This document was prepared based on statements made at the earnings announcement meeting held on January 21, 2022
(Friday), and should not be construed as a solicitation for investment in the Investment Corporation. Moreover, please
understand that we shall not be held liable for omissions and errors of data and phrases used in this document. Furthermore,opinions and forecasts indicated in this document is the Investment Corporation’s judgment as at the time this document wasprepared. No assurances or promises can be given regarding the accuracy and certainty of this information, and it can be
modified without prior notice.

Main Q&As at the 32nd Fiscal Period Earnings Announcement

Date and Time: 15:30-16:10, January 21, 2022 (Friday)
Presenter: Toshio Fukushima/President and Representative Director
Daiwa Real Estate Asset Management Co. Ltd.
*Questions are presented in sequential order.
Q1. Could you elaborate on the cost effectiveness of attracting tenants by taking advantage offurnished offices at Daiwa Akasaka, one of the properties subject to leasing improvement inthe fiscal period ended November 2021? Do you have any plans to equip other portfoliobuildings with furnished offices?
(Answer)
As a result of equipping Daiwa Akasaka with furnished offices, the rent for a new lease contract
increased by approximately 40% from that for the previous tenant. According to the calculation solely
based on the rent increase, we anticipate that the cost of this project will be recovered in around sevenyears.
We decided to offer furnished offices presuming that leasing the first floor of the building would be
relatively difficult. Considering the associated risks and revenue, we would like to lease other floors
without furnishings. At the moment, we are aware that there is no other section that needs to beequipped with furnished offices.
However, this project made us realize that there is strong market demand for furnished offices. Goingforward, we may consider it as an option for our leasing policy.
Q2. What are your policies on the future sale, etc. of properties of older building age?
(Answer)
Our portfolio replacement strategies are specific to each property. The replacement for Kandasudacho
2-Chome Development Project, announced on October 20, 2021, was implemented to improve thequality of portfolio such as rejuvenating the portfolio in terms of building age. We will continue to makedecisions specific to each property, based on a comprehensive judgement on whether the policy brings
value to our unitholders.

1Q3. You mentioned that demand has been on a recovery track in the office market since lastsummer. Do you consider it as a sustainable trend? In particular, what is your take on the viewthat demand for large buildings is weak? Furthermore, many office REITs report lower-thanexpected occupancy rates recently. What are your views on the risk of future occupancy rate
decrease?
(Answer)
Daiwa Office Investment Corporation’s portfolio is characterized by a large number of B Class buildings
and concentration in five central wards of Tokyo, which is the main reason for our success. We see
robust demand at least for our portfolio.
With regard to relatively large-scale buildings and sections, we have successfully attracted a tenant toa 1,000-tsubo section in Shinjuku Maynds Tower, and some companies are improving businessperformance even under the COVID-19 pandemic. We therefore continue to expect a certain level ofdemand for large sections.
In future management, we consider it important to not only find and respond to demand but also makethe right decisions on the timing, such as when to implement what strategies, taking into account thestatus of the overall portfolio.
Q4. How do you think the U.S. monetary tightening will impact Japan’s real estate transaction
market?
(Answer)
While the impact depends on the period affected by the policy and how we factor it in, interest rates do
not seem to be increasing in Japan for the time being. This has given us an optimistic view that there
will be no significant impact on Japan’s real estate market. In addition, our sentiment is that borrowings
have returned to the levels seen before the COVID-19 pandemic, with the upward pressure on interest
rates since the beginning of the pandemic being eased. On the whole, we do not see any significant
impact at the moment.
Q5. With regard to “32nd Fiscal Period Contract Renewal Tenants” on page 15 of the presentationmaterial, what is your future outlook on the expected rates of contract renewal with increased
rent?
(Answer)
The rate was around 50% three to four fiscal periods ago, when we were enjoying a relatively strong
business performance. It would take a substantial period of time for the rate to return to that level. Until
then, we will navigate the situation with the rate moving around 6.5%, the level for the 32nd Fiscal
Period, or 14.8%, that for the 31st Fiscal Period.
Q6. You mentioned that you were able to conclude a lease contract for Daiwa Akasaka with anincreased rent through leasing improvement measures in the fiscal period ended November22021. Would it be possible to increase the rent for future contracts as well?
(Answer)
We were able to lease Daiwa Akasaka with an increased rent, thanks to the furnished offices introduced
as part of leasing improvement measures for the 32nd Fiscal Period. On the other hand, an uphill battle
was expected, as explained in the presentation for the 31st Fiscal Period.
Going forward, our leasing policy will be to maintain the rent level. However, the lease contract foranother section is expected to be cancelled in the current fiscal period, and we may need to prioritize
occupancy to some degree. In that case, we will proceed with the leasing in light of the occupancy
status of the overall portfolio.
Q7. What is the leasing status of the Nihonbashi Bakurocho 1-Chome Development Project?
(Answer)
December 2021 saw the completion of property pamphlet and property website and the start of leasing
activities. We are advertising the property through brokers and have received inquiries from multiple
companies, although we cannot disclose a specific name yet.
Q8. In “Assumptions for the Management Status Forecasts for the 33rd Fiscal Period and 34thFiscal Period” on page 8 of the Financial Report, tax and dues (fixed property tax, city planningtax, etc.) in operating expenses are expected to be 1,144 million yen in the 33rd Fiscal Period
and 1,172 million yen in the 34th Fiscal Period. What is the reason for the increase ofapproximately 28 million yen?
(Answer)
We have been conservative in expecting a reassessment of the value for fixed property tax. While thevalue remained unchanged last year due to the COVID-19 pandemic, a reassessment may take placein the future. To be on the safe side, the possibility is incorporated in the forecast.
Q9. Your GRESB Real Estate Assessment improved from 2 Star to 4 Star. What initiatives do you
think were recognized?
(Answer)
As the GRESB Real Estate Assessment currently attaches importance to the Environment component,
we enhanced initiatives to actively acquire environmental certifications, as well as to improve anddisclose environmental performance. However, we regard the 4 Star not as a product of a single
initiative, but as an achievement resulting from taking a range of actions over time.
Q10. Do you plan to keep maintaining the distribution amount of 14,000 yen by gain on sale orreversing internal reserves, until you can distribute 14,000 yen without including gain on sale?
What are the conditions for distributing 14,000 yen or more?
(Answer)
We are expecting stable cash flows from the two properties developed (Nihonbashi Bakurocho 1-3

Chome Development Project and Kandasudacho 2-Chome Development Project) in about three years.
Until then, we plan to keep distributing 14,000 yen by reversing internal reserves, in principle. This policy
is to remain in place, unless there is a significant change in the market environment.
Gain on sale from the properties sold to acquire the two properties will be used as resource to reverse
internal reserves. When the management of these two properties gets on track, we believe that we will
be able to distribute more than 14,000 yen without reversing internal reserves.

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