February 8, 2019
For Immediate Release
Investment Corporation:
Daiwa House REIT Investment Corporation
2-4-8, Nagatacho, Chiyoda-ku, Tokyo
Jiro Kawanishi, Executive Director(TSE Code: 8984)
Asset Manager:
Daiwa House Asset Management Co., Ltd.
Koichi Tsuchida, President and CEO
Inquiries:
Haruto Tsukamoto, Director and CFO
TEL. +81-3-3595-1265

Notice Concerning Acquisition and Leasing of Trust Beneficiary Interests
in Domestic Real Estate
Daiwa House REIT Investment Corporation (“DHR”) hereby announces the decision made today by Daiwa House AssetManagement Co., Ltd. (the “Asset Manager”), the asset manager to which DHR entrusts the management of its assets, for
DHR to acquire and lease the following assets (the “Anticipated Acquisitions”) as described below.
The decision to acquire the Anticipated Acquisitions has been approved by the board of directors of DHR based on the Act
on Investment Trust and Investment Corporations (Act No. 198 of 1951, as amended, the “Investment Trust Act”) and theAsset Manager’s voluntary rules concerning conflict of interest.

1.

Acquisition and leasing overview(1) Anticipated Acquisitions
AnticipatedAppraisal
Anticipated acquisition
NOI
Property Real estate in trust Asset
value
Location
date ofprice
yield
Sellernumber (Property name)class(million yen)acquisition (million yen)
(Note 3)(Note 2)
(Note 1)
D Project
Hachioji City,
April 5,
DH Development
LB-057
Logistics
4,300
4,360
4.8%
Kitahachioji I
Tokyo
2019
II Godo Kaisha
D Project
Hachioji City,
April 5,
DH Development
LB-058Logistics
5,700
5,760
4.8%
Kitahachioji II
Tokyo
2019
II Godo Kaisha
D Project
Hachioji City,
April 5,
DH Development
LB-059Logistics
7,300
7,450
4.8%
Kitahachioji III
Tokyo
2019
II Godo Kaisha
D Project Itabashi
Itabashi Ward,
April 10,
Daiwa House
LB-060Logistics
12,30012,400
4.3%
Shingashi
Tokyo
2019
Industry Co., Ltd.
D Project
Sagamihara
April 10,
Daiwa House
LB-061
Logistics
3,900
3,940
4.5%
Sagamihara
City, Kanagawa
2019
Industry Co., Ltd.
D Project
Kuki City,
April 10,
Daiwa House
LB-062
Logistics
6,100
6,110
4.8%
Kuki VIII
Saitama
2019
Industry Co., Ltd.
D Project
Yokkaichi City, April 10,
Daiwa House
LB-063
Logistics
1,490
1,500
5.3%
Yokkaichi
Mie
2019
Industry Co., Ltd.
D Project
Ishioka City,
April 10,
Daiwa House
LB-064
Logistics
4,050
4,090
5.3%
Ibaraki Ishioka
Ibaraki
2019
Industry Co., Ltd.
iias Tsukuba(30% coTsukuba City,
April 5,
Daiwa House
RM-012Retail10,320
10,320
5.4%
ownership
Ibaraki
2019
Industry Co., Ltd.
interest)

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
-1-AnticipatedAppraisal
Anticipated acquisition
NOI
value
date ofpriceyield(million yen)acquisition (million yen)
(Note 3)(Note 2)
(Note 1)

Property Real estate in trust
number (Property name)

Asset
class

Location

Aoyama Tailor
RR-007 Bunkyo Sengoku
Ekimae Store

RetailBunkyo Ward,Tokyo

April 5,
2019

750

762

4.9%

Daiwa House
Industry Co., Ltd.

RR-008 FOLEO Shobu

RetailKuki City,
SaitamaApril 5,
2019

5,000

5,050

5.5%

Daiwa House
Industry Co., Ltd.

Nagoya City,
Aichi

April 5,
2019

4,500

4,540

4.5%

Nihon Jyutaku
Ryutu Co., Ltd.

Ota Ward,
Tokyo

March 12,
2019

1,380

1,380

4.4%

Daiwa House
Industry Co., Ltd

67,09067,662

4.8%－

Daiwa Roynet
Hotel Nagoya
HO-003
Hotel
Shinkansenguchi(Note 4)
Nursery Room
Berry Bear Omori
Other
OT-005 Nishi Welcia Ota
asset
Omori Nishi Store(Note 5)
Total / Average

Seller(Note 1) Excluding such amounts as expenses related to acquisition, amounts equivalent to reimbursement of taxes and dues, etc., and amount equivalent to
consumption taxes.
(Note 2) Appraisal value as of December 31, 2018.
(Note 3) “NOI yield” is represented by a figure calculated by dividing the stabilized net operating income, calculated by deducting operating expenses fromoperating income based on a direct capitalization method, as stated in the appraisal report (as of December 31, 2018), by an anticipated acquisition
price. Average is calculated by weighted average based on anticipated acquisition price.
(Note 4) Regarding Daiwa Roynet Hotel Nagoya Shinkansenguchi, as of the date of this document, no purchase agreement has been entered into between
DHR and the seller; however, a letter of intent (the “Letter of Intent for acquisition of the property”) has been entered into among DHR, the AssetManager and the seller. DHR will, based on the Letter of Intent for acquisition of the property, acquire the property after separately concluding apurchase agreement describing transaction details.
(Note 5) The tenant of the child day-care facility at Nursery Room Berry Bear Omori Nishi Welcia Ota Omori Nishi Store is currently seeking necessary
approval to operate the child day-care facility so that the approval can be obtained by March 31, 2019. Under the purchase agreement of the property,
DHR has a right to terminate the purchase agreement if the tenant cannot obtain the approval by March 31, 2019.

(2) (Anticipated) execution date of thepurchase agreements(3) Planned date of acquisition(4) Seller(5) Acquisition funds(6) Method of settlement(7) Sum total for annual rent (Note 2）(8) Sum total for tenant leasehold and security
deposits (Note 3)： Please refer to below “8. Acquisition schedule”： Please refer to above table (1) “Anticipated date of acquisition”： Please refer to below “4. Seller profile”： Proceeds from issuance of new investment units, debt financing
and cash reserves (Note 1)： Payment of entire amount upon transfer： 3,764 million yen： 2,400 million yen(Note 1) Please refer to the press releases “Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units” and “ NoticeConcerning Debt Financing and Refinancing” dated today.
(Note 2) “Annual rent” means the amount calculated by multiplying the monthly rent of the building (excluding consumption taxes) as indicated in respective
lease agreement or lease reservation agreement in relation to each property in trust as of November 30, 2018 by 12 on an annual basis (as to properties
in trust for which multiple lease agreements or lease reservation agreements are entered into, the total amount indicated in such lease agreements orlease reservation agreements). If a pass-through type master lease agreement is or is scheduled to be entered into, the annual rent is the amountcalculated by multiplying the monthly rent (excluding consumption taxes) as indicated in each sublease agreement in relation to each property intrust as of November 30, 2018 by 12 on an annual basis (as to properties in trust for which multiple sublease agreements are entered into, the total
amount indicated in such sublease agreements). Regarding sales commission rent, it refers to the monthly sales commission rent linked to the salesof November 2018. In the cases of each co-owned real estate or quasi co-owned trust beneficiary interests, the annual rent of the entire real estate
multiplied by the ratio of co-ownership of the real estate or quasi co-ownership of the trust beneficiary interests in real estate held by DHR is provided.
However, as a new sublease type master lease agreement for iias Tsukuba and an amended sublease type master lease agreement for FOLEO Shobu
are scheduled to be executed, it is calculated based on the assumption that these master lease agreements were effective as of November 30, 2018.
Also, for Daiwa Roynet Hotel Nagoya Shinkansenguchi, as a memorandum of understanding to amend the lease agreement which will become
effective upon DHR’s acquisition, it is calculated based on the assumption that the memorandum of undestanding was effective as of November 30,
2018. Under the “pass-through type master lease agreement” rent and other fees are collected directly from end tenants in principle and rents arereceived only when subleasing actually takes place. Meanwhile, under the “sublease type master lease agreement”, a certain guaranteed amount ofrent is received regardless of any fluctuation in received rents.
(Note 3) “Tenant leasehold and security deposits” means the amount calculated based on the leasehold and security deposits indicated in respective leaseagreement or lease reservation agreement in relation to each property in trust as of November 30, 2018 (as to properties in trust for which multiple
lease agreements or lease reservation agreements are entered into, the total amount indicated in such lease agreements or lease reservationagreements). If a pass-through type master lease agreement is or is scheduled to be entered into, leasehold and security deposits are those indicatedDisclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
-2-

in the sublease agreements of end-tenants as of November 30, 2018 (as to properties in trust for which multiple sublease agreements are entered into,
the total amount indicated in such sublease agreements). Meanwhile, leasehold and security deposits that do not need to be returned to the tenantpursuant to the lease agreements or lease reservation agreements are excluded from this calculation.

2. Rationale for acquisition and leasing
Based on the targets and policies prescribed in DHR’s Articles of Incorporation, the Asset Manager decided for DHR toacquire and lease the Anticipated Acquisitions having deemed that the acquisition would expand the asset size, further
increase the stability of cash flow through increased portfolio diversification and secure stable revenues in the long term. Allof the Anticipated Acquisitions will be through the pipeline of Daiwa House Group.
For the details of the Anticipated Acquisitions, please see “3. Details of the Anticipated Acquisitions”.
Furthermore, the tenants of the Anticipated Acquisitions are deemed to comply with the tenant selection standards stipulated
in the “Report on Operating Systems, etc. of Issuers of Real Estate Investment Trust Securities, etc.” (in Japanese only)
submitted on November 21, 2018 for DHR.
3.

Details of the Anticipated Acquisitions

The following tables provide an overview of the trust beneficiary interests in real estate that are the Anticipated Acquisitions.
Furthermore, unless otherwise stated, descriptions in each column in the “Property number”, “Asset class”, “Type,”“Anticipated date of acquisition”, “Anticipated acquisition price”, “Overview of specified asset”, “Overview of building
condition evaluation”, “Designer, structural designer, contractor and inspection agency”, “Overview of leasing”, “Special
items” and “Property characteristics” for each property indicated below are prepared in accordance with the following
definitions, and are based on the information available as of November 30, 2018.
・“Property number” is numbered to each property owned under each asset class. “L” means logistics properties, “RE”
means residential properties, “R” means retail properties, “HO” means hotel properties and “OT” means other assets.
“LB” means built-to-suit type logistics properties, “LM” means multi-tenant type logistics properties, “RR” means
roadside type retail properties, “RM” means mall type retail properties and “RU” means urban type retail properties.
・“Asset class” shows the asset class categories under our portfolio composition, either a logistic property, residential
property, retail property, hotel property or other asset. For other assets, specific use is indicated in brackets.
・“Type” shows the type of respective uses as follows for respective Anticipated Acquisitions in accordance with types ofinvestment destination based on the DHR’s investment policy.
＜Logistics properties＞
Type
BTS (Build-to-suit) typeMulti-tenant type
Logistics properties customized to tenant Logistics properties located on sites suitable to the
Description needs, while maintaining general versatility to logistics needs of various businesses with optimal
accommodate successor tenants in the future scale, grade and facilities for their respective site
＜Residential properties＞
Type
Description(Note)

Compact

FamilyResidences with dedicated area of 60 m2 or
Residences with dedicated area of more than 60 m2
less

A ratio described in parentheses shows “a ratio of units” which is the ratio of the units leased by type to the total number of units for lease(excluding for retail and other non residential uses) and rounded to the nearest tenth. Therefore, the sum may not add up to 100%.

＜Retail properties＞
Type
Mall type
Roadside type
Urban type
Enclosed (Note 1) or open Single retail properties or retail Retail properties located nearmalls (Note 2) located along a complexes
consistingof terminal stations or in popular
Description main highway or residential independent stores located along urban districts
roada main highway or residential
road(Note 1) Enclosed malls are shopping malls that contain all stores in a single building around an air-conditioned mall center.
(Note 2) Open malls are open-air shopping malls, including malls covered by a canopy top, that connect stores outside of a building.

・“Anticipated date of acquisition” shows the planned date of acquisition of the respective Anticipated Acquisitions indicatedDisclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
-3-

in the purchase agreements or the Letter of Intent for acquisition of the property regarding the relevant acquisition, butsuch a date may be changed by mutual consent between DHR and the seller.
・“Anticipated acquisition price” shows the transaction price (excluding such amounts as expenses related to acquisition,amount equivalent to reimbursement of taxes and dues, etc., and amount equivalent to consumption taxes) of therespective Anticipated Acquisitions indicated in the purchase agreements or the Letter of Intent for acquisition of theproperty regarding the relevant acquisition.
・“Trustee” is the trustee or the party that is scheduled to become the trustee of the respective Anticipated Acquisitions.
・“Trust maturity date” shows the trust maturity date for respective Anticipated Acquisitions defined in the trust agreement
which is scheduled to have teeth when DHR acquires.
・“Lot number” for location is the lot number as indicated in the register (only one location is indicated for properties thathave several location), and “Residence indication” for location is the residence indication of the each property in trust as
indicated in the register (for each property in trust without residence indication, the location of the building is as indicatedin the register (only one location is indicated for properties that have several location)).
・“Type of ownership” for the land and building indicates, for each of the Anticipated Acquisitions, the kind of rights heldby the trustee or to be held by a party that is scheduled to become a trustee subject to a trust agreement which is scheduled
to have teeth when DHR acquires.
・“Land area” is based on the descriptions in the registry, and may not match the present status.
・“Area classification” for the land indicates the type of zoning district depicted in Article 8, Paragraph 1, Item 1 of the City
Planning Act (Act No. 100 of 1968, as amended) or the type of urban district classification depicted in Article 7 of theCity Planning Act.
・“Building coverage ratio” for the land is the ratio of the building area of the building to the site area as stipulated in Article
53 of the Building Standards Act (Act No.201 of 1950, as amended) and is the maximum figure of the building coverage
ratio determined by city planning in accordance with the zoning, etc. (designated building coverage ratio). Designatedbuilding coverage ratios may be relaxed / increased, or decreased, since the building is a fireproof building in a fire
prevention district, or for other reasons. Therefore it may differ from the actual building coverage ratio to be applied.
・“Floor area ratio (FAR)” for the land is the ratio of the total floor area of the building to the site area as stipulated in Article
52 of the Building Standards Act and is maximum figure of the floor area ratio determined by city planning in accordancewith the zoning, etc. (designated floor area ratio). Designated floor area ratios may be relaxed / increased, or decreased,since the width of the road adjacent to the site, or for other reasons. Therefore it may differ from actual floor area ratio tobe applied.
・“Gross floor area” for the building is the sum total of the floor area recorded in the registry, excluding the areas of annex
buildings, and may not match the present status.
・“Use” for the building shows the primary category described in the registry, and may not match the present status.
・“Structure” and “Number of floors” for the building are based on the descriptions in the registry, and excludes annex
buildings.
・“Date of construction” for the building is the date of construction in the property registry of the main building.
・“Collateral” indicates the outline of the collateral for the respective Anticipated Acquisitions, if there is set collateral or
there is collateral scheduled to be borne by DHR after the acquisition.
・“Overview of building condition evaluation” is based on the descriptions in the engineering report prepared for therespective Anticipated Acquisitions.
・“Evaluation date” shows the date when the building condition evaluation report surveyed and prepared by the evaluationcompanies was prepared.
・“PML” represents the probable maximum loss from an earthquake as being the amount of probable loss of damage that
may result from an earthquake having 0.21% annual exceedance probability (475-year return period) expressed as apercentage (%) of the replacement cost. (Note)(Note) Replacement cost: Expenses that will be incurred if the existing building is to be newly constructed at the time investigation.

・“Designer, structural designer, contractor and inspection agency” is based on the descriptions in the applications forbuilding verification and applications for approval to change etc. for the Anticipated Acquisitions, and is described as thenames of the companies at the time.
・“Overview of leasing” shows the content of respective lease agreements or lease reservation agreements as of November
30, 2018 for respective property in trust regarding the respective Anticipated Acquisitions. The items “Contract form”,“Contract period”, “Rent revision”, “Contract renewal” and “Early cancellation” are filled with the information about key
tenants (of which leased area exceeds 50% of the leasable area of the whole building) for the portfolio assets. In the eventthat a pass-through type master lease agreement has been executed for each property in trust, the terms of a subleaseagreement executed between a master lease company and a key end tenant. “Leased area (ratio to total leasable area)” isindicated only when there is more than one tenant (end tenant)”.
・“Leasable area” is the leasable area of the building (of the land, for land with leasehold interest properties) for each property
in trust, and indicates the area which DHR recognizes to be leasable based on the lease agreements or lease reservation
Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
-4-

agreements or building drawings or other documents for the respective property in trust as of November 30, 2018.
・“Leased area” shows the leased area indicated in respective lease agreements or lease reservation agreements as ofNovember 30, 2018 for respective property in trust regarding the respective Anticipated Acquisitions. However, if there
is a master lease agreement or a planned master lease agreement concluded with the sublessee, it shows the leased areaof end-tenants indicated in respective sublease agreements as of November 30, 2018 for respective property in trust
regarding the respective Anticipated Acquisitions. Furthermore, as the respective lease agreements or lease reservationagreements may indicate leased area that includes portions not included in the gross floor area, the leased area may exceed
the gross floor area. In particular, if eaves are included in the leased area for logistics facilities, the leased area may
significantly surpass the gross floor area.
・“Occupancy rate” is the ratio of leased floor area to leasable floor area.
・“Number of leasable units” is the number of units of residential property that is leasable as of November 30, 2018.
・“Number of tenants” indicates the number of tenants for each property of the Anticipated Acquisitions based on the leaseagreements or lease reservation agreements, etc. as of November 30, 2018. However, “Number of tenants” enters thenumber of tenants as 1 if there is a master lease agreement or a planned master lease agreement concluded with thesublessee.
・“Annual rent” means the amount calculated by multiplying the monthly rent (excluding consumption taxes) of the building
as indicated in respective lease agreement or lease reservation agreement in relation to each property in trust as ofNovember 30, 2018 by 12 on an annual basis (as to properties in trust for which multiple lease agreements or leasereservation agreements are entered into, the total amount indicated in such lease agreements or lease reservationagreements). If a pass-through type master lease agreement is or is scheduled to be entered into, the annual rent is theamount calculated by multiplying the monthly rent (excluding consumption taxes) as indicated in each subleaseagreement in relation to each property in trust as of November 30, 2018 by 12 on an annual basis (as to properties in trust
for which multiple sublease agreements are entered into, the total amount indicated in such sublease agreements).
Regarding sales commission rent, it uses the monthly sales commission rent linked to the sales of November 2018.
・“Tenant leasehold and security deposits” means the amount calculated based on the leasehold and security deposits
indicated in respective lease agreement or lease reservation agreement in relation to each property in trust as of November
30, 2018 (as to properties in trust for which multiple lease agreements or lease reservation agreements are entered into,
the total amount indicated in such lease agreements or lease reservation agreements). If a pass-through type master leaseagreement is or is scheduled to be entered into, leasehold and security deposits are those indicated in the subleaseagreements of end-tenants as of November 30, 2018 (as to properties in trust for which multiple sublease agreements areentered into, the total amount indicated in such sublease agreements). Meanwhile, leasehold and security deposits that do
not need to be returned to the tenant pursuant to the lease agreements or lease reservation agreements are excluded fromthis calculation.
・“Lease term” indicates what is specified in the respective lease agreements or lease reservation agreements as of November
30, 2018 for each property in trust (or, the respective sublease agreements as of November 30, 2018, for each property intrust, in the event that a pass-through type master lease agreement has been executed or is to be executed with a master
lease company). “Average lease term” indicates a weighted average of the lease term under the respective leaseagreements or lease reservation agreements with the annual rent specified in the relevant agreements, respectively.
・“Remaining lease term” indicates the period from the respective anticipated date of acquisition to the expiration of thelease term specified in the respective lease agreements or lease reservation agreements as of November 30, 2018 for each
property in trust (or the respective sublease agreements as of November 30, 2018 for each property in trust, in the eventthat a pass-through type master lease agreement has been executed or is to be executed with a master lease company).
“Average remaining lease term” indicates a weighted average of the remaining lease term under the respective leaseagreements or lease reservation agreements with the annual rent specified in the relevant agreements, respectively.
・“Master lease company” is the lessee that has a blanket lease agreement concluded or scheduled to be concluded with thetrustee for the purpose of re-letting to third parties.
・“Master lease type” shows either a “pass-through type” for those master lease agreements that DHR receives rents as-is,
and “sublease type” for those master lease agreements that DHR receives a fixed amount of rent irrespective of the actual
rent paid by the end-tenants. For a “pass-through type” DHR is entitled to receive rents when it is actually leased to an
end-tenant.
・“Property management company” indicates the property management company consigned or scheduled to be consignedwith property management services for respective property in trust.
・“Contract period” shows the contract period indicated in respective lease agreements or lease reservation agreements as ofNovember 30, 2018 for respective property in trust.
・“Other leases” shows the content of respective contract concerning installation of solar power generation system for the
purpose of leasing the roof top, etc. on each property in trust entered into or scheduled to be entered into when acquiredby DHR.
・“Special items” presents matters recognized to be of importance in terms of the rights, use, etc. of respective Anticipated
Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
-5-Acquisitions, as well as matters recognized to be of importance in consideration of the degree of impact on the appraisedvalue, profitability and appropriation of assets, including the following matters:(i) significant limitations or restrictions by laws, ordinances, rules and regulations,(ii) significant burdens or limitations pertaining to rights, etc.,(iii) significant cases where there are building, etc. crossing the boundaries of respective Anticipated Acquisitions
without arrangements and cases where there are issues with boundary confirmation, etc.; and(iv) significant agreements, arrangements, etc. made with co-owners or condominium unit owners.
・ “Property characteristics” of logistic properties, retail properties, hotel properties and other assets shows the major items,
including the fundamental nature, characteristics, and special features of the located area of the respective AnticipatedAcquisitions stated in the respective evaluation reports for the respective Anticipated Acquisitions prepared by CBRE
K.K., BAC Urban Projects Co., Ltd., Jones Lang LaSalle IP, Inc. or Japan Hotel Appraisal Co., Ltd. consigned from DHRof their evaluation. The evaluation of the respective Anticipated Acquisitions represents the judgment and opinion of theevaluation company, and does not guarantee the appropriateness and correctness of the statements.

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
-6-

Property number
LB-057
Anticipateddate of acquisition

Asset class
Type
Anticipated
April 5, 2019acquisition priceOverview of specified asset
Type of specified asset
Trust beneficiary interest in real estate
Mitsubishi UFJ Trust andTrustee
Trust maturity dateBanking Corporation
Lot number
2969-2, Ishikawamachi, Hachioji City, Tokyo
Location Residence
2969-2, Ishikawamachi, Hachioji City, Tokyo
indication
Type ofType ofOwnershipownershipownership
Gross floor
Land area
8,265.01m2
area
Exclusive industrial
Land
Area classification
Use
district
Building
Building coverage
60%
Structure
ratio
Number ofFAR
200%
floorsDate of
CollateralNone
construction
Overview of building condition evaluation
Evaluation company
Tokio Marine & Nichido Risk Consulting Co., Ltd.
Urgent repair costs
0 thousand yen
Evaluation date
Short-term repair costs
0 thousand yen
PMLLong-term repair costs
126,891 thousand yen / 12 years
Designer, structural designer, contractor, inspection agency
Designer
Daiwa House Industry Co., Ltd.
Structural designer
Daiwa House Industry Co., Ltd.
Contractor
Daiwa House Industry Co., Ltd.
Inspection agency
Houseplus Architectural Inspection Inc.
Structural calculation
evaluation agency
Overview of leasing
2
Leasable area
16,523.82m
Number of tenants
2
Leased area
16,523.82m
Annual rent
Tenant leasehold
Occupancy rate
100.0%and security deposit
Lease term
15.0 years
Remaining lease term
Master lease company
Master lease type
D Project Kitahachioji I

Property management company
LesseeContract form
Contract period
Rent revision
Contract renewal

Logistics
BTS (Build-to-suit) type4,300 million yen

April 30, 2039

Ownership
15,352.34 m2
Warehouse, office
Reinforced concrete andsteel-frame building
5F
February 28, 2011

January 2019
5.1%

1
Not disclosed (Note)
Not disclosed (Note)
7.0 years

Daiwa House Property Management Co., Ltd.
Sanritsu Corporation
Building lease agreement
From April 1, 2011 to March 31, 2026
Rent may be revised every five years from the commencement date of the leaseagreement upon consultation between the lessor and the lessee.
There is no agreement on any renewal of the lease agreement.

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
-7-

The lease agreement may not be cancelled during the lease period. However, the lessee
may cancel the lease agreement if it notifies the lessor in writing by at least six months
prior to the date of cancellation and makes a lump-sum payment of a prescribed amount
Early cancellationof penalty fees by the end of the month containing the date of cancellation; however, no
penalty fees for cancellation will be imposed when the lessee introduces an alternative
lessee and the lease agreement is renewed to such alternative lessee under the same termswith the previous agreement or under the terms that satisfy the lessor.
Special items
Some findings are pointed out in the report on building condition evaluation, etc., and DHR has agreed with the seller thatsuch findings shall be rectified at the responsibility and expense of the seller before the acquisition by DHR.
Property characteristics
 Location
The property is located in Hachioji city, which is situated in the southwest part of Tokyo, with good access to central Tokyo
within a radius of 40 km. Across the city, JR Chuo Line and Keio Takao Line run in an east-west direction, while JR
Yokohama Line and Hachiko Line in a north-south direction. Also, the transportation infrastructure in the city is welldeveloped from which the expressway network is accessible via Hachioji IC on the Chuo Expressway and across which
National Routes 16 and 20, both arterial roads, are running. Hachioji is currently one of the satellite cities in the Tokyo
metropolitan area and continues developing as a hub city in the Tama area and commuter town for central Tokyo.
This property is located approximately 1.3km and 2.1km from National Route 20 and a loop line National Route 16,
respectively, which allows it to function as a hub for not only the Tama area with the growing population, but also Saitama,
as well as central Tokyo via National Route 20. Accessibility to the expressway network via Hachioji IC on the Chuo
Expressway (approximately 1.8km distance) supports a function as a hub for extensive logistics covering the Tokyo
Metropolitan area and provides good access to the mass-consumption area. The reach of delivery network has been
expanding recently thanks to the opening of the Ken-O Expressway. It is an area which can expect further accessibility to
Hachioji IC due to Tokyo Metropolitan Government’s city planning in 2019.
This property is located within the Kitahachioji industrial complex, in an area containing a number of large-scale logistics
facilities available 24 hours with low-potential for complaints from local residents. It has some advantages in hiring
employees as the property is located within walking distance of the nearest station, Kita-Hachioji Station on the JR HachikoLine (approximately 1.0km) and is adjacent to a bus stop.
 Specification
It is a five-story (four-story for the warehouse section) logistics facility with gross floor area of approximately 4,644
tsubo, leased to a logistics company. As basic specifications, the property has the ceiling height of 8.48m (1F), 6.66m(3~4F) and 5.3m (5F), floor weight capacity of 1.8t/m2 (1F), 1.5t/m2 (3~4F) and 1.2t/m2 (5F), and pillar interval spacingof 10.2m by 9.2m, which offer versatility for tenants with various business needs.
Three cargo elevators provide sufficient internal carriage capacity, while the low-floor track berths on one side of 1F into
which trucks can be parked offer efficient operation. There are 63 parking spaces for passenger cars and 3 spaces for
unloading, sufficient for the size of the property.
(Note) Not disclosed as consent for disclosure has not been obtained from the lessee.

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
-8-

Property number
LB-058
Anticipateddate of acquisition

Asset class
Type
Anticipated
April 5, 2019acquisition priceOverview of specified asset
Type of specified asset
Trust beneficiary interest in real estate
Mitsubishi UFJ Trust andTrustee
Trust maturity dateBanking Corporation
Lot number
2969-18, Ishikawamachi, Hachioji City, Tokyo
Location Residence
2969-18, Ishikawamachi, Hachioji City, Tokyo
indication
Type ofType ofOwnershipownershipownership
Gross floor
Land area
12,216.12 m2
area
Exclusive industrial
Area classification
Use
Land
district
Building
Building coverage
60% (Note 1)
Structure
ratio
FAR
Collateral
Evaluation company
Urgent repair costs
Short-term repair costs
Long-term repair costs
Designer
Structural designer
Contractor
Inspection agency
Structural calculation
evaluation agency

D Project Kitahachioji II

Number offloorsDate ofNone
construction
Overview of building condition evaluation
Tokio Marine & Nichido Risk Consulting Co., Ltd.
0 thousand yen
Evaluation date
0 thousand yen
PML129,089 thousand yen / 12 years
Designer, structural designer, contractor, inspection agency
Daiwa House Industry Co., Ltd.
Daiwa House Industry Co., Ltd.
Daiwa House Industry Co., Ltd.
Houseplus Architectural Inspection Inc.
200%

21,402.20 m
21,402.20 m2

Occupancy rate

100.0%

Lease term
Master lease company
Master lease type20.0 years

2

Overview of leasing
Number of tenants
Annual rent
Tenant leasehold
and security deposit
Remaining lease term-

Property management company

Rent revision
Contract renewal

5,700 million yen

April 30, 2039

Ownership
18,762.19 m2
Warehouse, office
Steel-frame, reinforced
concrete and steel-framebuilding
4F
January 11, 2012

January 2019
7.5 %

-

Leasable area
Leased area

LesseeContract form
Contract period

Logistics
BTS (Build-to-suit) type1
Not disclosed (Note 2)
Not disclosed (Note 2)
12.8 years

Daiwa House Property Management Co., Ltd.
Hutech norin Co., Ltd.
Building lease agreement
From February 1, 2012 to January 31, 2032
Rent may be revised every five years from the commencement date of the leaseagreement upon consultation between the lessor and the lessee.
There is no agreement on any renewal of the lease agreement.

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
-9-

The lease agreement may not be cancelled during the lease period. However, the lessee
may cancel the lease agreement if it notifies the lessor in writing by at least six months
prior to the date of cancellation and makes a lump-sum payment of a prescribed amount
Early cancellationof penalty fees by the end of the month containing the date of cancellation; however, no
penalty fees for cancellation will be imposed when the lessee introduces an alternative
lessee and the lease agreement is renewed to such alternative lessee under the same termswith the previous agreement or under the terms that satisfy the lessor.
Special items
Some findings are pointed out in the report on building condition evaluation, etc., and DHR has agreed with the seller thatsuch findings shall be rectified at the responsibility and expense of the seller before the acquisition by DHR.
Property characteristics
 Location
The property is located in Hachioji city, which is situated in the southwest part of Tokyo, with good access to central
Tokyo within a radius of 40 km. Across the city, JR Chuo Line and Keio Takao Line run in an east-west direction, while
JR Yokohama Line and Hachiko Line in a north-south direction. Also, the transportation infrastructure in the city is welldeveloped from which the expressway network is accessible via Hachioji IC on the Chuo Expressway and across which
National Routes 16 and 20, both arterial roads, are running. Hachioji is currently one of the satellite cities in the Tokyo
metropolitan area and continues developing as a hub city in the Tama area and commuter town for central Tokyo.
This property is located approximately 1.3km and 2.1km from National Route 20 and a loop line National Route 16,
respectively, which allows it to function as a hub for not only the Tama area with the growing population, but also Saitama,
as well as central Tokyo via National Route 20. Accessibility to the expressway network via Hachioji IC on the Chuo
Expressway (approximately 1.8km distance) supports a function as a hub for extensive logistics covering the Tokyo
Metropolitan area and provides good access to the mass-consumption area. The reach of delivery network has been
expanding recently thanks to the opening of the Ken-O Expressway. It is an area which can expect further accessibility to
Hachioji IC due to Tokyo Metropolitan Government’s city planning in 2019.
This property is located within the Kitahachioji industrial complex, in an area containing a number of large-scale logistics
facilities available 24 hours with low-potential for complaints from local residents. It has some advantages in hiring
employees as the property is located within walking distance of the nearest station, Kita-Hachioji Station on the JR
Hachiko Line (approximately 1.0km) and is adjacent to a bus stop.
 Specification
It is a four-story logistics facility with gross floor area of approximately 5,676 tsubo, leased to a low-temperature logistics
company. A large majority of the facility is consisted of a refrigerator (-5 degrees Celsius) and a freezer (-30 degrees
Celsius), and a large-sized automated warehouse is installed for part of the 2nd through 4th floors.
As basic specifications, the property has the ceiling height of 6.1m (1F), 7.2m (2~3F) and 9.2m (4F), floor weight capacityof 1.5t/m2 for each floor, and pillar interval spacing of 9.4~10.3m by 7.2~9.0m, which offer versatility for tenants withvarious business needs. One cargo elevator and six vertical carrier machines provide sufficient internal carriage capacity,while the L-shaped track berths with a dock shelter on two sides of 1F offer efficient operation. There are 51 parking
spaces for passenger cars, one parking space for the handicapped and 46 parking spaces for unloading, sufficient for thesize of the property.
(Note 1) While the building coverage ratio of the property is essentially 60%, due to application of corner lot mitigation, it is set at 70%.
(Note 2) Not disclosed as consent for disclosure has not been obtained from the lessee.

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 10 -

Property number
LB-059Anticipateddate of acquisition

Asset class
Type
Anticipated
April 5, 2019acquisition priceOverview of specified asset
Type of specified asset
Trust beneficiary interest in real estate
Mitsubishi UFJ Trust andTrustee
Trust maturity dateBanking Corporation
Lot number
2969-19, Ishikawamachi, Hachioji City, Tokyo
Location Residence
2969-19, Ishikawamachi, Hachioji City, Tokyo
indication
Type ofType ofOwnershipownershipownership
Gross floor
Land area
21,549.44m2
area
Exclusive industrial
Land
Area classification
Use
district
Building
Building coverage
60%
Structure
ratio
Number ofFAR
200%
floorsDate of
CollateralNone
construction
Overview of building condition evaluation
Evaluation company
Tokio Marine & Nichido Risk Consulting Co., Ltd.
Urgent repair costs
0 thousand yen
Evaluation date
Short-term repair costs
0 thousand yen
PMLLong-term repair costs
96,158 thousand yen / 12 years
Designer, structural designer, contractor, inspection agency
Designer
Daiwa House Industry Co., Ltd.
Structural designer
Daiwa House Industry Co., Ltd., SPAN Design LTD.
Contractor
Daiwa House Industry Co., Ltd.
Inspection agency
Tokyo Bldg-Tech Center Co., Ltd
Structural calculation
evaluation agency
Overview of leasing
2
Leasable area
26,275.05 m
Number of tenants
2
Leased area
26,275.05 m
Annual rent
Tenant leasehold
Occupancy rate
100.0%and security deposit
Average remaining lease
Average lease term
Not disclosed (Note)
term
Master lease company
Master lease type
D Project Kitahachioji III

Property management company
LesseeKey TenantsContract form
Contract period
Tenant leased area
(Ratio to leasable area)

Logistics
BTS (Build-to-suit) type7,300 million yen

April 30, 2039

Ownership
26,310.71 m2
Warehouse
Steel-frame and reinforced
concrete building
4F
June 1, 2014

January 2019
5.5%

2
Not disclosed (Note)
Not disclosed (Note)
Not disclosed (Note)

Daiwa House Property Management Co., Ltd.
Mitsubishi Shokuhin Co., Ltd., Sanritsu Corporation
Mitsubishi Shokuhin Co., Ltd.
Fixed-term building lease agreement
Not disclosed (Note)
19,380.77 m2 (73.8%)

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 11 -

Rent may be revised every five years from the commencement date of the leaseagreement, upon consultation between the lessor and the lessee.
Contract renewal
No renewal; the contract will end upon expiration of the lease period.
The lease agreement may not be cancelled during the lease period. However, the lessee
may cancel the lease agreement if it notifies the lessor in writing by at least twelve
months prior to the date of cancellation and makes a lump-sum payment of a prescribedamount of penalty fees by the end of the month containing the date of cancellation;
Early cancellation
however, no penalty fees for cancellation will be imposed when the lessee introduces analternative lessee and the lease agreement is renewed to such alternative lessee under thesame terms with the previous agreement or under the terms that satisfy the lessor, or
when the lease agreement is cancelled after a lapse of 10 years since the date of leasecommencement.
Special items
Some findings are pointed out in the report on building condition evaluation, etc., and DHR has agreed with the seller thatsuch findings shall be rectified at the responsibility and expense of the seller before the acquisition by DHR.
Property characteristics
 Location
The property is located in Hachioji city, which is situated in the southwest part of Tokyo, with good access to central Tokyo withina radius of 40 km. Across the city, JR Chuo Line and Keio Takao Line run in an east-west direction, while JR Yokohama Lineand Hachiko Line in a north-south direction. Also, the transportation infrastructure in the city is well-developed from which theexpressway network is accessible via Hachioji IC on the Chuo Expressway and across which National Routes 16 and 20, botharterial roads, are running. Hachioji is currently one of the satellite cities in the Tokyo metropolitan area and continues developing
as a hub city in the Tama area and commuter town for central Tokyo.
This property is located approximately 1.3km and 2.1km from National Route 20 and a loop line National Route 16,
respectively, which allows it to function as a hub for not only the Tama area with the growing population, but also Saitama,
as well as central Tokyo via National Route 20, with good access to the mass-consumption area. Accessibility to theexpressway network via Hachioji IC on the Chuo Expressway (approximately 1.8km distance) supports a function as a
hub for extensive logistics covering the Tokyo Metropolitan area. The reach of delivery network has been expanding
recently thanks to the opening of the Ken-O Expressway. It is an area which can expect further accessibility to Hachioji
IC due to Tokyo Metropolitan Government’s city planning in 2019.
This property is located within the Kitahachioji industrial complex, in an area containing a number of large-scale logistics
facilities available 24 hours with low-potential for complaints from local residents. It has some advantages in hiring employees
as the property is located within walking distance of the nearest station, Kita-Hachioji Station on the JR Hachiko Line(approximately 1.0km) and is adjacent to a bus stop.
 Specification
It is a four-story logistics facility (three-story for the warehouse section) with gross floor area of approximately 7,959
tsubo, leased to a food wholesaler and a logistics company. A refrigerator (5~10 degrees Celsius) is installed for a large
majority of the 1st floor, while an ordinary temperature for the 2nd through 4th floors.
As basic specifications, the property has the ceiling height of 6.7m (1F), 8.2m (2F) and 7.78m (4F), floor weight capacityof 1.5t/m2 for each floor, and pillar interval spacing of 9.0~11.0m by 10.3m, which offer versatility for tenants with various
business needs. Two cargo elevators and three vertical carrier machines provide sufficient internal carriage capacity. The
piloti-type track berths with a dock shelter, equipped for part of the L-shaped two sides of 1F, as well as the piloti-type
truck berths on the 2nd floor accessible via a slope, offer efficient operation. There are 68 parking spaces for trucks, 65
parking spaces for passenger cars, five parking spaces for minicars and one parking space for the handicapped, sufficientfor the size of the property.
Rent revision(Note) Not disclosed as consent for disclosure has not been obtained from the lessee.

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 12 -

Property number
LB-060
Anticipateddate of acquisition

Asset class
Type
Anticipated
April 10, 2019acquisition priceOverview of specified asset
Type of specified asset
Trust beneficiary interest in real estate (Note 1)
Sumitomo Mitsui Trust
Trustee
Trust maturity dateBank, Limited
Lot number
1-1118, Shingashi, Itabashi Ward, Tokyo
Location Residence
1-2-2, Shingashi, Itabashi Ward, Tokyo
indication
Type ofType ofOwnershipownershipownership
Gross floor
Land area
16,545.12m2
area
Exclusive industrial
Land
Area classification
Use
district
Building
Building coverage
60%
Structure
ratio
Number ofFAR
200%
floorsDate of
CollateralNone
construction
Overview of building condition evaluation
Evaluation company
Tokio Marine & Nichido Risk Consulting Co., Ltd.
Urgent repair costs
0 thousand yen
Evaluation date
Short-term repair costs
0 thousand yen
PMLLong-term repair costs
146,210 thousand yen / 12 years
Designer, structural designer, contractor, inspection agency
Designer
Daiwa House Industry Co., Ltd.
Structural designer
Daiwa House Industry Co., Ltd.
Contractor
Daiwa House Industry Co., Ltd.
Inspection agency
Saitama Housing Inspection Center
Structural calculation
evaluation agency
Overview of leasing
2
Leasable area
33,763.46 m
Number of tenants
2
Leased area
33,763.46 m
Annual rent
Tenant leasehold
Occupancy rate
100.0%and security deposit
Lease term
Not disclosed (Note 2)
Remaining lease term
Master lease company
Master lease type
D Project Itabashi Shingashi

Property management company
LesseeContract form
Contract period
Rent revision
Contract renewal

Logistics
BTS (Build-to-suit) type12,300 million yen

April 30, 2039

Ownership
31,094.03m2
Warehouse
Steel-frame and reinforced
concrete building
7F
December 1, 2014

January 2019
4.1 %1
Not disclosed (Note 2)
Not disclosed (Note 2)
Not disclosed (Note 2)

Daiwa House Property Management Co., Ltd.
Kokubu Group Corp.
Fixed-term building lease agreement
Not disclosed (Note 2)
Not disclosed (Note 2)
No renewal; the contract will end upon expiration of the lease period.

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 13 -

Early cancellation

The lease agreement may not be cancelled before the expiry thereof. However, the lessee
may cancel the lease agreement if it notifies the lessor in writing by at least twelve
months prior to the date of cancellation and makes a lump-sum payment of a prescribedamount of penalty fees by the end of the month containing the date of cancellation;
however, no penalty fees for cancellation will be imposed when the lessee introduces analternative lessee and the lease agreement is renewed to such alternative lessee under thesame terms with the previous agreement.
Special items

None
Property characteristics
 Location
It is a rare and our first logistics facility located in Tokyo 23 Wards for DHR to acquire, with good access to central Tokyo
via adjacent National Route 17 and other roads, offering convenience as a hub for freight collection and delivery especiallyin northern Tokyo areas. This property is also able to function as a logistics hub covering Tokyo, Saitama and other northern
metropolitan areas, with a proximity to Takashimadaira IC on the Metropolitan Expressway Route No.5 Ikebukuro Line(approximately 2.6km distance) and accessibility to the Tokyo Gaikan Expressway via Bijogi JCT.
The location in an exclusive industrial district, which is rare in Tokyo 23 Wards, is suitable for logistics facility operation
over the medium to long term.
It also has some advantages in hiring employees as the property is located within walking distance of the nearest station,
Takashimadaira Station on the Toei Subway Mita Line (approximately 12-minute walk) and Itabashi Ward where theproperty locates contains many condominiums and other residential properties.
 Specification
It is a seven-story (six-story for warehouse section) logistics facility with gross floor area of approximately 9,406 tsubo,leased to a food and liquor wholesaler operating mainly in the Tokyo Metropolitan area. A refrigerator and a freezer are
installed in some sections of the facility, as well as a dock shelter. As basic specifications, the property has the ceilingheight of 7.23m (1F), 7.8m (3F, 3.6m for some sections), 4.2m (4F), 7.2m (5F, 3.35m for some sections) and 3.85m (6F),
floor weight capacity of 1.5t/m2 (1F, 3F, 5F and 7F, 0.5t/m2 for some sections of 3F and 5F) and 0.5t/m 2 (4F and 6F), andpillar interval spacing of 11.0m by 9.5m, which offer versatility for tenants with various business needs. One cargo elevatorand eight vertical carrier machines provide sufficient internal carriage capacity, while the track berths (partially dockshelter) on three sides of 1F offer efficient operation. There are 24 and 4 parking spaces for passenger cars and guest cars,
respectively.
(Note 1) As of today, the land and the building of this property are owned by the seller and Hitachi Capital Corporation, respectively, and a fixed-term leaseholdfor business has been established for the land with Hitachi Capital Corporation set as the leaseholder for the purpose of owning the building of theproperty. DHR has agreed in the purchase agreement with the seller that, as of the same date with the acquisition date of the property, Hitachi Capital
Corporation will entrust the building and the fixed-term leasehold for business to the above trustee, and that the seller will take over the trust
beneficiary interest and, after additionally entrusting the land of the property to the trustee, will transfer such trust beneficiary interests to DHR.
Furthermore, the above fixed-term leasehold for business will cease to exist upon the additional entrustment of the land.
(Note 2) Not disclosed as consent for disclosure has not been obtained from the lessee.

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 14 -

Property number
LB-061
Anticipateddate of acquisition

Asset class
Logistics
Type
BTS (Build-to-suit) type
Anticipated
April 10, 2019
3,900 million yen
acquisition priceOverview of specified asset
Type of specified asset
Trust beneficiary interest in real estate (Note)
Sumitomo Mitsui Trust
Trustee
Trust maturity date
April 30, 2039
Bank, Limited
Lot number
1-224-325, Miyashimo, Chuo Ward, Sagamihara City, Kanagawa
Location Residence
1-2-31, Miyashimo, Chuo Ward, Sagamihara City, Kanagawa
indication
Type ofType ofOwnership
Ownershipownershipownership
Gross floor
Land area
10,909.20m2
16,577.14 m2
area
Exclusive industrial
Land
Area classification
Use
Warehouse, office
district
Building
Building coverage
60%
Structure
Steel-frame building
ratio
Number of
FAR
200%
4F
floorsDate of
Collateral
None
April 1, 2015
construction
Overview of building condition evaluation
Evaluation company
Tokio Marine & Nichido Risk Consulting Co., Ltd.
Urgent repair costs
0 thousand yen
Evaluation date
January 2019
Short-term repair costs
0 thousand yen
PML
4.2%
Long-term repair costs
86,971 thousand yen / 12 years
Designer, structural designer, contractor, inspection agency
Designer
Daiwa House Industry Co., Ltd.
Structural designer
Daiwa House Industry Co., Ltd.
Contractor
Daiwa House Industry Co., Ltd.
Inspection agency
Houseplus Architectural Inspection Inc.
Structural calculation
evaluation agency
Overview of leasing
Leasable area
16,599.30 m2
Number of tenants
1
2
Leased area
16,599.30 m
Annual rent
205,656 thousand yen
Tenant leasehold
Occupancy rate
100.0%
171,380 thousand yen
and security deposit
Lease term
20.0 years
Remaining lease term
16.0 years
Master lease company
Master lease type
D Project Sagamihara

Property management company
LesseeContract form
Contract period
Rent revision
Contract renewal

Daiwa House Property Management Co., Ltd.
Daiwa Logistics Co., Ltd.
Fixed-term building lease agreement
From April 1, 2015 to March 31, 2035
Rent shall be revised every five years from the initial date of computing the rent.
No renewal; the contract will end upon expiration of the lease period.

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 15 -

Early cancellation

The lease agreement may not be cancelled before the expiry thereof. However, the lessee
may cancel the lease agreement if it notifies the lessor in writing by at least six months
prior to the date of cancellation and makes a lump-sum payment of a prescribed amountof penalty fees by the end of the month containing the date of cancellation; however, thisdoes not apply to cases when the lessee introduces an alternative lessee and the leaseagreement is renewed to such alternative lessee.
Special items

None
Property characteristics
 Location
Sagamihara City, in which this property is located, is an ordinance-designated city situated in northern Kanagawa, and is
growing as a commuter town to Tokyo as it is located approximately 40km from central Tokyo. This property is in anadvantageous location as a hub for extensive distribution, with good access to the Tama area, Saitama and the entire Tokyo
Metropolitan area through the expressway network via Sagamihara IC on the Ken-O Expressway within distance ofapproximately 8.3km and a proximity to National Route 16, a loop line passing through the Tokyo Metropolitan area
(approximately 0.8km distance). This property, located in an exclusive industrial district, can operate 24 hours a day with
low-potential for complaints from residents. It has some advantages in hiring part-time employees as the property is locatedwithin walking distance of the nearest station, Hashimoto Station on the JR Yokohama Line and Keio Sagamihara Line(approximately 1.2km distance) and is also surrounded by an extensive residential district.
 Specification
It is a four-story logistics facility (three-story for the warehouse section) with gross floor area of approximately 5,015 tsubo,leased to a logistics company.
As basic specifications, the property has the effective ceiling height of 7.23m (1F and 3F), 6.1m (4F), floor weight capacityof 1.5t/m2 for each floor, and pillar interval spacing of 10.2m by 10.0m, which offer versatility for tenants with various
business needs. Three cargo elevators and two vertical carrier machines provide sufficient internal carriage capacity. Thereare 24 parking spaces for passenger cars, sufficient for the size of the property.
(Note) As of today, the land and the building of this property are owned by the seller and Tokyo Century Corporation, respectively, and a fixed-term leaseholdfor business has been established for the land with Tokyo Century Corporation set as the leaseholder for the purpose of owning the building of theproperty. DHR has agreed in the purchase agreement with the seller that, as of the same date with the acquisition date of the property, Tokyo Century
Corporation will entrust the building and the fixed-term leasehold for business to the above trustee, and that the seller will take over the trust
beneficiary interest and, after additionally entrusting the land of the property to the trustee, will transfer such trust beneficiary interests to DHR.
Furthermore, the above fixed-term leasehold for business will cease to exist upon the additional entrustment of the land.

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 16 -

Property number
LB-062
Anticipateddate of acquisition

Asset class
Type
Anticipated
April 10, 2019acquisition priceOverview of specified asset
Type of specified asset
Trust beneficiary interest in real estate (Note 1)
Mitsubishi UFJ Trust andTrustee
Trust maturity dateBanking Corporation
Lot number
49-3, Kiyokucho, Kuki City, Saitama
Location Residence
49-3, Kiyokucho, Kuki City, Saitama
indication
Type ofType ofOwnershipownershipownership
Gross floor
Land area
14,765.03m2
area
Land
Area classification Industrial district
Use
Building
Building coverage
60%
Structure
ratio
Number ofFAR
200%
floorsDate of
CollateralNone
construction
Overview of building condition evaluation
Evaluation company
Tokio Marine & Nichido Risk Consulting Co., Ltd.
Urgent repair costs
0 thousand yen
Evaluation date
Short-term repair costs
0 thousand yen
PMLLong-term repair costs
59,913 thousand yen / 12 years
Designer, structural designer, contractor, inspection agency
Designer
Daiwa House Industry Co., Ltd.
Structural designer
Daiwa House Industry Co., Ltd.
Contractor
Daiwa House Industry Co., Ltd.
Inspection agency
JAPAN ERI CO., LTD.
Structural calculation
evaluation agency
Overview of leasing
2
Leasable area
29,410.54 m
Number of tenants
Leased area
29,410.54 m2
Annual rent
Tenant leasehold
Occupancy rate
100.0%and security deposit
Lease term
20.0 years
Remaining lease term
Master lease company
Master lease type
D Project Kuki VIII

Property management company
LesseeContract form
Contract period
Rent revision
Contract renewal

Logistics
BTS (Build-to-suit) type6,100 million yen

April 30, 2039

Ownership
28,590.42m2
Warehouse
Steel-frame building
5F
October 1, 2016

January 20192.2%

1
Not disclosed (Note 2)
Not disclosed (Note 2)
17.5 years

Daiwa House Property Management Co., Ltd.
ESCO CO., LTD.
Fixed-term building lease agreement
From October 1, 2016 to September 30, 2036
No rent revision
No renewal; the contract will end upon expiration of the lease period.

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 17 -

If the lessee intends to cancel the lease agreement before the expiry thereof, it shall notify
the lessor in writing by at least twelve months prior to the date of cancellation and makes
a lump-sum payment of a prescribed amount of penalty fees by the end of the month
Early cancellation
containing the date of cancellation; however, this does not apply to cases when the lessee
introduces an alternative lessee and the lease agreement is renewed to such alternative
lessee.
Special items
With regard to a part of the boundaries of the land which has not yet been fixed as of this date, DHR has agreed with theseller that such boundaries shall be fixed promptly at the responsibility and expense of the seller.
Property characteristics
 Location
This property is located in Kuki City, which is situated in northeastern Saitama, within a radius of 50km from central
Tokyo. Located approximately 1.8km from National Route 122, an arterial road, the property can serve as a hub forregional delivery covering central Saitama. Also, the good access to the expressway network via Kuki IC on the Tohoku
Expressway (approximately 3.7km distance) and Shiraoka-Shobu IC on the Ken-O Expressway (approximately 4.3km
distance) enables the property to function as a hub for delivery within Saitama and over the entire Tokyo Metropolitanarea, as well as a relay point from the Tohoku region, in which a number of industrial plants are located.
The property, located in Kiyoku Industrial Complex in which logistics facilities gather, can operate 24 hours a day overthe long term with low-potential for complaints from local residents.
The property is possible to secure workforce from the surrounding residential districts as there is a bus stop within walking
distance, despite the location out of walking distance from the nearest station.
 Specification
It is a five-story logistics facility (four-story for the warehouse section) with gross floor area of approximately 8,649 tsubo,leased to an industrial product manufacturer. The structure of the property, equipped with the truck berths on one side of
1F, enables efficient delivery operation. As basic specifications, the property has the ceiling height of 7.2m (1F), 4.8m (3F
and 4F) and 4.2m (5F), floor weight capacity of 1.5t/m2 (1F) and 1.0t/m2 (3~5F), and pillar interval spacing of 11.5m by
10.0m, which offer versatility for tenants with various business needs. Four cargo elevators provide sufficient internal
carriage capacity, while there are 102 parking spaces for passenger cars, sufficient for the size of the property.
(Note 1) As of today, the land and the building of this property are owned by the seller and Hitachi Capital Corporation, respectively, and a fixed-term leaseholdfor business has been established for the land with Hitachi Capital Corporation set as the leaseholder for the purpose of owning the building of theproperty. DHR has agreed in the purchase agreement with the seller that, as of the same date with the acquisition date of the property, Hitachi Capital
Corporation will entrust the building and the fixed-term leasehold for business to the above trustee, and that the seller will take over the trust
beneficiary interest and, after additionally entrusting the land of the property to the trustee, will transfer such trust beneficiary interests to DHR.
Furthermore, the above fixed-term leasehold for business will cease to exist upon the additional entrustment of the land.
(Note 2) Not disclosed as consent for disclosure has not been obtained from the lessee.

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 18 -

Property number
LB-063
Anticipateddate of acquisition

Asset class
Type
Anticipated
April 10, 2019acquisition priceOverview of specified asset
Type of specified asset
Trust beneficiary interest in real estate (Note 1)
Sumitomo Mitsui Trust
Trustee
Trust maturity dateBank, Limited
Lot number
1947-14, Aza Hiro, Nakamuracho, Yokkaichi City, Mie
Location Residence
1947-14, Nakamuracho, Yokkaichi City, Mie
indication
Type ofType ofOwnershipownershipownership
Gross floor
Land area
8,701.04m2
area
Urbanization restricted
Land
Area classification
Use
area
Building
Building coverage
60%
Structure
ratio
Number ofFAR
200%
floorsDate of
CollateralNone
construction
Overview of building condition evaluation
Evaluation company
Tokio Marine & Nichido Risk Consulting Co., Ltd.
Urgent repair costs
0 thousand yen
Evaluation date
Short-term repair costs
0 thousand yen
PMLLong-term repair costs
16,185 thousand yen / 12 years
Designer, structural designer, contractor, inspection agency
Designer
Daiwa House Industry Co., Ltd.
Structural designer
Daiwa House Industry Co., Ltd.
Contractor
Daiwa House Industry Co., Ltd.
Inspection agency
Bureau Veritas Japan
Structural calculation
evaluation agency
Overview of leasing
2
Leasable area
6,185.46 m
Number of tenants
2
Leased area
6,185.46 m
Annual rent
Tenant leasehold
Occupancy rate
100.0%and security deposit
Lease term
Not disclosed (Note 2)
Remaining lease term
Master lease company
Master lease type
D Project Yokkaichi

Property management company
LesseeContract form
Contract period
Rent revision
Contract renewal
Early cancellation

Logistics
BTS (Build-to-suit) type1,490 million yen

April 30, 2039

Ownership
5,602.60m2
Warehouse, office
Steel-frame building
2F
December 16, 2016

January 20191.8%

1
Not disclosed (Note 2)
Not disclosed (Note 2)
Not disclosed (Note 2)

Daiwa House Property Management Co., Ltd.
KINTETSU LOGISTICS SYSTEMS, INC.

Not disclosed (Note 2)

Special items
Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 19 -

Some findings are pointed out in the report on building condition evaluation, etc., and DHR has agreed with the seller thatsuch findings shall be rectified at the responsibility and expense of the seller before the acquisition by DHR.
Property characteristics
 Location
This property is located in Yokkaichi City, which is situated within a 40km radius from central Nagoya and has a good
railway access to the Chubu (greater Nagoya) and Kinki (greater Osaka) areas via the Kintetsu Nagoya Line and the JR
Central Kansai Main Line.
This property can serve as a hub for a network of regional delivery, as well as the network covering central Nagoya, via generalroads of National Routes 1 and 23. Also, proximity to Yokkaichi Higashi IC on the Higashi-Meihan Expressway provides a goodaccess to the expressway network, leading to extensive delivery network covering the entire Chubu (greater Nagoya) and Kinki(greater Osaka) areas.
The property, located in an area with a large cluster of logistics facilities, can operate 24 hours a day over the long termwith low-potential for complaints from local residents. The property is possible to secure workforce as it is located withinwalking distance from the nearest station, Heizu Station on the Sangi Line (approximately 1.0km distance).
 Specification
It is a two-story facility with gross floor area of approximately 1,695 tsubo, leased to a logistics company. As basic
specifications, the property has the ceiling height of 6.6m (1F) and 4.73~5.13m (2F), floor weight capacity of 1.5t/m2 (1F)and 1.0t/m2 (2F), and pillar interval spacing of 10.0m by 10.5m, which offer versatility for tenants with various businessneeds. One cargo elevator provides sufficient internal carriage capacity, while the truck berths installed on one side of 1F
enable efficient operation with few losses of time in this lower-rise facility. There are 71 car parking spaces, sufficient forthe size of the property.
(Note 1) As of today, the land and the building of this property are owned by the seller and Tokyo Century Corporation, respectively, and a fixed-term leaseholdfor business has been established for the land with Tokyo Century Corporation set as the leaseholder for the purpose of owning the building of theproperty. DHR has agreed in the purchase agreement with the seller that, as of the same date with the acquisition date of the property, Tokyo Century
Corporation will entrust the building and the fixed-term leasehold for business to the above trustee, and that the seller will take over the trust
beneficiary interest and, after additionally entrusting the land of the property to the trustee, will transfer such trust beneficiary interests to DHR.
Furthermore, the above fixed-term leasehold for business will cease to exist upon the additional entrustment of the land.
(Note 2) Not disclosed as consent for disclosure has not been obtained from the lessee.

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 20 -

Property number
LB-064
Anticipateddate of acquisition

Asset class
Type
Anticipated
April 10, 2019acquisition priceOverview of specified asset
Type of specified asset
Trust beneficiary interest in real estate (Note 1)
Sumitomo Mitsui Trust
Trustee
Trust maturity dateBank, Limited
Lot number
6-4, Kashiwabara, Ishioka City, Ibaraki
Location Residence
6-4, Kashiwabara, Ishioka City, Ibaraki
indication
Type ofType ofOwnershipownershipownership
Gross floor
Land area
42,932.01m2
area
Exclusive industrial
Land
Area classification
Use
district
Building
Building coverage
60%
Structure
ratio
Number ofFAR
200%
floorsDate of
CollateralNone
construction
Overview of building condition evaluation
Evaluation company
Tokio Marine & Nichido Risk Consulting Co., Ltd.
Urgent repair costs
0 thousand yen
Evaluation date
Short-term repair costs
0 thousand yen
PMLLong-term repair costs
56,649 thousand yen / 12 years
Designer, structural designer, contractor, inspection agency
Designer
Daiwa House Industry Co., Ltd.
Structural designer
Daiwa House Industry Co., Ltd.
Contractor
Daiwa House Industry Co., Ltd.
Inspection agency
Ibaraki Construction Center
Structural calculation
evaluation agency
Overview of leasing
2
Leasable area
24,493.54 m
Number of tenants
2
Leased area
24,493.54 m
Annual rent
Tenant leasehold
Occupancy rate
100.0%and security deposit
Lease term
Not disclosed (Note 2)
Remaining lease term
Master lease company
Master lease type
D Project Ibaraki Ishioka

Property management company
LesseeContract form
Contract period
Rent revision
Contract renewal

Logistics
BTS (Build-to-suit) type4,050 million yen

April 30, 2039

Ownership
21,472.53m2
Warehouse
Steel-frame building
2F
August 1, 2015

January 2019
1.6 %1
Not disclosed (Note 2)
Not disclosed (Note 2)
Not disclosed (Note 2)

Daiwa House Property Management Co., Ltd.
Kokubu Group Corp.
Fixed-term building lease agreement
Not disclosed (Note 2)
Not disclosed (Note 2)
No renewal; the contract will end upon expiration of the lease period.

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 21 -

The lease agreement may not be cancelled before the expiry thereof. However, the lessee
may cancel the lease agreement if it notifies the lessor in writing by at least twelve
months prior to the date of cancellation and makes a lump-sum payment of a prescribed
Early cancellation
amount of penalty fees by the end of the month containing the date of cancellation;
however, no penalty fees for cancellation will be imposed when the lessee introduces analternative lessee and the lease agreement is renewed to such alternative lessee under thesame terms with the previous agreement.
Special items
1. The leasehold is established for a part of the land of this property (169.00m2) based on the land lease agreement for the
purpose of using such land as a site for a steel tower for power transmission lines.
2. The agreement on installation of power transmission lines is executed with regard to a part of the land of this property (2,064.47m2),
which provides that the height of buildings, etc. is limited and the lessee may enter into the relevant land for the purpose of installingand maintaining such power transmission lines.
Property characteristics
 Location
This property is located in Ishioka City, situated in south Ibaraki within a 60km radius of central Tokyo. This property is
located approximately 1.9km from Ishioka-Omitama Smart IC on the Joban Expressway and in close proximity to
National Route 355, an arterial road running through the city. This good traffic access to arterial roads and the expressway
network enables the property to function as a hub covering extensive areas containing the Tokyo Metropolitan and northern
Kanto areas.
This property, located in Kashiwabara Industrial Complex built in an exclusive industrial district, can operate 24 hours a
day with low-potential for complaints from local residents.
The property is in a relatively advantageous position to secure workforce as it is surrounded by a cluster of residential
districts, though it is located out of walking distance from the nearest station and employees have to commute by car or
take a bus from the nearest station.
 Specification
It is a two-story (one-story for warehouse section) facility with gross floor area of approximately 6,495 tsubo, leased to afood wholesaler. A refrigerator and a freezer installed make up about a half of the facility, while a dock shelter is also
installed. As basic specifications, the property has the ceiling height of 10.55m (3.3~3.5m for the refrigerator and freezer
section), floor weight capacity of 1.5t/m2 (1.0t/m2 for the refrigerator and freezer section), and pillar interval spacing of
10.5m by 10.5m, which generally offers versatility for tenants with various business needs. The one-story building withthe truck berths installed on both sides offers efficient operation. There are 262 parking spaces for passenger cars, as well
as 47 waiting spaces for trucks and 15 and 7 parking spaces for guest cars and employee cars, respectively, sufficient forthe size of the property.
(Note 1) As of today, the land and the building of this property are owned by the seller and Hitachi Capital Corporation, respectively, and a fixed-term leaseholdfor business has been established for the land with Hitachi Capital Corporation set as the leaseholder for the purpose of owning the building of theproperty. DHR has agreed in the purchase agreement with the seller that, as of the same date with the acquisition date of the property, Hitachi Capital
Corporation will entrust the building and the fixed-term leasehold for business to the above trustee, and that the seller will take over the trust
beneficiary interest and, after additionally entrusting the land of the property to the trustee, will transfer such trust beneficiary interests to DHR.
Furthermore, the above fixed-term leasehold for business will cease to exist upon the additional entrustment of the land.
(Note 2) Not disclosed as consent for disclosure has not been obtained from the lessee.
(Note 3) Besides from the building, with approval, lessee has installed and used a gas station on part of the land.

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 22 -

Property number

Asset class
RetailType
Mall type
Anticipated
Anticipated
April 5, 2019
10,320 million yen
date of acquisitionacquisition priceOverview of specified asset
Type of specified asset
Trust beneficiary interest in real estate (Note 1)
Sumitomo Mitsui Trust
Trustee
Trust maturity date
April 30, 2039
Bank, Limited
Lot number
5-19, Kenkyugakuen, Tsukuba City, Ibaraki
Location Residence
5-19, Kenkyugakuen, Tsukuba City, Ibaraki
indication
Type ofType ofOwnership
Ownershipownershipownership
Gross floor
Land area
145,385.16m2 (Note 2)
112,509.43m2 (Note 2)
area
Land
Area classification Retail district
Use
Store, Parking lot
Building
Building coverage
Steel-frame reinforced
80% (Note 3)
Structure
ratio
concrete building
Number of
FAR
200%
5F
floorsDate of
Collateral
None
September 29, 2008
construction
Overview of building condition evaluation
Evaluation company
Tokio Marine & Nichido Risk Consulting Co., Ltd.
Urgent repair costs
0 thousand yen
Evaluation date
January 2019
Short-term repair costs
0 thousand yen
PML
2.2%
Long-term repair costs
490,033 thousand yen / 12 years
Designer, structural designer, contractor, inspection agency
SHIMIZU CORPORATION (New construction)
Designer
Kitagawa Corporation (Parking lot extension)
SHIMIZU CORPORATION (New construction)
Structural designer
Life Planning Inc. (Parking lot extension)
SHIMIZU CORPORATION (New construction)
Contractor
Kitagawa Corporation (Parking lot extension)
The Building Center of Japan (New construction)
Inspection agency
Japan Constructive Inspect Association (Parking lot extension)
Structural calculation
evaluation agency
Overview of leasing (Note 4)
Leasable area
41,670.12 m2
Number of tenants
1
Leased area
41,670.12 m2
Annual rent
645,000 thousand yen
Tenant leasehold
Occupancy rate
100.0%
322,500 thousand yen
and security deposit
20.1 years
Lease term
20.1 years
Remaining lease term
Master lease company
Daiwa House Industry Co., Ltd.
Master lease type
Sublease type
RM-012

iias Tsukuba

Property management company
LesseeContract form
Contract renewal

Daiwa Information Service Co., Ltd.
Daiwa House Industry Co., Ltd.
Building lease agreement
From April 5, 2019 to April 30, 2039

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 23 -

Rent shall remain unchanged for ten years from the commencement date of the leaseagreement, and shall be reviewed upon consultation every three years after that. Rent
Contract period
may be revised upon consultation in cases when the amount of rent becomes inadequate
due to an increase or decrease in public dues and changes in a level of rent of properties
in the neighborhood and other economic circumstances.
The lease agreement shall be renewed automatically every three years, unless either ofRent revision
the parties notifies the counterparty of its rejection of renewal in writing, etc., by at least
six months prior to the expiry thereof.
The lease agreement may not be cancelled before the expiry thereof. However, the lessee
may cancel the lease agreement if it notifies the lessor in writing by at least twelve
Early cancellation
months prior to such date of cancellation and pay a prescribed amount of penalty fees tothe lessor.
Special items
DHR will acquire 30% quasi co-ownership interest of trust beneficiary interest in real estate. Another quasi-co-owner of theinterest is Daiwa House Industry Co., Ltd. DHR will enter into a letter of agreement with another quasi co-owner for future
management of this property.
Property characteristics
 Location
This property is located in Tsukuba City, situated in southwestern Ibaraki, about approximately 50km southwest of Mito
City, the prefectural capital of Ibaraki, and approximately 50km northeast of Tokyo. This property, approximately fourminute walk from Kenkyu-gakuen Station on the Tsukuba Express, is located in a subcenter district adjacent to the city
center. The property has good traffic access with approximately 4,300 parking spaces, facing the three streets, TorideTsukuba Line (Science Boulevard), a major local road, on the east side, Toride-Tsukuba Line (Shintoshi Chuo Dori) on
the south side and the road extending north of Kenkyu-gakuen Station.
 Tenant
The core tenants of the Inmall Building include a food supermarket Food Square KASUMI (1F), a fashion boutique Fit
House (1F), an apparel shop Uniqlo (2F), a home appliance retailer Nojima (2F), a toy retailer Toys-R-Us/Babies-R-Us(3F) and a bookshop Academia (3F), while those of the Outmall Building include a pet shop Kojima and a wedding hall.
The total number of tenants, including other shops, service providers and cafes and restaurants, totals more than 200. It is
the largest retail facility by store area within a 3km radius with the sales of more than JPY30bn, and continues growing
together with local communities.
 Characteristics
It is expected that a slight increase in population up to 2035 will continue in Tsukuba City, in which this property is located.
The population in the trade area is approximately 51,000, 106,000 and 277,000 within a 3km radius, a 5km radius and a
10km radius, respectively. The trade area within a 3km radius contains more students and families than the average of
Ibaraki Prefecture, with a higher percentage of population in their 20s, 30s and 40s.
This is an eco-friendly property with installation of the solar and solar/wind hybrid power generation systems, as well as an airconditioning system using an ice thermal storage system using midnight power.
Population Distance from property
Within 3km radius
Within 5km radius
Within 10km radius
2017
Population
51,317106,073
277,947
Number of household
24,76547,843
118,830
2016
Population
49,612
103,500
274,471
Number of household
24,111
46,575
116,199
Source: Basic Resident Register(Note 1) Although a real estate in kind as of today, the seller is to trust the property to the above trustee before the planned acquisition date and DHR is toacquire the co-ownership interest (30%) of trust beneficiary interest in real estate.
(Note 2) While DHR anticipates to acquire 30% of co-ownership of trust beneficiary interest, land area and gross floor area indicated the figures of the entire
property.
(Note 3) While the building coverage ratio of the property is essentially 80%, due to application of corner lot mitigation, it is set at 90%.
(Note 4) As it is scheduled that the new sublease type master lease agreement would be executed by the time DHR acquires the property, the descriptions are
based on the assumption that such agreement was executed as of November 30, 2018.

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 24 -

Property number
RR-007
Anticipateddate of acquisition

Asset class
Type
Anticipated
April 5, 2019acquisition priceOverview of specified asset
Type of specified asset
Trust beneficiary interest in real estate (Note 1)
Sumitomo Mitsui Trust
Trustee
Trust maturity dateBank, Limited
Lot number
2-337, Honkomagome, Bunkyo Ward, Tokyo
Location Residence
2-29-21, Honkomagome, Bunkyo Ward, Tokyo
indication
Type ofType ofOwnershipownershipownership
Gross floor
Land area
658.29m2
area
Retail district, class two
Land
Area classification
Use
residential district
Building
Building coverage
80%/60%
Structure
ratio
Number of
FAR
600%/300%
floorsDate of
CollateralNone
construction
Overview of building condition evaluation
Evaluation company
Tokio Marine & Nichido Risk Consulting Co., Ltd.
Urgent repair costs
0 thousand yen
Evaluation date
Short-term repair costs
0 thousand yen
PMLLong-term repair costs
53,564 thousand yen / 12 years
Designer, structural designer, contractor, inspection agency
Designer
Daiwa House Industry Co., Ltd.
Structural designer
Daiwa House Industry Co., Ltd.
Contractor
Daiwa House Industry Co., Ltd.
Inspection agency
Bunkyo Ward
Structural calculation
Tokio Marine & Nichido Risk Consulting Co., Ltd.
evaluation agency
Overview of leasing
2
Leasable area
1,066.95m
Number of tenants
2
Leased area
1,066.95m
Annual rent
Tenant leasehold
Occupancy rate
100.0%and security deposit
Lease term
Not disclosed (Note 2)
Remaining lease term
Master lease company
Master lease type
Aoyama Tailor Bunkyo Sengoku
Ekimae Store

Property management company
LesseeContract form
Contract period
Rent revision
Contract renewal
Early cancellation

RetailRoadside type
750 million yen

April 30, 2039

Ownership
1,066.95m2
Store
Steel-frame building
3F
April 1, 1994

January 20198.4%

1
Not disclosed (Note 2)
Not disclosed (Note 2)
Not disclosed (Note 2)

Daiwa Information Service Co., Ltd.
Aoyama Trading Co., Ltd.

Not disclosed (Note 2)

Special items
Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 25 -

1. Any transfer of this property or trust beneficiary interest in real estate, or any establishment of pledge, superficies orright of lease on this property or trust beneficiary interest in real estate, etc. requires consent from the lessee.
2. Some findings are pointed out in the report on building condition evaluation, etc., and DHR has agreed with the sellerthat such findings shall be rectified at the responsibility and expense of the seller before the acquisition by DHR.
Property characteristics
 Location
This property is located in Bunkyo Ward, situated in the center of Tokyo. It is an approximately one-minute walk from
Sengoku Station on the Toei Subway Mita Line, just outside its A3 exit. It is a property situated along the Hakusan Dori
Avenue, highly visible with its distinct presence. The location of this property has also characteristics of a roadside retailproperty, which is equipped with a drive-in parking facility and easily approachable by car.
 Tenant
This property is leased to Aoyama Trading Co., Ltd., which uses it as a directly-managed store of “Aoyama Tailor,” themenswear store brand. The entire property is leased to Aoyama Trading, the leading player in the menswear industry
operating 896 stores under the brands of Aoyama Tailor, THE SUIT COMPANY and others throughout Japan (as of theend of March 2018). The pay-by-the-hour parking lot at 1F with 16 parking spaces is in 24-hour operation.
 Characteristics
The property is located in a densely-populated trade area, with a residential population of approximately 16,000 within a
0.5km radius, approximately 67,000 within a 1km radius and approximately 271,000 within a 2km radius. The population
within every radius is on the increase, and contains a higher ratio of those in 40s, 30s and less than 10 years and a smaller
ratio of those in 60s and 70s than the average of Tokyo, which means families consisted of children of baby-boomers andtheir small children are drawn into condominiums newly built in this area. Also with the heavy volume of commuters andstudents flowing into the area, this retail property is located in a market accessible to both the residential and daytime
population.
Population
Distance from property
Within 0.5km radius
Within 1km radius
Within 2km radius
2017
Population
16,011
67,741
271,010
Number of household
8,471
37,165
152,726
2016
Population
15,78366,657
267,509
Number of household
8,364
36,496150,099
Source: Basic Resident Register(Note 1) DHR has agreed in the purchase agreement with the seller that, as of the same date with the acquisition date of the property, the seller will entrust theproperty to the above trustee, and the seller will transfer the trust beneficiary interest to DHR as of the same date.
(Note 2) Not disclosed as consent for disclosure has not been obtained from the lessee.

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 26 -

Property number
RR-008
Anticipateddate of acquisition

Asset class
Retail
Type
Roadside type
Anticipated
April 5, 2019
5,000 million yen
acquisition priceOverview of specified asset
Type of specified asset
Trust beneficiary interest in real estate
Sumitomo Mitsui Trust
Trustee
Trust maturity date
April 30, 2039
Bank, Limited
Lot number
6006-1, Aza Terada, Shobu-cho Shobu, Kuki City, Saitama
Location Residence
6006-1, Aza Terada, Shobu-cho Shobu, Kuki City, Saitama
indication
Type ofType ofOwnership
Ownershipownershipownership
Land area
Gross floor
58,147.17m2
19,089.96m2(Note 1)
area (Note 1)
Playground (A) (Note 3)
Area classification Quasi-industrial district
Use
Store (B/D/E/F/G/H/I/J)
Store/working space (C)Land
Steel-frame building(A/B/G/I/J)
Building coverage
60% (Note 2)
Structure
Light-gauge steel framed
Building
ratio
building (C/F)
Wooden building (D/E/H)
Number of
FAR
200%
1F(A/B/C/D/E/F/G/H/I/J)
floorsMarch 16, 2010 (C/D/E/F)
March 19, 2010 (A/B)
Date of
March 5, 2012 (G)CollateralNone
construction
March 19, 2012 (I)April 2, 2012 (H)March 31, 2013 (J)Overview of building condition evaluation (Note 1)
Evaluation company
Tokio Marine & Nichido Risk Consulting Co., Ltd.
Urgent repair costs
0 thousand yen
Evaluation date
January 2019
Short-term repair costs
0 thousand yen
PML
1.2%
Long-term repair costs
181,095 thousand yen / 12 years
Designer, structural designer, contractor, inspection agency
Daiwa House Industry Co., Ltd. (A (New construction) /B/C/D/E/F/G/I)
Fukutomi Architects & Engineers, INC. (A (Change in classification))
Designer
Atelier Fine (H)k-create Co., LTD. (J)Daiwa House Industry Co., Ltd. (A/B/C/F/G)‐ (D/E/I)
Structural designer
Kazumasa Takahashi (H)YOU PLAN (J)ICHIKEN Co., Ltd. (A (New construction)/B/C/F)
TOTETSU KOGYO CO., LTD. (A (Change in classification))
Fujii Construction (D/E)
Contractor
COHNAN KENSETSU INC. (G)FUTABA Construction (H)Daiwa House Industry Co., Ltd. (I)
LUCKLAND CO., LTD. (J)JAPAN ERI CO., LTD. (A (New construction)/B)
Bureau Veritas Japan (A (Change in classification))
Inspection agency
Saitama Housing Inspection Center (C/D/E/F)
Away Building Evaluation Network Inc. (G/I)
FOLEO Shobu

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 27 -

J Architecture Inspection Center (H)good-eyes. (J)Structural calculation
evaluation agency
Leasable area
Leased area
Occupancy rate
Lease term
Master lease company
Master lease type

Overview of leasing (Note 1) (Note 4)
19,104.17m2
Number of tenants
1
2
19,104.17m
Annual rent
314,400 thousand yen
Tenant leasehold
100.0%
157,200 thousand yen
and security deposit
20.1 years
Remaining lease term
20.1 years
Daiwa House Industry Co., Ltd.
Sublease type

Property management company
LesseeContract form
Contract period

Rent revision

Contract renewal

Early cancellation

Daiwa Information Service Co., Ltd.
Daiwa House Industry Co., Ltd.
Fixed-term building lease agreement
From April 5, 2019 to April 30, 2039
Rent shall remain unchanged for ten years from the commencement date of the leaseagreement, and shall be reviewed upon consultation every three years after that. Rent
may be revised upon consultation in cases when the amount of rent becomes inadequate
due to an increase or decrease in public dues and changes in a level of rent of properties
in the neighborhood and other economic circumstances.
The lease agreement shall be renewed automatically every three years, unless either ofthe parties notifies the counterparty of its rejection of renewal in writing, etc., by at least
six months prior to the expiry thereof.
The lease agreement may not be cancelled before the expiry thereof. However, the lessee
may cancel the lease agreement if it notifies the lessor in writing by at least twelve
months prior to such date of cancellation and pay a prescribed amount of penalty fees tothe lessor.
Special items

None
Property characteristics
 Location
This property, located at the corner of the bypass of National Route 122 which contributes to expansion of the trade areain the east-west direction, and Saitama Prefectural Road 12 leading to Kazo and Kitamoto regions, can attract visitors fromextensive areas. It also enjoys an advantage as a roadside retail facility since it is highly visible from National Route 122
Bypass, coupled with the similar large-scale retail facility adjacent to this property.
 Tenant
It is a sponsor-developed retail facility with a number of specialty stores. The lineup of tenants includes core ones such as an electric
appliance retailer K’s Denki, a large-scale bookstore Tsutaya Books and a drugstore Cawachi, as well as other stores, service
providers and restaurants. A supermarket Lopia is contained in the space of Tsutaya Books.
 Characteristics
While the population within a 3km radius and a 5km radius is only approximately 20,000 and approximately 82,000,
respectively, approximately 624,000 people live within a 10km radius from the property. As the population in a 10-minutedriving distance and a 20-minute driving distance is approximately 27,000 and approximately 227,000, respectively, thetrade area of this property can be extended to the 10km radius along with the National Route 122 Bypass. The good traffic
access enjoyed by this property will offer an advantage in attracting visitors since this property is located in an area inwhich cars are indispensable to daily life of local residents, as represented by the high ownership rates of passenger cars
at 125.1%, 157.3% and 159.0% in Kuki City, Kazo City and Hanyu City, respectively, as well as about 120% in other
cities along the JR Takasaki Line and Utsunomiya Line.
Population Distance from property
Within 3km radius
Within 5km radius
Within 10km radius
2017
Population
20,35882,744624,152
Number of household
8,166
34,516258,971
2016
Population
20,51482,813625,909
Number of household
8,120
34,008256,159
Source: Basic Resident Register(Note 1) The property consists of 10 buildings (A/B/C/D/E/F/G/H/I/J), and “land area”, “gross floor area” and “Overview of building condition evaluation”
Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 28 -

indicates the total of the 10 buildings and its site area.
(Note 2) While the building coverage ratio of the property is essentially 60%, due to application of corner lot mitigation, it is set at 70%.
(Note 3) Use is “Playground” on registry as of today, however it is planned to be changed to “store” before DHR’s acquisition.
(Note 4) As it is scheduled that an amended sublease type master lease agreement would be executed by the time DHR acquires the property, the descriptions
are based on the assumption that such amended agreement was executed as of November 30, 2018.

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 29 -

Property number
HO-003
Anticipateddate of acquisition

Asset class
Hotel
Type
Anticipated
April 5, 2019
4,500 million yen
acquisition priceOverview of specified asset
Type of specified asset
Trust beneficiary interest in real estate (Note 1)
Sumitomo Mitsui Trust
Trustee
Trust maturity date
April 30, 2039
Bank, Limited
Lot number
119-1, Tsubakicho, Nakamura Ward, Nagoya City, Aichi
Location Residence
1-23, Tsubakicho, Nakamura Ward, Nagoya City, Aichi
indication
Type ofType ofOwnership
Ownershipownershipownership
Gross floor
Land area
998.29m2
7,605.41m2
area
Area classification Retail district
Use
Hotel, parking lot
Land
Steel-frame, steel-frame
Building
Building coverage
80%
Structure
reinforced concrete andratio
reinforced concrete building
Number of
FAR
600%/800%
12F with B2
floorsDate of
Collateral
None
July 3, 2001
construction
Overview of building condition evaluation
Evaluation company
Tokio Marine & Nichido Risk Consulting Co., Ltd.
Urgent repair costs
0 thousand yen
Evaluation date
January 2019
Short-term repair costs
0 thousand yen
PML
1.8%
Long-term repair costs
328,838 thousand yen / 12 years
Designer, structural designer, contractor, inspection agency
Designer
Nikken Sekkei Ltd
Structural designer
Nikken Sekkei Ltd
Contractor
OBAYASHI CORPORATION
Inspection agency
Nagoya City building official
Structural calculation
evaluation agency
Overview of leasing (Note 2)
2
Leasable area
7,605.41m
Number of tenants
1
Leased area
7,605.41m2
Annual rent
252,000 thousand yen
Tenant leasehold
Occupancy rate
100.0%
120,000 thousand yen
and security deposit
Lease term
5.1 years
Remaining lease term
5.1 years
Master lease company
Master lease typeDaiwa Roynet Hotel Nagoya
Shinkansenguchi

Property management company
LesseeContract form
Contract period

Daiwa Information Service Co., Ltd.
Daiwa Royal Co, Ltd.
Building lease agreement
From April 5, 2019 to April 30, 2024

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 30 -

Rent may not be revised for five years from the commencement date of the leaseagreement, and may be revised on the sixth year upon consultation, based on the previous
month rent of the revision month. However, rent may be revised upon consultation
Rent revision
between the lessee and the lessor in cases when the amount of rent becomes inadequate
due to an increase or decrease in public dues and changes in a level of rent of properties
in the neighborhood and other economic circumstances.
The lease agreement shall be renewed under the same terms, unless either of the parties
Contract renewal
notifies the counterparty of its rejection of renewal in writing, etc., by at least one year
prior to the expiry thereof.
The lease agreement may not be cancelled during the lease period. However, the lessee
Early cancellation
may cancel the lease agreement if it makes a lump-sum payment of a prescribed amountof penalty fees.
Special items
Some findings are pointed out in the report on building condition evaluation, etc., and DHR has agreed with the seller thatsuch findings shall be rectified at the responsibility and expense of the seller before the acquisition by DHR.
However, if the rectification is not completed by DHR’s acquisition, the findings shall be rectified at the responsibility andexpense of the seller by June 30, 2019.
Property characteristics
 Location
This stay-only hotel, which is highly visible, addresses business and sightseeing needs with its locational advantages, as it islocated within walking distance of approximately three minutes from JR Nagoya Station and facing two-way streets withsidewalk on the south and west sides. Also, the number of passengers using JR Nagoya Station is rising and further increase is
expected when operation of the Linear Chuo Shinkansen starts.
 Tenant
The tenant of this property is Daiwa Roynet Hotel Nagoya Shinkansenguchi, operated by Daiwa Royal Co., Ltd. Daiwa
Roynet Hotel, the brand of a major nationwide hotel chain, under which development of new businesses is planned, is
expected to attract guests stably with its strong brand power and member system. More than one hotel under the samebrand is in operation around Nagoya Station, which may bring benefits in attracting customers.
 Characteristics
Daiwa Roynet Hotel, the tenant of this property, is a high-end brand in the category of stay-only hotels, and thus this hotelwith 165 guest rooms has competitive advantage taking into consideration its access from Nagoya Station. Stable revenue
can be expected from this property as an alternative tenant can be found soon even if the current tenant exits.
(Note 1) DHR has agreed in the purchase agreement with the seller that, as of the same date with the acquisition date of the property, the seller will entrust theproperty to the above trustee, and the seller will transfer the trust beneficiary interest to DHR as of the same date.
(Note 2) As DHR has entered into a memorandum of understanding to amend the lease agreement for the property which will become effective upon theacquisition of the property, the descriptions are based on the assumption that the memorandum of understanding was in effect as of November 30,
2018.

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 31 -

Property number
OT-005
Anticipateddate of acquisition

Nursery Room Berry Bear Omori
Nishi Welcia Ota Omori Nishi
Store

Asset class

Other (Child day-carefacility)-

Type
Anticipated
March 12, 2019
1,380 million yen
acquisition priceOverview of specified asset
Type of specified asset
Trust beneficiary interest in real estate
Sumitomo Mitsui Trust
Trustee
Trust maturity date
March 31, 2039
Bank, Limited
Lot number
5-217-1, Omorinishi, Ota Ward, Tokyo
Location Residence
5-25-21, Omorinishi, Ota Ward, Tokyo
indication
Type ofType ofOwnership
Ownershipownershipownership
Gross floor
Land area
1,194.11m2
1345.62m2
areaClass one residential
Child day-care facility (NoteLand
Area classification
Use
district1), store
Building
Building coverage
60%
Structure
Steel-frame building
ratio
Number of
FAR
200%
3F
floorsDate of
Collateral
None
January 17, 2019
construction
Overview of building condition evaluation
Evaluation company
Tokio Marine & Nichido Risk Consulting Co., Ltd.
Urgent repair costs
0 thousand yen
Evaluation date
January 2019
Short-term repair costs
0 thousand yen
PML
6.5%
Long-term repair costs
8,178 thousand yen / 12 years
Designer, structural designer, contractor, inspection agency
Designer
Daiwa House Industry Co., Ltd.
Structural designer
Daiwa House Industry Co., Ltd.
Contractor
Daiwa House Industry Co., Ltd.
Inspection agency
Toshi Kenchiku Kakunin Center
Structural calculation
evaluation agency
Overview of leasing (Note 2)
2
Leasable area
1,345.60 m
Number of tenants
1
2
Leased area
1,345.60 m
Annual rentNot disclosed (Note 3)
Tenant leasehold
Occupancy rate
100.0%
Not disclosed (Note 3)
and security deposit
Average remaining lease
Average lease term
20.1 years
19.9 years
term
Master lease company
Daiwa Information Service Co., Ltd.
Master lease typePass-through type
Property management company
LesseeMajor tenant
Contract form
Contract period
Rent revision
Contract renewal

Daiwa Information Service Co., Ltd.
NESS Corporation, WELCIA YAKKYOKU CO., LTD.
NESS Corporation
Building lease agreement
Not disclosed (Note 3)

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 32 -

Early cancellation
Special items
1. Some findings are pointed out in the report on building condition evaluation, etc., and DHR has agreed with the sellerthat such findings shall be rectified at the responsibility and expense of the seller before the acquisition by DHR
2. The road on the south side of the property is designated as a road authorized under the City Planning Act and part of theland of the property is the planned site for a road authorized under the City Planning Act. Even in the event that the plannedsite is provided, the property’s building coverage ratio and FAR are not expect to exceed the standards.
Property characteristics
 Location
This property is located approximately 320m north-west of, and an approximately four-minute walk from Umeyashiki
Station on the Keikyu Main Line. The location is in the middle of a shopping street between Umeyashiki Station andOmorimachi Station on the Keikyu Main Line, surrounded by residential districts. The property, facing a two-way road on
the south side and a one-way road on the west side, offers good access by car due to its proximity to Tokyo Metropolitan
Road 11, which functions as a bypass of Loop Highway No.7 and No.8. It has 6 parking spaces for cars on the south side,and 59 parking spaces for bicycles on the south and west sides in aggregate.
 Tenant
The 1st floor is leased to a drugstore, while the 2nd and 3rd floors to a child day-care facility. This property matches needsof local residents with the tenant composition that is well supportive of their daily living, allowing them to go shopping
while dropping off their children at the child day-care facility.
 Characteristics
This property is located in Ota Ward, the area in which greater population growth than the national or Tokyo average is
expected based on the population estimate index, and attractive markets for retail tenants are provided. The local trade area
has a sufficient size with the population of approximately 100,000 within a 1km radius, and is supported by towns ofcommuters to central Tokyo consisted of the large volume of residents in their 20s, 30s and 40s. There are growing needs
for child day-care facilities on the back of the population increase, as well as potential needs for dispensing pharmacies inconsideration of the proximity to Toho University Omori Medical Center (approximately 200m west).
Population
Distance from property
Within 1km radius
Ota Ward
2018
Population
97,426723,341
Number of household
54,557385,193
Change (2018/2017) Population
0.7%
0.8%
Number of household
1.3%
1.5%
Source: Basic Resident Register(Note 1) The lessee of the child day-care facility is under the process of obtaining approval by March 31, 2019 for the operation of child day-care facility.
Under the purchase agreement, DHR has a right to terminate the purchase agreement if the lessee cannot obtain the approval by March 31, 2019.
(Note 2) As DHR has entered into a memorandum of understanding to amend the lease agreement for the property, the descriptions are based on theassumption that the memorandum of understanding was in effect as of November 30, 2018.
(Note 3) Not disclosed as consent for disclosure has not been obtained from the lessee.

4.

Seller profile(1) D Project Kitahachioji I, D Project Kitahachioji II and D Project Kitahachioji III(1)Name
DH Development II Godo Kaisha(2)
Location
1-4-1, Nihonbashi, Chuo Ward, Tokyo(3)
Representative
Representative member : Asset Holdings General Incorporated Association
Enforcer : Akira Sugai(4)
Business activities(a) Acquisition, holding and disposal of trust beneficiary interest in real estate(b) Acquisition, holding, disposal, leasing and management of real estate(c) All other businesses incidental or related to the above(5)
Capital1 million yen(6)Foundation dateAugust 23, 2013(7)
Net assets
We have not obtained permission from DH Development II Godo Kaisha todisclose the information.
(8)
Total assets
We have not obtained permission from DH Development II Godo Kaisha todisclose the information.
(9)
Major shareholder andWe have not obtained permission from DH Development II Godo Kaisha toshareholding ratio
disclose the information.
(10) Relationships with DHR and the Asset Manager
There is no capital relationship requiring disclosure between DHR/the Asset
Capital relationships
Manager and DH Development II Godo Kaisha. There is no capital relationshiprequiring disclosure between DH Development II Godo Kaisha and Daiwa House
Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 33 -

Personnel relationship
Business relationship

Status of classification
as related party

Industry Co., Ltd., which is a parent company of the Asset Manager.
There is no personnel relationship requiring disclosure between DHR/the AssetManager and DH Development II Godo Kaisha.
There is no business relationship requiring disclosure between DHR/the AssetManager and DH Development II Godo Kaisha.
DH Development II Godo Kaisha is not a related party of DHR/the Asset Manager.
DH Development II Godo Kaisha is not a related party of Daiwa House Industry
Co., Ltd. which is a parent company of the Asset Manager; however, is a special
purpose company on which Daiwa House Industry Co., Ltd., a parent company of
the Asset Manager, may have a significant influence and is an interested party as
defined in the Asset Manager’s rules regarding interested-party transactions.

(2) D Project Itabashi Shingashi, D Project Sagamihara, D Project Kuki VIII, D Project Yokkaichi, D Project Ibaraki Ishioka,
iias Tsukuba, Aoyama Tailor Bunkyo Sengoku Ekimae Store, FOLEO Shobu and Nursery Room Berry Bear Omori
Nishi Welcia Ota Omori Nishi Store(1)
Name
Daiwa House Industry Co., Ltd.
(2)
Location
3-3-5, Umeda, Kita Ward, Osaka City, Osaka(3)
Representative
Keiichi Yoshii, President and COO(4)Business activities
General contractor(5)
Capital161,699 million yen (as of September 30, 2018)(6)
Foundation date
March 4, 1947(7)
Net assets
1,589,271 million yen (as of September 30, 2018)(8)
Total assets
4,147,925 million yen (as of September 30, 2018)(9)
Major shareholder and
The Master Trust Bank of Japan, Ltd. (Trust) 7.77%
shareholding ratio
The Japan Trustee Services Bank, Ltd. (Trust) 5.62%(as of September 30, 2018)(10) Relationships with DHR and the Asset Manager
The seller holds 9.6% of DHR’s investment units outstanding as of August 31,
2018. The seller also holds 100.0% of shares issued and outstanding of the Asset
Capital relationshipManager as of today, and thus falls under the category of an interested party, etc.
as defined in the Investment Trust Act.
Of the officers and employees of the Asset Manager, 16 people have been seconded
Personnel relationshipfrom the seller as of today.
The seller is a consignee of PM and other services for DHR, and is a lessee of realBusiness relationshipestate owned by DHR. The seller has executed a new basic agreement regarding
new pipeline support and other matters with DHR and the Asset Manager.
Status of classification
The seller falls under the category of a related party of DHR/the Asset Manager.
as related party(3) Daiwa Roynet Hotel Nagoya Shinkansenguchi(1)
Name
Nihon Jyutaku Ryutu Co., Ltd.
(2)
Location
1-1-3-800, Umeda, Kita Ward, Osaka City, Osaka(3)
Representative
Minoru Fujita, President and CEO(4)
Business activities
Real estate brokerage, management and agency / appraisal / renovation(5)
Capital
729 million yen (as of March 31, 2018)(6)
Foundation dateFebruary 15, 1978
(7)
Net assets
6,849 million yen (as of March 31, 2018)(8)
Total assets
17,590 million yen (as of March 31, 2018)(9)
Major shareholder andDaiwa House Industry Co., Ltd. 100% (as of March 31, 2018)
shareholding ratio(10) Relationships with DHR and the Asset Manager
There is no capital relationship requiring disclosure between DHR/the AssetManager and Nihon Jyutaku Ryutu Co., Ltd. Nihon Jyutaku Ryutu Co., Ltd. is a
Capital relationshipsubsidiary of Daiwa House Industry Co., Ltd., which is a parent company of theAsset Manager and thus falls under the category of an interested party, etc. as
defined in the Investment Trust Act.
There is no personnel relationship requiring disclosure between DHR/the Asset
Personnel relationshipManager and Nihon Jyutaku Ryutu Co., Ltd.
Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 34 -

Business relationship
Status of classification
as related party

There is no business relationship requiring disclosure between DHR/the AssetManager and Nihon Jyutaku Ryutu Co., Ltd.
Nihon Jyutaku Ryutu Co., Ltd. is not a related party of DHR. Nihon Jyutaku Ryutu
Co., Ltd. is a subsidiary of Daiwa House Industry Co., Ltd. in which it falls under
the category of a related party of the Asset Manager.

5. Interested party transactions
The following companies are defined as interested parties, etc. in the Investment Trust Act : Daiwa House Industry Co., Ltd.
as the seller of D Project Itabashi Shingashi, D Project Sagamihara, D Project Kuki VIII, D Project Yokkaichi, D Project
Ibaraki Ishioka, iias Tsukuba, Aoyama Tailor Bunkyo Sengoku Ekimae Store, FOLEO Shobu and Nursery Room Berry Bear
Omori Nishi Welcia Ota Omori Nishi Store and the master lease company and lessee of iias Tsukuba and FOLEO Shobu;
Daiwa House Property Management Co., Ltd. as the property management company of D Project Kitahachioji I, D Project
Kitahachioji II, D Project Kitahachioji III, D Project Itabashi Shingashi, D Project Sagamihara, D Project Kuki VIII, D Project
Yokkaichi and D Project Ibaraki Ishioka; Daiwa Information Service Co., Ltd. as the property management company of iias
Tsukuba, Aoyama Tailor Bunkyo Sengoku Ekimae Store, FOLEO Shobu and Daiwa Roynet Hotel Nagoya Shinkansenguchi
and the master lease and property management company of Nursery Room Berry Bear Omori Nishi Welcia Ota Omori Nishi
Store; Nihon Jyutaku Ryutu Co., Ltd. as the seller of Daiwa Roynet Hotel Nagoya Shinkansenguchi; and Daiwa Royal Co.,
Ltd. as the lessee of Daiwa Roynet Hotel Nagoya Shinkansenguchi.
DH Development II Godo Kaisha, which is the seller of D Project Kitahachioji I, D Project Kitahachioji II and D Project
Kitahachioji III, is a special purpose company on which Daiwa House Industry Co., Ltd., a parent company of the AssetManager, may have a significant influence and is an interested party as defined in the Asset Manager’s rules regarding
interested-party transactions; however, is not an interested party, etc., as defined in the Investment Trust Act.
The Asset Manager has gone through the necessary discussion and resolution procedures in accordance with its internal rules
regarding related party transactions.

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 35 -

6.

Status of the seller

Property acquisitions from parties with particular interests are as follows. The table below notes (1) the name of the party; (2)the relationship with the party that has a particular interest; and (3) the backgrounds and reason for the acquisition.

Property name
(Location)

LB-057
D Project
Kitahachioji I(2969-2,
Ishikawamachi,
Hachioji City,
Tokyo)

LB-058
D Project
Kitahachioji II(2969-18,
Ishikawamachi,
Hachioji City,
Tokyo)

Previous
owner / trust
beneficiary(1), (2), (3)Acquisition
price
Acquisition
date(1) DH
Development
II Godo Kaisha(2) The special
purposecompany onwhich Daiwa
House Industry
Co., Ltd., theparentcompany of
the Asset
Manager, may
have asignificant
influence(3) Acquisition
for investment
purposes

Omitted as theprevious
owner/trust
beneficiary has
owned theproperty forover one year
January 2017
(1) DH
Development
II Godo Kaisha(2) The special
purposecompany onwhich Daiwa
House Industry
Co., Ltd., theparentcompany of
the Asset
Manager, may
have asignificant

2 owners
Owner before
beforeprevious ownerprevious owner/ trust/ trustbeneficiary
beneficiary(1), (2), (3)(1), (2), (3)Acquisition
Acquisition
price
price
Acquisition
Acquisition
date
date
(1)
(1) DH Fund
Kitahachioji
Alpha Godo
Logistics
KaishaCenter Godo
(2) The special
Kaishapurpose(2) The special company inpurposewhich Daiwa
company on
House Industry
which Daiwa
Co., Ltd., theHouse Industry parent
Co., Ltd., thecompany ofparentthe Asset
company ofManager,the Asset
partially
Manager, may invests
have a(3) Acquisition
significant
for investment
influence
purposes(3) Acquisition
for investment
purposes――

3 owners
beforeprevious owner/ trustbeneficiary(1), (2), (3)Acquisition
price
Acquisition
date(1) Hachioji
Property
Development
Tokutei
Mokuteki
Kaisha(2) The special
purposecompany inwhich Daiwa
House Industry
Co., Ltd., theparentcompany of
the Asset
Manager,partially
invests(3) Acquisitionfordevelopment
purposes――(1)
Kitahachioji
Logistics
Center Godo
Kaisha(2) The special
purposecompany onwhich Daiwa
House Industry
Co., Ltd., theparentcompany of
the Asset
Manager, may―(1) DH Fund
Alpha Godo
Kaisha(2) The special
purposecompany inwhich Daiwa
House Industry
Co., Ltd., theparentcompany of
the Asset
Manager,partially
invests―(1) Hachioji
Property
Development
Tokutei
Mokuteki
Kaisha(2) The special
purposecompany inwhich Daiwa
House Industry
Co., Ltd., theparentcompany of
the Asset

4 owners
beforeprevious
owner/ trust
beneficiary(1), (2), (3)Acquisition
price
Acquisitiondate
A party which
does not haveany particularinterests

5 owners
beforeprevious
owner/ trust
beneficiary(1), (2), (3)Acquisition
price
Acquisition
date
―

―

―

―
A party which
does not haveany particularinterests――

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 36 -

Property name
(Location)

Previous
owner / trust
beneficiary(1), (2), (3)Acquisition
price
Acquisition
date
influence(3) Acquisition
for investment
purposes

LB-059D Project
Kitahachioji III(2969-19,
Ishikawamachi,
Hachioji City,
Tokyo)

2 owners
Owner before
beforeprevious ownerprevious owner/ trust/ trustbeneficiary
beneficiary(1), (2), (3)(1), (2), (3)Acquisition
Acquisition
price
price
Acquisition
Acquisition
date
date
have a(3) Acquisition
significant
for investment
influence
purposes(3) Acquisition
for investment
purposes

3 owners
4 owners
beforebeforeprevious ownerprevious/ trustowner/ trust
beneficiary
beneficiary(1), (2), (3)(1), (2), (3)Acquisition
Acquisition
price
price
Acquisition
Acquisition
date
date
Manager,partially
invests(3) Acquisitionfordevelopment
purposes――

Omitted as theprevious
owner/trust
beneficiary has
owned theproperty forover one year
January 2017
(1) DH
Development
II Godo Kaisha(2 )The special
purposecompany onwhich Daiwa
House Industry
Co., Ltd., theparentcompany of
the Asset
Manager, may
have asignificant
influence(3) Acquisition
for investment
purposes

―

―

―
(1)
Kitahachioji
Logistics
Center Godo
Kaisha(2) The special
purposecompany onwhich Daiwa
House Industry
Co., Ltd., theparentcompany of
the Asset
Manager, may
have asignificant
influence(3) Acquisition
for investment
purposes―(1) Daiwa
House Industry
Co., Ltd.
(2) The parent
company of
the Asset
Manager(3) Acquisition
for investment
purposes―(Land)(1) Daiwa
House Industry
Co., Ltd.
(2) The parent
company of
the Asset
Manager(3) Acquisitionfordevelopment
purposes(Building)
A party which
does not haveany particularinterests

Omitted as theprevious
owner/trust
beneficiary has
owned theproperty forover one year
January 2017

―

―

―

―

―

―

―
(Land)(1) Hachioji
Property
Development
Tokutei
Mokuteki
Kaisha(2) The special
purposecompany inwhich Daiwa
House Industry
Co., Ltd., theparentcompany of
the Asset
Manager,partially
invests(3) Acquisitionfordevelopment
purposes

5 owners
beforeprevious
owner/ trust
beneficiary(1), (2), (3)Acquisition
price
Acquisition
date

―

―
(Land)A party which
does not haveany particularinterests

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 37 -

Property name
(Location)

Previous owner / trust beneficiary(1), (2), (3)Acquisition price
Acquisition date

LB-060
D Project Itabashi Shingashi(1-2-2, Shingashi, Itabashi Ward,
Tokyo)

LB-061
D Project Sagamihara(1-2-31, Miyashimo, Chuo Ward,
Sagamihara City, Kanagawa)

LB-062
D Project Kuki VIII
(49-3, Kiyokucho, Kuki City, Saitama)

LB-063
D Project Yokkaichi(1947-14, Nakamuracho, Yokkaichi(Land)(1) Daiwa House Industry Co., Ltd.
(2) The parent company of the AssetManager(3) Acquisition for development
purposes(Building)(1) Daiwa House Industry Co., Ltd.
(2) The parent company of the AssetManager(3) Acquisition for sales purposes(Land) Omitted as the previous
owner/trust beneficiary has owned theproperty for over one year
(Building) 4,240 million yen(Land) November 2012
(Building) April 2019 (planned)(Land)(1) Daiwa House Industry Co., Ltd.
(2) The parent company of the AssetManager(3) Acquisition for development
purposes(Building)(1) Daiwa House Industry Co., Ltd.
(2) The parent company of the AssetManager(3) Acquisition for sales purposes(Land) Omitted as the previous
owner/trust beneficiary has owned theproperty for over one year
(Building) 1,749 million yen(Land) October 2013
(Building) April 2019 (planned)(Land)(1) Daiwa House Industry Co., Ltd.
(2) The parent company of the AssetManager(3) Acquisition for development
purposes(Building)(1) Daiwa House Industry Co., Ltd.
(2) The parent company of the AssetManager(3) Acquisition for sales purposes(Land) Omitted as the previous
owner/trust beneficiary has owned theproperty for over one year
(Building) 3,480 million yen(Land) November 2013
(Building) April 2019 (planned)(Land)(1) Daiwa House Industry Co., Ltd.
(2) The parent company of the Asset

Owner before previous
owner / trust beneficiary(1), (2), (3)Acquisition price
Acquisition date
A party which does not have any
particular interests――
A party which does not have any
particular interests――
A party which does not have any
particular interests――
A party which does not have any
particular interests

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 38 -

Property name
(Location)

Owner before previous
owner / trust beneficiary(1), (2), (3)Acquisition price
Acquisition datePrevious owner / trust beneficiary(1), (2), (3)Acquisition price
Acquisition date

City, Mie)

LB-064
D Project Ibaraki Ishioka(6-4, Kashiwabara, Ishioka City,
Ibaraki)

RM-012
iias Tsukuba(5-19, Kenkyugakuen, Tsukuba City,
Ibaraki)

RR-007
Aoyama Tailor Bunkyo Sengoku
Ekimae Store(2-29-21, Honkomagome, Bunkyo
Ward, Tokyo)

RR-008FOLEO Shobu(6006-1, Aza Terada, Shobu-choManager(3) Acquisition for development
purposes(Building)(1) Daiwa House Industry Co., Ltd.
(2) The parent company of the AssetManager(3) Acquisition for sales purposes(Land) Omitted as the previous
owner/trust beneficiary has owned theproperty for over one year
(Building) 812 million yen(Land) May 2015
(Building) April 2019 (planned)(Land)(1) Daiwa House Industry Co., Ltd.
(2) The parent company of the AssetManager(3) Acquisition for development
purposes(Building)(1) Daiwa House Industry Co., Ltd.
(2) The parent company of the AssetManager(3) Acquisition for sales purposes(Land) Omitted as the previous
owner/trust beneficiary has owned theproperty for over one year
(Building) 2,420 million yen(Land) June 2014
(Building) April 2019 (planned）(1) Daiwa House Industry Co., Ltd.
(2) The parent company of the AssetManager(3) Acquisition for development
purposes
Omitted as the previous owner/trust
beneficiary has owned the property forover one year
December 2005
(1) Daiwa House Industry Co., Ltd.
(2) The parent company of the AssetManager(3) Acquisition for development
purposes
Omitted as the previous owner/trust
beneficiary has owned the property forover one year
October 1990, November 1990, April
1991, July 1991 and September 1991
(1) Daiwa House Industry Co., Ltd.
(2) The parent company of the AssetManager――
A party which does not have any
particular interests――
A party which does not have any
particular interests――
A party which does not have any
particular interests――
A party which does not have any
particular interests

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 39 -

Property name
(Location)

Shobu, Kuki City, Saitama)

Owner before previous
owner / trust beneficiary(1), (2), (3)Acquisition price
Acquisition datePrevious owner / trust beneficiary(1), (2), (3)Acquisition price
Acquisition date(3) Acquisition for development
purposes
Omitted as the previous owner/trust
beneficiary has owned the property forover one year
March 2012

HO-003①
Daiwa Roynet Hotel Nagoya②
Shinkansenguchi(1-23, Tsubakicho, Nakamura Ward,
Nagoya City, Aichi)(1) Nihon Jyutaku Ryutu Co., Ltd.
(2) Subsidiary of the parent companyof the Asset Manager(3) Acquisition for investment
purposes
Omitted as the previous owner/trust
beneficiary has owned the property forover one year
January 2009
OT-005(1) Daiwa House Industry Co., Ltd.
Nursery Room Berry Bear Omori(2) The parent company of the Asset
Nishi Welcia Ota Omori Nishi StoreManager(5-25-21, Omorinishi, Ota Ward,③ (3) Acquisition for development
Tokyo)
purposes(Land) 654 million yen(Land) June 2018――
A party which does not have any
particular interests――
A party which does not have any
particular interests――

7. BrokerageNone
8. Acquisition schedule

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 40 -

Property nameAcquisition decision
date

Nursery Room Berry Bear Omori
Nishi Welcia Ota Omori Nishi StoreD Project Kitahachioji I
D Project Kitahachioji II
D Project Kitahachioji III
iias Tsukuba
Aoyama Tailor Bunkyo Sengoku
Ekimae StoreFOLEO Shobu(Anticipated) execution
date of the purchaseagreements

Date of payment andDelivery dateFebruary 8, 2019

March 12, 2019(planned)

February 8, 2019

Execution date of the Letterof Intent for acquisition of
February 8, 2019

April 5, 2019(planned)

the property:
February 8, 2019

Daiwa Roynet Hotel Nagoya
Shinkansenguchi

Execution date of thepurchase agreement:
April 5, 2019 (planned)(Note)

D Project Itabashi Shingashi
D Project Sagamihara
D Project Kuki VIII
D Project Yokkaichi
D Project Ibaraki Ishioka

February 8, 2019

April 10, 2019(planned)(Note) Regarding Daiwa Roynet Hotel Nagoya Shinkansenguchi, as of the date of this document, no purchase agreement has been entered into between DHR
and the seller; however, the Letter of Intent for acquisition of the property has been entered into among DHR, the Asset Manager and the seller. DHR
will, based on such letter of intent, acquire the property after separately concluding a purchase agreement describing transaction details.

9. Impact on DHR’s finance in the event of failure of fulfillment of the forward commitment, etc.
DHR has entered into purchase agreements for the Anticipated Acquisitions of 12 properties excluding Daiwa Roynet Hotel
Nagoya Shinkansenguchi (the “Purchase Agreements”), and also has executed the Letter of Intent for acquisition of theproperty for Daiwa Roynet Hotel Nagoya Shinkansenguchi (Note 1) with the seller of the property. All of the Purchase
Agreements for the 12 properties and the Letter of Intent for acquisition of the property for Daiwa Roynet Hotel Nagoya
Shinkansenguchi are “forward commitment, etc.” (Note 2) as defined in the “Comprehensive Guidelines for Supervision of
Financial Instruments Business Operators, etc.” established by the Financial Services Agency.
Under the Purchase Agreements, if a party breaches the Purchase Agreement, then the non-breaching party may cancel thePurchase Agreements upon notice to the breaching party, but only if the non-breaching party is no longer able to fulfill the
purpose of the Purchase Agreements due to the other party’s breach. In the event the Purchase Agreements are cancelled, thenon-breaching party may demand the breaching party to pay a penalty in the amount equal to approximately 20% of the pricenet of consumption tax and local consumption tax from purchase price (as such penalty is expected to constitute damage
payment, the non-breaching party may not claim for damages in the amount exceeding such penalty amount).
DHR’s payment of the purchase price, however, is subject to DHR completing the financing necessary to pay the purchaseprice. Hence, if DHR is unable to complete the financing necessary to pay the purchase price, the Purchase Agreements will
expire without DHR assuming any obligations under the Purchase Agreement, including payment of any penalty. The
purchase agreement to be entered for the acquisition of Daiwa Roynet Hotel Nagoya Shinkansenguchi is scheduled to beconditioned as the same as above. Thus, if DHR cannot fulfill the forward commitment, etc. for failing to complete thefinancing, it is unlikely that such non-fulfillment will have any material impact on DHR’s finance.
(Note 1) The Asset Manager also has executed the Letter of Intent for acquisition of the property. DHR plans to enter into the purchase agreement for theacquisition of Daiwa Roynet Hotel Nagoya Shinkansenguchi by the expected settlement date on April 5, 2019.
(Note 2) Forward commitment, etc. is a purchase and sale agreement executed one month or more in advance of the actual date on which the purchase price ispaid and the property is transferred to the purchaser, as well as certain other similar contracts. For Daiwa Roynet Hotel Nagoya Shinkansenguchi, as
the purchase agreement to be entered into based on the Letter of Intent for acquisition of the property may be executed one month or more in advanceof the expected settlement date on April 5, 2019, such letter of intent is treated as a forward commitment contract.

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 41 -

For the Letter of Intent for acquisition of the property for Daiwa Roynet Hotel Nagoya Shinkansenguchi, DHR, the AssetManager and the seller have agreed that if either DHR or the seller does not complete such internal approval process, theother party may terminate the letter of intent with prior notification. However, in such an event of termination, the parties
cannot claim damages, loss or expenses at all under the letter of intent.
10. Outlook
For the forecasts of results for the fiscal period ending August 31, 2019 (from March 1, 2019 to August 31, 2019) and thefiscal period ending February 29, 2020 (from September 1, 2019 to February 29, 2020) with the acquisition of the AnticipatedAcquisitions factored in, please refer to the press release “Notice Concerning Revision to Forecast of Results for the Fiscal
Period Ending August 31, 2019 and Announcement of Forecast of Results for the Fiscal Period Ending February 29, 2020”
separately announced today.
11.

Overview of property appraisal“Overview of Property Appraisal” is as follows.
“Overview of Property Appraisal” shows the overview of the real estate appraisal report of the Anticipated Acquisitions
prepared by DAIWA REAL ESTATE APPRAISAL CO., LTD., The Tanizawa Sōgō Appraisal Co., Ltd. or Japan Real Estate
Institute regarding the appraisal consigned by DHR pursuant to the important notices on real estate appraisal based on theInvestment Trust Act, and real estate appraisal standards and the Act on Real Estate Appraisal (Act No. 152 of 1963, as
amended). The relevant appraisal report represents the judgment and opinion of the appraiser at a certain point, and does notguarantee the appropriateness and correctness of the statements and the possibility of trading at the appraisal value, etc.
Furthermore, there is no relationship of special interest between DAIWA REAL ESTATE APPRAISAL CO., LTD., The
Tanizawa Sōgō Appraisal Co., Ltd. or Japan Real Estate Institute and DHR.
Appraisal value
Appraiser
Appraisal date
Item
Value based on income method
Value based on direct
capitalization method
Operating revenue
Effective gross revenue
Loss from vacancy
Operating expense
MaintenanceUtility cost
Repair
Property management
Fee
Advertisement and otherleasing cost
Tax
Insurance
Other cost
Net operating income (NOI)
Investment income oflump sum
Capital expenditure
Net cash flow (NCF)
Cap rate

D Project Kitahachioji I
4,360 million yen
Japan Real Estate InstituteDecember 31, 2018
Content
4,360
million yen
4,380
million yen-

Basis
Estimated by treating equally the value calculated using thedirect capitalization method and the value calculated using thediscounted cash flow method

Not disclosed (Note)

206
million yen
Not disclosed (Note)
201
million yen
4.6%

Assessed by adjusting basic yields in the area with spreads
attributable to the property’s location, the characteristics of theDisclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 42 -

building, the contract terms and conditions and othercharacteristics, in consideration of transaction yields based on
published materials by J-REITs and other transaction yields for
similar properties
Value based on Discounted
Cash Flow method
Discount rate
Terminal cap rate

4,340
million yen
4.2%
4.8%

Assessed by comprehensively taking into accountcharacteristics unique to the property, etc., by reference toinvestment returns of similar properties, etc.
Assessed by comprehensively taking into account upcomingchanges in investment returns, risks associated with theproperty as an investment target, general prediction of
economic growth rates, trends in real estate prices and rent
rates and all other applicable factors, by reference toinvestment returns of similar properties, etc.

Value based on cost method

4,120
million yen
Proportion of land
59.9%
Proportion of building
40.1%
Items applied to adjustments in valuation approach andthe determination of the appraisal value(Note)

None

Consent has not been obtained from the lessee for disclosure of certain figures in relation to the direct capitalization method, including informationthat could be used to deduce these amounts. Disclosure of this information could damage the relationship with the lessee, potentially resulting inclaims being brought against DHR for breach of confidentiality and/or termination and endangering the long-term contractual relationship. Therefore,
DHR believes that disclosure of this information could be detrimental to unitholder value, and, except in certain instances where it was deemed thatno harm would result from disclosure, these items are not disclosed.

Appraisal value
Appraiser
Appraisal date
Item
Value based on income method
Value based on direct
capitalization method
Operating revenue
Effective gross revenue
Loss from vacancy
Operating expense
MaintenanceUtility cost
Repair
Property management
Fee
Advertisement and otherleasing cost
Tax
Insurance
Other cost
Net operating income (NOI)
Investment income oflump sum
Capital expenditure
Net cash flow (NCF)

D Project Kitahachioji II
5,760 million yen
Japan Real Estate InstituteDecember 31, 2018
Content
5,760
million yen
5,810
million yen-

Basis
Estimated by treating equally the value calculated using thedirect capitalization method and the value calculated using thediscounted cash flow method

Not disclosed (Note)

273
million yen
Note disclosed (Note)
267
million yen

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 43 -

Cap rate

Value based on Discounted
Cash Flow method
Discount rate
Terminal cap rate

4.6%

5,710
million yen
4.3%
4.8%

Assessed by adjusting basic yields in the area with spreads
attributable to the property’s location, the characteristics of thebuilding, the contract terms and conditions and othercharacteristics, in consideration of transaction yields based on
published materials by J-REITs and other transaction yields for
similar properties
Assessed by comprehensively taking into accountcharacteristics unique to the property, etc., by reference toinvestment returns of similar properties, etc.
Assessed by comprehensively taking into account upcomingchanges in investment returns, risks associated with theproperty as an investment target, general prediction of
economic growth rates, trends in real estate prices and rent
rates and all other applicable factors, by reference toinvestment returns of similar properties, etc.

Value based on cost method

5,550
million yen
Proportion of land
66.7%
Proportion of building
33.3%
Items applied to adjustments in valuation approach andthe determination of the appraisal value(Note)

None

Consent has not been obtained from the lessee for disclosure of certain figures in relation to the direct capitalization method, including informationthat could be used to deduce these amounts. Disclosure of this information could damage the relationship with the lessee, potentially resulting inclaims being brought against DHR for breach of confidentiality and/or termination and endangering the long-term contractual relationship. Therefore,
DHR believes that disclosure of this information could be detrimental to unitholder value, and, except in certain instances where it was deemed thatno harm would result from disclosure, these items are not disclosed.

Appraisal value
Appraiser
Appraisal date
Item
Value based on income method
Value based on direct
capitalization method
Operating revenue
Effective gross revenue
Loss from vacancy
Operating expense
MaintenanceUtility cost
Repair
Property management
Fee
Advertisement and otherleasing cost
Tax
Insurance
Other cost
Net operating income (NOI)
Investment income oflump sum
Capital expenditure
Net cash flow (NCF)

D Project Kitahachioji III
7,450 million yen
Japan Real Estate InstituteDecember 31, 2018
Content
7,450
million yen
7,480
million yen-

Basis
Estimated by treating equally the value calculated using thedirect capitalization method and the value calculated using thediscounted cash flow method

Not disclosed (Note)

347
million yen
Not disclosed (Note)
344

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 44 -

Cap rate

Value based on Discounted
Cash Flow method
Discount rate
Terminal cap rate

million yen
4.6%

7,410
million yen
4.2%
4.8%

Assessed by adjusting basic yields in the area with spreads
attributable to the property’s location, the characteristics of thebuilding, the contract terms and conditions and othercharacteristics, in consideration of transaction yields based on
published materials by J-REITs and other transaction yields for
similar properties
Assessed by comprehensively taking into accountcharacteristics unique to the property, etc., by reference toinvestment returns of similar properties, etc.
Assessed by comprehensively taking into account upcomingchanges in investment returns, risks associated with theproperty as an investment target, general prediction of
economic growth rates, trends in real estate prices and rent
rates and all other applicable factors, by reference toinvestment returns of similar properties, etc.

Value based on cost method

7,380
million yen
Proportion of land
65.7%
Proportion of building
34.3%
Items applied to adjustments in valuation approach andthe determination of the appraisal value(Note)

None

Consent has not been obtained from the lessee for disclosure of certain figures in relation to the direct capitalization method, including informationthat could be used to deduce these amounts. Disclosure of this information could damage the relationship with the lessee, potentially resulting inclaims being brought against DHR for breach of confidentiality and/or termination and endangering the long-term contractual relationship. Therefore,
DHR believes that disclosure of this information could be detrimental to unitholder value, and, except in certain instances where it was deemed thatno harm would result from disclosure, these items are not disclosed.

Appraisal value
Appraiser
Appraisal date
Item
Value based on income method
Value based on direct
capitalization method
Operating revenue
Effective gross revenue
Loss from vacancy
Operating expense
MaintenanceUtility cost
Repair
Property management
Fee
Advertisement and otherleasing cost
Tax
Insurance
Other cost
Net operating income (NOI)
Investment income oflump sum
Capital expenditure

D Project Itabashi Shingashi
12,400 million yen
The Tanizawa Sōgō Appraisal Co., Ltd.
December 31, 2018
Content
12,400
million yen
12,500
million yen-

Basis
Estimated value based on income method by using value basedon discount cash flow method, with value based on direct
capitalization method used as a referenceNot disclosed (Note)

527
million yen
Not disclosed (Note)-

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 45 -

Net cash flow (NCF)
Cap rate

Value based on Discounted
Cash Flow method
Discount rate
Terminal cap rate525
million yen
4.2%

12,300
million yen
4.2%
4.4%

Compared the multiple transaction yields in the neighboringareas and the similar areas of the same supply and demand, andalso assess by taking into account the change prediction of net
cash flow in the future, considering the relationship with thediscount rate
Estimated the base yield of the warehouse by build-up
approach based on yields of financial products, and assess bytaking into account specific risks related to the property
Estimated on the basis of capitalization rate, in considerationof the prediction uncertainty

Value based on cost method

11,900
million yen
Proportion of land
67.5%
Proportion of building
32.5%
Items applied to adjustments in valuation approach andthe determination of the appraisal value(Note)

None

Consent has not been obtained from the lessee for disclosure of certain figures in relation to the direct capitalization method, including informationthat could be used to deduce these amounts. Disclosure of this information could damage the relationship with the lessee, potentially resulting inclaims being brought against DHR for breach of confidentiality and/or termination and endangering the long-term contractual relationship. Therefore,
DHR believes that disclosure of this information could be detrimental to unitholder value, and, except in certain instances where it was deemed thatno harm would result from disclosure, these items are not disclosed.

Appraisal value
Appraiser
Appraisal date

D Project Sagamihara
3,940 million yen
The Tanizawa Sōgō Appraisal Co., Ltd.
December 31, 2018

Item
Value based on income method

Content
3,940
million yen

Value based on direct
capitalization method
Operating revenue

3,980
million yen
204
million yen
204
million yen

Effective gross revenue

Loss from vacancy
Operating expense
MaintenanceUtility cost
Repair
Property management
Fee
Advertisement and otherleasing cost
Tax
Insurance
Other cost
Net operating income (NOI)
Investment income of30
million yen
1 million yen
3 million yen
24 million yen
0 million yen
0 million yen
174million yen
1 million yen

Basis
Estimated value based on income method by using value basedon discount cash flow method, with value based on direct
capitalization method used as a reference

Assessed by taking into consideration of the level of rent underthe existing agreement and that of similar buildings as well as
market trends thereof
Not recorded as tenant replacement is not assumed

Not recorded as borne by the lessee
Not recorded as borne by the lessee
Assessed based on ER and similar cases
Recorded based on the property management consignment
contract
Not recorded as tenant replacement is not assumed
Recorded based on materials about taxes and public dues, andexamples in similar cases
Recorded based on materials about insurance
Assessed based on similar cases

Recorded the income based on the assumption that an

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 46 -

lump sum
Capital expenditure
Net cash flow (NCF)

4 million yen

investment yield is 1%
Assessed based on ER and similar cases

170
million yen

Cap rate

Value based on Discounted
Cash Flow method
Discount rate

Terminal cap rate
Value based on cost method
Proportion of land

4.3%

3,920
million yen
4.3%

4.5%

Item
Value based on income method
Value based on direct
capitalization method
Operating revenue
Effective gross revenue
Loss from vacancy
Operating expense
MaintenanceUtility cost
Repair
Property management
Fee
Advertisement and otherleasing cost
Tax
Insurance
Other cost
Net operating income (NOI)
Investment income oflump sum
Capital expenditure
Net cash flow (NCF)
Cap rate

Estimated the base yield of the warehouse by build-up
approach based on yields of financial products, and assess byadding specific risks related to the property
Estimated on the basis of capitalization rate, in considerationof the prediction uncertainty

3,760
million yen
46.0%

Proportion of building
54.0%
Items applied to adjustments in valuation approach andthe determination of the appraisal value

Appraisal value
Appraiser
Appraisal dateCompared the multiple transaction yields in the neighboringareas and the similar areas of the same supply and demand, andalso assess by taking into account the change prediction of net
cash flow in the future, considering the relationship with thediscount rate

None

D Project Kuki VIII
6,110 million yen
The Tanizawa Sōgō Appraisal Co., Ltd.
December 31, 2018
Content
6,110
million yen
6,190
million yen-

Basis
Estimated value based on income method by using value basedon discount cash flow method, with value based on direct
capitalization method used as a referenceNot disclosed (Note)

295
million yen
290million yen
4.7%

Not disclosed (Note)

Compared the multiple transaction yields in the neighboringareas and the similar areas of the same supply and demand, andDisclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 47 -

also assess by taking into account the change prediction of net
cash flow in the future, considering the relationship with thediscount rate
Value based on Discounted
Cash Flow method
Discount rate

Terminal cap rate

6,070
million yen
4.6%

4.9%

Estimated the base yield of the warehouse by build-up
approach based on yields of financial products, and assess byadding specific risks related to the property
Estimated on the basis of capitalization rate, in considerationof the prediction uncertainty

Value based on cost method

5,830
million yen
Proportion of land
42.0%
Proportion of building
58.0%
Items applied to adjustments in valuation approach andthe determination of the appraisal value

None(Note) Consent has not been obtained from the lessee for disclosure of certain figures in relation to the direct capitalization method, including informationthat could be used to deduce these amounts. Disclosure of this information could damage the relationship with the lessee, potentially resulting inclaims being brought against DHR for breach of confidentiality and/or termination and endangering the long-term contractual relationship. Therefore,
DHR believes that disclosure of this information could be detrimental to unitholder value, and, except in certain instances where it was deemed thatno harm would result from disclosure, these items are not disclosed.

Appraisal value
Appraiser
Appraisal date
Item
Value based on income method
Value based on direct
capitalization method
Operating revenue
Effective gross revenue
Loss from vacancy
Operating expense
MaintenanceUtility cost
Repair
Property management
Fee
Advertisement and otherleasing cost
Tax
Insurance
Other cost
Net operating income (NOI)
Investment income oflump sum
Capital expenditure
Net cash flow (NCF)
Cap rate

D Project Yokkaichi
1,500 million yen
The Tanizawa Sōgō Appraisal Co., Ltd.
December 31, 2018
Content
1,500
million yen
1,450
million yen-

Basis
Estimated value based on income method by using value
based on discount cash flow method, with value based on
direct capitalization method used as a reference.

Not disclosed (Note)

78
million yen
Not disclosed (Note)
78
million yen
5.4%

Compared the multiple transaction yields in the neighboringareas and the similar areas of the same supply and demand,and also assess by taking into account the change prediction of
net cash flow in the future, considering the relationship withthe discount rate

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 48 -

Value based on Discounted Cash
Flow method
Discount rate

Terminal cap rate

1,520
million yen(from first to
eighth year)
5.3%(from ninth
year)
5.4%
5.6%

Estimated the base yield of the warehouse by build-up
approach based on yields of financial products, and assess bytaking into account specific risks related to the property
Estimated on the basis of capitalization rate, in considerationof the prediction uncertainty

Value based on cost method

1,260
million yen
Proportion of land
45.2%
Proportion of building
54.8%
Items applied to adjustments in valuation approach andthe determination of the appraisal value(Note)

None

Consent has not been obtained from the lessee for disclosure of certain figures in relation to the direct capitalization method, including informationthat could be used to deduce these amounts. Disclosure of this information could damage the relationship with the lessee, potentially resulting inclaims being brought against DHR for breach of confidentiality and/or termination and endangering the long-term contractual relationship.
Therefore, DHR believes that disclosure of this information could be detrimental to unitholder value, and, except in certain instances where it wasdeemed that no harm would result from disclosure, these items are not disclosed.

Appraisal value
Appraiser
Appraisal date
Item
Value based on income method
Value based on direct
capitalization method
Operating revenue
Effective gross revenue
Loss from vacancy
Operating expense
MaintenanceUtility cost
Repair
Property management
Fee
Advertisement and otherleasing cost
Tax
Insurance
Other cost
Net operating income (NOI)
Investment income oflump sum
Capital expenditure
Net cash flow (NCF)
Cap rate

Value based on Discounted

D Project Ibaraki Ishioka
4,090 million yen
The Tanizawa Sōgō Appraisal Co., Ltd.
December 31, 2018
Content
4,090
million yen
4,150
million yen-

Basis
Estimated value based on income method by using value basedon discount cash flow method, with value based on direct
capitalization method used as a referenceNot disclosed (Note)

214
million yen
Not disclosed (Note)
211
million yen
5.1%

Compared the multiple transaction yields in the neighboringareas and the similar areas of the same supply and demand, andalso assess by taking into account the change prediction of net
cash flow in the future, considering the relationship with thediscount rate

4,070

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 49 -Cash Flow method
Discount rate
Terminal cap rate

million yen
5.1%
5.3%

Estimated the base yield of the warehouse by build-up
approach based on yields of financial products, and assess bytaking into account specific risks related to the property
Estimated on the basis of capitalization rate, in considerationof the prediction uncertainty

Value based on cost method

4,020
million yen
Proportion of land
37.9%
Proportion of building
62.1%
Items applied to adjustments in valuation approach andthe determination of the appraisal value(Note)

None

Consent has not been obtained from the lessee for disclosure of certain figures in relation to the direct capitalization method, including informationthat could be used to deduce these amounts. Disclosure of this information could damage the relationship with the lessee, potentially resulting inclaims being brought against DHR for breach of confidentiality and/or termination and endangering the long-term contractual relationship. Therefore,
DHR believes that disclosure of this information could be detrimental to unitholder value, and, except in certain instances where it was deemed thatno harm would result from disclosure, these items are not disclosed.

Appraisal value
Appraiser
Appraisal dateiias Tsukuba
10,320 million yen
Japan Real Estate InstituteDecember 31, 2018

Item
Value based on income method

Content (Note)
10,320
million yen

Value based on direct
capitalization method
Operating revenue

10,470
million yen
645
million yen
645
million yen

Effective gross revenue
Loss from vacancy
Operating expense
Maintenance-84
million yen-

Utility cost
Repair12
million yen

Property managementFee

3 million yen

Advertisement and otherleasing cost
Tax-

Insurance
Other cost
Net operating income (NOI)
Investment income oflump sum67
million yen
0 million yen
560
million yen
3 million yen

Basis
Estimated by treating equally the value calculated using thedirect capitalization method and the value calculated using
the discounted cash flow method

Recorded rent revenue based on the current leasing contract
terms, in consideration of the leasing contract terms and thecapacity of the tenants to pay rent, etc.
Judged that recording is unnecessary, in consideration of theconditions of the lessees, competitiveness as a retail property,
the leasing contract terms and other factors

Not recorded as maintenance costs since the property isleased in a lump as a retail facility and management andoperation are been handled by the lessee themselves
Not recorded as borne by the lessee
Recorded based on management and operation plan and thelevel of repair cost of similar properties, and average annual
repair and renewal costs as noted in the engineering report
Recorded based on the rate of compensation of similar
properties and taking into consideration compensation basedon existing agreement conditions
Not recorded expenses for brokerage, advertisement, etc. asleased in bulk as a retail property over a long contract period
Recorded based on materials about taxes and public dues
Assessed based on the amount of insurance rates of similarbuildings, etc.
No costs to record in particular

Assessed with the investment yield set at 1.0%.

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 50 -

Capital expenditure
Net cash flow (NCF)
Cap rate

Value based on Discounted
Cash Flow method
Discount rate
Terminal cap rate

29 million yen
534
million yen
5.1%

10,140
million yen
4.9%
5.4%

Recorded based on the level of capital expenditure of similar
properties, the building age, and average annual repair andrenewal costs as noted in the engineering report

Assessed by using the yield of properties considered to havethe smallest investment risks as a standard, adjusting withspreads attributable to the property’s location,competitiveness as a retail property including thecharacteristics of the building, the contract terms andconditions and other characteristics, in consideration ofprediction uncertainties, transaction yields for similar
properties and results of interviews with investors, etc.
Assessed by comprehensively taking into accountcharacteristics unique to the property, etc., by reference toinvestment returns of similar properties, etc.
Assessed by comprehensively taking into account upcomingchanges in investment returns, risks associated with theproperty as an investment target, general prediction of
economic growth rates, trends in real estate prices and rent
rates and all other applicable factors, by reference toinvestment returns of similar properties, etc.

Value based on cost method

10,200
million yen
Proportion of land
66.3%
Proportion of building
33.7%
Items applied to adjustments in valuation approach andthe determination of the appraisal value(Note)

None

Indicates figures pertaining to the entire property on the appraisal report, however on this document, indicates figures equivalent to DHR’s anticipatedacquisition of 30% trust beneficiary co-ownership interest, truncated to the nearest unit.

Appraisal value
Appraiser
Appraisal date
Item
Value based on income method
Value based on direct
capitalization method
Operating revenue
Effective gross revenue
Loss from vacancy
Operating expense
MaintenanceUtility cost
Repair
Property management
Fee
Advertisement and otherleasing cost
Tax
Insurance
Other cost
Net operating income (NOI)

Aoyama Tailor Bunkyo Sengoku Ekimae Store762 million yen
Japan Real Estate InstituteDecember 31, 2018
Content
762
million yen
762
million yen-

Basis
Estimated by treating equally the value calculated using thedirect capitalization method and the value calculated using thediscounted cash flow method

Not disclosed (Note)36

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 51 -

Investment income oflump sum
Capital expenditure
Net cash flow (NCF)
Cap rate

Value based on Discounted
Cash Flow method
Discount rate
Terminal cap rate

million yen
Not disclosed (Note)
33
million yen
4.4%

761
million yen
4.0%
4.5%

Assessed by using the yield of properties considered to havethe smallest investment risks as a standard, adjusting withspreads attributable to the property’s location, competitivenessas a retail property including the characteristics of the building,the contract terms and conditions and other characteristics, inconsideration of prediction uncertainties, transaction yields for
similar properties and results of interviews with investors, etc.
Assessed by comprehensively taking into accountcharacteristics unique to the property, etc., by reference toinvestment returns of similar properties, etc.
Assessed by comprehensively taking into account upcomingchanges in investment returns, risks associated with theproperty as an investment target, general prediction of
economic growth rates, trends in real estate prices and rent
rates and all other applicable factors, by reference toinvestment returns of similar properties, etc.

Value based on cost method

794
million yen
Proportion of land
93.4%
Proportion of building
6.6%
Items applied to adjustments in valuation approach andthe determination of the appraisal value(Note)

None

Consent has not been obtained from the lessee for disclosure of certain figures in relation to the direct capitalization method, including informationthat could be used to deduce these amounts. Disclosure of this information could damage the relationship with the lessee, potentially resulting inclaims being brought against DHR for breach of confidentiality and/or termination and endangering the long-term contractual relationship. Therefore,
DHR believes that disclosure of this information could be detrimental to unitholder value, and, except in certain instances where it was deemed thatno harm would result from disclosure, these items are not disclosed.

Appraisal value
Appraiser
Appraisal date

FOLEO Shobu
5,050 million yen
Japan Real Estate InstituteDecember 31, 2018

Item
Value based on income method

Content
5,050
million yen

Value based on direct
capitalization method
Operating revenue

5,080
million yen
314
million yen
314
million yen

Effective gross revenue

Loss from vacancy

Operating expense
Maintenance-40
million yen-

Basis
Estimated by treating equally the value calculated using thedirect capitalization method and the value calculated using thediscounted cash flow method

Recorded rent revenue based on the current leasing contract
terms, in consideration of the leasing contract terms and thecapacity of the tenants to pay rent, etc.
Judged that recording is unnecessary, in consideration of theconditions of the lessee, competitiveness as a retail property,
the leasing contract terms and other factors

Not recorded as maintenance costs since the property is leased
in a lump as a retail facility and management and operation are

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 52 -

Utility cost
Repair

4 million yen

Property managementFee

4 million yen

Advertisement and otherleasing cost-

Tax
Insurance

31 million yen
0 million yen

Other cost
Net operating income (NOI)
Investment income oflump sum
Capital expenditure

Net cash flow (NCF)
Cap rate

Value based on Discounted
Cash Flow method
Discount rate

Terminal cap rate273
million yen
1 million yen
11 million yen

264
million yen
5.2%

5,010
million yen
4.9%

5.4%

been handled by the lessee itself
Not recorded as borne by the lessee
Recorded based on management and operation plan and thelevel of repair cost of similar properties, and average annual
repair and renewal costs as noted in the engineering report
Recorded based on the rate of compensation of similar
properties and taking into consideration compensation basedon existing agreement conditions
Commission fee and advertising fee when looking for a new
tenant are not recorded as leased in bulk as a retail property
over a long contract period
Recorded based on materials about taxes and public dues
Recorded based on the amount of insurance rates of similarbuildings, etc.
No costs to record in particular

Assessed with the investment yield set at 1.0%.
Recorded based on the level of capital expenditure of similar
properties, the building age, and average annual repair andrenewal costs as noted in the engineering report

Assessed by using the yield of properties considered to havethe smallest investment risks as a standard, adjusting withspreads attributable to the property’s location, competitivenessas a retail property including the characteristics of the building,the contract terms and conditions and other characteristics, inconsideration of prediction uncertainties, transaction yields for
similar properties and results of interviews with investors, etc.
Assessed by comprehensively taking into accountcharacteristics unique to the property, etc., by reference toinvestment returns of similar properties, etc.
Assessed by comprehensively taking into account upcomingchanges in investment returns, risks associated with theproperty as an investment target, general prediction of
economic growth rates, trends in real estate prices and rent
rates and all other applicable factors, by reference toinvestment returns of similar properties, etc.

Value based on cost method

5,620
million yen
Proportion of land
68.2%
Proportion of building
31.8%
Items applied to adjustments in valuation approach andthe determination of the appraisal value

Appraisal value
Appraiser
Appraisal date
Item
Value based on income method

None

Daiwa Roynet Hotel Nagoya Shinkansenguchi
4,540 million yen
DAIWA REAL ESTATE APPRAISAL CO., LTD.
December 31, 2018
Content
4,540
million yen

BasisApplied value based on discount cash flow method by judging
it is more convincing with value based on direct capitalization
method used as a reference

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 53 -

Value based on direct
capitalization method
Operating revenue
Effective gross revenue
Loss from vacancy

4,560
million yen
252
million yen
252
million yen-

Operating expense
MaintenanceUtility cost
Repair
Property management
Fee
Advertisement and otherleasing costTax

48 million yen
5 million yen
2 million yen

Insurance
Other cost
Net operating income (NOI)

0 million yen
2 million yen
203million yen
1 million yen

Investment income oflump sum

Capital expenditure
Net cash flow (NCF)
Cap rate

Value based on Discounted
Cash Flow method
Discount rate
Terminal cap rate

37 million yen

22 million yen
182
million yen
4.0%

4,530
million yen
3.8%
4.2%

Assessed based on assumed rental income and by taking into
consideration the capacity of the hotel to pay rent and the
medium- to long- term competitiveness of the subject property
Not recorded as assumed stable over the medium- to- longterm, considering tenant attribute and over the characteristics
unique to the contact, etc.
Not recorded as borne by the lessee
Not recorded as borne by the lessee
Assessed based on engineering report
Determined estimated fee is appropriate and recorded
JPY200,000 monthly
Not recorded assuming long-term occupancy by the tenant
Recorded based on actual values in consideration of burden
levels, land price trends, etc.
Recorded estimated fee
Assessed based on previous actual costs, etc.

Assessed based on assuming investment yield of 1.0%, byconducting a comprehensive assessment from the perspectiveof both the operational and procurement aspects regarding theactual management condition, etc. of one-time investment
gains
Assessed by referring to capital expenditure noted in theengineering report
Assessed by adjusting yields in similar types with spreads
attributable to the property’s location, the characteristics of thebuilding and conditions, additionally in consideration of cap
rate of appraisal value for J-REIT properties in similar areas ofthe same supply and demand

Appraised by comparing with cases of similar real estatetransactions and adding individuality of real estate to yield offinancial assets
Giving consideration to future uncertainty such as possibilityof increased capital expenditure due to aging of the property,change of market trend and loss of liquidity because of passageof timeValue based on cost method

6,600
million yen
Proportion of land
84.8%
Proportion of building
15.2%
Items applied to adjustments in valuation approach andthe determination of the appraisal value

Appraisal value
Appraiser
Appraisal date

None

Nursery Room Berry Bear Omori Nishi Welcia Ota Omori Nishi Store
1,380 million yen
DAIWA REAL ESTATE APPRAISAL CO., LTD.
December 31, 2018

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 54 -

Item
Value based on income method

Content
1,380
million yen

Value based on direct
capitalization method
Operating revenue
Effective gross revenue
Loss from vacancy
Operating expense
MaintenanceUtility cost
Repair
Property management
Fee
Advertisement and otherleasing cost
Tax
Insurance
Other cost
Net operating income (NOI)
Investment income oflump sum
Capital expenditure
Net cash flow (NCF)
Cap rate

1,400
million yen-

Value based on Discounted
Cash Flow method
Discount rate

1,370
million yen
4.1%

Terminal cap rate

Basis
Applied value based on discount cash flow method by judging
it is more convincing with value based on direct capitalization
method used as a referenceNot disclosed (Note)

60 million yen
Not disclosed (Note)
60 million yen
4.3%

4.5%

1,470
million yen
Proportion of land
83.4%
Proportion of building
16.6%
Items applied to adjustments in valuation approach andthe determination of the appraisal value

Assessed based on special characteristics as a child day-carefacility, future risks such as uncertainty of population trend,and considering condition of property such as location,building grade, property age and relationship of rights, andwith comparison to similar assets. Also adjusted spreads due toother conditions
Appraised by comparing with cases of similar real estatetransactions and adding individuality of real estate to yield offinancial assets
Assessed in consideration of marketability of property after
holding period of cap rate

Value based on cost method(Note)

None

Consent has not been obtained from the lessee for disclosure of certain figures in relation to the direct capitalization method, including informationthat could be used to deduce these amounts. Disclosure of this information could damage the relationship with the lessee, potentially resulting inclaims being brought against DHR for breach of confidentiality and/or termination and endangering the long-term contractual relationship. Therefore,
DHR believes that disclosure of this information could be detrimental to unitholder value, and, except in certain instances where it was deemed thatno harm would result from disclosure, these items are not disclosed.

* Distribution of this material: This material is distributed to “Kabuto Club” (a media correspondents’ club at the Tokyo Stock
Exchange), the press club at the Ministry of Land, Infrastructure, Transport and Tourism and the press club for construction
trade newspapers at the Ministry of Land, Infrastructure, Transport and Tourism.
* DHR’s website: https://www.daiwahouse-reit.co.jp/en/

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 55 -

<Attachments>
1.

Photograph and location map of the Anticipated Acquisitions

LB-057 D Project Kitahachioji I

LB-058 D Project Kitahachioji II

LB-059 D Project Kitahachioji III

LB-060 D Project Itabashi Shingashi

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 56 -

LB-061 D Project Sagamihara

LB-062 D Project Kuki VIII

LB-063 D Project Yokkaichi

LB-064 D Project Ibaraki Ishioka

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 57 -

RM-012 iias Tsukuba

RR-007 Aoyama Tailor Bunkyo Sengoku Ekimae Store

RR-008 FOLEO Shobu

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 58 -

HO-003 Daiwa Roynet Hotel Nagoya Shinkansenguchi

OT-005 Nursery Room Berry Bear Omori Nishi Welcia Ota Omori Nishi Store

2.

Portfolio status after the acquisition of the Anticipated Acquisitions
Asset class

Logistics properties
Residential properties
Retail properties
Hotel properties
Other assets
Portfolio Total(Note)

Number of properties
67 properties
133 properties
21 properties
3 properties
5 properties
229 properties(Anticipated) acquisition price(million yen)
385,149
246,424
95,33010,77012,860750,533

Investment ratio (Note)
51.3%
32.8%
12.7%
1.4%
1.7%
100.0%“Investment ratio” indicates the ratio of the (anticipated) acquisition price for each asset to the total (anticipated) acquisition price, rounded to thenearest tenth.

Disclaimer: This announcement is prepared for the public disclosure of acquisition and leasing of trust beneficiary interests in domestic
real estate by DHR and has not been prepared for the purpose of soliciting investment.
- 59 -