2014

(Forecast)

17th FP(46 properties)

Operating Revenue

9,692

1,105

Operating Expense

5,340

513

Operation Income

4,351

591

901

140

3,448

432

Dividend per Unit

7,820 yen

199 yenOccupancy Rate

95.2%

-1.2%

NOI Yield (annualized)*

3.6%

0.2%

Non-Operating expense
Net Income(Million Yen)

█ The 19th Fiscal Period(Forecast)

19th FP Forecast
Ending May 2015(46 properties)

Difference compared to18th FP

Operating Revenue

9,842

150

Operating Expense

5,398

57

Operation Income

4,444

92

769

- 131

3,672

224

Dividend per Unit

8,328 yen

508 yenOccupancy Rate

95.8%

0.6%

NOI Yield (annualized)*

3.7%

0.1%

Non-Operating expense
Net Income

Increase factors:
Rental revenues of properties (2 properties) acquired
during the period
Full contribution of properties (1 property) acquiredin the previous period
Utilities revenue
Rental revenues of existing properties (42 properties)
Decrease factors:
Rental revenues of sold property (1 property)
Other lease business revenue
Increase factors:
Utilities revenue
Depreciation
Asset management fees
Property-related taxes
Outsourcing expenses
Decrease factors:
Repair expenses
Increase factors:
Investment Unit Issuance Expenses
Interest expenses
Increase factors:
Full contribution of rental revenues of properties(3 properties) acquired in the previous period
Rental revenues of existing properties (44 properties)
Decrease factors:
Utilities revenue
Other lease business revenue
Increase factors:
Depreciation
Other commission paid
Asset management fees
Property-related taxes
Decrease factors:
Utilities revenue
Repair expenses

Decrease factors:
Investment Unit Issuance Expenses
Decrease in costs in accordance with redemptionof subordinated investment corporation bonds
Interest expenses(+513 million)(+448 million)(+253 million)(+15 million)(-99 million)(-51 million)(+215 million)(+138 million)(+84 million)(+82 million)(+51 million)(-95 million)(+73 million)(+44 million)(+175 million)(+114 million)(-103 million)(-41 million)(+45 million)(+21 million)(+15 million)(+6 million)(-26 million)(-10 million)(-73 million)(-11 million)(-5 million)

This document is not material disclosed in compliance with the*Expected
Financial Instruments
NOI Yield (annualized)
and ExchangeisLaw
calculatedor any regulation
based onofthe
similarbooknature,value for the17th Fiscal
for existing
properties,
based
on acquisition
for newly
properties.
nor is it intended for the purposes of solicitation. Daiwa OfficePeriod
Investment
Corporation
advisesand
readerto makeinvestment pricedecisionsat theiracquired
own judgment.

6

Changes in Dividends
Changes in Dividends per Unit
(Yen)
10,000
Forecast from year earlier
9,000

8,000

Forecast from six months earlier

Actual dividends

7,400

6,550

6,009

7,200
5,500

6,847

7,000

4,154

4,850

3,903

6,000

3,180

3,600
4,100

2,843

3,280

4,464

3,176

3,671

5,246

5,000

4,000

4,850

5,350

6,250

5,500

6,542

7,300
7,540
7,621

8,328 (*)
7,570
7,820 (*)

7,478

5,986

5,107

3,240

3,000

2,000

1,000

0
8th FP

9th FP

10th FP

11th FP

12th FP

13th FP

14th FP

15th FP

16th FP

17th FP

18th FP

19th FP(*) Forecast from six months earlier for 18th FP and forecast from year earlier for 19th FP are figures of revised distribution forecast announced on June 17, 2014.

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.

7Section 2
Highlights of Public Offering in June 2014

Changes in Major Indices due to Public Offering
Major IndicesEnd of the 16th FP (FPEnded November 2013)

Properties Acquired Upon
Public Offering

After Public Offering

Number of Properties

44 properties

3 properties

46 properties

Total Assets (Total of(planned) acquisition prices)352.7 billion yen

38.7 billion yen

387.5 billion yen

NOI Yield (Annualized)

34.2%

47.6%

35.4%

NAV per Unit

459,893 yen-

469,660 yen

Average Building Age

21.6 years

11.5 years

21.0 years

Number of Tenants

442 companies

26 companies

474 companies

Occupancy Rate

96.3%

98.7%

96.7%

LTV

40.6%

-

40.6%

Acquisition Capability

68.2 billion yen-

75.1 billion yen

Average Debt Remaining
Period3.4 years

Distribution Forecast
per Unit

Before Public Offering

17th Fiscal Period

7,540 yen

18th Fiscal Period

7,570 yen

19th Fiscal Period-

4.5 years(Note) Major indices “After Public Offering”
exclude “Daiwa Shibuya SS,” which
was sold during the 17th FP.

After Public offering

Up 10.5%

7,820 yen
8,328 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.

9Summary of Public Offering in June 2014
Summary of Public Offering

Issuance type

Public offering (Domestic offering)Issuance resolution dateJune 17, 2014

Price determination dateJune 25, 2014

Application period

From June 26, 2014 to June 27, 2014

Payment datePrimary offering: July 2, 2014
Third-party allocation: July 30, 2014
(scheduled)

Number of units issued andoutstanding before public
offering

395,798 units

Number of units offered

Total: 45,202 units, Primary offering: 41,092
units, Third-party allocation: 4,110 units(maximum, scheduled)

Number of units offered

Properties Acquired Upon Capital Increase through Public Offering<Azabu Green Terrace>
Acquisition price: 14,000 million yen(Acquisition date: July 4, 2014)
Expected NOI yield: 4.6%

Acquisition price: 9,481 million
yen (Planned acquisition date:August 1, 2014)

Expected NOI yield: 5.0%

<Integral Tower>
Acquisition price: 15,220 million
yen (Acquisition date: May 29,
2014)
Expected NOI yield: 4.8%

Changes in Investment Unit Price (daily)

441,000 units (including the maximum numberof units by third-party allocation)(yen)

600,000

Issuance
resolution
date

Price
determinationdate

出来高(右軸)Trading
volume(right axis)
出
投資口価格(左軸)Investment
unit price (left axis)
投
東 REIT東証REIT指数(左軸)
TSE
Index (left axis)(units)

14,00012,000550,000

Issue price<Kitahama Grand Building>

466,537 yen

10,0008,000

500,000

Number of units offered

20,374 million yen (including amounts of thirdparty allocation)

6,000
450,000

4,000
2,000

400,000
0Jun. Jun. Jun. Jun. Jun. Jun. Jun. Jul. Jul. Jul. Jul. Jul. Jul.
This document is not material disclosed in compliance with the Financial
Instruments
ExchangeLawor27any7/1
regulation
6/11
6/13
6/19
6/23
7/3
7/7
7/9
7/11
11
13 6/1717and
19
23 6/25
25 6/27
1
3 of
7similar
9 nature,
11 7/15
15
nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

10Section 3
Internal Growth

Leasing Market of Tokyo Office Buildings(Yen / Tsubo)

Leasing Market of Tokyo Office Market

Trend of Office Rent and Vacancy
Rate of 5 Central Wards of Tokyo

Rent(Yen / Tsubo)(Rent)

27,0002008/9(Vacancy Rate)

25,000
B Class Bldg.

23,0002001/6

2007/9A Class Bldg.

2000/1

Rental Market Clock(conceptual chart)
2003/10Large scale buildings* of 5 Central Wards of Tokyo

21,00019,000(Data): Miki Shoji(Tsubo)Predicted figures

From

2012/6

2012/122013/6To

2012/122013/6

2013/12

2014/6

Change in rent area

101,574

66,426

77,129377,219

Change in percentage

2.4%

1.5%

1.7%

8.3%

2013/122012/6

2011/1217,0002013/6
2008/92014/6
2013/1215,000

Office Buildings of 5 Central Wards of Tokyo
2000/1

2001/6

2007/92003/10

13,0002011/12

2014/6

2013/122012/6

2013/6

11,0000%(Data):Transition of the supply and demand balance (standard scenario) from
CBRE “Office market medium term forecast 2014 Tokyo's 23 wards”

1%

2%

3%

4%

5%

6%

7%

8%

(Data): Sanko Estate compiled by Daiwa Real Estate Asset Management* Large scale buildings: A floor area of 200 tsubo (661.2m2) or more.

9%

10%

(Vacancy Rate)

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 (1)- Changes in Occupancy and Cancellation Rates Occupancy Rate

█ Occupancy Rate and Forecast(1) The 17th Fiscal Period (Actual)

96.4％

 Occupancy rate of shinyon curumu increased from 67.5% to 96.3%.
 Occupancy rate of Daiwa Meieki increased from 81.3% to 98.4%.
 Occupancy rate of Daiwa Shibaura recovered from 90.2% to 98.7%.
 Daiwa Minami-Aoyama reached full occupancy.

(2) The 18th Fiscal Period (Forecast)Rate of New Leases / Cancellations*95.2％

 Cancellation of some tenants at Daiwa Onarimon and Akasaka Business Place,etc. are expected, so the forecast occupancy rate at the end of the 18th FP will be
95.2% with a 5.6% cancellation rate.
 Full occupancy expected for total of 4 properties including E Space Tower.

(3) The 19th Fiscal Period (Forecast)

95.8％

 Full occupancy is expected for Daiwa Nihonbashi Horidomecho** and shinyon
curumu, so the forecast occupancy rate for the end of the 19th FP will be 95.8%.

** The name of the asset under management was changed on April 1, 2014.

*Ratio transition of new leases and cancellations areas to the total rentable area.

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

Analyses of Leasing Income (2)- Diversification of Tenants and Transition of New Lease and Cancellations -Tenant numbers(Cases)Transition of New Leases andCancellations and its Reasons *Diversification of Tenants Rent Area(％）

(Cases)Previous numberof leases: 19
16th Period* Office and retail are the target tenants (excluding residence and warehouse)

Cost
Reduction

Space
Expansion

Consolidation

Space
Reduction

BetterLocation

Other

Total

New Leases

2

22

3

0

8

7

42

Cancellations

1

4

7

5

1

6

24

* Excluding residence and warehouse 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.

14Analyses of Leasing Income (3)- Status of Contract Rent -Average Contract Rent and Market Rent

Contract Renewal Area

(Yen/ Tsubo)* The contract rent of the existing 43 properties in the
17th Fiscal Period was 18,481 yen (period-onperiod change of +9 yen).

18,468yen 18,215yen
16,035yen

16,284yen█ The 18th Fiscal Period Contract Renewal Tenants* The ratio of areas scheduled for contract
renewal to the total rentable area
(250,059.12 m2) at the end of 17th Fiscal
Period.

█ The 17h Fiscal Period Contract Renewal* The ratio of areas which had contract
renewal during 17h Fiscal Period to thetotal rentable area (235,857.46 m2) at theend of 16th Fiscal Period.

* Average Contract Rent is an average monthly rent of the tenants contracting at the end of the Fiscal period.
** Unit rent index is the comparison of existing properties’ rents with the existing properties’ rents in the preceding period
for consecutive periods, indexed with the figure at the end of the 7th FP as 100.

(Million Yen)

Attribution Analysis / Monthly Contract Rent*

Decrease by Increase by
Rent
Rent
Revisions Revisions
Increase by
New Leases

End of 16th FP
Monthly Contract Rent

Decrease by
Tenants’Cancellations

Decrease by
Sale

Increase by
New Acquisition

End of 17th FP Monthly
Contract Rent

* Monthly Contact Rent is a total of final rent from tenants contracting at the end of the Fiscal
Period. Monthly Contract Rent for Shinjuku Maynds Tower was adjusted on June 7.

Cancellation

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

Analyses of Leasing Income (4)- Portfolio Map: Increase and Decrease in Unit Contract Rent Compared with Previous Fiscal Period Greater Tokyo

5 Central Wards of Tokyo

Comparison with previous Fiscal Period
Increase and decrease of unit contract rent
Unit rent increase:

11 buildings

Unit rent decrease:

16 buildings

Unit rent maintained :16 buildings

Daiwa Higashi Ikebukuro
Daiwa Kinshicho
Daiwa Osaki 3-chome

Daiwa Shinagawa North

Benex S-3

Shinjuku Ward
Shinjuku Maynds Tower

ShibuyaWard
SHIBUYAEDGEE SPACE TOWER
Daiwa Shibuya Dogenzaka

Daiwa Misakicho
Daiwa Sarugakucho
Daiwa Jimbocho
Daiwa Jinbocho 3-chome
Daiwa Kudan
shinyon curumu
Daiwa Kodenmacho
Daiwa Nihonbashi Hongokucho
Daiwa Nihonbashi Horidomecho
Daiwa Kojimachi 4-chome
Daiwa Nihonbashi Honcho
Chuo Daiwa Kayabacho Build.
Chiyoda Ward
Daiwa Jingumae
Ward
Akasaka Business Place
Daiwa Kyobashi
Daiwa Ginza Annex
Daiwa Ginza 1-chome
Daiwa Minami Aoyama
Daiwa Tsukijiekimae
Daiwa Ginza
Daiwa Tsukiji
Daiwa Shibuya Miyamasuzaka
Daiwa Tsukiji 616
Daiwa Nishi-Shimbashi
Daiwa Tsukishima
Daiwa Shinbashi510
Daiwa Onarimon
Daiwa A Hamamatsucho
Daiwa Azabudai

Minato Ward

Daiwa Shibadaimon
Daiwa Shibaura

Daiwa Kamiooka

Regional Cities
Daiwa Meieki
HonshuMeieki
Daiwa
Minami-Senba
Daiwa
Minami-Senba

As of November 30, 2013
As of May 31, 2014
(Note 1) The names of assets under management were changed on April 1, 2014 for Nihonbashi MS Building, Sunline Building No.7, Jimbocho Place, Nihonbashi-Hongokucho Tosei Building, Tosen Dogenzaka Daini Building, Nisseki
document
not material
Shibuya Building, West Park Osaki, Kamiooka Eye MarkThis
Building,
HonshuisMeieki
Building.disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,(Note 2) Integral Tower is not indicated since they were acquired in
Fiscal Period.
northeis17th
it intended
for the purposes of solicitation. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

16Internal Growth Strategies(Cases)

Leasing Activities

Asset Management Department

Office Management Team8
members

Residential Management Team・Leasing: Collection of broad and accurate leasing information
・Relations with Tenants: Emphasis on communication with tenants・Engineering: Verification of Construction Plans and Environmental Responses

Healthcare Investment Team
Investment Planning Team
Construction Management Team3
members2
members

・Middle office work: Budget and performance management for the portfolios
・Engineering: Formulation and implementation of construction planning of the assets

OfficeManagement
Team
Aims to maximize asset
value with the specialists
group by placing
personnel in charge of all
Teruaki Saito
Takafumi Ushiku
Hideki Kachi
Tadashi Matsumotoproperties in the
Asset management work Asset management work Asset management work Asset management work
investment corporation’s history: 8 years 6 months history: 9 years 10 months history: 9 years 6 months history: 3 years 8 months
portfolio.
(Note) “Asset management
work history” is the numberof years engaged in therelevant work (as of end ofJune 2014) and does notindicate the number of years Keitaro Kumagai
Taku Narahara
Chie Kamimura
employed at the asset
Asset management work Asset management work Asset management work
management company.
history: 1 year 5 months history: 7 years 10 months history: 7 years 7 months

Yuuki Kobatake
Asset management work
history: 1 year 9 months

Vi i
Viewings
held
h ld(numberof times and of visitors))(

Period of viewings(December 2013 to
May 2014)

Number ofviewings

Number ofvisitors

7

690 people total

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

Occupancy Rate of the Properties Subject to Leasing
Improvement in the 17th FP█ shinyon curumu█ Daiwa Meieki(Acquisition Price: 9,650 million yen)

█ Daiwa Higashi-Ikebukuro
 Property located a 6-minute walk Highly convenient property located

40%

100%

98.4%

80%

60%

60%

67.5%
55.9%



growing year by year with large
scale redevelopment being
planned.

the development of the station bldg.
scheduled for opening in 2016.

80%

10-minute walk from HigashiIkebukuro Station on the Tokyo
Metro Yurakucho Line and a 12minute walk from JR Ikebukuro
Station.

 Area of business accumulation

 Area expects to expand further with96.3%

 Middle-scale property located afrom Exit 7 of Nagoya Station on
JR and Nagoya city metro line and2-minute walk from undergrounddoorway leading to Nagoya Station
underground shopping arcade.

a 4-minute walk from the new south
exit of Shinjuku Station on JR anddirectly connected to Shinjuku 3chome Station on the Tokyo Metro
Marunouchi Line and Fuku-toshin
Line.

100%

(Acquisition Price: 2,958 million yen)(Acquisition Price: 5,300 million yen)

78.4%

85.4%

100%

40%

20%

20%

20%

0%
Time of 取得時
Acquisition '13/5(’12/12)（'12/12）0%'13/11'14/5

 It is one of the low occupant properties acquired in

the 15th Fiscal Period.

Time of Acquisition
取得時 '13/5（'13/2）(’13/2)'13/11'14/5

expanding acceptable business types andcategories with shift to building management
considering locational characteristics.

 Achieved high occupancy rate by continuing to

attract tenants selectively while focusing on unit rent,
assuming that the area has growth potential with
development in the Shinjuku new south exit.

69.3%

'13/5

'13/11'14/5

 It is one of the low occupant properties acquired in A certain level of cancellation of tenants was Responded flexibly to various tenant needs by After enhancing the equipment grade such as thethe 15th Fiscal Period.

 A broad leasing strategy was implemented by0%'12/1192.2%

100.0%

60%

40%

51.9%

100.0%

100.0%

80%

81.3%

The property is close toSunshine City and its exterior
with a solid feel is characteristic.

acting promptly for sectional divisions, provision oflarge parking space and such.

 Succeeded in taking in tenant needs while setting

appropriate leasing terms for market situations by
successively recognizing market conditions andfocusing on leasing terms with view to the large
supply expected in a few years.

expected for the 17th Fiscal Period.

renewal of security system, made a broad appeal tothe market as a property that can function as a basecovering Tokyo’s Johoku Area and even some of
Saitama.

 As a result of the above efforts, successfully

attracted tenants with rents close to the market
upper limit and achieved high occupancy rate.

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

18

Value-up Properties in the 18th FP
Properties subject to leasing improvement█ Daiwa Minami-Senba (Acquisition price: 4,810 million yen)

Strategic value-up properties█ Shinjuku Maynds Tower (Acquisition price: 133,800 million yen)

 The property boasts high<Concept of strategic value-up>transportation convenience being
located within a 3 minute-walk from
Shinsaibashi Station on the Osaka
City Subway Midosuji Line, NagahoriTsurumi Line and a 4 minute-walkfrom Yotsubashi Station on the
Yotsubashi Line.
 The property houses renowned brandshops on the lower floors and stands
in one of the most commercialized
area in the Osaka office area.

Site Area

6/ 4-chome, Minami-Senba, Chuo-ku,
Osaka City, Osaka
2
1,405.74 m

Structure

SRC

Floors

B1/8F

Use

Office / Store

Total Floor Area

7,738.47m

Occupancy Rate

75.7% (May 2014)

Completion

September 1986

Address

 Shinjuku Maynds Tower, which was completed in 1995, is approaching its first major challenge with thephysical, economic and social degradation of various facilities.
 Upon updating that will inevitably be required due to aging degradation, we seek not simple

replacement, but we promote strategic value-up plans that will lead to adding values to the property invarious aspects including measures for energy-saving, CS improvement and BCP.

Energy-saving

Introduction of individual heat sourcesComputerizing VAV control (air/temperature
control) Scheduled to be completed in 2015
Introduction of LED lighting to common areas
Visualization of energy (introduction of BEMS Renewal construction of underground
shopping floors
through the renewal of the central monitor)
Renewal construction of common areas on
Scheduled to be completed in 2015
office floors

2

2011

2012
 As a certain level of cancellation of tenants took place in the

17th Fiscal Period, it will be a property subject to leasing
improvement.

CS Improvement

2013

2014

 Aim to realize early occupancy rate recovery by reinforcing

an appeal to end tenants.

2015(scheduled)Long-term earthquake countermeasureconstruction on elevators
Installment of emergency disaster kit cabinets inelevators

・ Renewal construction of common areas on office floors (until 2014)→ CS improvement(Installment work ofindividual heating sources)
・ Introduction of individual heat sources → Energy-saving

・ Long-term earthquake countermeasure construction on elevators → BCP measures
・ Installment of emergency disaster kit cabinets in elevators → BCP measures
・ Introduction of LED lighting to parking area → Energy-saving

 Will expand acceptable business types and categories

taking locational characteristics into consideration, setappropriate level of rents, and provide information promptly
and accurately to the market.

BCP measures(Long-term earthquake
countermeasure construction)

・ Renewal construction on shopping floors →CS improvement
・ Introduction of LED lighting to underground entrance hall → Energy-saving

・ Visualization of energy(introduction of BEMS through the renewal of the central monitor) → Energy-saving
・ Computerizing air/temperature control (VAV control) →CS improvement(Renewal construction ofunderground shopping 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.

19Performance of Shinjuku Maynds Tower & E SPACE TOWER
Acquisition Amount Ratio of Maynds Tower & E Space Tower

Shinjuku Maynds Tower Occupancy Rate

Shinjuku Maynds Tower& E SPACE TOWER:
40.7%

Other Properties:
59.3%

Office Building Supply in the 23 Wards of Tokyo
2010-2013

Others1510,000m2

Shibuya-ku
190,000m2
Shinjuku-ku
450,000m2

E SPACE TOWER Occupancy Rate

2014-2017

Chiyoda-ku
1380,000m2

Chuo-ku
520,000m2
Minato-ku
450,000m2

Others930,000m2

Chiyoda-ku
1400,000m2
Shibuya-ku
190,000m2
Shinjuku-ku
210,000m2
Chuo-ku
Minato-ku
590,000m2
1050,000m2
Upon
Acquisition

Source: Mori Trust Large scale properties are offices with total floor area of 10,000m2 or more.

* E SPACE TOWER was acquired in July 2011

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

20

Measures to Increase Portfolio Value█ BCP Measures (security enhanced)■ Surveillance cameras are added to 6 properties in the portfolio█ Energy–Saving Measures■ Ceiling renovation at Daiwa A Hamamatsucho（Ｄａｉｗａ麹町4丁目ビル)(Daiwa Kyobashi, Wind shelter)(Daiwa Minami-Aoyama, Service entrance)█ Strategic renewal works（Before)（After)■ Renewal works for air conditioning system at Daiwa A Hamamatsucho andDaiwa Misakicho（Before)(Daiwa A Hamamatsucho)█ Strategic tenant attraction█ Coexistence with Local Societies■ Daiwa Ginza (Kagami Crystal)■ Daiwa Onarimon
Free coffee offered by UCC Holdings Co.,
Ltd. at the Tokyo Marathon(Daiwa Misakicho)■ Upgrading common area at E SPACE TOWER（Before)（After)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

Actions Taken for Environmental Efforts█ Acquired “Green Star” rating for 2nd consecutive year at GRESB 2013
Following the participation in 2012, Daiwa Real Estate Asset Management participated in the 2013 Global Real
Estate Sustainability Benchmark (GRESB) survey for the portfolio of Daiwa Office Investment Corporation andearned the best rating of “Green Star” from GRESB Survey 2013. Daiwa Real Estate Asset Management received ahigh evaluation on sustainability from both “Management and Policy” and “Implementation and Measurement”
aspects for the second consecutive year.
GRESB is an industry-led international organization which intends to evaluate sustainability performance of realestate portfolios.
Daiwa Real Estate Asset Management will continue to make efforts to improve sustainability performance.

█ Shinjuku Maynds Tower obtains A rank in “CASBEE Property Appraisal
Shinjuku Maynds Tower was awarded “A rank” in CASBEE for Market Promotion (2014 edition) certification
system.
Comprehensive Assessment System for Built Environment Efficiency (CASBEE) is a system establishedunder the leadership of Ministry of Land, Infrastructure, Transport and Tourism in 2001 with an aim tocomprehensively recognize and assess highly environmental and well-managed real estate properties suchas office buildings.
“CASBEE for Market Promotion” was developed for utilization of CASBEE’s building assessment results
when making appraisals, and evaluation standards are drawn up so that real estate developers and dealers
would be able to utilize CASBEE.
Evaluation items are comprised of five categories of “energy/greenhouse gases,” “water,” “utilization ofsources/safety,” “biodiversity/land” and “indoor environment.” These are similar to environmental performance
evaluation items in LEED, which is a global environmental assessment program.

(Photo) Shinjuku Maynds Tower

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Section 4External Growth

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

Distribution Chart of Portfolio Properties

 Invest heavily in the five central wards of Tokyo and Distance to station (minutes)

equivalent area.
 Thoroughly select properties in view of actual demand

toward location (distance to station, station power,
crowd attraction, surrounding environment), building
specs, etc.

Daiwa Shibaura

Daiwa Nishishimbashi

Daiwa Kinshicho
Daiwa Higashi-Ikebukuro
Azabu Green Terrace Target properties to improve stability and profitabilityof our existing portfolio.

Daiwa Meieki

 Invest in buildings less than 25 years of building age.

Daiwa Tsukiji 616

SHIBUYA EDGE

Daiwa Jingumae

Daiwa Shibadaimon
Daiwa Nihonbashi Hongokucho█ Sale Policy

Daiwa Sarugakucho
Daiwa Azabudai
Daiwa Nihonbashi Horidomecho / Daiwa A Hamamatsucho
Daiwa Shinagawa North

Daiwa Shimbashi 510

Daiwa Misakicho
Daiwa Nihombashi Honcho
Daiwa Shibuya Dogenzaka
Daiwa Minami-Senba
Kitahama Grand Building
Daiwa Shibuya Miyamasuzaka
Daiwa Ginza
Daiwa Tsukishima Bldg.
Daiwa Onarimon
Daiwa Osaki 3-chome
Benex S-3 Daiwa Minami Aoyama Daiwa Kodemmacho
Daiwa Ginza Annex
Integral Tower Daiwa Tsukiji
Daiwa Kyobashi
Daiwa Kayabacho Building E SPACE TOWER

 Consider replacement of properties if necessary bysales in light of properties’ future competitiveness,
profitability, etc.

Daiwa Jinbocho 3-chome

Akasaka Business Place
Daiwa Tsukijiekimae

NearerDaiwa Kamiooka
shinyon curumu

Daiwa Kudan
Daiwa Kojimachi 4-chome

Daiwa Ginza 1-chome

Daiwa Jimbocho Shinjuku Maynds Tower

Number of Properties Reviewed for Acquisition

Building Age (Year)
Newer(Note 1) “Building age” indicates the age as of the date of this document.
(Note 2) “Distance to station” indicates figures calculated based on the code of fair competition concerning property description, which assumes that
one minute is required for every 80m of the distance from each property to the nearest station.
(Note 3) indicates properties acquired before the sponsor change, indicates properties acquired after the sponsor change, and indicatesproperties acquired or planned to be acquired in the 17th FP.

Initiatives for Continuous
Property Acquisitions

Information gathering
capability
Continuous acquisitions ofcompetitive properties

Acquisition
capability* Number of gross proposals.

Financingcapability

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.

24

Changes in Asset Size and Trading Performance
Aim to achieve medium-term goal of asset size of 500 billion yen by utilizing acquisition capability earned through capital increase

Active investment for competitive
properties after thorough selection【Acquisition capability】
75.1 Billion yen【Acquisition capability】
32.0 Billion 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.

25

Properties Acquired after Sponsor ChangeThisdocument
is ofnotthematerial
compliance
Financial
Instruments
andExchangeor any regulationof similar
nature,(Note) The sum of ; i) the total (planned) acquisition pricefromthe time
abovedisclosed
sponsorinchange
up towiththetheendof the current
publicoffering
andLawii) (planned)
prices for
additional
acquisition ofnor isduring
it intended
for theperiod,
purposessolicitation.
Daiwa
Office Investment Corporation advises reader to make investment decisions at their own judgment.
existing properties or of the site in existing properties
the same
areof126,442
millionyen.

26

Portfolio after Acquisitions of Three Properties
Ratio of Major Properties in Portfolio after Public Offering (Note 1)(based on (planned) acquisition price)46 properties, 387,557 million yen
 The ratio for top 10 properties expands to 65%

Others
Shinjuku Maynds Tower

 Portfolio replacement

44 properties
352,786 million yen
as of the end of the
16th Fiscal Period

Daiwa Shibaura
Akasaka Business Place
Kitahama Grand Building (Note 2)
shinyon curumu
Daiwa Onarimon
Azabu Green Terrace (Note 2)

The total of the three properties acquired upon
the public offering accounted for 10% of theentire portfolio, and the ratio for top 10
properties expanded to 65%. We will makeproactive investment in properties of various
scales with the expanded investment capacity.
One property was sold in the 17th Fiscal
Period. We will consider portfolio replacement
through sales of properties going forward by
analyzing long-term profitability and costs foreach property.

Property Sold in the 17th Fiscal Period
E SPACE TOWER(注2)
Integral Tower (Note 2)

Daiwa Ginza（注1）「増資後のポートフォリオ」とは、2013年11月期末における保有資産（44物件）に、「インテグラルタワー」(Note 1) “Portfolio after public offering” refers to the assets of 46 properties, which include the assets (44 properties)（2014年5月29日取得）、「麻布グリーンテラス」（2014年7月4日取得）及び「北浜グランドビル」（2014held at the end of 16th Fiscal Period with addition of Integral Tower (acquired on May 29, 2014), Azabu
年8月1日取得予定）を加え、「Daiwa渋谷SSビル」（2014年5月30日売却）を除いた資産（46物件）をGreen Terrace (acquired on July 4, 2014) and Kitahama Grand Building (to be acquired on August 1,
いいます。
2014), excluding Daiwa Shibuya SS Building (sold on May 30, 2014).
(Note2) The names and investment ratios of the top 10 properties on a (planned) acquisition price basis after the（注２）増資完了後において、取得（予定）価格ベースの上位10物件について、物件名称及び投資比率を表示
completion of public offering are indicated.
しています。

Daiwa Shibuya SS Building
LocationTransfer Date

Shibuya, Shibuya-ku, Tokyo
May 30, 2014

Book Value* Sales Value

3,783 million yen 3,800 million yen

Appraisal Value*
Differences between Sales
Value and Book Value**
Completion

3,840 million yen
17 million yen (+0.4% )July 8, 1977

* Prices are as of November 30, 2013.
** The difference between Sale Price and Book Value differs fromloss on sale.

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Extensive Property Sourcing RouteDevelopers, general contractors, general
trading companies and railway companies

Real estate funds
 Exit for when funds’ investment periods end
 Withdrawal from foreign funds
 Loss cut sales

 Sale of developed properties and owned
properties
 Sale for off-balancing after change ofaccounting system

Intimate exchange of
information as non-realestate type sponsor

Sourcing strategy
utilizing status as nonreal estate type REIT

Financial institutions, creditors and CMBS
(commercial mortgage-backed securities)
 Forced sale of non-recourse loans
 Legal final redemption of CMBS

Utilize intimate relations
as a financial institution
sponsor Secure wide-ranging sourcing route using
status as an independent type REIT toestablish strong relations with businesscompanies, financial institutions, leading realestate brokers and other parties.
 Target optimum expansion of portfolio basedon in-depth data analysis upon carefulselection from among the wide-ranging
information on properties that comes fromdiverse sourcing.

Utilize financial
technologies gained
through sponsors’
experience in structured
finance

General business companies
 Slimming balance sheets Consolidation to core business Caching for new investment

Proposals based onsponsor relation
established throughmany years

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

17th FP Property Acquisition (1)█ Azabu Green Terrace
Acquisition Price: 14,000 million yen (Acquisition Date: July 4, 2014) Expected NOI: 4.6%
Embassy of Lithuania in Japan█ Features of the Property

Embassy of People’s Republic of China

 The Property has 770 tsubos of maximum floor space with
Embassy of State of Qatar in Japan

individual air conditioning allowing fine adjustment, andboasts functionality responding to flexible sectional
divisions.
 The Property has also been recognized for its stylishdesign, receiving the Good Design Award in 2011, etc.
 Initiatives for creating large-scale greenery, such as

improving the environment by reducing the heat-island
phenomenon and giving consideration to biodiversity,taken at the Property are highly evaluated leading toreceiving several environmental awards including from theurban development section of the “Top 100 Biodiversity
Focused Properties” organized by Organization forLandscape and Urban Green Infrastructure and supportedby the Ministry of Land, Infrastructure, Transport andTourism and the Ministry of the Environment, etc.
Location

3-20-1, Minami Azabu, Minato-ku,
Tokyo

Site Area

3,655.20㎡

Structure/ Floor

S/RC/B1/6F

Total Floor Area

17,127.05 ㎡

Appraisal Value

15,000 million yen

Construction Date

September, 2009

Occupancy Rate

100% (Note)

Number of Tenants

10 (Note)(Note) At the time of the acquisition█ Characteristics of Local Area
 The Property is located in Minami-Azabu area, which

is surrounded by the Moto-Azabu/Hiroo international
area where a number of embassies and high-end
residences for foreigners are situated and the
Shirokane-takanawa area that is very popular as aresidential area with a high class cultural environment.
 Tokyo Metro Subway Nanboku-Line and Tokyo

Municipal Subway Mita-Line are available from
Shirokane-takanawa Station, the nearest station,offering convenient access to major business districts
such as Meguro, Roppongi, Nagatacho and Otemachi.
 As it stands in an area that is relatively disaster-free,stable and secure land, it is a highly evaluated officeThis document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,
evenofinsolicitation.
terms of its
BCPOfficequalifications.
nor is it intended forproperty
the purposes
Daiwa
Investment Corporation advises reader to make investment decisions at their own judgment.

29

17th FP Property Acquisition (2)█ Kitahama Grand Building –Scheduled Acquisition Property –Acquisition Price: 9,481 million yen (Scheduled Acquisition Date: August 1, 2014) Expected NOI: 5.0%

█ Integral Tower
Acquisition Price: 15,220 million yen (Acquisition Date: May 29, 2014) Expected NOI: 4.8%

Seiyu
LumineLocation

2-2-14 Aw aji-cho, Chuo-ku,
Osaka-shi, Osaka

Appraisal Value

10,000 million yen

Location

1-2-1 Kamiogi, Suginami-ku,
Toky oAppraisal Value

15,700 million yen

Site Area

2,078.62 ㎡

Construction Date

February, 2008

Site Area

3,170.21 ㎡

Construction Date

June, 1993

Structure/Floor

S/SRC/B1/16F

Occupancy Rate

100.0% (Note)

Structure/Floor

S/SRC/B2/18F

Occupancy Rate

96.8% (Note)

Total Floor Area

18,762.97 ㎡

Number of Tenants

6 (Note)Total Floor Area

25,744.27 ㎡

Number of Tenants

10 (Note) Transportation access(Note) At the time of the acquisition

The Property is located 300 meters south of or approximately a 4
minute-walk from Kitahama Station of Osaka Municipal Subway
Sakaisuji Line. It stands in the area which is regarded as SakaisujiHonmachi business zone with office buildings around the junctions of
Sakaisuji & Honnmachi-Dori and Chuo-Odori, and is also adjacent to the
Kitahama zone.

 Transportation access(Note) At the time of the acquisition

The Property is a 4-minute walk from Ogikubo Station on the JR Chuo,
Sobu and Tokyo Metro Marunouchi lines and enjoys good access tomajor office districts such as Shinjuku, Akasaka, Ginza, Marunouchi
and Otemachi.
 Features of the property

The Ogikubo area may be sought as a sales/service base for thewestern Tokyo area or as a back-up office base with consideration to
The Property has a spacious entrance hall with 5m of ceiling height, andBCP. Furthermore, since there is little supply of office buildings withthe ceiling height for standard floor is This
2,800mm
tsubo
of
high
specificationsin thearea,LawtheorProperty
which
is situateddocumentwith
is notaboutmaterial260
disclosedin compliancewith theFinancial
Instruments andExchange
any regulationof similar
nature, in front ofstandard orderly shape floor space withoutpillars.
Ogikubo
Stationandhighlyvisibleisahard-to-findproperty.
nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

 Features of the property¥

30Section 5
Financial Strategy

Status of Interest-bearing Liabilities (1)Loan to Value Trend(Billion Yen)

█ Status of Interest-bearing Liabilities(End of 17th Fiscal Period, after the public offering)* “After the public offering” refers to after the refinancing conducted on July 8, 2014.

 Ratio of Fixed and Ratio of Long andFloating Borrowings
After Public
Offering

Upper limit range LTV in themedium-term target

69.4％

Short-Term Borrowings
After Public
Offering

30.6％
19.7％
End of17th Fiscal
Period１２.0％
23.5％
End of17th Fiscal
Period

88.0％

76.5％

80.3％

Fixed interest
固定金利Long-term borrowings

Floating interest
変動金利

Current position of borrowings* Subordinated investment corporation bonds scheduled for redemption
in September 2014 are included in Current position of borrowings.

█ Status of Rating<Obtained on February 25, 2014>
Japan Credit Rating Agency, Ltd. (JCR)
Long-term issuer rating
Rating outlook: Stable<Obtained on September 5, 2013>
Rating and Investment Information, Inc. (R&I)*LTV( based on Total Asset) ＝Total interest-bearing liabilities / Total Asset

Issuer rating
Rating outlook: Stable

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

32

Status of Interest-bearing Liabilities (1)Repayment Dates(As of July 8, 2014)

Changes in Procured Years ofInterest-Bearing Liabilities(Million Yen)
(Years)(Years)Diversified borrowings of
19 billion yen (of which,
1.5 billion yen was repaid
with cash on hand)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

Status of Interest-bearing Liabilities (3)- Total Borrowing from Financial Institutions -Transacting Financial Institutions as of the 17th Fiscal Period: 26 BanksName of Financial Institution
Sumitomo Mitsui Banking
Corporation.
Sumitomo Mitsui Trust Bank,
LimitedComparison
Balancewith previous(million yen)periodBalanceratio

Name of Financial Institution

Comparison
Balancewith previous Balance ratio(million yen)period33,400

3,500

20.8%

The Shizuoka Bank, Ltd

2,000

0

1.2%

20,350

2,000

12.7%

Tokio Marine & Nichido Fire
Insurance Co., Ltd.

2,000

0

1.2%

Development Bank of Japan Inc.

18,750

1,000

11.7%

The Musashino Bank, Ltd.

2,000

500

1.2%

Mizuho Bank, Ltd.

13,900

2,000

8.7%

The Higashi-Nippon Bank,
Limited

1,500

0

0.9%

The Bank of Tokyo-Mitsubishi UFJ,Ltd.

11,500

6,500

7.2%

The Hiroshima Bank, Ltd.

1,000

0

0.6%

Shinsei Bank, Ltd.

11,0000

6.9%

The Kagawa Bank, Ltd

1,000

0

0.6%

Resona Bank, Limited

9,000

0

5.6%

The 77 Bank, Ltd.

1,000

0

0.6%

Aozora Bank, Ltd.

6,000

0

3.7%

The Bank of Yokohama, Ltd.

500

0

0.3%

5,000

0

3.1%

The Yamaguchi Bank, Ltd

500

0

0.3%

5,000

0

3.1%

Taiyo Life Insurance Company

300

0

0.2%

Mizuho Trust & Banking Co., Ltd.

5,000

500

3.1%

Nippon Life Insurance Company

300

0

0.2%

The Bank of Fukuoka, Ltd.

4,000

0

2.5%

Fukoku Mutual Life Insurance
Company

200

0

0.1%

ORIX Bank Corporation

2,500

0

1.6%

Total Borrowings

160,200

16,000100.0%The Gunma Bank, Ltd.

2,500

0

1.6%

Mitsubishi UFJ Trust and Banking
Corporation
Kansai Urban Banking
Corporation

Note: Balance is rounded down to less than million yen.

Investment Corporation Bonds
Subordinated investment
corporation bonds

Comparison
Balancewith previous(million yen)period3,5000This 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.

34

Unitholders as of the End of the 17th Fiscal Period█ Unitholders’ Share by Investor Type
Investor Type█ List of Top 10 Investors

16th Fiscal 17th Fiscal
Change in
PeriodPeriodUnits
Number of Number of
Units
Units

Rate*

No.

1 Daiwa Investment Management Inc.

128,905

128,905

0 32.57%

Japan Trustee Services Bank, Ltd.
(T rust Account)

62,70774,00811,301 18.70%

59,321

59,321

0 14.99%

Individuals

28,742

23,461-5,281

5.93%

Financial Institutions

151,918

161,137

9,219

40.71%

Commercial Bank

0

0

0

0.00%

Regional Bank
T rust Bank

1,648
145,009

Life Insurance

2,344
155,207696
10,19816th Fiscal 17th Fiscal
PeriodPeriodChangeNumber of Number of in Units
Units
Units

2

Investor Name

3 Daiwa Securities Group Inc.

0.59%

Rate*

4

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

32,25932,778

519

8.28%

5

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

28,52428,970446

7.32%

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

20,857

19,164-1,693

4.84%

4,969

3,128

-1,841

0.79%

39.21%

498

483

-15

0.12%

4,212

2,279

-1,933

0.58%

6

Other Financial Institution

551

824

273

0.21%

7 Nomura Bank (Luxembourg) S.A.

Other Domestic Corporation

190,980

190,903-77

48.23%

8

The Fuji Fire and Marine Insurance
Co,.Ltd.

4,212

2,086

-2,1260.53%

Foreigner

23,041

19,237-3,804

4.86%

9State Street Bank and Trust Company
505012

1,187

964

-223

0.24%

Securities

1,117

1,060

-57

0.27%

10

BBH for Pyramis GR TR for Employee
Bene PL Pyramis Sel Int SM Cap Comm

922

951

29

0.24%

395,798

395,7980

100.00%Non-life Insurance

Total(*) Rounded to the second decimal place.

(*) Rounded to the second 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.

35

Activities in the 18th Fiscal Period█

Internal Growth → “Bonji-Tettei”
 Based on the portfolio centering on Tokyo, link the improvement in theTokyo office market to internal growth by thoroughly implementing ahands-on approach.

█External Growth → Continuous property acquisitions
 Aim for maximum utilization of acquisition capacity due to the capitalincrease by further strengthening acquisition activities towards the endof the fiscal year.

█

Financial Strategy →Strengthen financial structure Work to further strengthen financial structure against the backdrop offavorable financial market.



Corporate Governances As a REIT in which strict governance is expected, further reinforce
readiness concerning internal control, legal compliance and risk
management in order to gain the trust of unitholders.

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

Appendix

Change in Investment Unit Price and NAV per Unit

8th FP

9th FP

10th FP

11th FP

12th FP

13th FP

14th FP

15th FP

16th FP

17th FP

After Public
Offering* NAV = (Total net assets [after distribution]) – (book value of real estate, etc.) + (market value of real estate, etc. [real estate appraisal value])

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

Summary of Results for the 17th Fiscal Period (1) - Balance Sheet █ Comparison with Results of the 16th Fiscal Period

Current Assets

17th Fiscal Period

16th Fiscal Period

17th Fiscal Period

Million Yen

Million Yen

Million Yen

Million Yen

17,629(% )4.8%

23,357(% )Current Liabilities

6.1%

39,198(% )10.8%

37,718Cash and Deposits

11,47916,842

Operating Accounts Payables

772

904

Cash and Deposits in Trust

5,445

5,694

Short-term Loans Payable

3,000

5,500

704

819

0

0

33,90029,500

Tangible Fixed Assets

346,01995.2%

357,363

93.9%

Current Portion of Investment Corporation Bond342,37494.1%

353,507

92.9%

Accounts Payables-Other

286

461

Advances Received

977

971

Other Current Liabilities

261

381

Building and Others (including Trust Property)

63,243

66,778Land and Others (including Trust Property)

279,089

286,292

42

436

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

2,718

0.7%

2,720

2,713

2,713

4

6

926

0.3%

1,136

Leasehold and Security Deposits Paid in Trust

113

113

Long-term Prepaid Expenses

778

942

Other Investments and Other Assets

33

80

Deferred Assets

4

0.0%

1

Liabilities

Fixed Assets

Current Portion of Long-term Loans Payable

Fixed Liabilities

122,772

Investment Corporation Bonds

0.7%

0.3%

107,300

125,200

Tenant Leasehold and Security Deposits

7,306

7,674

Tenant Leasehold and Security Deposits in Trust

4,597

4,769

68

205

Total Liabilities
Unitholders' equity

Investment Corporation Bond Issuance Costs

4

1

Total Assets

363,653 100.0%

380,723 100.0%

141,349
3,500

Other Fixed Liabilities

0.0%

33.8%

3,500

Long-term Loans Payable

Net Assets

Other Current Assets

Assets16th Fiscal Period

161,97044.5%

179,068

198,780

198,780

Unappropriated Retained Earnings

2,959

3,016

Valuation, Translation Adjustments and Others

- 57

- 142

Total Net Assets
Total Liabilities and Net Assets

201,68355.5%

363,653 100.0%

201,655

(% )
9.9%

37.1%

47.0%

53.0%

380,723 100.0%

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.

39

Summary of Results for the 17th Fiscal Period (2) - Income Statement █ Comparison with Results of the 16th Fiscal Period█ Comparison with the 17th Fiscal Period Forecasts

Unit: Million Yen
16th Fiscal Period

17th Fiscal Period

Number of Properties (at period-end)

44

44

Effective Number of Days of Investment

183

182

Operating Revenues (A)Change

8,432
4,755

8,587
3
4,826

+ 155
+3
+ 71

Expenses related to Rental Business(excluding depreciation)

2,541

2,575

+ 33

Depreciation

1,328

1,355

+ 26

4,561

4,652

+ 91

3,677
726
575
2,955
4
2,959
395,798
7,478

3,760
760
601
3,005
11
3,016
395,798
7,621

+ 83
+ 34
+ 25
+ 49
+6
+ 56
+ 143

Gain on Sale
Operating Expenses (B)Gain and Loss from Rental Operations(excluding gain on sale)
Operating Income (A-B)
Non-operating Expenses
Interest Expense (including cap amortization)
Ordinary Income
Extraordinary Income
Extraordinary Expenses
Net Income
Investment Units Issued and Outstanding
Dividend per Unit (Unit: Yen)

Unit: Million Yen

17th Fiscal Period
Forecast(January 17, 2014)

17th Fiscal Period

Number of Properties (at period-end)

44

44

Effective Number of Days of Investment

182

182

Operating Revenues (A)Change

8,441
4,685

8,587
3
4,826

+ 145
+3
+ 141

Expenses related to Rental Business(excluding depreciation)

2,443

2,575

+ 131

Depreciation

1,341

1,355

+ 14

4,656

4,652

-3

3,756
769
614
2,986
2,984
395,798
7,540

3,760
760
601
3,005
11
3,016
395,798
7,621

+4
-9
- 13
+ 19
+ 11
+ 31
+ 81

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

Gain on Sale
Operating Expenses (B)Gain and Loss from Rental Operations(excluding gain on sale)
Operating Income (A-B)
Non-operating Expenses
Interest Expense (including cap amortization)
Ordinary Income
Extraordinary Income
Extraordinary Expenses
Net Income
Investment Units Issued and Outstanding
Dividend per Unit (Unit: Yen)

Forecasts (18th and 19th Fiscal Periods)█ Forecasts for the 18th and 19th Fiscal Periods
Unit: Million Yen
17th Fiscal Period(May 31, 2014)

17th Period Forecast(Nov. 30, 2014)

18th Period Forecast(May 31, 2015)

Number of Properties (at period-end)

44

46

46

Effective Number of Days of Investment

182

183

182

Operating Revenues (A)Gain on Sale
Operating Expenses (B)Expenses related to Rental Business(excluding depreciation)
Depreciation

8,587

9,692

9,842

3

0

0

4,826

5,340

5,398

2,575

2,841

2,821

1,355

1,493

1,539

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

4,652

5,357

5,481

Operating Income (A-B)

3,760

4,351

4,444

Non-operating Expenses

760

901

769

601

639

622

3,005

3,450

3,674

Extraordinary Income

11

0

0

Extraordinary Expenses

0

0

0

3,016

3,448

3,672

395,798

441,000

441,000

7,621

7,820

8,328

Interest Expense (including cap amortization)
Ordinary Income

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

* Although we assume that rents will remain at the current level, actual rents may differ from the assumption depending on the status of assets 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.

41

Major Financial Data

Item
Number of days of investment
Number of properties at end of period
Occupancy rate at end of period

Unit

13th Period 14th Period 15th Period 16th Period 17th Period

Day

183

183

182

183

182

Property

37

38

41

44

44

%

94.3

96.4

95.0

96.3

96.4

 NOI

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

Net Income + Depreciation – Gain on Sale
 ROA

Annualized Net Income / Total Assets

Average acquisition priceMillion Yen

311,607313,923

325,751

344,016

352,993

NOI (after deduction of gain on sale)

Million Yen

5,265

5,270

5,395

5,890

6,008

 ROE

Funds from operation (FFO)

Million Yen

3,388

3,675

3,869

4,288

4,368

 Loan-to-Value (LTV) at end of Fiscal

Return on asset (ROA)

%

1.2

1.4

1.6

1.7

1.6

Return on equity (ROE)

%

2.0

2.4

2.6

3.0

3.0

Capital adequacy ratio at end of period

%

61.7

61.8

58.8

55.5

53.0

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

%

34.2

34.4

37.5

40.6

43.0

Annualized Net Income / Total Investments
PeriodInterest-bearing liabilities at end of Fiscal
Period / Total assets at end of 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.

42

Status of Interest-bearing Liabilities█ List of Interest-bearing Liabilities
LenderLong term borrowings

Current maturities of long term borrowings

Sumitomo Mitsui Banking Corporation.(*)
Mizuho Trust and Banking Co., Ltd.(*)
Aozora Bank, Ltd.(*)
Shinsei Bank, Ltd.(*)
Resona Bank, Limited(*)
Development Bank of Japan Inc.
Shinsei Bank, Ltd.(*)
Mizuho Bank, Ltd.(*)
The Bank of Yokohama, Ltd.(*)
Sumitomo Mitsui Banking Corporation.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation.
Mizuho Bank, Ltd.
Total current maturities of long term borrowings
Development Bank of Japan Inc.
Shinsei Bank, Ltd.(*)
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation.(*)
Sumitomo Mitsui Trust Bank, Limited(*)
Mizuho Trust and Banking Co., Ltd.(*)
The Shizuoka Bank, Ltd(*)
The Musashino Bank,Ltd.(*)
The 77 Bank, Ltd.(*)
Sumitomo Mitsui Banking Corporation.(*)
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation.(*)
Mizuho Bank, Ltd.(*)
The Hiroshima Bank, Ltd.(*)
Sumitomo Mitsui Trust Bank, Limited(*)
The Gunma Bank, Ltd.(*)
Taiyo Life Insurance Company
Nippon Life Inslance Company
Sumitomo Mitsui Trust Bank, Limited(*)
Development Bank of Japan Inc.
Shinsei Bank, Ltd.(*)
ORIX Bank Corporation(*)
Tokio Marine & Nichido Fire Insurance Co., Ltd.

The Yamaguchi Bank, Ltd.
The Higashi-Nippon Bank, Limited(*)
Sumitomo Mitsui Banking Corporation.(*)
Sumitomo Mitsui Trust Bank, Limited(*)
Aozora Bank, Ltd.(*)
The Kagawa Bank, Ltd.(*)
Aozora Bank, Ltd.(*)
Resona Bank, Limited(*)
Fukoku Mutual Life Insurance Company
The Gunma Bank, Ltd.(*)
The Musashino Bank,Ltd.(*)
Aozora Bank, Ltd.(*)
Sumitomo Mitsui Trust Bank, Limited(*)(As of May 31, 2014)

Balance(million yen)

TypeInterest
Rate (*)

Date ofadvanceDue date

13,500
3,000
1,500
1,000
3,000
3,000
2,000
2,000
500
2,000
1,000
1,500
500
500

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

0.94%
0.97%
0.97%
0.97%
0.88%
1.09%
0.89%
0.67%
0.67%
T+0.35%
T+0.35%
T+0.30%T+0.30%T+0.30%11/7/8
11/7/8
11/7/8
11/7/8
11/8/31
11/9/30
11/9/30
12/5/21
12/5/21
13/11/29
13/11/29
14/5/29
14/5/29
14/5/29

14/7/8
14/7/8
14/7/8
14/7/815/2/27
15/3/31
15/3/31
15/5/29
15/5/29
14/9/17
14/9/17
15/3/31
15/3/31
15/3/3135,000
1,700
2,000
6,500
4,000
3,000
1,500
2,000
1,000
1,000
500
2,550
1,500
1,000
1,000
3,400
1,000
300
300
1,950
2,000
2,000
1,000
1,000
500
500
2,000
1,500
1,500
1,000
2,000
2,000
200
500
500
1,000
1,500

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

1.02%
0.75%
1.02%
0.86%
0.85%
0.85%
0.52%
0.61%
0.61%
0.61%
0.96%
0.71%
0.71%
0.79%
0.69%
0.57%
0.60%
0.60%
0.60%
0.85%
0.60%
0.68%
0.69%
0.69%
0.73%
0.90%
0.90%
0.52%
0.81%
0.90%
0.90%
0.53%
0.72%
0.57%
0.88%
0.84%

12/5/11
12/5/21
12/5/21
12/5/21
12/5/21
12/5/21
12/8/31
12/9/18
12/9/18
12/9/18
12/9/18
12/9/18
12/9/18
12/9/18
12/9/18
12/11/30
12/11/30
12/11/30
12/11/30
12/12/3
12/12/3
13/1/10
13/2/1
13/2/1
13/2/1
13/2/1
13/2/1
13/2/28
13/2/28
13/2/28
13/3/1
13/3/29
13/4/12
13/4/12
13/4/12
13/4/12

17/5/10
16/5/31
17/5/22
17/5/31
17/5/31
17/5/31
15/8/31
15/8/31
15/8/31
15/8/31
17/8/31
17/8/31
17/8/31
17/8/31
18/2/28
15/11/30
15/11/30
15/11/30
18/2/28
17/11/30
17/11/30
18/2/28
17/11/30
17/11/30
18/2/28
20/2/28
20/2/28
16/8/31
19/2/28
20/2/28
20/2/28
16/5/31
18/5/31
18/5/31
19/5/31
19/11/29

Term

LenderBalance
TypeInterest
Date ofDue date(million yen)
Rate (*)
advance
Development Bank of Japan Inc.
1,000 Fixed
0.96%
13/4/12
19/11/29
Kansai Urban Banking Corporation
1,500 Fixed
0.89%
13/6/28
18/8/31
Kansai Urban Banking Corporation(*)
1,500 Fixed
0.67%
13/6/28
19/8/30
Kansai Urban Banking Corporation(*)
2,000 Fixed
0.78%
13/6/28
20/8/31Development Bank of Japan Inc.
1,000 Fixed
0.83%
13/7/3
18/8/31
Sumitomo Mitsui Banking Corporation.(*)
1,600 Fixed
0.78%
13/7/3
20/8/31
Shinsei Bank, Ltd.(*)
1,000 Fixed
0.78%
13/7/3
20/11/30
The Higashi-Nippon Bank, Limited(*)
1,000 Fixed
0.81%
13/7/3
20/11/30
The Bank of Fukuoka, Ltd.(*)
1,000 Fixed
0.68%
13/7/818/8/31
Sumitomo Mitsui Trust Bank, Limited(*)
1,000 Fixed
0.82%
13/7/8
19/11/29
Sumitomo Mitsui Trust Bank, Limited(*)
4,000 Fixed
0.82%
13/7/8
20/5/29
Shinsei Bank, Ltd.(*)
1,000 Fixed
0.82%
13/7/31
21/5/31
Shinsei Bank, Ltd.(*)
1,000 Fixed
0.84%
13/7/31
21/8/31
Tokio Marine & Nichido Fire Insurance Co., Ltd.(*)
1,000 Fixed
0.53%
13/8/918/7/31
The Bank of Tokyo-Mitsubishi UFJ, Ltd.(*)
2,000 Fixed
0.66%
13/8/918/8/31
The Bank of Fukuoka, Ltd.(*)
1,000 Fixed
0.68%
13/8/918/8/31
The Bank of Tokyo-Mitsubishi UFJ, Ltd.(*)
3,000 Fixed
0.76%
13/8/920/8/31
Sumitomo Mitsui Trust Bank, Limited
1,000 Float T+0.35%
13/8/921/2/26
Sumitomo Mitsui Banking Corporation.
1,400 Float T+0.35%
13/8/921/5/31
Mitsubishi UFJ Trust and Banking Corporation(*)
2,000 Fixed
0.62%
13/9/27
18/11/30
Mizuho Bank, Ltd.
4,000 Float T+0.33%
13/9/27
21/3/31
Sumitomo Mitsui Banking Corporation.
1,400 Float T+0.33%
13/9/27
21/3/31
ORIX Bank Corporation
1,500 Fixed
0.69%
13/9/30
19/2/28
The Bank of Fukuoka, Ltd.(*)
2,000 Fixed
0.66%
13/9/30
19/3/29
Shinsei Bank, Ltd.(*)
1,000 Fixed
0.73%
13/11/29
20/11/30
Resona Bank, Limited(*)
2,000 Fixed
0.57%
14/3/18
19/9/30
Resona Bank, Limited
2,000 Float T+0.30%
14/3/18
21/3/31
Sumitomo Mitsui Banking Corporation.
1,000 Float T+0.30%
14/3/25
21/3/31
Sumitomo Mitsui Banking Corporation.
1,000 Float T+0.35%
14/3/25
22/2/28
Mitsubishi UFJ Trust and Banking Corporation(*)
3,000 Fixed
0.50%
14/3/31
19/3/29
The Gunma Bank, Ltd.(*)
1,000 Fixed
0.50%
14/3/31
19/3/29
Mizuho Bank, Ltd.(*)
1,000 Fixed
0.64%
14/3/31
20/3/31
Mizuho Bank, Ltd.
3,900 Float T+0.30%
14/3/31
21/3/31
Sumitomo Mitsui Trust Bank, Limited
2,000 Fixed
0.47%
14/5/29
19/5/31
The Musashino Bank,Ltd.(*)
500 Fixed
0.43%
14/5/29
19/5/31
The Bank of Tokyo-Mitsubishi UFJ, Ltd.(*)
2,000 Fixed
0.60%
14/5/29
20/5/29
Mizuho Trust and Banking Co., Ltd.(*)
500 Fixed
0.60%
14/5/29
20/5/29
1,000 Fixed
0.74%
14/5/29
20/11/30
Development Bank of Japan Inc.
1,000 Float T+0.30%
14/5/29
21/11/30
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
1,500 Float T+0.33%
14/5/29
22/5/31
Mizuho Bank, Ltd.
1,000 Float T+0.33%
14/5/29
22/5/31
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
3,000 Float T+0.35%
14/5/29
22/11/30
Sumitomo Mitsui Banking Corporation.
1,000 Float T+0.35%
14/5/29
22/11/30
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
125,200
Total long-term borrowings
160,200
Total borrowings
Note: Fixed Interest Rate is rounded to the second decimal place.
(*) Interest rates that were changed from a floating rate to a fixed rate by concluding the swap
agreement are described as fixed interest rates.
Long term borrowings

Term█ Investment Corporation Bonds
Term

LenderBalance
TypeInterest
Date ofDue date(million yen)
Rate (% )advanceLong-term No. 1 Unsecured and Subordinated3,500 Float* T+2.40%* 09/9/17 19/9/17
This document is not material disclosed in compliancewith the Financial Instruments and Exchange
Law or any regulation of similar nature,
Total Investment corporate bonds
3,500

nor is it intended for the purposes of solicitation. *Daiwa
Office Investment
Corporation
advisesmakedecisions
their own
judgment.
The interest
rate will change
to 6 month
TIBORreader+ 390 tobps,
frominvestment
the day after
the tenthatpayment
date
until maturity, due to 5 year lapse step-up floating interest.

43

Analyses of Tenants(As of May 31, 2014)

Major Tenants Top 10 List
Tenant Name(*1)

Property

Not disclosed% Share of Industries* of Top 100 Tenants**% of Total
Leased Space( ㎡)
Leased Space
(*2)
(*3)

Daiwa Tsukishima

6,379.88

2.5%

Trend Micro Incorporated

Shinjuku Maynds Tower

6,314.58

2.5%

Not disclosed

Daiwa Kayabacho Build.

5,899.11

2.3%

E SPACE TOWER

5,883.40

2.3%

EMC Japan

Shinjuku Maynds Tower

5,693.39

2.2%

Not disclosed

Shinjuku Maynds Tower

5,337.60

2.1%

Fields Corporation

UCC Holdings Co.,Ltd.

Daiwa Onariomon

5,100.06

2.0%

Sekisui House, Ltd.

Shinjuku Maynds Tower

4,777.69

1.9%

Integral Tower

4,031.55

1.6%

E SPACE TOWER

3,966.29

1.5%

Tokio Marine & Nichido Anshin Consulting Co., Ltd.
FreeBit Co., Ltd.
Total

53,383.55

21.3%

Other
13.6%
Precision Instruments
3.4%

NPOs
0.5%

Electric Appliances
Foods 3.6%

Services
25.3%

3.7%
Insurance
3.8%
Schools
4.3%
Banks
4.5%
Real Estate
8.2%

Wholesale
8.8%

Information &Communication
20.4%* The leased space of top 100 tenants covers 63.4% of total leased space as ofthe end of the 17th Fiscal Period.
** Industries are categorized according to TSE’s 33 industry groups.

*1 Not disclosed due to tenant's request.
*2 Leased spaces of the tenants in Shinjuku Maynds Tower are described as the figure equivalent to 6/7, ownership % of the Investment Corporation.
*3 Rounded down to 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.

44

Appraisal Value Compared to the Previous Fiscal Period (1)(Unit: Million Yen)
Property Name

Compared to End of
16th Period(*)

Appraisal Value
End of 16th Period

End of 17th Period

Difference

ChangeDaiwa Ginza

14,90015,400+500

3.4%Daiwa Ginza Annex

3,140

3,150

+10

Daiwa Shibaura

7,470

7,180

Daiwa Minami Aoyama

4,100

Daiwa Sarugakucho

Acquisition
Price

Compared to
Acquisition Price

Cap Rate

Difference

Change16th Period

17th Period

14,100+1,300

9.2%

4.2%

4.2%

0.3%

3,050

+100

3.3%

4.1%

4.1%

-290

-3.9%

8,265

-1,085-13.1%

4.9%

4.8%

4,100

-

0.0%

4,550

-450

-9.9%

4.5%

4.5%

3,160

3,160

-

0.0%

3,190

-30

-0.9%

5.0%

5.0%

Daiwa A Hamamatsucho

2,850

2,860

+10

0.4%

2,865

-5

-0.2%

4.6%

4.5%

Daiwa Jingumae

2,100

2,100

-

0.0%

2,800

-700

-25.0%

4.4%

4.4%

Daiwa Shibadaimon

2,640

2,640

-

0.0%

2,578

+62

2.4%

4.5%

4.4%

Daiwa Misakicho

2,450

2,500

+50

2.0%

2,346

+154

6.6%

4.8%

4.7%

Daiwa Shimbashi 510

2,400

2,380

-20

-0.8%

2,080

+300

14.4%

4.7%

4.7%

Daiwa Tsukijiekimae

1,400

1,470

+70

5.0%

1,560

-90

-5.8%

5.0%

4.9%

Daiwa Tsukiji

1,460

1,440

-20

-1.4%

1,240

+200

16.1%

4.9%

4.8%

Daiwa Tsukiji 616

2,410

2,480

+70

2.9%

2,440

+40

1.6%

4.9%

4.8%

Daiwa Tsukishima Bldg.

8,010

8,140

+130

1.6%

7,840

+300

3.8%

5.0%

4.9%

Daiwa Nihonbashi Horidomecho

2,480

2,490

+10

0.4%

2,520

-30

-1.2%

4.7%

4.7%

Daiwa Azabudai

1,740

1,700

-40

-2.3%

1,600

+100

6.3%

4.5%

4.6%

Daiwa Nihombashi Honcho

7,130

7,100

-30

-0.4%

7,420

-320

-4.3%

4.6%

4.6%

Daiwa Ginza 1-chome

4,590

4,500

-90

-2.0%

4,620

-120

-2.6%

4.4%

4.4%

Daiwa Kyobashi

3,100

3,110

+10

0.3%

3,460

-350

-10.1%

4.6%

4.6%

Daiwa Kojimachi 4-chome

2,640

2,660

+20

0.8%

2,910

-250

-8.6%

4.3%

4.3%

Daiwa Onarimon

13,60013,000

-600

-4.4%

13,860

-860

-6.2%

4.4%

4.4%

Shinjuku Maynds Tower

113,000

113,000-

0.0%

133,800-20,800-15.5%

3.8%

3.8%

4,260

4,300

+40

0.9%

5,900

-1,600-27.1%

4.3%

4.3%

SHIBUYA EDGE

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

45

Appraisal Value Compared to the Previous Fiscal Period (2)(Unit: Million Yen)
Property Name

Compared to End of
16th Period(*)

Appraisal Value
End of 16th Period

End of 17th Period

Daiwa Kodemmacho

1,980

1,980

-

0.0%

Daiwa Jimbocho

2,860

2,900

+40

Daiwa Nishishimbashi

4,710

4,800

Daiwa Kudan

2,920

Daiwa Kayabacho Building

Cap Rate

Change16th Period

17th Period

2,460

-480

-19.5%

4.9%

4.9%

1.4%

4,150

-1,250-30.1%

4.9%

4.8%

+90

1.9%

5,000

-200

-4.0%

4.7%

4.6%

2,960

+40

1.4%

4,000

-1,040-26.0%

4.7%

4.6%

6,460

6,610

+150

2.3%

5,600

+1,010

18.0%

4.3%

4.2%

Daiwa Jinbocho 3-chome

3,760

3,860

+100

2.7%

3,550

+310

8.7%

4.3%

4.2%

E SPACE TOWER

27,10028,100+1,0003.7%

24,000+4,100

17.1%

4.1%

4.1%

Daiwa Nihonbashi Hongokucho

1,850

1,890

+40

2.2%

1,721

+169

9.8%

4.9%

4.8%

shinyon curumu

10,30010,400

+100

1.0%

9,650

+750

7.8%

4.2%

4.1%

Daiwa Shibuya Dogenzaka

4,750

4,750

-

0.0%

4,500

+250

5.6%

4.4%

4.3%

Akasaka Business Place

10,40010,700

+300

2.9%

9,200

+1,500

16.3%

4.2%

4.1%

Daiwa Shibuya Miyamasuzaka

7,280

7,450

+170

2.3%

7,000

+450

6.4%

4.3%

4.2%

Daiwa Kinshicho

3,340

3,570

+230

6.9%

3,653

-83

-2.3%

5.2%

5.1%

Daiwa Higashi-Ikebukuro

3,330

3,240

-90

-2.7%

2,958

+282

9.5%

5.1%

5.0%

Benex S-3

3,290

3,240

-50

-1.5%

4,950

-1,710-34.5%

5.5%

5.6%

Daiwa Shinagawa North

5,890

5,890

-

0.0%

7,710

-1,820-23.6%

4.9%

4.9%

Daiwa Osaki 3-chome

1,980

2,030

+50

2.5%

1,650

+380

23.0%

4.7%

4.6%

Daiwa Kamiooka

2,070

2,120

+50

2.4%

2,000

+120

6.0%

5.5%

5.4%

-

15,700--15,220

+480

3.2%

-

4.6%

Daiwa Minami-Senba

2,780

2,770

-10

-0.4%

4,810

-2,040-42.4%

5.4%

5.4%

Daiwa Meieki

6,370

6,410

+40

0.6%

5,300

+1,110

20.9%

5.1%

5.0%

324,450

342,230+2,0800.6%

364,076-21,846

-6.0%

-

-

Total

ChangeCompared to
Acquisition Price
Difference

Integral Tower

Difference

Acquisition
Price*Difference and change in “Compared to End of the 16th Period” do not include the impact of the properties acquired/sold in the 17th 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.

46

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

Summary of Appraisal Report (End of 17th Fiscal Period)
Property Name

Appraisal Value(End of 17th period)

Direct Capitalization Method
Value

Cap Rate

DCF Method
Value

Discount Rate

Integrated ValueT erminal
Cap Rate

Daiwa Ginza

15,40015,7004.2%

15,0004.0%

4.4%

10,500Daiwa Ginza Annex

3,150

3,200

4.1%

3,100

3.9%

4.3%

2,720

Daiwa Shibaura

7,180

7,360

4.8%

7,100

4.6%

5.0%

5,610

Daiwa Minami Aoyama

4,100

4,180

4.5%

4,020

4.3%

4.7%

3,400

Daiwa Sarugakucho

3,160

3,200

5.0%

3,110

4.8%

5.2%

1,510

Daiwa A Hamamatsucho

2,860

2,910

4.5%

2,840

4.3%

4.7%

1,790

Daiwa Jingumae

2,100

2,110

4.4%

2,080

4.2%

4.6%

2,090

Daiwa Shibadaimon

2,640

2,700

4.4%

2,610

4.2%

4.6%

1,620

Daiwa Misakicho

2,500

2,520

4.7%

2,490

4.5%

4.9%

1,320

Daiwa Shimbashi 510

2,380

2,430

4.7%

2,320

4.5%

4.9%

1,780

Daiwa T sukijiekimae

1,470

1,510

4.9%

1,450

4.9%

5.1%

910

Daiwa T sukiji

1,440

1,450

4.8%

1,440

4.8%

5.0%

661

Daiwa T sukiji 616

2,480

2,490

4.8%

2,470

4.5%

5.0%

1,140

Daiwa T sukishima Bldg.

8,140

8,180

4.9%

8,120

4.6%

5.1%

4,280

Daiwa Nihonbashi Horidomecho

2,490

2,520

4.7%

2,450

4.5%

4.9%

1,520

Daiwa Azabudai

1,700

1,730

4.6%

1,660

4.4%

4.8%

1,180

Daiwa Nihombashi Honcho

7,100

7,260

4.6%

6,930

4.3%

4.8%

3,960

Daiwa Ginza 1-chome

4,500

4,590

4.4%

4,400

4.1%

4.6%

3,940

Daiwa Kyobashi

3,110

3,160

4.6%

3,050

4.4%

4.8%

1,810

Daiwa Kojimachi 4-chome

2,660

2,800

4.3%

2,600

4.1%

4.5%

3,460

Daiwa Onarimon

13,00013,2004.4%

12,700

4.2%

4.6%

10,100Shinjuku Maynds T ower

113,000

139,000

3.8%

129,000

3.6%

4.0%

96,600

4,300

4,400

4.3%

4,200

4.1%

4.5%

2,860

SHIBUYA EDGE

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.

*Appraisal value for Shinjuku Maynds Tower is indicated as 6/7 of the total appraisal value for the building, which is equivalent to the co-ownership interest DOI owns.

47

Appraisal Value at End of Fiscal Period (2)(Unit: Million Yen)
Summary of Appraisal Report (End of 17th Fiscal Period)

Property Name

Appraisal Value(End of 17th period)

Direct Capitalization Method
Value

DCF Method

Cap Rate

Value

Integrated Value

Discount Rate

T erminal
Cap Rate

Daiwa Kodemmacho

1,980

2,010

4.9%

1,950

4.7%

5.1%

951

Daiwa Jimbocho

2,900

3,070

4.8%

2,830

4.8%

5.0%

2,680

Daiwa Nishishimbashi

4,800

4,940

4.6%

4,740

4.4%

4.8%

3,400

Daiwa Kudan

2,960

3,170

4.6%

2,890

4.6%

4.8%

1,970

Daiwa Kayabacho Building

6,610

6,710

4.2%

6,560

4.0%

4.4%

4,770

Daiwa Jinbocho 3-chome

3,860

3,960

4.2%

3,810

4.0%

4.4%

3,180

E SPACE T OWER

28,10028,5004.1%

27,7003.8%

4.3%

21,300Daiwa Nihonbashi Hongokucho

1,890

1,920

4.8%

1,870

4.6%

5.0%

1,330

shinyon curumu

10,40010,600

4.1%

10,3003.9%

4.3%

10,300Daiwa Shibuya Dogenzaka

4,750

4,910

4.3%

4,680

4.1%

4.5%

3,980

Akasaka Business Place

10,70010,900

4.1%

10,600

3.9%

4.3%

11,200Daiwa Shibuya Miyamasuzaka

7,450

7,490

4.2%

7,400

3.9%

4.3%

7,770

Daiwa Kinshicho

3,570

3,610

5.1%

3,550

4.9%

5.3%

2,070

Daiwa Higashi-Ikebukuro

3,240

3,320

5.0%

3,200

4.8%

5.2%

2,030

Benex S-3

3,240

3,290

5.6%

3,180

5.4%

5.8%

3,040

Daiwa Shinagawa North

5,890

6,010

4.9%

5,760

4.7%

5.1%

4,280

Daiwa Osaki 3-chome

2,030

2,050

4.6%

2,020

4.4%

4.8%

1,300

Daiwa Kamiooka

2,120

2,120

5.4%

2,120

5.2%

5.6%

1,930

Integral T ower

15,70016,0004.6%

15,6004.4%

4.8%

10,800Daiwa Minami-Senba

2,770

2,810

5.4%

2,720

5.2%

5.6%

1,780

Daiwa Meieki

6,410

6,580

5.0%

6,340

5.0%

5.2%

7,010

342,230

372,570-

354,960--

271,832

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

48

Portfolio Performance Summary (1)(16th-17th Fiscal Period Results by Property)
Property Name

Daiwa Ginza

Daiwa Ginza Annex

Daiwa Shibaura

Daiwa Minami Aoyama

Daiwa Sarugakucho

Daiwa A Hamamatsucho

Daiwa Jingumae

Acquisition Price (million yen)

Profits from property-related activities (*2)

14,100
3,050
8,265
4,550
3,190
2,865
2,800
16th Period 17th Period 16th Period 17th Period 16th Period 17th Period 16th Period 17th Period 16th Period 17th Period 16th Period 17th Period 16th Period 17th Period
13,53813,486
2,886
2,871
8,081
8,074
4,469
4,458
3,260
3,245
2,798
2,798
2,720
2,712
Book Value (million yen)
14,90015,400
3,140
3,150
7,470
7,180
4,100
4,100
3,160
3,160
2,850
2,860
2,100
2,100
Appraisal Value (million yen)
86.9
92.6
100.0
100.0
90.2
98.7
94.1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Occupancy Rate (% )
9.17
9.17
7.46
7.46
5.09
5.09
12.79
12.79
9.79
9.79
6.03
6.03
12.01
12.01
PML (% ) (*1)
Best Property
Best Property
Xymax Properties
Best Property
Property Partners
Best Property
Best Property
Property Management Company
183
182
183
182
183
182
183
182
183
182
183
182
183
182
Number of operating days
364,216
304,356
92,652
92,349229,030
223,181
119,339
120,056(*6)(*6)
136,723
134,479
69,44969,075(1) Property-related Revenues
350,622294,524
92,652
92,349227,321
221,486
119,339
120,056- (*6)- (*6)
136,723
134,479
69,44969,075
Rent (incl. common service fees)
13,594
9,831
0
0
1,709
1,695
0
0
- (*6)- (*6)0
0
0
0
Other Revenues (*3)
99,776106,293
24,682
21,421
66,27675,692
28,292
28,292- (*6)- (*6)
62,01060,85017,856
16,291(2) Property-related Expenses
14,34625,541
5,292
3,788
14,12223,0983,640
5,244- (*6)- (*6)
8,598
8,885
2,838
2,888
Administrative Expenses
34,16028,2896,989
6,739
21,774
20,465
10,056
8,464- (*6)- (*6)
11,226
10,5496,465
5,619
Utility Charges
5,008
4,460
1,460
1,359
3,705
3,327
1,858
1,819
- (*6)- (*6)
2,049
1,998
1,384
1,200
Property Management Fees
27,61527,616
9,100
9,096
19,20819,207
11,692
11,691- (*6)- (*6)
8,640
8,640
6,302
6,302
Property-related Taxes
455
441
108
103
429
409
155
148
- (*6)- (*6)
197
189
85
82
Non-life Insurance Costs
6,348
8,102
1,730
333
7,035
9,164
888
924
- (*6)- (*6)
1,897
1,186
774
192
Repair Expenses
11,841
11,84100
0
20
00- (*6)- (*6)
29,40029,400
7
7
Other Expenses
264,439
198,063
67,96970,927
162,754
147,488
91,046
91,76485,56886,51974,71373,62851,59352,783(3) NOI ( ＝(1)-(2)) (*4)
527,434
397,214
135,568
142,244324,620295,788
181,596
184,033
170,670
173,513
149,018
147,662
102,904
105,857
Annualized NOI
3.9%
2.9%
4.7%
5.0%
4.0%
3.7%
4.1%
4.1%
5.2%
5.3%
5.3%
5.3%
3.8%
3.9%
NOI Yield (*5)
Depreciation and Amortization
69,94670,384
18,27817,89225,12024,992
11,614
11,930- (*6)- (*6)
12,41012,637
10,251
8,463
Proceeds for Restoration and(RefereRepair Worknce)

Proceeds from Amortization of
Leasehold and Security

3,100

1,800

0

0

255

437

0

0

- (*6)- (*6)

0

0

0

0

0

0

0

0

0

0

0

0

- (*6)- (*6)

0000(*1) Sompo Japan Nipponkoa Risk Management Inc. has prepared the PML for the 17th fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2014).
(*2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(*3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*4) (3) NOI in this table is calculated by adjusting the Property-related Taxes for the “NOI (after deduction of gain on sale)”aforementioned in the Appendix “Major Financial Data” so the figures do not match.
(*5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,(*6) Not disclosed due to tenant's request

nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

49

Portfolio Performance Summary (2)(16th-17th Fiscal Period Results by Property)
Property Name

Daiwa Shibadaimon

Daiwa Misakicho

Daiwa Shimbashi 510

Daiwa Tsukijiekimae

Daiwa Tsukiji

Daiwa Tsukiji 616

Daiwa Tsukishima Bldg.

Acquisition Price (million yen)

Profits from property-related activities (*2)

2,578
2,346
2,080
1,560
1,240
2,440
7,840
16th Period 17th Period 16th Period 17th Period 16th Period 17th Period 16th Period 17th Period 16th Period 17th Period 16th Period 17th Period 16th Period 17th Period
2,414
2,407
2,191
2,228
2,123
2,118
1,407
1,393
1,196
1,189
2,257
2,249
7,030
6,992
Book Value (million yen)
2,640
2,640
2,450
2,500
2,400
2,380
1,400
1,470
1,460
1,440
2,410
2,480
8,010
8,140
Appraisal Value (million yen)
100.0
100.0
100.0
100.0
99.4
99.4
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Occupancy Rate (% )
2.99
2.99
6.68
6.68
8.13
8.13
7.67
7.67
9.70
9.70
7.69
7.69
10.89
10.89
PML (% ) (*1)
Best
PropertyBest
Property
Property
Partners
MS
Building
Support
Xymax
PropertiesMS
Building
Support
Property
Partners
Property Management Company
183
182
183
182
183
182
183
182
183
182
183
182
183
182
Number of operating days
88,00776,623- (*6)- (*6)
81,90382,815
12,70926,12847,88349,65875,83783,656
287,031
281,196(1) Property-related Revenues
88,00776,623- (*6)- (*6)
80,10382,815
12,67926,12847,88349,65875,83783,656
287,031
281,196
Rent (incl. common service fees)00- (*6)- (*6)
1,800
0
30
0
0
0
0
0
0
0
Other Revenues (*3)
23,16520,821- (*6)- (*6)
20,101
17,82337,26916,032
12,31011,693
22,883
20,03578,27553,343(2) Property-related Expenses
5,583
5,545
- (*6)- (*6)
4,391
3,816
18,184
3,005
2,534
2,566
3,957
3,540
8,468
8,150
Administrative Expenses
9,081
7,413
- (*6)- (*6)
7,638
6,732
4,030
6,634
3,533
3,463
8,003
7,262
31,40327,146
Utility Charges
1,301
1,201
- (*6)- (*6)
1,219
1,246
1,200
1,200
1,200
1,200
1,206
1,296
4,293
4,219
Property Management Fees
6,249
6,249
- (*6)- (*6)
5,562
5,575
5,033
5,019
3,824
3,824
6,680
6,764
13,213
13,213
Property-related Taxes
118
114- (*6)- (*6)
117
113
96
95
59
57
130
125
319
308
Non-life Insurance Costs832
297- (*6)- (*6)
1,172
339
8,724
61
1,158
582
2,904
1,046
20,576306
Repair Expenses
00- (*6)- (*6)
0
0
0
15
0
0
0
0
0
0
Other Expenses
64,84255,801
68,81462,79961,80264,992-24,560
10,09635,57337,96552,95363,620208,756
227,852(3) NOI ( ＝(1)-(2)) (*4)
129,329
111,910
137,253
125,944
123,266
130,342-48,986
20,24770,952
76,138105,618
127,591
416,372
456,956
Annualized NOI
5.4%
4.6%
6.3%
5.7%
5.8%
6.2%
-3.5%
1.5%
5.9%
6.4%
4.7%
5.7%
5.9%
6.5%
NOI Yield (*5)
Depreciation and Amortization
9,507
9,575
- (*6)- (*6)
6,615
6,772
14,175
14,233
7,100
7,160
20,277
20,25354,50648,783
Proceeds for Restoration and(RefereRepair Worknce)

Proceeds from Amortization of
Leasehold and Security00- (*6)- (*6)

0

0

0

0

0

0

0

0

0

0

0

0

- (*6)- (*6)

1,800

0

0

0

0

0

0

0

0

0

(*1) Sompo Japan Nipponkoa Risk Management Inc. has prepared the PML for the 17th fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2014).
(*2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(*3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*4) (3) NOI in this table is calculated by adjusting the Property-related Taxes for the “NOI (after deduction of gain on sale)”aforementioned in the Appendix “Major Financial Data” so the figures do not match.
(*5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,(*6) Not disclosed due to tenant's request

nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.

50

Portfolio Performance Summary (3)(16th-17th Fiscal Period Results by Property)
Property Name

Daiwa Nihonbashi

Daiwa Azabudai

Horidomecho

Daiwa Nihombashi

Daiwa Shibuya SS(*6)

Daiwa Ginza 1-chome

HonchoDaiwa Kojimachi 4-

Daiwa Kyobashi

chome

Acquisition Price (million yen)

Profits from property-related activities (*2)

2,520
1,600
3,930
7,420
4,620
3,460
2,910
16th Period 17th Period 16th Period 17th Period 16th Period 17th Period 16th Period 17th Period 16th Period 17th Period 16th Period 17th Period 16th Period 17th Period
2,470
2,477
1,548
1,549
3,783
3,776
7,101
7,071
4,509
4,491
3,344
3,330
2,881
2,879
Book Value (million yen)
2,480
2,490
1,740
1,700
3,840
7,130
7,100
4,590
4,500
3,100
3,110
2,640
2,660
Appraisal Value (million yen)
100.0
100.0
100.0
100.0
100.0
97.3
87.3
98.3
99.2
100.0
100.0
100.0
100.0
Occupancy Rate (% )
7.84
7.84
9.57
9.57
9.61
8.49
8.49
10.16
10.16
10.04
10.04
8.62
8.62
PML (% ) (*1)
Best
PropertyBest
PropertyMS
Building
Support
Xymax
Properties
Xymax
Properties
Best
PropertyBest
Property
Property Management Company
183
182
183
182
183
180
183
182
183
182
183
182
183
182
Number of operating days
81,59881,132
55,41449,872
115,203
114,447
189,986
195,041
130,696
120,770
91,35996,25590,67586,851(1) Property-related Revenues
Rent (incl. common service fees)
81,59879,48851,58048,491
115,203
114,447
181,904
191,760
121,299
120,655
91,35996,25590,67586,851
0
1,644
3,833
1,380
0
0
8,082
3,281
9,396
114
0
0
0
0
Other Revenues (*3)
35,072
19,492
17,52013,27834,18538,04941,98037,23826,666
23,84830,422
23,33634,53032,235(2) Property-related Expenses
4,074
4,051
3,790
2,589
4,113
3,989
7,305
5,712
6,446
4,915
4,954
4,930
5,031
5,571
Administrative Expenses
7,224
6,440
4,459
4,040
11,534
10,011
16,657
15,188
8,158
8,364
9,955
9,582
8,809
7,633
Utility Charges
1,261
1,233
1,200
1,200
1,376
2,108
2,855
2,852
1,790
1,877
1,377
1,445
1,364
1,292
Property Management Fees
6,556
6,556
4,812
4,812
9,276
16,835
11,692
11,840
7,784
7,784
6,948
6,964
13,467
13,475
Property-related Taxes
135
129
87
83
140
244
297
290
147
141
140
135
124
132
Non-life Insurance Costs
15,819
1,080
3,170
553
7,465
4,861
3,171
1,353
2,338
691
7,046
278
5,732
4,128
Repair Expenses
0
0
0
0
279
0
0
0
0
74
0
0
0
0
Other Expenses
46,526
61,63937,89436,59381,01776,397148,006
157,803
104,029
96,92260,936
72,91856,14554,615(3) NOI ( ＝(1)-(2)) (*4)
92,798
123,618
75,581
73,388
161,592
170,244295,203
316,473
207,491
194,377
121,540
146,237
111,984
109,531Annualized NOI
3.8%
5.0%
4.9%
4.7%
4.3%
4.5%
4.2%
4.5%
4.6%
4.3%
3.6%
4.4%
3.9%
3.8%
NOI Yield (*5)
Depreciation and Amortization
11,696
11,8297,967
8,109
16,29916,33029,65729,65020,028
20,164
17,821
18,221
10,935
11,239Proceeds for Restoration and(RefereRepair Worknce)

Proceeds from Amortization of

0

0

1,466

0

0

0

2,200

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Leasehold and Security(*1) Sompo Japan Nipponkoa Risk Management Inc. has prepared the PML for the 17th fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2014).
(*2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(*3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*4) (3) NOI in this table is calculated by adjusting the Property-related Taxes for the “NOI (after deduction of gain on sale)”aforementioned in the Appendix “Major Financial Data” so the figures do not match.
This
not value.
material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,(*5) NOI Yield is calculated by dividing annualized NOI in (3) on
thedocumenttable by theisbook
nor atis theit intended
for thesolicitation.
Daiwa
Investment
Corporation advises(*6) Book value for the 17th Fiscal Period indicates the book value
time of sale,andpurposes
annualizedofNOI
is calculated
after Officeadjustingwith the property-related
taxes. reader to make investment decisions at their own judgment.

51

Portfolio Performance Summary (4)(16th-17th Fiscal Period Results by Property)
Property Name

Daiwa Onarimon

Shinjuku Maynds Tower

SHIBUYA EDGE

Daiwa Kodemmacho

Daiwa Jimbocho

Daiwa Nishishimbashi

Daiwa Kudan

Acquisition Price (million yen)

Profits from property-related activities (*2)

13,860133,800
5,900
2,460
4,150
5,000
4,000
16th Period 17th Period 16th Period 17th Period 16th Period 17th Period 16th Period 17th Period 16th Period 17th Period 16th Period 17th Period 16th Period 17th Period
13,571
13,543
130,627
130,441
5,777
5,762
2,425
2,419
4,103
4,085
4,997
4,964
3,913
3,897
Book Value (million yen)
13,60013,000113,000
113,000
4,260
4,300
1,980
1,980
2,860
2,900
4,710
4,800
2,920
2,960
Appraisal Value (million yen)
100.0
100.0
95.7
94.7
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Occupancy Rate (% )
5.45
5.45
6.42
6.42
3.14
3.14
7.71
7.71
5.58
5.58
6.76
6.76
7.96
7.96
PML (% ) (*1)
Mitsui Fudosan Building
Mitsui Fudosan Building
Xymax Properties
Xymax Properties
Xymax Properties
Property Partners
Xymax Properties
Property Management Company
Management
Management
183
182
183
182
183
182
183
182
183
182
183
182
183
182
Number of operating days
355,233
352,856 2,337,670 2,302,813
76,545
103,330
62,41063,10589,83892,921
143,984
158,769
76,00897,802(1) Property-related Revenues
Rent (incl. common service fees)
355,233
352,856 2,337,660 2,297,413
76,295
103,330
62,41063,10589,83892,921
143,984
151,659
76,00892,083
0
0
10
5,400
250
0
0
0
0
0
0
7,109
0
5,719
Other Revenues (*3)
93,93479,933758,277
879,400
26,72020,907
21,86015,74354,331
26,95145,68547,701
23,79824,408(2) Property-related Expenses
12,604
13,434145,300
140,895
9,931
4,170
2,838
4,706
5,488
4,732
13,424
16,227
4,056
5,776
Administrative Expenses
29,892
27,379308,690295,955
7,448
6,904
5,583
5,034
9,979
9,150
13,701
12,331
9,297
7,920
Utility Charges
3,554
3,528
16,356
16,083
1,273
1,622
1,200
1,209
1,200
1,200
1,921
1,953
1,294
1,460
Property Management Fees
33,65933,659247,226
253,292
7,272
7,272
3,595
3,595
10,647
10,60015,65015,6498,464
8,464
Property-related Taxes
433
419
3,947
3,711
110
104
86
83
141
142
255
245
120
120
Non-life Insurance Costs
13,7891,511
29,057
165,822
684
832
7,733
292
26,873
864
730
1,292
565
665
Repair Expenses
0
0
7,700
3,641
0
0
822
822
0
261
3
3
0
0
Other Expenses
261,299
272,922 1,579,392 1,423,412
49,82582,42240,55047,36235,50765,97098,298111,067
52,20973,393(3) NOI ( ＝(1)-(2)) (*4)
521,170
547,345 3,150,154 2,854,646
99,379165,298
80,87994,98470,820132,302
196,060
222,744
104,134
147,191
Annualized NOI
3.8%
4.0%
2.4%
2.2%
1.7%
2.9%
3.3%
3.9%
1.7%
3.2%
3.9%
4.5%
2.7%
3.8%
NOI Yield (*5)
Depreciation and Amortization
29,672
29,772367,976
371,206
16,541
16,5698,465
8,677
24,60421,75640,071
34,93624,32824,199Proceeds for Restoration and(RefereRepair Worknce)

Proceeds from Amortization of
Leasehold and Security

0

0

0

5,400

250

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

(*1) Sompo Japan Nipponkoa Risk Management Inc. has prepared the PML for the 17th fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2014).
(*2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(*3) Other Revenues includes Proceeds for Restoration and Repair
Work or Proceedsfrom Amortizationof Leasehold
and Security
This document
is not material
disclosedin compliancewith theDeposits.
Financial Instruments and Exchange Law or any regulation of similar nature,(*4) (3) NOI in this table is calculated by adjusting the Property-related
Taxes
for
the
“NOI
(afterdeduction
of
gain
on
sale)”aforementioned
in the Appendix“MajorFinancial
Data”tosomake
the figures
do not match.
nor is it intended for the purposes of solicitation. Daiwa Office Investment
Corporation
advisesreaderinvestment
decisions at their own judgment.
(*5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.

52

Portfolio Performance Summary (5)(16th-17th Fiscal Period Results by Property)
Property Name

Daiwa Kayabacho
Building

Daiwa Jinbocho 3-chome

Daiwa Nihonbashi

E SPACE TOWER

Daiwa Shibuya

shinyon curumu

Hongokucho

Akasaka Business Place

Dogenzaka

Acquisition Price (million yen)

Profits from property-related activities (*2)

5,600
3,550
24,000
1,721
9,650
4,500
9,200
16th Period 17th Period 16th Period 17th Period 16th Period 17th Period 16th Period 17th Period 16th Period 17th Period 16th Period 17th Period 16th Period 17th Period
5,507
5,479
3,547
3,528
23,92323,864
1,706
1,693
9,969
9,941
4,539
4,522
9,290
9,280
Book Value (million yen)
6,460
6,610
3,760
3,860
27,10028,1001,850
1,890
10,30010,4004,750
4,750
10,40010,700Appraisal Value (million yen)
100.0
100.0
100.0
88.1
100.0
89.1
100.0
100.0
67.5
96.3
100.0
100.0
95.6
100.0
Occupancy Rate (% )
5.58
5.58
6.13
6.13
5.78
5.78
6.93
6.93
6.50
6.50
5.89
5.89
9.81
9.81
PML (% ) (*1)
Property
Partners
Xymax
PropertiesMS
Building
SupportMS
Building
SupportBest
Property
Xymax
Properties
Mitsui Fudosan Building Management
Property Management Company
183
182
183
182
183
182
183
182
183
182
151
182
114
182
Number of operating days
- (*6)- (*6)
107,665
98,186770,024
683,134
61,352
61,128
149,999
148,764
121,418
145,915
197,006
324,550(1) Property-related Revenues
Rent (incl. common service fees)- (*6)- (*6)
107,665
98,186770,024
683,134
61,352
61,128123,800
148,764
121,418
145,915
196,995
324,550- (*6)- (*6)
00000026,19900
0
110
Other Revenues (*3)
- (*6)- (*6)
26,99027,375
180,072
168,293
12,43012,88972,40973,26022,05527,50848,91177,740(2) Property-related Expenses- (*6)- (*6)
5,754
9,372
40,842
48,531
2,859
3,072
38,30735,426
8,413
10,011
18,85823,663Administrative Expenses- (*6)- (*6)
9,186
7,112
63,92451,351
3,853
3,715
14,67518,026
10,942
13,83925,553
46,373
Utility Charges- (*6)- (*6)
1,614
1,410
7,594
6,869
1,200
1,200
1,200
1,697
1,427
1,749
2,637
3,594
Property Management Fees
- (*6)- (*6)
9,348
9,352
56,47956,4994,433
4,434
17,76517,800822
1357
Property-related Taxes- (*6)- (*6)
133
127
698
671
83
78
349
309
189
214
288
427
Non-life Insurance Costs- (*6)- (*6)
953
0
10,172
3,607
0
389
100
0
1,073
1,671
1,560
3,624
Repair Expenses- (*6)- (*6)
0
0
361
761
0
0
12
0
0
0
0
0
Other Expenses
148,331
148,128
80,67570,811
589,951
514,841
48,921
48,23877,58975,50399,363
118,406
148,095
246,809(3) NOI ( ＝(1)-(2)) (*4)
295,851
297,071
160,910142,011 1,176,679 1,032,512
97,57596,742
154,754
151,422240,183
237,463474,165494,975
Annualized NOI
5.4%
5.4%
4.5%
4.0%
4.9%
4.3%
5.7%
5.7%
1.6%
1.5%
5.3%
5.3%
5.1%
5.3%
NOI Yield (*5)
Depreciation and Amortization- (*6)- (*6)
19,70819,71563,72063,933
13,16013,16035,14935,242
14,857
17,875
14,637
22,235
Proceeds for Restoration and(RefereRepair Worknce)

Proceeds from Amortization of- (*6)- (*6)

0

0

0

0

0

0

0

0

0

0

0

0

- (*6)- (*6)

0

0

0

0

0

0

0

0

0

0

0

0

Leasehold and Security(*1) Sompo Japan Nipponkoa Risk Management Inc. has prepared the PML for the 17th fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2014).
(*2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(*3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*4) (3) NOI in this table is calculated by adjusting the Property-related Taxes for the “NOI (after deduction of gain on sale)”aforementioned in the Appendix “Major Financial Data” so the figures do not match.
document
notvalue.
material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,(*5) NOI Yield is calculated by dividing annualized NOI in (3) onThis
the tableby the isbook
nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.
(*6) Not disclosed due to tenant's request

53

Portfolio Performance Summary (6)(16th-17th Fiscal Period Results by Property)
Property Name

Daiwa Shibuya

Daiwa Kinshicho

Miyamasuzaka

Daiwa Higashi-Ikebukuro

Benex S-3

Daiwa Shinagawa North

Daiwa Osaki 3-chome

Daiwa Kamiooka

Acquisition Price (million yen)

Profits from property-related activities (*2)

7,000
3,653
2,958
4,950
7,710
1,650
2,000
16th Period 17th Period 16th Period 17th Period 16th Period 17th Period 16th Period 17th Period 16th Period 17th Period 16th Period 17th Period 16th Period 17th Period
7,211
7,192
3,396
3,373
2,773
2,786
4,344
4,311
7,389
7,361
1,695
1,685
2,057
2,040
Book Value (million yen)
7,280
7,450
3,340
3,570
3,330
3,240
3,290
3,240
5,890
5,890
1,980
2,030
2,070
2,120
Appraisal Value (million yen)
100.0
100.0
100.0
100.0
100.0
92.2
93.6
98.2
100.0
100.0
100.0
88.4
92.2
85.4
Occupancy Rate (% )
6.60
6.60
7.42
7.42
5.56
5.56
5.66
5.66
5.56
5.56
10.93
10.93
12.30
12.30
PML (% ) (*1)
Best Property
Best Property
Xymax Properties
Best Property
Xymax Properties
Xymax Properties
Property Management Company Japan Property Solution
65
182
183
182
183
182
183
182
183
182
183
182
183
182
Number of operating days
- (*6)
216,489
134,187
135,365
137,934
83,822
149,189
159,547
191,275
191,800
58,81464,35780,65189,728(1) Property-related Revenues
Rent (incl. common service fees)- (*6)
216,489
134,187
132,365
137,934
78,712
149,189
159,547
191,275
188,433
58,81464,35780,56676,015- (*6)
0
0
3,000
0
5,110
0
0
0
3,366
0
0
85
13,712Other Revenues (*3)
- (*6)
45,21757,711
41,91244,09947,12058,50756,90489,26355,01914,582
12,305
11,84521,718(2) Property-related Expenses- (*6)
18,534
11,607
13,46012,674
14,26916,62815,376
12,21013,140
2,497
2,592
4,562
5,271
Administrative Expenses- (*6)
19,03915,936
13,02019,891
11,276
21,504
21,22819,172
17,190
4,530
4,010
5,603
5,886
Utility Charges- (*6)
5,442
1,953
1,968
2,094
1,203
2,247
2,415
2,865
2,838
1,200
1,200
1,200
1,221
Property Management Fees
- (*6)
20
11,97011,9708,773
8,770
15,242
15,242
18,62818,626
3,949
3,945
4
0
Property-related Taxes- (*6)
300
265
251
253
242
394
375
376
360
74
70
139
121
Non-life Insurance Costs- (*6)
1,843
15,977
1,239
412
11,3572,489
2,266
36,000
2,865
2,331
486
336
9,217
Repair Expenses- (*6)
36
0
0
0
0
0
0
9
0
0
0
0
0
Other Expenses
59,141
171,272
76,47693,452
93,83436,702
90,682
102,642102,012
136,780
44,232
52,05168,80568,009(3) NOI ( ＝(1)-(2)) (*4)
332,103
343,486
152,535
187,418
187,156
73,607
180,868
205,849
203,467
274,311
88,222
104,389
137,235
136,392
Annualized NOI
4.6%
4.8%
4.5%
5.6%
6.7%
2.6%
4.2%
4.8%
2.8%
3.7%
5.2%
6.2%
6.7%
6.7%
NOI Yield (*5)
Depreciation and Amortization- (*6)
19,94329,031
29,622
22,13822,61539,54438,91532,78932,685
10,957
11,00917,70517,709Proceeds for Restoration and(RefereRepair Worknce)

Proceeds from Amortization of- (*6)

0

0

3,000

0

4,300

0

0

0

3,366

0

0

85

9,240

- (*6)

0

0

0

0

0

0

0

0

0

0

0

0

0

Leasehold and Security(*1) Sompo Japan Nipponkoa Risk Management Inc. has prepared the PML for the 17th fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2014).
(*2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(*3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*4) (3) NOI in this table is calculated by adjusting the Property-related Taxes for the “NOI (after deduction of gain on sale)”aforementioned in the Appendix “Major Financial Data” so the figures do not match.
document
notvalue.
material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,(*5) NOI Yield is calculated by dividing annualized NOI in (3) onThis
the tableby the isbook
nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.
(*6) Not disclosed due to tenant's request

54

Portfolio Performance Summary (7)(16th-17th Fiscal Period Results by Property)
Property Name

Daiwa Minami-Senba

Integral Tower

Daiwa Meieki

Total（※6）

Acquisition Price (million yen)

Profits from property-related activities (*2)

15,2204,810
5,300
352,786
368,006
16th Period 17th Period 16th Period 17th Period 16th Period 17th Period 16th Period 17th Period
15,380
4,777
4,748
5,484
5,453
345,046
359,560
Book Value (million yen)
15,700
2,780
2,770
6,370
6,410
328,290342,230
Appraisal Value (million yen)
96.7
100.0
75.7
81.3
98.4
96.3
96.4
Occupancy Rate (% )
3.56
11.56
11.56
12.11
12.11
5.62
5.45
PML (% ) (*1)
Mitsui Fudosan Building
Xymax Properties
Xymax Properties
Property Management Company●
Management
3
183
182
183
182
183
182
Number of operating days
7,110
120,915
142,378
206,991
207,202 8,432,069 8,583,887(1) Property-related Revenues
7,061
120,915
111,035
206,991
207,202 8,367,068 8,491,129
Rent (incl. common service fees)
48
031,3420065,001
92,758Other Revenues (*3)
821
38,45158,35242,50147,934 2,539,091 2,572,904(2) Property-related Expenses
665
11,69814,90023,83625,058552,650
586,841
Administrative Expenses
0
13,557
9,891
15,42814,471
877,331842,933
Utility Charges
102
1,643
1,780
2,474
2,497
102,181
105,291
Property Management Fees
8
10,603
10,6030
4
692,430
705,980
Property-related Taxes
14
252
242
440
388
12,927
12,785
Non-life Insurance Costs
0696
20,934320
5,513
251,073
272,158
Repair Expenses
30
0
0
0
0
50,496
46,913
Other Expenses
6,288
82,46484,025
164,490
159,267
5,892,977
6,010,983(3) NOI ( ＝(1)-(2)) (*4)
765,141
164,477
168,512
328,081319,410 12,188,679 12,824,553
Annualized NOI
5.0%
3.4%
0
6.0%
5.9%
3.5%
3.6%
NOI Yield (*5)
Depreciation and Amortization
15,15531,541
31,76934,721
34,892 1,328,912 1,355,744
Proceeds for Restoration and(RefereRepair Worknce)

Proceeds from Amortization of0026,700

0

0

7,356

54,244

0

0

0

0

0

1,800

0

Leasehold and Security(*1) Sompo Japan Nipponkoa Risk Management Inc. has prepared the PML for the 17th fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2014).
(*2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(*3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*4) (3) NOI in this table is calculated by adjusting the Property-related Taxes for the “NOI (after deduction of gain on sale)”aforementioned in the Appendix “Major Financial Data” so the figures do not match.
document
notvalue.
material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,(*5) NOI Yield is calculated by dividing annualized NOI in (3) onThis
the tableby the isbook
is it costs
intended
fortothesolicitation. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment.
(*6) The portfolio total in (2) property-related expenses does notnor
includerelatedthepurposes
InvestmentofCorporation.

55

Organization of the Asset Management Company█ Organization Chart█ Company Overview
Directors and Auditors
President andRepresentative
Director
Vice President andRepresentative
Director
Vice President andRepresentative
Director

Shareholders’ Meeting
Auditors
Board of Directors
Compliance Committee

Compliance Officer
Representative Director
Internal Control Office

Investment Planning Department

Asset Management Department

Office Investment Team

Office Management Team Planning and formulation ofpolicies concerning DOI’s (*)
investment
 Asset acquisition and disposal for
DOI’s investment managementbusiness
Residential Investment Team Planning and formulation ofpolicies concerning DRP’s(**)
investment
 Asset acquisition and disposal for
DRP’s investment managementbusiness
Healthcare Investment Team Planning and formulation ofpolicies concerning NHI’s (***)
investments
 Asset acquisition and disposal for
assets NHI’s investment
management business Planning and formulation ofpolicies concerning the leasing,management and disposal of
DOI’s assets
Residential Management Team Planning and formulation ofpolicies concerning the leasing,management and disposal of
DRP’s assets
Healthcare Investment Team Planning and formulation ofpolicies concerning the leasing,management and disposal of
NHI’s assets, etc.
Management Planning Team Budget and performance

Director(non-executive)
Director(non-executive)
Auditor(non-executive)
Auditor(non-executive)

Marketing Department
 Marketing activities for the AssetManagement Company’s
entrustment business Investor marketing for private
placement products
 Disclosure, IR and public relations
for the investment corporations
 Operation of the investment
corporations’ general meeting ofunitholders
 Fund procurement (investment
units) for the investment
corporations

Akira Yamanouchi
Yuji Shinotsuka(Head of Business Planning)
Yoshiki Nishigaki(Head of Private Fund Management)
Naoyuki Owa(Head of Administration)

Director

Investment Committee(As of July 14, 2014)

Toshihiro Matsui

Company Name
Address
Established
Capitalization
Representative Director
Directors
Employees
Registered Financial
Instruments Firm

Daiwa Real Estate Asset Management Co. Ltd.
6-2-1 Ginza, Chuo-ku, Tokyo
October 21, 2004
200 million yen
Akira Yamanouchi
8 (4 executives, 2 non-executives, 2 auditors)
57
No. 355 (Financial Instruments), Director, Kanto
Local Finance Bureau

Building Lots and Buildings
Transaction Business
LicenseNo. (2)-83920, Governor of Tokyo

Discretionary Agent for Real No. 34, Minister of Land, Infrastructure, Transport
Estate Transaction Approval and Tourism

Mikita Komatsu
Masaru Shirataki

Association Membership
Shinji Kiso

Finance Department
Finance Team Fund procurement (investment

corporation bonds), ALM, surplus
management and fundmanagement for the Investment
Corporation
Accounting Team Financial results and accounting,cash allotment, accounting audit,
budget Accounting and finance of theAsset Manager
Management Team Management for the customers of

the “Private Fund Management
Dept.”

 Issuance and underwriting ofGeneral Administrative
Department
 Management of executive
officers’ meeting for theInvestment Corporation
 Operation of the general meetingof shareholders, the board of
directors and committees of theAsset Manager
 Revision/elimination ofregulations, management of
documents, information
management and systems
management
 Licensing, approval, registration
and reporting stipulated by laws
and regulations
 Litigation and handling ofcomplaints
 Human resources and labor
service

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

Business Planning
Department
 Analysis of real estate market,
retail industry trends and the realestate investment trust market
 Analysis and management of theinvestment corporations’managerial issues
 Development and revision of theinvestment corporations’ annual
asset management plans andmedium-term asset managementplans Development and revision of theinvestment corporations’
Investment Guidelines
 Provision of new businesses General risk management of theInvestment Corporation

Private Fund Management
Department
Advisory Team Advisory concerning management

for customers’ assets

Operational Team Formulation of investment policies

for discretionary funds

 Acquisition, disposal, leasing andmanagement of assets of
discretionary funds

DRP’s investment securities

management for the investment
corporations’ portfolios

Construction Management Team(*)

DOI stands for Daiwa Office Investment Corporation.

(**) DRP
for Daiwa
PrivateInvestment
This document is not material disclosed in compliance with the Financial Instruments
andstands
Exchange
Law orResidential
any regulationof similar
nature, Corporation.
of construction planning of(***) NHI advises
stands for
NipponHealthcare
Investment
northeis it intended for the purposes of solicitation. Daiwa Office Investment Corporation
readerto makeinvestment
decisions Corporation.
at their own judgment.

 Formulation and implementation

investment corporations’ assets

56

Support System Backed by Daiwa Securities GroupManagement platform based on the Daiwa Securities Group

Daiwa Real Estate Asset Management Co. Ltd.
Management by experienced professionals
Disciplined management process
Strict internal control/compliance system

 We receive full-support

from the Daiwa Securities
Group to realize stablelong-term management.
 Overview of the Daiwa Securities Group
Company Name
Established
Representative Director

Provision of information and management know-how

Fund procurement suchas equity/debt financing

Capturing the Daiwa
Securities Group’s clients’needs of property sales,
office relocations, etc. andcollaborating with theAsset Management
Company

Fund procurement

Property sourcing

Provision of human resources

Recruitment andplacement of humanresources with expertise
who can contribute toimprovements ininvestment management
and control capability

Tenant Leasing

Full-scale support

Daiwa Securities Group

Daiwa Securities Group, Inc.
(Security code: 8601)
May 1, 1902 (Note 1)
Takashi Hibino, President and CEO (Note 1)

Address

GranTokyo North Tower
9-1, Marunouchi 1-chome, Chiyoda-ku,
Tokyo (Note 1)

Market Capitalization

1,570.9 billion yen(as of the end of March 2014) (Note 1)

No. of Employees

13,317(as of the end of March 2014, No. of
employees at the Group companies)

Assets under Custody

48.4 trillion yen(as of the end of March 2014) (Note 2)

No. of Shops132(as of the end of March 2014) (Note 2)

No. of Cash Management
Service Accounts

3,603,000 accounts(as of the end of March 2014) (Note 2)(Note 1) Daiwa Securities Group, Inc.
(Note 2) Daiwa Securities Co., Ltd.

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.

57

Competitive Edge
█ Establish highly-transparent business structure Strictly control conflicts of interest with sponsor
 Introduce financial institutions’ rigorous compliance framework
 Ensure high transparency and establish disciplined investment process█ Expand network of collaboration with the Daiwa Securities Group Remarkably expand financing capacity by capitalizing on the credit capability of the Daiwa Securities Group Reinforce leasing activities by capitalizing on the network of the Daiwa Securities Group Reinforce sourcing activities by capitalizing on the network of the Daiwa Securities Group█ Secure well-experienced, highly-professional human resources Develop team of outstanding professional staff by capitalizing on the human resources of the Daiwa Securities Group Employ excellent human resources from outside by drawing on the Daiwa Securities Group’s brand power Increase number of employees with a high level of motivation to challenge 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.

58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.

59