As of January 23, 2017

Daiwa Office Investment Corporation
Earnings Announcement for the 22nd Fiscal Period(Fiscal Period ended November 2016)

Contents
Section 3
Overview of Daiwa Office Investment Corporation

External Growth

Topics of the Fiscal Period ended November 2016 (22nd FP)・・ 3
Changes in Rent Revenue ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 4
Changes in Dividends ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 5

Properties Acquired in the Fiscal Period
ending May 2017 (23rd FP) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・23
Properties Acquired in the Fiscal Period
ended November 2016 (22nd FP) ・・・・・・・・・・・・・・・・・・・・・・・・・・・ 24
Changes in Asset Size and Trading Performance・・・・・・・・・・・・・・ 26
Properties Acquired after Sponsor Change・・・・・・・・・・・・・・・・・・・・ 27
Acquisition/Sale Policy and Status of Deliberation
for Property Acquisitions ・・・・・・・・・・・・・・ ・・・・・・・・・・・・・・・・・・・・・ 29

Section 1
Fiscal Period ended November 2016 (22nd Fiscal
Period) Performance Highlights and Forecasts
Highlights of the Fiscal Period ended November 2016 (22nd FP) ・・ 7
Highlights of Forecasts for the Fiscal Periods
ending May 2017 and November 2017 (23rd and 24th FP)・・・・ 8

Section 2

Section 4

Internal Growth

Financial Strategy

Leasing Market of Tokyo Office Buildings ・・・・・・・・・・・・・・・・・ 10
Analyses of Leasing Income ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 11
Portfolio Map: Increase and Decrease in Unit
Contract Rent Compared with Previous Fiscal Period ・・・・・・・ 15
Performance of Shinjuku Maynds Tower &E SPACE TOWER ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 16
Internal Growth Strategies・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 17
Measures to Increase Portfolio Value・・・・・・・・・・・・・・・・・・・・・ 18
Environmental Efforts・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 19
Occupancy Status of Properties Subject to Leasing Improvement in
the Fiscal Period ended November 2016 (22nd FP) ・・・・・・・・・・・ 20
Properties Subject to Leasing Improvement in the Fiscal Period
ending May 2017 (23rd FP)・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 21

Status of Interest-bearing Liabilities ・・・・・・・・・・・・・・・・・・・・・・・・・・ 32
Unitholders as of the end of the November 2016
(22nd) Fiscal Period ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 35
Change in Investment Unit Price and Dividend Yield Forecasts ・・ 36
Future Initiatives・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 37

Appendix

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

1Disclaimer

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

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

2

Topics of the Fiscal Period ended November 2016 (22nd FP)█ Domestic capital increase through public offering conducted in August 2016
Offering for the third consecutive year, Offering investment units: 12,700 units (primary offering), 1,169 units(third-party allotment), Issue price: 607,425 yen, Issue value: 587,489 yen, Total issue price: 7,461 million yen(primary offering), 686 million yen (third-party allotment), Total: 8,147 million yen; Acquired 4 properties (totalacquisition price: 13,392 million yen)

█ Results of continuous internal growth

Average Contract Rent at the end of November 2016 (Note 1): 19,219 yen (% and amount of change from theend of May 2015: +114yen, +0.6%)<Average Contract Rent of the existing 49 properties (Note 2) at the end of November 2016: 19,331 yen (Note 1)(% and amount of change from the end of May 2016: +209 yen,+1.1%)>
Occupancy Rate at end of the 22nd FP: 97.7% (22nd FP Expected Occupancy Rate estimated in July 2016:
97.5%) (Occupancy Rate at the end of the 21st FP: 98.7%)█ Property AcquisitionAcquired 4 properties during the 22nd FP
 Heiwa Higashi-nihonbashi Building (Acquisition date: June 1, 2016; Acquisition price: 6,370 million yen),
Square Daikanyama Building (Acquisition date: June 29, 2016; Acquisition price: 2,280 million yen),
Shinjuku West Building (Acquisition date: July 21, 2016; Acquisition price: 942 million yen), Ogikubo TM
Building (Acquisition date: July 21, 2016; Acquisition price: 3,800 million yen)
Acquired 1 property during the 23rd FP
 Shin Kanda Mikuracho Building (Acquisition date: December 21, 2016; Acquisition price: 1,592 million yen)

█ Financial SituationLTV (based on total assets): 42.3% (end of 21st FP: 43.3%)
Average remaining debt years at the end of the Fiscal Period: 4.1 years (end of 21st FP: 4.5 years)
Ratio of fixed interest: 80.4 % (end of 21st FP: 70.8%)(Note 1) Average contract rent is, as a rule, calculated after excluding all non-office uses such as retail, residence and warehouse.
(Note 2) Excluding properties acquired/sold in 22nd FP
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

3

Changes in Rent Revenue
Changes in increase/decrease of period-on-period rents and common area fees
(external growth/internal growth)(Million Yen)

11,000■ External growth (contribution by properties acquired/disposed excluding the during-the-period
contribution in the previous FP)■ External growth (during-the-period contribution by properties acquired/disposed)■ Internal growth (increase/decrease of rents of existing properties)

10,000

227
229
115
154

117

27

267
839

9,000

282
176
148
215
349

8,000

511
77

7,000

261

347
29

6

64

-55

190

278
-70

6,000

5,000
15th FP
15th
FP

16th FP
16th
FP

17th FP
17th
FP

18th FP
18th
FP

19th FP
19th
FP

20th FP
20th
FP

21st FP
21st
FP

22nd FPFP
22nd(Note) External growth (full contribution by properties acquired/disposed) indicates the full contribution to the revenue of current fiscal period by the change in rents
and common area fees of properties acquired or disposed in the previous fiscal period.
External growth (During-the-period contribution by properties acquired/disposed) indicates the full contribution to the revenue of current fiscal period by thechange in rents and common area fees of properties acquired or disposed in the current fiscal period.
Internal growth (increase/decrease of rents of existing properties) indicates the period-on-period change in rents and common area fees of existing properties.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

4

Changes in Dividends
Changes in Dividends per Unit (Forecast/Actual)(Yen)
14,000569,585595,860

545,661
506,681
12,000459,893449,764
10,000422,993

7,400

419,285

6,847
4,154
3,903

6,000

4,000

5,246

421,941

9,000 9,850

10,55010,560 10,710
10,700416,844

500,000

8,328 9,350 10,508 10,695

467,984 7,570 8,700
9,688

445,466 6,550 7,300 7,820
9,142

428,435

6,009
8,000

417,390478,051

9,750

9,900

(Yen)
600,000

400,000

5,500 7,200 7,540 8,256
5,350 6,250 7,478 7,621

5,500 6,542
4,850
3,600 4,850 5,986
3,180 4,100 5,107
2,843 3,280
4,464
3,176 3,671

300,000

200,000

3,240

100,000

2,000

0

0
8th FP 9th
FP 10th
FP 11th
FP 12th
FP 13th
FP 14th
FP 15th
FP 16th
FP 17th
FP 18thFP 19thFP 20thFP 21stFP 22nd
FP 23rdFP '17/11期
24th FP'09/11期'10/5期'10/11期'11/5期'11/11期'12/5期'12/11期'13/5期'13/11期'14/5期'14/11期'15/5期'15/11期'16/5期'16/11期'17/5期1年前予想（左軸）Forecast froma year earlier (left axis)

半年前予想（左軸）Forecast from

分配金実績（左軸）
Actual dividends (left axis)

1口当たりNAV（右軸）NAV
per unit (right axis)

six months earlier (left axis)

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

5Section 1
Fiscal Period ended November 2016
(22nd Fiscal Period)
Performance Highlights and Forecasts

Highlights of the Fiscal Period ended November 2016 (22nd FP)█ Results of the 22nd Fiscal Period(Million Yen)

21st Fiscal Period(ended May 2016)

22nd Fiscal Period(ended Nov. 2016)

Operating Revenue

12,363

12,853+ 489

Operating Expense

6,255

6,709

+ 454

Operation Income

6,108

6,143

+ 35

787

829

+ 41

Ordinary Income

5,326

5,325

-1

Net Income

5,250

5,324

+ 74

Dividend per Unit (Note 1)

10,508 yen

10,695 yen+ 187 yen

NAV per Unit (Note 2)

569,585 yen

595,860 yen+ 26,275 yen

Period End Occupancy Rate

98.7%

97.7%

-1.0%

Period Average Occupancy
Rate (Note 3)

98.2%

97.2%

-1.0%

NOI Yield (annualized) (Note 4)

4.0%

3.9%

-0.0%

Non-Operating Expense

Difference(Note 1) Distribution per unit for the 21st fiscal period is calculated by dividing the amount obtained bysubtracting provision for reserve for reduction entry (164 million yen) from unappropriated retained
earnings by the total number of investment units issued and outstanding.
(Note 2) NAV per unit = (Unitholders’ capital +Total appraisal value at the end of fiscal period − Total property
book value at the end of fiscal period) / Number of investment units issued and outstanding.
(Note 3) Period average occupancy rate is calculated based on occupancies at the end of months during eachfiscal period.
(Note 4) NOI Yield (annualized) calculated based on book value. NOI annualizes properties at the end of theperiod and does not include properties sold during the period.

(Reference)
Comparison of
forecasts with resultsof 22nd Fiscal Period(Million Yen)

22nd Fiscal Period(announced Jul. 2016)

22nd Fiscal Period(ended Nov. 2016)

Difference

Operating Revenue

12,775

12,853+ 77

Operating Expense

6,674

6,709

+ 35

Net Income

5,254

5,324

+ 70

Dividend per Unit

10,550 yen

10,695 yen+ 145 yenOccupancy Rate

97.5%

97.7%

+ 0.2%

Increase factors(Unit: Yen):
Full contribution of revenue (rents and common area fees)from 2 properties acquired in the previous period
Revenue (rents and common area fees)from 4 properties acquired during the period
Utilities revenue
Revenue (rents and common area fees)from 47 existing Properties (Note 5)
Gain on 1 property sold during the fiscal period
Decrease factors(Unit: Yen):
Gain on 2 properties sold in the previous fiscal period (net)
Revenue (rents and common area fees)from 2 properties sold in the previous period
Revenue (rents and common area fees)from 1 property sold during the period(+370 million)(+299 million)(+152 million)(+117 million)(+102 million)(-323 million)(-143 million)((-70 million)

Increase factors(Unit: Yen):Tax and public due (including general and administrative expenses)(+133 million)
Other operating expenses(+101 million)
Outsourcing expense(+73 million)
Repair cost(+52 million)
Asset Management fees(+48 million)
Increase factor(Unit: Yen):
Investment unit issuance cost(+31 million)(Note 5) 47 existing properties are properties held (53 properties) as of the end of
the 22nd Fiscal Period (ended November 2016) less the 2 properties
acquired during the 21th Fiscal Period (ended May 2015) and 4 properties
acquired during the 22nd Fiscal Period.

Increase factors(Unit: Yen):
Other operating revenue
Revenue (rents and common area fees)from 53 existing properties (Note 6)
Increase factors(Unit: Yen):
Other operating expenses
Outsourcing expense
Repair cost
Decrease factor(Unit: Yen):
Utility Charges(+54 million)(+27 million)(+87 million)(+50 million)(+21 million)(-118 million)(Note
53 existingLaw
properties
are the 53ofproperties
owned as of the end of theThis document is not material disclosed in compliance with the Financial Instrumentsand6)Exchangeor any regulation
similar nature,
22nd
FP (ended
November2016).
nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises
readers
to makeinvestment
decisions at their own judgment.

7

Highlights of Forecasts for the Fiscal Periods ending May 2017
and November 2017 (23rd and 24th FP)█ The 23rd Fiscal Period(Forecast)(Million Yen)

23rd FP Forecast
Ending May 2017

Difference from22nd FP

Operating Revenue

12,462- 390

Operating Expense

6,352

- 356

Operation Income

6,109

- 34

779

- 49

5,327

+2

10,700 yen+ 5 yen

96.8%

-0.9%

97.0%

-0.2%

4.0%

+ 0.0%

Non-Operating Expense
Net Income
Dividend per Unit
Expected Occupancy Rate
Expected Period Average
Occupancy Rate (Note 1)
Expected NOI Yield(annualized) (Note 2)█ The 24th Fiscal Period(Forecast)(Million Yen)

24th FP Forecast
Ending Nov. 2017

Difference from23rd FP

Operating Revenue

12,655+ 193

Operating Expense

6,604

+ 251

Operation Income

6,051

- 57

716

- 62

5,332

+5

10,710 yen+ 10 yen

97.6%+ 0.8%

Non-Operating Expense
Net Income
Dividend per Unit
Expected Occupancy Rate
Expected Period Average
Occupancy Rate (Note 1)
Expected NOI Yield(annualized) (Note 2)

Increase factors(Unit: Yen):
Full contribution of revenue (rents and common area fees)from 4 properties acquired in the previous period
Revenue (rents and common area fees)from 1 property acquired during the period
Decrease factors(Unit: Yen):
Utilities revenue
Revenue (rents and common area fees)from 49 existing properties (Note 3)
Gain on 1 property sold during the previous period
Revenue (rents and common area fees)from 1 property sold in the previous period(+32 million)(+13 million)(-146 million)(-120 million)(-102 million)(-18 million)

Decrease factors(Unit: Yen):
Repair cost
Other operating expenses
Utility Charges(-170 million)(-102 million)(-77 million)

Decrease factors(Unit: Yen):
Investment unit issuance cost
Interest expense(-31 million)(-14 million)

Increase factors(Unit: Yen):
Utilities revenue
Revenue (rents and common area fees)from 53 existing properties (Note 4)
Full contribution of revenue (rents and common area fees)from 1 property acquired in the previous period(+148 million)(+48 million)(+7 million)

Increase factors(Unit: Yen):
Utility Charges
Tax and public due
Repair cost(+106 million)(+79 million)(+78 million)

Increase factor(Unit: Yen):
Interest expense(-46 million)(Note 1) Period average occupancy rate is calculated based on occupancies at the end of months during
each fiscal period.
96.4%- 0.6%(Note 2) Expected NOI Yield (annualized) is calculated based on the book value for the 22nd Fiscal
Period for existing properties, and is based on the acquisition price for newly acquired
properties.
3.9%- 0.0%(Note 3) 49 existing properties for the 23rd FP (ending May 2017) are the 53 properties as of the end of
the 22nd FP (ended November 2016) less the 4 properties acquired during the 22nd FP.
This document is not material disclosed in compliance with the Financial(NoteInstruments
and properties
ExchangeforLaw
or anyof similar
nature,4) 53 existing
the 24th
FP regulation(ending November
2017)
are the 54 properties as of thenor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation
advisesreadersmakeinvestment
decisionsat theirownthejudgment.
end of the
23rd FP(endingto
May
2017)
less the 1 property
acquired
during23rd FP.

8

Section 2
Internal Growth

Leasing Market of Tokyo Office Buildings
Leasing Market of Tokyo Office Buildings(Yen/Tsubo)
24,00010.0%

22,0008.0%

20,000

6.0%

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

Rent(Yen/Tsubo)(Rent)（賃料）

27,00018,00018,319 yen
4.0%

16,0003.29%
2.0%25,000

Ｂクラスビル
B
Class Bldg.
2007/923,000

ＡクラスビルA
Class Bldg.
2001/6

2000/1

Rental Market Clockレンタル・マーケット・クロック(conceptual
chart)（イメージ図）2003/1021,000'16/01

0.0%'15/01'14/01'13/01'12/01'11/01'10/01'09/01'08/01'07/01'05/01'04/01'03/01'02/01'01/01

14,000'06/01

Existing building average rent (left axis)
Existing building vacancy rate (right axis)(Vacancy Rate)

2008/919,000Rent and vacancy rate of large scalebuildings* of 5 Central Wards of Tokyo(Data): Miki Shoji(Tsubo)Predicted figures*

400,000

9.0%

2012/6

2011/1217,0002016/122012/127.5%

300,000
200,000

6.0%

100,000

4.5%

2008/915,0002007/92000/1

2001/6

2003/10

13,00003.0%-100,000

1.5%

Floor area of new demands(Data): CBRE “Office market medium term forecast 2016-2020”*Predicted figures as of June 2016

'20

'19

'18

'17

'16

'15

'14

'13

'12

0.0%
'11

'10

'09

'08

'07

'06

'05

'04

'02

'01

-200,000'03

Floor area of new supplies
Vacancy rate

2011/12

Office Buildings** of 5 Central Wardsof Tokyo

2016/122012/6

11,000
0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

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

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

10Analyses of Leasing Income (1)- Transition of Occupancy and New Leases / Cancellations Rates Transition of New Leases andCancellations and its Reasons**

Period-end Occupancy Rate
(Cases)Occupancy Rate (Actual)
Expected Occupancy Rate
Expected Occupancy Rate (as of disclosure in Jul. 2016)60

98.7% 97.3%
97.2% 98.3%
97.7%
97.6%
97.7%
96.4%
96.4%
95.9% 95.4%
97.5%
94.3%
97.3%
95%
96.8%
96.3%
92.8%
95.0%

100%

92.4%

90%
85.7%

33

17

20

24th FP

23rd FP

22nd FP

21st FP

20th FP

19th FP

18th FP

17th FP

16th FP

15th FP

14th FP

13th FP

12th FP

Rate of new leases
Expected rate of new leases

16 18 13

18

24 25
9

4

-20

-14 -12

-20

-20

-24

Rate of cancellations
Expected rate of cancellations

42 43

18

12

-2

Rate of New Leases and Cancellations*
(%)

30 31

0

11th FP

10th FP

9th FP

8th FP40

685%
7th FP

44
38

22

17
12 15 1111
4
2
-2

-13 -11 -13 -13-15 -13-24-25 -26

-31

-40

20

New Leases

0
-3.4
-3.9

-10 -3.9

-7.3

-6.3

-6.1 -5.7

-1.7

-1.6

-3.8

-3.2 -2.8

24th FP

23rd FP

22nd FP

21st FP

20th FP

19th FP

18th FP

17th FP

16th FP

15th FP

14th FP

13th FP

12th FP

11th FP*Transition of rate of new leases and cancellations areas to the total leasable area.

22nd FP

21st FP

20th FPNet New Leases

Previous numberof leases: 6
22nd Period

10th FP

8th FP

7th FP

-20

-5.9

-5.3

-2.4

-14.7
9th FP

-12.0

-2.8

Cancellations

19th FP

3.5

18th FP

1.8 2.9 2.6

17th FP

4.3

2.0

16th FP

6.2

15th FP

6.1

14th FP

4.4

13th FP

5.7

12th FP

3.3

11th FP

3.2

10th FP

7.2
3.9

-53
9th FP

10-60
9.8 8.2

8th FP

13.4
7.4

New Leases
Cancellations

Cost
Space
Space
Space
BetterReduction Expansion Consolidation Reduction Location

0
1

10
0

0
5

0
7

Other

Total

6
0

17
13

1
0

** Excluding residence and warehouse tenants.

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

11Analyses of Leasing Income (2) - Improvement in Basic Strength Basic strength (profitability accompanied by realization of internal growth) has steadily improved due to renewal ofcontract and occupancy of new tenants.
Increase in rent revenue due to improved basic strength leads almost directly to an increase in distributable income.

Monthly Rent Increase Due to Contract Renewal/Occupancy of new tenantsContract Renewal(Please see p.13 for details)

Occupancy of new tenants(Please see p.14 for details)

Total

19th FP

5,862 thousand yen/month

3,157 thousand yen/month

9,020 thousand yen/month

20th FP

7,938 thousand yen/month

6,438 thousand yen/month

14,376 thousand yen/month

21st FP

13,479 thousand yen/month

766 thousand yen/month

14,246 thousand yen/month

22nd FP

8,759 thousand yen/month

3,988 thousand yen/month

12,747 thousand yen/month

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

Growth rate of dividend
resource*2

6 months

Annualized

6 months

Annualized

19th FP

0.7%

1.3%

1.5%

3.0%

20th FP

1.0%

2.0%

2.1%

4.3%

21st FP

0.8%

1.7%

1.8%

3.6%

22nd FP

0.7%

1.5%

1.5%

2.9%

*1 Obtained by dividing the amount of rent increase (increased amount of monthly rent x 6 months) due to the improved basic strength in each fiscal period by rent revenue (rents
and common area fees) in the previous fiscal period to the respective fiscal period.
*2 Obtained by dividing the amount of rent increase (increased amount of monthly rent x 6 months) due to the improved basic strength in each fiscal period by net income in theprevious fiscal period to the respective fiscal period.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

12Analyses of Leasing Income (3)- Changes in Amounts of Rent Increase/Decrease of Contract Renewal Tenants Contract Renewal Area
█ Changes in Rent Increase/Decrease Rate of Contract Renewal Tenants (sections)█ The 22nd Fiscal Period Contract * The ratio of areas for which contract was renewed in
the 22nd FP (through Nov. 2016) to the total leased
Renewal Tenants
2
Cancellation from Non
Contract Renewal Area, 3.2%
Contract Renewal
Area, 18.1%

Non Contract Renewal Area
(Excluding cancellation), 78.6%

22nd FP
42.6%
21st FP 0.2%
49.0%
20th FP
37.5%
19th FP
26.5%
18th FP4.8% 8.6%*
17th FP 8.5% 7.9% 14.1%*
16th FP 10.0% 4.6%
15th FP 14.4% 3.1%
14th FP
18.9%
13th FP
40.6%

0%

20%
Decrease

15.0%
10.0%
5.0%
0.0%
-5.0%
-10.0%-15.0%
3.9% -20.0%
0.7% -25.0%

area (323,776.16m ) as of end of May 2016.
Properties sold in the fiscal period ended Nov. 2016
are included in those not subject to renewal.

53.4%
50.1%
61.1%
70.8%
66.7%

19.9%
12.1%
8.2%
12.3%
13.8%
4.0%

57.4%
77.1%
70.3%
67.3%
0.8%

40%
Increase

54.6%
60%
Unchanged

1.4%
2.7%

4.5%

5.0%
1.0%

2.5%

0.0%
-5.2%
-7.0%

-6.5%
-7.0%

-10.2%

10.0%

2% or less3%

8%
10% or more but
less than 15%

Increase rate of

17.6%

18.1%

2% or moremonthly rent
but less than 5%
6.1%

38%

(Previous FP:
7.3%)
5% or more but
less than 10%

5.0%

34%

0.0%

22nd FP

23rd FP

24th FP

25th FP

26th FP* The ratio of areas scheduled for contract renewal in each period to the total leased area
(329,312.48㎡) as of end November 2016.

7.2%

6.1%
0.0%

-5.1%

Properties withrent increase

15% or
more

30.0%

18.2%

6.1%

Increase rate
Decrease rate
Rent increase/decrease rate

17%

24.6%

7.3%

█ Status of Upward Rent Revisions(Breakdown of upward revision magnitude for monthly rents in the 22nd FP)

Expected renewals

23.6%

0.0%

0.0%

9.0%

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

█ Contract Renewal Periods (based on leasable area)

20.0%

9.0%

-22.7%
14th FP 15th FP 16th FP 17th FP 18th FP 19th FP 20th FP 21st FP 22nd FP

80%
100%
Cancellation

25.0%

5.2%
5.2%

-4.9%

-22.7%*Of the increase in the 17th FP, 14.1% was due to some tenants’ switching from subleaseto master lease agreements and 7.9% was thanks to negotiations with tenants.

15.0%

9.8%
4.3%

Daiwa Ginza
Daiwa Ginza Annex
Daiwa Shibadaimon
Daiwa Nihonbashi Horidomecho
Shinjuku Maynds Tower
Daiwa Jinbocho 3-chome
shinyon curumu
Azabu Green Terrace
Glass City Shibuya
Integral Tower, etc.

Increased amount ofmonthly rent
8,759 thousand yen/month* Percentage figures are based on total monthly rent.

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

13

Analyses of Leasing Income (4)- Increase/Decrease in Rent Due to New Leases and Cancellations -21st FP
22nd FP
New tenant (left axis)* Percentage figures are based on total monthly rent.

Properties with rent increase due to occupancy of
new tenants during 22nd fiscal period

Daiwa Minami Aoyama
Daiwa Tsukishima
E SPACE TOWER
Daiwa Nihonbashi
Hongokucho

shinyon curumu
Daiwa Shibuya
Miyamasuzaka
Glass City Shibuya
Daiwa Kamiooka
etc.

Increased amount of monthly rent
3,988 thousand yen/month50
22nd FP

21st FP

20th FP

19th FP

18th FP

17th FP

16th FP

15th FP

14th FP

0.0%

19th FP
20th FPPrevious tenant (left axis)
Increase/decrease rate (right axis)

13th FP0

3.8%

12th FP

10,00012,00070

19,219 60

Unit rent index(period-on-period comparison, right axis)**11th FP

2.6%

18,738Average Contract Rent*

15,00010th FP

7.5%

9.8%

18,0008th FP

7.2%

11.3%

18,674 19,105

7th FP

29,97029,20321,000

6th FP

20,000

14.0%

15.0%

24,00027,000

5th FP

30,000

22.5%
18.8%

46,14235,34532,188The contract rent of 49 existing properties in the 22nd Fiscal
Period was 19,331 yen (period-on-period change of 209 yen)

100
80.16
78.85
90
78.52 79.53
80

4th FP

40,00059,04255,05452,58050,000(Yen/Tsubo)
30,000（Total Monthly Rent, Thousand Yen）
60,000

Average Contract Rent and Market Rent

9th FP

Monthly Rent Increase/Decrease and Increase/Decrease Rate
Due to Occupancy of New Tenants(compared to the previous tenant for the same leasing area)

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

(Million Yen)

Attribution Analysis/Monthly Contract Rent*

2,000
1,950

Decrease by
Rent
Revisions

1,900

1,863
1,850
1,800

+8
Increase by
Rent
Revisions+59

Decrease by
Tenants’Cancellations-68

Decrease by
Transfer

+57

-15

1,905

0
Increase by
New Leases

Increase by
New Acquisition

1,750
1,700
End of 21st FP
Monthly Contract Rent

End of 22nd FP
Monthly Contract Rent

* Monthly Contact Rent is a total of final rent from contracting tenants at the end of the Fiscal Period.
Monthly Contract Rent for Shinjuku Maynds Tower was adjusted to 6/7 of the total.

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

14

Portfolio Map: Increase and Decrease in Unit Contract Rent
Compared with Previous Fiscal Period
Greater Tokyo

5 Central Wards of Tokyo

Comparison with previous Fiscal Period
Increase and decrease of unit contract rent
Unit rent increase:27
The number in indicates increase
for the consecutive period(Ex: 2 indicates increase for thesecond consecutive period)

Toshima Ward

Unit rent decrease:2
Unit rent maintained: 20

Daiwa Higashi-Ikebukuro
Integral Tower
Meguro Place Tower
Daiwa Osaki 3-chome
Daiwa Shinagawa NorthLAQUAS Higashi Shinjuku
Nikko Building
Shinjuku Maynds Tower

2

ShibuyaWard
SHIBUYA EDGE3E SPACE TOWER 5
Shinsen Place

3

Glass City Shibuya

Daiwa Sarugakucho
Daiwa Misakicho
Shinjuku Ward
Daiwa Jimbocho
Daiwa Jinbocho 3-chome
3 shinyon curumu
Chiyoda Ward
Daiwa Kodenmacho
Daiwa Nihonbashi Hongokucho 3
Daiwa Nihonbashi Horidomecho
Chuo Ward
Daiwa Kojimachi 4-chome
Daiwa Kayabacho Build. Kirin Nihonbashi Building Koto
Daiwa Jingumae Daiwa Akasaka
WardRiver Gate
2 Daiwa Kyobashi
3
Daiwa Hatchobori ekimae
Daiwa Hatchobori ekimae West
Daiwa Ginza Annex 2
Concept Aoyama
Daiwa Tsukijiekimae
Daiwa Ginza 7
Daiwa Minami Aoyama
Daiwa Tsukiji
Daiwa Shibuya Miyamasuzaka
Daiwa
Shimbashi
510
Daiwa Nishi-Shimbashi
3
Daiwa Tsukishima
Daiwa Onarimon
Daiwa Azabudai
4Minato Ward
Daiwa Ebisu 4-chome
2

Azabu Green Terrace

Daiwa A Hamamatsucho
Daiwa Shibadaimon
Daiwa Shibaura

Daiwa Kamiooka

Major Regional Cities
Daiwa Meieki
Kitahama Grand Building

As of November 30, 2016
(Note) Properties acquired/sold in the 22nd Fiscal Period are not included.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

15Performance of Shinjuku Maynds Tower & E SPACE TOWER█ Shinjuku Maynds Tower
100%
80%

Office Building Supply in the 23
Wards of Tokyo

Shinjuku Maynds Tower Occupancy Rate
98.8%

94.7%

94.9%
99.9% 98.3%
95.7%
99.9%

98.8%

99.9%

99.2%

96.1%

94.0%

(Million Yen)

96.6%

2,400

40%

2,200

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

20%

2,000
1,800

24th FP

23rd FP

22nd FP

21st FP

20th FP

19th FP

18th FP

17th FP

16th FP

15th FP

14th FP

Acquisition price 133,800 million yen

13th FP

12th FP

0%
Address

2011-2015

2,600

60%

2-chome, Yoyogi,
Shibuya-ku

2,800

Others1,460,000m2
Shibuya Ward
220,000m2
Shinjuku Ward
520,000m2
Minato Ward
900,000m2

Chiyoda Ward
1,950,000m2
Chuo Ward
740,000m2

E SPACE TOWER Occupancy Rate

█ E SPACE TOWER(Million Yen)

100%
80%

100.0% 100.0% 100.0% 100.0% 100.0%
89.3%

100.0% 100.0%

89.1%

96.8% 100.0%

96.4% 100.0%

100.0%

60%
Occupancy rate at end of period (left axis)
Occupancy rate (forecast) (left axis)

20%

600
500

24th FP

23rd FP400
22nd FP

21st FP

20th FP

19th FP

18th FP

16th FP

15th FP

14th FP

13th FP

12th FP

Upon Acquisition

Acquisition price 24,000 million yen

17th FP

Rent revenue (right axis)

0%
3 Maruyama-cho,Shibuya-ku

800
700

40%

Address

2016-2020
900

Others760,000m2
Shibuya Ward
590,000m2
Chiyoda Ward
1,610,000m2
Shinjuku Ward2
190,000m
Minato Ward
1,620,000m2

Chuo Ward
690,000m2

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

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

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

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

Office ManagementgTeam ((7 members))
Aims at maximizing
asset value withassigning thespecialist grouppersonnel in charge
to each of allproperties in theinvestment
corporation’s
portfolio.

Jun Arai
Asset management work
history: 10 years 7 months

Hiroshi Udagawa
Asset management work
history: 10 years 4 months

Takafumi Ushiku
Asset management work
history: 12 years 2 months

Kotaro Ishii
Asset management work
history: 10 years 7 months

Chie Kamimura
Asset management work
history: 10 years 5 months

Yuuki Kobatake
Asset management work
history: 4 years 1 month

Jun Iwasaki
Asset management work
history: 1 month

Construction Management Team (4 members)

Engineering:
Formulation andimplementation of
construction
planning of theassets

Shigeyoshi Naito
Asset management
work history:
15 years 8 months

Koji Ozeki
Asset management
work history:
10 years 6 months

Naoki Murayama
Asset management
work history:
1 year 5 months

Kazuyoshi Ono
Asset management
work history:
10 years 0 month(Note) “Asset Management work history” is the number of years engaged in the relevant work (as of end of
Nov. 2016) and does not indicate the number of years employed at the asset management company.

Investment Planning Team (3 members)

Aims to maximize asset value

Middle office work: Budget and performance management for the portfolios

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

17

Measures to Increase Portfolio Value█ Strategic Renewal Works█ Coexistence with Local Societies

・Daiwa Tsukishima（Before）<Entrance>（After）■ Participated in “Shinjuku Minamirumi”
・Shinjuku Maynds Tower
Shinjuku Maynds Tower participated in “Shinjuku Minamirumi” (annual event held
for the fourth time) organized by Odakyu Electric Railway Co, Ltd., Takashimaya
Co., Ltd., East Japan Railway Company, Asahi Mutual Life Insurance Company
and Daiwa Securities, and arranged delightful space featuring shooting stars andsnow crystals displayed in a row from the snow-covered Christmas tree to thepedestrian deck and to the main entrance.

[Period: November 9, 2016 – February 14, 2017]<Elevator Hall><Pedestrian Deck><Christmas Tree>＜Plants＞<Entrance><Restroom>＜ビル模型＞

・Concept Aoyama<Restroom>

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

18

Environmental Efforts█

Progress in Introduction of Green Leasing at Shinjuku Maynds Tower
As part of measures to protect the environment and raise tenant satisfaction, the Investment Corporation has taken initiatives in which it concludes green
leasing agreements with tenants and promotes installation of LED lighting in areas exclusively occupied by the tenants at Shinjuku Maynds Tower since2014. Around 40% of areas exclusively occupied by the tenants are expected to have LED lighting in the fiscal period ending May 2017.
Ratio of areas with LED lighting installed*

Benefits of introducing green leasing【Benefits for Tenants】
 Reducing utility charges and maintenance costs
 Improving working environment in offices
 Contributing to corporate social responsibility (CSR)
 Enhancing the company’s image【Benefits for the Investment Corporation】
 Reducing maintenance costs

Shinjuku Maynds Tower

 Enhancing property value by making energy-saving

investments
 Receiving green lease fees
*Forecast figure is indicated for the 23rd FP.

█

Acquired “Green Star” Rating for 5th Consecutive Year at GRESB 2016
Daiwa Real Estate Management participated in the Global Real Estate Sustainability Benchmark (GRESB)’s GRESB Real Estate Assessment in 2016,
targeting Daiwa Office Investment Corporation, and received a high evaluation on sustainability in both “management and policy” and “implementationand measurement” and acquired Green Star, the highest category, for the fifth consecutive year.

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

19

Occupancy Status of Properties Subject to Leasing Improvementin the Fiscal Period Ended November 2016 (22nd FP)█ Daiwa Tsukishima (Acquisition Price: 7,840 million yen)

█ Daiwa Shimbashi 510 (Acquisition Price: 2,080 million yen) █ Daiwa Osaki 3-chome (Acquisition Price: 1,650 million yen)
 Located at a 6-minute walk

 Located within an approximate

Location
Site Area
Structure
Floor
Use

Location

4-chome, Tsukishima, Chuo-ku, Tokyo
3,157.62m2
S
5F
OfficeTotal Floor Area

Site Area
Structure
Floor
Use

5-chome Shimbashi, Minato-ku, Tokyo
626.18m2
SRC
B1/8F
Store / Office / Parking

Total Floor Area

9,416.34m2
Construction Date July 1996

viewings before and after the major renewal work andraising recognition of the property among brokers.
 Visited brokers separately considering businesscategories/styles that would match the property
characteristics and explained the property.

Floor
Use

88.0
99.6

99.6

(82.2)*'15/11

 Promoted to increase inquiries by holding property

Structure

3-chome Osaki, Shinagawa-ku, Tokyo
749.63m2
S/RC
B1/6F
OfficeOccupancy Rate (%)

88.0
99.6

Location
Site Area

2,243.36m2
Construction Date September 2007

Occupancy Rate (%)

100.0
90.0
80.0
70.0

three-minute walk from the west
exit of Osaki Station on all JR
Lines.
 An area with high traffic
convenience not only to themetropolitan area but also tomajor cities all over Japan since
it is close to Shinagawa Stationand Haneda Airport. Sub-officeneeds of companies andoccupancy needs of groupcompanies are expected as
there are several properties with
headquarters functions of major
companies in the surroundingarea.

Total Floor Area

3,653.19m2
Construction Date April 1974

Occupancy Rate (%)

 Located at an approximate

from Shimbashi Station on
the JR Yamanote Line. An
area with high traffic
convenience where
Shimbashi Station on the
Toei Asakusa Line and Tokyo
Metro Ginza Line can also beused.
 Kanjo 2 Gosen (MacArthurRoad) runs in the neighboringarea and masscommunication relatedcompanies and local
agencies of financial
institutions and government
offices concentrate.

2-minute walk to Kachidoki
Station on the Toei Oedo Lineand an approximate 5-minute
walk to Tsukishima Station on
the Tokyo Metro YurakuchoLine and the Toei Oedo Line.
 Area with back office needs
by companies withwarehouses and logistics
facilities. Has
competitiveness due to its
relatively large scale in thesurrounding area.

'16/2

'16/5

'16/8

'16/11

 Captured floor expansion motive of the existing tenants

through constant and good relationships and succeeded
to conclude a floor expansion agreement without
creating any downtime.
* Without the floor expansion from the existing tenant,the occupancy rate was supposed to fall to 88.2%.

 With the property’s high scarcity value due to its

relatively new age and proximity to the station,
succeeded in drawing out the major companies’ needsby tapping into the needs for sub-offices/relocation ofcompanies with rent-paying capacity.
 As a result of negotiations, contracts were concluded at
an early stage with favorable terms and conditions torealize full occupancy.

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

20

Properties Subject to Leasing Improvement in the Fiscal Period
ending May 2017 (23rd FP)█ Daiwa Tsukishima (Acquisition Price: 7,840 million yen)

█ Concept Aoyama (Acquisition Price: 9,800 million yen)

 Located within an approximate

 Located at an approximate 4-

2-minute walk to Kachidoki
Station on the Toei Oedo Lineand an approximate 5-minute
walk to Tsukishima Station on
the Tokyo Metro YurakuchoLine and the Toei Oedo Line.
 Area with back office needs
by companies withwarehouses and logistics
facilities. Has
competitiveness due to its
relatively large scale in thesurrounding area.

minute walk from Gaiemmae
Station on the Tokyo Metro
Ginza Line and also anapproximate 8-mitue walk from
Omotesando Station on theTokyo Metro Ginza, Hanzomon
and Chiyoda Lines.
 Area with constant demandmainly from creative
businesses such as apparel
which seek the image
associated with Aoyama areaand from foreign companies as
well.

█ River Gate (Acquisition Price: 28,000 million yen)
 Located at an approximate 3-

minute walk from Suitengumae
Station on the Tokyo Metro
Hanzomon Line. All together 3
subway stations and 4 subway
lines are available for use.
 With excellent access toOtemachi and Nihonbashi
areas, office needs frommajor companies’ affiliates
located in the areas are
expected.

Location

4-chome, Tsukishima, Chuo-ku, Tokyo

Location

3-chome Jingumae, Shibuya-ku, Tokyo

Location

Nihonbashi Hakozaki-cho, Chuo-ku, Tokyo

Site Area

3,157.62m2

Site Area

1,439.04m2

Site Area

7,088.66m2

Structure

S

Structure

S/RC

Structure

S/SRC/RC

Floor

5F

Floor

B1/7F

Floor

B2/20F

Use

OfficeUse

Office, warehouse

Use

Office, apartment, parking

Total Floor
Area
Occupancy
Rate
Construction
Date

Total Floor
Area
Occupancy
Rate
ConstructionDate

9,416.34m2
56.7% (Nov. 2016)
July 1996

 Aim for securing tenants centering on companies basedin the area, etc. by taking advantage of favorable accessto central Tokyo and relatively low rent level for the sizeand grade of the property.

4,933.40m2
100.0%

71.4%(Nov. 2016)(Assumed figure for May 2017)

November 2001

 With the move-out of the main tenant, implemented

renovation of facilities (air-conditioning, plumbingrelated) which was left undone since the completion toenhance the value of the building.

 Aim for early leasing for the remaining vacancies by Aim to take in needs of creative businesses and/or

launching campaigns targeting tenants and brokers.

needs from Shibuya area where vacancies are
decreasing, capitalizing on the brand strength of the
Aoyama area.

Total Floor
Area
Occupancy
Rate
Construction
Date

53,790.26m2
95.1%

91.8%

(Nov. 2016)(Assumed figure for May 2017)

February 1994

 Aim for early securement of tenants by taking advantageof the property feature capable of securing 600 tsubos
or larger area per floor at a reasonable rent in Tokyo’s
major three wards.
 For leasing sections scheduled to be vacated but still

occupied (cancellation dates yet to arrive), aim toconclude leasing contracts before the cancellation dates
by conducting a property viewing using currently vacantsections.

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

21Section 3External GrowthProperties Acquired in the Fiscal Period ending May 2017
(23rd FP)█ Shin Kanda Mikuracho Building
Acquisition Price: 1,592 million yen (Acquisition Date: December 21, 2016)█ Ratio of portfolio properties by area after
the acquisitions*
Major Regional Cities****(2 properties)
Greater Tokyo***(7 properties)

3.1%

8.3%

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

Kanda Mikura-cho, Chiyoda-ku, Tokyo
365.65m2
SRC/S/B1/7F
2,167.76m2
NOI Yield
4.0%
NOI Yield
4.9%

469,341.7
million yen

Appraisal Value 1,680 million yen (Note 1)
Construction Date January 1991
Occupancy Rate 43.4% (Note 2)
Number of Tenant 3 (Note 2)

Assumed Occupancy Rate
Mid-term (Note 4)
96.0%
Assumed Occupancy Rate Depreciation
95.0%(Note 5)NOI Yield
4.6%

Assumed Occupancy Rate

Five Central Wards of Tokyo**(45 properties)

96.0%
0.6%

88.6%

(Note 1) As of December 1, 2016. (Note 2) Upon acquisition. (Note 3) Upon Acquisition indicates figures obtained by using
expected annual balance of payments under the assumed occupancy rate, calculated based on the lease agreement uponacquisition, etc. while taking into account the accrual of tax and public due, etc. (Note 4) Mid-term indicates estimatedfigures for normal operation period (with assumed occupancy rate of 96.0%) after acquisition, obtained by deducting rent
business-related expenses from rent revenue assumed under rents over a medium term, and do not represent forecast
figures for the current period or the next period onward. (Note 5) Depreciation indicates a figure obtained by dividing the total
amount of depreciation (6-month equivalent) expected to be posted upon property acquisition and depreciation (for 6
months) expected to be posted in the following fiscal period by the acquisition price.

 Transportation access

The property is a five-minute walk from Kanda Station on the JR Yamanote Line, JR Keihin
Tohoku Line, JR Chuo Line and the Tokyo Metro Ginza Line and a four-minute walk from ShinNihonbashi Station on the JR Sobu Line. It is a seven-minute walk from Mitsukoshimae Stationon the Tokyo Metro Ginza Line and Tokyo Metro Hanzomon Line, Kodenmacho Station on theTokyo Metro Hibiya Line, and Iwamotocho Station on the Toei Shinjuku Line and is located in anarea with rare traffic convenience where five stations and eight lines fall within walking distance.

 Property overview

The property has seven floors above ground and one below with a gross floor area of
2,167.76m2 and a leasable area of approximately 80 tsubos per floor is secured. It has 50mm of
OA floor and facilities include an individual air conditioner in addition to 2,450mm of ceilingheight for a standard floor. The rental room has a rectangular shape (regular shape) and an
office space with no pillars, allowing flexible layout and efficient use.

* Based on acquisition price** The Five Central Wards of Tokyo are Chiyoda, Chuo, Minato, Shinjuku and Shibuya Wards.
*** Greater Tokyo is Tokyo, Kanagawa, Chiba and Saitama Prefectures (excluding the Five
Central Wards of Tokyo).

**** Major Regional Cities are the Osaka metropolitan area (Osaka, Kyoto and Hyogo
Prefectures), Nagoya metropolitan area (Aichi, Mie and Gifu Prefectures), and ordinancedesignated cities and core cities set forth in the Local Autonomy Act.

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

23

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

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

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

Location
Site Area
Structure/Floor
Total Floor Area

Location
Site Area
Structure/Floor
Total Floor Area

Upon Acquisition(Note 3)
Appraisal

Higashi-nihonbashi, Chuo-ku, Tokyo
1,213.24m2
S/7F
6,724.10m2
NOI Yield
4.1%
NOI Yield
4.3%

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

Assumed Occupancy Rate
Mid-term (Note 4)
100.0%
Assumed Occupancy Rate Depreciation
96.0%(Note 5)NOI Yield
4.2%

Assumed Occupancy Rate

96.0%
0.8%

Upon Acquisition(Note 3)
Appraisal

Daikanyama-cho, Shibuya-ku, Tokyo
503.72m2
S/6F
1,989.40m2
NOI Yield
4.0%
NOI Yield
4.0%

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

Assumed Occupancy Rate
Mid-term (Note 4)
100.0%
Assumed Occupancy Rate Depreciation
95.0%(Note 5)NOI Yield
4.5%

Assumed Occupancy Rate

100.0%
0.4%(Note 1) As of April 30, 2016. (Note 2) Upon acquisition. (Note 3) Upon Acquisition indicates figures obtained by using
expected annual balance of payments under the assumed occupancy rate, calculated based on the lease agreement uponacquisition, etc. while taking into account the accrual of tax and public due, etc. (Note 4) Mid-term indicates estimated figures
for normal operation period (with assumed occupancy rate of 96.0%) after acquisition, obtained by deducting rent businessrelated expenses from rent revenue assumed under rents over a medium term, and do not represent forecast figures for thecurrent period or the next period onward. (Note 5) Depreciation indicates a figure obtained by dividing the total amount ofdepreciation (6-month equivalent) expected to be posted upon property acquisition and depreciation (for 6 months) expected
to be posted in the following fiscal period by the acquisition price.

(Note 1) As of June 1, 2016. (Note 2) Upon acquisition. (Note 3) Upon Acquisition indicates figures obtained by using
expected annual balance of payments under the assumed occupancy rate, calculated based on the lease agreement uponacquisition, etc. while taking into account the accrual of tax and public due, etc. (Note 4) Mid-term indicates estimated figures
for normal operation period (with assumed occupancy rate of 100%) after acquisition, obtained by deducting rent businessrelated expenses from rent revenue assumed under rents over a medium term, and do not represent forecast figures for thecurrent period or the next period onward. (Note 5) Depreciation indicates a figure obtained by dividing the total amount ofdepreciation (6-month equivalent) expected to be posted upon property acquisition and depreciation (for 6 months) expected
to be posted in the following fiscal period by the acquisition price.

 Transportation access Transportation access

The property is located at approximately 2-minute walk from Higashi-Nihonbashi Station on the
The property is located at approximately 7-minute walk from Daikanyama Station on the Tokyu
Toei Asakusa Subway Line and Bakuro-Yokoyama Station on the Toei Shinjuku Subway Line andToyoko Line and Shibuya Station on the JR Yamanote Line. It faces Hachiman Dori which is a very
3-minute walk from Bakurocho Station on the JR Sobu Line (Rapid) and all three lines arebusy street and an exclusive residential area and apparel shops are located in its surrounding
available at the three stations.
areas.
Since the Horidomecho and Higashi-Nihonbashi area flourished centering on textile industry for a  Property overview
long time, a large number of apparel companies are seen and specific demands are expected.
The property has six floors above ground and gross floor area of 1,989.40m2 and a leasable area
 Property overview
of approximately 85 tsubos per floor is secured. It has 2,600mm of ceiling height for a standard
floor and 70mm of OA floor equipped with facilities such as individual air conditioning. It has
The property has seven floors above ground and gross floor area of 6,724.10m2 and a leasable
excellent flexibility of layout and efficiency of utilization since it has rental rooms with no pillars.
area of approximately 240 tsubos per floor is secured. It has 2,750mm of ceiling height for astandard floor and 80mm of OA floor equipped with facilities such as individual air conditioning.
As for the external appearance, it has a modern facade constituted mainly of glass surface and isjudged to be preferred by apparel related companies and creative companies that emphasize the
As for the external appearance, it has a modern facade constituted mainly of glass surface and aThis document is not material disclosed in compliance with the Financial
and Exchange Law or any regulation of similar nature,building Instruments
image.
space that matches its scale is securedattheentrancehall.
nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

24

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

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

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

Location
Site Area
Structure/Floor
Total Floor Area

Location
Site Area
Structure/Floor
Total Floor Area

Upon Acquisition(Note 3)
Appraisal

Nishishinjuku, Shinjuku-ku, Tokyo Appraisal Value 1,140 million yen (Note 1)
623.78m2
Construction Date March 1989
RC/4F
Occupancy Rate 100.0% (Note 2)
1,438.16m2
Number of Tenant 7 (Note2)
NOI Yield
5.5%
NOI Yield
5.5%

Assumed Occupancy Rate
Mid-term (Note 4)
100.0%
Assumed Occupancy Rate Depreciation
95.0%(Note 5)NOI Yield
4.9%

Assumed Occupancy Rate

96.0%
0.5%

Upon Acquisition(Note 3)
Appraisal

Ogikubo, Suginami-ku, Tokyo
970.53m2
SRC/B1/7F
5,116.78m2
NOI Yield
5.0%
NOI Yield
5.0%

Appraisal Value 4,230 million yen (Note 1)
Construction Date November 1990
Occupancy Rate 100.0% (Note 2)
Number of Tenant 11 (Note2)

Assumed Occupancy Rate
Mid-term (Note 4)
100.0%
Assumed Occupancy Rate Depreciation
96.0%(Note 5)NOI Yield
4.7%

Assumed Occupancy Rate

95.0%
0.5%

(Note 1) As of July 1, 2016. (Note 2) Upon acquisition. (Note 3) Upon Acquisition indicates figures obtained by using
expected annual balance of payments under the assumed occupancy rate, calculated based on the lease agreement uponacquisition, etc. while taking into account the accrual of tax and public due, etc. (Note 4) Mid-term indicates estimated figures
for normal operation period (with assumed occupancy rate of 96.0%) after acquisition, obtained by deducting rent businessrelated expenses from rent revenue assumed under rents over a medium term, and do not represent forecast figures for thecurrent period or the next period onward. (Note 5) Depreciation indicates a figure obtained by dividing the total amount ofdepreciation (6-month equivalent) expected to be posted upon property acquisition and depreciation (for 6 months) expected
to be posted in the following fiscal period by the acquisition price.

(Note 1) As of July 1, 2016. (Note 2) Upon acquisition. (Note 3) Upon Acquisition indicates figures obtained by using
expected annual balance of payments under the assumed occupancy rate, calculated based on the lease agreement uponacquisition, etc. while taking into account the accrual of tax and public due, etc. (Note 4) Mid-term indicates estimated figures
for normal operation period (with assumed occupancy rate of 95.0%) after acquisition, obtained by deducting rent businessrelated expenses from rent revenue assumed under rents over a medium term, and do not represent forecast figures for thecurrent period or the next period onward. (Note 5) Depreciation indicates a figure obtained by dividing the total amount ofdepreciation (6-month equivalent) expected to be posted upon property acquisition and depreciation (for 6 months) expected
to be posted in the following fiscal period by the acquisition price.

 Transportation access Transportation access

The property is located at a 2-minute walk from Nishi-Shinjuku Station on The Tokyo Metro
Marunouchi Line and has an excellent appeal on its proximity to a station. Also, it is located at a
7-minute walk from Shinjuku Station which is the largest terminal station in Tokyo with high traffic
convenience where several lines including the JR Line can be used.
As for the characteristics of tenants in Nishi-Shinjuku area, various shop-visit type service relatedindustries such as temporary staffing business and financial business for end users of insurance,
etc. concentrate against the backdrop of high convenience of JR Shinjuku Station as a terminal.

 Property overview

The property is located at 1-minute walk from Ogikubo Station on the JR Chuo Line and theTokyo Metro Marunouchi Line. In addition, the JR Ogikubo Station has high traffic convenience
which is about 11-minutes from Shinjuku Station and about 24 minutes from Tokyo Station. Boththe north and south side of the property are a busy commercial area and the property has an highappeal on its location to service related companies for local residents such as banks andsecurities, cram schools and clinics since it is excellent in terms of proximity to Ogikubo Station.
Also, demands of back offices of large companies in central Tokyo such as call centers are also
assumed.

 Property overview

The main facilities of the property are individual air-conditioner, ceiling height of 2,480mm and
The property has approximately 172 tsubos of standard floor area and excellent flexibility of
3WAY floor duct with a facility standard satisfying recent office needs. Also, the property canlayout and efficiency of utilization since the rental rooms are in a rectangular shape with a side
respond to office needs as a business base that carries packages in and out since it has a planecore. Also, it is considered to incorporate office demands of a wide range of industries such as
parking lot within the site and a warehouse area on each floor.
This document is not material disclosed in compliance with the Financial
Instruments
and Exchangeor itany
regulation
similaranature,
shop-visit
type tenants
and areasLaw
since
is welllightedoffacing
corner lot and can respond tonor is it intended for the purposes of solicitation. Daiwa Office Investment
Corporation
advisesreaders
to make investment decisions at their own judgment.
small-scaletenant needswithfloor division.

25

Changes in Asset Size and Trading Performance
Aim to achieve medium-term goal of asset size of 500 billion yen[Acquisition Properties]
Heiwa Higashi-nihonbashi
Building
Square Daikanyama Building
Shinjuku West Building
Ogikubo TM Building(Billion Yen)

550
Total Acquisition Price

LTV (Based on Total Asset)

500[Acquisition Properties]
Daiwa Shibuya Dogenzaka
Daiwa Akasaka
Shibuya Miyamasuzaka

450
400

[Acquisition Properties]
Daiwa Nishi-Shimbashi
Daiwa Kudan[Acquisition Properties]
Daiwa Kayabacho
Building
Daiwa Jinbocho 3-chome

311.3
300

265.0

200

352.7

40.6%

269.1
34.0% 34.2% 34.4%

44.3%

43.0%

41.7%

40.2%

43.3% 42.3%

37.5%

40%
[Acquisition Properties]
River Gate
Daiwa Hatchobori ekimae
Daiwa Hatchobori ekimae West

[Acquisition Property]
Daiwa Nihonbashi
Hongokucho

100

8th
FP

9th

9th
FP

10th

10th
FP

11th
FP

12th

12th
FP

13th

13th
FP

14th

14th
FP

[Acquisition Properties]
Daiwa Ebisu 4-chome
LAQUAS Higashi Shinjuku
Concept Aoyama
Shinsen Place
Glass City Shibuya
Meguro Place Tower 0.0%

[Acquisition Property]
Integral Tower[Acquisition Properties]
shinyon curumu
Daiwa Meieki
Daiwa Kamiooka[Acquisition Property]
E SPACE TOWER

11th

50%

30%

150

8th

70%

[Acquisition Properties]
Nikko Building
Kirin Nihonbashi Building

25.3% 25.5%

50

469.3

60%

28.1% 28.9%[Acquisition Property]
Daiwa Jimbocho

467.7

364.0

314.9

287.3

250

500.0

387.5
332.0

313.2

80%

413.2

[Acquisition Property]
Daiwa Osaki 3-chome

350
278.1

445.7

458.3

[Acquisition Property]
Shin Kanda Mikuracho
Building

15th

15th
FP

16th

16th
FP

20%

10%

[Acquisition Properties]
Azabu Green Terrace
Kitahama Grand Building

17th

17th
FP

18th

18th
FP

19th

19th
FP

20th

20th
FP

21st

21st
FP

22nd

22nd
FP

End ofDec.
2016

MediumTerm
Goal

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

0%26

Properties Acquired after Sponsor Change (1)Acquisition
Period

9th Fiscal Period

10th Fiscal Period

11th Fiscal Period

12th Fiscal Period

13th Fiscal Period

14th Fiscal Period
Daiwa
Osaki 3-chome

Daiwa Jimbocho

Daiwa
Nishi-Shimbashi

Daiwa Kudan

Daiwa Kayabacho

Daiwa
Jimbocho 3-chome

E SPACE TOWER

Daiwa Nihonbashi
Hongokucho

Address

Chiyoda-ku, Tokyo

Minato-ku, Tokyo

Chiyoda-ku, Tokyo

Chuo-ku, Tokyo

Chiyoda-ku, Tokyo

Shibuya-ku, Tokyo

Chuo-ku, Tokyo

Acquisition Price

4,150 million yen

5,000 million yen

4,000 million yen

5,600 million yen

3,550 million yen

24,000 million yen

1,721 million yen

Shinagawa-ku,
Tokyo
1,650 million yen

Seller

ORIX JREIT Inc.

Japan Core
Asset II Ltd.
August 13,
2010

Shining Nova
the Fifth B TMK
September 2,
2010

Daiwa Property Co..
Ltd.
March 25,2011

Tokyu Land
Corporation
March 29,2011

Endeavor Realty
Fund Ltd.
July 8,2011

Tosei Corporation

MCR Six GK

May 11,2012

September 18,
2012

17th Fiscal Period

18th Fiscal Period

Property Name

Acquisition date

March 10,2010

Acquisition
Period15th Fiscal Period

16th Fiscal Period

shinyon curumu

Daiwa Meieki

Daiwa Kamiooka

Daiwa Shibuya
Dogenzaka

Daiwa Akasaka

Daiwa Shibuya
Miyamasuzaka

Integral Tower

Azabu
Green Terrace

Address

Shibuya-ku, Tokyo

Nagoya-shi, Aichi

Yokohama-shi,
Kanagawa

Shibuya-ku, Tokyo

Minato-ku, Tokyo

Shibuya-ku, Tokyo

Suginami-ku, Tokyo

Minato-ku, Tokyo

AcquisitionPrice

9,650 million yen

5,300 million yen

2,000 million yen

4,500 million yen

9,200 million yen

7,000 million yen

15,220 million yen

14,000 million yen

Domestic Special
purpose company
July 3,2013

Hakuba Capital 1
TMK
August 9,
2013

E Buildings Limited
Liability Company
September 27,
2013

Ogikubo Building
Y. K.
May 29,2014

Azabu Green
Terrace GK
July 4,2014

Property Name

Two Domestic
Industrial Companies
December 3, 2012
Acquisition date
April 12, 2013

SellerDomestic Special
purpose company
February 1,
2013

Shimizu Corporation
March 1,
2013

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

27

Properties Acquired after Sponsor Change (2)Acquisition
Period18th Fiscal
PeriodKitahama Grand
Building

19th Fiscal Period
Daiwa Ebisu
4-chomeLAQUAS
Higashi Shinjuku

Concept Aoyama

20th Fiscal Period

Shinsen Place

Glass City Shibuya

MeguroPlace Tower

River Gate

Daiwa
Hatchobori ekimae

Property Name

Address
Acquisition
Price

Osaka-shi, Osaka Shibuya-ku, Tokyo Shinjuku-ku, Tokyo Shibuya-ku, Tokyo Shibuya-ku, Tokyo Shibuya-ku, Tokyo Meguro-ku, Tokyo

Chuo-ku, Tokyo

Chuo-ku, Tokyo

9,481 million yen

2,871 million yen

Seller

GK North Beach

Acquisition dateAugust 1,
2014

Acquisition
Period20th Fiscal
Period4,135 million yen

8,450 million yen

Domestic industrial Higashi Shinjuku
company
Building TMK
December 1,
December 3,
2014
2014

9,800 million yen

Domestic Special Domestic Special
purpose company purpose company
March 2,
March 2,2015
2015

21st Fiscal Period

Daiwa Hatchobori
ekimae West

Nikko Building

4,800 million yen

16,000 million yen

5,600 million yen

28,000 million yen

Glass City TMK

Meguro Place TMK

Temuzu TMK

May 1,
2015

May 1,
2015

June 2,2015
23rd Fiscal
Period22nd Fiscal Period

Kirin Nihonbashi
Heiwa HigashiBuilding
nihonbashi Building

SquareDaikanyama
Building

Shinjuku West
Building

Domestic industrial
company
September 11,
2015

Ogikubo TM
Building

Shin Kanda
Mikuracho Building
Total

Property Name

Address
Acquisition
Price
SellerAcquisition date

Chuo-ku, Tokyo

Shinjuku-ku, Tokyo

Chuo-ku, Tokyo

Shibuya-ku, Tokyo Shibuya-ku, Tokyo Shibuya-ku, Tokyo Meguro-ku, Tokyo Chiyoda-ku, Tokyo

1,647 million yen

13,710 million yen

8,180 million yen

6,370 million yen

2,280 million yen

942 million yen

3,800 million yen

Domestic industrial
Kirin Beer
Domestic Special
Oversea company
company
Marketing Co., Ltd. purpose company

Hulic Co., Ltd.

GK TC1GK TC1

Jun. 29,
2016

Jul. 21,2016

Jul. 21,2016

September 11,
2015

Mar. 29,2016

May 26,2016

Jun. 1,2016－

1,592 million yen 244,199 million yen
OH Real EstateManagement
Co., Ltd.
Dec. 21,2016－－(Note) The sum of ; i) the total acquisition price from the time of the above sponsor change up to December 21, 2016 and ii) total acquisition prices for additional acquisition of existing properties or of
the site in existing properties during the same period, is 244,619 million yen. “Ltd.” and “TMK” (Tokutei Mokuteki Kaisha) in sellers’ names refer to a limited liability company and special
purpose company, respectively.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

28

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

Distribution Chart of Portfolio Properties

 Places priority in the five central wards of Tokyo and equivalent area.
 Thoroughly select properties in view of actual demand toward location

Building Age (Year)55(distance to station, station power, crowd attraction, surrounding
environment), building specs, etc.
 Target properties to improve growth potential and profitability of ourexisting portfolio.
 Invest in buildings less than 25 years of building age.
 Consider replacements when necessary in consideration of properties’
future competitiveness, profitability, etc.

● properties acquired in the 22nd FP● properties acquired in the 23rd FP● properties acquired after the sponsor change● properties acquired before the sponsor change● properties sold in the 22nd FP

50＊The distance from station is the distance from thenearest station

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

40

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

Number of Properties Reviewed for Acquisition

500
400

268

300
264

25

120
100

393
344

296

Shinjuku West Building
Shin Kanda Mikuracho Building* Number of grossproposals.

356

Daiwa Kudan

30

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

416

300

35

Ogikubo TM Building

20
Square Daikanyama Building

15

80

289

60

Heiwa Higashi-nihonbashi Building

10

200
40
100
0

25

28
17

26
15

23

31

18
12

14th FP 15th FP 16th FP 17th FP 18th FP 19th FP 20th FP 21st FP 22nd FP

5

20

0
0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

Distance to station (minutes)

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

29

Memorandum

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

30Section 4
Financial Strategy

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

Loan to Value Trend(Billion Yen)
280

(End of 22nd Fiscal Period)
70.0%Interest-bearing Liabilities (left axis)

 Ratio of Fixed andFloating Borrowings

 Ratio of Long andShort-Term Borrowings

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

60.0%

200

50.0%

Medium-to-long term, upper-limit
LTV target range
160

14.3%

19.6%

85.7%

80.4%
40.0%

120

Fixed interest

Long-term loans payable, etc.

Floating interest

Long-term loans and Current portionof long-term loans payable

30.0%█ Status of Rating
80

20.0%

Japan Credit Rating Agency, Ltd. (JCR)
40

10.0%

Long-term issuer rating0

1st FP
2nd FP
3rd FP
4th FP
5th FP
6th FP
7th FP
8th FP
9th FP
10th FP
11th FP
12th FP
13th FP
14th FP
15th FP
16th FP
17th FP
18th FP
19th FP
20th FP
21st FP
22nd FP

Rating outlook: Stable
0.0%*LTV (based on Total Asset) ＝Total interest-bearing liabilities / Total Asset

Rating and Investment Information, Inc. (R&I)
Issuer rating
Rating outlook: Stable

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

32

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

Repayment Schedule(Million Yen)
20,000(Year)

Investment Corporation Bond
18,000(Year)

5.5

11.0

End of period maturity(left axis)

10.0
10.0

5.0
Average PROC years(right axis)

16,000
4.5

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

14,000
4.0
12,00010,000

8,000

4.5

9.0
4.1
8.0

7.1

3.5

7.0

3.0

6.0

2.5

5.0

2.0

4.0

1.5

3.0

6,000

4,000
1.0

* Payment dates as of November 30, 2016.

21st FP

22nd FP

20th FP

19th FP

18th FP

17th FP

16th FP

15th FP

14th FP

13th FP

12th FP

0.0
11th FP

0.0
9th FP

1.0

10th FP

42nd FP

41st FP

40th FP

39th FP

38th FP

37th FP

36th FP

35th FP

34th FP

33rd FP

32nd FP

31st FP

30th FP

29th FP

28th FP

27th FP

26th FP

25th FP

24th FP

23rd FP

0

2.0

0.5

8th FP

2,000

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

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

33

Status of Interest-bearing Liabilities (3)As of the 22nd Fiscal Period(Unit: Million Yen)

Name of Financial Institutions

Comparison
Balance
Balance with Previous
Ratio
PeriodName of Financial Institutions

Comparison
Balance
Balance with Previous
Ratio
PeriodSumitomo Mitsui Banking Corporation

41,400

-500

20.8%

The Musashino Bank, Ltd.

2,000

0

1.0%

Sumitomo Mitsui Trust Bank, Limited

24,850-1,50012.5%

Development Bank of Japan Inc.

21,7500

10.9%

Tokio Marine & Nichido Fire InsuranceCo., Ltd.

2,000

0

1.0%

Mizuho Corporate Bank, Ltd.

19,4000

9.7%

The Yamaguchi Bank, Ltd.

2,000

+1,500

1.0%

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

16,0000

8.0%

The Higashi-Nippon Bank, Limited

1,500

0

0.8%

Shinsei Bank, Ltd

14,0000

7.0%

Nippon Life Insurance Company

1,300

0

0.7%

Resona Bank, Limited

12,5000

6.3%

The Kagawa Bank, Ltd.

1,000

0

0.5%

Mitsubishi UFJ Trust and Banking
Corporation

The Hiroshima Bank, Ltd.

1,000

0

0.5%

8,500

0

4.3%

Taiyo Life Insurance Company

300

0

0.2%

Mizuho Trust and Banking Co., Ltd.

6,000

0

3.0%

Fukoku Mutual Life Insurance Company

200

0

0.1%

The Bank of Fukuoka, Ltd.

5,500

0

2.8%

Total (25 banks)

199,200-2,000100.0%

Kansai Urban Banking Corporation

5,000

0

2.5%

Aozora Bank, Ltd.

3,000

-1,5001.5%

Nishi-Nippon City Bank, Ltd.

3,000

0

1.5%

ORIX Bank Corporation

2,500

0

1.3%

The Gunma Bank, Ltd.

2,500

0

1.3%

The 77 Bank, Ltd.

2,000

0

1.0%

Issuance
No. 3 Unsecured Investment Corporation
Bond
No. 4 Unsecured Investment Corporation
Bond
Total Investment Corporation Bonds

Comparison DurationofBalance with Previous
PeriodLiabilities
3,000

0

5 years

2,100

0 10 years

5,100

0

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

-

34

Unitholders as of the end of the November 2016 (22nd)
Fiscal Period█ Unitholders’ Share by Investor Type
Investor Type

21st Fiscal
PeriodNumberof Units█ List of Top 10 Investors

22nd Fiscal
PeriodNumberof Units

Change ofUnits

22nd Fiscal
PeriodRate*

Individuals

20,292

22,035+1,743

4.43%

Financial Institutions

212,202

218,952+6,75043.98%

Commercial
Bank
Regional Bank
Trust BankLife Insurance
Non-life
Insurance
Other Financial
Institutions
Other Domestic
Corporation

0

0

0

0.00%

7,682

12,014+4,332

2.41%

196,509

196,395-114

39.45%

2,961

2,028

-933

0.41%

695

883

+188

0.18%

4,355

7,632

+3,277

1.53%

191,340

191,428+88

53,39061,792+8,40212.41%

Securities

6,776

3,662

-3,1140.74%

484,000

497,869+13,869

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

22nd Fiscal
22nd Fiscal
PeriodChange ofPeriodNumber of
Units
Rate*
Units

No.

Investor Name

1

Daiwa Investment Management
Inc.

128,905

128,905025.89%

2

Japan trustee Services Bank, Ltd.
(Trust Account)

79,22070,700-8,52014.20%

3

Daiwa Securities Group Inc.

59,321

59,3210

11.91%

4

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

48,441

52,849+4,40810.62%

5

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

48,33051,052+2,722

10.25%

6

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

17,306

17,676

+370

3.55%

7

STATE STREET BANK AND
TRUST COMPANY 505012

893

5,786

+4,893

1.16%

8

CBLDN STICHTING PENSIOEN
FONDS METAAL EN TECHNIEK

0

4,295

+4,2950.86%

9

BNP Paribas Securities Services
Sydney/Jasdec/Australian
Residents

4,552

4,217

-335

0.85%

10

State Street Bank -West Pension
Fund Clients- Exempt 505233

3,382

3,643

+261

0.73%

390,350

398,444+8,09480.03%

38.45%

Foreigner

21st Fiscal
PeriodNumber of
Units

Total
(*) Rounded to the second decimal place.

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

35

Changes in Investment Unit Prices andDividend Yield Forecasts
 Before and after the announcement of Tokyo Stock Exchange’s Public Comment “Revisions to Calculation Methodology for TSE
REIT-related Indices” on October 19, 2016, the investment unit price has been on a declining trend and the dividend yield
forecast of the Investment Corporation has neared the dividend yield forecast of all REITs.
Jan 2016 Feb 2016 Mar 2016 Apr 2016 May 2016 Jun 2016 Jul 2016 Aug 2016 Sep 2016 Oct 2016 Nov 2016 Dec 2016
Unit price(the Investment Corporation)

688,000

724,000

700,000

694,000

659,000

609,000

611,000

619,000

621,000

592,000

579,000

590,000

Dividend yield forecast(the Investment Corporation)

2.86%

2.72%

2.81%

2.84%

2.99%

3.23%

3.45%

3.41%

3.40%

3.56%

3.64%

3.58%

Dividend yield forecast(all REITs)*

3.38%

3.27%

3.25%

3.22%

3.29%

3.42%

3.41%

3.52%

3.53%

3.62%

3.63%

3.52%

Difference-0.52%-0.55%-0.44%-0.38%-0.30%-0.19%

0.04%-0.11%-0.13%-0.06%

0.01%

0.06%

(*) Data : The Association for Real Estate Securitization(yen)(units)750,000

20,00018,000700,000

16,000650,000

14,00012,000600,000

10,000

Trading volume (right axis)

550,000

Oct. 19, 2016
Announcement ofrevision to TSE REIT
Index calculation
Closing price:
608,000 yen

DOI Investment unit price (left axis)
TSE REIT Index (left axis)

500,000

8,000
6,000
4,000

450,000

1/16

1/4

12/21

12/1

12/12

11/21

11/10

10/31

10/20

10/11

9/29

9/7

9/16

8/29

8/18

8/8

7/28

7/19

7/7

6/28

6/8

6/17

5/30

5/19

5/10

4/25

4/14

4/5

3/25

3/4

3/15

2/24

2/15

2/3

1/25

1/14

1/4

400,000

2,000
0(Note 1) Dividend yield forecasts of all REITs are calculated by weighted average of the total fair value of (forecast dividend of current fiscal period x 2/investment unit price). The investment
unit prices are closing prices
at document
the end of iseachmonth. disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,This
not material
nor isit intended
for ontheJanuary
purposessolicitation.
Daiwaprice
OfficeCorporation
advisesreaders tounit
makeinvestment
their own
judgment.
(Note 2) TSE REIT Index is calculated
using
the index
4, of
2016
as the closingofInvestment
the Investment
Corporation’s
investment
price(648,000 decisions
yen as of atJanuary
4, 2016).

36

Future Initiatives

Internal Growth→ “Bonji-Tettei”• Connecting to internal growth through a thorough hands-on
approach based on focusing the portfolio Tokyo in the
background of steady office markets in Tokyo.

External Growth→ Acquisition of carefully

selected properties
Financial Strategy→ Continue to strengthen

financial structure• Continue to carefully select and actively invest in competitive
properties that contribute to enhancement of portfolio value.

• Work to further strengthen financial structure against the
backdrop of possible volatile hikes in the financial market.
• Conduct agile and flexible fund procurement by capitalizing onstrong relationship with lenders.
• Strengthen IR aiming for increasing the number of investors.

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

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

37

Memorandum

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

38

Appendix

Summary of Results for the Fiscal Period ended November
2016 (22nd FP) (1) - Balance Sheet █ Comparison with Results of the 21st Fiscal Period
21st Fiscal Period

22nd Fiscal Period

Million Yen

Million Yen

Million Yen

Million Yen(%)

23,8295.0%

21,254

Cash and Deposits

20,94019,070Cash and Deposits in Trust

2,097

1,597

791

586

Fixed Assets
Tangible Fixed Assets

95.6%

448,44594.1%

458,018

94.7%

Land and Others (including
Trust Property)

363,574

371,608

Other Tangible Fixed Assets

45

402

2,716

Other Intangible Fixed Assets

0.6%

2,707

2,713

2,705

2

2

Investments and Other Assets

1,668

Leasehold and Security
Deposits Paid in Trust

113

113

1,189

1,074

Long-term Prepaid Expenses
Other Investments and Other
AssetsDeferred Assets

Total Assets

365
29

Investment Corporation Bond
Issuance Costs

0.3%

1,444

0.0%

29
476,690 100.0%

26

0.0%

26
483,450 100.0%

34,085

1,000

Current Portion of Long-term
Loans Payable

21,20028,250Accounts Payables-Other

494

456

2,051

2,028

900

354

Other Current Liabilities
Fixed Liabilities
Investment Corporation Bonds

203,33442.7%

192,847

5,100

5,100

Long-term Loans Payable

180,000

169,950

Tenant Leasehold andSecurity Deposits

15,881

16,447988

504

Other Fixed Liabilities

1,364

845

Total Liabilities

228,969

Unitholders' equity

256

5.4%

-

Tenant Leasehold andSecurity Deposits in Trust

0.3%

25,635

1,996

Advances Received

0.6%

(%)

988

Short-term Loans Payable462,170

86,007

Current Liabilities
Operating Accounts Payables

95.0%

84,825

Leasehold Rights andLeasehold Rights in Trust

4.4%

452,830

Building and Others (including
Trust Property)

Intangible Fixed Assets(%)

Liabilities

Other Current Assets

Assets22nd Fiscal Period

Net Assets

Current Assets

21st Fiscal Period

48.0%

226,933

243,403

251,551

Unappropriated Retained
Earnings

5,250

5,488

Valuation, Translation
Adjustments and Others

-933

-523

Total Net Assets

247,720

Total Liabilities and Net Assets

52.0%

476,690 100.0%

256,517

(%)
7.1%

39.9%

46.9%

53.1%

483,450 100.0%

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

40

Summary of Results for the Fiscal Period ended November
2016 (22nd FP) (2) - Income Statement █ Comparison with Results of the 21st Fiscal Period █ Comparison with the 22nd Fiscal Period Forecasts(Unit: Million Yen)

Effective Number of Days of Investment
Operating Revenues (A)Gain on Sale
Operating Expenses (B)21st Fiscal
Period22nd Fiscal
Period183

183

ChangeEffective Number of Days of Investment

12,363

12,853

+489

323

102

-221

6,255

6,709

+454

Expenses related to Rental Business(excluding depreciation)

3,288

3,683

+395

Depreciation

1,726

1,749

+23

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

7,025

7,317

+292

Operating Income (A-B)

6,108

6,143

+35

Non-operating Expenses

787

829

+41

614

619

+5

5,326

5,325

-1

Extraordinary Income

-

-

-

Extraordinary Expenses

-

-

-

76

0

-75

5,250

5,324

+74

Investment Units Issued and Outstanding

484,000

497,869+ 13,869

Dividend per Unit (unit: yen) (*)

10,508

10,695+187

Interest Expense (including cap
amortization)
Ordinary Income

Total Income Taxes (Includes income
taxes deferred)
Net Income(Unit: Million Yen)

Operating Revenues (A)Gain on Sale

22nd Fiscal Period
Forecast

22nd Fiscal
Period183

183
12,775

Change12,853

+77

99

102

+2

6,674

6,709

+35

Expenses related to Rental Business(excluding depreciation)

3,632

3,683

+50

Depreciation

Operating Expenses (B)

1,751

1,749

-1

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

7,292

7,317

+25

Operating Income (A-B)

6,101

6,143

+41

Non-operating Expenses

845

829

-16

626

619

-6

5,256

5,325

+69

Extraordinary Income

-

-

-

Extraordinary Expenses

-

-

-

Total Income Taxes (Includes income
taxes deferred)

2

0

-1

5,254

5,324

+70

Investment Units Issued and Outstanding

498,000

497,869-131

Dividend per Unit (unit: yen)

10,55010,695+145

Interest Expense (including cap
amortization)
Ordinary Income

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

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

41

Forecasts for the Fiscal Periods ending May 2017 andNovember 2017 (23rd and 24th FP)█ Forecasts for the 23rd and 24th Fiscal Periods(Unit: Million Yen)

Effective Number of Days of Investment

22nd Period(Nov. 30, 2016)

23rd Period Forecast(May 31, 2017)24th Period Forecast(Nov. 30, 2017)

183

182

183

Operating Revenues (A)12,853

12,462

12,655Gain on Sale

102

-

-

Operating Expenses (B)

6,709

6,352

6,604

Expenses related to Rental Business(excluding depreciation)

3,683

3,309

3,550

Depreciation

1,749

1,778

1,777

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

7,317

7,373

7,327

Operating Income (A-B)

6,143

6,109

6,051

Non-operating Expenses

829

779

716

619

605

558

5,325

5,329

5,334

Extraordinary Income

-

-

-

Extraordinary Expenses

-

-

-

Total Income Taxes (Includes income taxes deferred)

0

2

2

5,324

5,327

5,332

Investment Units Issued and Outstanding

497,869

497,869

497,869

Dividend per Unit (unit: yen)

10,695

10,70010,710Interest Expense (including cap amortization)
Ordinary Income

Net Income

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

42

Major Financial Data

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

Unit

18th
Period19th
Period20th
Period21stPeriod22nd
Period

Day

183

182

183

183

183

Property

46

47

50

50

53

 NOI

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

Occupancy rate at end of period

%

97.2

97.3

98.3

98.7

97.7

Average acquisition priceMillion Yen 381,872 397,194 443,106 448,052 466,891

NOI (after deduction of gain on sale)

Million Yen

6,936

7,213

8,515

8,751

9,067

Funds from operation (FFO)

Million Yen

5,138

5,344

6,392

6,652

6,972

Net income + Depreciation – Gain on sale
 ROA

Annualized ordinary income / Total assets
 ROE

Annualized net income / Net assets
 Loan-to-Value (LTV) at end of fiscal period

Return on asset (ROA)

%

1.9

1.9

2.0

2.3

2.2

Return on equity (ROE)

%

3.4

3.6

3.8

4.2

4.2

Capital adequacy ratio at end of period

%

55.7

51.6

53.8

52.0

53.1

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

%

40.2

44.3

41.7

43.3

42.3

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

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

43

Status of Interest-bearing Liabilities (as of November 30, 2016)

Current maturities oflong-term borrowings

Short-term
Sumitomo Mitsui Banking Corporation
borrowings

Development Bank of Japan Inc.
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation(*)
Sumitomo Mitsui Trust Bank, Limited(*)
Mizuho Trust and Banking Co., Ltd.(*)
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation(*)
Mizuho Bank, Ltd.(*)
The Hiroshima Bank, Ltd.(*)
Development Bank of Japan Inc.
Shinsei Bank, Ltd.(*)(**)
Tokio Marine & Nichido Fire Insurance Co., Ltd.
The Yamaguchi Bank, Ltd.

Long term borrowings

Total short-term borrowings and current maturities of long-term borrowings

Sumitomo Mitsui Trust Bank, Limited(*)
Sumitomo Mitsui Trust Bank, Limited(*)
ORIX Bank Corporation(*)
The Higashi-Nippon Bank, Limited(*)
Sumitomo Mitsui Banking Corporation(*)
Sumitomo Mitsui Trust Bank, Limited(*)
The Kagawa Bank, Ltd.(*)
Aozora Bank, Ltd.(*)
Resona Bank, Limited(*)
The Gunma Bank, Ltd.(*)
The Musashino Bank, Ltd.(*)(**)
Aozora Bank, Ltd.(*)
Sumitomo Mitsui Trust Bank, Limited(*)
Development Bank of Japan Inc.
Kansai Urban Banking Corporation
Kansai Urban Banking Corporation(*)(**)
Kansai Urban Banking Corporation(*)(**)
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation(*)
Shinsei Bank, Ltd.(*)(**)
The Higashi-Nippon Bank, Limited(*)
The Bank of Fukuoka, Ltd.(*)
Sumitomo Mitsui Trust Bank, Limited(*)
Sumitomo Mitsui Trust Bank, Limited(*)
Shinsei Bank, Ltd.(*)(**)
Shinsei Bank, Ltd.(*)(**)
Tokio Marine & Nichido Fire Insurance Co.,
Ltd.(*)(**)
The Bank of Tokyo-Mitsubishi UFJ, Ltd.(*)
The Bank of Fukuoka, Ltd.(*)

Balance

TypeInterest
Rate (%)

1,000 Float

T+0.250%

16/6/1

17/5/31

1,700
6,500
4,000
3,000
1,500
2,550
1,500
1,000
1,000
2,000
2,000
1,000
500
29,250
3,400
1,950
1,000
500
2,000
1,500
1,000
2,000
2,000
500
500
1,000
1,500
1,000
1,500
1,500
2,000
1,000
1,600
1,000
1,000
1,000
1,000
4,000
1,000
1,000

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

1.018%
1.022%
0.859%
0.847%
0.847%
0.962%
0.705%
0.705%
0.791%
0.847%
0.613%
0.690%
0.690%

12/5/11
12/5/21
12/5/21
12/5/21
12/5/21
12/9/18
12/9/18
12/9/18
12/9/18
12/12/3
12/12/3
13/2/1
13/2/1

17/5/10
17/5/22
17/5/31
17/5/31
17/5/31
17/8/31
17/8/31
17/8/31
17/8/31
17/11/30
17/11/30
17/11/30
17/11/30

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

0.691%
0.600%
0.679%
0.726%
0.896%
0.896%
0.814%
0.896%
0.896%
0.716%
0.578%
0.878%
0.844%
0.963%
0.893%
0.677%
0.794%
0.833%
0.781%
0.787%
0.808%
0.681%
0.824%
0.816%
0.836%
0.856%

12/9/18
12/11/30
13/1/10
13/2/1
13/2/1
13/2/1
13/2/28
13/2/28
13/3/1
13/4/12
13/4/12
13/4/12
13/4/12
13/4/12
13/6/28
13/6/28
13/6/28
13/7/3
13/7/3
13/7/3
13/7/3
13/7/8
13/7/8
13/7/8
13/7/31
13/7/31

18/2/28
18/2/28
18/2/28
18/2/28
20/2/28
20/2/28
19/2/28
20/2/28
20/2/28
18/5/31
18/5/31
19/5/31
19/11/29
19/11/29
18/8/31
19/8/30
20/8/31
18/8/31
20/8/31
20/11/30
20/11/30
18/8/31
19/11/29
20/5/29
21/5/31
21/8/311,000 Fixed

0.540%

13/8/92,000 Fixed
1,000 Fixed

0.661%
0.681%

13/8/913/8/9(millionyen)

Date ofDue date
Advance

Balance

Balance

TypeInterest
Rate (%)

Date ofDue date
Advance

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

3,000 Fixed

0.761%

13/8/920/8/31

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

1,000 Fixed 0.646%
13/8/91,400 Fixed 0.629%
13/8/92,000 Fixed 0.622% 13/9/27
4,000 Fixed 0.636% 13/9/27
1,400 Fixed 0.636% 13/9/27
1,500 Fixed 0.687% 13/9/30
2,000 Fixed 0.662% 13/9/30
1,000 Fixed 0.737% 13/11/29
2,000 Fixed 0.571% 14/3/18
2,000 Fixed 0.606% 14/3/18
1,000 Fixed 0.606% 14/3/25
1,000 Fixed 0.593% 14/3/25
3,000 Fixed 0.500% 14/3/31
1,000 Fixed 0.500% 14/3/31
1,000 Fixed 0.642% 14/3/31
3,900 Fixed 0.606% 14/3/31
2,000 Fixed 0.471% 14/5/29
500 Fixed 0.435% 14/5/29
2,000 Fixed 0.595% 14/5/29
500 Fixed 0.595% 14/5/29
1,000 Fixed 0.742% 14/5/29
1,000 Fixed 0.618% 14/5/29
1,500 Fixed 0.585% 14/5/29
1,000 Fixed 0.585% 14/5/29
3,000 Fixed 0.378% 14/5/29
1,000 Fixed 0.378% 14/5/29
2,000 Fixed 0.411%
14/7/83,000 Fixed 0.530%
14/7/82,000 Fixed 0.530%
14/7/83,500 Fixed 0.618%
14/7/84,000 Fixed 0.585%
14/7/81,000 Float L+0.325% 14/7/8
2,000 Fixed 0.378%
14/7/81,000 Fixed 0.560% 14/12/1
1,000 Fixed 0.353% 14/12/1
1,000 Float T+0.350% 14/12/1
1,000 Float L+0.350% 14/12/1
1,000 Fixed 0.692% 14/12/3
1,000 Fixed 0.593% 14/12/3
1,000 Fixed 0.560% 14/12/3

21/2/26
21/5/31
18/11/30
21/3/31
21/3/31
19/2/28
19/3/29
20/11/30
19/9/30
21/3/31
21/3/31
22/2/28
19/3/29
19/3/29
20/3/31
21/3/31
19/5/31
19/5/31
20/5/29
20/5/29
20/11/30
21/11/30
22/5/31
22/5/31
22/11/30
22/11/30
19/11/29
20/11/30
20/11/30
21/11/30
22/5/31
22/8/31
22/11/30
22/5/31
22/11/30
23/5/31
23/5/31
21/11/30
21/11/30
22/5/31

18/7/31

Mizuho Bank, Ltd.(*)

1,500 Fixed

0.353%

14/12/3

22/11/30

Total long-term borrowings

169,950

18/8/31
18/8/31

Resona Bank, Limited(*)
Sumitomo Mitsui Trust Bank, Limited(*)

1,500 Fixed
1,000 Fixed

0.353%
0.353%

14/12/3
14/12/3

22/11/30
22/11/30

Total borrowings

199,200

Term

LenderNote: Fixed Interest Rate and Floating Interest Rate are rounded to the third decimal place.
(*) Interest rates that were changed from a floating rate to a fixed rate by concluding the swap
agreement are described as fixed interest rates.
(**) Interest rates are converted based on 1 year=365 days and indicated.

(million
yen)

Type

Interest
Rate (%)

Date ofDue date
Advance

Sumitomo Mitsui Banking Corporation

1,500 Float

T+0.350%

14/12/3

23/5/31

Resona Bank, Limited（*）
Development Bank of Japan Inc.
Shinsei Bank, Ltd.
The 77 Bank, Ltd.(*)
Development Bank of Japan Inc.
The Bank of Fukuoka, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Mizuho Bank, Ltd.
Shinsei Bank, Ltd.
Resona Bank, Limited
Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Musashino Bank, Ltd.(*)(**)
Nishi-Nippon City Bank, Ltd.
The 77 Bank, Ltd.(*)
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Nippon Life Insurance Company(*)
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
The Gunma Bank, Ltd.(*)
Nippon Life Insurance Company(*)
Taiyo Life Insurance Company
Sumitomo Mitsui Banking Corporation(*)
Development Bank of Japan Inc.
Mizuho Bank, Ltd.(*)
Resona Bank, Limited
Mizuho Trust and Banking Co., Ltd.
Shinsei Bank, Ltd.
Nishi-Nippon City Bank, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
Shinsei Bank, Ltd.
Fukoku Mutual Life Insurance Company
The Yamaguchi Bank, Ltd.

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

0.365%
15/2/270.710%
15/3/31
L+0.325% 15/3/31
0.479%
15/5/10.634%
15/5/1
T+0.300% 15/5/1
T+0.325% 15/5/1
T+0.325% 15/5/1
L+0.325% 15/5/1
T+0.325% 15/5/1
T+0.350% 15/5/1
T+0.325% 15/5/29
T+0.325% 15/5/29
0.349%
15/8/31
L+0.250% 15/8/31
0.281%
15/8/31
T+0.350% 15/8/31
0.300%
15/9/110.281%
15/9/11
T+0.325% 15/9/11
T+0.325% 15/9/11
T+0.350% 15/9/11
0.443% 15/11/30
0.281% 15/11/30
0.541% 15/11/30
0.290%
16/3/290.303%
16/3/290.290%
16/3/29
T+0.275% 16/3/29
T+0.275% 16/3/29
T+0.300% 16/3/29
T+0.300% 16/3/29
T+0.325% 16/3/29
T+0.325% 16/3/29
T+0.325% 16/5/26
T+0.350% 16/5/26
T+0.350% 16/5/26
T+0.325% 16/5/31
0.579%
16/5/310.450%
16/8/31

23/2/28
22/3/31
23/5/31
21/5/31
22/5/31
23/5/31
23/11/30
23/11/30
23/11/30
23/11/30
24/5/31
23/11/30
23/11/30
20/8/31
22/8/31
22/8/31
24/8/30
19/8/30
22/8/31
24/2/29
24/2/29
24/8/30
22/2/28
22/8/31
22/11/30
23/2/28
23/2/28
23/2/28
23/8/31
23/8/31
24/2/29
24/2/29
24/8/30
24/8/30
24/11/29
25/5/30
25/5/30
24/11/29
26/5/29
26/8/31

Term

Long term borrowings

LenderLong-term borrowings

Term

Lender(million
yen)

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

█ Investment Corporation Bonds
Balance(million yen)
3,000
Long- No. 3 Unsecured Investment Corporation Bondterm
No. 4 Unsecured Investment Corporation Bond
2,100
Total Investment corporate bonds
5,100
Term

Lender

Type
Fixed
Fixed

Interest
Rate (%)
0.42%
1.00%

Date of
Advance
14/9/12
14/9/12(Note) Both are with pari passu clause among specified investment corporation bonds.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

Due date
19/9/12
24/9/1244

Analyses of Tenants(As of November 30, 2016)

Major Tenants Top 10 List

Tenant Name(*1)

Property

Trend Micro Incorporated

Shinjuku Maynds Tower% Share of Industries* of Top 100 Tenants**
Leased
Area
(m2)
(*2)
6,314.58% of Total
Leased
Area
(*3)
1.9%

Tokio Marine & Nichido Anshin
Consulting Co., Ltd.

Integral Tower

6,058.41

1.8%

Palsystem Consumers'
Co-operative UnionLAQUAS Higashi Shinjuku

5,985.08

1.8%

Not disclosed

Daiwa Kayabacho Build.

5,899.11

1.7%

EMC Japan

Shinjuku Maynds Tower

5,693.39

1.7%

Kirin Brewery Company, Limited(*4)

Kirin Nihonbashi Building

5,630.17

1.7%

Jupiter Shop Channel Co., Ltd.

River Gate

5,629.68

1.7%

Temp Holdings Co., Ltd.

Shinjuku Maynds Tower
Daiwa Shibuya Miyamasuzaka

5,563.81

1.6%

Mitsubishi UFJ NICOS Co., Ltd.

Kitahama Grand Building

5,418.42

1.6%

Not disclosed

Shinjuku Maynds Tower

5,337.60

1.6%

57,530.25

17.4%

Total
*1 Not disclosed due to tenant's request.

*2 Leased spaces of the tenants in Shinjuku Maynds Tower are described as the figure equivalent to 6/7,
ownership % of the Investment Corporation.

Other
12.8%
Schools
3.1%
Securities, commodity
futures trade
3.2%
Electric Device
3.4%

Services
25.6%

Foods
3.7%
Wholesale
4.5%
Information&
Communication
21.6%

Real Estate
6.3%
Construction
6.6%
Retail Trade
8.7%* The leased area of top 100 tenants covers 65.3% of total leased area asof the end of the 22nd Fiscal Period.
** Industries are categorized according to TSE’s 33 industry groups.
*** The ratio is rounded down to the first decimal place*3 Rounded down to first decimal place.
*4. Succeeded the position of lessee from Kirin Beer Marketing Co, Ltd. on January 1, 2017.

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

45

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

End of 21st
PeriodEnd of 22nd
Period

16,30016,700Compared toCompared to
End of 21st Period (*) Acquisition
Acquisition Price
Price
Difference Change
Difference Change
+400

2.5%

14,100+2,60018.4%

Cap Rate
End of 21st
PeriodEnd of 22nd
Period3.8%

3.7%

Daiwa Ginza Annex

3,440

3,500

+60

1.7%

3,050

+450

14.8%

3.7%

3.6%

Daiwa Shibaura

7,520

7,670

+150

2.0%

8,265

-595

-7.2%

4.2%

4.1%

Daiwa Minami Aoyama

4,360

4,410

+50

1.1%

4,550

-140

-3.1%

4.1%

4.0%

Daiwa Sarugakucho

3,340

3,340

0

0.0%

3,190

+150

4.7%

4.7%

4.6%

Daiwa A Hamamatsucho

3,320

3,380

+60

1.8%

2,865

+515

18.0%

4.0%

3.9%

Daiwa Jingumae

2,290

2,320

+30

1.3%

2,800

-480

-17.1%

4.0%

3.9%

Daiwa Shibadaimon

2,900

2,960

+60

2.1%

2,578

+382

14.8%

3.9%

3.8%

Daiwa Misakicho

2,680

2,730

+50

1.9%

2,346

+384

16.4%

4.2%

4.1%

Daiwa Shimbashi 510

2,430

2,470

+40

1.6%

2,080

+390

18.8%

4.3%

4.2%

Daiwa Tsukijiekimae

1,590

1,650

+60

3.8%

1,560

+90

5.8%

4.5%

4.4%

Daiwa Tsukiji

1,390

1,430

+40

2.9%

1,240

+190

15.3%

4.4%

4.3%

Daiwa Tsukishima

9,170

9,230

+60

0.7%

7,840

+1,390

17.7%

4.4%

4.3%

Daiwa Nihonbashi
Horidomecho

2,510

2,530

+20

0.8%

2,520

+10

0.4%

4.3%

4.2%

Daiwa Azabudai

1,830

1,860

+30

1.6%

1,600

+260

16.3%

4.2%

4.1%

Daiwa Kyobashi

3,270

3,290

+20

0.6%

3,460

-170

-4.9%

4.2%

4.1%

Daiwa Kojimachi 4-chome

2,690

2,750

+60

2.2%

2,910

-160

-5.5%

3.9%

3.8%

Daiwa Onarimon

13,10013,400+300

2.3%

13,860

-460

-3.3%

4.0%

3.9%

Shinjuku Maynds Tower

119,000

122,000+3,0002.5%

133,800-11,800

-8.8%

3.5%

3.4%

SHIBUYA EDGE

4,750

4,870

+120

2.5%

5,900

-1,030-17.5%

4.0%

3.9%

Daiwa Kodemmacho

2,110

2,150

+40

1.9%

2,460

-310

-12.6%

4.5%

4.4%

Daiwa Jimbocho

3,340

3,470

+130

3.9%

4,150

-680

-16.4%

4.3%

4.1%

Daiwa Nishishimbashi

5,510

6,000

+490

8.9%

5,000

+1,000

20.0%

4.0%

3.7%

Daiwa Kayabacho Building

7,570

7,710

+140

1.8%

5,600

+2,110

37.7%

3.6%

3.5%

Daiwa Jinbocho 3-chome

4,500

4,620

+120

2.7%

3,550

+1,070

30.1%

3.6%

3.5%

E SPACE TOWER

32,50032,800+300

0.9%

24,000+8,800

36.7%

3.6%

3.5%

Daiwa Nihonbashi
Hongokucho

2,190

2,310

+120

5.5%

1,721

+589

34.2%

4.2%

4.1%

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

46

Appraisal Value Compared to the Previous Fiscal Period (2)(Unit: Million Yen)
Compared to
End of 21st Period (*)

Appraisal Value
Property Name

AcquisitionPrice

End of 21st
PeriodEnd of 22nd
PeriodDifference

shinyon curumu

12,60013,700+1,100

8.7%

Daiwa Akasaka

12,50012,900+400

Daiwa Shibuya Miyamasuzaka

8,580

8,660

+80

Azabu Green Terrace

15,70015,900Daiwa Ebisu 4-chome

5,300

5,380

Compared to
Acquisition Price

Cap Rate

Difference

ChangeEnd of 21st
PeriodEnd of 22nd
Period9,650+4,050

42.0%

3.5%

3.4%

3.2%

9,200

+3,700

40.2%

3.5%

3.4%

0.9%

7,000

+1,660

23.7%

3.8%

3.7%

+200

1.3%

14,000+1,900

13.6%

4.1%

4.0%

+80

1.5%

4,135

+1,245

30.1%

3.9%

3.8%

ChangeLAQUAS Higashi Shinjuku

10,100

10,200

+100

1.0%

8,450

+1,750

20.7%

3.5%

3.5%

Concept Aoyama

11,40011,800

+400

3.5%

9,800

+2,000

20.4%

3.6%

3.4%

Shinsen Place

6,150

6,260

+110

1.8%

4,800

+1,460

30.4%

3.6%

3.5%

Glass City Shibuya

17,50017,800+300

1.7%

16,000+1,800

11.3%

3.7%

3.6%

River Gate

29,90030,100+200

0.7%

28,000+2,100

7.5%

4.3%

4.2%

Daiwa Hatchobori ekimae
Daiwa Hatchobori ekimaeWest
Nikko Building

3,130

3,210

+80

2.6%

2,871

+339

11.8%

3.7%

3.6%

1,750

1,800

+50

2.9%

1,647

+153

9.3%

3.8%

3.7%

14,40014,800+400

2.8%

13,710+1,090

8.0%

3.6%

3.5%

8,220

8,230

+10

0.1%

8,180

+50

0.6%

4.1%

4.0%

-

6,560

-

-

6,370

+190

3.0%

-

4.0%

Kirin Nihonbashi Building
Heiwa Higashi-nihonbashi
Building
Square Daikanyama Building
Shinjuku West Building

-

2,470

-

-

2,280

+190

8.3%

-

3.6%

-

1,160

-

-

942

+218

23.1%

-

3.9%

Daiwa Higashi-Ikebukuro

3,580

3,650

+70

2.0%

2,958

+692

23.4%

4.4%

4.3%

Daiwa Shinagawa North

5,870

6,010

+140

2.4%

7,710

-1,700-22.0%

4.5%

4.4%

Daiwa Osaki 3-chome

2,270

2,320

+50

2.2%

1,650

+670

40.6%

4.0%

3.9%

Daiwa Kamiooka

2,470

2,600

+130

5.3%

2,000

+600

30.0%

4.8%

4.7%

Integral Tower

18,10018,500+400

2.2%

15,220+3,280

21.6%

4.0%

3.9%

Meguro Place Tower

6,290

6,410

+120

1.9%

5,600

+810

14.5%

3.8%

3.7%

Ogikubo TM Building
Daiwa Meieki

-

4,300

-

-

3,800

+500

13.2%

-

4.1%

7,320

7,660

+340

4.6%

5,300

+2,360

44.5%

4.4%

4.3%

Kitahama Grand Building

11,30011,500

+200

1.8%

9,481

+2,019

21.3%

4.0%

3.9%

Total(*)

480,030

505,430+10,9102.3%

467,749+37,680

8.1%

-

-

Difference and change in “Compared to End of 21st Period” do not include the impact of the properties acquired/sold in the 22nd Period.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

47

Appraisal Value at End of Fiscal Period (1)(Unit: Million Yen)
Summary of Appraisal Report (End of 22nd period)
Property Name

Appraisal Valueat End of 22nd Period

Direct Capitalization Method
Value

Cap Rate

DCF Method
Value

Discount
Rate

Terminal
Cap Rate

Integrated
Value

Daiwa Ginza

16,70017,0003.7%

16,4003.5%

3.9%

15,000Daiwa Ginza Annex

3,500

3,530

3.6%

3,470

3.4%

3.8%

3,890

Daiwa Shibaura

7,670

7,760

4.1%

7,630

3.9%

4.3%

6,330

Daiwa Minami Aoyama

4,410

4,450

4.0%

4,360

3.8%

4.2%

3,880

Daiwa Sarugakucho

3,340

3,400

4.6%

3,280

4.4%

4.8%

1,600

Daiwa A Hamamatsucho

3,380

3,430

3.9%

3,360

3.7%

4.1%

2,110

Daiwa Jingumae

2,320

2,340

3.9%

2,300

3.7%

4.1%

2,340

Daiwa Shibadaimon

2,960

3,030

3.8%

2,930

3.6%

4.0%

2,020

Daiwa Misakicho

2,730

2,760

4.1%

2,710

3.9%

4.3%

1,610

Daiwa Shimbashi 510

2,470

2,520

4.2%

2,420

4.0%

4.4%

2,000

Daiwa Tsukijiekimae

1,650

1,670

4.4%

1,640

4.4%

4.6%

1,550

Daiwa Tsukiji

1,430

1,400

4.3%

1,440

4.3%

4.5%

1,390

Daiwa Tsukishima

9,230

9,430

4.3%

9,150

4.0%

4.5%

5,260

Daiwa Nihonbashi
Horidomecho

2,530

2,580

4.2%

2,470

4.0%

4.4%

1,520

Daiwa Azabudai

1,860

1,890

4.1%

1,820

3.9%

4.3%

1,210

Daiwa Kyobashi

3,290

3,360

4.1%

3,210

3.9%

4.3%

2,020

Daiwa Kojimachi 4-chome

2,750

2,760

3.8%

2,730

3.6%

4.0%

4,240

Daiwa Onarimon

13,40013,7003.9%

13,100

3.7%

4.1%

11,800Shinjuku Maynds Tower*

122,000

145,000

3.4%

139,000

3.2%

3.6%

92,600SHIBUYA EDGE

4,870

4,950

3.9%

4,780

3.7%

4.1%

3,430

Daiwa Kodemmacho

2,150

2,160

4.4%

2,130

4.2%

4.6%

1,050

Daiwa Jimbocho

3,470

3,560

4.1%

3,430

4.1%

4.3%

3,270

Daiwa Nishishimbashi

6,000

6,140

3.7%

5,940

3.5%

3.9%

4,280

Daiwa Kayabacho Building

7,710

7,840

3.5%

7,660

3.3%

3.7%

6,220

Daiwa Jinbocho 3-chome

4,620

4,720

3.5%

4,580

3.3%

3.7%

4,030

E SPACE TOWER

32,80033,5003.5%

32,1003.3%

3.7%

31,000Daiwa Nihonbashi
Hongokucho

2,310

2,340

4.1%

2,300

3.9%

4.3%

1,560

*Appraisal value for Shinjuku Maynds Tower is indicated as 6/7 of the total appraisal value for the building. The figure regarding the overview of appraisal report is indicatedThis document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,
as 7/7 of the total.
nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

48

Appraisal Value at End of Fiscal Period (2)(Unit: Million Yen)
Summary of Appraisal Report (End of 22nd period)
Property Name

Appraisal Valueat End of 22nd Period

Direct Capitalization Method
Value

DCF Method

Cap Rate

Value

Discount
Rate

Integrated
Value

Terminal
Cap Rateshinyon curumu

13,70014,0003.4%

13,6003.2%

3.6%

12,700Daiwa Akasaka

12,90013,1003.4%

12,8003.2%

3.6%

12,800Daiwa Shibuya
Miyamasuzaka

8,660

8,820

3.7%

8,500

3.5%

3.9%

9,460

Azabu Green Terrace

15,90016,0004.0%

15,800

3.7%

4.1%

15,800Daiwa Ebisu 4-chome

5,380

5,370

3.8%

5,390

3.6%

4.0%

3,850

LAQUAS Higashi Shinjuku

10,20010,500

3.5%

10,0003.3%

3.7%

10,700Concept Aoyama

11,80012,1003.4%

11,600

3.2%

3.6%

10,100Shinsen Place

6,260

6,340

3.5%

6,230

3.4%

3.7%

3,870

Glass City Shibuya

17,80017,9003.6%

17,7003.3%

3.7%

17,400River Gate

30,10030,2004.2%

29,9003.9%

4.3%

27,200Daiwa Hatchobori ekimae

3,210

3,350

3.6%

3,150

3.4%

3.8%

3,830

Daiwa Hatchobori ekimae
West

1,800

1,880

3.7%

1,760

3.5%

3.9%

1,920

Nikko Building

14,80015,4003.5%

14,5003.3%

3.7%

14,600Kirin Nihonbashi Building

8,230

8,440

4.0%

8,020

3.8%

4.1%

7,810

Heiwa Higashi-nihonbashi
Building

6,560

6,760

4.0%

6,480

3.8%

4.2%

4,950

Square Daikanyama
Building

2,470

2,490

3.6%

2,460

3.6%

3.8%

2,460

Shinjuku West Building

1,160

1,180

3.9%

1,150

3.7%

4.1%

940

Daiwa Higashi-Ikebukuro

3,650

3,700

4.3%

3,630

4.1%

4.5%

2,190

Daiwa Shinagawa North

6,010

6,130

4.4%

5,890

4.2%

4.6%

4,070

Daiwa Osaki 3-chome

2,320

2,350

3.9%

2,310

3.7%

4.1%

1,510

Daiwa Kamiooka

2,600

2,600

4.7%

2,600

4.5%

4.9%

2,170

Integral Tower

18,50018,8003.9%

18,400

3.7%

4.1%

12,500Meguro Place Tower

6,410

6,620

3.7%

6,320

3.5%

3.9%

5,960

Ogikubo TM Building

4,300

4,380

4.1%

4,270

3.9%

4.3%

2,980

Daiwa Meieki

7,660

7,860

4.3%

7,580

4.3%

4.5%

8,530

Kitahama Grand Building

11,50011,8003.9%

11,300

3.7%

4.1%

12,600Total

505,430

535,290-517,680--

430,110

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

49

Portfolio Performance Summary (1)Fiscal Period ended May 2016 and November 2016 (21st and 22nd FP Results by Property)
Property Name

Daiwa Ginza

Daiwa Ginza Annex

Daiwa Shibaura

Daiwa Minami
AoyamaDaiwa Sarugakucho

Daiwa A
Hamamatsucho

Daiwa Jingumae

Acquisition Price (million yen)

14,10021st FP
22nd FP
13,243
13,231
16,30016,700
93.9
94.9
4.53
4.53
Best Property
183
183

3,050
21st FP
22nd FP
2,814
2,802
3,440
3,500
100.0
100.0
3.97
3.97
Best Property
183
183

8,265
21st FP
22nd FP
8,005
8,061
7,520
7,670
99.1
97.6
3.82
3.82
Xymax Alpha
183
183

4,550
21st FP
22nd FP
4,454
4,456
4,360
4,410
84.8
100.0
9.19
9.19
Best Property
183
183

3,190
21st FP
22nd FP
3,211
3,204
3,340
3,340
100.0
100.0
7.14
7.14
Property Partners
183
183

2,865
21st FP
22nd FP
2,822
2,818
3,320
3,380
100.0
100.0
3.79
3.79
Best Property
183
183

2,800
21st FP
22nd FP
2,700
2,734
2,290
2,320
100.0
100.0
13.33
13.33
Best Property
183
183(Reference)

Profits from property-related activities (*2)

Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (%)
PML (%) (*1)
Property Management Company
Number of operating days
(1) Property-related Revenues
388,955
395,979
89,01888,749245,293242,624
123,516
113,035- (*6)- (*6)
131,581
132,392
71,486
71,675(thousand yen)
Rent (incl. common service
388,955
395,979
89,01888,749243,550
240,358
123,516
113,035- (*6)- (*6)
131,581
132,392
71,486
71,675fees)
Other Revenues (*3)
0
0
0
0
1,743
2,266
0
0
- (*6)- (*6)0000(2) Property-related Expenses
98,811
198,207
22,25925,861
66,994
68,77430,26337,490- (*6)- (*6)
58,69460,492
16,067
23,405(thousand yen)
Administrative Expenses
13,954
14,247
5,347
4,273
12,955
12,966
3,733
9,038- (*6)- (*6)
8,359
8,619
2,873
2,990
Utility Charges
24,96425,3405,910
6,228
19,98017,9956,440
6,866- (*6)- (*6)
8,960
8,746
5,162
5,292
Property Management Fee
5,871
5,873
1,346
1,357
3,694
3,624
1,852
1,726
- (*6)- (*6)
2,017
1,949
1,200
1,420
Tax and Public Due
28,001
27,981
9,097
9,132
19,59819,582
11,84911,850- (*6)- (*6)
8,773
8,794
6,365
6,365
Non-life Insurance Costs
447
431
104
100
408
394
163
157
- (*6)- (*6)
190
184
88
85
Repair Expenses
13,73021,657453
4,769
10,337
14,211
6,224
7,850- (*6)- (*6)
992
2,799
370
7,243
Other Expenses
11,841
102,675
0
0
20
0
0
0
- (*6)- (*6)
29,40029,40077(3) NOI (=(1)-(2)) (*4)
290,143
197,772
66,75962,887
178,298
173,850
93,25275,54584,83086,152
72,886
71,90055,41848,270(thousand yen)
Annualized NOI (thousand yen)
578,702394,464
133,154
125,431355,623
346,751
185,995
150,678
169,197
171,834
145,374
143,407
110,535
96,276
NOI Yield (*5)
4.4%
3.0%
4.7%
4.5%
4.4%
4.3%
4.2%
3.4%
5.3%
5.4%
5.2%
5.1%
4.1%
3.5%
Depreciation and amortization
70,33870,452
17,945
18,07325,736
26,457
13,391
13,501- (*6)- (*6)
15,072
15,078
7,621
8,835(thousand yen)Repair Work (thousand yen)
0
0
0
0
337
830
0
0
- (*6)- (*6)
00
0
0Proceeds from Amortization of
Leasehold and Security
0
0
0
0
0
0
0
0
- (*6)- (*6)
0
0
0
0(thousand yen)(*1) Sompo Risk Care Management Inc. has prepared the PML for the 22nd fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (December 2016).
(*2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(*3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*4) (3) NOI in this table is calculated by adjusting the Tax and Public Due for the “NOI (after deduction of gain on sale)”aforementioned in the Appendix “Major Financial Data” so the figures do not match.
(*5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(*6) Not disclosed due to tenant's request.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

50

Portfolio Performance Summary (2)Fiscal Period ended May 2016 and November 2016 (21st and 22nd FP Results by Property)
Property Name

Daiwa Shibadaimon

Daiwa Misakicho

Daiwa Shimbashi 510

Daiwa Tsukijiekimae

Daiwa Tsukiji

Daiwa Tsukishima

Daiwa Nihonbashi
Horidomecho

Acquisition Price (million yen)

2,578
21st FP
22nd FP
2,389
2,384
2,900
2,960
100.0
100.0
3.72
3.72
Best Property
183
183

2,346
21st FP
22nd FP
2,185
2,174
2,680
2,730
100.0
100.0
4.24
4.24
Best Property
183
183

2,080
21st FP
22nd FP
2,134
2,131
2,430
2,470
88.0
99.6
5.51
5.51
Property Partners
183
183

1,560
21st FP
22nd FP
1,341
1,328
1,590
1,650
100.0
100.0
4.23
4.23
MS Building Support
183
183

1,240
21st FP
22nd FP
1,164
1,157
1,390
1,430
89.2
100.0
4.98
4.98
Xymax Alpha
183
183

7,840
21st FP
22nd FP
6,952
7,051
9,170
9,230
100.0
56.7
4.87
4.87
Property Partners
183
183

2,520
21st FP
22nd FP
2,485
2,477
2,510
2,530
100.0
100.0
4.68
4.68
Best Property
183
183(Reference)

Profits from property-related activities (*2)

Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (%)
PML (%) (*1)
Property Management Company
Number of operating days
(1) Property-related Revenues
84,20185,853- (*6)- (*6)
78,38569,202
55,72456,72045,38950,807274,707
129,01782,80682,561(thousand yen)
Rent (incl. common service
84,20185,853- (*6)- (*6)
78,38569,202
55,72456,72045,38947,332274,707
129,01782,80682,561
fees)
Other Revenues (*3)
00
- (*6)- (*6)
0
0
0
0
0
3,474
0
0
0
0
(2) Property-related Expenses
19,631
21,842- (*6)- (*6)
30,78421,081
26,205
15,78010,685
11,51747,552
68,78018,76018,646(thousand yen)
Administrative Expenses
5,641
5,965
- (*6)- (*6)
4,913
5,474
3,100
3,054
2,617
3,511
7,885
30,2203,927
4,311
Utility Charges
6,199
6,693
- (*6)- (*6)
5,988
6,091
5,740
5,950
2,663
2,618
21,372
11,307
5,289
4,993
Property Management Fee
1,265
1,289
- (*6)- (*6)
1,224
1,200
1,200
1,200
1,200
1,282
4,143
1,798
1,275
1,261
Tax and Public Due
6,239
6,240
- (*6)- (*6)
5,704
5,673
5,072
5,072
3,866
3,863
13,681
13,6666,706
6,750
Non-life Insurance Costs
130
125- (*6)- (*6)
133
128
104
101
67
65
309
298
141
136
Repair Expenses
154
1,527
- (*6)- (*6)
12,801
2,512
10,968
383
271
176
160
11,4541,420
1,143
Other Expenses
00- (*6)- (*6)
18
0
18
18
0
0
0
34
0
50
(3) NOI (=(1)-(2)) (*4)
64,57064,011
61,32164,90647,60048,121
29,51940,94034,70339,289227,154
60,23764,04563,915s(thousand yen)
Annualized NOI (thousand yen)
128,789
127,673
122,307
129,458
94,941
95,97958,87781,656
69,21778,364453,068
120,145
127,740
127,481
NOI Yield (*5)
5.4%
5.4%
5.6%
6.0%
4.4%
4.5%
4.4%
6.1%
5.9%
6.8%
6.5%
1.7%
5.1%
5.1%
Depreciation and amortization
9,643
9,691
- (*6)- (*6)
7,682
7,817
13,493
13,4977,295
7,297
53,61556,204
14,072
14,157(thousand yen)Repair Work (thousand yen)00
- (*6)- (*6)
0
0
0
0
0
0
0
0
0
0
Proceeds from Amortization of
Leasehold and Security00- (*6)- (*6)
0
0
0
0
0
0
0
0
0
0
(thousand yen)(*1) Sompo Risk Care Management Inc. has prepared the PML for the 22nd fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (December 2016).
(*2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(*3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*4) (3) NOI in this table is calculated by adjusting the Tax and Public Due for the “NOI (after deduction of gain on sale)”aforementioned in the Appendix “Major Financial Data” so the figures do not match.
(*5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(*6) Not disclosed due to tenant's request.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

51

Portfolio Performance Summary (3)Fiscal Period ended May 2016 and November 2016 (21st and 22nd FP Results by Property)
Property Name

Daiwa Azabudai

Daiwa Kyobashi

Daiwa Kojimachi 4chome

Daiwa Onarimon

Shinjuku Maynds
Tower

SHIBUYA EDGE

Daiwa Kodemmacho

Acquisition Price (million yen)

1,600
21st FP
22nd FP
1,536
1,530
1,830
1,860
100.0
100.0
6.64
6.64
Best Property
183
183

3,460
21st FP
22nd FP
3,300
3,282
3,270
3,290
100.0
88.2
4.51
4.51
Best Property
183
183

2,910
21st FP
22nd FP
2,865
2,856
2,690
2,750
100.0
100.0
6.19
6.19
Best Property
183
183

13,86021st FP
22nd FP
13,44913,424
13,10013,400
100.0
100.0
3.89
3.89
Xymax Alpha
183
183

133,800
21st FP
22nd FP
130,157
129,961
119,000
122,000
98.8
99.2
2.03
2.03
Xymax Alpha
183
183

5,900
21st FP
22nd FP
5,708
5,697
4,750
4,870
100.0
100.0
1.56
1.56
Xymax Alpha
183
183

2,460
21st FP
22nd FP
2,400
2,392
2,110
2,150
100.0
100.0
4.19
4.19
Property Partners
183
183(Reference)

Profits from property-related activities (*2)

Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (%)
PML (%) (*1)
Property Management Company
Number of operating days
(1) Property-related Revenues
57,46753,48997,01993,38390,734
92,072
337,495
341,453 2,455,214 2,514,385
114,261
125,017
63,62664,621(thousand yen)
Rent (incl. common service
56,08753,48997,01993,38390,734
92,072
337,495
341,453 2,455,214 2,514,385
114,261
125,017
63,62664,621
fees)
Other Revenues (*3)
1,380
0
0
0
0
0
0
0
0
0
0
0
0
0
(2) Property-related Expenses
18,274
13,25828,485
26,69628,85436,65080,572
76,638736,482
829,473
21,56621,487
13,14813,919(thousand yen)
Administrative Expenses
2,531
3,427
5,519
4,796
4,491
4,578
12,535
12,407
144,591
138,407
5,160
4,664
2,853
3,422
Utility Charges
3,300
3,225
7,870
7,396
6,228
6,692
22,702
23,432271,207273,181
6,905
6,991
4,470
4,730
Property Management Fee
1,200
1,200
1,461
1,376
1,352
1,371
3,376
3,417
17,354
17,639
1,718
1,864
1,200
1,200
Tax and Public Due
4,911
4,934
7,114
7,134
14,935
14,951
34,92834,932
247,651
253,764
7,250
7,241
3,637
3,646
Non-life Insurance Costs
79
76
138
133
154
149
429
413
3,938
3,794
112
108
100
97
Repair Expenses
6,252
394
6,382
5,858
1,690
8,907
6,601
2,034
47,639135,569
419
616
63
0
Other Expenses
0
0
0
0
0
0
0
0
4,098
7,116
0
0
822
822
(3) NOI (=(1)-(2)) (*4)
39,19340,231
68,534
66,68761,88055,422
256,922
264,814 1,718,732 1,684,911
92,695103,52950,47750,701(thousand yen)
Annualized NOI (thousand yen)
78,17280,242
136,694
133,010
123,422
110,541
512,441
528,182 3,428,072 3,360,615
184,884
206,494
100,679
101,126
NOI Yield (*5)
5.1%
5.2%
4.1%
4.1%
4.3%
3.9%
3.8%
3.9%
2.6%
2.6%
3.2%
3.6%
4.2%
4.2%
Depreciation and amortization
8,677
8,778
19,73919,946
11,843
12,48330,89030,996
380,807386,650
16,207
16,2509,356
9,379(thousand yen)Repair Work (thousand yen)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Proceeds from Amortization of
Leasehold and Security
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(thousand yen)(*1) Sompo Risk Care Management Inc. has prepared the PML for the 22nd fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (December 2016).
(*2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(*3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*4) (3) NOI in this table is calculated by adjusting the Tax and Public Due for the “NOI (after deduction of gain on sale)”aforementioned in the Appendix “Major Financial Data” so the figures do not match.
(*5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

52

Portfolio Performance Summary (4)Fiscal Period ended May 2016 and November 2016 (21st and 22nd FP Results by Property)
Property Name

Daiwa Jimbocho

Acquisition Price (million yen)

4,150
21st FP
22nd FP
4,080
4,065
3,340
3,470
100.0
100.0
5.05
5.05
Japan Property Solutions
183
183

Daiwa Nishishimbashi

Daiwa Kudan(*6)

5,000
4,000
21st FP
22nd FP
21st FP
22nd FP
4,845
4,813
3,803
5,510
6,000
3,360
100.0
100.0
100.0
3.76
3.76
5.51
Xymax Alpha
Japan Property Solutions
183
183
183
36

Daiwa Kayabacho
Building

Daiwa Jinbocho3-chome

5,600
3,550
21st FP
22nd FP
21st FP
22nd FP
5,369
5,342
3,450
3,432
7,570
7,710
4,500
4,620
100.0
100.0
100.0
100.0
4.50
4.50
5.33
5.33
Property Partners
Japan Property Solutions
183
183
183
183

E SPACE TOWER

Daiwa Nihonbashi
Hongokucho

24,00021st FP
22nd FP
23,664
23,62332,50032,800
100.0
96.8
3.11
3.11
Xymax Alpha
183
183

1,721
21st FP
22nd FP
1,641
1,628
2,190
2,310
100.0
100.0
3.80
3.80
MS Building Support
183
183(Reference)

Profits from property-related activities (*2)

Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (%)
PML (%) (*1)
Property Management Company
Number of operating days
(1) Property-related Revenues
103,433
105,713
156,566
163,966
98,947
21,811- (*7)- (*7)
110,547
114,455
785,083
797,381
60,57963,187(thousand yen)
Rent (incl. common service fees)
103,433
105,713
156,566
163,966
98,947
21,811- (*7)- (*7)
110,547
114,455
785,083
793,932
60,57963,187
Other Revenues (*3)
0
0
0
0
0
0
- (*7)- (*7)
0
0
0
3,448
0
0
(2) Property-related Expenses
26,112
25,561
45,98945,044
23,416
12,419- (*7)- (*7)
23,65929,050164,477
196,072
13,905
15,498(thousand yen)
Administrative Expenses
5,247
4,905
16,78013,282
4,236
857- (*7)- (*7)
5,636
6,607
43,28646,3594,424
6,260
Utility Charges
7,324
6,917
9,697
10,6596,517
1,880- (*7)- (*7)
6,637
7,408
45,92749,851
3,373
3,217
Property Management Fee
1,200
1,200
2,072
2,169
1,514
318
- (*7)- (*7)
1,661
1,719
7,855
7,879
1,200
1,200
Tax and Public Due
10,894
10,874
15,736
15,766
8,747
8,988- (*7)- (*7)
9,395
9,374
56,89356,7904,420
4,407
Non-life Insurance Costs
144
139
244
238
120
23
- (*7)- (*7)
127
124
672
653
77
74
Repair Expenses
1,038
1,483
1,455
2,925
2,280
350
- (*7)- (*7)
200
3,816
9,342
34,465410
339
Other Expenses
263
40
3
3
0
0
- (*7)- (*7)
0
0
500
72
0
0
(3) NOI (=(1)-(2)) (*4)
77,32180,152
110,577
118,92175,5309,392
144,399
148,719
86,88785,405620,606
601,308
46,67447,688(thousand yen)
Annualized NOI (thousand yen)
154,220
159,866
220,549
237,193
150,648
288,009296,626
173,299
170,344 1,237,820 1,199,331
93,093
95,116
NOI Yield (*5)
3.8%
3.9%
4.6%
4.9%
4.0%
5.4%
5.6%
5.0%
5.0%
5.2%
5.1%
5.7%
5.8%
Depreciation and amortization
21,501
21,58734,00634,136
24,731
8,244- (*7)- (*7)
19,751
19,78064,921
65,855
13,16913,173(thousand yen)Repair Work (thousand yen)
0
0
0
0
0
0
- (*7)- (*7)
00
0
0
0
0
Proceeds from Amortization of
Leasehold and Security
0
0
0
0
0
0
- (*7)- (*7)
0
0
0
0
0
0(thousand yen)(*1) Sompo Risk Care Management Inc. has prepared the PML for the 22nd fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (December 2016).
(*2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(*3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*4) (3) NOI in this table is calculated by adjusting the Tax and Public Due for the “NOI (after deduction of gain on sale)”aforementioned in the Appendix “Major Financial Data” so the figures do not match.
(*5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(*6) Properties sold in the 22nd fiscal period.
(*7) Not disclosed due to tenant's request.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

53

Portfolio Performance Summary (5)(Reference)

Profits from property-related activities (*2)

Fiscal Period ended May 2016 and November 2016 (21st and 22nd FP Results by Property)
Property Name

shinyon curumu

Daiwa Shibuya
Dogenzaka (*6)

Daiwa Akasaka

Daiwa Daiwa Shibuya
Miyamasuzaka

Azabu Green Terrace Daiwa Ebisu 4-chome

Acquisition Price (million yen)

9,650
21st FP
22nd FP
9,811
9,777
12,60013,700
100.0
100.0
4.44
4.44
MS Building Support
183
183

4,500
21st FP
22nd FPBest Property
122
-

9,200
21st FP
22nd FP
9,385
9,381
12,50012,900
100.0
100.0
7.14
7.14
Xymax Alpha
183
183

7,000
21st FP
22nd FP
7,233
7,244
8,580
8,660
100.0
100.0
5.64
5.64
Japan Property Solutions
183
183

14,00021st FP
22nd FP
14,23914,19015,70015,900
94.9
99.6
2.67
2.67
Best Property
183
183

Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (%)
PML (%) (*1)
Property Management Company
Number of operating days
(1) Property-related Revenues(thousand yen)
Rent (incl. common service fees)
Other Revenues (*3)(2) Property-related Expenses(thousand yen)
Administrative Expenses
Utility Charges
Property Management Fee
Tax and Public Due
Non-life Insurance Costs
Repair Expenses
Other Expenses(3) NOI (=(1)-(2)) (*4)(thousand yen)
Annualized NOI (thousand yen)
NOI Yield (*5)
Depreciation and amortization(thousand yen)Repair Work (thousand yen)
Proceeds from Amortization of
Leasehold and Security(thousand yen)

LAQUAS Higashi
Shinjuku

4,135
8,450
21st FP
22nd FP
21st FP
22nd FP
4,275
4,263
8,610
8,578
5,300
5,380
10,100
10,200
100.0
100.0
100.0
100.0
2.44
2.44
4.46
4.46
MS Building Support ITOCHU Urban Community
183
183
183
183

326,200

322,419

93,374

0311,393

342,044

233,581242,942

458,576

436,169- (*7)- (*7)

225,363

227,681326,200
0322,419
0

93,374000311,3930342,0440233,5810242,9420

413,576
45,000436,1690- (*7)- (*7)- (*7)- (*7)

225,3630

227,6810

78,05585,92945,344

3

98,596111,656

67,18076,287

124,372

120,940- (*7)- (*7)

47,00649,191

18,927
21,251
3,226
33,622334
669
25

26,548
22,1003,267
33,513
322
177
0

7,724
10,312
1,060
20,128
143
5,976
0

0
0
0
3
0
0
0

22,38334,721
3,396
33,101
433
4,361
200

22,62341,4993,819
33,494418
9,802
020,995
15,811
2,825
19,977
303
7,207
60

20,477
15,5552,923
20,000292
17,038037,45543,614
3,613
31,841
616
7,101
130

37,05844,123
3,852
31,815
595
3,395
99

- (*7)- (*7)- (*7)- (*7)- (*7)- (*7)- (*7)- (*7)- (*7)- (*7)- (*7)- (*7)- (*7)- (*7)

10,202
13,753
1,200
20,342
319
1,031
158

9,973
16,254
1,200
20,426307803
226

248,144

236,489

48,030-3

212,796

230,387

166,400

166,654334,204

315,229

39,407113,147

178,357

178,489

494,9325.0%

471,686
4.8%--

424,430
4.5%

459,5164.9%

331,892
4.6%

332,399
4.6%

666,582
4.7%

628,735
4.4%

78,6001.8%

225,677
5.3%

355,7394.1%

356,003
4.2%

35,83435,874

15,144

026,933

24,402

23,35722,86150,39150,467- (*7)- (*7)

32,29032,292

0

0

0

0

0

0

0

0

0

0

- (*7)- (*7)

0

0

0

0

0

0

0

0

0

0

0

0

- (*7)- (*7)

00(*1) Sompo Risk Care Management Inc. has prepared the PML for the 22nd fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (December 2016).
(*2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(*3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*4) (3) NOI in this table is calculated by adjusting the Tax and Public Due for the “NOI (after deduction of gain on sale)”aforementioned in the Appendix “Major Financial Data” so the figures do not match.
(*5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(*6) Properties sold in the 21st fiscal period.
(*7) Not disclosed due to tenant's request.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

54

Portfolio Performance Summary (6)(Reference)

Profits from property-related activities (*2)

Fiscal Period ended May 2016 and November 2016 (21st and 22nd FP Results by Property)
Daiwa Hatchobori
ekimaeDaiwa Hatchobori
ekimae West

Property Name

Concept Aoyama

Shinsen Place

Glass City Shibuya

Acquisition Price (million yen)

9,800
21st FP
22nd FP
10,045
10,088
11,40011,800
91.4
100.0
4.42
4.42
MS Building Support
183
183

4,800
21st FP
22nd FP
4,915
4,907
6,150
6,260
100.0
100.0
6.21
6.21
MS Building Support
183
183

16,00021st FP
22nd FP
16,094
16,073
17,50017,800
100.0
100.0
1.61
1.61
Xymax Alpha
183
183

28,0002,871
1,647
21st FP
22nd FP
21st FP
22nd FP
21st FP
22nd FP28,19028,159
2,974
2,966
1,709
1,736
29,90030,100
3,130
3,210
1,750
1,800
98.6
95.1
100.0
100.0
100.0
100.0
1.76
1.76
5.89
5.89
7.03
7.03
Best Property
ITOCHU Urban Community ITOCHU Urban Community
183
183
183
183
183
183

Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (%)
PML (%) (*1)
Property Management Company
Number of operating days
(1) Property-related Revenues(thousand yen)
Rent (incl. common service fees)
Other Revenues (*3)(2) Property-related Expenses(thousand yen)
Administrative Expenses
Utility Charges
Property Management Fee
Tax and Public Due
Non-life Insurance Costs
Repair Expenses
Other Expenses(3) NOI (=(1)-(2)) (*4)(thousand yen)
Annualized NOI (thousand yen)
NOI Yield (*5)
Depreciation and amortization(thousand yen)Repair Work (thousand yen)
Proceeds from Amortization of
Leasehold and Security(thousand yen)

River Gate

Nikko Building

13,71021st FP
22nd FP
13,983
13,97014,40014,800
99.3
99.3
4.32
4.32
MS Building Support
64
183

241,533

265,285- (*6)- (*6)

384,623

416,414935,993 1,043,216

78,26678,032

44,901

45,62585,050311,095

215,914
25,618215,785
49,500- (*6)- (*6)- (*6)- (*6)

370,957
13,666

416,4140932,951 1,039,686
3,041
3,529

78,266
0

78,032044,901045,625085,0500311,095
033,332

104,419- (*6)- (*6)

51,02578,641

286,985

358,425

15,73929,8289,321

35,477

8,789

38,378

9,922
8,226
2,420
0
162
12,599027,1108,395
1,992
12,736
156
54,0280- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)

16,41825,747
4,474
333
379
3,671
0

16,47828,026
4,457
27,200366
2,111
080,447132,117
9,339
68
1,858
63,033120

73,458
126,682
10,399105,226
1,792
40,865
0

6,304
6,982
1,240
46
133
987
46

6,575
7,445
1,200
8,999
128
5,479
0

3,443
3,668
1,200
15
68
915
10

3,086
3,588
1,200
4,029
66
23,506
0

4,765
3,190
713
8
110
0
1

12,951
20,614
2,178
72
306
2,253
0

208,201

160,865

131,248

123,692

333,598

337,773

649,007684,790

62,527

48,20435,58010,14776,260272,717415,264
4.1%

320,851
3.2%

261,778
5.3%

246,709
5.0%

665,374
4.1%

673,700 1,294,469 1,365,839
4.2%
4.6%
4.9%

124,713
4.2%

96,144
3.2%

70,965
4.2%

20,2401.2%

434,9223.1%

543,945
3.9%

17,436

17,897- (*6)- (*6)

32,18832,368152,338

156,711

9,955

10,010

4,140

4,322

8,667

17,4248,270

49,500- (*6)- (*6)

0

0

406

964

0

0

0

0

0

0

0

0

- (*6)- (*6)

0

0

239

215

0

0

0

0

0

0

(*1) Sompo Risk Care Management Inc. has prepared the PML for the 22nd fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (December 2016).
(*2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(*3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*4) (3) NOI in this table is calculated by adjusting the Tax and Public Due for the “NOI (after deduction of gain on sale)”aforementioned in the Appendix “Major Financial Data” so the figures do not match.
(*5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(*6) Not disclosed due to tenant's request.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

55

Portfolio Performance Summary (7)Fiscal Period ended May 2016 and November 2016 (21st and 22nd FP Results by Property)
Property Name

(Reference)

Profits from property-related activities (*2)

Acquisition Price (million yen)Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (%)
PML (%) (*1)
Property Management Company
Number of operating days
(1) Property-related Revenues(thousand yen)
Rent (incl. common service fees)
Other Revenues (*3)(2) Property-related Expenses(thousand yen)
Administrative Expenses
Utility Charges
Property Management Fee
Tax and Public Due
Non-life Insurance Costs
Repair Expenses
Other Expenses(3) NOI (=(1)-(2)) (*4)(thousand yen)
Annualized NOI (thousand yen)
NOI Yield (*5)
Depreciation and amortization(thousand yen)Repair Work (thousand yen)
Proceeds from Amortization of
Leasehold and Security(thousand yen)

Kirin Nihonbashi
Building

Heiwa Higashinihonbashi Building

Square Daikanyama
Building

8,180
6,370
21st FP
22nd FP
21st FP
22nd FP
8,326
8,320
6,412
8,220
8,230
6,560
100.0
100.0
100.0
5.76
5.76
4.37
Japan Property Solutions ITOCHU Urban Community
6
183
183

Shinjuku West
Building

2,280
942
21st FP
22nd FP
21st FP
22nd FP
2,371
984
2,470
1,160
100.0
100.0
6.21
8.28
Xymax Alpha
ITOCHU Urban Community
155
133

Daiwa HigashiIkebukuro

Daiwa Shinagawa
North

Daiwa Osaki 3-chome

2,958
21st FP
22nd FP
2,727
2,712
3,580
3,650
100.0
100.0
3.55
3.55
Best Property
183
183

7,710
21st FP
22nd FP
7,267
7,238
5,870
6,010
100.0
100.0
7.19
7.19
Best Property
183
183

1,650
21st FP
22nd FP
1,649
1,639
2,270
2,320
78.9
100.0
6.14
6.14
Xymax Alpha
183
183- (*6)- (*6)-

165,841-- (*6)-

26,862

122,206

121,229

189,574

196,667

60,99952,347- (*6)- (*6)- (*6)- (*6)-

165,8410-- (*6)- (*6)-

26,716145

122,206
0

121,2290

188,044
1,530

196,667
0

60,999052,3470- (*6)- (*6)-

18,063-- (*6)-

4,277

34,991

32,412

57,61051,602

13,041

12,834- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)

-

6,145
9,942
1,679
3
208
10
72

-

- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)- (*6)

-

1,779
1,578
870
8
30
0
9

8,922
12,192
1,833
8,594
228
3,220
0

9,339
11,622
1,813
8,598
220
819
0

13,33015,1072,846
18,442351
7,531
0

12,067
15,472
2,944
18,374
339
2,404
0

2,497
2,977
1,200
3,903
70
2,392
0

4,850
2,681
1,200
3,935
68
98
0

5,879

175,410-

147,778-

43,002-

22,58487,21588,817

131,964

145,064

47,95739,513357,659
4.3%

349,862
4.2%-

294,749
4.6%-

101,264
4.3%-

61,9806.3%

173,953
6.4%

177,149
6.5%

263,208
3.6%

289,336
4.0%

95,653
5.8%

78,810
4.8%- (*6)- (*6)-

25,061-- (*6)-

1,788

23,30923,04833,772

34,05011,342

11,377- (*6)- (*6)-0-- (*6)

-

0

0

0

1,530

0

0

0

- (*6)- (*6)-0-- (*6)

-

145

0

0

0

0

0

0

(*1) Sompo Risk Care Management Inc. has prepared the PML for the 22nd fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (December 2016).
(*2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(*3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*4) (3) NOI in this table is calculated by adjusting the Tax and Public Due for the “NOI (after deduction of gain on sale)”aforementioned in the Appendix “Major Financial Data” so the figures do not match.
(*5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value.
(*6) Not disclosed due to tenant's request.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

56

Portfolio Performance Summary (8)Fiscal Period ended May 2016 and November 2016 (21st and 22nd FP Results by Property)
Property Name

Daiwa Kamiooka

Meguro Place
Tower

Integral Tower

Ogikubo TM
Building

Daiwa MinamiSenba (*6)

Kitahama Grand
Building

Daiwa Meieki

Total (*7)

Acquisition Price (million yen)

(Reference)

Profits from property-related activities (*2)

Book Value (million yen)Appraisal Value (million yen)Occupancy Rate (%)
PML (%) (*1)
Property Management Company
Number of operating days
(1) Property-related Revenues(thousand yen)
Rent (incl. common service
fees)
Other Revenues (*3)(2) Property-related Expenses(thousand yen)
Administrative Expenses
Utility Charges
Property Management Fee
Tax and Public Due
Non-life Insurance Costs
Repair Expenses
Other Expenses(3) NOI (=(1)-(2)) (*4) (thousandyen)
Annualized NOI (thousand yen)
NOI Yield (*5)
Depreciation and amortization(thousand yen)Repair Work (thousand yen)
Proceeds from Amortization of
Leasehold and Security(thousand yen)

2,000
15,220
5,600
3,800
4,810
5,300
9,481
21st FP 22nd FP 21st FP 22nd FP 21st FP 22nd FP 21st FP 22nd FP 21st FP 22nd FP 21st FP 22nd FP 21st FP 22nd FP
1,975
1,966
15,11315,027
5,616
5,595
3,947
5,315
5,288
9,468
9,416
2,470
2,600
18,10018,500
6,290
6,410
4,300
7,320
7,660
11,30011,500
89.8
93.7
99.5
100.0
100.0
96.1
100.0
100.0
100.0
100.0
100.0
6.29
6.29
1.18
1.18
1.68
1.68
6.41
10.31
10.31
3.48
3.48
Xymax Alpha
Xymax Alpha
Xymax Alpha
Xymax Alpha
ITOCHU Urban Community Japan Property Solutions
Japan Property Solutions
183
183
183
183
183
183
133
134
183
183
183
183

458,357
21st FP451,114483,39098.7
2.03

467,749
22nd FP
460,321505,430
97.7
2.06

183

183

89,082

82,673

576,531574,331

138,929

146,476-

90,03974,068602

249,751

248,690

337,322347,799 12,039,783 12,750,885

89,082

82,673

576,531574,331

138,929

145,224-90,03974,068602

249,751

248,690

337,322347,799 11,947,802 12,687,269

0

0

0

0

0

1,251

-

0

0

0

0

0

0

0

91,98063,616

19,671

21,384

293,764

182,167

22,30034,441-

12,05636,184061,812

63,081

95,792

94,065

3,285,902

3,671,021

4,444
6,873
1,200
6,357
121
654
18

5,237
6,602
1,200
6,333
117
1,893
0

45,63674,437
6,356
44,206
900
121,846
380

49,722
68,113
6,292
44,329868
12,661
180

10,308
8,635
2,000
187
179
85
905

7,475
9,477
1,717
13,576
172
2,023
0

-

6,691
3,753
1,012
8
105
485
0

8,169
10,206
1,129
16,406
182
90
0

0
0
0
0
0
0
0

18,572
15,8102,989
20,152394
3,893
0

23,152
16,324
2,931
20,291380
0019,89733,183
5,059
32,935
599
4,020
96

20,04334,575
5,216
32,864578
689
96

732,458
1,051,126
136,240
895,922
17,250403,758
49,144802,428
1,068,008
139,986
1,045,881
17,056456,738
140,9228,753,880

9,079,863

69,41061,288282,767

392,163

116,628

112,034-

77,98237,884602

187,938

185,609

241,529

253,733

138,4417.0%

122,2426.2%

563,9883.7%

782,184
5.2%

232,620
4.1%

223,456
4.0%-

214,012
5.4%--

374,850
7.1%

370,205
7.0%

481,7395.1%

506,080 17,917,318 18,181,085
5.4%
4.0%
3.9%

17,864

17,92093,991

93,77322,562

22,597-

8,487

26,994035,02035,11753,18453,2191,726,073

1,749,716

0

0

0

0

0

880

-

0

0

0

0

0

0

0

10,54352,174

0

0

0

0

0

0

-

0

0

0

0

0

0

0

239

360

(*1) Sompo Risk Care Management Inc. has prepared the PML for the 22nd fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (Dec. 2016).
(*2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen.
(*3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits.
(*4) (3) NOI in this table is calculated by adjusting the Tax and Public Due for the “NOI (after deduction of gain on sale)”aforementioned in the Appendix “Major Financial Data” so the figures do not match.
(*5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value (including properties sold during the period).
(*6) Properties sold in the 21st fiscal period..
(*7) Annualized NOIs and NOIs Yield for the 21st and 22nd fiscal periods do not include properties sold in the 21st and 22nd fiscal periods, respectively. The portfolio total of (2) Property-related Expenses in thetable does not include expenses related to the Investment Corporation. Furthermore, Acquisition Price indicates the total of the portfolio at the end of each fiscal period.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

57

Overview of Asset Management Company (1)Directors

Company Overview(As of December 31, 2016)

Company Name

Daiwa Real Estate Asset Management Co., Ltd.

Address

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

Established

October 21, 2004

Paid-in Capital

200 million yen

Representative Director

Akira Yamanouchi

Board of Directors

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

No. of Employees

69 (excluding dispatched employees)

Registered Financial
Instruments Firm

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

Building Lots andBuildings Transaction
Business License
Discretionary Agent forReal Estate Transaction
Approval

Association Membership

License No. (3)-83920, Governor of Tokyo
License No. 34, Minister of Land, Infrastructure,
Transport and Tourism
Member of The Investment Trusts Association,
Japan
Member of Japan Investment Advisers
Association
Member of Type II Financial Instruments Firms
Association(As of December 31, 2016)

President andRepresentative Director
Vice President andRepresentative Director
Vice President andRepresentative Director

Akira Yamanouchi
Yuji Shinotsuka
Yoshiki Nishigaki

Director

Naoyuki Owa

Director (non-executive)

Mikita Komatsu

Director (non-executive)

Akihiko Ogino

AuditorTamaki Shibayama

Auditor (non-executive)

Masamori Matsuda

Auditor (non-executive)

Shinji Kiso

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

Listed REIT focusing on office buildings
Asset size: approximately 469.3billion yen(54 properties)
Unlisted REIT focusing on residential
Daiwa Residential Private properties
Investment Corporation
Asset size: approximately 91.8 billion yen(58 properties)
Japan’s first listed REIT focusing on healthcare
facilities
Nippon Healthcare
Asset size: approximately 19.3 billion yen
Investment Corporation(22 properties)
Daiwa Office Investment
Corporation

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

58

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

Compliance Officer
President andRepresentative Director
Internal Control OfficeAcquisition
Department

Origination
Department

Asset
Management
Department

Private FundManagement
Department

Customer
Relations
Department

Finance
Department

Administration
Department

Office Investment
Team

Office Management
Team

Finance Team

Residential
Investment Team

Residential
Management Team

Accounting Team

Healthcare
Management TeamManagement
Team

Healthcare Investment
Team
Infrastructure
Investment teamCorporate
Planning
Department

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

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

Action Plan for Asset Management Division for FY2016
1. Strengthen the management structure and target performance.
2. Develop products suitable for expanding the investor base and longterm asset building.
3. Expanded products that meet the needs of clients and enhance
support
4. Further accomplish and thoroughly enforce fiduciary duty
5. Further reinforce the real estate asset management business.

Overview of the Daiwa Securities Group
Company Name Daiwa Securities Group, Inc.
(Securities code: 8601)

Market Approx. 955.8 billion yen
Capitalization (as of the end of Sep. 2016) (Note 1)
No. of Employees 15,559 (as of the end of Sep. 2016, No.
of employees at the Group companies)

Commencement April 26, 1999 (Note 1)of Operations

Assets under 49.5 trillion yen
Custody (as of the end of Sep. 2016) (Note 2)

Representative Takashi Hibino, President and CEO
Director (Note 1)

No. of Shops 144 (as of the end of Sep. 2016) (Note 2)

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

No. of Cash 3,848,000 accounts
Management (as of the end of Sep. 2016) (Note 2)Service Accounts(Note 1) Daiwa Securities Group, Inc.
(Note 2) Daiwa Securities Co., Ltd.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature,nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment.

60

Competitive Edge
█ Establish highly-transparent business structure Strictly control conflicts of interest with sponsor
 Introduce financial institutions’ rigorous compliance framework
 Ensure high transparency and establish disciplined investment█ Expand network of collaboration with the Daiwa Securities Group Reduce financing costs and remarkably expand financing capacity by capitalizing on the credit capabilityof the Daiwa Securities Group Reinforce leasing activities by capitalizing on the network of the Daiwa Securities Group Improve sourcing capacity by capitalizing on the network of the Daiwa Securities Group█ Secure well-experienced, highly-professional human resources Develop team of outstanding professional staff by capitalizing on the human resources of the Daiwa

Securities Group Employ excellent human resources from outside by drawing on the Daiwa Securities Group’s brandpower
 Secure number of employees with a high level of motivation to challenge new business stages

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

61

Memorandum

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

62

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