July 13, 2010

Earnings Announcement
for the 9th Fiscal Period(Fiscal Period Ended May 2010)

This
This document
document isis provided
provided forfor informational
informational purposes
purposes andand should
should not
not bebe construed
construed as
as anan offer
offer oror
solicitation
solicitation ofof an
an offer
offer toto buybuy oror sellsell any
any specificspecific product,
product, including
including investment
investment units.
units. We
We adviseadvise you
you totoinquireinquire with
with each
each securities
securities company
company with
with regards
regards toto thethe purchasepurchase ofof DA
DA Office
Office Investment
Investment
Corporation’s
investment
units.
Corporation’s investment units.
This
This document
document is
is notnot intended
intended toto provide
provide information
information meeting
meeting thethe requirements
requirements ofof Japan’sJapan’s new
new
Financial
Financial Instruments
Instruments andand Exchange
Exchange Law
Law oror Investment
Investment Trust
Trust andand Investment
Investment Corporation
Corporation Law,
Law, or
or by
by
the
associatedcabinetorders,cabinetofficeordinances,orrules,
or
by
the
rules
governing
companies
the associated cabinet orders, cabinet office ordinances, or rules, or by the rules governing companies
listedlisted onon thethe Tokyo
Tokyo Stock
Stock Exchange,
Exchange, oror anyany otherother applicableapplicable rules,
rules, nor
nor isis itit aa disclosure
disclosure document
document oror
statement
statement ofof financial
financial performance
performance preparedprepared inin accordance
accordance with
with thethe provisions
provisions ofof anyany ofof thethe foregoing.
foregoing.
This
This document
document contains
contains forward-looking
forward-looking statements.
statements. However,
However, these
these forward-looking
forward-looking statements
statements are
are
based
on
certainassumptions
andjudgments
made
using
currently
available
information,
and
there
based on certain assumptions and judgments made using currently available information, and there areare
aa number
of
known
and
unknownrisks
anduncertainties.
These
forward-looking
statementsarenotnumber of known and unknown risks and uncertainties. These forward-looking statements are not aa
guarantee
guarantee ofof future
future performance
performance oror management
management results,
results, andand actual
actual results
results may
may differ
differ materiallymaterially fromfromany
explicitor
implicit
forecasts
containedherein.
any explicit or implicit forecasts contained herein.
Although
Although thethe information
information contained
contained inin thisthis document
document isis thethe best
best available
available at
at thethe timetime ofof publication,
publication, nonoassurances
can
be
given
regardingtheaccuracy
andcertaintyof
this
information.
The
contentof
thisassurances can be given regarding the accuracy and certainty of this information. The content of thisdocument
document can
can bebe modified
modified oror withdrawn
withdrawn without
without priorprior notice.
notice.

Every property which changes its building name is described under a new name in this presentation material.
As for the details of the date of change etc., please look at page 35 in this presentation material.
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. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

1

Contents
1 Performance Highlights and Forecasts

4 Financial Strategy

 9th Fiscal Period Topics

 Status of Interest-bearing Liabilities

 Issue and Activities of the Investment Corporation
 Financial Highlights of the 9th Fiscal Period
 Highlights of Forecasts for the 10th and 11th Fiscal

4
5
6
7

 Collateral Situation
 Unitholder
 Competitive Edges
 Branding Strategy

Periods

5 Appendix

2 Internal Growth Portofolio Map
 Factor Analyses of Changes in Leasing Income
 Status of Shinjyuku Maynds Tower
 Properties Subject to Leasing Improvement
 Case Example of Leasing Activities Summary of Results for the 9th Fiscal Period

9
10
12
13
14

 Forecasts (10 Current Portfolio and Acquisition Policy
 Sousing Strategies
 Progress on Property Acquisitionsthth

and 11 Fiscal Periods)
 Major Financial Data Interest-bearing Liabilities
 List of property to change name Appraisal Values at End of Period Portfolio Performance Summary Organization of the Asset Management Company
 IR Calendar / Website
 9th Fiscal Period Major Investors
 Arrangement with Columbus

3 External Growth The Real Estate Market and Property Acquisitions

22
24
25
26
27

16
17
18
19

2

29
32
33
34
35
36
38
43
44
45
46

Performance Highlights
1 and Forecasts(From December 1, 2009 to May 31, 2010)3

9th Fiscal Period Topics
9th Fiscal Period Topics
 During the 9th Fiscal Period, while leaving by 2 out of the top 10 large tenants caused the occupancy rate to fall, newtenants moved in the vacated spaces. As a result the occupancy rate at the end of the 9th Fiscal Period was 85.7%
 In March 2010, Daiwa Jimbocho Building (formerly, ORIX Jimbocho Building) was acquired for 4.15 billion yen
 In February 2010, 5.5 billion yen was refinanced and newly borrowed from 2 regional banks
 As part of efforts to promote diversification of financing means, filed a shelf registration statement for investment
corporation bonds in March 2010 and issued investment corporation bonds in June 2010

Status of Shinjuku Maynds Tower
 The occupancy rate of Shinjuku Maynds Tower fell to 73.3% due to the exit of a major tenant, but the launch of leasing

activities that draw on the Property’s characteristics led to a contract for 1.5 floors in April and 1 floor in June. The current
occupancy rate is 81.4%.
 Enhanced the quality of the Property through renewal of the 1F entrance and renewal of the common-use area

Brand Value Enhancement Activities
 Changing building names to the Daiwa brand name, centering on those that are still crowned with the name of the former

sponsor, starting from late June. Change for all 25 properties is scheduled to be completed by September.
 The name of the investment corporation is scheduled to be changed from DA Office Investment Corporation to “Daiwa
Office Investment Corporation.” The trade name is scheduled to be changed as of September 1, subject to approval at the
6th general meeting of unitholders to be held on August 20.
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 purpose of solicitation. DA Office Investment Corporation advises readers to make investment decisions at their own judgment.

4

Issues and Activities of the Investment Corporation
Balance
Balance Sheet
Sheet at
at EndEnd ofof thethe 9th
9th Fiscal
Fiscal Period
Period(May(May 31,
31, 2010)
2010)

AssetsAssetsIssuesIssues andand Activities
Activities

Liabilities
Liabilities
IssuesIssues andand Activities
Activities Diversify
Diversify financing
financing means
means(Unit: Million yen)
 Recover
Recover Shinjuku
Shinjuku Maynds
MayndsÆÆ FileFile shelf
shelf registration
registration statement;
statement;

Tower’sTower’s occupancy
occupancy raterate
Æ
Æ Maintain
Maintain andand enhanceenhance buildingbuilding value
valuethroughthrough renewals
renewalsÆÆ Strengthen
Strengthen relationshiprelationship with
with tenants
tenantsandand increase
increase number
number ofof times
times property
property
isis open
forpublicinspection
open for public inspectionÆÆ Lease-up
Lease-up ofof 1.5
1.5 floors
floors inin April
April andand 11
floor
in
June
floor in June

P12

P13 ~
14


 Change
Change negative
negative image
image ofof

P27

Status of
Maynds Tower
Internal
GrowthReinforceleasing Ratio
Ratio ofof collateralcollateral for
for

83,009Internal
Growth RaiseRaise occupancy
occupancy rates
rates
Æ
rates
increaseÆ Occupancy
Occupancy rates increase at
at Daiwa
Daiwa
OnarimonBuilding,
Benex
Onarimon Building, Benex S-3,
S-3, etc.
etc.
Æ
Æ Aim
Aim forfor 90%90% during
during 10th
10th Fiscal
FiscalPeriodPeriod throughthrough occupancy-rateoccupancy-rateprioritizedprioritized marketing
marketingAssets283,866

Net Assets

property
property
Financial
Strategy
Status ofinterest-bearing
liabilities

P22
~23

Æ
Æ Acquire
Acquire newnew buildingbuilding by
by utilizing
utilizing

issue
issue ofof unsecured
unsecured investment
investment
corporation
corporation bonds
bonds

Net
Net Assets
AssetsIssuesIssues andand Activities
Activities

200,857

 Large
Large unitholding
unitholding by
by

Columbus
Columbus

Overall
Branding
strategy

formerformer sponsor
sponsor forfor thethe better
betterÆÆ Regularly
Regularly hold
hold discussions
discussions with
with

Forecast
Forecast EPS
EPS forfor 10th
10th Fiscal
Fiscal Period
PeriodÆÆ StartStart changing
changing buildingbuilding names
names toto“Daiwa“Daiwa ●●Building” fromfrom latelate June
June●● Building”

ÆÆ Change
Change thethe investment
investment corporation
corporationst
name
name onon 11st September.
September.

P19
 PromotePromote property
property purchases
purchasesÆAcquireDaiwa
JimbochoÆ Acquire Daiwa Jimbocho Building
Building
throughthrough negotiation
negotiation directly
directly with
with seller
sellerIssue
Issue investment
investment corporation
corporation bonds
bonds
in
June
in JuneLiabilities

External
GrowthGrowththrough asset
acquisitions

3,176 yen

Financial
Strategy
Status ofunitholders

P25

Columbus
Columbus andand study
study measures
measures forforstability
stability inin unitholder
unitholder composition
composition

Forecast
Forecast EPS
EPS forfor 11th
11th Fiscal
Fiscal Period
Period3,180 yenThis document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purpose of solicitation. DA Office Investment Corporation advises readers to make investment decisions at their own judgment.

5

Financial Highlights of the 9th Fiscal Period
Results for the 9th Fiscal Period
7th Fiscal Period

8th Fiscal Period

9th Fiscal Period(30 properties)(30 properties)(31 properties)

Operating Revenue¥8,177 million¥7,744 million¥6,985 million▲ ¥758 million▲ 9.8%

Operating Cost

¥3,899 million¥3,841 million¥4,026 million¥185 million

4.8%

Operating Income¥4,278 million¥3,903 million¥2,959 million▲ ¥943 million▲ 24.2%

Ordinary Income¥2,998 million¥2,710 million¥1,773 million▲ ¥937 million▲ 34.6%Net Income¥3,156 million¥2,709 million¥2,076 million▲ ¥633 million▲ 23.4%

Number ofInvestment Unit

343,905 unit

395,798 unit

395,798 unit――

Dividend per Unit

¥9,179¥6,847¥5,246▲ ¥1,601▲ 23.4%

Operational EPS*

¥8,716¥6,847¥4,478▲ ¥2,369▲ 34.6%

Occupancy Rate

97.7%

92.8%

85.7%

NOI Yield

4.8%

4.5%

3.7%

Change from the Previous
Period(*) Net income per investment unit excluding gain from sale of property and extraordinary gain/loss
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. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

6

Highlights of Forecasts for the 10th and 11th Fiscal Periods
Forecast(as of July 13, 2010)

9th Period

10th Period
Forecast

11th Period
Forecast(31 properties)(32 properties)(32 Properties)

Operating Revenue¥6,985million¥6,317million¥6,320million

Operating Income¥2,959million¥2,465million¥2,505million

Ordinary Income¥1,773million¥1,259million¥1,260million

Net Income¥2,076million¥1,257million¥1,258 million

Number ofInvestment Unit

395,798unit

395,798unit

395,798unit

Dividend per Unit

¥5,246¥3,176¥3,180Operational EPS*

¥4,478¥3,176¥3,180

Expected Occupancy
Rate

85.7%

91.7%

91.8%

Expected NOI Yield

3.7%

3.3%

3.3%

10th and 11th Fiscal PeriodTop priority will be placed on raising ofoccupancy rates, aiming for 90% or
higher in estimated occupancy rate forthe entire portfolio and also 90% or
higher in the occupancy rate for
Shinjuku Maynds Tower

NOI yield to continue hovering on aweak note due to rent amount decreases,
free rent, etc.

Promotion of early contracting directed
at raising of occupancy rates is expected,
which will be coupled with the postingof consignment expenses (leasing
expenses)

Performance forecasts are based on theassumption that there will be 32
properties, but property acquisitions will
be proactively pursued

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. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

7

2 Internal GrowthPortfolio Map~ decrease or increase in occupancy rate compared with previous period ~Possible
Possible Areas
Areas forfor Investment:
Investment:
Regional
Regional Cities
CitiesMain
Main Investment
Investment Area:
Area: Five
Five Central
Central Wards
Wards ofof TokyoTokyo

As of May 31, 2010

Occupancy rate compared withprevious period
Increase: 8cases

Decrease: 7cases

Unchanged : 16cases
Shinjuku Ward

Daiwa Misakicho

Daiwa Sarugakucho

Daiwa Jimbo-cho
Daiwa Nihonbashi Honcho
Sunline Bldg. No.7
Shinjuku Maynds Tower

ShibuyaWard

Daiwa Jingumae

Nihonbashi MS Bld.

Chiyoda Ward

Daiwa Ginza 1-chome
BPS Square
Daiwa Tsukiji
Daiwa Ginza Annex

Tokyo
Station Chuo

Daiwa Minami-Senba

Daiwa Kodenmacho

Ward

Investment
Investment Area:
Area: Tokyo
Tokyo Metropolitan
Metropolitan Area
Area

Daiwa Kyobashi

SHIBUYAEDGE
Daiwa Minami Aoyama

Daiwa Ginza
Daiwa Tsukiji616
Daiwa Shibashi510
Daiwa Onarimon
Daiwa Shibuya SS
Daiwa Tsukishima
Daiwa A Hamamatsuchi
Daiwa Azabudai
Daiwa Shibadaimon
Shibuya Station

Daiwa Higashi-ikebukuro

Daiwa Kinshicho

Daiwa Shibaura
Benex S-3

Minato WardTokyo
Daiwa ShinagawaNorth

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. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

9Factor Analyses of Changes in Leasing Income (1)Summary
Summary ofof Floor
Floor Area
Area ofof TenantTenant Turnover
Turnover by
by Property
Property (Based(Based on
on Profit/Loss)
Profit/Loss)100%[Occupancy rate (%)]

95%

97.0%97.4%

99.0%

98.2% 98.3% 97.6%① 9th Fiscal Period

97.7%
92.8%

90%

91.7% 91.8%

85.7%

85%

 On an analysis by property, occupancy rate fell at 7
properties and rose at 8 properties compared to the previous
period80%

9,000[Yield (%)]

NOI (Million yen): Rent revenue + Other lease business revenue −Expenses related to rent business + Depreciation②①
NOI yield: NOI / Period average acquisition price

8,000

6,895

7,000
6,000
3,143 3,282

③

8.0%
7.0%
6.0%

5,915

5,133

5,000
4,000

6,373 6,334

4,922

3,974

▲993 million yen

 In the 9th Fiscal Period, exits by large tenants, etc. caused
occupancy rate to fall to 85.7% and NOI yield decreased to
3.7%

Occupancy rate

(Million yen)

NOI Compared to Previous Periods

4,462 4,534

5.0%
4.0%
3.0%

3,000

2.0%

2,000

1.0%

1,000
0

0.0%
1FP

2FP

3FP

4FP

5FP

6FP

7FP

8FP

9FP

10FP

11FP

end

end

end

end

end

end

end

end

end

end

end

 Ongoing negativeenvironment

impact② 10th Fiscal Period▲ 460 million yen

ofdeteriorating

market Occupancy rate to rise at 11 properties and fall at 5
properties compared to the previous period, resulting inestimated occupancy rate for the entire portfolio of 91.7%
 NOI for the 10th Fiscal Period expected to drop more than
the 9th Fiscal Period due to rent declines, free rent and otherimpact, resulting in NOI yield forecast to be 3.3%
③ 11th Fiscal Period

72 million yen Occupancy rate expected to rise moderately to 91.8%
 The free rent period for tenants moving in the 9th Fiscal
Period or later will end and rent is thus expected to generate,
resulting in NOI yield estimated to be 3.3%

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 purpose of solicitation. DA Office Investment Corporation advises readers to make investment decisions at their own judgment.

10Factor Analyses of Changes in Leasing Income (2)Factor
Factor Analyses
Analyses ofof Change
Change inin Monthly
Monthly Rent
Rent(¥million)
1,300

New
New leases
leases andand cancellations*cancellations*

Increasefrom newleases(Case)

40

33

30

24
1,200

20
6

5
0

1,100

1,000

7th Period
Increase by
new
Increaseacquisition
from rent-20

Decreasefrom tenants’revisionscancellationsDecrease
from rent
revisions-19

9th Period

-20
-24

-40

900

Nov.-09
Monthly Rent

8th Period-60May.-10Monthly Rent

-53
New leases

Cancellations*Excluding residenceThis 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. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

11

Status of Shinjuku Maynds Tower
Present State of the Property

Future Strategy

 In January 2010, a large tenant vacated the 8 floors it was occupying, Increasingly enhance the attractive features of Shinjuku Maynds

causing the occupancy rate to fall to 73.3%
 Although the deteriorating balance of supply and demand in the
Shinjuku office leasing market prevented a fast recovery inoccupancy rates, the execution of agreements for 1.5 floors in April
and 1 floor in June resulted in the current occupancy rate recovering
to 81.4%

Tower by continuing to conduct renewal construction work Work together with leasing brokers and property managers to holdcampaigns, arrange times when the Property is open for public
inspection, etc.
 Continue to strive to heighten the satisfaction level of existing tenants

RenewalRenewal Construction
Construction WorkWork Description
Description

Activities for Raising Occupancy Rates① Entrance general information board
Present
Present state
state

100.0%

After
After renewal
renewal

95.0%
Improvetexture

90.0%
85.0%
Average for Nishi-Shinjuku area office buildings*

80.0%② Entrance

Shinjuku M aynds Tower

Present
Present state
state

75.0%

After
After renewal
renewal

70.0%
Sept.
2008

Dec.
2008

Mar.
2009

June
2009

Sept.
2009

Dec.
2009

Mar.
2010

June
2010

Change signboard andincrease
illuminance*Source: CBRE

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 purpose of solicitation. DA Office Investment Corporation advises readers to make investment decisions at their own judgment.

12

Properties Subject to Leasing Improvement
Daiwa Nihombashi Honcho

Daiwa Ginza 1-chome

Occupancy rate atend of 9th Fiscal Period

Occupancy rate atend of 9th Fiscal Period

Occupancy rate atend of 9th Fiscal Period

38.2%

78.9%

0.0%

Estimated occupancy rate
at end of 10th Fiscal Period

Estimated occupancy rate
at end of 10th Fiscal Period

Estimated occupancy rate
at end of 10th Fiscal Period

48.2%

76.6%

61.7%

Investment ratio(based on acquisition price)

Investment ratio(based on acquisition price)

Investment ratio(based on acquisition price)

2.8%

1.7%

1.0%

 4-minute walk from
Location

Nihombashi-Honcho,
Chuo-ku

Constructed January 1964
Total
2
floor area 9,869.38m
Acquisition
7,420 million yen
price

Mitsukoshimae
Station on the Tokyo
Metro Hanzomon
Line and Ginza Line Recognized to be aproperty with highlyconvenient accessand high
competitiveness 2-minute walk from GinzaLocation

The Property’s large tenant Sumitomo Mitsui
Construction vacated the Property at end of April;
Exits by also other tenants followed, bringing
occupancy rate down to 38.2% at end of May
As a property subject to leasing improvement,
increase number of times the Property is open for
public inspection; Increasingly reinforce leasing
activities, while working together with leasing
brokers and property managers

1-chome, Ginza,
Chuo-ku

Constructed January 1962
Total
2
floor area 4,771.31m
Acquisition
4,620 million yen
price

Activities and Future Strategy
Daiwa Jingumae

itchome Station on theTokyo Metro YurakuchoLine, and 4-minute walkfrom Kyobashi Station on
the Tokyo Metro GinzaLine Close to central Ginza andhighly competitive also as
office/residential location

 7-minute walk from
Location

Constructed December 1997
Total
2
floor area 2,673.88m
Acquisition
2,800 million yen
price

Activities and Future Strategy

Occupancy rate expected to fall to 59.3%
during 10th Fiscal Period
Aim for recovery in occupancy rates byholding effective campaigns; Continue to
strive to heighten tenant satisfaction level

Jingumae, Shibuya-ku

Gaiemmae Station on
the Tokyo Metro
Ginza Line Office building
boasting highvisibility from facing
Gaien-nishi DoriActivities and Future StrategyReceived notice of contract termination fromtenant that leases the Property in its entirety;
Occupancy rate became 0%
Completed major renewal construction work
Hold effective campaigns to determine thenext tenant as soon as possible; Tenancy tostart from July

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 purpose of solicitation. DA Office Investment Corporation advises readers to make investment decisions at their own judgment.

13Case Examples of Leasing Activities
Daiwa Kodenmacho Building

Daiwa Shinagawa North Building

Occupancy rate at
Estimated occupancy rate
end of 9th Fiscal Period at end of 10th Fiscal Period

Occupancy rate at
Estimated occupancy rate
end of 9th Fiscal Period at end of 10th Fiscal Period

86.8%

100.0%

90.8%

Location

Odenmacho, Chuo-ku

Location

Constructed

March 1985

Constructed

2

96.6%
1-chome, Kita-Shinagawa,Shinagawa-ku
July 1991

Total floor area 2,882.28m

Total floor area 10,200.29m2

Acquisition price 2,460 million yen

Acquisition price 7,710 million yen

 3-minute walk from 10-minute walk from Shinagawa Station

Kodemmacho Station on theTokyo Metro Hibiya Line The Property is of a size thatexceeds the average within thearea, where over 70% arebuildings with total floor areaof less than about 500 tsubos

on the JR and Keihin Electric Express
Railway Lines, and 5-minute walk from
Kita-Shinagawa Station on the Keihin
Electric Express Railway Line Property that can be anticipated to play
a complementary role for the Tennozu
Isle and other redevelopment areas

Status of Leasing Activities
Received notice of contract termination from large tenant
during 9th Fiscal Period; Occupancy rate fell to 62.2%, but
recovered to 86.8%
 Investigate and analyze the Property’s surrounding market indetail in being competitive with Nihombashi-Horidomecho
and Nihombashi-Hamacho; Adjust to realistic rent in line withmarket Appeal rent level, excellence of location, etc. to lead tooccupancy

Status of Leasing Activities
Received notice of contract termination from tenant, causing
occupancy rate to fall to 77.8%, but recovered to 90.8% at endof 9th Fiscal Period As a property subject to leasing improvement, arrange times
when the Property is open for public inspection; Appeal that
the Property’s size and specifications surpass the average in
the Shinagawa area excluding the redevelopment area
 Hold campaigns to have many potential tenants consider
tenancy; Flexibly respond to the requests of potential tenantsThis document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purpose of solicitation. DA Office Investment Corporation advises readers to make investment decisions at their own judgment.

14

3 External GrowthThe Real Estate Market and Property Acquisitions
Source: Compiled by the Investment Corporation based on data from the “Real Estate Transaction
Survey” of the Urban Research Institute (Mizuho Trust and Banking’s think tank) and information fromthe Bank of Japan’s website(Number)

600
400

20
0

Number of transactions
suddenly drops
and lending attitude
becomes severe

200
0

-40

Subprime
Loan
Problem

Boom Period(Billion yen)

-20

Adjustment Period

Total
Total Acquisition
Acquisition Price
Price

350
300

0
is severe)

250
200
150

287

100
50

0
is easy (accommodating), whereas below

Number of Transactions

Number of Transactions
Lending Attitude DI (Real Estate)
Lending Attitude DI (All Industiries)

800

DI=Diffusion Index (AboveTheThe real
real estate
estate market
market andand trading
trading performance
performance

800Listed(Oct. 2005)

111

130

138

End of first
period(May 2006)

End ofsecond period(Nov. 2006)

End of third
period (May2007)

End of fourth
period(Nov. 2007)283

End of fifth
period(May 2008)

265

265

265

End of sixth
period(Nov. 2008)

End ofseventh period(May 2009)

End of eighth
period(Nov. 2009)

269

Aggressive investment for
future growth

End of ninth End of tenth
periodperiod(May 2010) (Nov. 2010)

End of eleventh
period (May2011)

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. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

16Current Portfolio and Acquisition Policy
Distribution
Distribution Chart
Chart ofof Portfolio
Portfolio Properties
Properties

Current Portfolio

Portfolio Properties of DA Office(Total Floor Area (m2))

120,000

 Investment is concentrated in the five central wards of Tokyo.
 A class buildings* (Shinjyuku Maynds Tower ) and B class buildings**.

Shinjyuku Maynds
Tower

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

100,000
A Class
Buildings

80,000Investment
Investment Ratio
Ratio

Area
Area

91.1%

55Central
CentralWards
Wards

Investment Target

60,00040,000Acquisition Policy

Investment
InvestmentRatio
Ratio

Acquisition Policy

Tokyo
Tokyo
Metropolitan
MetropolitanArea
Area
Regional
RegionalCities
Cities

7.2%

Classification
Classification

Investment
InvestmentRatio
Ratio

AAclassclassbuildings
buildings

49.7%

BBclassclassbuildings
buildings

50.3%

 For the time being, invest heavily in younger A class buildings and*Investment Ratio is calculated based on
acquisition priceyounger B class buildings (1) within 20 years of building age. Our
target to invest new building mainly is ¥5billion.

1.8%

 Continue investing heavily in the five central wards of Tokyo.
 Decrease in the weight of Shinjuku Mynds Tower by acquiring newbuildings utilizing the low LTV(1)

 Aim to improve stability and profitability of our portfolio by achieving

20,000new buildings

B Class
Buildings

0
0.0

10.0

20.0

30.0

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

(2)

40.0

purchasing Zone (1) properties.

(Building Age)

50.0

60.0

*A class buildings: Total floor area is over 30,000㎡** B class buildings: Total floor area over 2,000㎡ but less than 30,000㎡

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

17

Sourcing Strategy
Property
Property Selling
Selling Needs
Needs
Fund

Properties from repayment of loans becoming due and business plans reaching the end of term, etc.

Developer

Properties with good progress in securing tenants and recognized to be income-generating properties
after development, etc.

General constructor

Properties that were temporarily held for such reasons as the bankruptcy of property owners but are now
able to be sold due to recovery in earnings, etc.

Bank, CMBS, etc.

Properties for which the collection of funds would like to be promoted due to there being no prospects forloans receivable being repaid, etc.

General business company

Properties being discharged to improve balance sheets, properties being discharged for such reasons asfinancial restructuring, etc.

Outlook
Outlook forfor Property
Property Market
Market Increase in funds, etc. that have loan terms becoming due Increase in cases of selling led by lenders due to no refinancing taking place Progress in also disposal of loans by creditors for properties for which there are no prospects for repayment
 Disposal of loans gradually starting for also properties for which selling has been falling behind schedule
Property
Property Acquisition
Acquisition Policy
Policy Make use of abundant cash reserves, sponsor support capacity, etc. to lead to negotiation at more advantageous terms than competitors
 With the current market rather stagnant market phase, aim to acquire properties at reasonable price Aim to acquire attractive properties on an ongoing basis by gaining an advantage in the purchase competition through holding ofabundant capital at all times
 Aim to make effective property acquisitions by consolidating and centralizing information of properties on Daiwa Securities Group
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 purpose of solicitation. DA Office Investment Corporation advises readers to make investment decisions at their own judgment.

18

Recent Property Acquisition (Mar 2010)
Daiwa Jimbocho Building

Acquisition Price:

4.15 billion yen

Expected NOI:

251 million yen

Location: 2-4 Kanda Jimbo-cho, Chiyoda-ku,
Tokyo
Site Area: 598.048㎡
Structure: S/SRC
No. of Floors: B1/8F
Total Floor Area: 4,247.18㎡
Leasable Floor Area: 3,166.84㎡
Construction Completed: March 21, 1997
Acquisition Price: 4,150 million yen
Occupancy Rate: 100.0%(as of March 31, 2010)■ Convenient location in Tokyo
The property is conveniently locatedin terms of public transportation,
which is within a 1-minute walk to
Jimbo-cho Station on the Tokyo
Metro Hanzomon Line, Tokyo
Municipal Mita and Shinjuku Linesand about a 6-minute walk to
Kudanshita Station on the Tokyo
Metro Tozai, Hanzomon and Tokyo
Municipal Shinjuku Lines.

ORIX Jimbo-cho
Jimbo-cho St.

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. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

19

Recent Property Acquisition (June 2010) – agreed with seller, but not yet settled
Kyodo-Building ( Kudan Ichigo-kan)*Acquisition Price:

4.00 billion yen

Expected NOI:

213 million yen

Location: 5-5, Kudan Minami 1-chome,
Chiyoda-ku,
Site Area: 540.67㎡
Structure: SRC
No. of Floors: 9F
Total Floor Area: 3,679.70㎡
Leasable Floor Area: 3,135.95㎡
Construction Completed: March 31, 1987
Acquisition Price: 4,000 million yen
Occupancy Rate: 89.8%(as of May 31,
2010)■ Convenient location in Tokyo
The property is conveniently located in terms of public transportation, which is within a
1-minute walk to Kudanshita Station on Tokyo Municipal Shinjuku Line, the Tokyo
Metro Tozai and Hanzomon Lines.
*The date of delivery is a date to be separately agreed upon by the Seller and the Investment Corporation which shall be by September 13, 2010
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

20

4 Financial Strategy

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

Ratio
Ratio ofof Long–
Long– toto Short-Term
Short-Term Borrowings
Borrowings
8th Fiscal Period* LTV( based on acquisition price) ＝Total interest-bearing liabilities/ Total acquisition price of properties held at the end the fiscal period

7.9%

4.8%

9th Fiscal Period

4.8% 3.1%

70%200Interest-bearing Liabilities

60%

ＬＴＶ( based on acquisition price*)

92.1%

87.2%

150

50%
Upper limit range LTV in the mid-term target

Current position of long-term borrowings

40%
35%
30%

100
LTV target for the near future26.90%

20%

50

Long-term borrowings
Investment corporation bonds

Ratio
Ratio ofof Fixed
Fixed –– toto Floating
Floating Borrowings
Borrowings
8th Fiscal Period

9th Fiscal Period

10%
47.6%

-

1s
tP
e
2n r ioddPer
3 r ioddPe
4 t riodhPer
5 t iodhPer
6 t iodhPer
7 t iodhPer
8 t iodhPer
9 t iod
h
Pe
rio
d

0%

42.6%
9.8%

47.6%

42.6%
9.8%

Fixed interest
Floating interest (capped)
Floating interest(The LTV after investment corporation bond issued in June 2010:28.8%）

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. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

22

Status of Interest-bearing Liabilities ~ Diversification of Payment Dates~
Payment
Payment Dates
Dates

Loan from Aozora Bank
Loan from Shinsei Bank

Lenders
Lenders after
after refinancing
refinancing loan
loan due
due Nov.2009
Nov.2009(million yen)

25,000Loan from other financial institutions

Chuo Mitsui Trust and Banking---2,000
Gunma Bank--------------------------1,000
Taiyo Life Insurance-----------------1,000

Loan from drawn down on Sep.2009
New loans drawn down on Nov.2009
Investment corporation bonds

LenderLender after
after refinancing
refinancing loan
loan duedue Feb.2009
Feb.2009
Aozora Bank --------------------------3,500
Shizuoka Bank -----------------------1,000
Kagawa Bank -------------------------1,000

Lenders
Lenders after
after refinancing
refinancing loan
loan due
due Sep.2009
Sep.2009

20,00019,6004,000

Sumitomo Mitsui Banking Corporation ---5,000
Sumitomo Trust Banking --------------------3,500
Development Bank of Japan ---------------3,000
Mizuho Bank -----------------------------------1,400
77 Bank -----------------------------------------1,000

15,000Kansai Urban

Name:

Second Series of Unsecured
Investment Corporation Bonds

Total Issue Amount: 5.0billion yen

Mizuho Bank

10,000

3,500
3,000

13,900

Risona Bank

5,000
5,500

5,500

5,000

7,100

5,500

5,000

May.13

Nov.132,000
May.10Nov.10

May.11

9thPeriod

10thPeriod

11thPeriod

Nov.11
12thPeriod

May.12
13thPeriod

Nov.12

14thPeriod

15thPeriod

16thPeriod

Interest Rate:

1.87%

Offering Method:

Public offering

Redemption Date:

Jun. 24, 2013

Alico Japan

3,500
Nov.19 28

28thPeriod

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. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

23

Collateral Situation
No.
1
2

3

Properties
Daiwa Onarimon
Daiwa Tsukiji616
Sunline 7 Bldg.
Daiwa Minami Aoyama
SHIBUYA EDGE

Borrowingdate

Repayment
date

Pledger

9/2/088/30/13

Alico Japan

3/21/08

3/18/11

Risona Bank

6/30/08

6/30/11

Kansai Urban

No.

Properties

Borrowingdate

Repayment
date

Pledger

Daiwa A Hamamatsucho
Daiwa Shibadaimon
Daiwa Misakicho

9Daiwa Shinbashi510

SMBC

Daiwa Kinshicho

Sumitomo Trust

Nihonbashi MS Bldg.

9/18/09

9/18/124

Daiwa Shinagawa North

8/29/08

8/31/11

Risona Bank

5

Daiwa Shibaura

9/30/08

9/30/11

Mizuho Bank

Daiwa Azabudai

Development
Bank of Japan

6

Shinjuku Mynds Tower （1/7）

2/20/09

2/20/12

Shinsei Bank

Daiwa Shibuya SS

77 BankDaiwa Ginza

Daiwa Nihonbashi Honcho

Daiwa Ginza Annex

Daiwa Ginza 1chome

Daiwa Jingumae

Shinjuku Mynds Tower （1/7）

Daiwa Higashi Ikebukuro
7

Daiwa Tsukiji

5/21/09

5/21/12

10

Aozora Bank

Shinjuku Mynds Tower （1/7）

11/30/09

11/30/12

Chuo-Mitsui
Trust Bank
Taiyo Life
Gunma Bank

2/26/10

2/28/13

Aozora Bank
Shizuoka Bank
Kagawa Bank

Daiwa Tsukisihima
Shinjuku Mynds Tower （1/7）

Daiwa Kyobashi

8

11

Daiwa Minami-Senba

Daiwa Sarugakucho

Shinjuku Mynds Tower（1/7）

Shinjuku Mynds Tower （1/7）

―

―

―

BPS Square

Daiwa Jimbocho

―

―

―

Kyodo Building (TBD)

―

―

―

Bennex S-3

9/18/09

9/18/12Mizuho Bank

Daiwa Kodenmacho
本資料は、金融商品取引法等に基づく開示資料ではありません。また、勧誘を目的とするものではありません。投資に関する最終決定は、皆様御自身の判断で行ってくださいますようお願い申し上げます。

24Unitholder
Investment Unit of Columbus

Changes in Investment Unit Ownership by Industry
88thth Fiscal
Fiscal Period
PeriodCurrent State

Investor
Investor TypeType
11

 Columbus has not sold investment units and continue to own them.
 According

to the large share holdings report, rights of pledges were
established over investment units owned by Columbus by BNP Paribas
Principal Investments Japan, Ltd.
 Implemented investor relations activities joining the individual investors
seminar and Singapore REIT conference during the 9th Fiscal Period andsearched for potential investor candidates.

22

33
44
55

Future Policy

Individuals
Individuals
Financial
Financial institutions
institutions (excluding(excluding
securities
securities firm)
firm)
Banks
Banks
Trust
Trust banks
banks
Life
Life insurance
insurance
Non-life
Non-life insurance
insurance
Other
Other
Other
Other domestic
domestic corporations
corporations
Foreigner
Foreigner
Securities
Securities

NumberNumber ofof
Investment
Investment Units
Units

Rate
Rate

43,812

11.06%

113,74228.73%

3,054

0.77%

103,944

26.26%

376

0.09%

5,599

1.41%

769

0.19%

143,198

36.17%

36,8189.30%

58,22814.71%

99thth Fiscal
FiscalPeriod
Period We are planning to regularly hold discussions with Columbus and to discuss

measures for promoting stability in our investor composition.
 By implementing investor relations activities aggressively, we will further
strengthen the relationship with investors and be prepare for the deal
whenever Columbus indicates a wish to sell them.

Investor
Investor Type
Type
11

22

33
44
55

Individuals
Individuals
Financial
Financial institutions
institutions (excluding(excluding
securities
securities firm)
firm)
Banks
Banks
Trust
Trust banks
banks
Life
Life insurance
insurance
Non-life
Non-life insurance
insurance
Other
Other
Other
Other domestic
domestic corporations
corporations
Foreigner
Foreigner
Securities
Securities

NumberNumber ofof
Investment
Investment Units
Units

Rate
Rate

42,52710.74%

117,369

29.65%

1,611

0.40%

107,26727.10%

313

0.07%

5,599

1.41%

2,579

0.65%

143,18236.17%

39,58910.00%

53,13113.42%

This 本資料は、金融商品取引法等に基づく開示資料ではありません。また、勧誘を目的とするものではありません。投資に関する最終決定は、皆様御自身の判断で行ってくださいますようお願い申し上げます。
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. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

25

Competitive Edges (1)██Positioning of Asset Manager
within the Daiwa Securities Group

Expand network of collaboration with the
Daiwa Securities Group▬

Remarkably expand financing capacity▬

Reinforce sourcing activities▬

Increase sense of security from tenants/investors by
improving creditworthiness

Daiwa Securities Group Inc.
RetailEstablish 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

Daiwa
Securities

Secure well-experienced, highly-professional
human resources▬

Develop team of outstanding professional staff by capitalizingon the human resources of the Daiwa Securities Group▬

Employ excellent human resources from outside by drawing on
the Daiwa Securities Group’s brand power▬

Increase number of employees with a high level of motivation
to challenge new business stages

Asset Mgmt
Daiwa
Asset
Management

Investment
Daiwa
Corporate
Investment
Daiwa

Daiwa
Securities SMBC
Principal
SB Investments
Investments

Daiwa
Real EstateGroup Support█

Wholesale
Daiwa
Securities
Capital Markets

Daiwa
PI Partners

Daiwa Institute of Research, Daiwa Securities BusinessCenter, Daiwa Properties, etc.



The Daiwa Securities Group promotes the marketing of net
increases in assets primarily to private investors and focuses on
the development of attractive products that have the potential
for stable management performance

Daiwa Real Estate Asset Management aims for long-term andstable provision of attractive management products as the realestate asset management company of the Daiwa Securities
Group

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 purpose of solicitation. DA Office Investment Corporation advises readers to make investment decisions at their own judgment.

26

Branding Strategy
Implement running of REIT through further leveraging of
the comprehensive strength of the Daiwa Securities Group
Change the Investment Corporation’s name

DA office is planning to change its name to “ Daiwa Office Investment
Corporation” in order to make much wider tenants and investors awareof being an affiliate company of Daiwa Group.

After passing a resolution at the general meeting on August 20, 2010
DA Office will change the corporate name on September 1,

Change the building name

DA Office has been changing 25 of the 31 properties’ name in our
portfolio to “Daiwa XX Building” by September 2010.



By informing tenants and investors of its new names, they will realizethat the sponsor of DA Office changed to Daiwa Securities Group Inc.
DA Office will improve the strength of its brand by instilling the“confidence” which Daiwa Group has cultivated over many years

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

27

5 Appendix

Summary of Results for the 9th Fiscal Period (1)Balance SheetA SSE T S

Million Yen
Current Assets
Cash and Deposits
Cash and Deposits in Trust
Consumption Taxes Receivable
Other Current Assets
Fixed Assets
Tangible Fixed Assets
Buildings Held in TrustLand Held in Trust
Other Tangible Fixed Assets
Intangible Fixed Assets
Leasehold Rights in Trust
Other Intangible Fixed Assets
Investments and Other Assets
Leasehold and Security Deposits Paidin Trust

Long-term Prepaid Expenses
Other Investments and Other
Deferred Assets
Investment Corporation Bond
Total Assets

23,471
15,467
6,754
0
1,249
263,401
257,295
47,891
209,399
5
4,974
4,970
4
1,132

(%)

8.2%

91.8%
89.7%

1.7%
0.4%

113
993
24
27
0.0%
27
286,901 100.0%

8th Fiscal Period

9th Fiscal Period

As of May 31, 2010

As of Nov.30, 2009

As of May 31, 2010

Million Yen

17,178
11,290
4,713
32
1,142
266,663
260,901
48,163
212,726
11
4,972
4,970
2
789

Million Yen

(%)

6.1%

93.9%
91.9%

LIABILITIESAs of Nov.30, 2009

9th Fiscal Period

Current Liabilities
Trade P ayables
Current Maturities of Long-term
Other P ayables
Rents Received in Advance
Other Current Liabilities
Fixed Liabilities
Investment Corporation Bonds
Long-term Debt
Leasehold and Security Deposits
Leasehold and Security
Received in Trust

1.8%
0.3%

113
654
21
24
0.0%
24
283,866 100.0%

CAPITAL

8th Fiscal Period

Other Fixed Liabilities
Total Liabilities
P aid-in Capital
Retained Earnings
Total Capital
Total Liabilities and Capital

7,656
699
5,751
280
706
217
77,7543,500
63,2795,038

Deposits(%)

Million Yen

2.7%

27.1%

5,924
11
85,410 29.8%
198,780
2,710
201,491 70.2%
286,901 100.0%

3,882
510
2,258
269
652
191
79,1263,500
66,650
4,892

(%)

1.4%

27.9%

4,075
8
83,009 29.2%
198,780
2,076
200,857 70.8%
283,866 100.0%

Interest-bearing Liabilities (9th Fiscal Period)
72,408million yenCurrent Maturities of Long-term Borrowings： 2,258million yen

Loan-to-Value (LTV): 25.5% (Interest-bearing liabilities at end of period / total assets)Long-term interest-bearing liabilities ratio: 96.9%(Long-term borrowings (including investment corporation bonds) / Interest-bearing liabilities at end of 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. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

29

Summary of Results for the 9th Fiscal Period (2)Comparison with Results of the Previous Period
Unit: Million Yen (excluding the number of investment units and cash dividends)

8th Period

9th Period（ended Nov. 30, 2009)(ended May 30, 2010)

Number of Properties (at period-end)30

31

Effective Number of Days of Investment

183

182

Operating Revenues (A)Gain on Sale

ChangeOperating Revenue


7,744

6,985

▲ 758

―

―

―

▲758million yen: Decrease in Rent revenue – realestateOperating Expenses (B)Rental Business Expenses (excluding
depreciation)
Depreciation

3,841

4,026

+ 185

Operating Expenses

1,829

2,063

+ 234



1,180

1,184

+4

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

4,734

3,737

▲ 997

Operating Income (A-B)

3,903

2,959

▲ 943

Non-operating Expenses

1,201

1,192

▲9

Interest Expense (including cap amortization)

741

768

+ 27

Financing Related Expenses

429

420

▲8

2,710

1,773

▲ 937

―

303

+ 303

2,709

2,076

▲ 633

395,798unit

395,798unit

6,847

5,246

Ordinary Income
Extraordinary Income
Net Income
Investment Units Issued and Outstanding
Divide nd per Unit (Unit: Yen)

Extraordinary Income+303million yen: the cold-water heat exchanger usedas the air-conditioning system for Shinjuku Maynds
Tower was offered without compensation

Dividend per Unit

▲ 1,601+185million yen : Increase in restoration cost

Decrease in occupancy rate and falling rate in officebuildings

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. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

30

Summary of Results for the Eighth Fiscal Period (3)Comparison with Forecasts

Rental Operations: Based on Gain and Loss from Rental

Unit: Million Yen (excluding the number of investment units and cash dividends)+185million yen

9th Fiscal Period
Forecast

Actual Results

announced on
March 3, 2010

Difference

6,935

6,985

+ 50

―

―

―

4,182

4,026

▲ 156

Rental Business Expenses (excluding
depreciation)

2,193

2,063

▲ 130

Depreciation

1,189

1,184

▲5

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

3,552

3,737

+ 185

Operating Income (A-B)

2,753

2,959

+ 206

Operating Revenues (A)Gain on Sale
Operating Expenses (B)Operations excluding gain from salePenalty charges for breaking a lease

Postponement of the consignment expense(leasing cost) to the next period or later

Decrease in the repair expense

Changes in Forecasts
InitialForecast

Revised
Forecast(Announced on
Jan.6)(Announced on
March 3)Operating
Revenues

6,592

6,935

6,985

+393

1,501

1,557

1,773

+272

(Million Yen)

ActualResults

Difference
from Initial
Forecast

1,196

1,192

▲4

Interest Expense (including cap amortization)

769

768

▲1

Financing Related Expense

422

420

▲2

1,557

1,773

+ 216

303

303

+0

Ordinary
Income

1,858

2,076

+ 218

Net Income

1,545

1,858

2,076

+531

395,798unit

395,798unit

Divide nd pe r Unit (Unit: Yen)

4,696

5,246

550

Dividend per
Unit (Yen)

3,903

4,696

5,246

+1,343

Occupancy Rate

83.1%

85.7%

2.6%

Non-operating Expenses

Ordinary Income
Extraordinary Income
Net Income
Investment Units Issued and Outstanding

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. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

31

Forecasts (10th and 11th Fiscal Periods)
Assumptions for Forecast

Forecasts for the 10th and 11th Fiscal Periods

Average assets under management: 270,921 million yen (10thperiod) – 273,195million yen (11th period) Occupancy rates at period-end: 91.7% (10th period) and
91.8% (11th period)

Unit: Million Yen (excluding the number of investment units and cash dividends)

Results for the 9th
PeriodForecast for the
10th Period

Forecast for the
11th Period(ended May 31, 2010)(ending Nov. 30, 2010)(ending May 31, 2010)

Number of properties (at period-end)

31

32

32

Effective number of days of investment

182

183

182

Operating Revenues (A)Gain on Sale

Operating Revenues

6,985

6,317

6,320

―

―

―

4,026

3,851

3,815

Rental Business Expenses (excluding
depreciation)

2,063

1,854

1,786

Depreciation

Operating Expenses (B)

It is estimated conservatively that Operating Revenues in both10th and 11th Period will be low affected by free rent anddecrease in rent fee, although occupancy rate is going to improve.



Kyodo Building (Kudan Ichigo-kan) is settled at a date to be
separately agreed upon by the Seller and the Investment
Corporation which shall be by September 13, 2010.

1,184

1,232

1,258

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

3,737

3,229

3,276

Operating Expenses

Operating Income (A-B)

2,959

2,465

2,505



Non-operating Expenses

During 10th Period, consignment expenses for leasing is
anticipated to rise.

Repair expenses will be executed as planned under mid-term
management plan.

1,192

1,206

1,244

Interest Expense (including cap
amortization)

768

806

824

Financing Related Expense

420

390

409

1,773

1,259

1,260

303

―

―

2,076

1,257

1,258

395,798unit

395,798unit

395,798unit

Ordinary Income
Extraordinary Income
Net Income
Investment Units Issued Outstanding

Borrowing Costs
Interest bearing Liabilities is estimated 77,275 million yen in 10th
Period and 77,150 million yen in 11th Period.

nd per Unit (Unit: Yen)
5,246 rents may differ from3,176the assumption 3,180*DivideAlthough we assume that rents will remain at the current level, actual
depending on the status of assets under management.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

32

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

Unit 5th period 6th period 7th period 8th period 9th period
Day

183

183

182

183

182

Property

33

30

30

30

31

%

98.3

97.6

97.7

92.8

85.7

NOI
Rent revenue + Other lease business revenue –Expenses related to rent business + Depreciation

FFO
Net Income + Depreciation – Gain on Sale

Average acquisition priceMillionyen

NOI (after deduction of gain on sale)

Million
yen

6,895

6,373

6,334

5,915

4,922

Annualized NOI / Average Acquisition PriceFunds from operation (FFO)

Million
yen

3,674

3,592

4,338

3,890

3,261

Annualized Net Income / Total Assets

%

1.3

3.3

2.2

1.9

1.2

Return on asset (ROA)

286,162

272,452

265,045

265,045

266,937

NOI Yield
ROA

ROE
Annualized Net Income / Total Investments

Return on equity (ROE)

%

3

5.6

3.2

2.7

2.1

Capital adequacy ratio at end of period

%

44.8

72.8

69.6

70.2

70.8

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

%

49.9

22

25.4

25.3

25.5

Loan-to-Value (LTV) at end of period
Interest-bearing liabilities at end of period / Total
assets at end of period* Figures are rounded to the first decimal place.

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

33

Interest-bearing Liabilities
List of Interest-bearing Liabilities
Borrowings
Borrowings
Term

Investment
Investment Corporation
Corporation Bonds
Bonds
LenderShort-term
Current maturities of long term
borrowings

N/A
T otal short-term borrowings
Aozora Bank, Ltd.
Sumitomo Mitsui Banking Corporation (*)
The Sumitomo Trust and Banking Co., Ltd. （*）
Development Bank of Japan, Inc. （*）
The 77 Bank Ltd. （*）

Balance(million yen)

TypeInterest
Rate (%)

Date ofadvanceDue date

37.50 Fixed

1.81%

09/9/18

12/9/18

26.25 Fixed

1.81%

09/9/18

12/9/18150.00 Fixed

1.54%

09/9/18

12/9/18

Balance(million
yen)

Type

Interest
Rate(%)

Long-term No. 1 Unsecured Investment Corporation Bond (Callable Bonds)

3,500

T otal investment corporation bonds

3,500

Float

L+240bps

7.50 Fixed

1.81%

09/9/18

12/9/18

15.00 Fixed

1.79%

09/11/30

12/11/30

Balance by interest-bearing liabilities(Including Investment Corporation Bonds)

7.50 Fixed

1.79%

09/11/30

12/11/30

Taiy o Life Insurance Company （*）

7.50 Float

T +100bps

09/11/30

12/11/30

Resona Bank, Ltd.

7.50 Float

T +100bps

10/2/26

13/2/26

2,000.00 Fixed
2,258.75

1.59%

08/3/21

11/3/18

Kansai Urban Banking Corporation

5,500.00 Fixed

2.00%

08/6/30

11/6/30

Resona Bank, Ltd.

3,000.00 Fixed

1.90%

08/8/29

11/8/31

American Life Insurance Company

5,000.00 Fixed

2.29%

08/9/2

13/8/30Mizuho Bank, Ltd.

3,500.00 Float

T +100bps

08/9/30

11/9/30

Shinsei Bank, Ltd.

7,100.00 Float

L+180bps

09/2/20

12/2/20

The Gunma Bank, Ltd. （*）

Lender-

The Chuo Mitsui Trust and Banking Co., Ltd. (*)

Total current maturities of long term borrowings

Term

Date ofadvanceDue date

09/9/17

19/9/17(As of May 31, 2010)
Name of Financial Institution

Balance (million yen)

Share (%)

19,600.00 Float

T +219bps

09/5/21

12/5/21

Sumitomo Mitsui Banking Corporation （*）

4,925.00 Fixed

1.81%

09/9/18

12/9/18

The Sumitomo Trust and Banking Co., Ltd. （*）

3,447.50 Fixed

1.81%

09/9/18

12/9/18

Development Bank of Japan, Inc. （*）

2,737.50 Fixed

1.54%

09/9/18

12/9/18

Mizuho Bank, Ltd.

1,400.00 Float

T +125bps

09/9/18

12/9/18

The 77 Bank Ltd. （*）

992.50 Fixed

1.81%

09/9/18

12/9/18

Aozora Bank
Shinsei Bank
Kansai Urban Banking Corporation
Resona Bank
Alico
Sumitomo Mitsui Banking Corporation
Mizuho Bank
Sumitomo Trust and Banking
Development Bank of Japan
Chuo Mitsui Trust and Banking
77 Bank

1,977.50 Fixed

1.79%

09/11/30

12/11/30

Shizuoka Bank

1,000

1.4

Taiy o Life Insurance Company （*）

988.75 Fixed

1.79%

09/11/30

12/11/30

T +100bps

09/11/30

12/11/30

1,000

1.4

The Gunma Bank, Ltd （*）

988.75 Float

Kagawa Bankl

Aozora Bank, Ltd.

3,500.00 Float

T +100bps

10/2/26

13/2/28996.25

1.4

The Shizuoka Bank, Ltd.

1,000.00 Float

T +100bps

10/2/26

13/2/28996.25

1.4

Tha Kagawa Bank Ltd.(*)

992.50 Float

T +100bps

10/2/26

13/2/28

Gunma Bank
Taiyo Life Insurance
Investment corporation bonds
Total

3,500

4.8

Aozora Bank, Ltd.

The Chuo Mitsui Trust and Banking Co., Ltd. （*）

T otal long-term borrowings

66,650.00

T otal borrowings

68,908.75

23,100

31.9

7,100

9.8

5,500

7.6

5,000

6.9

5,000

6.9

4,962.5

6.9

4,900

6.8

3,473.75

4.8

2,887.5

4.0

1,992.5

2.8

1,000

1.4

72,408.75（ * ） P ortions of long-term installment loans that are due within 1 year have been categorized as current maturities of long term borrowings.

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

34

List of property name change
New name

Old name

Date ofchangeNew name

Old name

Date ofchangeDaiwa Ginza

daVinci Ginza

2010/9/1

Daiwa Azabudai

daVinci Azabudai

2010/6/27

Daiwa Ginza Annex

daVinci Ginza Annex

2010/9/1

Daiwa Shibuya SS

daVinci Shibuya SS

2010/6/29

Daiwa Shibaura

daVinci Shibaura

2010/7/14

Daiwa Nihombashi
HonchodaVinci Nihombashi
Honcho2010/7/18

Daiwa Minami-Aoyama

daVinci Minami-Aoyama

2010/7/1

Daiwa Ginza 1-chomedaVinci Ginza 1-chome

2010/7/2

Daiwa Sarugakucho

daVinci Sarugakucho

2010/7/11

Daiwa Kyobashi

daVinci Kyobashi

2010/7/2

Daiwa A Hamamatsucho

daVinci A Hamamatsucho

2010/6/30

Daiwa Onarimon

daVinci Onarimon

2010/7/16

Daiwa Jingumae

daVinci Jingumae

2010/7/1

Daiwa Kodenmacho

daVinci Kodenmacho

2010/8/5

Daiwa Shibadaimon

daVinci Shibadaimon

2010/6/30

Daiwa Jimbocho

Orix Jimbocho

2010/7/7

Daiwa MisakichodaVinci Misakicho

2010/7/7

Daiwa KinshichodaVinci Kinshicho

2010/7/6

Daiwa Shimbashi 510

daVinci Shimbashi 510

2010/8/1

Daiwa Higashi-Ikebukuro

daVinci Higashi-Ikebukuro2010/6/29

Daiwa Tsukiji

daVinci Tsukiji

2010/7/4

Daiwa Shinagawa NorthdaVinci Shinagawa Ⅱ

2010/7/12

Daiwa Tsukiji 616

daVinci Tsukiji 616

2010/8/4

Daiwa Minami-Senba

daVinci Minami-Senba

2010/7/17

Daiwa Tsukishima

Shuwa Tsukishima

2010/8/4

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

35

Appraisal Values at End of Period (1)Majors Reasons for Differences with the Previous Period (8th Period)(1) Decrease in rent(3) Increase in cancellation notices(2) Increase in cap-rate(Unit: Million yen)

Property Name

Appraisal Value at
End of 8th Period

Appraisal Valueat End of 9th
PeriodCompared to End of 8th
Period(Nov.30, 2009)(May 31, 2010)

Difference

Major
Reasons

Acquisition
Price

ChangeCompared to Acquisition
Price
Difference

ChangeCap Rate
End of 8th
PeriodEnd of 9th
PeriodDaiwa Ginza

15,70014,600-1,100-7.0%

14,100

500

3.5%

4.5%

4.6%

Daiwa Ginza Annex

3,180

3,030

-150

-4.7%

3,050

-20

-0.7%

4.5%

4.5%

Daiwa Shibaura

8,050

7,430

-620

-7.7%

8,265

-835

-10.1%

5.2%

5.2%

Daiwa Minami Aoyama

4,490

4,350

-140

-3.1%

4,550

-200

-4.4%

4.8%

4.8%

Daiwa Sarugakucho

3,320

3,350

30

0.9%

3,000

350

11.7%

5.7%

5.7%

Daiwa A Hamamatsucho

3,022

2,860

-162

-5.4%

2,865

-5

-0.2%

5.1%

5.1%

Daiwa Jingumae

2,640

1,940

-700

-26.5% (3)

2,800

-860

-30.7%

4.8%

4.7%

Daiwa Shibadaimon

2,830

2,812

-18

-0.6%

2,578

234

9.1%

5.1%

5.1%

Daiwa Misakicho

2,399

2,392

-7

-0.3%

2,346

46

2.0%

5.3%

5.3%

Daiwa Shimbashi 510

2,570

2,560

-10

-0.4%

2,080

480

23.1%

5.2%

5.2%

BPS Square

1,640

1,650

10

0.6%

1,560

90

5.8%

5.3%

5.3%

Daiwa Tsukiji

1,460

1,390

-70

-4.8%

1,240

150

12.1%

5.2%

5.2%

Daiwa Tsukiji 616

2,670

2,600

-70

-2.6%

2,440

160

6.6%

5.1%

5.1%

Daiwa Tsukishima Bldg.

7,760

7,690

-70

-0.9%

7,840

-150

-1.9%

5.3%

5.3%

Nihonbashi MS Bldg.

2,580

2,490

-90

-3.5%

2,520

-30

-1.2%

4.9%

5.0%

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. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

36

Appraisal Values at End of Period (2)Majors Reasons for Differences with the Previous Period (8th Period)(1) Decrease in market rent(2) Increase in cap-rate(3) Increase in cancellation notices(Unit: Million yen)

Property Name

Daiwa Azabudai
Daiwa Shibuya SS
Daiwa Nihonbashi Honcho

Daiwa Ginza 1-chome
Daiwa Kyobashi
Sunline Building No. 7
Daiwa Onarimon
Shinjyuku Maynds Tower
SHIBUYA EDGE
Daiwa Kodemmacho
Daiwa Jimbocho
Daiwa Kinshicho
Daiwa Higashi-Ikebukuro
Benex S-3
Daiwa Shinagawa North
Daiwa Minami-Senba
Total

Appraisal Value at
End of 8th Period

Appraisal Value at
End of 9th Period

Compared to End of 8th
Period(Nov.30, 2009)(May 31, 2010)

Difference

1,810
4,180
8,850
4,980
3,610
2,440
14,900108,000
4,780
2,090

Major
Reasons

Acquisition
Price

1.1%
-5.5%
-8.8%
-8.6%
-1.7%
0.4%
1.3%
-1.9%
-11.7% (1)(2)(3)-6.7%

ChangeCompared to
Acquisition Price

Cap Rate

Difference

ChangeEnd of 8th
PeriodEnd of 9th
Period

1,600
3,930
7,420
4,620
3,460
2,680
13,860133,800
5,900
2,460
4,150
3,653
2,958
4,950
7,710

230
20
650
-70
90
-230
1,240
-27,800-1,680
-510
140
-111
459
-1,570-2,000

14.4%
0.5%
8.8%
-1.5%
2.6%
-8.6%
8.9%
-20.8%-28.5%-20.7%
3.4%
-3.0%
15.5%
-31.7%-25.9%

5.0%
4.9%
5.0%
4.8%
5.0%
4.9%
4.9%
4.0%
4.4%
5.2%
5.6%
5.4%
5.7%
5.2%

5.0%
5.0%
5.1%
4.8%
5.0%
5.0%
4.9%
4.0%
4.6%
5.3%
5.2%
5.6%
5.4%
5.8%
5.2%

3,672
3,612
4,190
6,500

1,830
3,950
8,070
4,550
3,550
2,450
15,100106,000
4,220
1,950
4,290
3,542
3,417
3,380
5,710

20
-230
-780
-430
-60
10
200
-2,000
-560
-140
4,290
-130
-195
-810
-790

3,570

3,500

-70

-2.0%

4,810

-1,310-27.2%

5.4%

5.5%

241,495

236,653-4,842-2.0%

269,195-32,542-12.1%

-

-

-3.5%
-5.4%
-19.3% (1)(2)-12.2% (1)(3)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. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

37

Portfolio Performance Summary (1) (8th-9th Fiscal Period Results by Property)
Daiwa Ginza

Daiwa Ginza Annex

Daiwa Shibaura

Daiwa Minami Aoyama

Daiwa Sarugakucho

Daiwa A Hamamatsucho

Daiwa Jingumae

14,100
8th Period
9th Period
13,80913,74915,70014,600
85.4
89.2
12.5
12.5
UNHEX
183
182
475,678
370,933
475,678
370,93300110,243
86,31620,083
13,60527,73525,471
8,932
8,309
23,61923,610636
615
17,051
2,519
12,184
12,183
365,434
284,617
728,872
570,798
5.2%
4.0%
66,69867,066
4,965
0
0
0

3,050
8th Period
9th Period
2,980
2,965
3,180
3,030
86.4
86.5
12.7
12.7
UNHEX
183
182
83,74892,132
83,74892,1320021,257
23,816
4,191
5,949
5,559
4,863
1,297
1,600
7,662
7,662
154
146
2,393
3,594
0
0
62,49068,316124,639
137,006
4.1%
4.5%
17,374
17,441
0
2,700
0
0

8,265
8th Period
9th Period
8,180
8,164
8,050
7,430
88.5
99.1
14.5
14.5
Xymax Axis
183
182
301,168
288,493299,880
287,228
1,288
1,265
63,32076,60011,70814,171
18,57919,003
5,858
4,993
19,53919,511
585
566
6,828
18,134220
220
237,848
211,893474,396424,950
5.7%
5.1%
22,811
23,168
575
392
0
0

4,550
8th Period
9th Period
4,523
4,513
4,490
4,350
100.0
100.0
13.8
13.8
UNHEX
183
182
127,318
138,229
127,318
138,22900
33,082
24,662
9,101
3,509
7,596
6,733
3,053
2,125
11,122
10,975
217
205
1,991
1,113
0
0
94,235
113,567
187,956
227,757
4.1%
5.0%
10,735
10,557
0
0
0
0

3,000
8th Period
9th Period
2,998
2,987
3,320
3,350
100.0
100.0
14.6
14.6
UNHEX
183
182
128,250
127,876
128,250
127,8760028,54826,786
5,411
5,412
7,770
7,497
1,923
1,918
3,066
3,064
198
188
1,871
238
8,308
8,467
99,701
101,090
198,858
202,736
6.6%
6.8%
11,648
11,777
0
0
0
0

2,865
8th Period
9th Period
2,855
2,839
3,022
2,860
100.0
100.0
14.6
14.6
UNHEX
183
182
146,074
145,731
146,074
145,7200
1063,79762,611
10,687
8,867
8,918
8,430
2,616
4,588
9,090
9,059
268
258
2,816
2,007
29,40029,40082,277
83,120164,104
166,696
5.7%
5.8%
16,193
16,234
2,280
0
0
0

2,800
8th Period
9th Period
2,771
2,763
2,640
1,940
100.0
0.0
13.9
13.9
UNHEX
183
182
90,43872,89890,43872,8980020,40449,002
3,720
3,846
8,511
5,509
1,360
1,288
6,267
6,268
112
105
171
31,727259
258
70,03423,896
139,686
47,922
5.0%
1.7%
9,492
9,427
0
35,00000Property Name

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

Rent (incl. common service fees
Other Revenues (*2)(2) Property-related Expenses (thousand yen)

Administrative Expenses
Utility Charges
Property Management Fees
Property-related Taxes (*3)
Non-life Insurance Costs
Repair Expenses
Other Expenses(3) NOI (＝(1)-(2))
Annualized NOI
Annualized NOI
Depreciation and Amortization(Reference) Proceeds for Restoration and Repair Work
Proceeds from Amortization of Leashold and Security Deposits(*1) For profits from property-related activities, actual results (excluding Other Revenues and Property-related Taxes) are used and displayed by rounding down to the nearest thousand yen.
(*2) Other Revenues does not include Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*3) Fixed property taxes, city planning taxes and depreciable asset taxes recorded in Property-related Taxes are calculated by converting the actual amount to the number of operating days.
(*4) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the acquisition price.
(*5) NOI in this table is calculated by accounting for Property-related Taxes for “NOI (after deduction of gain on sale)” found on p.32 and so does not equal that figure.

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. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

38

Portfolio Performance Summary (2) (8th-9th Fiscal Period Results by Property)
Daiwa Shibadaimon

Daiwa Misakicho

Daiwa Shinbashi510

BPS Square

Daiwa Tsukiji

Daiwa Tsukiji616

Daiwa Tsukijshima

2,440
8th Period
9th Period
2,418
2,389
2,670
2,600
100.0
100.0
13.0
13.0
Property Partners
183
182
101,802
99,188101,802
99,1880022,81722,428
5,357
5,195
7,230
6,413
1,937
1,960
7,536
7,451
186
171
568
1,236
0
0
78,98576,760157,539
153,941
6.5%
6.3%
28,441
28,501
0
0
0
0

7,840
8th Period
9th Period
7,519
7,470
7,760
7,690
100.0
100.0
14.4
14.4
Property Partners
183
182
286,565
282,883
286,565
282,8830051,35052,266
8,639
9,172
23,676
20,933
4,663
4,687
12,968
12,968
435
413
965
4,092
0
0
235,215230,617469,145
462,500
6.0%
5.9%
66,61967,13800
00Property Name

Profits from property-related activities (*1Acquisition Price (million yen)Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (%)
PML (%)
Property Management Company
Number of operating days
(1) Property-related Revenues (thouRent (incl. common service fees
Other Revenues (*2)(2) Property-related Expenses (thousand yen)

Administrative Expenses
Utility Charges
Property Management Fees
Property-related Taxes (*3)
Non-life Insurance Costs
Repair Expenses
Other Expenses(3) NOI (＝(1)-(2))
Annualized NOINOI Yield (*4)
Depreciation and Amortization(Reference) Proceeds for Restoration and Repair Work
Proceeds from Amortization of Leashold and Security Deposits

2,578
8th Period
9th Period
2,505
2,492
2,830
2,812
100.0
100.0
12.5
12.5
UNHEX
183
182
101,278
104,719
101,278
104,71900
21,57332,325
5,727
5,516
7,559
6,375
1,694
1,561
5,776
5,730
165
158
649
12,9830079,70572,394
158,975
145,186
6.2%
5.6%
14,152
14,269
0
0
0
0

2,346
8th Period
9th Period
2,288
2,274
2,399
2,392
100.0
100.0
13.1
13.1
UNHEX
183
182
84,97784,896
84,97784,89600
16,317
17,965
2,976
2,879
5,415
5,417
1,274
1,271
5,588
5,590
131
124
930
2,683
0
0
68,66066,931
136,945
134,2295.8%
5.7%
14,107
14,083
0
0
0
0

2,080
8th Period
9th Period
2,144
2,138
2,570
2,560
88.2
88.2
13.4
13.4
Propety Partners

183
94,30892,8501,458
19,146
4,126
4,668
1,543
5,738
162
2,845
61
75,162
149,913
7.2%
4,978
0
0

182
86,376
85,688688
22,238
5,125
4,106
1,331
5,722
153
5,737
60
64,138
128,629
6.2%
5,825
0
0

1,560
1,240
8th Period
9th Period
8th Period
9th Period
1,452
1,435
1,243
1,236
1,640
1,650
1,460
1,390
100.0
100.0
100.0
85.1
12.5
12.5
14.0
14.0
UNHEX
Xymax Axis
株
183
182
183
182
55,32055,32056,49650,76255,32055,32056,49650,762000016,555
6,528
11,137
11,218
0
0
2,438
2,593
0
0
3,139
2,913
9,903
655
1,209
1,223
5,396
5,414
4,005
3,994
146
133
87
77
1,109
324
258
416
0
0
0
0
38,764
48,79245,35939,54477,31697,852
90,47079,305
5.0%
6.3%
7.3%
6.4%
17,315
17,338
7,482
7,276
0
0
0
0
0
0
0
0

(*1) For profits from property-related activities, actual results (excluding Other Revenues and Property-related Taxes) are used and displayed by rounding down to the nearest thousand yen.
(*2) Other Revenues does not include Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*3) Fixed property taxes, city planning taxes and depreciable asset taxes recorded in Property-related Taxes are calculated by converting the actual amount to the number of operating days.
(*4) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the acquisition price.
(*5) NOI in this table is calculated by accounting for Property-related Taxes for “NOI (after deduction of gain on sale)” found on p.32 and so does not equal that figure.

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. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

39

Portfolio Performance Summary (3) (8th-9th Fiscal Period Results by Property)
Nihonbashi MS Bldg.

Daiwa Azabudai

Daiwa ShibuyaSS

Daiwa Nihonbashi Honcho

Daiwa Ginza 1-chome

Daiwa Kyobashi

Sunline 7 Bldg.

2,520
8th Period
9th Period
2,537
2,520
2,580
2,490
100.0
100.0
11.8
11.8
UNHEX
183
182
89,17778,65589,177
77,107
0
1,548
20,53625,002
6,125
4,882
4,897
4,551
1,689
1,725
7,037
7,027
191
176
595
6,503
0
135
68,64053,653
136,905
107,601
5.4%
4.3%
17,052
17,107
0
6,990
0
0

1,600
8th Period
9th Period
1,580
1,576
1,810
1,830
87.9
100.0
13.7
13.7
UNHEX
183
182
65,78460,48065,78459,0990
1,380
14,025
16,827
2,538
3,064
2,613
2,573
1,236
1,530
5,075
5,063
120
113
2,440
4,481
0
0
51,75943,653103,236
87,544
6.5%
5.5%
6,906
6,939
1,550
0
0
0

3,930
8th Period
9th Period
3,874
3,865
4,180
3,950
91.3
100.0
14.7
14.7
UNHEX
183
182
137,729
110,651
135,689
110,1512,040
499
33,66755,683
7,053
4,679
10,694
7,946
1,941
5,683
10,460
10,297
207
191
3,310
26,8850
0
104,061
54,968207,553
110,237
5.3%
2.8%
15,192
15,1052,450
28,2980
0

7,420
8th Period
9th Period
7,289
7,264
8,850
8,070
84.9
38.2
12.0
12.0
Xymax Axis
183
182
303,118
230,343
303,118
230,3430044,55539,224
5,762
9,171
15,166
12,372
4,820
3,759
12,42912,224
430
413
5,900
1,283
44
0
258,562
191,119515,712383,289
7.0%
5.2%
28,18728,055
0
0
0
0

4,620
8th Period
9th Period
4,551
4,536
4,980
4,550
78.9
78.9
13.6
13.6
Xymax Axis
183
182
141,676
146,489
141,235
120,366441
26,122
26,571
28,446
7,418
6,555
8,128
6,224
2,646
2,070
7,285
7,281
212
199
880
6,040
0
74
115,105
118,043
229,581236,734
5.0%
5.1%
21,69019,256
0
4,500
0
0

3,460
8th Period
9th Period
3,418
3,424
3,610
3,550
100.0
88.1
13.4
13.4
UNHEX
183
182
122,130
115,383
122,130
112,089
03,293
21,30920,432
4,610
4,700
6,968
6,352
2,622
1,864
6,669
6,653
198
184
240
678
0
0
100,820
94,951
201,089
190,424
5.8%
5.5%
16,38016,191
0
0
0
0

2,680
8th Period
9th Period
2,672
2,663
2,440
2,450
76.9
79.7
14.1
14.1
UNHEX
183
182
66,20654,77652,27554,763
13,93013
50,396
24,71912,647
4,462
4,259
4,387
2,451
1,288
13,633
13,632
192
177
17,210771
0015,81030,057
31,53460,2781.2%
2.2%
12,002
9,170
16,8800
00Property Name

Profits from property-related activities (*1Acquisition Price (million yen)Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (%)
PML (%)
Property Management Company
Number of operating days
(1) Property-related Revenues (thouRent (incl. common service fees
Other Revenues (*2)(2) Property-related Expenses (thousand yen)

Administrative Expenses
Utility Charges
Property Management Fees
Property-related Taxes (*3)
Non-life Insurance Costs
Repair Expenses
Other Expenses(3) NOI (＝(1)-(2))
Annualized NOINOI Yield (*4)
Depreciation and Amortization(Reference) Proceeds for Restoration and Repair Work
Proceeds from Amortization of Leashold and Security Deposits(*1) For profits from property-related activities, actual results (excluding Other Revenues and Property-related Taxes) are used and displayed by rounding down to the nearest thousand yen.
(*2) Other Revenues does not include Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*3) Fixed property taxes, city planning taxes and depreciable asset taxes recorded in Property-related Taxes are calculated by converting the actual amount to the number of operating days.
(*4) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the acquisition price.
(*5) NOI in this table is calculated by accounting for Property-related Taxes for “NOI (after deduction of gain on sale)” found on p.32 and so does not equal that figure.

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. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

40

Portfolio Performance Summary (4) (8th-9th Fiscal Period Results by Property)
Daiwa Onarimon

Shinjuku Mynds Tower

SHIBUYA EDGE

Daiwa Kodenmacho

Daiwa Jinbocho

Daiwa Kinshicho

4,150

3,653
8th Period
9th Period
3,576
3,548
3,672
3,542
100.0
100.0
14.9
14.9
UNHEX
183
182
157,897
153,778
157,897
153,7780042,303
41,615
13,631
13,722
12,001
10,5322,459
2,504
12,78512,757
354
340
1,069
1,758
0
0
115,594
112,163
230,557
224,941
6.3%
6.2%
28,96529,02700
00Daiwa Higashi Ikebukuro

Property Name

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

Rent (incl. common service fees)

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

Administrative Expenses
Utility Charges
Property Management Fees
Property-related Taxes (*3)
Non-life Insurance Costs
Repair Expenses
Other Expenses(3) NOI (＝(1)-(2))
Annualized NOINOI Yield (*4)
Depreciation and Amortization(Reference) Proceeds for Restoration and Repair Work
Proceeds from Amortization of Leashold and Security Deposits

13,860
8th Period
9th Period
13,79013,761
14,90015,100
86.6
100.0
14.8
14.8
Xymax Axis
183
182
410,734
421,944410,734
421,9440089,09680,387
20,684
13,24819,73017,7896,150
12,19534,07434,079
647
598
7,809
2,476
0
0
321,638
341,557
641,519
684,990
4.6%
4.9%
29,24029,2268,200
0
0
0133,800
8th Period
9th Period
132,714132,676
108,000
106,000
99.1
78.1
9.4
9.4
Xymax Axis
183
182
3,173,981
2,452,626
3,167,986
2,450,303
5,995
2,323
732,492
966,128
131,249
141,682
294,783
262,968
26,532
17,390250,360
256,965
5,353
5,178
21,571
279,4182,640
2,524
2,441,489
1,486,498
4,869,637
2,981,163
3.6%
2.2%
504,362
499,844591
254,22800

5,900
8th Period
9th Period
5,900
5,885
4,780
4,220
100.0
100.0
11.2
11.2
Xymax Axis
183
182
141,504
136,644
138,999
136,6442,504
023,841
23,158
6,512
4,355
6,932
6,198
2,588
5,035
6,963
6,962
175
154
670
450
0
0
117,662
113,486
234,681
227,596
4.0%
3.9%
16,586
16,597
0
0
0
0

2,460
8th Period
9th Period
2,447
2,440
2,090
1,950
100.0
86.8
14.7
14.7

9th Period
4,205
4,290
100.0
14.3

Mitsui Fudosan Building Management

Property Partners

183
72,80772,8070
14,720
3,173
4,422
1,294
3,801
122
1,083
822
58,087
115,856
4.7%
7,937
0
0

8th Period
－
－
－
－

182
47,38847,3880
15,753
4,680
3,422
1,509
3,801
112
1,404
822
31,63563,441
2.6%
7,938
0
0

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

83
69,90569,905
0
6,425
2,670
2,486
809
0
121
78
259
63,480279,156
6.7%
11,4400
02,958
8th Period
9th Period
2,940
2,914
3,612
3,417
100.0
100.0
13.9
13.9
UNHEX
183
182
154,235
153,723
154,235
153,7230038,481
38,981
10,140
10,18815,662
14,111
2,308
2,316
9,597
9,588
351
317
421
2,458
0
0
115,753
114,742
230,874
230,1147.8%
7.8%
29,533
29,6330000(*1) For profits from property-related activities, actual results (excluding Other Revenues and Property-related Taxes) are used and displayed by rounding down to the nearest thousand yen.
(*2) Other Revenues does not include Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*3) Fixed property taxes, city planning taxes and depreciable asset taxes recorded in Property-related Taxes are calculated by converting the actual amount to the number of operating days.
(*4) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the acquisition price.
(*5) NOI in this table is calculated by accounting for Property-related Taxes for “NOI (after deduction of gain on sale)” found on p.32 and so does not equal that figure.

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. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

41

Portfolio Performance Summary (5) (8th-9th Fiscal Period Results by Property)
Bennex S-3

Daiwa Shinagawa North

Daiwa Minami-Senba

Total of 31 Properties

Property Name

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

Rent (incl. common service fees)

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

Administrative Expenses
Utility Charges
Property Management Fees
Property-related Taxes (*3)
Non-life Insurance Costs
Repair Expenses
Other Expenses(3) NOI (＝(1)-(2))
Annualized NOINOI Yield (*4)
Depreciation and Amortization(Reference) Proceeds for Restoration and Repair Work
Proceeds from Amortization of Leashold and Security Deposits

4,950
8th Period
9th Period
4,623
4,583
4,190
3,380
67.2
80.4
12.9
12.9
Xymax Axis
183
182
117,718
122,413116,298
122,4131,420
071,18856,76524,65819,203
13,62515,023
4,772
2,998
16,44916,288545
513
11,1372,738
0
0
46,53065,64892,805
131,655
1.9%
2.7%
55,22055,455
6,350
0
0
0

7,710
4,810
8th Period
9th Period
8th Period
9th Period
7,654
7,605
4,995
4,963
6,500
5,710
3,570
3,500
100.0
90.8
63.2
63.2
11.9
11.9
12.5
12.5
Mitsui Fudosan Building Management
UNHEX
183
182
183
182
236,652
190,470
155,909
103,035
236,652
188,487
155,909
103,03501,982
0056,14758,02664,26836,941
13,146
16,956
14,116
13,88915,987
13,37913,158
8,672
6,629
4,134
2,234
1,548
18,982
18,893
11,25911,586
537
499
353
332
863
4,162
23,147910
0000180,505
132,444
91,64166,094360,024265,615
182,781
132,552
4.7%
3.4%
3.8%
2.8%
48,75348,51734,26035,2283,143
1,600
16,800
0
0
3,098
0
0

269,895
8th Period
9th Period
262,260
265,860
241,495
236,653
92.8
85.7
9.7
9.8
7,680,694
7,651,615
29,0791,843,157
377,639
585,394
119,649554,246
13,487
138,797
53,942
5,837,537
11,643,176
4.4%
1,180,326
63,7850

6,649,152
6,610,024
39,1282,049,295
363,960
522,664
105,882
560,130
12,945429,305
54,4074,599,857
9,376,838
3.5%
1,184,842
333,7103,098(*1) For profits from property-related activities, actual results (excluding Other Revenues and Property-related Taxes) are used and displayed by rounding down to the nearest thousand yen.
(*2) Other Revenues does not include Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*3) Fixed property taxes, city planning taxes and depreciable asset taxes recorded in Property-related Taxes are calculated by converting the actual amount to the number of operating days.
(*4) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the acquisition price.
(*5) NOI in this table is calculated by accounting for Property-related Taxes for “NOI (after deduction of gain on sale)” found on p.32 and so does not equal that figure.

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. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

42

Organization of the Asset Management Company
Organization Chart

Company Overview
Board of Directors and Auditors

Shareholders’Shareholders’Meeting
Meeting

President and Representative
Akira Yamanouchi
Director

Auditors
Auditors
Board
Board ofof Directors
Directors
Compliance
Compliance
Committee
Committee
Investment
Investment Committee
Committee

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

Acquisitions
Acquisitions Team
Team




GeneralGeneral Administrative
Administrative
Department
Department
Matters relating to theacquisition and disposal of
assetsFormulation of investment
policies

Asset
Asset Management
Management TeamTeam

Matters relating to the leasing
and management of assets

Formulation of policies on
leasing and management ofassetsInvestment
Investment Planning
Planning TeamTeam
 Budget and performance

management of the portfolioMatters relating to theoperation of the general
meeting of investors andthe board of directors
Matters relating to theoperation of the general
meeting of shareholders,the Board of Directors andcommittees

Business
Business Planning
Planning
Department
Department


Research and analysis of
the real estate investment
trust market

Matters relating to thedevelopment of annual
asset management plans
and medium-term asset
management plans

Matters relating to humanresources and labor service
Submission of applications
for various permits,
licenses, approvals,
registrations, etc. stipulated
by laws and regulations

Analysis of real estatemarket and retail industry
trendsDevelopment and revisionof the Investment
Guidelines

Vice President andRepresentative Director

Yoshiki Nishigaki

Vice President andRepresentative Director

Yuji Shinozuka(Head of Business Planning)

Director

Atsuko Takahashi(Head of Investment Management)

Director

Naoyuki Owa(Head of Administration)

Director

Yoji Ueda (Head of Finance)

Director (non-executive)

Toshihiro Matsui

Director (non-executive)

Hikaru Sakagami

Auditor

Shigeharu Tominaga

FinanceFinance Department
Department

FinanceFinance andand IRIR TeamTeam

Matters relating tofinancing and asset liability
management

Matters relating toformulation of the IR
strategy

Accounting
Accounting TeamTeam

Budget and performance
management

Matters relating tofinancial results andaccounting

Advisory
Advisory Department
Department

Company Name
Address

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

Established

October 21, 2004

Capitalization

200 million yen

Representative
Director

Akira Yamanouchi

Directors

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

Employees

38 (Including 3 concurrent directors, as of
May 1, 2010)

Registered Financial
Instruments Firm

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

Building Lots andBuildings Transaction
Business License

No. (2)-83920, Governor of Tokyo

Discretionary Agent forReal Estate Transaction
Approval

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

 Matters relating to advisoryconcerning formulation of
replacement, disposal, or income
and expense plans for customers’
assets Matters relating to advisoryconcerning management,
operation, leasing, andmaintenance and renovation ofcustomers’ assets
 Agency or intermediary ontransactions or leasing, etc. of
assets by customers (excluding
businesses pertaining to be TypeII financial instruments business)
 Matters relating to reporting andother duties being conducted forinvestors of private funds

Daiwa Real Estate Asset Management Co. Ltd.

A member of the Investment Trusts
Association of Japan

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. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

43

IR Calendar / Website
IR Calendar

Providing Information through Our Website

Jan.
Jan.

Financial
Financial results
results announcement
announcement

Feb.
Feb.

Sending
Sending dividend
dividend notices
notices // semi-annual
semi-annual reports
reports

Mar.
Mar.
Apr.
Apr.
May
May

End
End ofof thethe 99thth fiscal
fiscal period
period(May(May 26
26 isis thethe last
last dayday ofof thethe subscription
subscription period)
period)

Jun.
Jun.
Jul.
Jul.

Financial
Financial results
results announcement
announcement

Aug.
Aug.

Sending
Sending dividend
dividend notices
notices // Semi-annualSemi-annual reports
reports
The
General Meeting
Meeting ofof Unitholders
Unitholders
The 66thth General

Viewability
Viewability

Nov.
Nov.

Easy
Easy toto
SearchSearchBased
Based onon thethe above
above mottos,
mottos,

Sep.
Sep.
Oct.
Oct.

Easy
Easy totoUnderstand
UnderstandOverseas
Overseas IR
IR
Endfiscal period
periodEnd ofof thethe 1010thth fiscal(Nov.
(Nov. 25
25 isis thethe last
last dayday ofof thethe subscription
subscription period)
period)We renewed our English website this June.

Dec.
Dec.

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. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

44

Major Investors of 9th Fiscal Period
End of 8th Fiscal Period (Nov. 30, 2009) List of Top 20 Investors
Name
Name ofof Investor
Investor

End of 9th Fiscal Period (May 31, 2010) List of Top 20 Investors

NumberNumber ofof
Units
Units owned
owned

Percentage
Percentage
Share
Share

Name
Name ofof Investor
Investor

NumberNumber ofof
Units
Units owned
owned

Percentage
Percentage
Share
Share

11

The
The Columbus
Columbus Co.,
Co., Ltd.
Ltd.

138,905

35.09%

11The
The Columbus
Columbus Co.,
Co., Ltd.
Ltd.

138,905

35.09%

22

Daiwa
Daiwa Securities
Securities Group,Group, Inc.
Inc. (*)(*)

51,89313.11%

22

Daiwa
Daiwa Securities
Securities Group,Group, Inc.
Inc.

51,89313.11%

33

NikkoCiti
NikkoCiti Trust
Trust andand Banking
Banking Corporation
Corporation (Investment(Investment Trust
Trust Account)
Account)

32,079

8.10%

33

NCT
NCT Trust
Trust andand Banking
Banking Corporation
Corporation (Investment(Investment Trust
Trust Account)
Account)

29,749

7.51%

44

Japan
Japan Trustee
Trustee Services
Services Bank,
Bank, Ltd.
Ltd. (Trust(Trust Account)
Account)

23,160

5.85%

44

Japan
Japan Trustee
Trustee Services
Services Bank,
Bank, Ltd.
Ltd. (Trust(Trust Account)
Account)

29,593

7.47%

55

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

17,748

4.48%

55

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

20,905

5.28%

66

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

16,210

4.09%

66

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

13,050

3.29%

77

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

11,546

2.91%

77

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

12,376

3.12%

88

GoldmanGoldman Sachs
Sachs International
International

8,363

2.11%

88

GoldmanGoldman Sachs
Sachs International
International

9,774

2.46%

99

The
The Fuji
Fuji Fire
Fire andand Marine
Marine Insurance
Insurance Co.,
Co., Ltd.
Ltd.

5,599

1.41%

99

The
The Fuji
Fuji Fire
Fire andand Marine
Marine Insurance
Insurance Co.,
Co., Ltd.
Ltd.

5,599

1.41%

10
10

NomuraNomura Securities
Securities Co.,
Co., Ltd.
Ltd.

4,950

1.25%

10
10

Individual
Individual

2,926

0.73%

11
11

State
State Street
Street Bank
Bank andand Trust
Trust Company
Company

3,811

0.96%

11
11

State
State Street
Street Bank
Bank andand Trust
Trust Company
Company

2,781

0.70%

12
12

An
An Individual
Individual

2,926

0.73%

12
12

The
The Bank
Bank ofof New
New York,
York, Treaty
Treaty JASDEC
JASDEC Account
Account

1,903

0.48%

13
13

DeutscheDeutsche Bank
Bank AG
AG London
London BP
BP Non-treaty
Non-treaty Clients
Clients 613
613

1,964

0.49%

13
13

State
State Street
Street Banking
Banking andand Trust
Trust Company
Company 505223
505223

1,807

0.45%

14
14

Shinkin
Shinkin Trust
Trust Bank,
Bank, Ltd.
Ltd.

1,774

0.44%

14
14

GoldmanGoldman Sachs
Sachs && Co.
Co. REG
REG

1,580

0.39%

15
15

The
The Iyo
Iyo Bank,
Bank, Ltd.
Ltd.

1,404

0.35%

15
15

BNY
BNY forfor GCMGCM Client
Client Accounts
Accounts (E)(E) ISG
ISG

1,365

0.34%

16
16

UBS
UBS AG
AG London
London A/CA/C IPBIPB SegregatedSegregated Client
Client Account
Account

1,291

0.32%

16
16

State
State Street
Street Banking
Banking andand Trust
Trust Company
Company 505104
505104

1,353

0.34%

17
17

State
State Street
Street Bank
Bank andand Trust
Trust Company
Company 505223
505223

1,128

0.28%

17
17

Osaka
Osaka Securities
Securities Finance
Finance Company,
Company, Ltd.
Ltd.

1, 318

0.33%

18
18

Trust
Trust && Custody
Custody Services
Services Bank,
Bank, Ltd.
Ltd. (Pension(Pension Trust
Trust Account)
Account)

1,116

0.28%

18
18

Trust
Trust && Custody
Custody Services
Services Bank,
Bank, Ltd.
Ltd. (Pension(Pension Trust
Trust Account)
Account)

1,248

0.31%

1,241

0.31%

1,000

0.25%

19
19

Minami-Nippon
Minami-Nippon Bank
Bank Ltd.
Ltd.

1,007

0.25%

19
19

BBH
BBH Boston
Boston UBSUBS (CAY)(CAY) Global
Global Real
Real Estate
Estate Securities
Securities Fund
Fund ofof UBSUBS Global
GlobalInvestment
Investment Series
Series20
20

BBH
BBH Boston
Boston Custodian
Custodian forfor GMO
GMO International
International Small
Small Companies
Companies Fund
Fund

1,003

0.25%

20
20

Individual
Individual* Daiwa Securities Group, Inc. owns 51,893 units, or 13.11%, as a result of the capital increase by way of third-party
allotment implemented July 1, 2009.
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. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

45

Arrangement with Columbus
Structure
Former Sponsor

daVincidaVinci
Holdings
Holdings

Agreements between Investors
Shares of the Asset Management
Company are transferred

100% ⇒ 0%

Daiwa Securities Group, Inc. and Columbus have agreed on the following:

0% ⇒ 100%

Daiwa
DaiwaSecurities
Securities
Group,
Group,Inc.
Inc.

Conclusion ofsponsor support
agreement

100%

Daiwa
DaiwaRealRealEstate
EstateAsset
Asset
Management
ManagementCo.
Co.Ltd.
Ltd.

To
To discuss
discuss thethe exercising
exercising ofof votingvoting rights
rights at
at thethe generalgeneral meeting
meeting ofof
investors
investors ofof thethe Investment
Investment Corporation
Corporation
Unitholders
agreement

Assetmanagementagreement
Columbus
ColumbusDA
DAOffice
OfficeInvestment
Investment
Corporation
Corporation

Concerning
Concerning thethe 80,000
80,000 units
units itit owns,
owns, Columbus
Columbus agrees
agrees not
not toto exercise
exercise its
itsvotingrights
or
vote
in
favor
of
certainproposals
made
at
the
generalvoting rights or vote in favor of certain proposals made at the general
meeting
meeting ofof investors
investors (*1)(*1) without
without obtaining
obtaining thethe consent
consent ofof Daiwa
Daiwa
Securities
Securities Group,Group, Inc.
Inc.

IfIf there
there isis aa risk
risk ofof notnot satisfying
satisfying conduit
conduit requirements
requirements (*2),(*2), thethe two
two parties
parties
agree
to
hold
discussions
in
good
faith
agree to hold discussions in good faith

Held 35.09%

Subsidiary of K. K.
daVinci
Holdings

To
To makemake thethe goal
goal ofof thisthis unitholders
unitholders agreementagreement thethe provision
provision ofof assistanceassistanceforfor thethe Investment
Investment Corporation’s
Corporation’s sustainable
sustainable growth
growth andand development.
development.

*1 Proposals on the appointment or resignation of board members of the Investment Corporation,
cancellation of the asset management agreement, amendments to the Articles of Incorporation,
dissolution or mergers, etc.

Underwrite thirdparty allotment ofinvestment units(13.11% after thecapital increase)*2 This refers to cases over which the Investment Corporation and the Asset Management Company
have no control over. Therefore, this agreement does not guarantee that the Investment Corporation
will always satisfy conduit requirements.

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. DA Office Investment Corporation advises reader to make investment decisions at their own judgment.

46