As of July 19, 2019

Daiwa Office Investment Corporation
Earnings Announcement for the 27th Fiscal Period(Fiscal Period ended May 2019)

Securities Code: 8976

Contents

Section 3External Growth
Topics of the Fiscal Period ended May 2019 (27th FP)
Change in Major Indices after Portfolio Replacement

3
4

Section 1
Fiscal Period ended May 2019 (27th Fiscal Period)
Performance Highlights and Forecasts
Highlights of the Fiscal Period ended May 2019 (27th FP)
Highlights of Forecasts for the Fiscal Periods ending November
2019 and May 2020 (28th and 29th FP)
Changes in Dividends

Acquisition/Sale Policy and Status of Deliberation for
Property Acquisitions
Acquisition and Sale Scheme through the Exchange inthe Fiscal Period ending November 2019
Newly Acquired Properties in the Fiscal Period
ended May 2019
Changes in Asset Size and Trading Performance

24
25
27
29

7
8
9

Section 4
Financial Strategy
Status of Interest-bearing Liabilities
Unitholders as of the End of the May 2019 (27th) Fiscal Period

Section 2

31
34

Internal Growth
Leasing Market of Tokyo Office Buildings
11
Analyses of Leasing Income
12
Portfolio Map: Increase and Decrease in Unit Contract Rent
Compared with Previous Fiscal Period
16Internal Growth Strategies
17
Occupancy Status of Properties Subject to Leasing Improvementin the Fiscal Period ended May 2019 (27th FP)
18
Highlights of Leasing for the Fiscal Period
ended May 2019 (27th FP)

20

Cases of Value Enhancement Work in the Fiscal Period
ended May 201921

Section 5
Efforts on ESG
Efforts on ESG | Sustainable Development Goals (SDGs)
Efforts on ESG | Environment
Efforts on ESG | Social / Governance

36
37
38

Appendix

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

1Disclaimer

This material is solely for the purpose of providing information and is not intended for the purpose of offering or
soliciting investment, or as a recommendation to purchase or sell any specific product. Please refer any inquiries
on potential purchases of the investment units of Daiwa Office Investment Corporation to a securities dealer.
This document is not intended to provide information to meet the requirements of Japan’s Financial Instruments
and Exchange Act or Act on Investment Trusts and Investment Corporations, or any associated cabinet orders,cabinet office ordinances, rules, or any rules governing companies listed on the Tokyo Stock Exchange, or any
other applicable rules, nor is it a disclosure document or statement of financial performance prepared inaccordance with the provisions 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
unknown risks and uncertainties. These forward-looking statements are not a guarantee of future performance ormanagement results of Daiwa Office Investment Corporation, and actual results may materially differ from any
explicit or implicit forecasts contained herein.
Although the information contained in this document is the best available at the time of publication, no assurances
can be given regarding the accuracy and certainty of this information. The content of this document may be
modified or withdrawn without prior notice.
Reproduction or use of the contents included in this document without
prior approval is prohibited.

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

2

Topics of the Fiscal Period ended May 2019 (27th FP)• Occupancy rate as of the end of the fiscal period ended May 2019 was 97.1%. Occupancy rate excluding GlassCity Harumi, which was acquired in February 2019, was 98.7%.
(forecasted occupancy rate as of January 2019: 97.6%)• Amount of monthly rent increase was at the highest level ever with the renewal of contracts and occupancy by
new tenants.

Continuously strong
internal growth• Growth at an annual rate of 5% or more from 12,559 yen of actual dividends for the 27th FP to 13,200 yen
of forecasted dividends for the 29th FP is forecasted.
Percentage of rent increase
upon contract renewal

Rent increase/decrease rate
upon contract renewal

Rent increase/decrease rate
upon tenant replacement

Growth rate of dividend
resource (annualized)

57.4%

+7.0%

+23.1%

7.6%

For details,
please refer to page 14

For details,
please refer to page 15

For details,
please refer to page 13• Acquired Sasazuka South Building and Glass City Harumi in the 27th FP and Sumitomo Fudosan Mita 2-chome
Building in the 28th FP for a total of 16.8 billion yen while selling Daiwa Onarimon Building in the 27th FP and
Daiwa Osaki 3-chome Building in the 28th FP for a total of 16.3 billion yen.

Property replacementwith an aim to improve
profitability

Value enhancement
through large-scale
repair work

• Compression of book value utilizing the exchange scheme: Allotted part of gain on sale to the reduction of bookvalue of newly acquired properties and contributed to the increase in unrealized gain.
Acquisition of new properties

Property sale

16.8 billion yen

16.3 billion yen

Increase inunrealized gain through exchange

0.7 billion yen → 1.6 billion yen• Conducted large-scale renovation work of exterior walls at Daiwa Shibuya Miyamasuzaka.
Achieved internal growth largely exceeding the increase rate of market rent.
Increase rate of unit rent
after value enhancement

Amount of increase in appraisal value
after value enhancement

Increase in other revenues due tothe installation of signboard

+20%

+31%

+19 million yen

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

3

Change in Major Indices after Portfolio Replacementn

It is forecasted that NOI yield will improve and dividend will make 5% annual increase or more from the 27th FP in the portfolio fromthe fiscal period ended November 2018 (26th FP) to the fiscal period ending May 2020 (29th FP) due to asset replacement andinternal growth

5.1% increase in annual rate

(Note 1) NOI Yield (annualized) for the 26th FP and 27th FP are calculated based on book value. NOI annualizes properties owned at the end of the period. Expected NOI Yield (annualized) for the 28th FP and 29th FP are calculated by taking into accountthe properties acquired and sold during the 28th FP based on the book value for the 27th FP.
(Note 2) NAV per unit = (Unitholders’ capital +Total appraisal value at the end of fiscal period − Total property book value at the end of fiscal period) / Number of investment units issued and outstanding.

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

4

MEMO

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

5Section 1
Fiscal Period ended May 2019 (27th Fiscal Period)
Performance Highlights and Forecasts

Highlights of the Fiscal Period ended May 2019 (27th FP)
Results of the 27th Fiscal Period

Factor

26th Fiscal Period(ended Nov. 2018)

27th Fiscal Period(ended May 2019)

Difference

13,193

13,833+639

million yen

million yen

million yen

Operating Expenses

6,658

million yen

6,853

million yen+195

million yen

Operation Income

6,535

million yen

6,979

million yen+443

million yen

636

million yen

662

million yen+26

million yen

5,901

million yen

6,320

million yen+418

million yen

Non-Operating Expense
Net Income
Dividend per Unit

11,997 yen

12,559 yen+562 yen(Note 1)

673,841 yen

697,220 yen+23,379 yen

Period End Occupancy Rate

98.9%

97.1%

-1.8%

Period Average Occupancy Rate

99.1%

98.0%

-1.1%

4.4%

4.4%

+0.0%

NAV per Unit

(Note 2)NOI Yield (annualized)(Note 3)n Full contribution of revenue (rents and common area fees) from 3 properties+369 million yen

n Revenue (rents and common area fees) from 54 existing properties (Note 4)+237 million yen

acquired in the previous period

Increase
Operating Revenue

Item(Note 1) NAV per unit = (Unitholders’ capital +Total appraisal value at the end of fiscal period − Total property book value at theend of fiscal period) / Number of investment units issued and outstanding.*

n Gain on sale of real estaten Revenue (rents and common area fees) from properties acquired during period(2 properties)

Decrease

Increase
Decrease+142 million yen+133 million yen

n Revenue (rents and common area fees) from property sold during period-184 million yen

n Outsourcing expenses+134 million yen(1 property)n Depreciation+78 million yen

n Asset management fee+48 million yen

n Repair cost

-77 million yen

Dividends per unit for the 27th FP is calculated by dividing the amount obtained by subtracting provision
for reserve for reduction entry (142 million yen) from unappropriated retained earnings by the total
number of investment units issued and outstanding.

(Note 2) Period average occupancy rate is calculated based on occupancies at the end of months during each fiscal period.
(Note 3) NOI Yield (annualized) is calculated based on book value. NOI annualizes properties owned at the end of the period.
(Note 4) Existing properties (54 properties) are the 59 properties as of the end of the 27th FP less 3 properties acquired during
the 26th FP and 2 properties acquired during the 27th FP.

(Reference) Comparison of Forecasts with Results of 27th Fiscal Periodn Revenue (rents and common area fees) from properties acquired during period

Increase(1 property)n Revenue (rents and common area fees) from 58 existing properties (Note 5)+64 million yen+97 million yen

The actual occupancy rate for the 27th FP excluding “Glass City Harumi” (occupancy rate at the time ofacquisition: 47.3%) acquired during the 27th FP is 98.7%.

(Note 5) 58 existing properties are the 59 properties as of the end of the 27th FP less 1 property (Glass City Harumi) acquired in
the 27th FP.

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

7

Highlights of Forecasts for the Fiscal Periods ending November 2019 and
May 2020 (28th and 29th FP)
The 28th Fiscal Period (Forecast)
28th FP Forecast
Ending November 2019

Factorn Utilities revenue

Difference from27th FPn Revenue (rents and common area fees) from 56 existing properties (Note 3)

Increase
Operating Revenue

14,024

million yen+191

million yen

Operating Expense

6,966

million yen+112

million yen

Operation Income
Non-Operating Expense

7,058

million yen+79

million yen

661

million yen-1million yen

Itemn Full contribution of revenue (rents and common area fees) from 2 properties

acquired in the previous periodn Revenue (rents and common area fees) from property acquired during period(1 property)
n Gain on sale of property sold during period (1 property)
n Gain on sale of property sold in the previous period (1 property)

Decrease

6,394

million yen+74+441 yen

Period End Occupancy Rate

99.0%

+1.9%

Period Average Occupancy Rate (Note 1)

98.2%

+0.2%

NOI Yield (annualized) (Note 2)

4.5%

+0.1%

Difference from28th FP-134 million yen-49 million yen(1 property)n Tax and public due (rent-business related expenses)
n Repair costn Asset management fee+81 million yen+68 million yen+20 million yen

Decreasen Outsourcing expense-82 million yen

n Revenue (rents and common area fees) from 58 existing properties (Note 4)

n Full contribution of revenue (rents and common area fees) from 1 property acquiredn Other operating revenue
n Utilities revenue

Decreasen Gain on sale of property sold in the previous period (1 property)n Revenue (rents and common area fees) from property sold in the previous period

13,979million yen-45

million yen

Operating Expense

6,840

million yen-125million yen

Operation Incom e7,138

million yen+80

million yen

643

million yen-18

million yen

6,493

million yen+98

million yen

Net Incom e
Dividend per Unit
Period End Occupancy Rate
Period Average Occupancy Rate
(Note 1)NOI Yield (annualized) (Note 2)+20 million yen-142 million yen

n Revenue (rents and common area fees) from property sold during period

in the previous period

Operating Revenue

Non-Operating Expense+63 million yen

Increase

Increase

The 29th Fiscal Period (Forecast)
29th FP Forecast
Ending May 2020

+61 million yen

million yen

13,000 yen

Dividend per Unit

+118 million yen

n Revenue (rents and common area fees) from property sold in the previous period(1 property)

Net Income+168 million yen(1 property)

Increase
Decreasen Depreciationn Utilities chargesn Outsourcing expense+225 million yen+12 million yen-139 million yen-121 million yen-20 million yen-9 million yen+25 million yen-87 million yen-69 million yen

13,200 yen+200 yen

98.4%

-0.6%

(Note 1) Expected period average occupancy rate is calculated based on occupancies at the end of months during each fiscal
period.

98.2%

+0.0%

(Note 2) Expected NOI Yield (annualized) is calculated by taking into account the properties assumed to be acquired and soldduring the 28th FP based on the book value for the 27th FP.

4.5%

+0.0%

(Note 3) 56 existing properties are the 59 properties as of the end of the 27th FP less 2 properties acquired in the 27th FP and 1
property sold in the 28th FP.
(Note 4) 58 existing properties are the 59 properties as of the end of the 28th FP less 1 property acquired in the 28th FP.

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

8

Changes in Dividends
Changes in Dividends per Unit (forecast/actual)
(yen)

(yen)

6,009

3,903

3,176

3,280

4,100

4,850

5,500

6,250

7,200

7,540

7,820

8,700

9,350

9,850

10,55010,700 10,770

11,000 11,850 12,300 13,000

7,400

4,154

2,843

3,180

3,600

4,850

5,350

5,500

6,550

7,300

7,570

8,328

9,000

9,750

9,900

10,560 10,710

10,800 11,400 12,000 12,400 13,200

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

9Section 2
Internal Growth

Leasing Market of Tokyo Office Buildings
Trend of Office Rent and Vacancy Rate of
5 Central Wards of Tokyo

Leasing Market of Tokyo Office Buildings(Yen/Tsubo)

24,00010.0%

22,000

8.0%

Rent and vacancy rate of large-scale office buildings (Note 1)of 5 Central Wards of Tokyo

Rent(Yen/Tsubo)

Feb. 2008

35,000(Rent)

21,287 yen

20,000

6.0%

33,00018,0004.0%

31,00016,000

2.0%

Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan.
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

(Vacancy rate)

Rental Market Clock(conceptual chart)

29,0001.69%

14,000Jun. 2019

Jun. 2018

0.0%

Dec. 2017
Jun. 2017

27,000Jun. 2010
Jan. 2004

Data: Miki Shoji

25,000

Office Building Market Medium-term Forecast(Tsubo)Predicted figures(Note)

500,000

0%

10.0%
8.0%

400,000

6.0%

300,000

Rent(Yen/Tsubo)

200,000-100,000

2000

New supply (Grade A, etc.)

New supply (Other)

Floor area of new demands

Vacancy rate

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2017

2018

2019

2020

2021

2022

4%

5%

6%

7%

8% Vacancy rate

Sep. 2008

Dec. 2017

Jan. 2004

16,000Jun. 2016

15,000New supply (Entire properties)

2016

3%

Average rent and vacancy rate of entire office buildings (Note 2)of 5 Central Wards of Tokyo

Jun. 2018

17,000

0.0%

000

2%

Sep. 2007

18,0002.0%

100,000

1%

20,000 Jun. 2019
19,000

4.0%

Jul. 2012

Dec. 2011

23,000Jul. 2012

14,000

-2.0%

0%

2023

1%

2%

3%

4%

5%

Data: CBRE “Office market medium term forecast 2019-2023

Data:(Note) Predicted figures as of June 2019

(Note 1) Large-scale office buildings: A floor area of 200 tsubos or more.

6%

7%

8%

9% Vacancy rate

Sanko Estate, compiled by Daiwa Real Estate Asset Management(Note 2) Entire office buildings: Ranging from large-scale buildings to small-scale buildings (less than 20 tsubos).

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

11Analyses of Leasing Income (1)― Transition of Occupancy and New Leases / Cancellations Rates ―Transition of New Leases and Cancellations and
Its Reasons (Note)

Period-end Occupancy Rate(%)

(Cases)
50

100.0

40
95.0

(Note)

30
98.7%（Except GC Harumi）

90.0

20
10

85.0

10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th
FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP(Note) The occupancy rate excluding “Glass City Harumi” (occupancy rate at the time of acquisition: 47.3%) acquired during
the 27th FP is 98.7%.

Rate of New Leases and Cancellations (Note)
(%)

0
-10
-20
-30

20.0
-40
10.0

10th
FP

11th
FP

0.0
27th Period

-10.0

-20.0

10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th
FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP(Note) Transition of rate of new leases and cancellations areas to the total leasable area.

12th
FP

13th
FP

14th
FP

15th
FP

16th
FP

17th
FP

18th
FP

Consolidation
Cost
Space
Reduction Expansion
Space

19th
FP

20th
FP

Space
Reduction

21st
FP

22nd
FP

23rd
FP

BetterLocation

24th
FP

25th
FP

Other

26th
FP

27th
FP

Total

New Leases

0

16

0

0

2

5

23

Cancellations

3

3

4

5

1

1

17

Previous number of leases

19(Note) Excluding new leases and cancellations by residence and warehouse tenants.

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

12Analyses of Leasing Income (2)― Improvement in Basic Strength ―n The amount of monthly rent increase due to contract renewal and occupancy of new tenants is at the highest

level evern Increase in rent revenue due to improved basic strength leads almost directly to an increase in dividend resource
Monthly Rent Increase due to Contract Renewal/Occupancy of New Tenants(Thousand Yen/Month)

37,56540,00035,000Contract Renewal

Occupancy of new tenants

30,00021,80420,00015,00010,0005,000
028,22525,52825,00014,376
9,020

6,438

3,157
5,862

7,938

19th FP

20th FP

14,246766
13,47921st FP

6,680
7,432

12,747
3,988

18,8478,759
22nd FP

23rd FP

14,371

21,30918,441

20,536

9,137

7,618

12,521
19,087

19,123

8,787

24th FP

25th FP

26th FP

27th FP

12,917
Simple average
from 19th FP
onwardIncrease Rate of Dividend Resource due to Improved Basic Strength
Simple average

19th FP

20th FP

21st FP

22nd FP

23rd FP

24th FP

25th FP

26th FP

27th FPfor the 19th FP

6 months

0.7%

1.0%

0.8%

0.7%

1.4%

1.2%

1.2%

1.5%

1.9%

1.0%

(Note 1)

Annualized

1.3%

2.0%

1.7%

1.5%

2.8%

2.4%

2.3%

3.0%

3.9%

2.1%

Growth rate ofdividend resource

6 months

1.5%

2.1%

1.8%

1.5%

2.9%

2.4%

2.3%

2.9%

3.8%

2.4%

(Note 2)

Annualized

3.0%

4.3%

3.6%

2.9%

5.8%

4.9%

4.7%

5.8%

7.6%

4.7%

Growth rate ofrevenueonward(rents and common area fees)(Note 1) Obtained by dividing the amount of rent increase (increased amount of monthly rent x 6 months) due to the improved basic strength in each fiscal period by rent revenue (rents and common area fees) in the previous fiscal period to the respective fiscal period.
(Note 2) Obtained by dividing the amount of rent increase (increased amount of monthly rent x 6 months) due to the improved basic strength in each fiscal period by net income in the previous fiscal period to the respective fiscal period.

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

13

Analyses of Leasing Income (3)― Changes in Rent Increase/Decrease Rate of Contract Renewal Tenants ―The 27th Fiscal Period Contract Renewal Tenants*The ratio of areas for which contract was renewed in the 27th FP (through May 2019) to the total leasablearea (357,153.44 m²) as of end of November 2018.

Changes in Rent Increase/Decrease Rate of Contract Renewal Tenants(sections)
Realized upward rent revisions for
11 consecutive periods

(%)

*3

*2

(Note) The above indicates rent increase/decrease rate to pre-renewal rents for lease contracts which reached renewed
agreements during each FP.
Rent increase/decrease rate is calculated based on net amount for increased/decreased rents.

*1

Rent Increase Rate Upon Contract Renewal*1 Of the increase in the 17th FP, 14.1% was due to some tenants’ switching from sublease to master lease agreements
and 7.9% was thanks to negotiations with tenants.
*2 The decrease in the 25th FP was due to some tenants’ switching from sublease to master lease agreements.

(Breakdown of upward revision magnitude for monthly rents in the 27th FP)*3 The decrease in the 27th FP was due to an agreement on decrease reached by the previous owner.

2% or less
5%

15% or more
7%

Properties with rent increase

Contract Renewal Periods (based on leased area)(%)

Forecastsl Daiwa Ginza

2% or more but
less than 5%
22%

10% or more but
less than 15%12%(Note) The ratio of areas scheduled for contract renewal in each period to the total leased area (354,005.35 m 2)
as of May 31, 2019.

l Daiwa Nishishimbashil E SPACE TOWER
l shinyon curumu

Increase rateof monthly rent
7.2 %(Previous FP: 9.9%)

5% or more but less than 10%
55%

l Shinjuku Maynds Towerl Daiwa Shibuya Miyamasuzakal Glass City Shibuya
l CONCURRED Yokohamaetc.

Increased amount of monthly rent
19,421 thousand yen/month(Note) Percentage figures are based on total monthly rent.

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

14Analyses of Leasing Income (4)― Increase/Decrease in Rent Due to New Leases and Cancellations ―Monthly Rent Increase/Decrease and Increase/Decrease
Rate due to Occupancy by New Tenants

Average Contract Rent and Market Rent
(Yen/Tsubo)

110

30,00086.67

27,00084.79

24,00083.52

100(Total Monthly Rent, Thousand Yen)

23.1%

91,394
83,962

96,294
83,772

98,24679,80416.0%

75,943
69,262

66,10456,96759,04255,054

19,23721,00080
70

18,00060

19,295
19,571

15,00012,000

14.9%

9.6%

90

7.2%

6th 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th
FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP
End
End

50
40

(Note 1) Average contract rent is the average of monthly contract rent from tenants at the end of each fiscal period.
(Note 2) Unit rent index is the earning rates of unit rent of individual properties indexed with the figure at the end of the 7th FP as 100.

8.9%

Increase/Decrease in Monthly Contract Rent (Note)
Compared with the End of the Previous Fiscal Period(Million Yen)
(Note) Comparison of monthly rent due to tenant replacement for the same leasing area.
Ratio is based on total monthly rent.

Increase by
New Leases

Properties with Rent Increase due to Occupancy by
New Tenants during 27th fiscal periodl Daiwa Jingumae

l shinyon curumu

l Daiwa Higashi-Ikebukurol Daiwa Shibuya Miyamasuzakal Daiwa Jimbochol Glass City Shibuya

l Daiwa Nishishimbashil Daiwa Daikanyama (Note), etc.

Increased amount of monthly rent
18,441 thousand yen/month(Note) Square Daikanyama Building was renamed Daiwa Daikanyama as of May 1, 2019. The same hereinafter.

Increase byRent Revisions

Decrease by
Tenants’ Cancellations

End of 26th FP
Monthly Contract Rent

Increase by
New Acquisition

Decrease byRent Revisions

Decrease by
Property Sale

End of 27th FP
Monthly Contract Rent

(Note) Monthly Contact Rent is a total of final rent from contracting tenants at the end of the fiscal period.
Monthly contract rent for Shinjuku Maynds Tower was adjusted to 3/7 and monthly contract rent for CONCURRED
Yokohama was adjusted to 75/100.

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

15

Portfolio Map: Increase and Decrease in Unit Contract Rent Compared with
Previous Fiscal Period
Five Central Wards of Tokyo
Comparison with Previous Fiscal Period
Increase and Decrease of Unit Contract Rent

Greater Tokyo

Unit rent increase: 36
The number in ● indicates increase for the consecutive period
2 indicates increase for the second consecutive period)(Ex: ●

Toshima
Ward

Unit rent maintained: 21

Daiwa Higashi-Ikebukuro

Daiwa Meguro Square 5
Daiwa Osaki 3-chome

Unit rent decrease: 0
LAQUAS
Higashi Shinjuku

Shinjuku Ward

Shinjuku West Building 2
Daiwa Nishi-Shinjuku 2
Shinjuku Maynds Tower 7

Daiwa Misakicho
Daiwa Sarugakucho
Daiwa Jimbocho
Daiwa Jinbocho 3-chome 2
Daiwa
Kanda
Mikuracho
2 shinyon curumu
ChiyodaWard
Daiwa Nihonbashi
Hongokucho

Daiwa Kojimachi
4-chome

Shibuya Ward

Daiwa SHIBUYA EDGE8E SPACE TOWER
Shinsen Place
Glass City Shibuya 4
Daiwa Daikanyama

2

Prime Kanda Building
Daiwa Kanda East
Daiwa Higashi-Nihonbashi
Daiwa Kodenmacho

Kita-Shinagawa
Gotenyama Building
4

Daiwa
Shinagawa North

CONCURRED Yokohama 2

Daiwa Kamiooka

Daiwa Nihonbashi Horidomecho

Kirin Nihonbashi Building
Daiwa Kayabacho Build.
Chuo Ward
Koto Ward
Daiwa Kyobashi
Daiwa River Gate
6 Daiwa Hatchobori ekimae
32
Daiwa Hatchobori ekimae West
Daiwa Ginza Annex 2
Daiwa Tsukijiekimae
Daiwa Aoyama
Daiwa Ginza 12
Daiwa Minami Aoyama
Daiwa Tsukiji

Daiwa Jingumae

Sasazuka NA Building
Sasazuka South Building

2

Integral Tower
Daiwa Ogikubo 3

Daiwa Akasaka

Daiwa
Shibuya Miyamasuzaka
8
Daiwa Nishi-Shimbashi 5

Daiwa
Shimbashi 510

Daiwa Tsukishima
Glass City Harumi
Daiwa A Hamamatsucho

10

Daiwa Azabudai

Daiwa Ebisu 4-chome
Minato Ward
Sumitomo Fudosan Mita 2-Chome Building
Daiwa Azabu Terrace

2

Daiwa Shibadaimon
Daiwa Shibaura

Tokyo

Daiwa Kitahama

Shinagawa
Ward

Regional Major Cities
As of May 31, 2019

(Note) Properties acquired in the 27th FP and 28th FP are plotted with ●.

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

16Internal Growth Strategies
Continuous Internal Growth andMaximization of Asset Value through “Bonji-Tettei”

Office Management Team (8 members)
Aims at maximizing asset value by means of specialist groups headed by personnel assigned toeach property in the Investment Corporation’s portfolio.

l Accurate understanding of the leasing market

Grasp ofpresent
situations

l Grasping of needs and trends of occupying

l Implementing tenant satisfaction surveys

and proposing improvement measuresl Periodical property examinationl Maintenance of a stable occupancy rate by

Realization ofinternal growth

Takafumi Ushiku

Kotaro Ishii

Jun Arai

Asset management work history:
14 years 10 months

Asset management work history:
13 years 3 months

Asset management work history:
13 years 3 months

tenants through regular visitsl In-depth understanding of property featuresl Information gathering from brokers

Activities forinternal growth

Hiroshi Udagawa
Asset management work history:
13 years

promptly filling vacancies
l Realization of stable management throughsolid relationship with tenantsl Securement of revenue based on wellplanned management

Chie Kamimura

Kosuke Mizunara

Jun Iwasaki

Takeshi Morikawa

Asset management work history:
13 years 1 month

Asset management work history:
5 years 3 months

Asset management work history:
2 year 9 months

Asset management work history:
8 months

Construction Management Team (6 members)
Engineering: Formulation and implementation of construction planning of the assets.

Hiroshi Udagawa
Asset management
work history:
13 years

Aims to maximize asset value

Naoki Murayama

Kazuyoshi Ono

Naoyuki Takeda

Takahiro Hirabayashi

Junpei Takaya

Asset management
work history:
4 years 1 month

Asset management
work history:
12 years 8 months

Asset management
work history:
3 years 10 months

Asset management
work history:
4 years 2 months

Asset management
work history:
6 years 2 months(Note) “Asset management work history” is the number of years engaged in the relevant work (as of July 19, 2019) and does notindicate the number of years employed at the asset management company.

Investment Planning Team (4 members)
Middle office work: Budget and performance management for the portfolios

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

17

Occupancy Status of Properties Subject to Leasing Improvement in
the Fiscal Period ended May 2019 (27th FP) (1)Kita-Shinagawa Gotenyama Building(Acquisition Price: 2,500 million yen)n

The property is a 10-minute walk from
Shinagawa Station on the JR Yamanote
Line, JR Keihin Tohoku Line and JR
Tokaido Line and a 1-minute walk from
Kita-Shinagawa Station on the Keikyu Line.

n

Needs for headquarters, branches andbusiness offices in Tokyo from companies
developing businesses nationwide andemphasizing wide-area traffic convenience
as well as demand for back-offices fromcompanies that have bases in large
buildings in the neighboring areas can be
expected.

Daiwa Jingumae(Acquisition Price: 2,800 million yen)n Located

a 7-minute walk from
Gaienmae Station on the Tokyo
Metro Ginza Line.

n An office building with high visibility

facing Gaien-Nishi Dori street. It
has low-rise and well-designed
exterior as well as a rectangleshaped rental space with no pillars.

Location

Kita-Shinagawa, Shinagawa-ku, Tokyo

Location

Jingumae, Shibuya-ku, Tokyo

Site Area

602.41 m²

Site Area

887.69m²

Structure

SRC/S

Structure

RC

Floor

8F

Floor

B1/4F

Use

Office/Parking

Use

OfficeTotal Floor Area

2,897.64 m²

Total Floor Area

2,673.88m²

Occupancy rate

58.6% (as of end of November 2018)

Occupancy rate

78.5% (as of end of November 2018)

Construction Date

Construction Date

July 1992

Occupancy rate (%)

December 1997

Occupancy rate (%)

Upon acquisitionn Advertised to a wide range of markets with its strength of a relatively low

leasing cost despite its location within walking distance from Shinagawa Station,and successfully attracted tenants from a wide range of areas including thearea between Shibuya Station and Shinagawa Station along the Yamanote Lineand the southern part of Tokyo.
n Occupancy rate as of May 2019 is 100.0%.

n The property is located in an area where redevelopments for the Tokyo Olympic

Games are underway and features a refined design. It received multiple
applications for occupancy and unit rent increased due to special demands
associated with the Olympic Games. In addition, contracts were concluded withno free rent.
n Occupancy rate as of the end of February 2019 was 100%

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

18

Occupancy Status of Properties Subject to Leasing Improvement in
the Fiscal Period ended May 2019 (27th FP) (2)Glass City Shibuya(Acquisition Price: 16,000 million yen)n

Located a 9-minute walk from Shibuya
Station on the JR Yamanote Line.

n

Demand from various companies
including IT-related companies,
wholesalers and retailers as well as
creative tenants such as offices
attracting clients, worker dispatch
business, designer offices and music
and video-related tenants are assumed.

Leasing Results
Occupancy Rate

Maintained 100.0% occupancy rate

Downtime

0 months

Unit Rent

UP 31.5% (Note 1)

Appraisal Value

UP 15.8% (Note 2)

Location

Nanpeidaicho, Shibuya-ku, Tokyo

Site Area(Note 1) Calculated by dividing the newly contracted unit rent for the section subject to leasing by theprevious unit rent.

2,452.64 m²

Structure(Note 2) Comparison with appraisal value as of the end of November 2018.

S/SRC

Floor

B1/11F

Use

OfficeChange in appraisal value

Total Floor Area

10,639.97 m²

Occupancy Rate

100.0% (as of November 30, 2018)

Construction Date

February 2004

(100 million yen)

Increase in
net operating revenue
Decrease incap rate

Occupancy rate (%)

+5.4

+24.6

Receipt of cancellation notice(around September 2018)

Forecasted figures as of November 2018

n Contracts were concluded at a level which is 30.0% higher than the previous unit rent as a result of attracting companies which prefer the Shibuya

area and focus on building image by utilizing the characteristics of the property such as its stylish appearance and the acquisition of “A rank” in
CASBEE Property Appraisal.
n Advertised its size where a maximum of approximately 400 tsubos per floor can be secured against the backdrop of the scarcity of vacant rooms in the

Shibuya area. Maintained an occupancy rate of 100.0% with no downtime although occupancy rate was initially expected to decrease to 49.0% at theend of November 2018.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it
intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

19

Highlights of Leasing for the Fiscal Period ended May 2019 (27th FP)
Glass City Harumi(Acquisition Price: 11,200 million yen)n

The property is a 10-minute walk from
Kachidoki Station on the Toei Subway
Oedo Linen

The property can expect demand forback offices from companies which
need several floors, with each sized at
approximately 288 tsubos, orcompanies with headquarters located in
the neighboring areas.

Leasing Results

Occupancy Rate

47.3%⟶100%

Leasing Period

Approx. 4 months

Newly Leased Area

2652.54 tsubos

Unit Rent

UP 23.1% (Note)(Note) Calculated by dividing the actual contracted unit rent for the section subject to leasing on the
typical floor by the previous unit rent.

Location

Harumi, Chuo-ku, Tokyo

Site Area

2,230.55m²

Structure

S

Predicted figures

Occupancy rate (%)

Floor

B1/12F

Use

Office/Store

Total Floor Area

15,012.46m²

Occupancy Rate

47.3% (as of acquisition)

Construction Date

January 2008

Feb.
2019

May
2019

Aug.
2019

Nov.
2019

n Promoted leasing activities taking into account leasing by section in order to take in demand also from startups while targeting companies which needseveral floors as the main target by utilizing the characteristics of enjoying cost benefits while offering certain transportation convenience to central Tokyo.
n As a result, new contracts were concluded for a total of 2,652.54 tsubos in approximately 4 months after the acquisition and the occupancy rate is expected

to be 100.0% as of September 1, 2019.

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

20

Cases of Value Enhancement Work in the Fiscal Period ended May 2019
Daiwa Shibuya Miyamasuzaka
Value enhancement through large-scalerenovation work of exterior wall

Impact on unit rent
⇒ Achieved rent increase largely exceeding the increase in market unit rent
(existing buildings in Shibuya Ward).

n Visibility, name recognition and asset value increased significantlywith the large-scale renovation work of exterior walls conductedjointly with Tange Associates.

Change in market rent

n Although the property is over 30 years old, average rent increased125

by 20% or more with the completion of construction work.

Average in Shibuya Ward120

n Achieved rent increase by a little over 34% through tenant

replacement.

Daiwa Shibuya Miyamasuzaka

115n Annual amount of appraised NOI increased by approximately 19

110

million yen with the increase in signboard space.

beforeAnnouncement of construction work(from around November 2017)

105
100

Total construction costs: approximately 270 million yen
Construction period: approximately 1 year

95

24th
FP

25th
FP

26th
FP

27th
FP

*Indexed with the figure at the 24th FP as 100.
*Data: Miki Shoji

×
after

Impact on appraisal value

after⇒ Appraisal value as of the end of the 27th FP increased by 31% from the 24th FP
Contributed to the improvement of property value with the improvement of
profitability.
Change in appraisal value(100 million yen)

Increase in net operating revenue
+18.7

120
115
110
105

Decrease in cap rate
+7.9

114

103

100

94

95
90

87

85
80

24th
FP

25th
FP

26th
FP

27th
FP

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

21

MEMO

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

22Section 3External Growth

Acquisition/Sale Policy and Status of Deliberation for Property Acquisitions
Distribution Chart of Portfolio Properties

Acquisition/Sale Policy

Building Age (Year)n

Places priority in the five central wards of Tokyo and equivalent area.

nThoroughly select properties in view of actual demand toward location(distance to station, station power, crowd attraction, surrounding environment),
building specs, etc.

nTarget properties to improve growth potential and profitability of existing
portfolio.

n

Invest in buildings with a building age of less than 25 years.

nConsider replacement when necessary incompetitiveness, profitability, etc. of properties.

considerationoffutureSourcing Strategy Capitalizing on Status as Non-Real
Estate Sponsored REITn

Secure a sourcing route across a wide range by capitalizing on status as anindependent style REIT and establishing strong relations with businesscompanies, financial institutions, real estate brokers, etc.

nTarget optimum expansion of portfolio based on in-depth data analysis upon
careful selection from among the wide-ranging information on properties thatcomes from diverse sources.
Number of Properties Reviewed for Acquisition(Note)(Note) Number of gross proposals.

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

24Acquisition and Sale Scheme through the Exchange inthe Fiscal Period ending November 2019n Conducted property exchange in anticipation of the rejuvenation of portfolio and improvement of profitability

over the medium to long termn Allotted part of gain on sale to the compression of book value of newly acquired properties and contributed
to the increase in unrealized gain

Acquisition

Transfer
Effect of asset replacementl Aim to lower the book value of the property

Exchange

Sumitomo Fudosan Mita 2-Chome Building(1) Acquisition Price(2) Assumed Book Value(1) 2,635 million yen(2) 1,567 million yen (Note 1)

Daiwa Osaki 3-chome(1) Transfer Price(2) Book Value(1) 2,685 million yen(2) 1,594 million yen (Note 4)

Appraisal Value

3,240 million yen (as of June 1, 2019)

Appraisal value

2,350 million yen (as of Nov. 30, 2018)

NOI Yield

Against acquisition price: 4.7% (Note 2)
Against assumed book value: 7.9%

NOI Yield (Note 5)

Against sale price: 4.0%
Against book value: 6.8%

Appraisal NOI Yield
Construction Date / Building Age
Occupancy Rate
SellerDifference fromexchange of property

4.8%
March 2017 / 2.3 years (Note 3)
100.0％

50 million yen

Construction Date / Building Age

September 2007 / 11.8 years (Note 3)

Buyer

Sumitomo Realty & Development Co., Ltd.

acquired by making a reduction entry of
1,067 million yen with the exchange
scheme and improve profitability over the
medium to long term.
Also intend to improve NOI and rejuvenate
the entire portfolio.

Increase in unrealized gain
through exchange (Note 6)
0.7 billion yen → 1.6 billion yen

Properties acquired
Assumed book value NOI yield
7.9 %Sumitomo Realty & Development Co., Ltd.

(Note 1) The Investment Corporation is scheduled to make a reduction entry for the land and building of the property acquired by applying the provisions of the “Inclusion in Deductible
Expenses of the Amount of Advanced Depreciation of Assets Acquired by Exchange” in Article 50 of the Corporation Tax Act and deduct advanced depreciation amount of
1,067 million yen among the gain on sale of the property divested from the book value of the property acquired. As a result, the book value of the property acquired is expected
to be 1,567 million yen before applying the acquisition cost, etc.
(Note 2) NOI yield against acquisition price is calculated based on the leasing agreement for the property acquired on the acquisition date by dividing the annual income with theassumption of the occupancy rate being 100.0% in consideration of the taxes and other costs that may be incurred by acquisition price. The figures are rounded to the firstdecimal place.
(Note 3) As of July 1, 2019l Rejuvenation of portfolio -0.1 years

Transferred a 11.8-year old property
and acquired a 2.3-year old property(Note 4) Book value is as of November 30, 2018.
(Note 5) NOI in the NOI yield is calculated based on the annualized NOI for the 26th FP.
(Note 6) The difference between the appraisal value and assumed book value as of June 1, 2019 is calculated for the property acquired and the difference between the appraisal value
as of the end of the 26th FP and the book value as of November 2018 for the property transferred..

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

25

Properties Acquired and Transferred through Exchange inthe Fiscal Period ending November 2019
Sumitomo Fudosan Mita 2-Chome Building Acquisition price: 2,635 million yen, Acquisition date: July 1, 2019
Transportation access• The property is a 6-minute walk from Akabanebashi Station on the Toei Oedo Subway Line, a 7-minute walk from Mita Station on the
Toei Mita and Asakusa Subway Lines and a 10-minute walk from Tamachi Station on the JR Yamanote and Keihin Tohoku Line. With
train rides from Tamachi Station taking approximately 9 minutes to reach Tokyo Station and those from Mita Station taking approximately
9 minutes to reach Otemachi Station, etc., the property enjoys excellent access to major stations in Tokyo.
• The Shibakoen, Shiba and Mita area where the property stands is adjacent to newly emerging office districts such as Shiodome andShinagawa and also offers excellent access to districts with a high concentration of business such as Otemachi and Hibiya. In addition, it
is located along Sakurada-dori street on National Route 1 and offers high visibility.

Property overview• The property has 8 floors above ground with a gross floor area of 3,003.17 m2 and a leasable area of approximately 90 tsubos per floor
is secured. It is equipped with 2,700 mm of typical floor celling height and 100 mm of OA floor. The exterior of the building features black
aluminum curtain wall delivering strong presence, and the grade and convenience have been enhanced by having a spacious entrance
and multipurpose toilets on the first floor without any rental rooms.
Location /Distance from Station
Land Area(Ownership)

Structure / Floor

Mita, Minato-ku, Tokyo /6-minute walk from
Akabanebashi Station

Construction Date /Building Age
Building Area454.37m²(Compartmentalized ownership 100%)

S / 8F

Number of Tenant
NOI Yield

Assumed Book Value (Note 1)

March 2017 / 2.3 years*
3,003.17m²
1 (as of acquisition)
Depreciation (Note 2)

After Reduction entry
7.9%

1,567 million yen

0.5%

NOI Yield (Note 3)

Appraisal Value (Note 4)

Occupancy Rate

4.8%

3,240 million yen

100.0%NOI Yield (Note 5)

Acquisition Price

Occupancy Rate

4.7%

2,635 million yen

Appraisal

Upon Acquisition
100.0%NOI Yield (Note 6)

Occupancy Rate

4.7%

100.0%(Note 1) The Investment Corporation is scheduled to make a reduction entry for the land and building of the property by applying theprovisions of the “Inclusion in Deductible Expenses of the Amount of Advanced Depreciation of Assets Acquired by Exchange” inArticle 50 of the Corporation Tax Act and deduct advanced depreciation amount of 1,067 million yen among the gain on sale of theproperty sold from the book value of the property. As a result, the book value of the property is expected to be 1,567 million yen
before applying the acquisition costs, etc.
(Note 2) The figure for depreciation is the total amount of the six-month depreciation conversion figure expected to accrue in the fiscal periodof acquisition and the appropriate expected depreciation charge for the next fiscal period (six-month period), which are divided by theacquisition price. The figures are rounded to the first decimal place. The figure is not the forecast for the current fiscal period or the
next fiscal period onward.
(Note 3) The figure for appraisal NOI yield is calculated based on net operating income used for the calculation of the income approach value
as per the direct reduction process as stipulated in the property appraisal report and divided by acquisition price. The figure isrounded to the first decimal place.
(Note 4) As of May 1, 2019
(Note 5) NOI yield at acquisition is calculated based on the leasing agreement for the property on the acquisition date by dividing the annual
income with the assumption of the occupancy rate being 100.0% in consideration of the taxes and other costs that may be incurredby acquisition price. The figures are rounded to the first decimal place.
(Note 6) Midterm NOI yield is calculated based on the assumption that after the property acquisition, the Investment Corporation will receive
rent on an ongoing basis for the medium term (with the assumption of the occupancy rate being 100.0%). The estimated figureswhere the rental business expenses are deducted from the rental revenue are divided by the acquisition price. The figures arerounded to the first decimal place. The figure is not the forecast for the current fiscal period or the next fiscal period onward.
(*) As of July 1, 2019

Mid-term

Daiwa Osaki 3-chome Transfer price: 2,685 million yen, Transfer date: July 1, 2019
Location /Distance from Station

Osaki, Shinagawa-ku, Tokyo /3 minutes

Construction Date /Building Age

September 2007 /11.8 years*

Appraisal value

2,350 million yen(as of November 30, 2018)

Structure / Floor

S/SRC / B1F/6F

NOI Yield (Note)

4.0%

Floor area

2,243.36 m²(Note) NOI yield is calculated by dividing theactual annualized NOI for the 26th FP by
the transfer price.
(*) As of July 1, 2019

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

26

Newly Acquired Properties in the Fiscal Period ended May 2019
Glass City Harumi Acquisition price: 11,200 million yen, Acquisition date: February 27, 2019
Transportation access• The property is a 10-minute walk from Kachidoki Station on the Toei Subway Oedo Line. With train rides
from Kachidoki Station taking approximately 13 minutes to reach Otemachi Station and approximately 22
minutes to reach Shinjuku Station, etc., the property enjoys excellent access to major stations in Tokyo.
• The Kachidoki area where the property stands allows tenants to lease medium to large buildings with good
specifications/equipment and relatively low rents while securing a certain level of transport convenience as
it is located close to central Tokyo and thus has strong appeal for tenants. Given such, the property can
expect demand for back offices from companies which need several floors, with each sized at
approximately 288 tsubos, or companies with headquarters located in the neighboring areas.
Property overview• The property has 12 floors above ground and 1 floor below with a gross floor area of 15,012.46 m² and aleasable area of approximately 288 tsubos per floor is secured. It is equipped with 2,800 mm of typicalfloor celling height and 100 mm of OA floor. The exterior of the building features aluminum curtain walldelivering strong presence, and since it stands on a wide street, the property boasts high visibility.
Equipped with an individual air-conditioning system, one floor can be air-conditioned in three parts.
Therefore, the property is highly versatile in accommodating leasing by floor or by section. In addition, theproperty has acquired a GOLD level in LEED, an environmental performance evaluation/certification
program for use of buildings and land, etc., and can thus also be expected to attract companies that areenvironmentally conscious (foreign companies, etc.).
(Note 1) As of February 13, 2019

Location /Distance from Station
Construction Date
/Building Age

Harumi Chuo-ku, Tokyo /10-minute walk from Kachidoki Station
January 2008
11.1 years*

Structure/Floor

S / B1/12F

Occupancy Rate

47.3% (as of acquisition)NOI Yield

Appraisal Value (Note 1)

Land Area

Building Area

Number of Tenant

Occupancy Rate

Upon Acquisition (Note 2)(Note 2) Figures calculated by dividing the expected annual balance of payments
under the assumed occupancy rate (95.0%) by the acquisition price,based on the lease agreement upon acquisition, etc. while taking into
account the accrual of tax and public due, etc. are indicated. The figures
do not represent forecast figures for the current period or the next period
onward.

12,000 million yen

2,230.55m²(Note 3) Figures calculated by dividing the estimated figures for normal operation
period (with assumed occupancy rate of 95.0%) after acquisition,
obtained by deducting rent business-related expenses from rent revenue
assumed under rents over a medium term, by the acquisition price areindicated. The figures do not represent forecast figures for the current
period or the next period onward.

15,012.46m²

6 (as of acquisition)NOI Yield

Occupancy Rate

* As of end of February 2019

Mid-term (Note 3)
4.1%

95.0%

NOI Yield

Occupancy Rate

4.2%

95.0%

4.2%

Depreciation (Note 4)

Appraisal(Note 4) Depreciation indicates a figure obtained by dividing the total amount ofdepreciation (6-month equivalent) expected to be posted upon property
acquisition and depreciation (for 6 months) expected to be posted in thefollowing fiscal period by the acquisition price. The figures do not
represent forecast figures for the current period or the next period onward.

95.0%

0.6%

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

27

Properties Newly Acquired and Sold in
the Fiscal Period ended May 2019
Sasazuka South Building Acquisition price: 3,000 million yen, Acquisition date: December 27, 2018
Transportation access• The property is a 7-minute walk from Sasazuka Station on the Keio Line/Keio New Line and a 6-minute walk from Daitabashi
Station. The location is excellent considering that Sasazuka Station is only five minutes from Shinjuku Station, and from thepoint of the proximity to the terminal station.
• The Sasazuka area where the property stands has head offices, laboratories, etc. of new IT startups. Being relatively close to
Shinjuku, the area is likely to expect demand for back offices from construction-related companies and companies which havehead offices in Shinjuku.

Property overview• The property has eight floors above ground and one below with a gross floor area of 5,400.7 m2 and a leasable area ofapproximately 167 tsubo per floor is secured. It is equipped with 2,600 mm of typical floor celling height, 70 mm of OA floor,
individual air-conditioning system, etc. The office has no pillars within the rental space, which enables to offer excellent layout
flexibility and usability.
• Even after surpassing 25 years since its completion, the property has been appropriately maintained and managed, and will
stay competitive from here on out without lagging behind properties in the surrounding area through systematic facility renewal
after the acquisition.
Location /Distance from Station

Sasazuka Shibuya-ku, Tokyo /6-minute walk from Daitabashi Station

Construction Date
/Building Age

December 1991
26.9 years*

Structure/Floor

SRC/S / B1/8F

Occupancy Rate

100.0% (as of acquisition)(Note 1) As of December 1, 2018

Appraisal Value (Note 1)
Land Area(Ownership)

3,300 million yen(Note 2) Figures calculated by dividing the expected annual balance of payments under theassumed occupancy rate (100.0%) by the acquisition price, based on the leaseagreement upon acquisition, etc. while taking into account the accrual of tax andpublic due, etc. are indicated. The figures do not represent forecast figures for thecurrent period or the next period onward.

1,001.88m²(Note 3) Figures calculated by dividing the estimated figures for normal operation period (withassumed occupancy rate of 95.0%) after acquisition, obtained by deducting rent
business-related expenses from rent revenue assumed under rents over a medium
term, by the acquisition price are indicated. The figures do not represent forecast
figures for the current period or the next period onward.

Building Area

5,400.70m²(Compartmentalized ownership 100%)
Number of Tenant

NOI Yield

Occupancy Rate

4.2%

100.0%NOI Yield

Occupancy Rate

4.9%

95.0%

Upon Acquisition (Note 2)

9 (as of acquisition)NOI Yield

Occupancy Rate

5.0%

95.0%

Mid-term (Note 3)

Depreciation (Note 4)

Appraisal(Note 4) Depreciation indicates a figure obtained by dividing the total amount of depreciation(6-month equivalent) expected to be posted upon property acquisition anddepreciation (for 6 months) expected to be posted in the following fiscal period by theacquisition price. The figures do not represent forecast figures for the current period
or the next period onward.
* As of end of November 2018

0.6%

Daiwa Onarimon Transfer price: 13,700 million yen, Sale date: February 28, 2019
Location /Distance from Station

Shimbashi, Minato-ku, Tokyo / 2 minutes

Construction Date /Building Age

April 1973 / 45.9 years*

Appraisal value

13,700 million yen(as of November 30, 2018)

SRC / 9FNOI Yield (Note)

3.6%

Structure / Floor

Floor area

13,805.18m²(Note) NOI yield is calculated by dividing theactual annualized NOI for the 26th FP by
the transfer price.
(*) As of February 28, 2019

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

28

Changes in Asset Size and Trading Performance
Aim to Achieve Medium-Term Goal Asset Size of 500 Billion Yen

500.0
467.7

469.3 469.3

459.7

458.3
445.7

460.0

461.0

439.4

413.2
387.5
364.0
352.7
332.0
311.3

313.2

314.9
40.6

287.3
269.1

44.3

43.0

278.1

40.2

42.3

42.2

42.3

40.5

41.5

34.4
Acquisition Property• Daiwa River Gate
• Daiwa Hatchobori ekimae• Daiwa Hatchobori ekimae West

Acquisition Property

28.9• Daiwa Shibuya Dogenzaka• Daiwa Akasaka• Daiwa Shibuya Miyamasuzaka

28.1
25.5

Acquisition Property• E SPACE TOWER
Acquisition Property• Daiwa Kayabacho• Daiwa Jinbocho 3-chome

Acquisition Property

Acquisition Property• Daiwa Nishi-Shimbashi• Daiwa Kudan

Acquisition Property• Daiwa Osaki 3-chome
Acquisition Property

Acquisition Property• Daiwa Higashi-Nihonbashi• Daiwa Daikanyama• Shinjuku West Building• Daiwa Ogikubo

Acquisition Property• Integral Tower

Acquisition Property• Prime Kanda Building• Kita-Shinagawa Gotenyama Building• Sasazuka NA Building

Acquisition Property• Sasazuka South Building• Glass City Harumi• Daiwa Azabu Terrace• Daiwa Kitahama
Acquisition Property• Daiwa Nihonbashi Hongokucho• Daiwa Kanda Mikuracho• Daiwa Ebisu 4-chome• LAQUAS Higashi Shinjuku• Daiwa Aoyama• Shinsen Place• Glass City Shibuya• Daiwa Meguro Square• shinyon curumu• Daiwa Meieki• Daiwa Kamiooka

Acquisition Property• CONCURRED Yokohama• Daiwa Kanda East
Acquisition Property

Acquisition Property• Daiwa Jimbocho

42.1

43.3

37.5
34.2

34.0

Acquisition Property

41.7

Acquisition Property

Acquisition Property• Daiwa Nishi-Shinjuku• Kirin Nihonbashi Building• Sumitomo Fudosan Mita 2-Chome BuildingThis document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it
intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

29Section 4
Financial Strategy

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

Status of Interest-bearing Liabilities(End of 27th Fiscal Period)(Hundred Million Yen)

Ratio of
Fixed and Floating Borrowings

Ratio ofLong and Short-Term Borrowings(Note)

14.4%

Medium- to long-term,
upper-limit target LTV range

13.5%

42.1%

85.6%

86.5%

Fixed interest

Long-term loans payable, etc.

Floating interest

Short-term loans payable,
current portion of long-termloans payable and current
portion of investment
corporation bonds

Status of Rating
Japan Credit Rating Agency, Ltd. (JCR)

Long-term issuer rating
Rating outlook: Stable(As of February 5, 2019)

Rating and Investment Information, Inc. (R&I)
11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th
FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP(Note) LTV (based on total assets) = Total interest-bearing liabilities / Total assets

Issuer rating
Rating outlook: Positive(As of September 12, 2018)

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

31

Status of Interest-bearing Liabilities (2)Repayment Schedule(Million Yen)

Changes in Procured Years of Interest-Bearing Liabilities(Year)(Year)n Investment Corporation Bond

8.3

4.0

4.1

28th 29th 30th 31st 32nd 33rd 34th 35th 36th 37th 38th 39th 40th 41st 42nd 43rd 44nd 45th 46th 47th
FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP

15th
FP

16th
FP

17th
FP

18th
FP

19th
FP

20th
FP

21st 22nd 23rd
FP
FP
FP

24th
FP

25th
FP

26th
FP

27th
FP

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

32

Status of Interest-bearing Liabilities (3)As of End of the 27th Fiscal Period(Million Yen)
Nam e of Financial Institutions

BalanceComparison with
Previous Period

Balance Ratio

Nam e of Financial Institutions

Comparison with
Previous Period

Balance

Balance Ratio

Sum itom o Mitsui Banking
Corporation

41,400+2,000

20.8%

The Yam aguchi Bank, Ltd.

2,000

-

1.0%

Sum itom o Mitsui Trust Bank,Lim ited

24,500+1,000

12.3%

The Norinchukin Bank

2,000

+2,000

1.0%

Developm ent Bank of Japan Inc.

21,750-

10.9%

Nippon Life Insurance Com pany

1,300

-

0.7%

MUFG Bank, Ltd.

21,500-10.8%

The Higashi-Nippon Bank, Lim ited

1,000

-

0.5%

Mizuho Corporate Bank, Ltd.

20,400+1,000

10.2%

The Hyakugo Bank, Ltd.

1,000

+1,0000.5%

Shinsei Bank, Lim ited

14,000-

7.0%

The Yamanashi Chuo Bank,
Ltd.

1,000

+1,0000.5%

Resona Bank, Lim ited

12,500-

6.3%

Taiyo Life Insurance Com pany

300

-

0.2%

Mizuho Trust and Banking Co.,
Ltd.

9,500

-

4.8%

Fukoku Mutual Life Insurance
Com pany

200

-

0.1%

The Bank of Fukuoka, Ltd.

6,500

+1,0003.3%

ORIX Bank Corporation--1,5000.0%

Kansai Mirai Bank, Lim ited

5,000

-

2.5%

The Kagaw a Bank, Ltd.

-

-1,0000.0%

Nishi-Nippon City Bank, Ltd.

3,000

-

1.5%

199,350+5,500100.0%The Gunm a Bank, Ltd.

2,500

-

1.3%

Aozora Bank, Ltd.

2,000

-1,000

1.0%

The 77 Bank, Ltd.

2,000

-

1.0%

No. 3 Unsecured Investm ent
Corporation Bond

3,000

-

5 years

The Musashino Bank, Ltd.

2,000

-

1.0%

No. 4 Unsecured Investm ent
Corporation Bond

2,100

-

10 years

Tokio Marine & Nichido Fire
Insurance Co., Ltd.

2,000

-

1.0%

Total
Investm ent Corporation Bonds

5,100

-

-

Total (26 banks)

Issuance

Balance

Duration of
Liabilities

Comparison with
Previous Period

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

33

Unitholders as of the End of the May 2019 (27th) Fiscal Period
Unitholders’ Share by Investor Type
Investor Type

Number of
Units
End of 26th
Fiscal Period

Number of
Units
End of 27th
Fiscal Period

List of Top 10 Investors
Rate (Note)
End of 27th
Fiscal Period

Change of
Units

No.

Investor Nam e

Individuals

15,507

14,092-1,415

2.86%

1 Daiwa Investment Management Inc.

Financial
Institutions

170,277

161,625-8,65232.86%

2

-

-

-

0.00%

13,482

10,802-2,6802.20%

Commercial
Bank

Regional Bank

Trust BankLife Insurance

145,874
1,690

136,995
395-8,879-1,295The Master Trust Bank of Japan, Ltd.
(Investment Trust Account)

3 Daiwa Securities Group Inc.

128,905-

26.21%

65,79060,945-4,84512.39%

59,321

59,321-12.06%

40,651

41,979+1,328

8.53%

5

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

20,941

16,752-4,1893.41%

13,444

12,804

-640

2.60%

9,017

9,671

+654

1.97%

3,962

6,662

+2,7001.35%

9 SSBTC CLIENT OMNIBUS ACCOUNT

6,061

6,240

+179

1.27%

10 Rakuten General Insurance Co., Ltd.

-

5,310

+5,3101.08%

348,092

348,589+497

70.87%

27.85%
0.08%

444

5,366

+4,922

1.09%

8,787

8,067

-720

1.64%

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

8

Other Dom estic
Corporation

191,021

190,743-278

38.78%

Foreigner

109,735

108,524-1,21122.06%

Securities

5,337

16,893+11,556

3.43%

Total

491,877

491,877-

100.00%(Note) Rounded to the second decimal place

128,905

Rate (Note)
End of 27th
Fiscal Period

Change ofUnits

Japan Trustee Services Bank, Ltd.
(Trust Account)

7 BNYM AS AGT/CLTS 10 PERCENT
Other Financial
Institutions

Number of
Units
End of 27th
Fiscal Period

4

6 Ltd.
Non-life
Insurance

Number of
Units
End of 26th
Fiscal Period

Mitsubishi UFJ Morgan Stanley
Securities Co., Ltd.

Total

(Note) Rounded to the second decimal place

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

34Section 5
Efforts on ESG

Efforts on ESG | Sustainable Development Goals (SDGs)
The Asset Management Company of the Investment Corporation is making efforts to realize the philosophy of“Sustainable Development Goals (SDGs)” based on “Passion for SDGs 2018~ Daiwa Securities Group’s SDGs
Declaration~” announced by Daiwa Securities Group Inc., the sponsor group.
Sustainable Development Goals (SDGs)
SDGs are international goals unanimously adopted at the UN Summit in September 2015.
It is composed of “17 goals, 169 targets and 232 indicators” effective until 2030 pledging that noone will be left behind to realize a society with diversity and inclusivity in sustainable development.
The following are the five characteristics
Universality

All countries including developed countries shall act

Inclusivity

Ensuring that no one will be left behind by reflecting the philosophy of security

Participatory

All stakeholders shall play their roles

Integrity

Making integrated efforts on society, the economy and environment

Transparency

Conducting regular follow-up
Source: Website of Ministry of Foreign Affairs

Passion for SDGs 2018―Daiwa Securities Group’s SDGs Declaration―
Daiwa Securities Group Inc. regards “SDGs (Sustainable Development Goals)” adopted by the UN in 2015 as an important goal leading the world, and ismaking proactive efforts to realize an affluent society and enriched lives of citizens by achieving both the pursuit of economic value and the resolution ofsocial issues through the Group’s business.
l Creation of shared valuel Realization of various personnel training and work styleCreating both economic value and social value of corporations at the same time by making efforts tosolve social issues with flexible ideas without being bounded by preconceived ideas as acomprehensive securities group providing a wide range of services satisfying the needs from various
customers.

l Partnership with stakeholders

Making efforts to realize various personnel training and work style by promoting work-life balanceand supporting the success of female and veteran employees as well as creating an environment
where all employees regardless of gender and age are satisfied and able to maximally demonstrate
their skills.

l Improvement and spread of awareness

Aiming to contribute to the resolution of a wide range of social issues through the partnership witheach stakeholder by utilizing the characteristics of the Group which connects countries, companies,
investors, etc.

Intending to provide and spread an understanding on SDGs to all executives and employees as wellas contributing to the improvement of the awareness on SDGs of customers through the Group’sbusiness as the leader in the financial and capital market.

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

36

Efforts on ESG | Environment
Environmental Certification
Acquisition of rating in “MUFG ESG Rating Certificate for J-REIT supported by JCR”

GRESB Real Estate Assessment
The Investment Corporation participates in the GRESB Real Estate Assessment
since 2011 and earned the best rating of Green Star for seventh consecutive
year from 2012.

In "MUFG ESG Rating Certificate for J-REIT supported by JCR"
by MURC, the Investment Corporation received an “A Rank” forits wide range of activities in all areas of ESG.

LEED Certification
Glass City Harumi acquired a GOLD level in
LEED
DBJ Green Building Certification

The “LEED® Certification Mark” is a
registered trademark owned by the
U.S. Green Building Council and isused with permission in this material.

<Shinjuku Maynds Tower>

Shinjuku Maynds Tower acquired 4
Stars, evaluated for improving its
building habitability by introducing
various environmental and energy
conserving technologies while providing
a lot of restaurants, clinic and otherfacilities that facilitate convenience fortenants.

CASBEE Property Appraisal
Glass City Shibuya and Shinjuku
Maynds Tower were awarded "Arank" in CASBEE for Market
Promotion certification system.

<Glass City Shibuya><Shinjuku Maynds Tower>

BELS Evaluation
Daiwa Jimbocho, Daiwa Kayabacho Building and shinyon curumu have newly
acquired a Building Energy-efficiency Labeling System (BELS) evaluation of★★★, ★★ and ★ respectively as of March 3, 2016
<Daiwa Jimbocho><Daiwa Kayabacho Build.><shinyon curumu>

Certification Based on SMBC Sustainable Building Assessment Loan
Daiwa Ginza earned "Gold" due to high evaluation for factors including "policy andimplementation of sustainable management," "sustainable utilization of site," and"risk management," despite the age of Daiwa Ginza approaching 50 years.
<Daiwa Ginza><E SPACE TOWER>E SPACE TOWER earned "Silver" dueto high evaluation for "policy andimplementationofsustainable
management," “sustainable utilizationof site," "indoor environment" and"water-saving."

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

37

Efforts on ESG | Social / GovernanceEfforts for Enhancing Tenant Satisfaction
Customer Satisfaction Survey

Giving Out Novelty Goods[Target properties][Period][Target properties]

All properties

August 2018 to September 2018

Entrance floor, the first floor of Shinjuku Maynds Tower[Details][Period]

Conducted questionnaire survey concerning cleaning of common-use
areas, cleaning of office areas, elevators, toilets/powder rooms, etc.
targeting people in charge of general affairs and office workers of its
tenants. The aim is to enhance tenant satisfaction by identifying issues
and making improvements.

Around December of each year

[Details]
Give out annual Shinjuku Maynds Tower desk calendar. Aim is to improve sense of affinity among office workers
of its tenants toward Shinjuku Maynds Tower.

Efforts for Employees

Coexistence with Local Communities
Shinjuku Minami Lumi

Improving Work Environment

Fostering of Human Resources[Target properties][Period][Target properties][Target]Shinjuku Maynds Tower

Annually early November to midFebruary of next year

Daiwa Ginza

Asset Management Company[Period][Details]

Since October 2018

The Asset Management Company of theInvestment Corporation introduced asystem to subsidize expenses required
to obtain qualifications, targeting a wide
range from those related to real estateincluding real estate appraiser, ARES
Certified Master and real estate notary to
Securities Analyst and language-related
qualifications.

[Details]

Held “Shinjuku Minami Lumi,” an event to illuminate Shinjuku
South Exit area, jointly with Odakyu Electric
Railway, Takashimaya, East Japan Railway and Asahi MutualLife Insurance for sixth consecutive year since 2013.
With dreamy illuminations, the event provides a space for office
workers in the nearby companies and stores, visitors and local
residents to communicate with each other while improving
awareness of the Shinjuku South Exit area.

[Details]
Substantially expanded open space and secured
community space for employees to relax or havemeetings. The aim is to enable fruitfulcommunication among employees.

Establishment of Policy Regarding ESG[Details]
The Investment Corporation established the Policy
Regarding ESG on March 31, 2019 as follows,
judging that emphasizing ESG (Environment, Socialand Governance) contributes to the enhancementof the Investment Corporation's medium- to longterm corporate value.

1. Initiatives on Environmental Protection (Environment)
We will proactively promote initiatives on environmental protection such as resource and energy-saving measures such as theintroduction of facilities and equipment contributing to environmental protection at owned properties.
2. Connection to Society (Social)
We will proactively disclose information and fulfill accountability to all of stakeholders through IR activities, etc. We will accomplishsocial missions of a listed investment corporation by providing high-quality and comfortable residential spaces in partnership.
3. Corporate Governance (Governance)
We will make highly transparent and reasonable decisions under the laws and regulations and various rules while being aware of
the importance of corporate ethics and compliance.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it
intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

38

MEMO

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

39

Appendix

Three Characteristics of the Investment Corporation(As of July 19, 2019)

OfficeBuilding

Office Specialized REIT

100％

Greater Tokyo
16.9％

Regional Major Cities
2.1％

REIT focused on
the Five Central Wards ofTokyo

Five Central Wardsof Tokyo
81.1％(Note) Based on acquisition price.

Fiscal period
ended Nov. 2018
(26th FP)

Steady Growth in Distribution
Dividend
per Unit

Fiscal period
Fiscal period
Fiscal period
ended May 2019 ending Nov. 2019 ending May 2020
(29th FP)
(28th FP)
(27th FP)

ActualActualForecast

Forecast

11,997 yen

12,559 yen

13,000 yen

13,200 yen

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

41Percentage of Properties by Region and Status in
Shinjuku and Shibuya Areas
Shinjuku Maynds Tower

Percentage of Properties by Region
Osaka City
2.1％

Yokohama City
8.7％
Other 23 Wardof Tokyo
8.2％
Chiyoda Ward
5.3％

Minato Ward
11.4%

Shinjuku Maynds Tower Occupancy Rate（％）

Regional Cities
2.1％
Greater Tokyo
16.9％

Shibuya Ward
35.2％

Shibuya Ward/
Shinjuku Ward
Ratio
42.3％
Five Central Wardsof Tokyo
81.1％

Shinjuku Ward
7.1％

Chuo Ward
22.1%

Location

2-chome, Yoyogi,
Shibuya-ku

Acquisition
price66,900 million yen

12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th
FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP
End
End*1 Based on acquisition price(As of July 19, 2019)*2 Percentage is rounded to the first decimal place

E SPACE TOWER

Large-scale Office Building Supply inthe 23 Wards of Tokyo

E SPACE TOWER Occupancy Rate

2019―2023（％）

Total from 2019 to 2023

4,890,000 m²
Other
700,000 m²
Shibuya Ward
460,000 m²

ChiyodaWard
1,030,000 m²

Shinjuku Ward
230,000 m²

Chuo Ward
430,000 m²
Minato Ward2,040,000 m²

Location

3 Maruyama-cho,Shibuya-ku

Acquisition
price

24,000 million yen

12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th
FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP
End
End

Source: Mori Trust
Large-scale properties: Offices with total floor areas of 10,000 m² or more

(Note) Rent revenue is indexed as 11/11 = 100. Ownership interest of Shinjuku Maynds Tower is adjusted from the 25th FP.

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

42

Summary of Results for the Fiscal Period ended May 2019 (27th FP) (1)― Balance Sheet ―Comparison with Results of the 26th Fiscal Period

Cash and Deposits in Trust
Other Current Assets
Fixed Assets
Tangible Fixed Assets
Building and Others(including Trust Property )Land and Others(including Trust Property )AssetsOther Tangible Fixed Assets
Intangible Fixed Assets
Leasehold Rights and Leasehold
Rights in Trust
Other Intangible Fixed Assets
Inv estments and Other Assets

26th Fiscal Period

27th Fiscal Period

Million Yen

Million Yen

Million Yen

Million Yen

24,203(%)

5.1

30,71619,00826,663

4,301

3,479

3,000

3,000

18,00019,500583

567

Adv ances Receiv ed

2,177

2,323

Other Current Liabilities

779

1,261

451,179

94.2

451,185

92.9

Accounts Pay ables-Other

364,489

425

831

2,728

0.6

2,705

0.2

997

884

791

Other Inv estments and Other
Assets

87

92
0.0

14
479,212Inv estment Corporation Bonds
Long-term Loans Pay able
Tenant Leasehold and Security
Deposits
Tenant Leasehold and Security
Deposits in Trust

20

Long-term Prepaid Expenses

14

0.6

2,705

23
1,085

2,725

11

0.2

Other Fixed Liabilities
Total Liabilities

0.0

485,636100.0

199,29141.6

198,543

2,100

2,100

175,850

174,850

18,145

19,145

2,647

1,844

549

603

225,08847.0

231,175

247,876

247,876

251,551

251,551-3,675-3,675

Unappropriated Retained Earnings

6,468

6,887

Valuation, Translation Adjustments andOthers-220-303

Unitholders’ equity (net amount)

11
100.0

Fixed Liabilities

Unitholders' capital
Deduction f rom unitholders’ capital

Total Net Assets
Total Liabilities and Net Assets(%)

32,632

5,000

93.7

365,554

5.4

0

Short-term loans pay able

454,908

85,86525,796981

94.9

85,199(%)

1,255

Operating Accounts Pay ables

572

113

Total Assets

Current Liabilities

454,994

892

113

Inv estment Corporation Bond
Issuance Costs

6.3

Current portion of inv estment
corporation bonds
Current Portion of Long-term Loans
Pay able

Leasehold and Security Deposits
Paid in Trust

Def erred Assets(%)

Liabilities

Cash and Deposits

27th Fiscal Period

Net Assets

Current Assets

26th Fiscal Period

6.7

40.9

47.6

254,12453.0

254,460

52.4

479,212100.0

485,636100.0This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it
intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

43

Summary of Results for the Fiscal Period ended May 2019 (27th FP) (2)― Income Statement ―Comparison with Results of the 26th Fiscal Period

Comparison with the 27th Fiscal Period Forecasts(Note) Dividends per unit for the 27th FP is calculated by dividing the amount obtained by subtracting provision for reserve for reduction entry (142 million yen) from unappropriated retained earnings by the total number of investment units issued and outstanding.

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

44Forecasts for the Fiscal Periods ending November 2019 and May 2020
(28th and 29th FP)
Forecasts for the 28th and 29th Fiscal Periods(Million Yen)

Effective Number of Days of Investment

27th Period(May 31, 2019)28th Period
Forecast(Nov. 31, 2019)29th Period
Forecast(May 31, 2020)

182 days

183 days

183 days

13,833

14,024

13,979

142

20

-

6,853

6,966

6,840

Expenses related to Rental Business(excluding depreciation)

3,666

3,742

3,607

Depreciation

Operating Rev enues (A)Gain on sales of real estate properties
Operating Expenses (B)

1,813

1,811

1,836

Gain and Loss f rom Rental Operations(excluding gain on sales of real estate properties)

8,211

8,450

8,535

Operating Income (A-B)

6,979

7,058

7,138

Non-operating Expenses

662

661

643

520

518

503

6,320

6,396

6,495

Extraordinary Income

-

-

-

Extraordinary Expenses

-

-

-

Total Income Taxes(Includes income taxes def erred)

0

2

2

6,320

6,394

6,493

491,877 units

491,877 units

491,877 units

12,559 yen

13,000 yen

13,200 yen

Interest Expense(including cap amortization)
Ordinary Income

Net Income
Inv estment Units Issued and Outstanding
Div idend per Unit (Note)(Note) Dividends per unit for the 27th FP is calculated by dividing the amount obtained by subtracting provision for reserve for reduction entry (142 million yen) from unappropriated retained
earnings by the total number of investment units issued and outstanding.

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

45

Major Financial Data

Item

Number of days of investment

Number of properties at end of period

Occupancy rate at end of period

Unit

23rd
Period24th
Period25th
Period26th
PeriodNOI

27th
Period

Day

182

183

182

183

182

Property

54

54

55

58

59

%

97.7

98.2

99.0

98.9

97.1

Average acquisition priceMillion Yen

469,166

469,341

463,157

445,053

463,168

NOI (after deduction of gain on sale)

Million Yen

9,166

9,224

9,271

9,583

10,024

Funds from operation (FFO)

Million Yen

7,129

7,223

7,177

7,635

7,990

%

2.2

2.3

2.5

2.5

2.6

Rent revenue + Other operating revenue –Expenses
related to rent business + Depreciation
FFO
Net income + Depreciation – Gain on sale

ROA
Annualized ordinary income /Return on asset (ROA)(total assets at beginning of fiscal period + total assets
at end of fiscal period) / 2

ROE
Annualized net income /Return on equity (ROE)

%

4.2

4.2

4.6

4.6

5.0

Capital adequacy ratio at end of period

%

53.0

53.1

54.3

53.0

52.4

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

%

42.2

42.3

40.5

41.5

42.1

(net assets at beginning of fiscal period + net assets at
end of fiscal period) / 2

Loan-to-Value (LTV) at end of fiscal period
Interest-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 Act or any regulation of similar nature, nor is it
intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

46

Status of Interest-bearing Liabilities (as of May 31, 2019) (1)Borrowings(Note) Fixed Interest Rate and Floating Interest Rate are rounded to the third 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.
** Interest rates are converted based on 1 year = 365 days and indicated.

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

47

Status of Interest-bearing Liabilities (as of May 31, 2019) (2)Borrowings

Investment Corporation Bonds(Note) Fixed Interest Rate and Floating Interest Rate are rounded to the third 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.
** Interest rates are converted based on 1 year = 365 days and indicated.

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

48

Analyses of Tenants
Major Tenants Top 10 List

% Share of Industries (Note 1) of Top 100 Tenants (Note 2)
Other
12.5%
Schools
2.5%
Insurance
4.3%

Information &Communication
24.6%

Foods
4.7%
Electric Device
5.6%
Real Estate
5.8%
Construction
6.2%
Precision
Instruments
6.4%

Services
20.9%
Retail Trade
6.5%(As of May 31, 2019)(Note 1) Industries are categorized according to TSE’s 33 industry groups.
(Note 2) The leased area of top 100 tenants covers 59.9% of total leased area as of the end of the 27th Fiscal Period(Note 3) The ratio is rounded down to the first decimal place(Note 1) Not disclosed due to tenant's request.
(Note 2) Rounded down to the first decimal place.

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

49

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

Compared to End of 26th Period

Book Value

Property Name
End of 26th Period

End of 27th Period

End of 27th Period

ChangeDifference

Compared to Book Value at
End of 27th Period
Difference

Cap Rate
Acquisition Price
End of 26th Period End of 27th Period

ChangeDaiw a Ginza

17,40017,400Daiw a Ginza Annex

3,860
8,080
4,660

+200
+20

+2.5%
+0.4%

12,9202,749
7,980+4,479+1,110+99

Daiw a Minam i Aoyam a

3,860
7,880
4,640

4,413

Daiw a Sarugakucho

3,850

3,970

+120

+3.1%

3,161

Daiw a A Ham am atsucho

3,700
2,620
3,250

3,810

+110

+3.0%

2,880

+260

3,290

+40

Daiw a Shim bashi 510

2,870
2,530

2,870
2,530

-

Daiw a Tsukijiekim ae

2,000

2,150

Daiw a Tsukiji

Daiw a Azabudai

1,610
10,500
2,750
1,940

1,640
10,5002,780
1,940

Daiw a Kyobashi

3,450

3,450

Daiw a Kojim achi 4-chom e
Shinjuku Maynds Tow er (Note)

2,880
63,0002,890
63,000Daiw a SHIBUYA EDGE

5,210

5,250

+40

+0.8%

5,628

-378

-6.7%

5,900

3.7%

3.7%

Daiw a Kodem m acho

2,230

Daiw a Jim bocho

2,230
3,680

Daiw a Nishishim bashi

6,860

3,890
7,050

+210
+190

+5.7%
+2.8%

2,354
3,964
4,678

-124
-74
+2,371

-5.3%
-1.9%
50.7%

2,460
4,150
5,000

4.2%
3.9%
3.5%

4.2%
3.8%
3.5%

Daiw a Kayabacho Building

8,190

8,190

-

-

5,208

+2,981

57.2%

5,600

3.3%

3.3%

Daiw a Jinbocho 3-chom e

5,220
34,7002,580

5,240
35,9002,580+20+1,200
-

+0.4%
+3.5%

+1,905+12,358+1,012

57.1%
52.5%

3,550
24,000

3.3%
3.2%

3.3%
3.1%

-

3,334
23,541
1,567

64.6%

1,721

3.9%

3.9%

15,90015,00016,20015,000

+300
-

+1.9%
-

9,614
10,239+6,585+4,760

68.5%
46.5%

9,650
9,200

3.2%
3.2%

3.2%
3.2%

10,30017,20011,40017,400+1,100+10.7%

7,360+4,039

54.9%

7,000

3.5%

3.4%

+200

+1.2%

13,981+3,41824.5%

14,000

3.7%

3.6%

Daiw a Shibaura

Daiw a Jingum ae
Daiw a Shibadaim on
Daiw a Misakicho

Daiw a Tsukishim a
Daiw a Nihonbashi Horidom echo

E SPACE TOWER
Daiw a Nihonbashi Hongokucho
shinyon curum u
Daiw a Akasaka
Daiw a Shibuya Miyam asuzaka
Daiw a Azabu Terrace

34.7%
40.4%
1.3%

14,100
3,050
8,265

3.5%
3.5%
4.0%

3.5%
3.5%
4.0%

+246

5.6%

4,550

3.8%

3.8%

+808

25.6%

3,190

4.4%

4.4%

+9.9%

2,747
2,693

+1,062
+186

38.7%
6.9%

2,865
2,800

+1.2%

2,376

+913

2,128
2,127

+741
+402

2,578
2,346
2,080

3.7%
3.8%
3.6%

-

38.4%
34.8%
18.9%

3.7%
3.8%
3.6%
3.9%
4.0%

3.9%
4.0%

+150
+30

+7.5%
+1.9%

1,273
1,127

+876
+512

4.1%
4.0%

+1.1%
-

6,775
2,436
1,503

+3,724
+343
+436

1,560
1,240
7,840

4.2%
4.1%

+30
-

68.9%
45.4%
55.0%
14.1%
29.0%

2,520
1,600

4.1%
4.0%
3.9%

4.1%
4.0%
3.9%

-

-

+10
-

+0.3%
-

3,188
2,822
64,158+261+67-1,158

8.2%
2.4%
-1.8%

3,460
2,910
66,900

4.0%
3.7%
3.2%

4.0%
3.7%
3.2%

(Note) The appraisal value for Shinjuku Maynds Tower is indicated as co-ownership values equivalent to 3/7 of the total values for the building. Co-ownership of 3/7 is indicated in the acquisition priceThis document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it
intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

50

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

Compared to End of 26th Period

Property Name
Daiwa Ebisu 4-chome
LAQUAS Higashi Shinjuku
Daiwa Aoyama
Shinsen Place
Glass City Shibuya
Daiwa River Gate
Daiwa Hatchobori ekimae
Daiwa Hatchobori ekimae West
Daiwa Nishi-Shinjuku
Kirin Nihonbashi Building
Daiwa Higashi-Nihonbashi
Daiwa Daikanyama
Shinjuku West Building
Daiwa Kanda Mikuracho
Daiwa Kanda East
Prime Kanda Building
Sasazuka NA Building
Sasazuka South Building
Glass City Harumi
Daiwa Higashi-Ikebukuro
Daiwa Shinagawa North
Daiwa Osaki 3-chome
Daiwa Kamiooka
Integral Tower
Daiwa Meguro Square
Daiwa Ogikubo
CONCURRED Yokohama
Kita-Shinagawa Gotenyama Building

Daiwa Kitahama
Total (Note)

End of 26th Period

End of 27th Period

6,090
10,90012,4006,720
18,40031,7003,360
1,850
15,900
8,290
6,860
3,370
1,210
1,740
5,340
2,710
16,100
4,070
6,180
2,350
2,830
21,5006,820
4,610
39,9002,630
11,700523,330

6,100
10,90012,4006,720
21,30032,6003,360
1,860
16,000
8,290
6,860
3,510
1,210
1,770
5,470
2,760
16,1003,340
12,000
4,250
6,210
2,480
2,840
22,0006,910
4,610
39,9002,650
11,700548,130

Difference+10+2,900
+900
+10
+100
+140
+30
+130
+50
+180
+30
+130
+10
+500
+90
+20
+9,460Change+0.2%+15.8%
+2.8%
+0.5%
+0.6%
+4.2%
+1.7%
+2.4%
+1.8%
+4.4%
+0.5%
+5.5%
+0.4%
+2.3%
+1.3%
+0.8%
1.8%

Book Value
End of 27th Period

4,228
8,441
9,994
4,864
15,91927,8372,923
1,717
13,991
8,390
6,290
2,380
979
1,592
4,285
2,377
16,072
3,110
11,281
2,633
7,116
1,584
1,875
15,738
5,494
3,983
38,1362,583
9,173
453,059

Compared to Book Value at
End of 27th Period
Difference

Change+1,871+2,458+2,405+1,855+5,380+4,762+436+142+2,008-100+569+1,129+230+177+1,184
+382
+27
+229
+718
+1,616
-906
+895
+964
+6,261+1,415+626+1,763+66+2,526+95,070

44.3%
29.1%
24.1%
38.1%
33.8%
17.1%
14.9%
8.3%
14.4%
-1.2%
9.1%
47.4%
23.5%
11.1%
27.6%
16.1%
0.2%
7.4%
6.4%
61.4%
-12.7%
56.5%
51.4%
39.8%
25.8%
15.7%
4.6%
2.6%
27.5%
21.0%

Cap Rate
Acquisition Price
End of 26th PeriodEnd of 27th Period

4,135
8,450
9,800
4,800
16,00028,0002,871
1,647
13,710
8,180
6,370
2,280
942
1,592
4,200
2,295
15,5003,000
11,200
2,958
7,710
1,650
2,000
15,2205,600
3,800
38,1002,500
9,481
460,076

3.7%
3.3%
3.2%
3.3%
3.5%
3.9%
3.5%
3.6%
3.3%
3.9%
3.9%
3.4%
3.8%
4.0%
3.7%
3.7%
3.9%
4.1%
4.2%
3.8%
4.5%
3.7%
3.5%
3.9%
4.3%
4.0%
3.8%
-

3.7%
3.4%
3.2%
3.3%
3.4%
3.8%
3.5%
3.6%
3.3%
3.9%
3.9%
3.3%
3.8%
3.9%
3.6%
3.7%
3.9%
4.0%
3.8%
4.1%
4.2%
3.8%
4.5%
3.7%
3.6%
3.9%
4.3%
4.0%
3.8%
-

(Note) Difference and change in “Compared to End of 26th Period” do not include the impact of the properties acquired or sold in the 27th Period.

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

51

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

Appraisal Value at
End of 27th Period

Summary of Appraisal Report (End of 27th Period)
Direct Capitalization Method
Value

Cap Rate

DCF Method
Value

Discount Rate Terminal Cap Rate

Integrated Value

Daiwa Ginza

17,40017,6003.5%

17,1003.3%

3.7%

19,300Daiwa Ginza Annex

3,860

3,830

3.5%

3,880

3.3%

3.7%

5,020

Daiwa Shibaura

8,080

8,060

4.0%

8,090

3.8%

4.2%

6,990

Daiwa Minami Aoyama

4,660

4,720

3.8%

4,600

3.6%

4.0%

4,340

Daiwa Sarugakucho

3,970

4,030

4.4%

3,910

4.2%

4.6%

1,900

Daiwa A Hamamatsucho

3,810

3,890

3.7%

3,780

3.5%

3.9%

2,310

Daiwa Jingumae

2,880

2,930

3.8%

2,820

3.6%

4.0%

2,860

Daiwa Shibadaimon

3,290

3,350

3.6%

3,270

3.4%

3.8%

2,200

Daiwa Misakicho

2,870

2,910

3.9%

2,850

3.7%

4.1%

1,820

Daiwa Shimbashi 510

2,530

2,560

4.0%

2,500

3.8%

4.2%

2,290

Daiwa Tsukijiekimae

2,150

2,150

4.1%

2,150

4.1%

4.3%

2,050

Daiwa Tsukiji

1,640

1,650

4.0%

1,640

4.0%

4.2%

1,610

Daiwa Tsukishima

10,50010,600

4.1%

10,400

3.8%

4.3%

5,610

Daiwa Nihonbashi Horidomecho

2,780

2,840

4.0%

2,710

3.8%

4.2%

1,730

Daiwa Azabudai

1,940

1,970

3.9%

1,900

3.7%

4.1%

1,350

Daiwa Kyobashi

3,450

3,500

4.0%

3,400

3.8%

4.2%

2,350

Daiwa Kojimachi 4-chome

2,890

2,910

3.7%

2,870

3.5%

3.9%

4,650

Shinjuku Maynds Tower (Note)

63,000150,000

3.2%

144,000

3.0%

3.4%

123,000

Daiwa SHIBUYA EDGE

5,250

5,340

3.7%

5,150

3.5%

3.9%

3,810

Daiwa Kodemmacho

2,230

2,250

4.2%

2,200

4.0%

4.4%

1,210

Daiwa Jimbocho

3,890

3,900

3.8%

3,890

3.8%

4.0%

3,860

Daiwa Nishishimbashi

7,050

7,180

3.5%

6,990

3.3%

3.7%

4,880

Daiwa Kayabacho Building

8,190

8,340

3.3%

8,120

3.1%

3.5%

6,840

Daiwa Jinbocho 3-chome

5,240

5,360

3.3%

5,190

3.1%

3.5%

4,300

E SPACE TOWER

35,90036,7003.1%

35,1002.9%

3.3%

33,700Daiwa Nihonbashi Hongokucho

2,580

2,610

3.9%

2,570

3.7%

4.1%

1,780

shinyon curumu

16,20016,5003.2%

16,1003.0%

3.4%

15,900Daiwa Akasaka

15,00015,3003.2%

14,9003.0%

3.4%

13,800Daiwa Shibuya Miyamasuzaka

11,40011,600

3.4%

11,2003.2%

3.6%

10,700Daiwa Azabu Terrace

17,40017,7003.6%

17,1003.4%

3.8%

16,800(Note) The appraisal value for Shinjuku Maynds Tower is indicated as co-ownership values equivalent to 3/7 of the total values for the building. The other figures are indicated as 7/7 of the total values.

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

52

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

Appraisal Value at
End of 27th Period

Summary of Appraisal Report (End of 27th Period)
Direct Capitalization Method
Value

DCF Method

Cap Rate

Discount Rate

Value

Terminal Cap Rate

Integrated Value

Daiwa Ebisu 4-chome

6,100

6,020

3.7%

6,130

3.8%

3.9%

4,760

LAQUAS Higashi Shinjuku

10,900

11,2003.4%

10,700

3.2%

3.6%

11,100Daiwa Aoyama

12,40012,7003.2%

12,2003.0%

3.4%

11,700Shinsen Place

6,720

6,820

3.3%

6,670

3.2%

3.5%

4,610

Glass City Shibuya

21,30021,5003.4%

21,0003.2%

3.6%

18,500Daiwa River Gate

32,60032,7003.8%

32,5003.5%

3.9%

31,300Daiwa Hatchobori ekimae

3,360

3,490

3.5%

3,310

3.3%

3.7%

4,140

Daiwa Hatchobori ekimae West

1,860

1,920

3.6%

1,830

3.4%

3.8%

2,100

Daiwa Nishi-Shinjuku

16,00016,5003.3%

15,800

3.1%

3.5%

16,100Kirin Nihonbashi Building

8,290

8,440

3.9%

8,130

3.6%

4.0%

7,620

Daiwa Higashi-Nihonbashi

6,860

7,020

3.9%

6,790

3.7%

4.1%

5,470

Daiwa Daikanyama

3,510

3,570

3.3%

3,490

3.3%

3.5%

3,190

Shinjuku West Building

1,210

1,220

3.8%

1,200

3.6%

4.0%

993

Daiwa Kanda Mikuracho

1,770

1,800

3.9%

1,760

3.9%

4.1%

2,030

Daiwa Kanda East

5,470

5,500

3.6%

5,430

3.3%

3.7%

5,280

Prime Kanda Building

2,760

2,840

3.7%

2,720

3.7%

3.9%

2,460

Sasazuka NA Building

16,10016,8003.9%

15,800

3.7%

4.1%

14,900

Sasazuka South Building

3,340

3,480

4.0%

3,280

3.8%

4.2%

2,590
9,670

Glass City Harumi

12,00012,7003.8%

11,7003.8%

4.0%

Daiwa Higashi-Ikebukuro

4,250

4,310

4.1%

4,230

3.9%

4.3%

2,310

Daiwa Shinagawa North

6,210

6,300

4.2%

6,120

4.0%

4.4%

4,450

Daiwa Osaki 3-chome

2,480

2,520

3.8%

2,460

3.6%

4.0%

1,600

Daiwa Kamiooka

2,840

2,850

4.5%

2,830

4.3%

4.7%

2,280

Integral Tower

22,00022,2003.7%

21,9003.5%

3.9%

14,300Daiwa Meguro Square

6,910

7,080

3.6%

6,840

3.4%

3.8%

6,890

Daiwa Ogikubo

4,610

4,680

3.9%

4,580

3.7%

4.1%

3,360

CONCURRED Yokohama

39,90041,200

4.3%

39,4004.1%

4.5%

35,400

2,650

2,710

4.0%

2,630

3.8%

4.2%

2,540

11,70012,0003.8%

11,6003.6%

4.0%

14,600548,130

644,350-

623,410--555,203

Kita-Shinagawa Gotenyama Building

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

53

Change in the Portfolio’s Unrealized Gain/Loss(Billion Yen)(%)

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

54

Portfolio Performance Summary (1)Fiscal Period ended May 2019 (27th FP Results by Property)
Daiwa Ginza

Daiwa Ginza Annex

Daiwa Minami Aoyama

Daiwa Shibaura

Daiwa Sarugakucho

Daiwa A Hamamatsucho

Daiwa Jingumae

Property Name

Acquisition Price (million yen)

14,10026th FP

3,050

27th FP

26th FP

8,265
27th FP

26th FP

4,550
27th FP

26th FP

3,190
27th FP

26th FP

2,865
27th FP

26th FP

2,800
27th FP

26th FP

27th FPBook Value (million yen)

12,99012,920

2,758

2,749

8,005

7,980

4,422

4,413

3,177

3,161

2,762

2,747

2,702

2,693

Appraisal Value (million yen)

17,40017,400

3,860

3,860

7,880

8,080

4,640

4,660

3,850

3,970

3,700

3,810

2,620

2,880

Occupancy Rate (% )

100.0

99.6

100.0

100.0

98.3

99.1

100.0

100.0

100.0

100.0

100.0

100.0

78.5

100.0

4.53

4.53

3.97

3.97

3.82

3.82

9.19

9.19

7.14

7.14

3.79

3.79

13.33

13.33

PML (% )(Note 1)

Property Management Company

Profits from property-related activities(Note 2)

Number of operating days

Best Property

Best Property

Xymax AlphaBest Property

Property Partners

Best Property

Best Property

183

182

183

182

183

182

183

182

183

182

183

182

183

182

(1) Property-related Rev enues (thousand yen)

400,727

425,575

96,374

98,515

261,440

263,820

124,760

130,737- (Note 6)- (Note 6)

133,551

135,884

65,73992,088Rent (incl. common serv ice fees)

400,727

411,787

96,374

98,515

259,747

260,480

124,760

130,737- (Note 6)- (Note 6)

133,551

135,884

65,73978,7510

13,787

0

0

1,693

3,340

0

0

- (Note 6)- (Note 6)

0

0

0

13,336

94,258104,216

39,071

22,67262,356

65,66432,021

26,978- (Note 6)- (Note 6)

60,80690,821

19,701

19,869Other Rev enues (Note 3)(2) Property-related Expenses (thousand yen)
Administrativ e Expenses

12,68016,999

5,730

3,999

12,04013,477

6,082

3,720

- (Note 6)- (Note 6)

8,303

7,681

6,256

6,806

Utility Charges

29,614

26,865

7,513

6,997

20,181

20,082

8,115

7,136

- (Note 6)- (Note 6)

9,320

9,249

4,776

4,411

Property Management Fee

6,012

6,374

1,422

1,503

3,926

3,942

1,854

2,016

- (Note 6)- (Note 6)

1,979

2,135

1,200

1,345

Tax and Public Due

29,74329,740

9,755

9,751

20,495

20,496

12,47912,479- (Note 6)- (Note 6)

9,049

9,047

6,736

6,737

Non-life Insurance Costs
Repair Expenses

376

389

87

90

345

355

136

140

- (Note 6)- (Note 6)

160

164

74

76

2,686

10,703

14,560

330

5,367

7,289

3,352

1,484

- (Note 6)- (Note 6)

2,594

33,142649

485

13,144

13,144

0

0

0

20

0

0

- (Note 6)- (Note 6)

29,40029,40077(3) NOI (=(1)-(2)) (Note 4) (thousand yen)

306,468

321,358

57,30275,842

199,084

198,156

92,738103,758

94,03992,15572,74545,062

46,037

72,218Annualized NOI (thousand yen)611,262

644,482

114,291

152,101

397,080

397,401

184,970

208,087

187,565

184,817

145,093

90,372

91,823

144,833

4.7%

5.0%

4.1%

5.5%

5.0%

5.0%

4.2%

4.7%

5.9%

5.8%

5.3%

3.3%

3.4%

5.4%

74,88774,881

10,27010,28429,851

31,06914,486

14,693- (Note 6)- (Note 6)

15,127

15,111

9,233

9,212

0

9,300

0

0

193

376

0

0

- (Note 6)- (Note 6)

0

0

0

5,658

0

0

0

0

0

0

0

0

- (Note 6)- (Note 6)

0

0

0

0

Other Expenses(Reference)

NOI Yield(Note 5)

Depreciation and amortization (thousand yen)Repair Work (thousand yen)
Proceeds from Amortization of Leasehold andSecurity (thousand yen)

(Note 1) Sompo Risk Care Management Inc. has prepared the PML for the 27th fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2019).
(Note 2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(Note 3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(Note 4) (3) NOI in this table is calculated by adjusting the Tax and Public Due for the “NOI (after deduction of gain on sale)”aforementioned in the Appendix “Major Financial Data” so the figures do not match.
(Note 5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(Note 6) Not disclosed due to tenant's request.

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

55

Portfolio Performance Summary (2)Fiscal Period ended May 2019 (27th FP Results by Property)
Daiwa Shibadaimon

Daiwa Misakicho

Daiwa Tsukijiekimae

Daiwa Shimbashi 510

Daiwa Tsukiji

Daiwa Nihonbashi
Horidomecho

Daiwa Tsukishima

Property Name

Acquisition Price (million yen)

2,578
26th FP

2,346
27th FP

26th FP

2,080
27th FP

26th FP

1,560
27th FP

26th FP

1,240
27th FP

26th FP

7,840
27th FP

26th FP

2,520
27th FP

26th FP

27th FPBook Value (million yen)

2,387

2,376

2,139

2,128

2,134

2,127

1,286

1,273

1,135

1,127

6,830

6,775

2,450

2,436

Appraisal Value (million yen)

3,250

3,290

2,870

2,870

2,530

2,530

2,000

2,150

1,610

1,640

10,50010,500

2,750

2,780

Occupancy Rate (% )

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

3.72

3.72

4.24

4.24

5.51

5.51

4.23

4.23

4.98

4.98

4.87

4.87

4.68

4.68

PML (% )(Note 1)

Property Management Company

Profits from property-related activities(Note 2)

Number of operating days

Best Property

Best Property

Property Partners

MS Building Support

Xymax Alpha

Property Partners

Best Property

183

182

183

182

183

182

183

182

183

182

183

182

183

182

(1) Property-related Rev enues (thousand yen)

87,641

87,259- (Note 6)- (Note 6)

77,23976,38060,621

67,18754,981

51,535281,985

280,562

80,917

84,699Rent (incl. common serv ice fees)

87,641

87,259- (Note 6)- (Note 6)

77,23976,38060,621

67,18751,766

51,535281,985

280,562

80,201

84,69900- (Note 6)- (Note 6)

0

0

0

0

3,215

0

0

0

716

0

21,382

20,478- (Note 6)- (Note 6)

20,584

19,041

18,911

15,17029,144

11,53844,22542,352

19,77019,118Other Rev enues (Note 3)(2) Property-related Expenses (thousand yen)
Administrativ e Expenses

5,657

5,275

- (Note 6)- (Note 6)

6,540

5,961

5,966

2,713

2,304

2,431

7,408

7,465

5,185

3,475

Utility Charges

7,021

6,460

- (Note 6)- (Note 6)

6,161

5,399

6,330

5,542

2,834

2,869

15,956

15,241

4,828

5,198

Property Management Fee

1,315

1,319

- (Note 6)- (Note 6)

1,200

1,200

1,200

1,200

1,236

1,383

4,230

4,210

1,214

1,270

Tax and Public Due

6,567

6,566

- (Note 6)- (Note 6)

6,051

6,049

5,235

5,230

4,056

4,056

14,265

14,264

6,993

6,992

Non-life Insurance Costs

108

111

- (Note 6)- (Note 6)

111

114

87

89

56

57

261

269

118

121

Repair Expenses

712

745

- (Note 6)- (Note 6)

520

317

74

376

18,656

740

2,103

900

1,429

2,060

0

0

- (Note 6)- (Note 6)

0

0

18

18

0

0

0

0

0

0

(3) NOI (=(1)-(2)) (Note 4) (thousand yen)

66,25966,78064,431

63,22756,65457,33841,70952,017

25,83639,996

237,760

238,209

61,14765,580

Annualized NOI (thousand yen)

132,156

133,927

128,511

126,803112,999

114,991

83,190104,320

51,53280,212474,221477,728

121,960

131,521

5.5%

5.6%

6.0%

6.0%

5.3%

5.4%

6.5%

8.2%

4.5%

7.1%

6.9%

7.1%

5.0%

5.4%

10,921

10,837- (Note 6)- (Note 6)

9,234

9,293

13,311

13,537

7,626

7,622

57,64356,012

15,31815,32600- (Note 6)- (Note 6)

0

0

0

0

0

0

0

0

0

0

0

0

- (Note 6)- (Note 6)

0

0

0

0

0

0

0

0

0

0

Other Expenses(Reference)

NOI Yield(Note 5)

Depreciation and amortization (thousand yen)Repair Work (thousand yen)
Proceeds from Amortization of Leasehold andSecurity (thousand yen)

(Note 1) Sompo Risk Care Management Inc. has prepared the PML for the 27th fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2019).
(Note 2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(Note 3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(Note 4) (3) NOI in this table is calculated by adjusting the Tax and Public Due for the “NOI (after deduction of gain on sale)”aforementioned in the Appendix “Major Financial Data” so the figures do not match.
(Note 5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(Note 6) Not disclosed due to tenant's request.

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

56

Portfolio Performance Summary (3)Fiscal Period ended May 2019 (27th FP Results by Property)
Daiwa Azabudai

Daiwa Kyobashi

Daiwa Kojimachi 4-chome

Daiwa Onarimon (Note 6)

Shinjuku Maynds Tower

Daiwa SHIBUYA EDGE

Daiwa Kodemmacho

Property Name

Acquisition Price (million yen)

1,600
26th FP

3,460
27th FP

26th FP

2,910
27th FP

26th FP

13,86027th FP

26th FP

66,90027th FP

26th FP

5,900

27th FP

26th FP

2,460
27th FP

26th FP

27th FPBook Value (million yen)

1,510

1,503

3,206

3,188

2,835

2,822

13,504-64,35464,158

5,642

5,628

2,364

2,354

Appraisal Value (million yen)

1,940

1,940

3,450

3,450

2,880

2,890

13,700-63,00063,000

5,210

5,250

2,230

2,230

Occupancy Rate (% )

100.0

100.0

100.0

100.0

100.0

100.0

96.3

-

99.9

99.3

100.0

100.0

100.0

100.0

6.64

6.64

4.51

4.51

6.19

6.19

3.89

-

2.03

2.03

1.56

1.56

4.19

4.19

PML (% )(Note 1)

Property Management Company

Profits from property-related activities(Note 2)

Number of operating days

Best Property

Best Property

Best Property

Xymax Alpha

Xymax Alpha

Xymax Alpha

Property Partners

183

182

183

182

183

182

183

89

183

182

183

182

183

182

(1) Property-related Rev enues (thousand yen)

52,03955,446

104,723

103,91587,36388,824355,291

155,684

1,324,664

1,334,628

128,849

128,157

65,777

66,202Rent (incl. common serv ice fees)

52,03955,446

104,723

103,91587,36388,824355,291

149,714

1,324,664

1,334,628

128,849

128,157

65,777

66,202

0

0

0

0

0

0

0

5,969

0

0

0

0

0

0

13,561

12,56424,25927,74130,543

68,293

106,419

76,126399,443

359,398

22,168

22,10815,66233,253

Other Rev enues (Note 3)(2) Property-related Expenses (thousand yen)
Administrativ e Expenses

3,144

2,655

4,280

4,304

3,796

3,567

11,9009,731

72,22976,171

4,352

4,726

4,099

3,955

Utility Charges

3,598

3,440

9,366

8,794

7,761

6,893

24,01913,699139,004

135,616

7,775

7,630

5,216

5,067

Property Management Fee

1,200

1,200

1,571

1,559

1,310

1,333

3,526

1,542

9,335

9,383

1,933

1,930

1,200

1,200

Tax and Public Due

5,081

5,080

7,482

7,476

16,055

16,05537,77050,166

172,096130,392

7,587

7,587

3,792

3,792

Non-life Insurance Costs

66

68

115

119

129

131

361

183

1,633

1,669

94

96

84

86

Repair Expenses

470

120

1,443

5,486

1,490

40,312

28,839

803

2,908

3,914

424

136

445

18,327

0

0

0

0

0

0

0

0

2,235

2,248

0

0

822

822

(3) NOI (=(1)-(2)) (Note 4) (thousand yen)

38,47742,88280,464

76,17356,81920,530248,872

79,558925,220975,230

106,680

106,049

50,11532,948Annualized NOI (thousand yen)

66,078Other Expenses(Reference)

NOI Yield

76,74586,000160,488

152,765

113,329

41,174496,384-

1,845,385

1,955,819

212,778

212,681

99,957(Note 5)

5.1%

5.7%

5.0%

4.8%

4.0%

1.5%

3.7%

-

2.9%

3.0%

3.8%

3.8%

4.2%

2.8%

Depreciation and amortization (thousand yen)

9,234

9,174

19,93019,82113,804

13,84032,79419,066200,933

201,093

16,727

16,862

9,731

9,724

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Repair Work (thousand yen)
Proceeds from Amortization of Leasehold andSecurity (thousand yen)

(Note 1) Sompo Risk Care Management Inc. has prepared the PML for the 27th fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2019).
(Note 2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(Note 3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(Note 4) (3) NOI in this table is calculated by adjusting the Tax and Public Due for the “NOI (after deduction of gain on sale)”aforementioned in the Appendix “Major Financial Data” so the figures do not match.
(Note 5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(Note 6) Properties sold in 27th FP

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

57

Portfolio Performance Summary (4)Fiscal Period ended May 2019 (27th FP Results by Property)
Daiwa Jimbocho

Daiwa Nishishimbashi

Daiwa Kayabacho Building

Daiwa
Jinbocho 3-chome

Daiwa Nihonbashi
Hongokucho

E SPACE TOW ER

shinyon curumu

Property Name

Acquisition Price (million yen)

4,150
26th FP

5,000
27th FP

26th FP

5,600
27th FP

26th FP

3,550
27th FP

26th FP

24,00027th FP

26th FP

1,721

27th FP

26th FP

9,650
27th FP

26th FP

27th FPBook Value (million yen)

3,982

3,964

4,708

4,678

5,231

5,208

3,353

3,334

23,59423,541

1,579

1,567

9,649

9,614

Appraisal Value (million yen)

3,680

3,890

6,860

7,050

8,190

8,190

5,220

5,240

34,70035,900

2,580

2,580

15,90016,200Occupancy Rate (% )

100.0

100.0

100.0

100.0

100.0

100.0

100.0

88.1

93.3

89.6

100.0

100.0

100.0

100.0

5.05

5.05

3.76

3.76

4.50

4.50

5.33

5.33

3.11

3.11

3.80

3.80

4.44

4.44

PML (% )(Note 1)

Property Management Company

Profits from property-related activities(Note 2)

Number of operating days

Xymax Alpha

Japan Property Solutions

Property Partners

Japan Property Solutions

Xymax AlphaMS Building Support

MS Building Support

183

182

183

182

183

182

183

182

183

182

183

182

183

182

(1) Property-related Rev enues (thousand yen)

109,205

103,021

176,290

167,803- (Note 6)- (Note 6)

113,890

124,000

739,614765,141

71,58371,732372,712394,138

Rent (incl. common serv ice fees)

109,115

103,021

176,290

167,803- (Note 6)- (Note 6)

113,890

115,308

739,614765,141

71,58371,732372,712391,383

90

0

0

0

- (Note 6)- (Note 6)

0

8,692

0

0

0

0

0

2,754

27,00529,00346,09750,943- (Note 6)- (Note 6)

28,58525,847

185,638

164,715

11,94011,41987,55584,222Other Rev enues (Note 3)(2) Property-related Expenses (thousand yen)
Administrativ e Expenses

4,816

7,873

13,134

18,465- (Note 6)- (Note 6)

6,082

5,666

52,914

41,385

2,166

2,154

21,296

20,216

Utility Charges

7,625

7,133

12,623

10,336- (Note 6)- (Note 6)

8,482

7,439

57,942

48,208

3,347

3,459

26,75824,076

Property Management Fee

1,200

1,200

2,315

2,268

- (Note 6)- (Note 6)

1,911

1,834

7,504

7,714

1,200

1,200

3,754

3,925

Tax and Public Due

11,534

11,534

16,245

16,253- (Note 6)- (Note 6)

9,843

9,843

59,64559,644

4,538

4,533

35,21235,211

Non-life Insurance Costs
Repair Expenses

121

124

218

223

- (Note 6)- (Note 6)

111

115

577

598

69

71

288

305

1,668

877

1,561

3,396

- (Note 6)- (Note 6)

2,153

947

6,981

6,321

618

0

245

487

40

260

0

0

- (Note 6)- (Note 6)

0

0

72

841

0

0

0

0

(3) NOI (=(1)-(2)) (Note 4) (thousand yen)

82,19974,017130,192

116,860

148,169

146,990

85,30598,153553,976

600,426

59,64260,313285,157

309,916

Annualized NOI (thousand yen)

163,950

148,442

259,674

234,362

295,529294,788

170,144

196,845

1,104,925

1,204,152

118,959

120,958

568,756

621,535

4.1%

3.7%

5.5%

5.0%

5.6%

5.7%

5.1%

5.9%

4.7%

5.1%

7.5%

7.7%

5.9%

6.5%

21,087

21,15935,12835,408- (Note 6)- (Note 6)

19,836

19,85473,26975,037

13,293

13,30036,48136,5000000- (Note 6)- (Note 6)

0

0

0

0

0

0

0

0

0

0

0

0

- (Note 6)- (Note 6)

0

0

0

0

0

0

0

0

Other Expenses(Reference)

NOI Yield(Note 5)

Depreciation and amortization (thousand yen)Repair Work (thousand yen)
Proceeds from Amortization of Leasehold andSecurity (thousand yen)

(Note 1) Sompo Risk Care Management Inc. has prepared the PML for the 27th fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2019).
(Note 2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(Note 3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(Note 4) (3) NOI in this table is calculated by adjusting the Tax and Public Due for the “NOI (after deduction of gain on sale)”aforementioned in the Appendix “Major Financial Data” so the figures do not match.
(Note 5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(Note 6) Not disclosed due to tenant's request.

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

58

Portfolio Performance Summary (5)Fiscal Period ended May 2019 (27th FP Results by Property)
Daiwa Shibuya
Miyamasuzaka

Daiwa Akasaka

Daiwa Ebisu 4-chome

Daiwa Azabu Terrace

LAQUAS Higashi Shinjuku

Daiwa Aoyama

Shinsen Place

Property Name

Acquisition Price (million yen)

9,200
26th FP

7,000
27th FP

26th FP

14,00027th FP

26th FP

4,135

27th FP

26th FP

8,450
27th FP

26th FP

9,800
27th FP

26th FP

4,800
27th FP

26th FP

27th FPBook Value (million yen)

10,296

10,239

7,187

7,360

14,033

13,981

4,238

4,228

8,467

8,441

10,012

9,994

4,877

4,864

Appraisal Value (million yen)

15,00015,00010,30011,40017,20017,400

6,090

6,100

10,90010,90012,40012,400

6,720

6,720

Occupancy Rate (% )

100.0

100.0

100.0

100.0

99.6

100.0

100.0

100.0

100.0

100.0

91.5

100.0

100.0

100.0

7.14

7.14

5.64

5.64

2.67

2.67

2.44

2.44

4.46

4.46

4.42

4.42

6.21

6.21

PML (% )(Note 1)

Property Management Company

Profits from property-related activities(Note 2)

Number of operating days

Japan Property Solutions

Xymax AlphaBest Property

MS Building Support

ITOCHU Urban Community

MS Building Support

MS Building Support

183

182

183

182

183

182

183

182

183

182

183

182

183

182

(1) Property-related Rev enues (thousand yen)351,389

357,743

269,737

301,868

485,183

475,286- (Note 6)- (Note 6)

234,120

230,454259,612

227,404- (Note 6)- (Note 6)

Rent (incl. common serv ice fees)

351,389

357,743

264,939

301,868

485,183

471,657- (Note 6)- (Note 6)

234,120

230,454

243,840

227,404- (Note 6)- (Note 6)

0

0

4,797

0

0

3,629

- (Note 6)- (Note 6)00

15,7720- (Note 6)- (Note 6)

306,411

101,818

76,687

139,908

121,007

123,689- (Note 6)- (Note 6)

48,527

46,181

34,662

37,711- (Note 6)- (Note 6)

Other Rev enues (Note 3)(2) Property-related Expenses (thousand yen)
Administrativ e Expenses

28,113

20,67135,477

20,557

27,95030,853- (Note 6)- (Note 6)

8,718

8,739

8,682

13,305- (Note 6)- (Note 6)

Utility Charges

30,61330,215

15,402

16,27551,852

48,266- (Note 6)- (Note 6)

15,011

13,602

8,483

7,674

- (Note 6)- (Note 6)

Property Management Fee

3,846

3,963

3,262

3,602

4,285

4,299

- (Note 6)- (Note 6)

1,200

1,200

2,747

2,775

- (Note 6)- (Note 6)

Tax and Public Due

34,40034,39921,13821,13733,08833,089- (Note 6)- (Note 6)

21,09521,095

13,446

13,446- (Note 6)- (Note 6)

Non-life Insurance Costs
Repair Expenses

364

375

256

267

517

531

- (Note 6)- (Note 6)

267

276

132

139

- (Note 6)- (Note 6)

209,072

11,993

1,151

78,032

3,213

6,567

- (Note 6)- (Note 6)

2,008

1,109

1,170

370

- (Note 6)- (Note 6)

0

200

0

36

99

82

- (Note 6)- (Note 6)

226

158

0

0

- (Note 6)- (Note 6)(3) NOI (=(1)-(2)) (Note 4) (thousand yen)

44,977

255,924

193,049

161,959

364,176

351,596

141,069

140,076

185,593

184,273

224,949

189,692

125,085

125,481

Annualized NOI (thousand yen)

89,709513,255

385,044324,809726,362

705,125

281,368

280,922370,173369,558

448,670

380,427

249,486

251,653

0.9%

5.0%

5.4%

4.4%

5.2%

5.0%

6.6%

6.6%

4.4%

4.4%

4.5%

3.8%

5.1%

5.2%

58,53058,871

22,11925,34351,78951,902- (Note 6)- (Note 6)

32,73533,16819,56018,649- (Note 6)- (Note 6)

0

0

0

0

0

0

- (Note 6)- (Note 6)

0

0

0

0

- (Note 6)- (Note 6)

0

0

0

0

0

0

- (Note 6)- (Note 6)

0

0

0

0

- (Note 6)- (Note 6)

Other Expenses(Reference)

NOI Yield(Note 5)

Depreciation and amortization (thousand yen)Repair Work (thousand yen)
Proceeds from Amortization of Leasehold andSecurity (thousand yen)

(Note 1) Sompo Risk Care Management Inc. has prepared the PML for the 27th fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2019).
(Note 2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(Note 3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(Note 4) (3) NOI in this table is calculated by adjusting the Tax and Public Due for the “NOI (after deduction of gain on sale)”aforementioned in the Appendix “Major Financial Data” so the figures do not match.
(Note 5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(Note 6) Not disclosed due to tenant's request.

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

59

Portfolio Performance Summary (6)Fiscal Period ended May 2019 (27th FP Results by Property)
Glass City Shibuya

Daiwa River Gate

Daiwa Hatchobori ekimae

Daiwa Hatchobori ekimae
W est

Daiwa Nishi-Shinjuku

Kirin Nihonbashi Building Daiwa Higashi-Nihonbashi

Property Name

Acquisition Price (million yen)

16,00026th FP

28,00027th FP

26th FP

2,871

27th FP

26th FP

1,647
27th FP

26th FP

13,71027th FP

26th FP

8,180

27th FP

26th FP

6,370
27th FP

26th FP

27th FPBook Value (million yen)

15,95015,91927,932

27,837

2,934

2,923

1,722

1,717

14,004

13,991

8,415

8,390

6,314

6,290

Appraisal Value (million yen)

18,40021,30031,70032,600

3,360

3,360

1,850

1,860

15,90016,000

8,290

8,290

6,860

6,860

Occupancy Rate (% )

100.0

100.0

99.3

99.7

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

1.61

1.61

1.76

1.76

5.89

5.89

7.03

7.03

4.32

4.32

5.76

5.76

4.37

4.37

PML (% )(Note 1)

Property Management Company

Profits from property-related activities(Note 2)

Number of operating days

Best Property

Xymax Alpha

ITOCHU Urban Community ITOCHU Urban Community

MS Building Support

Japan Property Solutions

ITOCHU Urban Community

183

182

183

182

183

182

183

182

183

182

183

182

183

182

(1) Property-related Rev enues (thousand yen)

423,416

397,162

1,068,211

1,069,611

83,426

83,29347,06247,491

338,267

338,420- (Note 6)- (Note 6)

174,957

173,721

Rent (incl. common serv ice fees)

423,416

397,162

1,064,809

1,062,880

83,426

83,29347,06247,491

338,267

338,420- (Note 6)- (Note 6)

174,957

173,721

0

0

3,402

6,730

0

0

0

0

0

0

- (Note 6)- (Note 6)0079,742

111,406

341,516

323,469

24,44350,858

11,904

12,36084,68071,473- (Note 6)- (Note 6)

31,66230,039Other Rev enues (Note 3)(2) Property-related Expenses (thousand yen)
Administrativ e Expenses

13,041

54,95573,16871,641

6,184

5,729

3,244

3,622

13,006

12,290- (Note 6)- (Note 6)

5,977

5,286

Utility Charges

30,61422,751130,113

124,667

7,292

6,154

2,972

3,148

20,485

17,230- (Note 6)- (Note 6)

11,182

10,575

Property Management Fee

4,862

4,073

10,666

10,704

1,200

1,200

1,200

1,200

2,379

2,376

- (Note 6)- (Note 6)

1,754

1,737

Tax and Public Due

28,551

28,550103,439

103,435

9,263

9,263

4,220

4,220

37,451

37,612- (Note 6)- (Note 6)

11,672

11,667

Non-life Insurance Costs
Repair Expenses

320

330

1,546

1,596

112

116

57

59

272

280

- (Note 6)- (Note 6)

181

187

2,353

745

22,583

11,303390

28,394209

110

11,084

1,490- (Note 6)- (Note 6)

844

586

0

0

0

120

0

0

0

0

0

193

- (Note 6)- (Note 6)500(3) NOI (=(1)-(2)) (Note 4) (thousand yen)343,674

285,755

726,695

746,142

58,98232,43535,15735,130253,586

266,946

137,170

156,045

143,295

143,682

Annualized NOI (thousand yen)

685,471573,081

1,449,419

1,496,384

117,64265,04870,12370,454

505,787535,360

273,590

312,948285,807

288,154

4.3%

3.6%

5.2%

5.4%

4.0%

2.2%

4.1%

4.1%

3.6%

3.8%

3.3%

3.7%

4.5%

4.6%

33,11033,193

129,311130,891

10,310

10,310

5,026

4,806

19,39921,167- (Note 6)- (Note 6)

25,14825,174

0

0

903

558

0

0

0

0

0

0

- (Note 6)- (Note 6)

0

0

0

0

206

0

0

0

0

0

0

0

- (Note 6)- (Note 6)00

Other Expenses(Reference)

NOI Yield(Note 5)

Depreciation and amortization (thousand yen)Repair Work (thousand yen)
Proceeds from Amortization of Leasehold andSecurity (thousand yen)

(Note 1) Sompo Risk Care Management Inc. has prepared the PML for the 27th fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2019).
(Note 2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(Note 3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(Note 4) (3) NOI in this table is calculated by adjusting the Tax and Public Due for the “NOI (after deduction of gain on sale)”aforementioned in the Appendix “Major Financial Data” so the figures do not match.
(Note 5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(Note 6) Not disclosed due to tenant's request.

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

60

Portfolio Performance Summary (7)Fiscal Period ended May 2019 (27th FP Results by Property)
Daiwa Daikanyama

Daiwa Kanda Mikuracho
Building

Shinjuku W est Building

Prime Kanda
Building (Note 7)

Daiwa Kanda East

Sasazuka NA Building

Sasazuka South Building

Property Name

Acquisition Price (million yen)

2,280
26th FP

942
27th FP

26th FP

1,592
27th FP

26th FP

4,200
27th FP

26th FP

2,295
27th FP

26th FP

15,50027th FP

26th FP

3,000

27th FP

26th FP

27th FPBook Value (million yen)

2,377

2,380

980

979

1,597

1,592

4,303

4,285

2,381

2,377

16,07916,072-

3,110

Appraisal Value (million yen)

3,370

3,510

1,210

1,210

1,740

1,770

5,340

5,470

2,710

2,760

16,100

16,100-3,340

Occupancy Rate (% )

100.0

100.0

99.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

-

96.0

6.21

6.21

8.28

8.28

6.01

6.01

3.86

3.86

5.12

5.12

1.52

1.52

-

5.90

PML (% )(Note 1)

Property Management Company

Profits from property-related activities(Note 2)

Number of operating days

ITOCHU Urban Community

Xymax AlphaBest Property

ITOCHU Urban Community

MS Building Support

Jones Lang LaSalleBest Property

183

182

183

182

183

182

183

182

177

182

32

182

-

156

(1) Property-related Rev enues (thousand yen)

- (Note 6)- (Note 6)

38,45438,316

49,69550,754

127,965

138,966

48,804

63,98173,721

467,293-

77,109Rent (incl. common serv ice fees)- (Note 6)- (Note 6)

38,45438,316

49,69550,754

127,965

138,966

48,804

63,98173,675464,516-

77,109Other Rev enues (Note 3)- (Note 6)- (Note 6)

0

0

0

0

0

0

0

0

46

2,776

-

0

- (Note 6)- (Note 6)

17,9799,614

24,681

11,01837,01922,857

9,673

11,247

7,922

123,113-

15,000(2) Property-related Expenses (thousand yen)
Administrativ e Expenses- (Note 6)- (Note 6)

2,562

2,303

3,481

3,131

11,652

9,583

4,891

5,460

6,324

45,020-5,576

Utility Charges- (Note 6)- (Note 6)

2,865

2,685

2,802

2,796

9,910

10,009

2,801

4,347

0

67,552

-

7,924
1,122

Property Management Fee- (Note 6)- (Note 6)

1,200

1,200

1,200

1,200

1,300

1,389

1,160

1,200

743

4,207

-

Tax and Public Due- (Note 6)- (Note 6)

3,126

3,113

3,496

3,496

92

134

70

41

0

9

-

17

Non-life Insurance Costs- (Note 6)- (Note 6)

37

38

48

51

131

136

49

64

127

724

-

114
245

Repair Expenses- (Note 6)- (Note 6)

8,188

261

13,651343

13,932

1,603

693

132

726

5,600

-

Other Expenses- (Note 6)- (Note 6)

0

12

0

0

0

0

7

0

0

0

-

0

(3) NOI (=(1)-(2)) (Note 4) (thousand yen)

49,757-33,187

20,47428,70125,01439,73590,945

116,109

39,13052,73365,798344,179-

62,108Annualized NOI (thousand yen)

99,242-66,557

40,83757,56149,892

79,690181,394

232,856

80,692

105,757

750,518

690,250-

145,318

4.2%

-2.8%

4.2%

5.9%

3.1%

5.0%

4.2%

5.4%

3.4%

4.4%

4.7%

4.3%

-

4.7%

Depreciation and amortization (thousand yen)

- (Note 6)- (Note 6)

2,220

2,259

5,008

4,959

18,02018,396

4,886

6,511

19,59359,903-9,656

Repair Work (thousand yen)

- (Note 6)- (Note 6)

0

0

0

0

0

0

0

0

0

0

-

0

- (Note 6)- (Note 6)

0

0

0

0

0

0

0

0

0

0

-

0

(Reference)

NOI Yield(Note 5)

Proceeds from Amortization of Leasehold andSecurity (thousand yen)

(Note 1) Sompo Risk Care Management Inc. has prepared the PML for the 27th fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2019).
(Note 2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(Note 3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(Note 4) (3) NOI in this table is calculated by adjusting the Tax and Public Due for the “NOI (after deduction of gain on sale)”aforementioned in the Appendix “Major Financial Data” so the figures do not match.
(Note 5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(Note 6) Not disclosed due to tenant's request.
(Note 7) Acquisition made in two batches in 26th FP. The book value of Prime Kanda Building in (3) NOI Yield for 26th FP on the table is the weighted average of book value at the end of October 2018 and book value at the end of fiscal period.

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

61

Portfolio Performance Summary (8)Fiscal Period ended May 2019 (27th FP Results by Property)
Glass City Harumi

Daiwa Higashi-Ikebukuro

Daiwa Osaki 3-chome

Daiwa Shinagawa North

Daiwa Kamiooka

Integral Tower

Daiwa Meguro Square

Property Name

Acquisition Price (million yen)

11,20026th FP

2,958

27th FP

26th FP

7,710
27th FP

26th FP

1,650
27th FP

26th FP

2,000
27th FP

26th FP

15,22027th FP

26th FP

5,600

27th FP

26th FP

27th FPBook Value (million yen)-

11,281

2,644

2,633

7,143

7,116

1,594

1,584

1,893

1,875

15,832

15,738

5,516

5,494

Appraisal Value (million yen)-

12,000

4,070

4,250

6,180

6,210

2,350

2,480

2,830

2,840

21,50022,000

6,820

6,910

Occupancy Rate (% )

-

47.3

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

99.6

100.0

100.0

-

4.30

3.55

3.55

7.19

7.19

6.14

6.14

6.29

6.29

1.18

1.18

1.68

1.68

PML (% )(Note 1)Best Property

Profits from property-related activities(Note 2)

Property Management Company

Best Property

Best Property

Xymax Alpha

Xymax Alpha

Xymax Alpha

Xymax Alpha

Number of operating days

-

94

183

182

183

182

183

182

183

182

183

182

183

182

(1) Property-related Rev enues (thousand yen)-

72,935

131,744

122,856

199,637

196,306

65,72965,496

93,196

93,212644,854659,394

158,434

162,712

Rent (incl. common serv ice fees)-

72,935

131,744

122,856

199,637

196,306

65,72965,496

93,196

93,212644,854659,394

158,434

162,712

Other Rev enues (Note 3)

-

0

0

0

0

0

0

0

0

0

0

0

0

0

-

87,25835,18382,48354,63452,494

11,496

11,40525,07421,096

197,128

183,162

34,17633,749Administrativ e Expenses-

80,9598,697

10,27814,425

12,443

2,329

2,527

4,354

4,065

55,79045,854

7,392

7,710

Utility Charges

-

5,399

14,36013,535

16,77815,284

3,480

3,351

8,590

8,319

81,652

77,370

9,492

8,810

Property Management Fee

-

614

1,982

1,773

2,986

2,959

1,200

1,200

1,213

1,212

7,163

7,274

2,103

2,006

Tax and Public Due

-

74

8,567

8,567

18,981

18,885

4,006

4,006

6,435

6,414

44,95245,204

13,882

13,836(2) Property-related Expenses (thousand yen)

Non-life Insurance Costs

-

210

191

197

295

304

60

65

103

110

756

779

150

154

Repair Expenses

-

0

1,382

48,130

1,167

2,427

420

254

4,376

973

6,633

6,050

1,155

1,230

Other Expenses

-

0

0

0

0

190

0

0

0

0

180

630

0

0

(3) NOI (=(1)-(2)) (Note 4) (thousand yen)-

-14,323

96,56140,373145,002

143,81254,23354,091

68,121

72,115447,725476,232

124,257

128,962

Annualized NOI (thousand yen)

258,634(Reference)

NOI Yield--55,617

192,595

80,968289,212288,415

108,170

108,479

135,871

144,627

893,005

955,081247,836(Note 5)

-

-0.5%

7.3%

3.1%

4.0%

4.1%

6.8%

6.8%

7.2%

7.7%

5.6%

6.1%

4.5%

4.7%

Depreciation and amortization (thousand yen)-

23,051

24,03924,45135,78935,982

11,41911,42818,06518,06599,26699,921

22,93323,174

Repair Work (thousand yen)

-

0

0

0

0

0

0

0

0

0

0

0

0

0

-

0

0

0

0

0

0

0

0

0

0

0

0

0

Proceeds from Amortization of Leasehold andSecurity (thousand yen)

(Note 1) Sompo Risk Care Management Inc. has prepared the PML for the 27th fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2019).
(Note 2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(Note 3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(Note 4) (3) NOI in this table is calculated by adjusting the Tax and Public Due for the “NOI (after deduction of gain on sale)”aforementioned in the Appendix “Major Financial Data” so the figures do not match.
(Note 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 Act or any regulation of similar nature, nor is it
intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

62

Portfolio Performance Summary (9)Fiscal Period ended May 2019 (27th FP Results by Property)
CONCURRED
Yokohama

Daiwa Ogikubo

Kita-Shinagawa
Gotenyama Building

Daiwa Kitahama

Total (Note 6)

Property Name

Acquisition Price (million yen)

3,800
26th FP38,10027th FP

26th FP

2,500

27th FP

26th FP

9,481
27th FP

26th FP

27th FP459,736

460,076

26th FP

27th FPBook Value (million yen)

3,989

3,983

38,217

38,136

2,588

2,583

9,224

9,173

453,459

453,059

Appraisal Value (million yen)

4,610

4,610

39,90039,900

2,630

2,650

11,70011,700537,030

548,130

Occupancy Rate (% )

100.0

100.0

99.3

98.7

58.6

100.0

100.0

86.9

98.9

97.1

PML (% ) (Note 1)

6.41

6.41

0.92

0.92

7.07

7.07

3.48

3.48

1.95

1.95

Property Management Company

Profits from property-related activities(Note 2)

Number of operating days

ITOCHU Urban Community

Jones Lang LaSalleBest Property

Japan Property Solutions

183

182

183

182

79

182

183

182

183

182

(1) Property-related Rev enues (thousand yen)

127,346

127,276

942,799

990,724

21,55061,048358,318

342,683

13,193,848

13,690,644

Rent (incl. common serv ice fees)

127,346

127,276

942,799

989,706

21,55061,048358,318

342,683

13,164,114

13,628,608

0

0

0

1,018

0

0

0

0

29,73362,03555,89826,496

175,760

174,923

3,749

15,994

96,331

95,4793,597,574

3,663,258

Other Rev enues (Note 3)(2) Property-related Expenses (thousand yen)
Administrativ e Expenses

7,955

8,126

72,38249,497

1,799

7,676

19,97720,026

779,934

909,659

Utility Charges

6,767

6,344

90,43586,448

1,025

3,898

35,77233,586

1,093,880

1,099,123

Property Management Fee

1,404

1,401

5,647

5,983

541

1,200

5,415

5,038

148,272

153,175

Tax and Public Due

8,089

8,089

7

28,7276

1733,833

33,833

1,041,948

1,041,049

Non-life Insurance Costs
Repair Expenses

128

132

771

767

34

81

502

519

14,085

15,28931,552

2,402

6,394

2,613

342

2,969

734

2,178

472,933

395,024

0

0

120

885

0

150

96

296

46,51949,936(3) NOI (=(1)-(2)) (Note 4) (thousand yen)

71,448100,780

767,038

815,801

17,80045,053261,987

247,204

9,596,274

10,027,386

Annualized NOI (thousand yen)

142,507

202,113

1,529,886

1,636,085

82,24390,355522,542495,767

19,808,775

19,944,182

3.6%

5.1%

4.0%

4.3%

3.2%

3.5%

5.7%

5.4%

4.4%

4.4%

12,60313,006112,466

113,314

2,821

5,673

54,04354,1481,734,275

1,813,035

0

0

0

0

0

0

0

0

1,096

15,893

0

0

0

0

0

0

0

0

206

0

Other Expenses(Reference)

NOI Yield(Note 5)

Depreciation and amortization (thousand yen)Repair Work (thousand yen)
Proceeds from Amortization of Leasehold andSecurity (thousand yen)

(Note 1) Sompo Risk Care Management Inc. has prepared the PML for the 27th fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2019).
(Note 2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(Note 3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(Note 4) (3) NOI in this table is calculated by adjusting the Tax and Public Due for the “NOI (after deduction of gain on sale)”aforementioned in the Appendix “Major Financial Data” so the figures do not match.
(Note 5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(Note 6) Annualized NOI and NOI yield of Prime Kanda Building for the 26th FP are calculated based on the weighted average of book value at the end of October 2018 and book value at the end of fiscal period. Annualized NOI and NOI yield for the
27th FP do not include Daiwa Onarimon Building which was sold in the 27th FP. The portfolio total of (2) Property-related Expenses in the table does not include expenses related to the Investment Corporation.

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

63

Overview of Asset Management Company (1)Company Overview

Directors(As of July 1, 2019)(As of July 1, 2019)
Company Name

Daiwa Real Estate Asset Management Co., Ltd.

Address

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

Established

October 21, 2004

Paid-in Capital

200 million yen

Representative Director

Toshio Fukushima
Executive directors: 5
Executive auditors: 1
Non-executive directors: 1
Non-executive auditors: 2

Board of Directors

9No. of Employees

110 (excluding dispatched employees)

Registered Financial
Instruments Firm

Registration No. 355 (Financial Instruments),
Director-General, Kanto Local Finance Bureau(Kinsho)

Building Lots and Buildings
Transaction Business License

License No. (3)-83920, Governor of Tokyo

Discretionary Agent for Real
Estate Transaction Approval

License No. 34, Minister of Land, Infrastructure,
Transport and Tourism

Association Membership

Member of The Investment Trusts Association,
Japan
Member of Japan Investment Advisers
Association
Member of Type II Financial Instruments Firms
Association

Chairman of the Board

Akira Yamanouchi

President and Representative Director

Toshio Fukushima

Vice President and Representative Director

Yuji Shinotsuka

Vice President and Representative Director

Yoshiki Nishigaki

Director

Hajime Imbe

Director (non-executive)

Keiichi Ishikawa

AuditorTamaki Shibayama

Auditor (non-executive)

Sachiko Hanaoka

Auditor (non-executive)

Shinji Kiso

REITs which Entrust Asset Management
to the Asset Management Company(As of July 1, 2019)
Daiwa Office
Investment
Corporation

Listed REIT focusing on office buildings
Asset size: approximately 461.0 billion yen (59 properties)

Japan Rental
Housing
Investments Inc.

Listed REIT focusing on residential properties
Asset size: approximately 220.8 billion yen (188 properties)

Daiwa Residential
Private Investment
Corporation

Private REIT focusing on residential properties
Asset size: approximately 121.8 billion yen (81 properties)

Nippon Healthcare
Investment
Corporation

Japan’s first listed REIT focusing on healthcare facilities
Asset size: approximately 19.7 billion yen (23 properties)

Daiwa Hotel Private
Investment
Corporation

Private REIT focusing on hotels
Asset size: approximately 29.8 billion yen (7 properties)

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

64

Overview of Asset Management Company (2)Organization Chart

Shareholders’ Meeting
Corporate Auditors
Board of Directors
Compliance Committee
Compliance Officer
Investment Committee ** Set up separately for each
investment corporation

President andRepresentative Director
Internal Control OfficeAcquisition and AssetManagement Division

Acquisition
Department

Origination
Department

DOI Asset
Management
Department

JRH
Asset Management
Department

Private Fund Division

Asset Management
Department

Investment Planning
Department

Construction
Management
Department

Private FundManagement
Department

REIT Corporation
Planning
Department

Corporate Division

Finance
Department

Administration
Department

DOI Investment
Team

AM Team

DRP Management
Team

Finance Team

JRH Investment
Team

Portfolio System
Team

NHI Management
Team

Accounting TeamDHP Management
Team

Management TeamDRP Investment
Team

Corporate Planning
Department

Compliance & Risk
Management
Department

NHI InvestmentTeam
DHP Investment
Team(As of July 1, 2019)
This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it
intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

65

MEMO

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

66