As of August 10, 2016

Daiwa Office Investment Corporation
Earnings Announcement for the 21st Fiscal Period(Fiscal Period ended May 2016)

Contents
Section 1

Section 4

Highlights of Public Offering in August 2016

External Growth

Summary of Public Offering in August 2016・・・・・・・・5
Changes in Major Indices due to Public Offering・・・・6

Replacement of Portfolio for Fiscal Period Ended May 2016 and Fiscal
Period Ending November 2016 ・ ・・・・・・・・・・・・・・・・・・・・・・・・・・ 25

Changes in Rent Revenue ・・・・・・・・・・・・・・・・・・・・・・ 7

Properties Acquired in the Fiscal Period ended May 2016 (21st FP) ・ 26

Changes in Dividends ・・・・・・・・・・・・・・・・・・・・・・・・・・ 8

Properties Acquired in the Fiscal Period ending Nov 2016 (22nd FP) ・ 27
Changes in Asset Size and Trading Performance ・・・・・・・ 29

Section 2
Fiscal Period ended May 2016 (21st Fiscal Period)
Performance Highlights and Forecasts
Highlights of the Fiscal Period ended May 2016 (21st FP)
・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・11
Highlights of Forecasts for the Fiscal Periods ending Nov
2016 and May 2017 (22nd and 23rd FP) ・・・・・・・・ 12

Properties Acquired after Sponsor Change ・・・・・・・・・・・・・ 30
Acquisition/Sale Policy and Status of Deliberation
for Property Acquisitions ・ ・・・・・・・・・・・ ・・・・・・・・・・・・・・・ 31

Section 5

Financial Strategy
Status of Interest-bearing Liabilities ・・・・・・・・・・・・・・・・・・

Section 3

33

Unitholders as of the End of the May 2016 (21st) Fiscal Period ・・・・ 36

Internal Growth
Leasing Market of Tokyo Office Buildings ・・・・・・・・ 14

Environmental Efforts ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

37

Activities in the Fiscal Period ending Nov 2016 (22nd FP) ・・・・・・・

38

Analyses of Leasing Income ・・・・・・・・・・・・・・・・・・・ 15
Portfolio Map: Increase and Decrease in Unit
Contract Rent Compared with Previous Fiscal Period・ 19

Appendix

Performance of Shinjuku Maynds Tower & E SPACE TOWER・・・・20

Internal Growth Strategies ・・・・・・・・・・・・・・・・・・・・・ 21
Measures to Increase Portfolio Value ・・・・・・・・・・・・22
Properties Subject to Leasing Improvement・・・・・・・23
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises 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 ofoffering 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 new
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 governingcompanies listed on the Tokyo Stock Exchange, or any other applicable rules, nor is it a disclosure
document or statement of financial performance prepared in accordance with the provisions of anyof the foregoing.
This document contains forward-looking statements. However, these forward-looking statements
are based on certain assumptions and judgments made using currently available information, andthere are a number of known and unknown risks and uncertainties. These forward-looking
statements are not a guarantee of future performance or management results 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 Law 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 21st Fiscal Period ended May 2016
█ Domestic capital increase through public offering conducted in August 2016
Offering following the previous year and the year before the previous year, Offering investment units: 12,700 units (public
offering), 1,300 units (third-part allotment, upper limit), Issue price: 607,425 yen, Issue value: 587,489 yen, Total issue
price: 7,461,110,300 yen (public offering), 763,735,700 yen (third-party allotment, upper limit), Total: 8,224,846,000 yenProperties subjected to capital increase：Heiwa Higashi-nihonbashi Building, Square Daikanyama Building, Shinjuku West
Building, Ogikubo TM Building, Total acquisition price: 13,392 million yen█ Results of continuous internal growth

Average Contract Rent at the end of May 2016 (Note 1): 19,105 yen (% and amount of change from the end of November
2015: +367yen, +2.0%)<Average Contract Rent of the existing 48 properties (Note 2) at the end of May 2016: 19,132 yen (Note 1) (% and amountof change from the end of November 2015: +193 yen, +1.0%)>Occupancy Rate at end of the 21st FP: 98.7% (21st FP Expected Occupancy Rate estimated in January 2016: 98.3%)(Occupancy Rate at the end of the 20th FP: 98.3%)█ Property Acquisition

Acquired 2 properties during the 21st FPNikko Building (Acquisition date: March 29, 2016; Acquisition price: 13,710 million yen)Kirin Nihonbashi Building (Acquisition date: May 26, 2016; Acquisition price: 8,180 million yen)

█ Financial Situation
LTV (based on total assets): 43.3% (end of 20th FP: 41.7%)



Average remaining debt years at the end of the Fiscal Period: 4.5 years (end of 20th FP: 4.6 years)

Ratio of fixed interest: 70.8% (end of 20th FP: 76.2%)
Note 1: Average contract rent is, as a rule, calculated after excluding all non-office uses such as retail, residence and warehouse.
Note 2: Excluding properties acquired/sold in 21st FP

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

3Section 1
Highlights of Public Offeringin August 2016

Summary of Public Offering in August 2016
Summary of Public Offering
Issuance type

Domestic Public Offering

Inssuance
resolution dateJuly 15, 2016

Price
determination dateJuly 26, 2016

Application period

July 27, 2016 - July 28, 2016

Payment datePrimary offering: August 2, 2016
Third-party allocation: August 31, 2016 (scheduled)

Number of units issued
and outstanding before

484,000 units

Properties Acquired Upon Capital Increase through Public Offering< Heiwa Higashinihonbashi Building >Acquisition price:
6,370 million yen(Acquisition date:June 1, 2016)

public offering

Number of units
offeredTotal: 14,000 units, Primary offering: 12,700 units, Thirdparty allotment: 1,300 units(maximum)(Yen)
650,000

498,000 units (maximum)

public offering

Issue price607,425 yen

600,000
550,000

8,224 million yen (including third-party
allotment of 1,300 units (maximum))(units)
18,00014,000Issuance
resolution
date

Price
determinationdate

12,00010,0008,000
6,000

587,489 yen
450,000

Total paid-in
amountTrading volume (right axis)
Investment unit price (left axis)
TSE REIT Index (left axis)

16,000500,000

Paid-in price< Ogikubo TM Building >Acquisition price: 3,800
million yen(Acquisition date: July 21,
2016)

Changes in Investment Unit Price (daily)

Number of units issued
and outstanding after< Square Daikanyama< Shinjuku West Building >Building >Acquisition price: 942
Acquisition price: 2,280
million yen
million yen(Acquisition date: July 21,(Acquisition date: June
2016)29, 2016)

4,000
2,000

400,000

0(*) TSE REIT Index is calculated using the index on July 8, 2016 as theclosing price of the Investment Corporation’s investment unit price(603,000 yen).

5Changes in Major Indices due to Public Offering
Major IndicesEnd of the 20th FP(Ended November
2015)

Properties
Acquired in 21st FP

Properties Sold in
21st FP

Number of
Properties

50 properties

2 properties(Total of acquisition prices)445,777 million

NOI Yield(Annualized)

End of the 21st FP(Ended May 2016)

Properties
Acquired in 22nd
FP

Properties Sold in
22nd FP

2 properties

50 properties

4 properties

1 property

53 properties

21,890 million

9,310 million

458,357 million

13,392 million

4,000 million

467,749 million

3.84%

4.15%

3.23%

3.91%

4.54%

3.77%

3.93%

of Tokyo (base on acquisition prices)87.7%

100.0%

48.3%

89.1%

71.6%

100.0%

88.5%

NAV per Unit

545,661 yen--

569,585 yen--

572,682 yen

Occupancy Rate

98.3%

99.6%

96.6%

98.7%

100.0%

100.0%

98.7%

ＬＴＶ

41.7%

-

-

43.3%

-

-

42.3%

Total Assets

Ratio of properties in the Five Central Wards

Distribution perunit forecast

Fiscal period ended
May 2016

Before Public Offering

After Public Offering

Deduction of gain on
sales

Gain on sales

Total

10,335 yen

173 yen

10,508 yen

Fiscal period ending
November 2016
Fiscal period ending
May 2017

After Public
Offering

Up 2.2%

Deduction of gainon salesGain on sales

Total

10,350 yen

200 yen

10,550 yen

10,560 yen

0 yen

10,560 yen(Note 1) NOI yield for properties acquired/to be acquired in the 21st FP and the 22nd FP is obtained using appraisal NOI at the time of acquisition.
(Note 2) NAV per unit = (Unitholder’s capital + Total appraisal value at the end of the period - Total book value at the end of the period) / Number of investment units issued.
(Note 3) Figures for after the public offering are calculated based on actual figures at the end of the fiscal period ended May 2016. Building age is as of July 31, 2016. LTV is calculated using the following formula.
(Interest-bearing liabilities at the end of the fiscal period ended May 2016+ Interest-bearing liabilities financed between June 1, 2016 and July 15, 2016 - Interest-bearing liabilities to be repaid as scheduled on August 31, 2016 + Interestbearing liabilities for the loans to be taken out on August 31, 2016 - Loans planned to be repaid with part of proceeds from the public offering, etc. and cash on hand) / (Total assets at the end of the fiscal period ended May 2016 +Interest-bearing liabilities financed between June 1, 2016 and July 15, 2016 - Interest-bearing liabilities to be repaid as scheduled on August 31, 2016 + Interest-bearing liabilities for the loans to be taken out on August 31, 2016 + Total
unitholders’ capital from the public offering, etc. - Loans planned to be repaid with part of proceeds from the public offering, etc. and cash on hand)

6

Changes in Rent Revenue
Changes in increase/decrease of period-on-period rents andcommon area fees (external growth/internal growth)(Million
Yen)(百万円)
11,000外部成長（取得・売却物件翌期純増分）■ External
growth (contribution by properties acquired/disposed excliding the during-the-period
contribution in the previous FP)
外部成長（取得・売却物件期中寄与分）■ External growth (during-the-period contribution by properties acquired/disposed)■ Internal
growth (increase/decrease of rents of existing properties)
内部成長（既存物件賃料増減）

115
154

27

267

10,000

839
9,000

282
176
148
215
349

8,000

511

261
77
7,000

6
‐55

347
29

64

190

278
‐70

6,000

5,000
0

15th
FP
'13/5期

16th FP'13/11期

17th
FP'14/5期

18th FP'14/11期

19th
FP'15/5期

20th FP'15/11期

21stFP'16/5期(Note) External growth (full contribution by properties acquired/disposed) indicates the full contribution to the revenue of current fiscal period by the change inrents and common area fees of properties acquired or disposed in the previous fiscal period
External growth (During-the-period contribution by properties acquired / disposed) indicates the full contribution to the revenue of current fiscal periodby the change in rents and common area fees of properties acquired or disposed in the current fiscal period.
Internal growth (increase/decrease of rents of existing properties) indicates the period-on-period change in rents and common area fees of existing
properties.

7Changes in Dividends
Changes in Dividends per Unit (Forecast/Actual)(Yen)
14,000(Yen)
600,000

569,585545,661
506,681

12,000449,764
422,993
10,000428,435

419,285

421,941

417,390416,844

7,400
6,009
8,000

6,000

4,000

2,000

9,900
478,051
10,550459,8939,000 9,850
467,984
8,328 9,350 10,508
445,466
7,570 8,700 9,688
6,550 7,300 7,820 9,142
9,750

7,200 7,540
5,500
7,621
5,350 6,250 7,478

6,847
4,154
3,903
5,246

10,560300,000

200,000

3,180 4,100 5,107
2,843 3,280 4,464
3,176
3,671
3,240

100,000

8thFP
FP 9th
9th FP
23rd FPFP
8th
FP 10th
10thFPFP 11th
11thFPFP 12th
12thFPFP 13th
13thFPFP 14th
14thFPFP 15th
15thFPFP 16th
16thFPFP 17th
17thFPFP 18th
18thFPFP 19th
19thFPFP 20th
20thFPFP 21st
21stFPFP 22nd
22nd FPFP 23rd

Forecast from six months earlier (left axis)

400,000

8,256

4,850 5,500 6,542
3,600 4,850 5,986

Forecast from a year earlier (left axis)

500,000

Actual dividends (left axis)0

NAV per unit (right axis)

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

8Section 2
Fiscal Period ended May 2016
(21st Fiscal Period)
Performance Highlights and Forecasts

Memorandum

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

Highlights of the Fiscal Period ended May 2016 (21st FP)█ Results of the 21st Fiscal Period(Million Yen)

20th Fiscal Period(ended Nov. 2015)

21st Fiscal Period(ended May 2016)

Operating Revenue

11,837

12,363+ 525

Operating Expense

6,223

6,255

+ 31

Operation Income

5,614

6,108

+ 493

938

787

- 151

Ordinary Income

4,689

5,326

+ 637

Net Income

4,688

5,250

+ 561

Dividend per Unit*

9,688 yen

10,508 yen+ 820 yen

NAV per Unit**

545,661 yen

569,585 yen+ 23,924 yen

Period End Occupancy Rate

98.3%

98.7%

+ 0.4%

Period Average Occupancy
Rate***

96.8%

98.2%

+ 1.4%NOI Yield (annualized)****

3.9%

Non-Operating Expense

4.0%

Difference

Decrease factors:
Investment unit issuance cost

+ 0.1%*

Distribution per unit for the 21st fiscal period is calculated by dividing the amount obtained by subtracting provision for reserve for reduction
entry (164 million yen) from unappropriated retained earnings by the total number of investment units issued and outstanding.
** 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.
*** Period average occupancy rate is calculated based on occupancies at the end of months during each fiscal period.
**** NOI Yield (annualized) calculated based on book value. NOI annualizes properties at the end of the period and does not include
properties sold during the period.
(Million Yen)

21st Fiscal Period(announced Jan.
2016)

21st Fiscal Period(ended May 2016)

Operating Revenue

11,922

12,363+ 441

Operating Expense

6,354

6,255

- 99

Net Income

4,767

5,250

+ 482

9,850 yen

10,508 yen+ 658 yen

(Reference)
Comparison of forecasts withresults of 21st Fiscal Period

Dividend per Unit
Occupancy Rate

98.3%

98.7%

Increase factors:
Gain on 2 properties sold during the fiscal period (net)(+323 million)*****Revenue (rents and common area fees) from 45 existing
Properties(+154 million)
Full contribution of revenue (rents and common area fees)from 3 properties acquired in the previous period(+115 million)
Revenue (rents and common area fees) from 2 properties
acquired during the period(+ 85 million)
Decrease factors:
Utilities revenue(- 136 million)
Revenue (rents and common area fees) from 2 properties sold during the fiscal
period(- 57 million)
Increase factors:
Repair cost(+ 82 million)
Asset management fees(+ 26 million)
Tax and public due(+ 24 million)
Decrease factors:
Utilities revenue(- 107 million)
Outsourcing expense(- 20 million)

Difference+ 0.4%(- 160 million)***** 45 existing properties are properties held (50 properties) as of the end of the
21st Fiscal Period (ended May 2016) less the 3 properties acquired during the20th Fiscal Period (ended November 2015) and 2 properties acquired during
the 21st Fiscal Period.

Increase factors:
Gain on 2 properties sold during the fiscal period (net)(+323 million)
Revenue (rents and common area fees) from 2 properties
acquired during the period(+ 85 million)*****Revenue (rents and common area fees) from 48 existing properties(+ 63 million)
Decrease factors:
Revenue (rents and common area fees) from 2 properties sold during the fiscal
period(- 65 million)
Increase factors:
Tax and public due
Decrease factors:
Utilities revenue(+ 29 million)(- 119 million)******48 existing properties are the 50 properties as of the end of the 21st Fiscal
Period (ended May 2016) less the 2 properties acquired during the 21st
Fiscal Period

11Highlights of Forecasts for the Fiscal Periods ending Nov 2016
and May 2017 (22nd and 23rd FP)█ The 22nd Fiscal Period(Forecast)(Million Yen)

22nd FP Forecast
Ending Nov. 2016

Difference from21st FP

Operating Revenue

12,775+ 412

Operating Expense

6,674

+ 419

Operation Income

6,101

-6

845

+ 58

Non-Operating Expense

Increase factors:
Full contribution of revenue (rents and common area fees)from 2 properties acquired in the previous period
Revenue (rents and common area fees) from 4 properties
acquired during the period
Utilities revenue
Gain on 1 property sold during the fiscal period***Revenue (rents and common area fees) from 47 existing
Properties
Decrease factors:
Gain on 2 properties sold during the fiscal period (net)

5,254

+3

Dividend per Unit

10,550 yen+ 42 yenOccupancy Rate

97.5%

- 1.2%

Expected Period Average
Occupancy Rate*

97.4%- 0.8%

Expected NOI Yield (annualized)**3.9%- 0.1%█ The 23rd Fiscal Period(Forecast)

Increase factors:
Tax and public due
Utilities revenue
Asset management fees
Repair cost
Depreciation(+134 million)(+135 million)(+ 43 million)(+ 31 million)(+ 25 million)

Increase factors:
Investment unit issuance cost(+ 32 million)

Increase factors:
23rd FP Forecast
Ending May 2017

Full contribution of revenue (rents and common area fees) from 4 properties acquired in the previous
fiscal period(+ 47 million)

Difference from22nd FP

12,454- 321

Decrease factors:
Utilities revenue
Gain on 1 property sold during the fiscal period

Operating Expense

6,385

- 288

****Revenue (rents and common area fees) from 49 existing properties

Operation Income

6,068

- 32

807

- 37

5,258

+4

Increase factors:
Depreciation
Decrease factors:
Repair cost
Utilities revenue
Tax and public due

Dividend per Unit

10,560 yen+ 10 yenOccupancy Rate

97.3%

- 0.2%

Expected Period Average
Occupancy Rate*

96.3%- 1.1%

Expected NOI Yield (annualized)**4.0%+ 0.1%Net Income(+ 93 million)

Revenue (rents and common area fees) from 1 property sold during the fiscal period

Operating Revenue

Non-Operating Expense(+299 million)(+153 million)(+ 99 million)(- 323 million)(- 143 million)(- 70 million)

Revenue (rents and common area fees) from 2 properties sold in the previous period

Net Income(+369 million)

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

Increase factors:
Investment unit issuance cost(- 144 million)(- 99 million)(- 92 million)(- 18 million)(+ 24 million)(- 174 million)(- 83 million)(- 17 million)(- 32 million)* Period average occupancy rate is calculated based on occupancies at the end of months during each fiscal period.
** Expected NOI Yield (annualized) is calculated based on the book value for the 21st Fiscal Period for existing properties, and isbased on the acquisition price for newly acquired properties*** 47 existing properties are the 50 properties as of the end of the 21st Fiscal Period (ended May 2016) less the 2 properties
acquired during the 21st Fiscal Period and 1 property sold during the 22nd Fiscal Period.
**** 49 existing properties are the 53 properties as of the end of the 22nd Fiscal Period (ended November 2016) less the 4
properties acquired during the 22nd Fiscal Period

12Section 3
Internal Growth

Leasing Market of Tokyo Office Buildings
Leasing Market of Tokyo Office Buildings

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

Rent(Yen / Tsubo)(Yen / Tsubo)
24,000(賃料)(Rent)

10.0%
27,00022,0008.0%

20,0006.0%

2008/9(Vacancy Rate)

25,000

Ｂクラスビル
B Class Bldg.

17,965 yen

4.0%

18,0002007/923,000

ＡクラスビルA Class Bldg.

2001/6

2000/1

Rental Market Clockレンタル・マーケット・クロック(conceptual
chart)(イメージ図)

3.67％

2.0%

16,000Existing Building Average Rate (left axis)
Existing Building Vacancy Rate (right axis)

2003/10Rent and vacancy rate of large scalebuildings* of 5 Central Wards of Tokyo

21,0000.0%'16/01'15/01'14/01'13/01'12/01'11/01'10/01'09/01'08/01'07/01'06/01'05/01'04/01'03/01'02/01'01/01

14,00019,000(Data): Miki Shoji(Tsubo)400,000

Predicted
figures9.0%

2012/6

2011/1217,0002016/6
2008/9300,000

7.5%

200,000

6.0%

100,000

4.5%

0

3.0%

(100,000)1.5%

2012/1215,0002000/1

2001/6

2007/92003/10

13,000Floor area of new supplies
Vacancy Rate

Floor area of new demands

'01
'02
'03
'04
'05
'06
'07
'08
'09
'10
'11
'12
'13
'14
'15
'16
'17
'18
'19
'20

(200,000)(Data): CBRE “Office market medium term forecast 2016-2020”

0.0%

Office Buildings**of 5 Central Wardsof Tokyo

2011/122012/6

2016/6
11,000
0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

Vacancy Rate

(Data): Sanko Estate compiled by Daiwa Real Estate Asset Management* Large scale buildings: A floor area of 200 tsubos (661.2m2) or more.
** Office Buildings: Ranging from large scale buildings to small scale buildings (less than 20 tsubo)

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

14Analyses of Leasing Income (1)- Diversification of Tenants and Transition of New Lease and Cancellations Transition of New Leases andCancellations and its Reasons**

Period-end Occupancy Rate

31
17

20

16

18

18
13

24
9

25
12

12

4

-20

0%
-3.4%

-10% -3.9%

23rd FP

22nd FP

21st FP

20th FP

19th FP

18th FP

17th FP

16th FP

15th FP

14th FP

13th FP

12th FP

11th FP

10th FP

9th FP

8th FP-12.0%-14.7%
7th FP-20%-2.3%-2.4%-1.7%-1.6%
-2.8%
-3.9%
-5.7%
-5.3%
-3.4%
-6.3%
-5.9%
-6.1%
-7.3%

New Leases

Cancellations

17th FP

16th FP

15th FP

14th FP

13th FP

12th FP

11th FP

10th FP

9.8%8.2%
6.1% 6.2%
4.3%
5.7%
4.4%
2.3%
3.2% 3.3%
2.0%
1.8%
2.1%

7.2%7.4%
3.9%-53
9th FP

10%

-2

-31

8th FP

-60
13.4%

11

-24

-25 -26

-40

20%

11

-13 -11 -13-15 -13
-20

-24

15
2

-14 -12-20

Expected Rate of New Leases
Rate of New Leases

22

18

-2

Rate of New Leases and Cancellations*
Expected Rate of Cancellations
Rate of Cancellations

43

21st FP

23rd FP

22nd FP

21st FP

20th FP

19th FP

18th FP

17th FP

16th FP

15th FP

14th FP

13th FP

12th FP

11th FP

10th FP

9th FP30

085%
8th FP

33

6

85.7%

7th FP

40

42

20th FP

92.4%

90%

44
38

19th FP

95%(Cases)60

18th FP

100%

Occupancy Rate (Actual)
Expected Occupancy Rate
Expected Occupancy Rate (as of disclosure in Jan. 2016)
98.7%
98.3%
97.2%
97.5%
97.7%
96.4%
96.4%
95.9%
95.4%
98.3%
94.3%
97.3%
96.3%
92.8%
96.5%
97.3%
95.0%

Net New Leases

Previous
numberof leases: 17

21st Period

Cost
Space
Reduction Expansion

New Leases

1

Space
BetterReduction Location

Consolidation

6

Cancellations
4
1** Excluding residence and warehouse tenants.

Other

Total

3

0

1

0

11

4

3

0

1

13

*Transition of rate of new leases and cancellations areas to the total rentable area.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

15

Analyses of Leasing Income (2) - Improvement in Basic Strength The basic strength (profitability accompanied by realization of internal growth) has steadily improved due torenewal of contract and occupancy of new tenants in the Fiscal Period Ended May 2015 (19th Fiscal Period), theFiscal Period Ended November 2015 (20th Fiscal Period) and the Fiscal Period Ended May 2016 (21st Fiscal
Period)Increase in rent revenue due to improved basic strength leads almost directly to an increase in distributable
income.
Monthly Rent Increase Due to Contract Renewal/Occupancy of new tenantsContract Renewal(Please see p.17 for details)

Occupancy of new tenants(Please see p.18 for details)

total

19th FP

5,862 thousand yen/month

3,157 thousand yen/month

9,020 thousand yen/month

20th FP

7,938 thousand yen/month

6,438 thousand yen/month

14,376 thousand yen/month

21st FP

13,479 thousand yen/month

766 thousand yen/month

14,246 thousand yen/month

Increase in Dividend Resource Due to Improved Basic Strength
Percentage of Total Rent Revenue(rents and common area fees)*1

Growth rate of dividend
resource*2

6 months

Annualized

6 months

Annualized

19th FP

0.7%

1.3%

1.5%

3.0%

20th FP

1.0%

2.0%

2.1%

4.3%

21st FP

0.8%

1.7%

1.8%

3.6%

*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.
*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.

16

Analyses of Leasing Income (3)- Changes in Amounts of Rent Increase/Decrease of Contract Renewal Tenants Contract Renewal Area
█ Changes in Rent Increase/Decrease Rate of Contract Renewal Tenants (sections)█ The 21st Fiscal Period Contract Renewal Tenants
Cancellation from Non
Contract Renewal
Area, 1.5%

Non Contract Renewal
Area (Excluding
cancellation), 79.3%

Contract Renewal
Area, 19.1%

0.2%
49.0%
21st FP
37.5%
20th FP
26.5%
19th FP
18th FP 4.8% 8.6%
17th FP 8.5% 7.9%* 14.1%*
16th FP 10.0% 4.6%
14.4% 3.1%
15th FP
18.9%
14th FP
40.6%
13th FP
0%20%
Decrease

20.0%* The ratio of areas for which contract was renewed in the 21st FP (through May 2016) tothe total rentable area (319,855.26㎡) as of end November 2015. Properties sold in thefiscal period ended May 2016 are included in those not subjected to renewal

0.0%-10.0%-20.0%

50.1%
61.1%
70.8%
66.7%

54.6%

40%
Increase

0.7%
1.4% -30.0%
2.7%
19.9%
12.1%
8.2%
12.3%
13.8%
4.0%

57.4%
77.1%
70.3%
67.3%
0.8%
60%

80%

Unchanged

100%

30.0%
25.0%

24.0%
19.1%

10.0%

2.5%

-5.2%

-6.5%

-22.7% -7.0%

18.6%

5.0%

1.0%

-7.0%

-10.2%

15th FP 16th FP

4.3%
-4.9%

19.8%

16.9%

5.0%

9.0%

5.2%

5.2%

9.0%
0.0%

0.0%

7.3%

7.2%

-5.1%

Increase rate
Decrease rate
Rent increase/decrease rate

-22.7%
14th FP

9.8%

17th FP

18th FP

19th FP

20th FP

21st FP* The above indicates rate of increase/decrease in rents against pre-renewal rents for lease
contracts which reached renewed agreements during each FP.
Rent increase/decrease rate is calculated based on netted amount for increased/decreased rents.

█ Status of Upward Rent Revisions(Breakdown of upward revision magnitude for monthly rents in the 21st FP)
15% or more
2％

2% or less7％

2% or more but lessthan 5%14％

10% or more but
less than 15%
14％

Increase rateof monthly
rent 7.3％(Previous FP:
9.0%)█ Contract Renewal Periods (based on rentable area)
Expected renewals

15.0%

0.0%

4.5%

Cancellation* Of the increase in the 17th FP, 14.1% was due to some tenants’ switching from subleaseto master lease agreements and 7.9% was thanks to negotiations with tenants.

20.0%

10.0%

5% or more but lessthan 10%62％

Properties with rent
increase
Daiwa Ginza
Daiwa Ginza Annex
Daiwa Minami-Aoyama
Daiwa A Hamamatsucho
Daiwa Shimbashi 510
Daiwa Azabudai
Daiwa Kyobashi
Shinjuku Maynds Tower
SHIBUYA EDGEE SPACE TOWER, etc.

Increased amount ofmonthly rent
13,507 thousand yen/month* Percentage figures are based on total monthly rent.

0.0%
21st FP

22nd FP

23rd FP

24th FP* The ratio of areas scheduled for contract renewal in each period to the total
rentable area (323,776.16㎡) as of end May 2016.

25th FP

17

Analyses of Leasing Income (4)- Increase/Decrease in Rent Due to New Leases and Cancellations Average Contract Rent and Market Rent
The contract rent of 48 existing properties in the 21st
Fiscal Period was 19,132 yen (period-on-periodchange of 193 yen)

(Yen / Tsubo)

30,00020th FP

21st FP

20th FP

19th FP

0.0%
19th FP

18th FP0

12,000

3.8%

Unit rent index(period-on-period comparison, right axis)**17th FP

2.6%

10,000

Average Contract Rent*

15,00016th FP

7.5%

60

15th FP

9.8%

19,105 70

18,73814th FP

18,000

11.3%

13th FP

29,203 29,970

12th FP

14.0%

17,799 18,674

10th FP

21,00080

9th FP

24,000

100

78.85
90
78.52
79.53
78.06

8th FP

18.8%

Increase/decrease rate (right
axis)

15.0%

35,34532,18830,00020,00027,000

7th FP

40,000

New tenant (left axis)

46,142

22.5%

6th FP

50,000Previous tenant (left axis)

5th FP

52,580

4th FP

60,00011th FP

Monthly Rent Increase/Decrease and Increase/Decrease
Rate Due to Occupancy of new tenants (compared to theprevious tenant for the same leasing area)

50
40* Average contract rent is the average of monthly contract rent from tenants at theend of each period.
** Unit rent index is the earning rates of unit rent of individual properties indexed withthe figure at the end of the 7th FP as 100.

21st FP* Percentage figures are based on total monthly rent.

Attribution Analysis / Monthly Contract Rent*
Properties with rent increase due
to occupancy of new tenants
during 21st fiscal period
Daiwa Shibaura
Daiwa Shimbashi 510
Shinjuku Maynds Tower
Daiwa Nishi-Shimbashi

Daiwa Akasaka
Azabu Green Terrace
River Gate
Daiwa Hatchobori ekimae
West
etc.

(Million Yen)

1,950
1,900
1,850
1,800
1,750

1,803

+13

Decrease by
Rent
Revisions

Increase by
Rent
Revisions

Decrease by
Tenants’Cancellations

+36

-0

Increase by
New Leases

+75

-37
1,863

-26

Decrease by
Transfer
Increase by
New Acquisition

1,700
1,650
1,600

Increased amount of monthly rent
766 thousand yen/month

End of 20th FP
Monthly Contract Rent

End of 21st FP
Monthly Contract Rent

* 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 6/7 of the total.

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

18

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

Comparison with previous Fiscal Period
Increase and decrease of unit contract rent
Unit rent increase： 19 buildings
2 indicates increase for the second consecutive period
3 indicates increase for the third consecutive period
4 indicates increase for the fourth consecutive period
Unit rent decrease ： 4 buildings
2 indicates decrease for the second consecutive period

Greater Tokyo

Daiwa Higashi-Ikebukuro
Integral Tower
Meguro Place Tower
Daiwa Osaki 3-chome

Unit rent maintained ： 24 buildings

2

Daiwa Shinagawa NorthLAQUAS Higashi Shinjuku

Shinjuku Maynds Tower

Daiwa Misakicho
Daiwa Jinbocho 3-chome
2 shinyon curumu

Daiwa Sarugakucho
Daiwa Jimbocho

Daiwa Nihonbashi Hongokucho 2

Daiwa Kamiooka

Daiwa Kodenmacho
Daiwa Nihonbashi Horidomecho

Daiwa Kojimachi 4-chome

Daiwa Kayabacho Build.
River Gate
Daiwa Jingumae Daiwa Akasaka
Kyobashi2
Daiwa Hatchobori ekimae Daiwa
Daiwa
Hatchobori ekimae West
Concept Aoyama
Daiwa Ginza Annex
Daiwa Tsukijiekimae
42
Daiwa Ginza
2
Daiwa Minami Aoyama
Daiwa Tsukiji
SHIBUYA EDGE Daiwa Shibuya Miyamasuzaka
2
Daiwa Nishi-Shimbashi Daiwa Shimbashi 510
2
Daiwa Tsukishima
Daiwa Onarimon
E SPACE TOWER 4
Shinsen Place
Daiwa A Hamamatsucho
2
Daiwa Azabudai
Glass City Shibuya
3
Daiwa Shibadaimon
Daiwa Ebisu 4-chome

Daiwa Shibaura

Azabu Green Terrace

Regional Cities
Daiwa Meieki
2

Kitahama Grand Building

As of May 31, 2016•

(Note) Properties acquired / sold in the 21st Fiscal Period are not included.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

19Performance of Shinjuku Maynds Tower & E SPACE TOWER█ Shinjuku Maynds Tower

Office Building Supply in the 23
Wards of Tokyo

Shinjuku Maynds Tower Occupancy Rate
(Million Yen)

100%
80%

98.8%

94.7%
94.9%
99.9% 98.3%
95.7%
94.0%
99.9%

99.9%

98.8%

99.9%

96.1%

2,400

40%

2,200

Occupancy rate at end of period (left axis)
Occupancy rate (forecast) (left axis)
Rent revenue (right axis)

20%

2,000
1,800

100.0%

100.0%

80%

100.0%

100.0%

100%

100.0%

100.0%
89.3%

100.0% 100.0%

96.4%

89.1%

100.0%

800

89.6%

700

40%

* E SPACE TOWER was acquired in July 2011

22nd FP

21st FP

20th FP

19th FP

18th FP

17th FP

16th FP

15th FP

14th FP

13th FP

12th FP

Upon Acquisition

0%

23rd FP

Occupancy rate at end of period (left axis)
Occupancy rate (forecast) (left axis)
Rent revenue (right axis)

20%

Acquisition price 24,000 million yen

Chiyoda Ward
1,950,000m2

Shibuya Ward
220,000m2
Chuo Ward
Shinjuku Ward
2740,000m2
520,000m
Minato Ward
900,000m2(Million Yen)

900

60%

3 Maruyama-cho,Shibuya-ku

Others1,460,000m2

E SPACE TOWER Occupancy Rate

█ E SPACE TOWER

Address

23rd FP

22nd FP

21st FP

20th FP

19th FP

18th FP

17th FP

16th FP

15th FP

14th FP

Acquisition price 133,800 million yen

13th FP

12th FP

0%
Address

2011-2015

2,600

60%

2-chome, Yoyogi,
Shibuya-ku

2,800

600
500
400

2016-2020

Others760,000m2
Shibuya Ward
590,000m2
Shinjuku Ward
190,000m2

Minato Ward
1,620,000m2

Chiyoda Ward
1,610,000m2
Chuo Ward
690,000m2

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

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

20Internal Growth Strategies
Continuous internal growth and maximization of asset
value through “Bonji-Tettei”

Accurate
grasp ofpresent
situations

Office Management Team (7 members)
Aims at maximizing
asset value withassigning the specialist
group personnel incharge to each of allproperties in theinvestment
corporation’s portfolio.

• In depth understanding of the leasing market• Capturing real opinions of occupying tenants• Specializing updated features of portfolio
properties• Determined budget control• Proactive interactions with brokers• Accompanying new tenant viewings• Frequent visit on tenants
Activities for • Conducing tenant satisfaction surveys
internal• Thorough examination of properties
growth• Solid numerical analysis in detail• Prompt and appropriate strategic lease-up• Realizing stable revenue over a long-term bybuilding up solid relationship with tenants
Realizationof internal • Reliable cost control based on rigorous repair
growthplans, etc.

Jun Arai
Asset management
work history: 10
years 3 months

Hiroshi Udagawa
Asset management
work history: 10
years 0 months

Go Bando
Asset management
work history: 3 years
3 months

Takafumi Ushiku
Asset management
work history: 11 years
10 months

Chie Kamimura
Asset management
work history: 10
years 1 months

Kotaro Ishii
Asset management
work history: 10
years 3 months

Yuuki Kobatake
Asset management
work history: 3 years
9 months

Construction Management Team (3 members)
Engineering:
Formulation andimplementation of
construction planningof the assets
Shigeyoshi Naito
Asset management
work history: 15
years 4 months

Koji Ozeki
Asset management
work history: 10
years 2 months

Naoki Murayama
Asset management
work history: 1 year 1
month(Note)“Asset Management
work history” is thenumber of years
engaged in therelevant work (as ofend of July 2016)
and does notindicate the numberof years employedat the asset
managementcompany.

Investment Planning Team (3 members)

Aims to maximize asset value

Middle office work: Budget and performance management for the portfolios

21

Measures to Increase Portfolio Value█ Strategic Renewal Works█ Coexistence with Local Societies■ Renovation of the entrance hall
・Daiwa Shibuya Miyamasuzaka■Shinjuku Maynds Tower（Before）（After）

20th anniversary event[Period] February 1, 2016 –May 31, 2016
Panels and building models showing the footprints in 20 years will be displayedon the 1F and initiatives including environment consideration will be introduced.
A commemorative gift associated with the event will be given to the tenants.

< distribution of commemorative gift >< exhibition panel ① >< exhibition panel ② >■ Renovation of the elevator
Daiwa Kojimachi 4-chome（Before）（After）< building model >This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

22

Properties Subject to Leasing Improvement█ Daiwa Tsukishima (Acquisition Price: 7,840 million yen)

█ Daiwa Shimbashi 510 (Acquisition Price: 2,080 million yen)
 Located at a 6-minute walk from Located within a 2-minuteShimbashi Station on the JR
Yamanote Line. An area withhigh traffic convenience where
Shimbashi Station on the Toei
Asakusa Line and Tokyo Metro
Ginza Line can also be used.

walk to Kachidoki Station on
the Toei Oedo Line and a 5minute walk to Tsukishima
Station on the Tokyo Metro
Yurakucho Line and theToei Oedo Line.

 Kanjo 2 Gosen (MacArthur Road) Area with back officeruns in the neighboring area andmass communication relatedcompanies and local agencies offinancial institutions andgovernment offices concentrate.

needs by companies withwarehouses and logistics
facilities. Has
competitiveness due to its
relatively large scale in thesurrounding area.

Location

4-chome, Tsukishima, Chuo-ku, Tokyo█ Daiwa Osaki 3-chome (Acquisition Price: 1,650 million yen)

Location

5-chome Shimbashi, Minato-ku, Tokyo

Location

Site Area 626.18㎡

Site Area 749.63㎡

Structure S

Structure SRC

Structure

S/RC

Floor

B1/6F

Use

Office5F

Use

OfficeTotal Floor
Area
Occupancy
Rate
Construction
Date

Floor

B1/8F

Use

Store / Office / Parking

9,416.34㎡

Total Floor
Area

100.0% (May 2016) ⇒ 13.2% (August 2016 assumed)

July 1996

Conducted a large-scale renovation of common areas such as
entrance and toilets that gradually deteriorated over time andtried to enhance the building grade after the main tenants movedout.



Aims to secure tenants centering on back offices of major
companies located in Otemachi and Marunouchi and companies
that have bases around the area by utilizing the strength of
having excellent access to central Tokyo and relatively low rent
considering the property’s scale and grade.



Located at three-minute walkfrom the west exit of Osaki
Station on all JR Lines.

An area with high traffic
convenience not only to themetropolitan area but also tomajor cities all over Japan since it
is close to Shinagawa Station and
Haneda Airport. Sub-office needsof companies and occupancy
needs of group companies are
expected as there are several
properties with headquartersfunctions of major companies inthe surrounding area.

3-chome Osaki, Shinagawa-ku, Tokyo

Site Area 3,157.62㎡

Floor



3,653.19㎡

Total Floor
Area

2,243.36㎡

Occupancy
Rate

88.0% (May 2016)

Occupancy
Rate

78.9% (May 2016)

Construction
Date

April 1974

Construction
Date

September 2007

Concentrated the compartments to expand the floor andenhance convenience of existing tenants with the vacancies dueto the departure of tenants. Land readjustments for theremaining vacant rooms are already done in order to increase
the convenience of tenants. In addition, enhancement of building
grade was implemented with the renovation of the elevator hall.
Aims to incorporate needs of branch offices, branch stores andbusiness offices of major companies emphasizing footwork and
immediately recover the occupancy rate with its strength of being
located near Shimbashi Station.



Relatively new small and medium properties like this property arevery rare around Osaki Station where large properties
concentrate.



Aims to discover group companies of major companies
occupying large properties completed through theredevelopment of the surrounding area as well as sub-officeneeds and immediately recover the occupancy rate with its
strength of being located near Osaki Station.

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

23Section 4External GrowthReplacement of Portfolio for Fiscal Period Ended May 2016
and Fiscal Period Ending November 2016
█ Improvement of Portfolio Quality through Asset Replacements
Sold Properties
21st FP

Increase in the ratio of
properties in the Five Central
Wards of Tokyo

Acquired properties

Rejuvenated building age

21st FP

Improved NOI yield
Ratio of the Five Central Wards of Tokyo
48.3％

100.0％

Average distance from the nearest station

3.3 minutes

3.9 minutes

Average building age
29.0 years

Daiwa Minami-Senba

Daiwa Shibuya Dogenzaka

Book value: 4,679 million yen

Book value: 4,484 million yen

22nd FP

22.0 years

Average NOI Yield
3.23％

4.15％

Nikko Building

Kirin Nihonbashi Building

Acquisition price: 13,710 million yen

Acquisition price: 8,180 million yen

22nd FP

Rejuvenated building age

Improved NOI yield
Ratio of the Five Central Wards of Tokyo
100.0％

71.6％

Average distance from the nearest station

1.3 minutes

2.9 minutes

Average building age
29.3 years

Daiwa Kudan
Book value: 3,803 million yen

15.8 years

Average NOI Yield
3.77％

Total sold price of 3 properties: 13,760 million yen(Note) The book value of each property is as of the end of the period just before they were sold.

4.54％

Heiwa Higashinihonbashi Building

Square Daikanyama
Building

6,370 million yen

2,280 million yen

Shinjuku West
Building

Ogikubo TM Building

3,800 million yen

942 million yen *The amount indicatesthe acquisition priceTotal acquisition price of 6 properties: 35,282 million yen

25Properties Acquired in the Fiscal Period ended May 2016
(21st FP)█ Nikko Building█ Kirin Nihonbashi Building

Acquisition Price: 13,710 million yen (Acquisition Date: Mar. 29, 2016)

Acquisition Price: 8,180 million yen (Acquisition Date: May 26, 2016)

Location

Nishishinjuku, Shinjuku-ku, Tokyo

Appraisal Value

13,900 million yen (Note 1)

Location

Nihonbashi Koami-cho, Chuo-ku, Tokyo

Appraisal Value

8,220 million yen (Note 1)

Site Area

958.08㎡

Construction Date

August 1991

Site Area

1,413.80㎡

Construction Date

February 1999

Structure/Floor

SRC・RC・S/B2/11F

Occupancy Rate

99.4% (Note 2)

Structure/Floor

S・SRC/7F

Occupancy Rate

100.0% (Note 2)

Total Floor Area

10,313.79㎡

Number of Tenant

7 (Note2)

Total Floor Area

7,106.85㎡

Number of Tenant

1 (Note 2)Upon Acquisition(Note 3)

NOI Yield

Upon Acquisition(Note 3)

NOI Yield

Appraisal

3.4％
NOI Yield

4.0％

Assumed Occupancy Rate

99.4％
Assumed Occupancy Rate

97.0％

Mid-term (Note 4)
Depreciation(Note 5)NOI Yield

4.1％

Assumed Occupancy Rate

96.2％

0.3％

(Note 1) As of March 1, 2016. (Note 2) Upon acquisition. (Note 3) Upon acquisition indicates f igures obtained by using expected annual balance of pay ments under theassumed occupancy rate, calculated based on the lease agreement upon acquisition, etc. while taking into account the accrual of tax and public due, etc. (Note 4) Mid-term
indicates estimate f igures f or normal operation peroid (with assumed occupancy rate of 92.6%) af ter acquisition, obtained by deducting rent business-related expenses f rom
the rent rev enue assumed under rents ov er a medium term, and do not represent f orecast f igures f or the current period or the next period onward. (Note 5) Depreciation
indicates a f igure obtained by div iding the total amount of depreciation (6-month equiv alent) expected to be posted upon property acquisition and depreciation (f or 6 months)
expected to be posted in the f ollowing f iscal period by the acquisition price.

 Transportation access
The property is located at 4 minutes on foot from one of the largest terminals within Tokyo, JR
Shinjuku Station and at 1 minute on foot from Shinjuku Station of the Keio Line. Starting with each JRline such as the Yamanote Line, Shinjuku Station conveniently serves to multiple railways such as
Tokyo Metro Marunouchi Line, Toei Oedo Line, Shinjuku Line, Keio Line and Odakyu Line.
 Property overview
The property has 11 stories above ground and 2 below; the total floor area is 10,313.79㎡, about 199
tsubo with 2,540 mm of ceiling height for standard floors, each with 60 mm OA floor and separate air
conditioning facilities. Offices are shaped as an “U”, having a versatile form.

Appraisal

3.9％
NOI Yield

4.4％

Assumed Occupancy Rate

100.0％
Assumed Occupancy Rate

100.0％

Mid-term (Note 4)
Depreciation(Note 5)NOI Yield

4.0％

Assumed Occupancy Rate

100.0％

0.5％(Note 1) As of March 1, 2016. (Note 2) Upon acquisition. (Note 3) Upon acquisition indicates f igures obtained by using expected annual balance of pay ments under theassumed occupancy rate, calculated based on the lease agreement upon acquisition, etc. while taking into account the accrual of tax and public due, etc. (Note 4) Mid-term
indicates estimate f igures f or normal operation peroid (with assumed occupancy rate of 100.%) af ter acquisition, obtained by deducting rent business-related expenses f rom
the rent rev enue assumed under rents ov er a medium term, and do not represent f orecast f igures f or the current period or the next period onward. (Note 5) Depreciation
indicates a f igure obtained by div iding the total amount of depreciation (6-month equiv alent) expected to be posted upon property acquisition and depreciation (f or 6 months)
expected to be posted in the f ollowing f iscal period by the acquisition price.

 Transportation access
The Property is located approximately 4 minutes on foot from Kayabacho Station of Tokyo Metro Hibiya andTozai Lines and approximately 5 minutes on foot from Suitengumae Station of Tokyo Metro Hanzomon Line.
It boasts excellent transport convenience as Otemachi, Ginza, Kasumigaseki and Roppongi can beaccessed directly from Kayabacho Station.

 Property overview
The Property has 7 stories above ground; the total floor area of 7,106.85㎡, about 269 tsubos with
2,700mm of ceiling height for standard floors each with 100mm OA floor and separate air conditioning
facilities. The office is L-shaped (regular shape) with a side-core and has no pillars, allowing flexible layout
and efficient use.

26

Properties Acquired in the Fiscal Period ending November 2016
(22nd FP)█ Heiwa Higashi-nihonbashi Building█ Square Daikanyama Building

Acquisition Price: 6,370 million yen (Acquisition Date: June 1, 2016)

Acquisition Price: 2,280 million yen (Acquisition Date: June 29, 2016)

Location
Site Area
Structure/Floor
Total Floor Area
Upon Acquisition(Note 3)
Appraisal

Higashi-nihonbashi, Chuo-ku, Tokyo

1,213.24㎡
S/7F
6,724.10㎡
NOI Yield

4.1％
NOI Yield

4.3％

Assumed Occupancy Rate

100.0％

6,450 million yen (Note 1)
March 2008
100.0% (Note 2)
Number of Tenant 5 (Note 2)
Appraisal Value
Construction Date
Occupancy Rate

Mid-term (Note 4)

Assumed Occupancy Rate Depreciation

96.0％(Note 5)NOI Yield

Assumed Occupancy Rate

4.2％

96.0％
0.8％

(Note 1) As of April 30, 2016. (Note 2) Upon acquisition. (Note 3) Upon acquisition. (Note 4) Upon Acquisition indicates f igures obtained by using expected annual balance of
pay ments under the assumed occupancy rate, calculated based on the lease agreement upon acquisition, etc. while taking into account the accrual of tax and public due, etc.
(Note 5) Mid-term indicates estimated f igures f or normal operation period (with assumed occupancy rate) af ter acquisition, obtained by deducting rent business-related
expenses f rom rent rev enue assumed under rents ov er a medium term, and do not represent f orecast f igures f or the current period or the next period onward. (Note 6)
Depreciation indicates a f igure obtained by div iding the total amount of depreciation (6-month equiv alent) expected to be posted upon property acquisition and depreciation (f or
6 months) expected to be posted in the f ollowing f iscal period by the acquisition price.

 Transportation access
The property is located at approximately 2-minute walk from Higashi-Nihonbashi Station on the Toei
Asakusa Subway Line and Bakuro-Yokoyama Station on the Toei Shinjuku Subway Line and 3-minute
walk from Bakurocho Station on the JR Sobu Line (Rapid) and all three lines are available at the threestations.
Since the Horidomecho and Higashi-Nihonbashi area flourished centering on textile industry for a longtime, a large number of apparel companies are seen and specific demands are expected.
 Property overview
The property has seven floors above ground and gross floor area of 6,724.10㎡ and a rental area ofapproximately 240 tsubos per floor is secured. It has 2,750mm of ceiling height for a standard floor and
80mm of OA floor equipped with facilities such as individual air conditioning.
As for the external appearance, it has a modern facade constituted mainly of glass surface and a spacethat matches its scale is secured at the entrance hall.

Location
Site Area
Structure/Floor
Total Floor Area
Upon Acquisition(Note 3)
Appraisal

2,420 million yen (Note 1)
March 2001
Occupancy Rate
100.0% (Note 2)
Number of Tenant 1 (Note 2)

Daikanyama-cho, Shibuya-ku, Tokyo Appraisal Value

Construction Date

503.72㎡
S/6F
1,989.40㎡
NOI Yield

Assumed Occupancy Rate

4.0％

100.0％NOI Yield

4.0％

Mid-term (Note 4)

Assumed Occupancy Rate Depreciation

95.0％(Note 5)NOI Yield

Assumed Occupancy Rate

4.5％

100.0％
0.4％(Note 1) As of June 1, 2016. (Note 2) Upon acquisition. (Note 3) Upon acquisition. (Note 4) Upon Acquisition indicates f igures obtained by using expected annual balance of
pay ments under the assumed occupancy rate, calculated based on the lease agreement upon acquisition, etc. while taking into account the accrual of tax and public due, etc.
(Note 5) Mid-term indicates estimated f igures f or normal operation period (with assumed occupancy rate) af ter acquisition, obtained by deducting rent business-related
expenses f rom rent rev enue assumed under rents ov er a medium term, and do not represent f orecast f igures f or the current period or the next period onward. (Note 6)
Depreciation indicates a f igure obtained by div iding the total amount of depreciation (6-month equiv alent) expected to be posted upon property acquisition and depreciation (f or
6 months) expected to be posted in the f ollowing f iscal period by the acquisition price.

 Transportation access
The property is located at approximately 7-minute walk from Daikanyama Station on the Tokyu Toyoko
Line and Shibuya Station on the JR Yamanote Line. It faces Hachiman Dori which is a very busy street
and an exclusive residential area and apparel shops are located in its surrounding areas.
 Property overview
The property has six floors above ground and gross floor area of 1,989.40㎡ and a rental area ofapproximately 85 tsubos per floor is secured. It has 2,600mm of ceiling height for a standard floor and
70mm of OA floor equipped with facilities such as individual air conditioning. It has excellent flexibility oflayout and efficiency of utilization since it has rental rooms with no pillars.
As for the external appearance, it has a modern facade constituted mainly of glass surface and is judged
to be preferred by apparel related companies and creative companies that emphasize the building image.

27

Properties Acquired in the Fiscal Period ending November 2016
(22nd FP)█ Shinjuku West Building█ Ogikubo TM Building

Acquisition Price: 942 million yen (Acquisition Date: July 21, 2016)

Acquisition Price: 3,800 million yen (Acquisition Date: July 21, 2016)

Location
Site Area
Structure/Floor
Total Floor Area
Upon Acquisition(Note 3)
Appraisal

Nishishinjuku, Shinjuku-ku, Tokyo

623.78㎡
RC/4F
1,438.16㎡
NOI Yield

Assumed Occupancy Rate

5.5％

100.0％NOI Yield

5.5％Appraisal Value
Construction Date
Occupancy Rate
Number of Tenant
Mid-term (Note 4)

Assumed Occupancy Rate Depreciation

95.0％(Note 5)1,140 million yen (Note 1)
March 1989
100.0% (Note 2)
7 (Note2)NOI Yield

Assumed Occupancy Rate

4.9％

96.0％
0.5％

Location
Site Area
Structure/Floor
Total Floor Area
Upon Acquisition(Note 3)
Appraisal

Ogikubo, Suginami-ku, Tokyo Appraisal Value
Construction Date
Occupancy Rate
Number of Tenant

970.53㎡
SRC/B1/7F
5,116.78㎡
NOI Yield

Assumed Occupancy Rate

5.0％

100.0％NOI Yield

5.0％

Mid-term (Note 4)

Assumed Occupancy Rate Depreciation

96.0％(Note 5)4,230 million yen (Note 1)
November 1990
100.0% (Note 2)
11 (Note2)
NOI Yield

Assumed Occupancy Rate

4.7％

95.0％
0.5％

(Note 1) As of July 1, 2016. (Note 2) Upon acquisition. (Note 3) Upon acquisition. (Note 4) Upon Acquisition indicates f igures obtained by using expected annual balance of
pay ments under the assumed occupancy rate, calculated based on the lease agreement upon acquisition, etc. while taking into account the accrual of tax and public due, etc.
(Note 5) Mid-term indicates estimated f igures f or normal operation period (with assumed occupancy rate) af ter acquisition, obtained by deducting rent business-related
expenses f rom rent rev enue assumed under rents ov er a medium term, and do not represent f orecast f igures f or the current period or the next period onward. (Note 6)
Depreciation indicates a f igure obtained by div iding the total amount of depreciation (6-month equiv alent) expected to be posted upon property acquisition and depreciation (f or
6 months) expected to be posted in the f ollowing f iscal period by the acquisition price.

(Note 1) As of July 1, 2016. (Note 2) Upon acquisition. (Note 3) Upon acquisition. (Note 4) Upon Acquisition indicates f igures obtained by using expected annual balance of
pay ments under the assumed occupancy rate, calculated based on the lease agreement upon acquisition, etc. while taking into account the accrual of tax and public due, etc.
(Note 5) Mid-term indicates estimated f igures f or normal operation period (with assumed occupancy rate) af ter acquisition, obtained by deducting rent business-related
expenses f rom rent rev enue assumed under rents ov er a medium term, and do not represent f orecast f igures f or the current period or the next period onward. (Note 6)
Depreciation indicates a f igure obtained by div iding the total amount of depreciation (6-month equiv alent) expected to be posted upon property acquisition and depreciation (f or
6 months) expected to be posted in the f ollowing f iscal period by the acquisition price.

 Transportation access
The property is located at a 2-minute walk from Nishi-Shinjuku Station on The Tokyo Metro Marunouchi
Line and has an excellent appeal on its proximity to a station. Also, it is located at a 7-minute walk from
Shinjuku Station which is the largest terminal station in Tokyo with high traffic convenience where
several lines including the JR Line can be used.
As for the characteristics of tenants in Nishi-Shinjuku area, various shop-visit type service relatedindustries such as temporary staffing business and financial business for end users of insurance, etc.
concentrate in the background of high convenience of JR Shinjuku Station as a terminal.
 Property overview
The main facilities of the property are individual air-conditioner, ceiling height of 2,480mm and 3WAY
floor duct with a facility standard satisfying recent office needs. Also, the property can respond to officeneeds as a business base that carries packages in and out since it has a plane parking lot within the site
and a warehouse area on each floor.

 Transportation access
The property is located at 1-munite walk from Ogikubo Station on the JR Chuo Line and the Tokyo
Metro Marunouchi Line. In addition, the JR Ogikubo Station has high traffic convenience which is about
11-minutes from Shinjuku Station and about 24 minutes from Tokyo Station. Both the north and south
side of the property are a busy commercial area and the property has an high appeal on its location toservice related companies for local residents such as banks and securities, cram schools and clinics
since it is excellent in terms of proximity to Ogikubo Station. Also, demands of back offices of large
companies in central Tokyo such as call centers are also assumed.
 Property overview
The property has approximately 172 tsubos of standard floor area and excellent flexibility of layout andefficiency of utilization since the rental rooms are in a rectangular shape with a side core. Also, it isconsidered to incorporate office demands of a wide range of industries such as shop-visit type tenants
and areas since it is well lighted facing a corner lot and can respond to small-scale tenant needs withfloor division.

28

Changes in Asset Size and Trading Performance
Aim to achieve medium-term goal of asset size of 500 billion yen(Billion Yen)
80%

550
Total Acquisition Price

500.0

LTV (Based on Total Asset)

500
445.7

450

467.7

458.3

70%

413.2

352.7
311.3
278.1
265.0

0

34.2%

28.9%

[Acquisition Property]
Daiwa Jimbocho

9th FP

43.3%

42.3%

[Acquisition Property]
E SPACE TOWER

11th FP

12th FP[Acquisition Properties]
shinyon curumu
Daiwa Meieki
Daiwa Kamiooka

13th FP

14th FP[Acquisition Properties]
Nikko Building
Kirin Nihonbashi Building[Acquisition Property]
Integral Tower[Acquisition Properties]
Daiwa Shibuya Dogenzaka
Daiwa Akasaka Daiwa
Shibuya Miyamasuzaka[Acquisition Property]
Daiwa Nihonbashi
Hongokucho[Acquisition Properties]
Daiwa Kayabacho Building
Daiwa Jinbocho 3-chome

10th FP

40%

34.4%

[Acquisition Property]
Daiwa Osaki 3-chome

25.5%[Acquisition Properties]
Daiwa Nishi-Shimbashi
Daiwa Kudan

8th FP

41.7%

40.2%

37.5%

100
50

44.3%

43.0%

269.1

28.1%

150

50%

314.9
40.6%

34.0%

25.3%

313.2

287.3

250
200

364.0

332.0

350
300

60%

387.5

400

15th FP

16th FP[Acquisition Properties]
Daiwa Ebisu 4-chome
LAQUAS Higashi Shinjuku
Concept Aoyama
Shinsen Place
Glass City Shibuya
Meguro Place Tower[Acquisition Properties]
Heiwa Higashi-nihonbashi
Building
Square Daikanyama Building
Shinjuku West Building
Ogikubo TM Building

30%

20%

10%
[Acquisition Properties]
Azabu Green Terrace
Kitahama Grand Building

17th FP

18th FP[Acquisition Properties] River Gate
Daiwa Hatchobori ekimae
Daiwa Hatchobori ekimae West

19th FP

20th FP

21st FP

After
MediumPublic Term Goal
Offering

0%This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

29

Properties Acquired after Sponsor Change
Acquisition Period

9th Fiscal Period

10th Fiscal Period

11th Fiscal Period

Daiwa Jimbocho

Daiwa NishiShimbashi

Daiwa Kudan

Daiwa Kayabacho

Address

Chiyoda-ku, Tokyo

Minato-ku, Tokyo

Chiyoda-ku, Tokyo

Chuo-ku, Tokyo

Acquisition Price

4,150 million yen

5,000 million yen

Seller

ORIX JREIT Inc.

Japan Core Asset II
Ltd.

Acquisition date

March 10, 2010

August 13, 2010

12th Fiscal Period

13th Fiscal

Daiwa Jimbocho 3Daiwa Nihonbashi
E SPACE TOWER
chome
Hongokucho

14th Fiscal

15th Fiscal Period

Daiwa Osaki 3chome

shinyon curumu

Daiwa Meieki

Daiwa Kamiooka

Shinagaw a-ku, Tokyo

Shibuya-ku, Tokyo

Nagoya-shi, Aichi

Yokohama-shi, Kanagaw a

1,650 million yen

9,650 million yen

5,300 million yen

2,000 million yen

Property Name

Acquisition Period

Chiyoda-ku, Tokyo

Shibuya-ku, Tokyo

4,000 million yen 5,600 million yen

3,550 million yen

24,000 million yen 1,721 million yen

Shining Nova the Fifth Daiwa Property Co..
B TMK
Ltd.

Tokyu Land
Corporation

Endeavor Realty FundLtd.

Tosei Corporation

MCR Six GK

Two Domestic
Industrial Companies

Domestic Special
purpose company

Shimizu Corporation

September 2, 2010

March 29, 2011

July 8, 2011

May 11, 2012

September 18, 2012

December 3, 2012
April 12, 2013

February 1, 2013

March 1, 2013

Daiwa Ebisu 4chome

LAQUAS Higashi
Shinjuku

Shinsen Place

Glass City Shibuya

March 25, 2011

17th Fiscal

16th Fiscal Period
Daiwa Shibuya
Dogenzaka

Daiwa Akasaka

Daiwa Shibuya
Miyamasuzaka

Chuo-ku, Tokyo

18th Fiscal Period

Integral Tower

Azabu Green
Terrace

Kitahama Grand
Building

Suginami-ku, Tokyo

Minato-ku, Tokyo

19th Fiscal Period
Concept Aoyama

Property Name

Address

Shibuya-ku, Tokyo

Minato-ku, Tokyo

Shibuya-ku, Tokyo

Osaka-shi, Osaka

Shibuya-ku, Tokyo

Shinjuku-ku, Tokyo

Shibuya-ku, Tokyo

Shibuya-ku, Tokyo

Shibuya-ku, Tokyo

Acquisition Price

4,500 million yen

9,200 million yen

7,000 million yen 15,220 million yen 14,000 million yen 9,481 million yen

4,135 million yen

8,450 million yen

9,800 million yen

4,800 million yen

16,000 million yen

SellerDomestic Special
purpose company

Hakuba Capital 1 TMK

E Buildings Limited
Liability Company

Ogikubo Building Y.
K.

Azabu Green Terrace
GK

GK North Beach

Domestic industrial
company

Higashi Shinjuku
Building TMK

Domestic Special
purpose company

Domestic Special
purpose company

Glass City TMK

July 3, 2013

August 9, 2013

September 27, 2013

May 29, 2014

July 4, 2014

August 1, 2014

December 1, 2014

December 3, 2014

March 2, 2015

March 2, 2015

May 1, 2015

Heiwa Higashinihonbashi Building

Square Daikanyama
Building

Acquisition date

Acquisition Period

19th Fiscal Period
Meguro Place
Tower

20th Fiscal Period
River Gate

21st Fiscal Period

Daiwa Hatchobori Daiwa Hatchobori
ekimae WestekimaeNikko Building

Kirin Nihonbashi
Building

22nd Fiscal Period
Shinjuku West
Building

Ogikubo TM
Building

Total

Property Name

Address

Meguro-ku, Tokyo

Acquisition Price

5,600 million yen

SellerMeguro Place TMK

Temuzu TMK

Domestic industrial
company

Domestic industrial
company

Oversea company

May 1, 2015

June 2, 2015

September 11, 2015

September 11, 2015

Mar. 29, 2016

Acquisition date

Chuo-ku, Tokyo

Chuo-ku, Tokyo

Chuo-ku, Tokyo

Shinjuku-ku, Tokyo

Chuo-ku, Tokyo

Chuo-ku, Tokyo

Shibuya-ku, Tokyo

Shinjuku-ku, Tokyo

Suginami-ku, Tokyo

6,370 million yen

2,280 million yen

942 million yen

3,800 million yen 242,607 million yen

Kirin Beer Marketing
Co., Ltd.

Domestic Special
purpose company

Hulic Co., Ltd.

GK TC1GK TC1－

May 26, 2016

Jun. 1, 2016

Jun. 29, 2016

Jul. 21, 2016

Jul. 21, 2016－

28,000 million yen 2,871 million yen 1,647 million yen 13,710 million yen 8,180 million yen(Note) The sum of ; i) the total acquisition price from the time of the above sponsor change up to July 21, 2016 and ii) prices for additional acquisitionof existing properties or of the site in existing properties during the same period, is 243,027 million yen. “Ltd.” and “TMK” (Tokutei Mokuteki
Kaisha) in sellers’ names refer to a limited liability company and special purpose company, respectively.

－30

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

Distribution Chart of Portfolio Properties

 Places priority in the five central wards of Tokyo and equivalent area.
 Thoroughly select properties in view of actual demand toward location(distance to station, station power, crowd attraction, surrounding
environment), building specs, etc.
 Target properties to improve growth potential and profitability of ourexisting portfolio.
 Invest in buildings less than 25 years of building age.
 Consider replacements when necessary in consideration of properties’
future competitiveness, profitability, etc.

independent style REIT and establishing strong relations withbusiness companies, financial institutions, real estate brokers, etc.
 Target optimum expansion of portfolio based on in-depth data
analysis upon careful selection from among the wide-range
information on properties that comes from diverse sources.

416

50

＊The distance from station is the distance fromthe nearest station

35
Shinjuku West Building
Daiwa Kudan

30* Number of grossproposals.

393

100

25

Ogikubo TM
Building

Nikko Building

20
Kirin Nihonbashi
Building

356

300

268

300
264

296

289

221

80

15

60

10

Square Daikanyama
Building

Heiwa Higashi-nihonbashi Building

200
40
100

Daiwa Minami-Senba
Daiwa Shibuya Dogenzaka

120

Number of properties reviewed* (left axis)
Number of properties reviewed in detail (right axis)

400●properties acquired in the 22nd FP▲properties acquired in the 21st FP●properties acquired after the sponsor change●properties acquired before the sponsor change●properties sold in the 21st FP●properties sold in the 22nd FP

40

 Secure wide-range sourcing route by capitalizing on status as an

500

55

45

█ Sourcing Strategy Capitalizing on Status as
Non-Real Estate Sponsored REIT

Number of Properties Reviewed for Acquisition

Building Age(Year)

30

25

28

26
17

15

31
23

12

20
0

0
13th FP 14th FP 15th FP 16th FP 17th FP 18th FP 19th FP 20th FP 21st FP

5

0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

Distance to station(minutes)

31

Section 5
Financial Strategy

Status of Interest-bearing Liabilities (1)█ Status of Interest-bearing Liabilities

Loan to Value Trend(End of 21st Fiscal Period)(Billion Yen)
70.0%

280

Interest-bearing liabilities (left axis)

 Ratio of Fixed andFloating Borrowings

 Ratio of Long andShort-Term Borrowings

LTV (based on Total Asset*) (right axis)
240

10.3％
60.0%

LTV (based on Total Asset*) estimated (right axis)

29.2％

50.0%

200

Medium-to-long term, upper-limit
LTV target range
40.0%

160

Fixed interest
Floating interest

120

30.0%

80

20.0%

21st FP

After Public
Offering

20th FP

19th FP

18th FP

17th FP

16th FP

15th FP

14th FP

13th FP

12th FP

11th FP

10th FP

9th FP

8th FP

7th FP

6th FP

5th FP

0.0%

4th FP0

3rd FP

10.0%

2nd FP

40

1st FP

89.7％

70.8％

*LTV (based on Total Asset) ＝Total interest-bearing liabilities / Total Asset

Long-term loans payable, etc.
Current portion of long-termloans payable█ Status of Rating
Japan Credit Rating Agency, Ltd. (JCR)
Long-term issuer
ratingRating outlook: Stable

Rating and Investment Information, Inc. (R&I)

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

33

Status of Interest-bearing Liabilities (2)Changes in Procured Years ofInterest-Bearing Liabilities

Repayment Schedule(Million Yen)
25,000(Year)
10.0

Investment Corporation Bond

9.0

20,0008.0(Year)End of period maturity(right axis)
Average PROC years(left axis)

5.0
4.7

4.6
4.5

4.5

8.1
4.0

Average PROC years(excluding short-term loans
payable) (left axis)

7.1
3.5

7.0
7.0

15,000
6.0

3.0

6.4

2.5

5.0
5.0

10,000* Payment dates as of May 31, 2016.

41st FP

40th FP

39th FP

38th FP

37th FP

36th FP

35th FP

34th FP

33rd FP

32nd FP

31st FP

30th FP

29th FP

28th FP

27th FP

26th FP

25th FP

24th FP

23rd FP

22nd FP

0

2.0

3.0

1.5

2.0

1.0

1.0

0.5

0.0

0.0
8th FP
9th FP
10th FP
11th FP
12th FP
13th FP
14th FP
15th FP
16th FP
17th FP
18th FP
19th FP
20th FP
21st FP

5,000

4.0

* Dotted line indicates average procured years in the current
fiscal period excluding short-term loans payable.

34

Status of Interest-bearing Liabilities (3)As of the 21st Fiscal Period(Million Yen)
Name of Financial
Institutions

BalanceComparison w ith
prev ious period

Balance ratio

Name of Financial
Institutions

BalanceComparison w ith
prev ious period

Balance ratio

Sumitomo Mitsui Banking Corporation.

41,900+2,00020.8%

The Musashino Bank, Ltd.

2,000

0

1.0%

Sumitomo Mitsui Trust Bank, Limited

26,350+1,50013.1%

Tokio Marine & Nichido Fire Insurance Co., Ltd.

2,000

0

1.0%

Development Bank of Japan Inc.

21,750+1,50010.8%

The Higashi-Nippon Bank, Limited

1,500

0

0.7%

Mizuho Corporate Bank, Ltd.

19,400+1,000

9.6%

Nippon Life Insurance Company

1,300

0

0.6%

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

16,000+1,500

8.0%

The Kagawa Bank, Ltd.

1,000

0

0.5%

Shinsei Bank, Ltd

14,000+1,000

7.0%

The Hiroshima Bank, Ltd.

1,000

0

0.5%

Resona Bank, Limited

12,500+1,000

6.2%

The Yamaguchi Bank, Ltd.

500

0

0.2%

Mitsubishi UFJ Trust and Banking Corporation

8,500+2,500

4.2%

Taiyo Life Insurance Company

300

0

0.1%

Mizuho Trust and Banking Co., Ltd.

6,000

+1,000

3.0%

Fukoku Mutual Life Insurance Company

200

0

0.1%

The Bank of Fukuoka, Ltd.

5,500

0

2.7%

Total (25 banks)

201,200+14,000

100.0%

Kansai Urban Banking Corporation

5,000

0

2.5%

Aozora Bank, Ltd.

4,500

0

2.2%

Nishi-Nippon City Bank, Ltd.

3,000

+1,0001.5%

Issuance

ORIX Bank Corporation

2,500

0

1.2%

No. 3 Unsecured Investment Corporation Bond

3,000

0

5 years

The Gunma Bank, Ltd.

2,500

0

1.2%

No. 4 Unsecured Investment Corporation Bond

2,100

0

10 years

The 77 Bank, Ltd.

2,000

0

1.0%

Total Investment Corporation Bonds

5,100

0

-

BalanceComparison with
Balance ratio
previous period

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

35

Unitholders as of the End of the May 2016 (21st) Fiscal Period█ Unitholders’ Share by Investor Type█ List of Top 10 Investors
20th Fiscal
PeriodNumber of

21st Fiscal
PeriodNumber of

Change ofUnits

Daiwa Investment Management
Inc.

128,905

128,905026.63%

2

Japan trustee Services Bank, Ltd.
(Trust Account)

78,79079,220+430

16.37%

3

Daiwa Securities Group Inc.

59,321

59,3210

12.26%

4

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

52,88048,441-4,43910.01%

50,78048,330-2,4509.99%

17,16817,306

+138

3.58%

3,247

4,552

+1,3050.94%

20th Fiscal
Period Numberof Units

21st Fiscal
Period Numberof Units

Individuals

22,957

20,292-2,665

4.19%

1Financial Institutions

215,414212,202-3,21243.84%

0

0

0

0.00%

6,725

7,682

+957

1.59%

Investor Type

Commercial
Bank
Regional Bank
Trust Bank

203,367

196,509

Changeof Units

Rate*-6,858

No.

40.60%
5

Life Insurance
Non-life
Insurance
Other Financial
Institutions
Other Domestic
Corporation

1,829

2,961

+1,132

0.61%
6

192

695

+503

0.14%

3,301

4,355

+1,0540.90%

7192,037

191,340-697

46,72853,390+6,662

11.03%

Securities

6,864

6,776

-88

1.40%

484,000

484,0000

100.00%Total(*) Rounded to the second decimal place.

The Master Trust Bank of Japan,
Ltd.
(Investment Trust Account)
The Nomura Trust and Banking
Co,.Ltd.
(Investment Trust Account)
BNP Paribas Securities Services
Sydney/Jasdec/Australian
Residents

Rate*

8

Mitsubishi UFJ Morgan Stanley
Securities Co., Ltd.

4,356

3,523

-833

0.73%

9

State Street Bank -West Pension
Fund Clients- Exempt 505233

3,151

3,382

+231

0.70%

10

Ｓtate Street Bank and Trust
Company 505223

1,429

3,184

+1,7550.66%

400,027

396,164-3,86381.85%

39.53%

Foreigner

Investor Name

Total(*) Rounded to the second decimal place.

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

36

Environmental Efforts█

Properties that acquired BELS evaluation“Daiwa Jimbocho Building” “Daiwa Kayabacho Building” and “shinyon curumu” newly acquired three stars, two stars and one star, respectively
in the evaluation of Building Energy-efficiency Labeling System (mentioned as “BELS” hereafter) as of March 3, 2016.
The Ministry of Land, Infrastructure, Transport and Tourism has set “Evaluation guideline for labeling energy-efficiency performances related to
non-residential buildings (2013)” to contribute to further enhancement of energy-efficiency performances related to non-residential buildings
and provision of appropriate information in real estate markets, etc. BELS is an evaluation and labelling system of energy-efficiency
performances targeting both new and existing non-residential buildings started from April 25, 2014 based on this guideline. Evaluation will belabeled in five ranks（★～★★★★★）of energy-efficiency performance.

“Daiwa Jimbocho Building”█“Daiwa Kayabacho Building”“shinyon curumu”

Acquired “Green Star” Rating for 4th Consecutive Year at GRESB 2015
Daiwa Real Estate Management participated in the Global Real Estate Sustainability Benchmark (GRESB) Survey following 2012, 2013 and2014 targeting Daiwa Office Investment Corporation and received a high evaluation on sustainability in both “management and policy” and“implementation and measurement” and acquired Green Star, the highest category among the four ranks, for four consecutive years. GRESB isan international institution led by private sectors and consists of institutional investors primarily focused on pension funds in Europe. GRESB
conducts sustainability-performance analyses of real estate portfolios. Daiwa Real Estate Management Co., Ltd. will maintain its efforts toenhance sustainability-performance initiatives.

37

Activities in the Fiscal Period ending Nov 2016 (22nd FP)

Internal Growth→ “Bonji-Tettei”

 Connecting to internal growth through a thorough hands-on
approach based on focusing the portfolio Tokyo in the
background of steady office markets in Tokyo.

External Growth→ Acquisition of carefully
selected properties

 Continue to carefully select and actively invest incompetitive properties that contribute to enhancement of
portfolio value.

Financial Growth→ Strengthen financial
structure Work to further strengthen financial structure against the
backdrop of possible volatile hikes in the financial market.
 Conduct agile and flexible fund procurement by capitalizing
on strong relationship with lenders.

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

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

38

Memorandum

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

Appendix

Summary of Results for the Fiscal Period ended May 2016
(21st FP) (1) - Balance Sheet █ Comparison with Results of the 20th Fiscal Period

Current Assets

21st Fiscal Period

20th Fiscal Period

21st Fiscal Period

Million Yen

Million Yen

Million Yen

Million Yen

19,998(%)
4.3%

23,829(%)
Current Liabilities

5.0%

12,789(%)
2.8%

25,635

Cash and Deposits

16,61820,940Operating Accounts Payables

844

988

Cash and Deposits in Trust

2,082

2,097

Short-term Loans Payable

5,500

,-

Other Current Assets

1,298

791

Current Portion of Long-term Loans
Payable

3,700

21,200

541

494

95.7%

452,830

95.0%

Accounts Payables-Other

436,44094.7%

448,445

94.1%

Advances Received

1,941

2,051

Other Current Liabilities

262

900

Building and Others (including Trust Property)

85,65684,825Land and Others (including Trust Property)

350,753

363,574

31

45

Other Tangible Fixed Assets
Intangible Fixed Assets

2,717

Leasehold Rights and Leasehold
Rights in Trust
Other Intangible Fixed Assets

0.6%

2,716

2,713

2,713

3

2

Investments and Other Assets

1,516

Leasehold and Security Deposits
Paid in Trust

113

113

Long-term Prepaid Expenses

1,206

1,189

196

365

Other Investments and Other Assets
Deferred Assets

32

Investment Corporation Bond
Issuance Costs
Total Assets

0.3%

0.0%

32
460,705 100.0%

1,668

29

Liabilities

Tangible Fixed Assets

440,674

Fixed Liabilities
Investment Corporation Bonds
Long-term Loans Payable

0.6%

Tenant Leasehold and Security
Deposits
Tenant Leasehold and Security
Deposits in Trust
Other Fixed Liabilities

0.3%

Total Liabilities
Unitholders' equity

0.0%

29
476,690 100.0%

Net Assets

Fixed Assets

Assets20th Fiscal Period

200,21543.5%

203,334

5,100

5,100

178,000

180,000

15,531

15,881

1,005

988

578

1,364

213,005

46.2%

228,969

243,403

243,403

Unappropriated Retained Earnings

4,689

5,250

Valuation, Translation Adjustments andOthers

- 392

- 933

Total Net Assets
Total Liabilities and Net Assets

247,700

53.8%

460,705 100.0%

247,720

(%)
5.4%

42.7%

48.0%

52.0%

476,690 100.0%

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

41

Summary of Results for the Fiscal Period ended May 2016
(21st FP) (2) - Income Statement █ Comparison with Results of the 20th Fiscal Period █ Comparison with the 21st Fiscal Period Forecasts(Million Yen)

Effective Number of Days of Investment
Operating Revenues (A)20th Fiscal
Period21st Fiscal
Period183

183(Million Yen)

ChangeEffective Number of Days of Investment

11,837

12,363

+ 525

-

323

+ 323

6,223

6,255

+ 31

Expenses related to Rental Business(excluding depreciation)

3,322

3,288

- 34

Depreciation

1,703

1,726

+ 22

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

6,811

7,025

+ 213

Operating Income (A-B)

5,614

6,108

Non-operating Expenses

938

Operating Revenues (A)21st Period
Forecast

21st Fiscal
Period183

183

Change11,922

12,363

+ 441

-

323

+ 323

6,354

6,255

- 99

Expenses related to Rental Business(excluding depreciation)

3,423

3,288

- 135

Depreciation

1,727

1,726

-1

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

6,771

7,025

+ 254

+ 493

Operating Income (A-B)

5,567

6,108

+ 540

787

- 151

Non-operating Expenses

798

787

- 10

608

614

+5

628

614

- 14

4,689

5,326

+ 637

4,769

5,326

+ 557

Extraordinary Income

-

-

-

Extraordinary Income

-

-

-

Extraordinary Expenses

-

-

-

Extraordinary Expenses

-

-

-

Total income taxes (Includes income taxes deferred)

0

76

+ 75

Total income taxes (Includes income taxes deferred)

2

76

+ 74

4,688

5,250

+ 561

Net Income

4,767

5,250

+ 482

484,000

484,000-

484,000

484,000-

9,688

10,508

+ 820

9,850

10,508+ 658

Gain on Sale
Operating Expenses (B)Interest Expense (including cap
amortization)
Ordinary Income

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

Gain on Sale
Operating Expenses (B)Interest Expense (including cap
amortization)
Ordinary Income

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

(Note) Distribution per unit for the 21st fiscal period is calculated by dividing the amount obtained bysubtracting provision for reserve for reduction entry (164 million yen) from unappropriated retained
earnings by the total number of investment units issued.

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

42Forecasts for the Fiscal Periods ending November 2016 andMay 2017 (22nd and 23rd FP)█ Forecasts for the 22nd and 23rd Fiscal Periods(Million Yen)

Effective Number of Days of Investment

21st Fiscal Period(May 31, 2016)

22nd Period Forecast(Nov. 30, 2016)

23rd Period Forecast(May 31, 2017)

183

183

182

12,363

12,775

12,454

323

99

-

6,255

6,674

6,385

Expenses related to Rental Business(excluding depreciation)

3,288

3,632

3,346

Depreciation

1,726

1,751

1,775

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

7,025

7,292

7,331

Operating Income (A-B)

6,108

6,101

6,068

Non-operating Expenses

787

845

807

614

626

618

5,326

5,256

5,260

Extraordinary Income

-

-

-

Extraordinary Expenses

-

-

-

76

2

2

5,250

5,254

5,258

Investment Units Issued and Outstanding

484,000

498,000

498,000

Dividend per Unit (Unit: Yen)

10,50810,55010,560Operating Revenues (A)Gain on Sale
Operating Expenses (B)Interest Expense (including cap amortization)

Ordinary Income

Total income taxes (Includes income taxes deferred)

Net Income

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

43

Major Financial Data

Item

Unit

Number of days of investment
Number of properties at end of period

17thPeriod18th
Period19th
Period20th
Period21stPeriod

Day

182

183

182

183

183

Property

44

46

47

50

50

%

96.4

97.2

97.3

98.3

98.7

352,993

381,872

397,194

443,106

448,052

 NOI

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

Occupancy rate at end of period
Average acquisition priceMillion Yen

Net income + Depreciation – Gain on sale
 ROA

Annualized ordinary income / Total assets
NOI (after deduction of gain on sale)

Million Yen

6,008

6,936

7,213

8,515

8,751

 ROE
Funds from operation (FFO)
Return on asset (ROA)

Million Yen

4,368

5,138

5,344

6,392

6,652

Annualized net income / Net assets

%

1.6

1.9

1.9

2.0

2.3

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

Return on equity (ROE)

%

3.0

3.4

3.6

3.8

4.2

Capital adequacy ratio at end of period

%

53.0

55.7

51.6

53.8

52.0

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

%

43.0

40.2

44.3

41.7

43.3

periodInterest-bearing liabilities at end of fiscal
period / Total assets at end of fiscal period

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

44

Status of Interest-bearing Liabilities (As of May 31, 2016)
Date ofadv ance

Due date

12/5/11
12/5/21
12/5/21
12/5/21
12/5/21
13/2/28
16/5/26
16/5/26

17/5/10
17/5/22
17/5/31
17/5/31
17/5/31
16/8/31
17/5/31
17/5/31

The Bank of Fukuoka, Ltd.(*)

1,700 Fixed
1.018%
6,500 Fixed
1.022%
4,000 Fixed
0.859%
3,000 Fixed
0.847%
1,500 Fixed
0.847%
1,500 Fixed
0.519%
1,500 Float T+0.250%
1,500 Float T+0.250%
21,2002,550 Fixed
0.962%
1,500 Fixed
0.705%
1,000 Fixed
0.705%
1,000 Fixed
0.791%
3,400 Fixed
0.691%
1,950 Fixed
0.600%
2,000 Fixed
0.847%
2,000 Fixed
0.613%
1,000 Fixed
0.679%
1,000 Fixed
0.690%
500 Fixed
0.690%
500 Fixed
0.726%
2,000 Fixed
0.896%
1,500 Fixed
0.896%
1,000 Fixed
0.814%
2,000 Fixed
0.896%
2,000 Fixed
0.896%
500 Fixed
0.716%
500 Fixed
0.578%
1,000 Fixed
0.878%
1,500 Fixed
0.844%
1,000 Fixed
0.963%
1,500 Fixed
0.893%
1,500 Fixed
0.677%
2,000 Fixed
0.794%
1,000 Fixed
0.833%
1,600 Fixed
0.781%
1,000 Fixed
0.787%
1,000 Fixed
0.808%
1,000 Fixed
0.681%

12/9/18
12/9/18
12/9/18
12/9/18
12/9/18
12/11/30
12/12/3
12/12/3
13/1/10
13/2/1
13/2/1
13/2/1
13/2/1
13/2/1
13/2/28
13/2/28
13/3/1
13/4/12
13/4/12
13/4/12
13/4/12
13/4/12
13/6/28
13/6/28
13/6/28
13/7/3
13/7/3
13/7/3
13/7/3
13/7/817/8/31
17/8/31
17/8/31
17/8/31
18/2/28
18/2/28
17/11/30
17/11/30
18/2/28
17/11/30
17/11/30
18/2/28
20/2/28
20/2/28
19/2/28
20/2/28
20/2/28
18/5/31
18/5/31
19/5/31
19/11/29
19/11/29
18/8/31
19/8/30
20/8/31
18/8/31
20/8/31
20/11/30
20/11/30
18/8/31

Sumitomo Mitsui Trust Bank, Limited(*)

1,000 Fixed

0.824%

13/7/8

19/11/29

Sumitomo Mitsui Trust Bank, Limited(*)

4,000 Fixed

0.816%

13/7/8

20/5/29

Current maturities ofLong term borrowings

long term borrowings

Dev elopment Bank of Japan Inc.
Dev elopment Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation.(*)
Sumitomo Mitsui Trust Bank, Limited(*)
Mizuho Trust and Banking Co., Ltd.(*)
Aozora Bank, Ltd.(*)
Sumitomo Mitsui Banking Corporation.
Sumitomo Mitsui Trust Bank, Limited
Total current maturities of long term borrow ings
Dev elopment Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation.(*)
Mizuho Bank, Ltd.(*)
The Hiroshima Bank, Ltd.(*)
Sumitomo Mitsui Trust Bank, Limited(*)
Sumitomo Mitsui Trust Bank, Limited(*)
Dev elopment Bank of Japan Inc.
Shinsei Bank, Ltd.(*)(**)
ORIX Bank Corporation(*)
Tokio Marine & Nichido Fire Insurance Co., Ltd.
The Yamaguchi Bank, Ltd.
The Higashi-Nippon Bank, Limited(*)
Sumitomo Mitsui Banking Corporation.(*)
Sumitomo Mitsui Trust Bank, Limited(*)
The Kagaw a Bank, Ltd.(*)
Aozora Bank, Ltd.(*)
Resona Bank, Limited(*)
The Gunma Bank, Ltd.(*)
The Musashino Bank, Ltd.(*)(**)
Aozora Bank, Ltd.(*)
Sumitomo Mitsui Trust Bank, Limited(*)
Dev elopment Bank of Japan Inc.
Kansai Urban Banking Corporation
Kansai Urban Banking Corporation(*)(**)
Kansai Urban Banking Corporation(*)(**)
Dev elopment Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation.(*)
Shinsei Bank, Ltd.(*)(**)
The Higashi-Nippon Bank, Limited(*)

Balance
Ty pe(million y en)

Term

LenderThe Bank of Fukuoka, Ltd.(*)
The Bank of Toky o-Mitsubishi UFJ, Ltd.(*)
Sumitomo Mitsui Trust Bank, Limited(*)
Sumitomo Mitsui Banking Corporation.(*)
Mitsubishi UFJ Trust and Banking Corporation(*)
Mizuho Bank, Ltd.(*)
Sumitomo Mitsui Banking Corporation.(*)
ORIX Bank Corporation
The Bank of Fukuoka, Ltd.(*)
Shinsei Bank, Ltd.(*)(**)
Resona Bank, Limited(*)
Resona Bank, Limited(*)
Sumitomo Mitsui Banking Corporation.(*)
Sumitomo Mitsui Banking Corporation.(*)
Mitsubishi UFJ Trust and Banking Corporation(*)
The Gunma Bank, Ltd.(*)
Mizuho Bank, Ltd.(*)
Mizuho Bank, Ltd.(*)
Sumitomo Mitsui Trust Bank, Limited
The Musashino Bank, Ltd.(*)(**)
The Bank of Toky o-Mitsubishi UFJ, Ltd.(*)
Mizuho Trust and Banking Co., Ltd.(*)
Dev elopment Bank of Japan Inc.
The Bank of Toky o-Mitsubishi UFJ, Ltd.(*)
Mizuho Bank, Ltd.(*)
The Bank of Toky o-Mitsubishi UFJ, Ltd.(*)
Sumitomo Mitsui Banking Corporation.
The Bank of Toky o-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation.(*)
Mizuho Trust and Banking Co., Ltd.(*)
Sumitomo Mitsui Banking Corporation.(*)
Sumitomo Mitsui Banking Corporation.(*)
Sumitomo Mitsui Banking Corporation.(*)
Shinsei Bank, Ltd.
Sumitomo Mitsui Banking Corporation.
The Bank of Toky o-Mitsubishi UFJ, Ltd.(*)
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation.

Balance
Ty pe(million y en)

Interest
Rate (%)

Date ofadv ance

Due date

Term

Balance
Ty pe(million y en)

LenderSumitomo Mitsui Banking Corporation.
Resona Bank, Limited
Dev elopment Bank of Japan Inc.
Shinsei Bank, Ltd.
The 77 Bank, Ltd.(*)
Dev elopment Bank of Japan Inc.
The Bank of Fukuoka, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Mizuho Bank, Ltd.
Shinsei Bank, Ltd.
Resona Bank, Limited
Sumitomo Mitsui Banking Corporation.
Mizuho Bank, Ltd.
The Bank of Toky o-Mitsubishi UFJ, Ltd.
The Musashino Bank, Ltd.(*)(**)
Nishi-Nippon City Bank, Ltd.
The 77 Bank, Ltd.
Sumitomo Mitsui Banking Corporation.
The Bank of Toky o-Mitsubishi UFJ, Ltd.
Nippon Life Inslance Company
Sumitomo Mitsui Trust Bank, Limited
The Bank of Toky o-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation.
The Gunma Bank, Ltd.(*)
Nippon Life Inslance Company
Taiy o Life Insurance Company
Sumitomo Mitsui Banking Corporation.
Dev elopment Bank of Japan Inc.
Mizuho Bank, Ltd.
Resona Bank, Limited
Mizuho Trust and Banking Co., Ltd.
Shinsei Bank, Ltd.
Nishi-Nippon City Bank, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
The Bank of Toky o-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation.
Mizuho Bank, Ltd.

Shinsei Bank, Ltd.

1,000 Fixed
3,000 Fixed
1,000 Fixed
1,400 Fixed
2,000 Fixed
4,000 Fixed
1,400 Fixed
1,500 Fixed
2,000 Fixed
1,000 Fixed
2,000 Fixed
2,000 Fixed
1,000 Fixed
1,000 Fixed
3,000 Fixed
1,000 Fixed
1,000 Fixed
3,900 Fixed
2,000 Fixed
500 Fixed
2,000 Fixed
500 Fixed
1,000 Fixed
1,000 Fixed
1,500 Fixed
1,000 Fixed
3,000 Float
1,000 Float
2,000 Fixed
3,000 Fixed
2,000 Fixed
3,500 Fixed
4,000 Fixed
1,000 Float
2,000 Float
1,000 Fixed
1,000 Float
1,000 Float
1,000 Float

0.681%
13/8/918/8/310.761%
13/8/920/8/310.646%
13/8/921/2/26
0.629%
13/8/921/5/310.622%
13/9/27 18/11/30
0.636%
13/9/27 21/3/31
0.636%
13/9/27 21/3/31
0.687%
13/9/30 19/2/28
0.662%
13/9/30 19/3/29
0.737%
13/11/29 20/11/30
0.571%
14/3/18 19/9/30
0.606%
14/3/18 21/3/31
0.606%
14/3/25 21/3/31
0.593%
14/3/25 22/2/28
0.500%
14/3/31 19/3/29
0.500%
14/3/31 19/3/29
0.642%
14/3/31 20/3/31
0.606%
14/3/31 21/3/31
0.471%
14/5/29 19/5/31
0.435%
14/5/29 19/5/31
0.595%
14/5/29 20/5/29
0.595%
14/5/29 20/5/29
0.742%
14/5/29 20/11/30
0.618%
14/5/29 21/11/30
0.585%
14/5/29 22/5/31
0.585%
14/5/29 22/5/31
T+0.350% 14/5/29 22/11/30
T+0.350% 14/5/29 22/11/30
0.411%
14/7/8 19/11/29
0.530%
14/7/8 20/11/30
0.530%
14/7/8 20/11/30
0.618%
14/7/8 21/11/30
0.585%
14/7/822/5/31
L+0.325%
14/7/822/8/31
T+0.350%
14/7/8 22/11/30
0.560%
14/12/1 22/5/31
T+0.325% 14/12/1 22/11/30
T+0.350% 14/12/1 23/5/31
L+0.350% 14/12/1 23/5/31

Dev elopment Bank of Japan Inc.

1,000 Fixed

0.692%

14/12/3

21/11/30

Mitsubishi UFJ Trust and Banking Corporation(*)

1,000 Fixed

0.593%

14/12/3

21/11/30

Total long-term borrowings

180,000

Total borrowings

201,200

Shinsei Bank, Ltd.(*)(**)

1,000 Fixed

0.836%

13/7/31

21/5/31

The Bank of Toky o-Mitsubishi UFJ, Ltd.(*)

1,000 Fixed

0.560%

14/12/3

22/5/31

Shinsei Bank, Ltd.(*)(**)

1,000 Fixed

0.856%

13/7/31

21/8/31

Mizuho Bank, Ltd.

1,500 Float

T+0.325%

14/12/3

22/11/30

Tokio Marine & Nichido Fire Insurance Co., Ltd.(*)(**)

1,000 Fixed

0.540%

13/8/918/7/31

Resona Bank, Limited

1,500 Float

T+0.325%

14/12/3

22/11/30

The Bank of Toky o-Mitsubishi UFJ, Ltd.(*)

2,000 Fixed

0.661%

13/8/918/8/31

Sumitomo Mitsui Trust Bank, Limited

1,000 Float

T+0.325%

14/12/3

22/11/30

Long term borrowings

Interest
Rate (%)

LenderLong term borrowings

Term

Shinsei Bank, Ltd.
Fukoku Mutual Life Insurance Company

1,500 Float
2,500 Float
2,000 Fixed
1,500 Float
1,000 Fixed
1,500 Fixed
1,500 Float
1,500 Float
1,500 Float
1,500 Float
1,500 Float
3,000 Float
2,000 Float
500 Float
1,000 Fixed
2,000 Float
1,000 Float
500 Float
1,000 Fixed
1,000 Float
1,000 Float
1,000 Float
1,000 Float
1,000 Fixed
300 Float
300 Fixed
1,500 Float
1,500 Fixed
1,000 Float
1,000 Float
1,000 Float
1,000 Float
1,000 Float
2,500 Float
1,500 Float
2,000 Float
1,500 Float
1,000 Float
2,000 Float
200 Fixed

Interest
Rate (%)

Date ofadv ance

Due date

T+0.350% 14/12/3 23/5/31
T+0.325% 15/2/27 23/2/28
0.710%
15/3/31 22/3/31
L+0.325% 15/3/31 23/5/31
0.479%
15/5/1
21/5/310.634%
15/5/1
22/5/31
T+0.300%
15/5/1
23/5/31
T+0.325%
15/5/1 23/11/30
T+0.325%
15/5/1 23/11/30
L+0.325%
15/5/1 23/11/30
T+0.325%
15/5/1 23/11/30
T+0.350%
15/5/1
24/5/31
T+0.325% 15/5/29 23/11/30
T+0.325% 15/5/29 23/11/30
0.349%
15/8/31 20/8/31
L+0.250% 15/8/31 22/8/31
T+0.250% 15/8/31 22/8/31
T+0.350% 15/8/31 24/8/30
0.300%
15/9/11 19/8/30
T+0.250% 15/9/11 22/8/31
T+0.325% 15/9/11 24/2/29
T+0.325% 15/9/11 24/2/29
T+0.350% 15/9/11 24/8/30
0.443%
15/11/30 22/2/28
T+0.250% 15/11/30 22/8/31
0.541%
15/11/30 22/11/30
T+0.250% 16/3/29 23/2/28
0.303%
16/3/29 23/2/28
T+0.250% 16/3/29 23/2/28
T+0.275% 16/3/29 23/8/31
T+0.275% 16/3/29 23/8/31
T+0.300% 16/3/29 24/2/29
T+0.300% 16/3/29 24/2/29
T+0.325% 16/3/29 24/8/30
T+0.325% 16/3/29 24/8/30
T+0.325% 16/5/26 24/11/29
T+0.350% 16/5/26 25/5/30
T+0.350% 16/5/26 25/5/30
T+0.325% 16/5/31 24/11/29
0.579%

16/5/31

26/5/29

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 fixedinterest rates.
█ Investment Corporation Bonds(**) Interest rates are converted based on 1 year=365 days and indicated.
Term

Lender

No. 3 Unsecured Investment Corporation Bond
No. 4 Unsecured Investment Corporation Bond
Total Investment corporate bonds
Long-term

Balance(million y en)

Ty pe

3,000 Fixed
2,100 Fixed
5,100(Note) Both are with pari passu clause among specified investment
corporation bonds.

Interest
Rate (%)

Date ofadv ance

Due date

0.42%
1.00%

14/9/12
14/9/12

19/9/12
24/9/1245

Analyses of Tenants(As of May 31, 2016)

Major Tenants Top 10 List
Tenant Name(*1)

Property

Not disclosed (*)

Daiwa Tsukishima% Share of Industries* of Top 100 Tenants**
Leased Space
( ㎡)
(*2)
6,379.88% of Total Leased
Space
(*3)
1.9%

Other

Fields Corporation

E SPACE TOWER

6,372.30

15.3%

1.9%

Services

Schools

Trend Micro Incorporated

Shinjuku Maynds Tower

6,314.58

1.9%

26.1%

3.1%

Banks
3.3%

Jupiter Shop Channel Co.,Ltd.

River Gate

6,211.77

1.9%

Construction 3.4%
Tokio Marine & Nichido Anshin
Consulting Co., Ltd.

Integral Tower

6,058.41

1.8%

Palsystem Consumers'
Co-operative UnionLAQUAS Higashi Shinjuku

5,985.08

1.8%

Not disclosed (*)

Daiwa Kayabacho Build.

5,899.11

1.8%

Electric
device3.4%
Information&
Communication

Foods 3.7%

21.2%

Wholesale
5.2%

EMC Japan

Shinjuku Maynds Tower

Kirin Beer Marketing Co., Ltd.
Temp Holdings Co., Ltd.
Total

Kirin Nihonbashi Building
Shinjuku May nds Tow er
Daiw a Shibuy a Miy amasuzaka

Real Estate
5,693.39

1.7%

5,630.17

1.7%

5,563.81

1.7%

60,108.50

18.5%

6.6%

Retail Trade
8.0%* The leased space of top 100 tenants covers 66.2% of total leased
space as of the end of the 21st Fiscal Period.
** Industries are categorized according to TSE’s 33 industry groups.
*** The ratio is rounded down to the first decimal place*1 Not disclosed due to tenant's request.
*2 Leased spaces of the tenants in Shinjuku Maynds Tower are described as the figure equivalent to 6/7, ownership % of the Investment Corporation.
*3 Rounded down to first decimal place.

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

46

Appraisal Value Compared to the Previous Fiscal Period (1)(Unit: Million Yen)
Compared to
End of 20th Period(*)

Appraisal Value
Property Name
End of 20th Period

End of 21st Period Difference

ChangeAcquisition
Price

Compared to
Acquisition Price
Difference

ChangeCap Rate
20th Period 21st Period

Daiwa Ginza

15,80016,300+500

3.2%

14,100+2,200

15.6%

3.9%

3.8%

Daiwa Ginza Annex

3,260

3,440

+180

5.5%

3,050

+390

12.8%

3.8%

3.7%

Daiwa Shibaura

7,350

7,520

+170

2.3%

8,265

-745

-9.0%

4.3%

4.2%

Daiwa Minami Aoyama

4,250

4,360

+110

2.6%

4,550

-190

-4.2%

4.2%

4.1%

Daiwa Sarugakucho

3,270

3,340

+70

2.1%

3,190

+150

4.7%

4.8%

4.7%

Daiwa A Hamamatsucho

3,220

3,320

+100

3.1%

2,865

+455

15.9%

4.1%

4.0%

Daiwa Jingumae

2,230

2,290

+60

2.7%

2,800

-510

-18.2%

4.1%

4.0%

Daiwa Shibadaimon

2,860

2,900

+40

1.4%

2,578

+322

12.5%

3.9%

3.9%

Daiwa Misakicho

2,680

2,680

-

0.0%

2,346

+334

14.2%

4.2%

4.2%

Daiwa Shimbashi 510

2,420

2,430

+10

0.4%

2,080

+350

16.8%

4.4%

4.3%

Daiwa Tsukijiekimae

1,550

1,590

+40

2.6%

1,560

+30

1.9%

4.6%

4.5%

Daiwa Tsukiji

1,360

1,390

+30

2.2%

1,240

+150

12.1%

4.5%

4.4%

Daiwa Tsukishima

9,080

9,170

+90

1.0%

7,840

+1,330

17.0%

4.4%

4.4%

Daiwa Nihonbashi Horidomecho

2,450

2,510

+60

2.4%

2,520

-10

-0.4%

4.4%

4.3%

Daiwa Azabudai

1,750

1,830

+80

4.6%

1,600

+230

14.4%

4.3%

4.2%

Daiwa Kyobashi

3,180

3,270

+90

2.8%

3,460

-190

-5.5%

4.3%

4.2%

Daiwa Kojimachi 4-chome

2,670

2,690

+20

0.7%

2,910

-220

-7.6%

4.0%

3.9%

Daiwa Onarimon

12,80013,100+300

2.3%

13,860

-760

-5.5%

4.1%

4.0%

Shinjyuku Maynds Tower

116,000

119,000+3,0002.6%

133,800-14,800-11.1%

3.6%

3.5%

SHIBUYA EDGE

4,650

4,750

+100

2.2%

5,900

-1,150-19.5%

4.0%

4.0%

Daiwa Kodemmacho

2,060

2,110

+50

2.4%

2,460

-350

-14.2%

4.6%

4.5%

Daiwa Jimbocho

3,230

3,340

+110

3.4%

4,150

-810

-19.5%

4.4%

4.3%

Daiwa Nishishimbashi

5,330

5,510

+180

3.4%

5,000

+510

10.2%

4.1%

4.0%

Daiwa Kudan

3,270

3,360

+90

2.8%

4,000

-640

-16.0%

4.2%

4.1%

Daiwa Kayabacho Building

7,460

7,570

+110

1.5%

5,600

+1,970

35.2%

3.7%

3.6%

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

47

Appraisal Value Compared to the Previous Fiscal Period (2)(Unit: Million Yen)
Compared to
End of 20th Period(*)

Appraisal Value
Property Name
End of 20th Period

End of 21st Period Difference

ChangeAcquisition
Price

Compared to
Acquisition Price
Difference

ChangeCap Rate
20th Period 21st Period

Daiwa Jinbocho 3-chome

4,420

4,500

+80

1.8%

3,550

+950

26.8%

3.7%

3.6%

E SPACE TOWER

32,30032,500+200

0.6%

24,000+8,500

35.4%

3.6%

3.6%

Daiwa Nihonbashi Hongokucho

2,110

2,190

+80

3.8%

1,721

+469

27.3%

4.3%

4.2%

shinyon curumu

12,00012,600

+600

5.0%

9,650

+2,950

30.6%

3.6%

3.5%

Daiwa Akasaka

12,10012,500

+400

3.3%

9,200

+3,300

35.9%

3.6%

3.5%

Daiwa Shibuya Miyamasuzaka

8,040

8,580

+540

6.7%

7,000

+1,580

22.6%

3.9%

3.8%

Azabu Green Terrace

15,70015,700-0.0%

14,000+1,700

12.1%

4.1%

4.1%

Daiwa Ebisu 4-chome

5,120

5,300

+180

3.5%

4,135

+1,164

28.1%

4.0%

3.9%

LAQUAS Higashi Shinjuku

9,830

10,100

+270

2.7%

8,450

+1,650

19.5%

3.6%

3.5%

Concept Aoyama

11,20011,400

+200

1.8%

9,800

+1,600

16.3%

3.6%

3.6%

Shinsen Place

6,020

6,150

+130

2.2%

4,800

+1,350

28.1%

3.7%

3.6%

Glass City Shibuya

17,50017,500-0.0%

16,000+1,500

9.4%

3.7%

3.7%

River Gate

29,80029,900+100

0.3%

28,000+1,900

6.8%

4.3%

4.3%

Daiwa Hatchobori ekimae

3,060

3,130

+70

2.3%

2,871

+259

9.0%

3.8%

3.7%

Daiwa Hatchobori ekimae West

1,700

1,750

+50

2.9%

1,647

+103

6.3%

3.9%

3.8%

Nikko Building-

14,400--13,710

+690

5.0%

-

3.6%

Kirin Nihonbashi Building

-

8,220

-

-

8,180

+40

0.5%

-

4.1%

Daiwa Higashi-Ikebukuro

3,490

3,580

+90

2.6%

2,958

+622

21.0%

4.5%

4.4%

Daiwa Shinagawa North

5,790

5,870

+80

1.4%

7,710

-1,840-23.9%

4.6%

4.5%

Daiwa Osaki 3-chome

2,240

2,270

+30

1.3%

1,650

+620

37.6%

4.1%

4.0%

Daiwa Kamiooka

2,420

2,470

+50

2.1%

2,000

+470

23.5%

4.9%

4.8%

Integral Tower

17,50018,100+600

3.4%

15,220+2,880

18.9%

4.1%

4.0%

Meguro Place Tower

6,110

6,290

+180

2.9%

5,600

+690

12.3%

3.9%

3.8%

Daiwa Meieki

7,150

7,320

+170

2.4%

5,300

+2,020

38.1%

4.5%

4.4%

Kitahama Grand Building

11,00011,300

+300

2.7%

9,481

+1,818

19.2%

4.1%

4.0%

Total(*)

450,780

483,390+9,9902.2%

458,357+25,032

5.5%

-

-

*Difference and change in “Compared to End of the 20th Period” do not include the impact of the properties acquired in the 21st Period

48

Appraisal Value at End of Fiscal Period (1)(Unit: Million Yen)
Summary of Appraisal Report (End of 21st period)
Property Name

Appraisal Value at
End of 21st Period

Direct Capitalization Method
Value

Cap Rate

DCF Method
Discount
Rate

Value

Terminal
Cap Rate

Integrated Value

Daiwa Ginza

16,30016,6003.8%

16,0003.6%

4.0%

13,700Daiwa Ginza Annex

3,440

3,470

3.7%

3,410

3.5%

3.9%

3,550

Daiwa Shibaura

7,520

7,630

4.2%

7,470

4.0%

4.4%

6,210

Daiwa Minami Aoyama

4,360

4,410

4.1%

4,300

3.9%

4.3%

3,740

Daiwa Sarugakucho

3,340

3,390

4.7%

3,290

4.5%

4.9%

1,580

Daiwa A Hamamatsucho

3,320

3,380

4.0%

3,300

3.8%

4.2%

2,060

Daiwa Jingumae

2,290

2,310

4.0%

2,270

3.8%

4.2%

2,300

Daiwa Shibadaimon

2,900

2,980

3.9%

2,870

3.7%

4.1%

1,980

Daiwa Misakicho

2,680

2,710

4.2%

2,660

4.0%

4.4%

1,590

Daiwa Shimbashi 510

2,430

2,480

4.3%

2,370

4.1%

4.5%

1,960

Daiwa Tsukijiekimae*

1,590

1,600

4.5%

1,580

4.5%

4.7%

1,490

Daiwa Tsukiji

1,390

1,380

4.4%

1,400

4.4%

4.6%

1,350

Daiwa Tsukishima

9,170

9,270

4.4%

9,120

4.0%

4.5%

5,090

Daiwa Nihonbashi Horidomecho

2,510

2,550

4.3%

2,470

4.1%

4.5%

1,510

Daiwa Azabudai

1,830

1,860

4.2%

1,800

4.0%

4.4%

1,170

Daiwa Kyobashi

3,270

3,310

4.2%

3,230

4.0%

4.4%

1,980

Daiwa Kojimachi 4-chome

2,690

2,710

3.9%

2,670

3.7%

4.1%

3,830

Daiwa Onarimon

13,10013,4004.0%

12,8003.8%

4.2%

11,600Shinjyuku Maynds Tower**

119,000

142,000

3.5%

136,000

3.3%

3.7%

90,000SHIBUYA EDGE

4,750

4,840

4.0%

4,660

3.8%

4.2%

3,320

Daiwa Kodemmacho

2,110

2,130

4.5%

2,090

4.3%

4.7%

1,030

Daiwa Jimbocho

3,340

3,420

4.3%

3,300

4.3%

4.5%

3,200

Daiwa Nishishimbashi

5,510

5,640

4.0%

5,460

3.8%

4.2%

4,110

Daiwa Kudan

3,360

3,430

4.1%

3,350

4.1%

4.3%

3,260

Daiwa Kayabacho Building

7,570

7,700

3.6%

7,510

3.4%

3.8%

6,120

* Discount rate for Daiwa Tsukiji ekimae is that of after the 3rd fiscal year (4.4% until the 2nd fiscal year)** Appraisal value for Shinjuku Maynds Tower is indicated as 6/7 of the total appraisal value for the building. The figure regarding theoverview of appraisal report is indicated as 7/7 of the total.

49

Appraisal Value at End of Fiscal Period (2)(Unit: Million Yen)
Summary of Appraisal Report (End of 21st period)
Property Name

Appraisal Value at
End of 21st Period

Direct Capitalization Method
Value

DCF Method

Cap Rate

Discount
Rate

Value

Integrated Value

Terminal
Cap Rate

Daiwa Jinbocho 3-chome

4,500

4,600

3.6%

4,450

3.4%

3.8%

3,990

E SPACE TOWER

32,50033,1003.6%

31,8003.4%

3.8%

30,000Daiw a Nihonbashi Hongokucho

2,190

2,220

4.2%

2,170

4.0%

4.4%

1,560

shinyon curumu

12,60012,8003.5%

12,5003.3%

3.7%

12,600Daiwa Akasaka

12,50012,8003.5%

12,4003.3%

3.7%

12,500Daiw a Shibuya Miyamasuzaka

8,580

8,730

3.8%

8,420

3.6%

4.0%

9,280

Azabu Green Terrace

15,70015,8004.1%

15,6003.8%

4.2%

15,600Daiwa Ebisu 4-chome

5,300

5,270

3.9%

5,310

3.7%

4.1%

3,760

LAQUAS Higashi Shinjuku

10,10010,500

3.5%

9,940

3.3%

3.7%

10,600Concept Aoyama

11,40011,5003.6%

11,300

3.3%

3.7%

9,720

Shinsen Place

6,150

6,230

3.6%

6,120

3.5%

3.8%

3,690

Glass City Shibuya

17,50017,6003.7%

17,3003.4%

3.8%

16,900River Gate

29,90030,0004.3%

29,7004.0%

4.4%

26,900Daiwa Hatchobori ekimae

3,130

3,280

3.7%

3,070

3.5%

3.9%

3,750

Daiw a Hatchobori ekimae West

1,750

1,830

3.8%

1,720

3.6%

4.0%

1,870

Nikko Building

14,40015,1003.6%

14,100

3.4%

3.8%

13,900Kirin Nihonbashi Building

8,220

8,460

4.1%

7,980

3.9%

4.2%

7,770

Daiwa Higashi-Ikebukuro

3,580

3,640

4.4%

3,550

4.2%

4.6%

2,140

Daiwa Shinagawa North

5,870

5,980

4.5%

5,750

4.3%

4.7%

4,050

Daiwa Osaki 3-chome

2,270

2,310

4.0%

2,250

3.8%

4.2%

1,480

Daiwa Kamiooka

2,470

2,470

4.8%

2,470

4.6%

5.0%

2,190

Integral Tower

18,10018,5004.0%

17,900

3.8%

4.2%

12,200Meguro Place Tower

6,290

6,510

3.8%

6,200

3.6%

4.0%

5,870

Daiwa Meieki

7,320

7,490

4.4%

7,250

4.4%

4.6%

8,470

Kitahama Grand Building

11,30011,6004.0%

11,100

3.8%

4.2%

12,300

Total

483,390

512,920-495,730--

410,820

50

Portfolio Performance Summary (1)Fiscal Period ended Nov 2015 and May 2016 (20th and 21st FP Results by Property)
Property Name

Daiw a Ginza

Profits from property-related activities (*2)

Acquisition Price (million yen)

Daiwa Shibaura

Daiwa Minami Aoy ama

Daiwa Sarugakucho

Daiwa A Hamamatsucho

Daiwa Jingumae

14,100
3,050
8,265
4,550
3,190
2,865
2,800
20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period
13,30813,243
2,830
2,814
8,022
8,005
4,465
4,454
3,226
3,211
2,827
2,822
2,698
2,700
15,80016,300
3,260
3,440
7,350
7,520
4,250
4,360
3,270
3,340
3,220
3,320
2,230
2,290
93.9
93.9
100.0
100.0
98.7
99.1
100.0
84.8
100.0
100.0
100.0
100.0
100.0
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

Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (%)
PML (%) (*1)
Property Management Company
Number of operating days

Best Property(1) Property-related Revenues (thousand yen)

Rent (incl. common serv ice f ees)

Other Revenues (*3)(2) Property-related Expenses( thousand yen)

Administrativ e Expenses
Utility Charges
Property Management Fee
Tax and Public Due
Non-lif e Insurance Costs
Repair Expenses
Other Expenses(3) NOI (=(1)-(2)) (*4) (thousand y en)
Annualized NOI (thousand y en)

NOI Yield (*5)
(Reference) Depreciation and amortization (thousand yen)Repair Work (thousand y en)
Proceeds from Amortization of Leasehold andSecurity (thousand yen)

Daiwa Ginza Annex

Best Property

Xy max AlphaBest Property

Property Partners

Best Property

Best Property

183
382,686
382,686
095,83014,66828,9005,760
28,007439
6,213
11,841
286,855
572,143
4.3%
70,3890183
388,955
388,955
098,811
13,95424,964
5,871
28,001447
13,73011,841
290,143578,702
4.4%
70,3380183
92,412
92,412
0
23,890
3,992
6,889
1,386
9,106
101
2,414
0
68,522
136,670
4.8%
17,8630183
89,01889,0180
22,259
5,347
5,910
1,346
9,097
104
453
0
66,759133,154
4.7%
17,9450183
240,003
238,616
1,386
68,631
12,457
22,626
3,627
19,626407
9,884
0
171,372
341,807
4.3%
25,485436

183
245,293
243,550
1,743
66,994
12,95519,9803,694
19,598408
10,33720
178,298
355,623
4.4%
25,736337

183
127,439
123,977
3,462
28,409
4,852
8,757
2,010
11,874151763
099,030
197,519
4.4%
13,0590

183
123,516
123,516030,263
3,733
6,440
1,852
11,849163
6,224
093,252
185,995
4.2%
13,3910183- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)
83,213
165,971
5.1%- (*6)- (*6)

183- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)
84,830169,197
5.3%- (*6)- (*6)

183
132,499
132,499
060,161
8,334
9,884
1,987
8,785
186
1,583
29,40072,337
144,280
5.1%
14,5710

183
131,581
131,581
058,694
8,359
8,960
2,017
8,773
190
992
29,40072,886145,374
5.2%
15,0720

183
71,01671,0160
18,362
2,819
6,330
1,409
6,365
83
1,347
7
52,653105,019
3.9%
7,462
0

183
71,486
71,4860
16,067
2,873
5,162
1,200
6,365
88
370
7
55,418110,535
4.1%
7,621
0

0

0

0

0

0

0

0

0

- (*6)- (*6)

0000(*1) Sompo Risk Care Management Inc. has prepared the PML for the 21st fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2016).
(*2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(*3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*4) (3) NOI in this table is calculated by adjusting the 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.
(*5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(*6) Not disclosed due to tenant's request.

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

51

Portfolio Performance Summary (2)Fiscal Period ended Nov 2015 and May 2016 (20th and 21st FP Results by Property)
Property Name

Daiw a Shibadaimon

Profits from property-related activities (*2)

Acquisition Price (million yen)

Daiw a Shimbashi 510

Daiw a Tsukijiekimae

Daiw a Tsukiji

Daiw a Tsukishima

Daiwa Nihonbashi Horidomecho

2,578
2,346
2,080
1,560
1,240
7,840
2,520
20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period
2,398
2,389
2,196
2,185
2,131
2,134
1,354
1,341
1,172
1,164
7,006
6,952
2,496
2,485
2,860
2,900
2,680
2,680
2,420
2,430
1,550
1,590
1,360
1,390
9,080
9,170
2,450
2,510
100.0
100.0
100.0
100.0
99.6
88.0
100.0
100.0
89.2
89.2
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

Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (%)
PML (%) (*1)
Property Management Company
Number of operating days

Best Property(1) Property-related Revenues (thousand yen)

Rent (incl. common serv ice f ees)

Other Revenues (*3)(2) Property-related Expenses( thousand yen)

Administrativ e Expenses
Utility Charges
Property Management Fee
Tax and Public Due
Non-lif e Insurance Costs
Repair Expenses
Other Expenses(3) NOI (=(1)-(2)) (*4) (thousand y en)
Annualized NOI (thousand y en)

NOI Yield (*5)
(Reference) Depreciation and amortization (thousand yen)Repair Work (thousand y en)
Proceeds from Amortization of Leasehold andSecurity (thousand yen)

Daiw a Misakicho

Property Partners

MS Building Support

183
85,67085,670024,111
5,771
7,877
1,287
6,257
116
2,799
0
61,559122,782
5.1%
9,576
0

183
84,201
84,201
0
19,631
5,641
6,199
1,265
6,239
130
154
0
64,570128,789
5.4%
9,643
0

Best Property183- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)
63,294
126,242
5.7%- (*6)- (*6)

183- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)
61,321
122,307
5.6%- (*6)- (*6)

183
85,07485,0740
19,254
3,943
7,403
1,276
5,706
116
807
0
65,819131,278
6.2%
7,594
0

183
78,38578,385030,784
4,913
5,988
1,224
5,704
133
12,80118
47,60094,941
4.4%
7,682
0

183
56,471
56,4710
16,421
2,998
6,604
1,200
5,074
98
427
18
40,04979,8805.9%
13,4600183
55,72455,724026,205
3,100
5,740
1,200
5,072
104
10,96818
29,51958,877
4.4%
13,4930

Xy max Alpha

183
45,66045,660014,988
2,374
3,208
1,200
3,869
58
4,277
0
30,672
61,177
5.2%
7,230
0

183
45,38945,3890
10,685
2,617
2,663
1,200
3,866
67
271
0
34,703
69,217
5.9%
7,295
0

Property Partners

183
283,096
283,096054,207
8,151
27,062
4,255
13,639305793
0228,889
456,527
6.5%
53,9840183
274,707274,7070
47,552
7,885
21,372
4,143
13,681309
160
0227,154453,068
6.5%
53,6150Best Property

183
81,633
81,6330
18,974
3,906
5,748
1,281
6,720
129
1,187
0
62,658
124,974
5.0%
14,1930183
82,80682,806
0
18,760
3,927
5,289
1,275
6,706
141
1,420
0
64,045
127,740
5.1%
14,072000- (*6)- (*6)

0

0

0

0

0

0

0

0

0

0

(*1) Sompo Risk Care Management Inc. has prepared the PML for the 21st fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2016).
(*2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(*3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*4) (3) NOI in this table is calculated by adjusting the 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.
(*5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(*6) Not disclosed due to tenant's request.

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

52

Portfolio Performance Summary (3)Fiscal Period ended Nov 2015 and May 2016 (20th and 21st FP Results by Property)
Property Name

Daiw a Azabudai

Profits from property-related activities (*2)

Acquisition Price (million yen)

Daiwa Kojimachi 4-chome

Shinjyuku Maynds Tower

Daiw a Onarimon

SHIBUYA EDGE

Daiw a Kodemmacho

1,600
3,460
2,910
13,860133,800
5,900
2,460
20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period
1,543
1,536
3,313
3,300
2,851
2,865
13,47813,449130,383
130,157
5,724
5,708
2,409
2,400
1,750
1,830
3,180
3,270
2,670
2,690
12,80013,100116,000
119,000
4,650
4,750
2,060
2,110
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
96.1
98.8
100.0
100.0
100.0
100.0
6.64
6.64
4.51
4.51
6.19
6.19
3.89
3.89
2.03
2.03
1.56
1.56
4.19
4.19

Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (%)
PML (%) (*1)
Property Management Company
Number of operating days

Best Property(1) Property-related Revenues (thousand yen)

Rent (incl. common serv ice f ees)

Other Revenues (*3)(2) Property-related Expenses( thousand yen)

Administrativ e Expenses
Utility Charges
Property Management Fee
Tax and Public Due
Non-lif e Insurance Costs
Repair Expenses
Other Expenses(3) NOI (=(1)-(2)) (*4) (thousand y en)
Annualized NOI (thousand y en)

NOI Yield (*5)
(Reference) Depreciation and amortization (thousand yen)Repair Work (thousand y en)
Proceeds from Amortization of Leasehold andSecurity (thousand yen)

Daiw a Kyobashi

Best Property

Best Property

Xy max Alpha

Xy max Alpha

Xy max Alpha

Property Partners

183
53,47953,4790
12,495
2,417
3,745
1,200
4,912
81
138
0
40,98381,743
5.3%
8,594
0

183
57,46756,087
1,380
18,274
2,531
3,300
1,200
4,911
79
6,252
0
39,19378,172
5.1%
8,677
0

183
98,50398,503
0
23,964
4,480
8,877
1,465
7,120
135
1,885
0
74,539148,671
4.5%
19,5360

183
97,01997,0190
28,485
5,519
7,870
1,461
7,114
138
6,382
0
68,534
136,694
4.1%
19,7390

183
91,41991,419033,336
4,489
8,126
1,395
14,948136
4,239
058,083
115,849
4.1%
11,5100183
90,73490,734028,854
4,491
6,228
1,352
14,935154
1,690
061,880123,422
4.3%
11,8430183
331,178
331,178082,283
12,72427,353
3,403
34,931420
3,450
0248,894
496,429
3.7%
30,6200183
337,495
337,495
080,572
12,53522,702
3,376
34,928429
6,601
0256,922
512,441
3.8%
30,8900183
2,557,822
2,537,759
20,063796,808
134,431
293,383
17,736247,173
3,705
92,547
7,831
1,761,013
3,512,404
2.7%
383,3150183
2,455,214
2,455,214
0736,482
144,591
271,207
17,354
247,651
3,938
47,6394,098
1,718,732
3,428,072
2.6%
380,8070

183
115,426
115,426
0
24,926
6,292
8,119
1,739
7,250
109
1,416
0
90,499180,504
3.2%
16,1820

183
114,261
114,261
0
21,566
5,160
6,905
1,718
7,250
112
419
0
92,695
184,884
3.2%
16,2070183
64,34064,340014,449
2,852
5,302
1,200
3,637
86
548
822
49,891
99,510
4.1%
9,331
0

183
63,626
63,6260
13,148
2,853
4,470
1,200
3,637
100
63
822
50,477
100,679
4.2%
9,356
0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

(*1) Sompo Risk Care Management Inc. has prepared the PML for the 21st fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2016).
(*2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(*3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*4) (3) NOI in this table is calculated by adjusting the 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.
(*5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.

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

53

Portfolio Performance Summary (4)Fiscal Period ended Nov 2015 and May 2016 (20th and 21st FP Results by Property)
Property Name

Daiw a Jimbocho

Profits from property-related activities (*2)

Acquisition Price (million yen)

Daiw a Kudan

Dai wa Kayabacho Bui l di ng

Daiwa Jinbocho 3-chome

E SPACE TOWER

Daiwa Nihonbashi Hongokucho

4,150
5,000
4,000
5,600
3,550
24,000
1,721
20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period
4,101
4,080
4,877
4,845
3,828
3,803
5,395
5,369
3,469
3,450
23,703
23,664
1,653
1,641
3,230
3,340
5,330
5,510
3,270
3,360
7,460
7,570
4,420
4,500
32,30032,500
2,110
2,190
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
5.05
5.05
3.76
3.76
5.51
5.51
4.50
4.50
5.33
5.33
3.11
3.11
3.80
3.80

Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (%)
PML (%) (*1)
Property Management Company
Number of operating days

Japan Property Solutions(1) Property-related Revenues (thousand yen)

Rent (incl. common serv ice f ees)

Other Revenues (*3)(2) Property-related Expenses( thousand yen)

Administrativ e Expenses
Utility Charges
Property Management Fee
Tax and Public Due
Non-lif e Insurance Costs
Repair Expenses
Other Expenses(3) NOI (=(1)-(2)) (*4) (thousand y en)
Annualized NOI (thousand y en)

NOI Yield (*5)
(Reference) Depreciation and amortization (thousand yen)Repair Work (thousand y en)
Proceeds from Amortization of Leasehold andSecurity (thousand yen)

Daiw a Nishishimbashi

Xy max Alpha

Japan Property Solutions

Property Partners

Japan Property Solutions

Xy max AlphaMS Building Support

183
103,301
103,301
0
27,034
5,614
8,108
1,200
10,910141
1,019
40
76,266
152,116
3.7%
21,4620

183
103,433
103,433
0
26,112
5,247
7,324
1,200
10,894
144
1,038
263
77,321
154,220
3.8%
21,5010

183
147,221147,221046,34913,65912,062
1,940
15,751240
2,694
0100,872
201,193
4.1%
33,9440183
156,566
156,566
045,98916,7809,697
2,072
15,736244
1,455
3
110,577
220,549
4.6%
34,0060183
88,30878,796
9,512
33,915
8,608
8,339
1,391
8,750
119
6,706
0
54,393
108,4882.8%
24,5243,900

183
98,947
98,947
023,416
4,236
6,517
1,514
8,747
120
2,280
0
75,530150,648
4.0%
24,7310183- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)
148,234
295,658
5.5%- (*6)- (*6)

183- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)
144,399
288,009
5.4%- (*6)- (*6)

183
111,538
111,538
0
26,545
5,998
8,249
1,703
9,397
124
1,070
0
84,993
169,5214.9%
19,7240

183
110,547
110,547
023,659
5,636
6,637
1,661
9,395
127
200
0
86,887173,299
5.0%
19,7510

183
777,230
777,2300169,901
39,36757,723
7,882
56,895655
7,305
72
607,328
1,211,338
5.1%
64,4640

183
785,083785,0830
164,477
43,28645,927
7,855
56,893
672
9,342
500
620,606
1,237,820
5.2%
64,9210

183
55,91855,9180
14,128
3,580
3,576
1,200
4,421
76
1,274
0
41,79083,3525.0%
13,1600183
60,57960,5790
13,905
4,424
3,373
1,200
4,420
77
410
0
46,67493,093
5.7%
13,169
0

0

0

0

0

0

0

- (*6)- (*6)

0

0

0

0

0

0

(*1) Sompo Risk Care Management Inc. has prepared the PML for the 21st fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2016).
(*2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(*3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*4) (3) NOI in this table is calculated by adjusting the 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.
(*5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(*6) Not disclosed due to tenant's request.

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

54

Portfolio Performance Summary (5)Fiscal Period ended Nov 2015 and May 2016 (20th and 21st FP Results by Property)
shinyon curumu

Property Name

Profits from property-related activities (*2)

Acquisition Price (million yen)

Azabu Green Terrace

Daiw a Ebisu 4-chome

LAQUAS Higashi Shinjuku

9,650
4,500
9,200
7,000
14,0004,135
8,450
20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period
9,847
9,811
4,484
9,411
9,385
7,207
7,233
14,286
14,239
4,288
4,275
8,642
8,610
12,00012,6006,380
12,10012,5008,040
8,580
15,70015,700
5,120
5,300
9,830
10,100
100.0
100.0
91.9
88.4
100.0
100.0
100.0
100.0
94.9
100.0
100.0
100.0
100.0
4.44
4.44
3.77
7.14
7.14
5.64
5.64
2.67
2.67
2.44
2.44
4.46
4.46

Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (%)
PML (%) (*1)
Property Management Company
Number of operating days

MS Building Support(1) Property-related Revenues (thousand yen)

Rent (incl. common serv ice f ees)

Other Revenues (*3)(2) Property-related Expenses( thousand yen)

Administrativ e Expenses
Utility Charges
Property Management Fee
Tax and Public Due
Non-lif e Insurance Costs
Repair Expenses
Other Expenses(3) NOI (=(1)-(2)) (*4) (thousand y en)
Annualized NOI (thousand y en)

NOI Yield (*5)
(Reference) Depreciation and amortization (thousand yen)Repair Work (thousand y en)
Proceeds from Amortization of Leasehold andSecurity (thousand yen)

Daiwa Daiwa Shibuya Miyamasuzaka

Daiw a Akasaka

Daiwa Shibuya Dogenzaka (*6)

Best Property

Xy max Alpha

Japan Property Solutions

Best Property

MS Building Support

ITOCHU Urban Community

183
309,245309,245083,01420,00525,474
3,188
33,625330390
0226,231451,226
4.6%
35,8300183
326,200
326,200
0
78,05518,927
21,251
3,226
33,622
334
669
25
248,144494,932
5.0%
35,8340183
151,462
147,462
4,000
50,036
10,635
14,6091,738
13,589212
9,251
0101,426
202,298
4.5%
17,8644,000

12293,374
93,374045,344
7,724
10,312
1,060
20,128143
5,976
0
48,03015,1440183
296,961
296,961
0147,998
33,082
43,5303,266
33,109429
34,5790148,962
297,111
3.2%
25,6170183
311,393311,393098,59622,38334,721
3,396
33,101
433
4,361
200
212,796
424,430
4.5%
26,9330183
227,895
227,895
068,37021,50018,026
2,741
19,980300
5,797
24
159,524
318,176
4.4%
22,4060183
233,581
233,581067,18020,995
15,811
2,825
19,977303
7,207
60
166,400
331,892
4.6%
23,3570183452,934
452,934
0
124,520
28,50451,783
3,982
31,865615
7,769
0
328,414655,033
4.6%
50,2860183
458,576
413,576
45,000124,372
37,45543,614
3,613
31,841
616
7,101
130
334,204
666,582
4.7%
50,3910183- (*7)- (*7)- (*7)- (*7)- (*7)- (*7)- (*7)- (*7)- (*7)- (*7)- (*7)-39,117-78,020-1.8%- (*7)- (*7)

183- (*7)- (*7)- (*7)- (*7)- (*7)- (*7)- (*7)- (*7)- (*7)- (*7)- (*7)
39,40778,6001.8%- (*7)- (*7)

183
227,234
227,234
051,157
10,71917,802
1,277
20,227316
654
158
176,076
351,191
4.1%
32,2900183
225,363
225,363047,006
10,202
13,753
1,200
20,342
319
1,031
158
178,357
355,739
4.1%
32,290
0

0

0

0

0

0

0

0

0

0

0

- (*7)- (*7)

00(*1) Sompo Risk Care Management Inc. has prepared the PML for the 21st fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2016).
(*2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(*3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*4) (3) NOI in this table is calculated by adjusting the 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.
(*5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(*6) Properties sold in the 21st fiscal period..
(*7) Not disclosed due to tenant's request.

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

55

Portfolio Performance Summary (6)Fiscal Period ended Nov 2015 and May 2016 (20th and 21st FP Results by Property)
Property Name

Concept Aoyama

Profits from property-related activities (*2)

Glass City Shibuya

River Gate

Daiwa Hatchobori ekimae

Nikko Building

Daiwa Hatchobori ekimae West16,00028,000
2,871
9,800
4,800
1,647
13,71020th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period
10,056
10,045
4,922
4,915
16,12416,09428,21828,190
2,984
2,974
1,713
1,709
13,983
11,20011,4006,020
6,150
17,50017,50029,80029,900
3,060
3,130
1,700
1,750
14,400
100.0
91.4
100.0
100.0
100.0
100.0
95.3
98.6
100.0
100.0
100.0
100.0
99.3
4.42
4.42
6.21
6.21
1.61
1.61
1.76
1.76
5.89
5.89
7.03
7.03
4.32

Acquisition Price (million yen)Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (%)
PML (%) (*1)
Property Management Company
Number of operating days
(1) Property-related Revenues (thousand yen)

Rent (incl. common serv ice f ees)

Other Revenues (*3)(2) Property-related Expenses( thousand yen)

Administrativ e Expenses
Utility Charges
Property Management Fee
Tax and Public Due
Non-lif e Insurance Costs
Repair Expenses
Other Expenses(3) NOI (=(1)-(2)) (*4) (thousand y en)
Annualized NOI (thousand y en)

NOI Yield (*5)
(Reference) Depreciation and amortization (thousand yen)Repair Work (thousand y en)
Proceeds from Amortization of Leasehold andSecurity (thousand yen)

Shinsen PlaceMS Building Support

MS Building Support

183
209,064
209,064
029,39915,672
9,390
2,302
0
159
1,873
0
179,665
358,349
3.6%
17,1480183
241,533
215,914
25,61833,332
9,922
8,226
2,420
0
162
12,5990
208,201
415,264
4.1%
17,4368,270

183- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)
125,645
250,604
5.1%- (*6)- (*6)

183- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)
131,248
261,778
5.3%- (*6)- (*6)

Xy max Alpha

183
394,788384,989
9,798
54,461
14,33934,451
4,207
229
377
856
0
340,326
678,792
4.2%
32,1700183
384,623
370,957
13,66651,025
16,41825,747
4,474
333
379
3,671
0
333,598
665,374
4.1%
32,1880Best Property

182881,914869,586
12,328233,395
105,978
105,942
8,858
18
1,813
10,71569
648,519
1,300,601
4.6%
148,0991,118

183
935,993
932,951
3,041
286,985
80,447132,117
9,339
68
1,858
63,033120
649,007
1,294,469
4.6%
152,338406

ITOCHU Urban Community ITOCHU Urban Community

81
34,02634,026
0
6,128
3,340
1,851
534
8
58
300
34
27,898125,715
4.2%
4,969
0

183
78,26678,266
0
15,739
6,304
6,982
1,240
46
133
987
46
62,527
124,713
4.2%
9,955
0

81
19,07019,070
0
4,566
2,380
953
533
8
30
625
34
14,50465,357
3.8%
2,067
0

183
44,90144,901
0
9,321
3,443
3,668
1,200
15
68
915
10
35,58070,965
4.2%
4,140
0

MS Building Support-

64
85,05085,050
0
8,789
4,765
3,190
713
8
110
0
1
76,260434,922
3.1%
8,667
0

0

0

- (*6)- (*6)

0

0

9,360

239

0

0

0

0

-

0

(*1) Sompo Risk Care Management Inc. has prepared the PML for the 21st fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2016).
(*2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(*3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*4) (3) NOI in this table is calculated by adjusting the 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.
(*5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(*6) Not disclosed due to tenant's request.

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

56

Portfolio Performance Summary (7)Fiscal Period ended Nov 2015 and May 2016 (20th and 21st FP Results by Property)
Property Name

Kirin Nihonbashi Building Daiwa Higashi-Ikebukuro Daiwa Shinagawa North

Profits from property-related activities (*2)

Acquisition Price (million yen)

Integral Tow er

Daiw a Kamiooka

Meguro Place Tow er

7,710
1,650
2,000
15,220
5,600
8,180
2,958
20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period
8,326
2,745
2,727
7,293
7,267
1,660
1,649
1,993
1,975
15,183
15,113
5,639
5,616
8,220
3,490
3,580
5,790
5,870
2,240
2,270
2,420
2,470
17,50018,100
6,110
6,290
100.0
100.0
100.0
100.0
100.0
100.0
78.9
100.0
89.8
99.5
99.5
100.0
100.0
5.76
3.55
3.55
7.19
7.19
6.14
6.14
6.29
6.29
1.18
1.18
1.68
1.68

Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (%)
PML (%) (*1)
Property Management Company
Number of operating days

Japan Property Solutions(1) Property-related Revenues (thousand yen)

Rent (incl. common serv ice f ees)

Other Revenues (*3)(2) Property-related Expenses( thousand yen)

Administrativ e Expenses
Utility Charges
Property Management Fee
Tax and Public Due
Non-lif e Insurance Costs
Repair Expenses
Other Expenses(3) NOI (=(1)-(2)) (*4) (thousand y en)
Annualized NOI (thousand y en)

NOI Yield (*5)
(Reference) Depreciation and amortization (thousand yen)Repair Work (thousand y en)
Proceeds from Amortization of Leasehold andSecurity (thousand yen)

Daiw a Osaki 3-chome

Best Property

Best Property

Xy max Alpha

Xy max Alpha

Xy max Alpha

Xy max Alpha-6- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)
5,879
357,659
4.3%- (*6)- (*6)

183
117,523
117,523
035,396
9,073
13,068
1,778
8,658
233
2,585
0
82,126
163,804
6.0%
23,2570

183
122,206
122,206
0
34,991
8,922
12,192
1,833
8,594
228
3,220
0
87,215
173,953
6.4%
23,3090183
178,507
178,5070
59,552
16,055
17,965
2,708
18,520354
3,939
9
118,955
237,260
3.3%
33,6810

183
189,574
188,044
1,530
57,61013,33015,1072,846
18,442351
7,531
0
131,964
263,208
3.6%
33,772
1,530

183
54,847
54,8470
12,282
2,430
3,833
1,200
3,903
69
845
0
42,56584,897
5.1%
11,2320183
60,99960,9990
13,041
2,497
2,977
1,200
3,903
70
2,392
0
47,95795,653
5.8%
11,3420183
83,882
83,882
0
19,229
4,434
6,751
1,200
6,358
118
366
0
64,653
128,952
6.5%
17,8540

183
89,082
89,082
0
19,671
4,444
6,873
1,200
6,357
121
654
18
69,410138,441
7.0%
17,8640

183
581,096
581,0960226,405
46,64384,585
6,434
44,231894
43,434
180
354,690
707,443
4.7%
92,3590

183
576,531576,5310
293,764
45,63674,437
6,356
44,206
900
121,846380
282,767
563,988
3.7%
93,9910

183
146,812
146,8120
20,555
7,601
10,771
1,835
36
177
132
0
126,256
251,823
4.5%
22,5360183
138,929
138,9290
22,30010,308
8,635
2,000
187
179
85
905
116,628
232,620
4.1%
22,5620-- (*6)

0

0

0

0

0

0

0

0

0

0

0

0

(*1) Sompo Risk Care Management Inc. has prepared the PML for the 21st fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2016).
(*2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(*3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*4) (3) NOI in this table is calculated by adjusting the 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.
(*5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(*6) Not disclosed due to tenant's request.

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

57

Portfolio Performance Summary (8)Fiscal Period ended Nov 2015 and May 2016 (20th and 21st FP Results by Property)
Property Name

Daiw a Meieki

Daiwa Minami-Senba (*6)

Kitahama Grand Building

Total (*7)

Profits from property-related activities (*2)

Acquisition Price (million yen)

4,810
5,300
9,481
445,777
458,357
20th Period 21st Period 20th Period 21st Period 20th Period 21st Period 20th Period 21st Period
4,679
5,350
5,315
9,521
9,468
439,123
451,114
2,660
7,150
7,320
11,00011,300459,820
483,390
100.0
100.0
100.0
100.0
100.0
98.3
98.7
5.25
10.31
10.31
3.48
3.48
1.98
2.03

Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (%)
PML (%) (*1)
Property Management Company
Number of operating days

Japan Property Solutions(1) Property-related Revenues (thousand yen)

Rent (incl. common serv ice f ees)

Other Revenues (*3)(2) Property-related Expenses( thousand yen)

Administrativ e Expenses
Utility Charges
Property Management Fee
Tax and Public Due
Non-lif e Insurance Costs
Repair Expenses
Other Expenses(3) NOI (=(1)-(2)) (*4) (thousand y en)
Annualized NOI (thousand y en)

NOI Yield (*5)
(Reference) Depreciation and amortization (thousand yen)Repair Work (thousand y en)
Proceeds from Amortization of Leasehold andSecurity (thousand yen)

Xy max Alpha

Japan Property Solutions

183
90,64390,643041,321
14,45012,684
1,406
10,508237
2,033
049,322
98,3752.1%
32,3260

134
74,06874,0680
36,184
8,169
10,206
1,129
16,40618290
037,88426,9940183
250,848
250,848
061,50318,36918,576
3,015
20,153390
999
0189,344377,6547.1%
35,0080183
249,751
249,751
061,812
18,572
15,8102,989
20,152394
3,893
0
187,938
374,850
7.1%
35,0200183
326,358
326,358
099,314
20,25440,0704,896
32,935595
465
96
227,043452,846
4.8%
53,179
0

0

0

0

0

0

183
183
183
337,322 11,837,995 12,039,783
337,322 11,777,301 11,947,802
060,694
91,98095,792 3,320,246 3,285,902
19,897755,329
732,458
33,183 1,159,084 1,051,126
5,059
134,268
136,240
32,935883,293895,922599
16,633
17,2504,020
320,996403,75896
50,64049,144
241,529 8,517,749 8,753,880
481,739 17,102,560 17,917,318
5.1%
3.9%
4.0%
53,184 1,703,685 1,726,073
0
9,455
10,543
0

9,360

239

(*1) Sompo Risk Care Management Inc. has prepared the PML for the 21st fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2016).
(*2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(*3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*4) (3) NOI in this table is calculated by adjusting the Tax and Public Due for the “NOI (after deduction of gain on sale)”aforementioned in the Appendix “Major Financial Data” so the figures do notmatch.
(*5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value (including properties sold during the period).
(*6) Properties sold in the 21st fiscal period..
(*7) Properties sold during the 21st FP are not included in the annualized NOI and NOI yield for the 21st FP. The portfolio total in (2) property-related expenses does not include costs related to theInvestment Corporation. Acquisition price is the total sum of those of portfolio properties at the end of each period.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

58

Overview of Asset Management Company (1)Directors

Company Overview(As of July 31, 2016)

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

Akira Yamanouchi

Board of Directors

9
Executive directors: 4 / Executive auditors: 1
Non-executive directors: 2 / Non-executive
auditors: 2

No. of Employees

67 (excluding dispatched employees)

Registered Financial
Instruments Firm

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

Building Lots andBuildings Transaction
License No. (3)-83920, Governor of Tokyo
Business License
Discretionary Agent for
License No. 34, Minister of Land, Infrastructure,
Real Estate Transaction
Transport and Tourism
Approval
Member of The Investment Trusts Association,
Japan
Member of Japan Investment Advisers
Association Membership
Association
Member of Type II Financial Instruments Firms
Association(As of July 31, 2016)

President andRepresentative Director
Vice President andRepresentative Director
Vice President andRepresentative Director

Akira Yamanouchi
Yuji Shinotsuka
Yoshiki Nishigaki

Director

Naoyuki Owa

Director (non-executive)

Mikita Komatsu

Director (non-executive)

Akihiko Ogino

AuditorTamaki Shibayama

Auditor (non-executive)

Masamori Matsuda

Auditor (non-executive)

Shinji Kiso

REITs which entrust the asset management to the Asset Management Company(As of July 31, 2016)

Daiwa Office Investment
Corporation

Listed REIT focusing on office buildings
Asset size: approximately 467.7 billion yen(53 properties)

Daiwa Residential Private
Investment Corporation

Unlisted REIT focusing on residential properties
Asset size: approximately 84.5 billion yen(51 properties)

Nippon Healthcare
Investment Corporation

Japan’s first listed REIT focusing on healthcare
facilities
Asset size: approximately 18.6 billion yen (21properties)

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

59

Overview of Asset Management Company (2)Organization Chart
Shareholders’ Meeting
Corporate Auditors
Board of Directors
Compliance Committee
Investment Committee(*)*Set up separately for each
investment corporation

Compliance Officer
President andRepresentative Director
Internal Control OfficeAcquisition
Department

Origination
Department

Asset
Management
Department

Private FundManagement
Department

Customer
Relations
Department

Finance
Department

Administration
Department

Office Investment
Team

Office Management
Team

Finance Team

Residential
Investment Team

Residential
Management Team

Accounting Team

Healthcare
Management TeamManagement
Team

Healthcare Investment
Team
Infrastructure
Investment teamCorporate
Planning
Department

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

60

Support System Backed by Daiwa Securities Group
Daiwa Securities Group’s Commitment to the asset management business

Daiwa Securities Group upholds “expansion of the real estate asset management business” in its medium-term management plan and aims tostrategically reinforce the business over the mid-to-long-term.
●Daiwa Securities Group’s Commitment in asset management business
Daiwa Securities Group Inc. upholds “expansion of the real estate asset management business” in Daiwa Securities Group’s medium-term management
plan “Passion for the Best” 2017.
Stance Towards Investments for Growth

Action Plan for Asset Management Division for FY2016

Overview of the Daiwa Securities Group
Company Name

Daiwa Securities Group, Inc.

Market Capitalization

1. Strengthen the management structure and target performance.
2. Develop products suitable for expanding the investor base and long-term asset
building.
3. Expanded products that meet the needs of clients and enhance support

Approx. 940.2 billion yen (as of the end of June2016) (Note 1)(Securities code: 8601)

No. of Employees

15,637 (as of the end of June 2016, No. of
employees at the Group companies)

Commencementof Operations

April 26, 1999 (Note 1)

Assets under Custody

48.7 trillion yen (as of the end of June 2016)(Note 2)

Representative
Director

Takashi Hibino, President and CEO(Note 1)

4. Further accomplish and thoroughly enforce fiduciary duty

Address

5. Further reinforce the real estate asset management business.

(Note 1) Daiwa Securities Group, Inc.
(Note 2) Daiwa Securities Co., Ltd.

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

No. of Shops
No. of Cash Management
Service Accounts

144 (as of the end of June 2016) (Note 2)
3,838,000 accounts (as of the end of June 2016)(Note 2)This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

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Competitive Edge
█ Establish highly-transparent business structure Strictly control conflicts of interest with sponsor
 Introduce financial institutions’ rigorous compliance framework
 Ensure high transparency and establish disciplined investment process█ Expand network of collaboration with the Daiwa Securities Group Reduce financing costs and remarkably expand financing capacity by capitalizing on the credit capability of the Daiwa

Securities Group Reinforce leasing activities by capitalizing on the network of the Daiwa Securities Group Improve sourcing capacity by capitalizing on the network of the Daiwa Securities Group█ Secure well-experienced, highly-professional human resources Develop team of outstanding professional staff by capitalizing on the human resources of the Daiwa Securities Group Employ excellent human resources from outside by drawing on the Daiwa Securities Group’s brand power Secure number of employees with a high level of motivation to challenge new business stages

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

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