Earnings Announcement for the 11Th Fiscal Period

July 14, 2011

Earnings Announcement for the 11th Fiscal Period

(Fiscal Period Ended May 2011) This document is provided for informational purposes and should not be construed as an offer or solicitation of an offer to buy or sell any specific product, including investment units. We advise you to inquire with each securities company with regards to the purchase of Daiwa Office Investment Corporation’s investment units.

This document is not intended to provide information meeting the requirements of Japan’s new Financial Instruments and Exchange Law or Investment Trust and Investment Corporation Law, or by the associated cabinet orders, cabinet office ordinances, or rules, or by the rules governing companies listed on the Tokyo Stock Exchange, or any other applicable rules, nor is it a disclosure document or statement of financial performance prepared in accordance with the provisions of any of the foregoing.

This document contains forward-looking statements. However, these forward-looking statements are based on certain assumptions and judgments made using currently available information, and there are a number of known and unknown risks and uncertainties. These forward-looking statements are not a guarantee of future performance or management results, and actual results may differ materially from any explicit or implicit forecasts contained herein.

Although the information contained in this document is the best available at the time of publication, no assurances can be given regarding the accuracy and certainty of this information. The content of this document can be modified or withdrawn without prior notice.

Section 1 Section 4 Performance Highlights and Forecasts Financial Strategy

th th th 11 Fiscal Period Topics and 12 & 13 Forecasts 4 Status of Interest-bearing Liabilities 27 th Highlights of the 11 Fiscal Period 5 Efforts for uncollateralized loans 30 th th Highlights of Forecasts for the 12 and 13 Fiscal Period 6 Unitholders 31 Issue and Activities of the Investment Corporation 7 Upside Potential 32 Medium-term Target of Total Acquisition Price 8 Competitive Edges 33

Section 2 Section 5 External Growth Appendix

The Real Estate Market and Property Acquisitions 10 Summary of Results for the 11th Fiscal Period 35 Acquisition Policy and Approach 11 Forecasts (12th and 13th Fiscal Periods) 36 Recent Property Acquisition 12 Major Financial Data 38 Appraisal Values at End of Fiscal Period 39 Portfolio Performance Summary 41 Section 3 Organization of the Asset Management Company 46 Internal Growth Positioning of Asset Manager within Daiwa Securities Group 47

Portfolio Map 18 Analyses of Leasing Income 19 Influence of the Great East Japan Earthquake 23 Properties Subject to Leasing Improvement 25

11th Fiscal Period Topics

Properties Acquisition ¾ Daiwa Kayabacho Building (Date of Delivery: 2011/3/25 Acquisition Price: 5,600 million yen) ¾ Jimbocho Place (Date of Delivery: 2011/3/29 Acquisition Price: 3,550 million yen) Property Management and Management Situation ¾ Occupancy Rate at the end of May 2011 : 95.4% ( at the end of Nov. 2010 : 95.9%) ¾ Average Contract Rent as of end-May 2011 : 19,692 yen (compared to the end of Nov. 2010 : -3.5%) Financial Situation ¾ Interest-bearing liabilities at the end of May 2011 : 86,250 million yen ( LTV (based on acquisition price) at the end of May 2011: 30.0%) ¾ The rate of uncollateralized loans compared to all interest-bearing liabilities at the end of May 2011 : 30.7% ( the rate at the end of Nov.2010 : 16.9%)

Forecast of 12th Fiscal Period and 13th Fiscal Period

Properties Acquisition ¾ E SPACE TOWER (Date of Delivery : 2011/7/8 Acquisition Price : 24,000 million yen) Property Management and Management Situation ¾ Estimated Occupancy Rate; at the end of Nov. 2011: 90.7%, at the end of May 2012 : 90.4% Financial Situation ¾ Interest-bearing liabilities after acquiring E SPACE TOWER : 111,750 million yen (LTV (based on acquisition price) : 35.9%) ¾ Conducting negotiation with lenders to have all loans collateralized, and then some loans are assumed to be repaid ahead of schedule.

Results of the 11th Fiscal Period (million yen) 10th Fiscal Period 11th Fiscal Period (ended Nov. 2010) (ended May 2011) Change Main Reason (33properties) (35 properties) Acquisition of Daiwa Kayabacho Build. & Jimbocho Place(+95mil yen), the lease fee from the properties acquired in 10th Operating Revenue 6,424 6,758 + 334 Fiscal Period (+141mil yen), increasing in the lease fee from other properties Operating Cost 3,942 3,935 -7 Expenses related to rent business (-28mil yen), Asset management fee (+25mil yen)

Operating Income 2,481 2,823 + 342

Ordinary Income 1,273 1,587 + 313

Non-operating expenses 1,212 1,245 +32

Net Income 1,282 1,453 + 170 Account for extraordinary expenses (Loss on disaster (70mil yen), Provision for loss on disaster (63mil yen))

Number of Investment Unit 395,798 unit 395,798 unit －

Dividend per Unit 3,240 yen 3,671 yen +431yen

Occupancy Rate 95.9％ 95.4％ NOI Yield (annualized) 3.2％ 3.5％

(Reference) Previous Forecast *of 11th Fiscal Period 11th Fiscal Period (ended Nov.30, 2010) Change Main Reason (35 properties) (35 properties) Operating Revenue 6,786 6,758 -27 Decrease in utilities income (-73 mil yen), Increase in other lease business revenue (+42mil yen) 4,124 3,935 Decrease in Expenses related to rent business (-149mil yen) and Other operating expenses (-39mil Operating Cost -189 yen) 1,424 1,453 Account for extraordinary expenses (Loss on disaster (70mil yen), Provision for loss on disaster (63mil Net Income +28 yen)) Dividend per Unit 3,600 yen 3,671 yen + 71yen

Occupancy Rate 93.4％* 95.4％ * The occupancy rate of 33 existing properties Announced on March 3, 2011

Forecasts 12th Fiscal Period Forecast

(million yen) The rent revenue of Daiwa Kayabacho Building and Jimbocho Place acquired 12th FP 13th FP 11th FP Difference Difference Forecast Forecast during the 11th Fiscal Period will fully contribute. Rent revenue will increase (May 2011) compared to compared to (Nov. 2011) (May 2012) (35 properties) 11th FP 12th FP due to the acquisition of E SPACE TOWER. And rent revenue of existing (36properties) (36properties) properties will remain unchanged but occupancy rates will decrease.

Operating Revenue 6,758 7,420 +661 7,207 -213 Rental business expenses will increase due to properties acquired in the 11th Fiscal Period and the acquisition of E SPACE TOWER Operating Cost 3,935 4,238 +303 4,137 -100 Non-operating expenses will temporarily rise significantly as the Investment Operating Income 2,823 3,182 +358 3,069 -112 Corporation aims to attain unsecured status for all borrowings (early repayment costs are anticipated to temporarily arise due to early repayments of Non-Operating expenses 1,245 1,557 +312 1,147 -409 borrowings).

Ordinary Income 1,587 1,624 +37 1,921 +296 13th Fiscal Period Forecast Net Income 1,453 1,622 +169 1,919 +296 The rent revenue of E SPACE TOWER acquired in the 12th Fiscal Period will Number of Investment Unit 395,798 unit 395,798 unit 395,798 unit increase but deterioration of operating revenue is forecast due to tenants moving out of existing properties and other factors Dividend per Unit 3,671 yen 4,100 yen +429 yen 4,850 yen +750yen Rental business expenses, asset management fees, etc. will decrease

Expected Occupancy Rate 95.4％ 90.7% 90.4% The increase of non-operating expenses anticipated for the 12th Fiscal Period is only temporary, and non-operating expenses for the 13th Fiscal Period and Expected NOI Yield 3.5％ 3.5% 3.4% onwards will significantly decrease

BalanceBalance SheetSheet ofof ththee 11th11th FiscalFiscal PeriodPeriod (Fiscal(Fiscal PeriodPeriod endedended May,May, 2011)2011) （：） Asset Issues and Activities Unit million yen Liability Issues and Activities Promoting Property Purchases Diversify Financing Means Î Acquired the Daiwa Kayabacho Building Î Strengthen financial base by diversifying and Jimbocho Place in the 11th Fiscal Liabilities lenders and improving conditions for Period procurement, etc. Î Acquired E SPACE TOWER, second 98,392 Reduce Interest Rate Costs largest in scale following Shinjuku Maynds External Growth Financial Strategy Î Tower, in the 12th Fiscal Period (July Growth through asset Continually strive to reduce costs such as Status of interest- 2011) acquisitions interest rate reduction through change of bearing liabilities sponsors and improvement of financial Î Pay close attention to tenant trends and P12~16 structure acquire properties with due consideration Assets P27~30

Rebuilding Leasing Strategies 298,626 Increase Ratio of Unsecured Borrowings Î Although business reorganizations and Net Assets Î Continue acquiring properties by procuring such of tenants are seen amidst the Internal Growth unsecured borrowings 200,234 continued stagnation of the Japanese Leasing Î Aim to attain unsecured status for all economy, the Investment Corporation Improvement borrowings through negotiations with won’t decrease rent fee solely for purpose P25 lenders to improve the occupancy rate. Financial Strategy Î Aim to improve property value through Status of Net Asset Issues and Activities renewal of common-use areas of buildings unitholders Group Support where tenants have vacated P31 Î The business base of major unitholders will Strengthening Tenant Relations be stabilized by having the Daiwa Securities ForecastForecast EPSEPS forfor thethe 12th12th FiscalFiscal PeriodPeriod Î Strengthen relations with tenants through Group implement loans with the Investment newly establishing a marketing promotion 4,100 yen Corporation’s investment units as collateral. department Stabilization of unitholder composition is thus expected ForecastForecast EPSEPS forfor thethe 13th13th FiscalFiscal PeriodPeriod 4,850 yen

TotalTotal AcquisitionAcquisition PricePrice

Medium-term Target to achieve a total acquisition price of 350 billion yen at early stage by taking advantage of the low LTV

(Billion yen) Total Acquisiton Price 400.0 LTV (based on acquisiton price) 70.00% Expected LTV 350.0 350.0 60.00%

300.0 50.00%

250.0 40.00% 200.0 30.00% 311.3 150.0 287.0 283.4 287.3 265.0 265.0 265.0 269.1 278.1 20.00% 100.0

130.4 138.4 50.0 110.8 10.00% 79.5

0.0 0.00% Listed 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th As of July Period Period Period Period Period Period Period Period Period Period Period 2011

TheThe RealReal EstateEstate MarketMarket andand TradingTrading PerformancePerformance DI=Diffusion Index (Above (Above DI=Diffusion Index whereas below

(Number) Source: Compiled by the Investment Corporation based on data from the “Real Estate Transaction Survey” of the (Case) Urban Research Institute (Mizuho Trust and Banking’s think tank) and information from the Bank of Japan’s website 800 30 Number of Transactions 700 20 Lending Stance DI (Real Estate) 0 is severe) is

Number of Transactions 600 Lending Stance DI (All Industries) 10 500 0 0 400 -10 is easy (accommodating), 300 -20 200 -30 100 -40 0 -50 2005 2nd 2006 1st Half 2006 2nd 2007 1st Half 2007 2nd 2008 1st Half 2008 2nd 2009 1st Half 2009 2nd 2010 1st Half 2010 2nd 2011 1st Half 2011 2nd 2012 1st Half Half Half Half Half Half Half Half Subprime Loan (Billion yen) Boom Period Adjustment Period Expanding Period Problem 350

300 287.0 283.4 278 287 265.0 265.0 265.0 269 Total Acquisition Price 250

200 138.4 150 130.4 110.8 100 79.5 Select excellent properties 50 for future growth

0 Listed 1st Period 2nd Period 3rd Period 4th Period 5th Period 6th Period 7th Period 8th Period 9th Period 10th Period 11th Period 12th Period 13th Period

Medium-term target to achieve a total acquisition price of 350 billion yen at an early stage

DistributionDistribution ChartChart ofof PortfolioPortfolio PropertiesProperties Acquisition Policy (Total Floor Area (㎡) Continue investing heavily in the five central wards of Tokyo. Portfolio Properties 120,000 For the time being, invest heavily in younger A class buildings and younger B class buildings (1) within 20 years of building age. Aim to improve stability and profitability of our portfolio by achieving new buildings A Class Buildings 100,000 Consider property replacement, such as selling Zone (2) properties and purchasing Shinjuku Maynds Tower InvestmentInvestment RatioRatio Zone (1) properties. AreaArea RatioRatio 55 Central Central Wards Wards 92.3% 80,000 Investment Target Approach for the Property Acquisition TokyoTokyo 6.2% MetropolitanMetropolitan RegionalRegional Cities Cities 1.5% Gain advantage in the purchase competition by constantly maintaining abundant cash ClassificationClassification RatioRatio 60,000 reserves and utilize the support capacity of our sponsor, etc. to lead to negotiation at more ＡＡClassClass 43.0% advantageous terms than competitors ＢＢClassClass 57.0% Not belonging to a group comprised of real estate companies, etc., allows for collecting various types of property information 40,000 Expanding new pipelines by acquiring debt portions of beneficiary rights for which money claims are held in trust and where real estate have been established as collateral. E SPACE TOWER (1) Strengthen alliance with the Daiwa Securities Group and exert the Group’s strengths in the areas of property information collection and joint projects, etc. to proactively take 20,000 B Class Buildings advantage of the marketing ability of the Daiwa Securities Group Aim to improve stability Daiwa Kayabacho Build. (2) and profitability of our portfolio by achieving new buildings Jimbocho Place

0 *A class buildings: Total floor area is over 30,000㎡ 0.0 10.0 20.0 30.0 40.0 50.0 60.0 ** B class buildings: Total floor area over 2,000㎡ but less than 30,000㎡ (Building Age) This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature , nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment. 11 Recent Property Acquisition (1)

Daiwa Kayabacho Building

AcquisitionAcquisition PricePrice 5.60 Billion yen Convenient Location in Tokyo The property is located within about a 3-minute walk to Expected NOI* 286 Million yen Expected NOI* Kayabacho Station on the Tokyo Metro Tozai Line and Hibiya Line and walking distance to Nihombashi Station on the Tokyo Metro Tozai Line and Ginza Line and on Tokyo Municipal Asakusa Line. This area is one of the major financial business areas in Japan, centered on the Tokyo Stock Exchange. Sponsor Support The property is a first property which the Investment Corporation has acquired from the sponsor group, Daiwa Securities Group. The property will be the youngest building in out portfolio and is highly competitive for its high-spec.

Location Nihombashi Kayabacho 1-chome, Chuo-ku Site Area 880.35㎡ Structure S/SRC Floor B1/8F Total Floor Area 5,843.65㎡ Leasable Floor Area 5,899.11㎡ Construction April 30, 2010 Acquisition Price 5.60 Billion yen Occupancy Rate 100.0％ (as of May 31, 2011) * Expected NOI is described as the figure released on March 3, 2011 Date of Delivery March 25, 2011

Jimbocho Place

AcquisitionAcquisition PricePrice 3.55 Billion yen Convenient location in Tokyo ExpectedExpected NOI*NOI* 180 Million yen The property is located within about a 2-minute walk to Jimbocho Station on the Tokyo Metro Hanzomon Line or the Tokyo Municipal Mita Line or Shinjuku Line and about a 3-minute walk to Kudanshita Station on the Tokyo Metro Tozai Line or Hanzomon Line or the Tokyo Municipal Shinjuku Line.

Leasing Agreement The Investment Corporation entered into a leasing agreement with Tokyu Land Corporation for vacant floors of the Property. And the Property is a new building and maintains the high competitive edge for the equipment spec., Location Kanda Jimbocho 3-chome Chiyoda-ku so the Property is expected to ensure stable Site Area 500.05㎡ profitability in the future. Structure S Floor 9F Total Floor Area 3,496.44㎡ Leasable Floor Area 2,889.34㎡ Construction February 9, 2010 Acquisition Price 3.55 Billion yen Occupancy Rate 100.0％ (as of May 31,2011) * Expected NOI is described as the figure released on March 3, 2011 Settlement Date March 29, 2011

E SPACE TOWER

AcquisitionAcquisition PricePrice 24.00 Billion yen Convenient location in Tokyo ExpectedExpected NOI*NOI* 1,151 Million yen The property is located within about a 7-minute walk to Shibuya Station on the JR Lines and on the Tokyo Metro Lines and a 3-minute walk to Shinsen Station on the Keio Inokashira Line.

Over 300 Billion yen of AUM After the acquisition of the property, the total amount of asset under management of the Investment Corporation (based on acquisition price) reached 311.345 billion yen. We expect that the growth in the total amount of AUM will increase our presence in the J-REIT market.

Location Maruyamacho Shibuya-ku, Tokyo Site Area 2,998.38㎡ Structure S/SRC Floor B1/15F Total Floor Area 18,145.04㎡ Leasable Floor Area 13,960.74㎡ Construction October 31, 2002 Acquisition Price 24.00 Billion yen Occupancy Rate 89.3％ (as of July 8,2011)

* Expected NOI is described as the figure released on June 30, 2011 Settlement Date July 8, 2011 This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature , nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment. 14 Recent Property Acquisition (3) -2

Reason to Acquire E SPACE TOWER MassiveMassive OfficeOffice SpaceSpace SupplySupply**

Superior Location

Î About a 7-minute walk to Shibuya Station on the JR Lines and on the Tokyo Metro Î Accumulation of vigorous business enterprises as IT-related enterprises is Shinjuku-Ku remarkable in this area and demand for office space is high. Shinjuku Station Î The area near Shibuya Station has less supply of large-scale office buildings Chuo-Ku Chiyoda-Ku compared to other office area. Tokyo Positive Contribution to the portfolio Shibuya-Ku Station Î After the acquisition of the Property, the average age of buildings in our portfolio improved from 21.2 years to 20.3 years. Shibuya Shinbashi Î The portion of Shinjuku Maynds Tower, based on acquisition price, decreased from Station Station 46.6% to 43.0%. Shinagawa- Meguro-ku Minato-Ku ku 1.0% Competitive Building Spec. Shibuya-ku 9.0% 4.6% Î 15 stories above ground and 1 below, the total floor area of approximately 5,488 tsubo, its standard floor features approximately 302 tsubo of floor space and Shinjuku-ku Chiyoda-ku 11.7% 37.2% 2,800mm ceiling height for a standard floor. Shinagawa Î Minato-ku Station The large-scale office building relatively new and competitive with high-spec near 24.9% Shibuya Station, like the Property is rare. Chuo-ku 11.7% Shinagawa-Ku * Map of Large office buildings (over 10,000 m2 of total floor area) which are planning to be constructed near Tokyo 5 wards after 2011 and pie-chart showing total area of these buildings Data: “Nikkei Real Estate Market News” in the June 2011 issue “ Large-scale office building Map constructed in the future” This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature , nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment. 15 Recent Property Acquisition (3) -3

Regional Characteristics around JR Shibuya station %% ShareShare ofof industriesindustries

Shibuya Ward Tokyo 5 Central Wards Information & Communication Other 16% 70% Service Information & 14% Communication Other 24% 55% Service All over Japan 21% Information & Communication 10% Service 10% Data: Bloomberg Other 80% Pie chart is showing the rate of the number of the headquarter of enterprises listed on 1st Section of TSE, 2nd Section of TSE, Mothers of TSE, and JASDAQ located in each place per sector. TenantsTenants inin thethe large-scalelarge-scale officeoffice buildingsbuildings

Shibuya Hikarie DeNA Co., Ltd. / NHN Japan Corp. Shibuya Mark City CyberAgent, Inc. / McAfee, Inc.

Sumitomo Fudosan First Tower mixi, Inc. / PIA Corporation / Groupon Japan, Inc. Cerulean Tower GMO Internet, Inc.

Data: Nikkei Real Estate Market News and HP of each company This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature , nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment. 16 Section 3 Internal Growth Portfolio Map ~ Up or down in occupancy rate compared with previous Fiscal Period ~

55 CentralCentral WardsWards ofof TokyoTokyo As of May 31, 2011 RegionalRegional CitiesCities Occupancy rate compared with previous Fiscal Period Up : 8 buildings Down : 5 buildings

Shinjuku Ward Daiwa Misakicho Daiwa Sarugakucho Unchanged : 20 buildings Daiwa Jimbocho New Properties : 2 buildings Jimbocho Place Daiwa Kudan Sunline Bldg. No.7 Daiwa Kodenmacho Chiyoda Ward Nihonbashi MS Bld. Shinjuku Maynds Tower Tokyo Station Daiwa Minami-Senba Chuo Daiwa Nihonbashi Honcho Ward Shibuya Daiwa Jingumae Daiwa Kayabacho Build. Ward Daiwa Ginza Annex Daiwa Kyobashi SHIBUYA Daiwa Minami Aoyama Daiwa Ginza 1-chome TokyoTokyo MetropolitanMetropolitan AreaArea EDGE Daiwa Ginza BPS Square Kyodo Bldg. (Nishishimbashi) Daiwa Tsukiji Daiwa Shibashi510 Daiwa Tsukiji616 Daiwa Onarimon Daiwa Tsukishima Daiwa A Hamamatsucho E SPACE TOWER Daiwa Shibuya SS (July 2011) Daiwa Shibadaimon Daiwa Higashi-Ikebukuro Shibuya Station Daiwa Azabudai

Daiwa Shibaura Daiwa Kinshicho Minato Ward Benex S-3 Tokyo

Daiwa Shinagawa North

OccupancyOccupancy RateRate andand NOINOI YieldYield NOI Compared to Previous Fiscal Period

Occupancy Rate(%) 100% (1)(1) TheThe 11th11th FiscalFiscal PeriodPeriod +408 million yen 99.0% 95.9% 98.2% 98.3% 95.4% Acquired Daiwa Kayabacho Building and Jimbocho Place 97.6% 97.7% 97.0% 97.4% 95% The Properties acquired during the 10th Fiscal Period fully contributed. The occupancy rate for the 11th Fiscal Period was slightly down to 92.8% 90.7% 95.4, but rent revenue of existing properties increased. 90% Occupancy Rate 90.4%

85.7% 85% (2)(2) TheThe 12th12th FiscalFiscal PeriodPeriod +535 million yen (Million yen) (Yield (%)) Daiwa Kayabacho Building and Jimbocho Place acquired during the 9,000 9.0% th NOI (Million yen): Rent revenue + Other lease business revenue - Expenses 11 Fiscal Period will fully contribute. related to rent business + Depreciation th 8,000 NOI yield (%) : NOI / Period average acquisition price 8.0% By acquiring E SPACE TOWER during the 12 Fiscal Period, NOI ① ② ③ will increase. 7,000 6,895 7.0% 6,373 6,334 The level of tenant cancellations in the 12th Fiscal Period is frecasted 5,915 6,000 6.0% to be same with recent years, but not to recover the occupancy rate 5,409 5,275 5,133 th 4,922 4,873 by decreasing rent fee aggressively, the occupancy rate in the 12 5,000 5.0% 4,465 Fiscal Period estimated to be 90.7%. 3,974 4,000 4.0% 3,143 3,282 3,000 3.0% (3)The(3)The 13th13th FiscalFiscal PeriodPeriod -134 million yen E SPACE TOWER acquired during the 12th Fiscal Period will fully 2,000 2.0% contribute. 1,000 1.0% As it is for the 12th Fiscal Period, the Investment Corporation will not decrease rent fee for solely purpose to improve the occupancy rate. 0 0.0% th 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th The occupancy rate for the 13 Fiscal Period is estimated to be down Period Period Period Period Period Period Period Period Period Period Period Period Period to 90.4%.

Contract Rent* Increase and Reduction （Million yen） Contract Rent* Increase and Reduction RatioRatio ofof ContractContract RentRent Revisions*Revisions* 1,150

11th Period 38.7% 61.3%

Increase from New Leases 10th Period 55.2% 39.6% 5.2% 1,100 Increase by New Acquisition

9th Period 28.6% 68.5% 2.8%

Decrease 1,050 from Tenants’ Cancellations 8th Period 37.5% 44.5% 18.1%

Decrease from Rent Revisions 7th Period 10.9% 51.6% 37.5%

1,000 End of May 2011 End of Nov. 2010 0% 20% 40% 60% 80% 100% Monthly Contract Rent Monthly Contract Rent * Monthly Contact Rent means a total final ret from tenants who contracted by the end of the Unchanged Decrease Increase *Based on leased space Fiscal Period.

＊ NewNew LeasesLeases andand CancellationsCancellations＊ AverageAverage ContractContract RentRent andand MarketMarket RentRent (Case) (yen/tsubo)

40 28,000 33 30 31 30 24 17 20 16

6 10 5 4 24,000

-10 -20 -12 20,000 -20 -14 -19 -30 -24

-40 16,000 -50 -53 -60 7th Period 8th Period 9th Period 10th Period 11th Period

New Leases 12,000 Cancellations 4th Period 5th Period 6th Period 7th Period 8th Period 9th Period 10th Period 11th Period Difference between New Leases and Cancellations Avrage Contract Rent * Miki Shoji Tokyo 5 Central Wards Office Rent Co st Space Better Consolidation Reduction Other Total Reduction Expansion Location CBRE Asking rent in Tokyo 5 Central Wards (excluding common area charge)

New Leases 16014416 Cancellations 10610412 * Average of rent that tenants contracted by the end of each Fiscal Period pay ＊Excluding residence and warehouse

MajorMajor TenantsTenants TopTop 1010 ListList PiePie ChartChart ofof IndustriesIndustries ofof TopTop 5050 TenantTenant

Leased Space % of Total Leased Tenant Name Property ** (m2) Space ***

Not disclosed * Daiwa Tsukishima 6,379.88 3.6% Other 17.4% Services Trend Micro Incorporated Shinjuku Maynds Tower 6,309.84 3.6% Retail Trade 25.7% 4.1% Not disclosed * Daiwa Kayabacho Build. 5,899.11 3.2% Construction 4.2% UCC Holdings Co., Ltd. Daiwa Onarimon 5,091.47 2.7% Electric Appliances Information & EMC Japan Shinjuku Maynds Tower 4,980.78 2.7% 4.7% Foods Communication 4.8% 16.7% Sekisui House, Ltd. Shinjuku Maynds Tower 4,498.57 2.4% Precision Instruments 5.9% Real Estate Not disclosed * Shinjuku Maynds Tower 4,316.90 2.3% Banks 10.4% 6.0% Not disclosed * Shinjuku Maynds Tower 4,114.50 2.2%

SUN WAVE CORPORATION Daiwa Sarugakucho 3,657.43 2.0%

Not disclosed * Daiwa Jimbocho 2,932.44 1.6% * The leased space of top 50 tenant covers 58.1% of total leased space as of the end of the 11th Fiscal Period ** Industries are categorized according to TSE’s 33 industry group. Total - 48,180.92 26.3%

•*Not disclosed due to tenant's request •** Leased spaces of the tenants in Shinjuku Maynds Tower are described as the figure equivalent to 6/7, ownership % of the Investment Corporation. •*** The figures of %of Total Leased Space are round down to the first decimal place.

Impact of Great East Japan Earthquake on Properties Strengthening Earthquake Resistance of Properties

No casualties or damage having a serious impact on the investment status at all RatioRatio ofof NewNew // OldOld EarthquakeEarthquake ResistantResistant Standards*Standards* BuildingsBuildings Portfolio PML*: 5.62% 35 portfolio properties

Onsite investigation conducted by third-party investigation companies reports Old earthquake resistance *Prepared by NKS, Risk Management, Inc. that there was no significant damage to any of the properties due to the standards:18.3% Earthquake

Though there was no major damage to building structures, repair, renovation New earthquake and reinforcement work was conducted for minor damage to the exterior and resistance standards: interior of buildings and facilities at some properties 81.7%

*based on acquisition price Photo of earthquake resistance work at Daiwa Kyobashi Building

Restoration Costs Resulting from Details of Reinforcing Works for quake Great East Japan Earthquake with Old Earthquake Resistance Standards Conducted in 2003. Strengthening of walls, reinforcement of pillars and Daiwa Ginza beams (carbon fiber + steel plate winding + reinforced steel), slit Conducted by end of May 2011 61 million yen Daiwa Ginza Annex installment, etc. Conducted in 2006. Strengthening of walls, steel plate winding of pillars, Other expenses by the end of May 2011 Daiwa Shimbashi 510 8 million yen slit installment, etc. (including investigation fees) Daiwa Shibuya SS Conducted in 2003. Strengthening of walls. Estimated costs for restoration work for June 2011 Conducted in 2006. Additional reinforcing walls, new steel-framed brace, 63 million yen Daiwa Nihombashi Honcho onwards aramid fiber sheet winding of pillars, etc. Conducted in 2005. Additional reinforcing walls, strengthening of walls, Total 134 million yen Daiwa Ginza 1-chome new steel plate brace, slit installment, carbon fiber sheet winding of beams, etc. Conducted in 2005. Additional reinforcing walls, strengthening of walls, Daiwa Kyobashi carbon fiber sheet winding of pillars and beams, etc. Conducted in 2003. New reinforcing walls, strengthening of walls, Daiwa Onarimon strengthening of pillars, carbon fiber sheet winding of pillars, new steel plate brace, etc.

Electricity Conservation Efforts

Properties (9) that Fall Under Major Consumers Electricity conservation (15% reduction from max. of same period last (Contracted 500kW or more) summer) is being implemented from July 1, 2011 to September 22, 2011 (9:00-20:00 on business days) for major consumers (contracted 500kW or Shinjuku Maynds Tower, Daiwa Ginza, Daiwa Shibaura, Daiwa more) in the service area of TEPCO. Tsukishima, Daiwa Shinagawa North, Daiwa Nihombashi Honcho, Daiwa Nishi-Shimbashi, Benex S-3, Daiwa Higashi-Ikebukuro

Specific Efforts of Tenants in Electricity Conservation Electricity Conservation Measures (Examples)

Restrooms and Hot Water Supply Rooms Held meetings with tenants concerning electricity conservation Encourage turning off lights in restrooms when not in use Turning off electric water heater water supply for restroom sinks and hot Distributed announcements to tenants concerning electricity conservation in common-use areas water supply rooms, as well as hand dryers, toilet seat heaters and hot water washers Common-Use Visited individual tenants (primarily major tenants) and requested cooperation Lights at Entrances, Elevator Halls, Hallways, etc. Areas for electricity conservation, and also confirmed their respective electricity Turn off 80-90% (10-20% of usual) conservation policies for the summer Air Conditioning of Common-Use Areas Completely turn off Drafted and implemented effective electricity conservation measures for each building by holding meetings with air conditioning and automatic control Elevators At buildings with three or more regular elevators, complete stopping of one equipment manufacturers

Applied for shared use schemes (adjusting by integrating the conservation Air Temperature Settings amount at buildings that have difficulty in reducing electricity consumption with Tenant Areas Set air-conditioning temperatures higher than last year (targeting 28℃) those that can easily reduce consumption) (requests to tenants) Lighting Turning off unneeded lights and use of blinds and fans

Daiwa Sarugakucho Daiwa Ginza 1-chome

Location Sarugakucho, Chuo-ku Location Ginza 1-chome Chuo-ku

Construction June 1985 Construction January 1962

Total Floor Area 4,303.97㎡ Total Floor Area 4,771.31㎡

Acquisition Price 3,000 million yen Acquisition Price 4,620 million yen

2-minute walk from Ginza 1-chome 3-minute walk from Suidobashi Station on Station on the Tokyo Metro Yurakucho the JR Sobu Line Line, and 4-minute walk from Kyobashi Station on the Tokyo Metro Ginza Line Located in a business area with many universities and various types of schools Close to central Ginza and highly competitive also as office and commercial location

Activities and Future Strategy Activities and Future Strategy

Since a notice of departure was received in April 2011 from the The occupancy rate had recovered to 97.9% at the end of the 11th tenant that was renting the entire building, a large internal renewal, Fiscal Period but will drop in the 12th Fiscal Period and after due to which includes individualizing the air conditioning system, is notices of contract termination received from several tenants planned Aim to re-raise the occupancy rate through efficient use of Conduct multifaceted business activities such as selection of target campaigns, etc. tenants giving consideration to locational characteristics

LoanLoan toto ValueValue TrendTrend RatioRatio ofof LongLong-to-to ShortShort-Term-Term BorrowingsBorrowings (Billion yen) 11th Fiscal Period As of July 8, 2011 280 70% 10th Fiscal Period

260 Interest-bearing Liabilities 17.2 29.9 LTV (based on acquisiton price) % 240 60% 45.2 % Expected LTV 54.8 % 70.1 220 82.8 % % % 200 50%

180 Upper limit range LTV in the medium-term target Current position of long-term borrowings Long-term borrowings 160 40%

140 120 30% RatioRatio ofof FixedFixed –– toto FloatingFloating BorrowingsBorrowings 100 10th Fiscal Period 11th Fiscal Period As of July 8, 2011 80 20%

60 29.6 43.1 38.9 % 48.3 52.8 40 10% % % % % 64.1 20 % 6.4% 8.6 8.2 0 0% % % 11 od iod od iod od 20 riod y eri eriod er e eri ul Period J th Per th P of 1st Period 4th P 5th P 6th Peri 8th Period9th P 1 s Fixed interestFloating interest (capped) Floating interest 2nd 3rd P 10 1 A * LTV( based on acquisition price) ＝Total interest-bearing liabilities / Total acquisition price of properties held at the end the Fiscal Period

Continuous decline in debt cost by refunding from high-cost borrowings and decreasing in financial related expenses is estimated

RepaymentRepayment DatesDates (Million yen） DebtDebt CostCost Rate*Rate* (annualized)(annualized) 30,000 （％） Released on Jun.30 2011 6.0% Orix Trust Bank (T+0.40%) 25,000 5.0% Aozora Bank (T+2.19%) Released on Jun. 30 2011 1,000 Sumitomo Trust & Banking Shinsei Bank Bank of Fukuoka (L+1.80%) (T+0.50%) 4.0% 20,000 3,500

19,600 2,000 Released on Jun. 30, 2011 SMBC 3.0% Mizuho Trust & Banking 15,000 4,000 Aozora Bank Shinsei Bank 6,000 (T+0.60%) 2.0%

10,000 3,500 Debt1st Period Cost Rate 19,000 1.0% 13th 5,000 Expected Debt Cost Rate 3,000 Pid 12,500 5,000 2,000 7,100 5,500 0.0% 5,500 5,000 d d d d 4,000 3,500 od o o o o riod iod iod riod ri ri i i i er er e e e er er er eriod eriod eriod eriod eriod 1,000 P P P P P P P P 0 P P P P P rd h h h h h h h h h h th 12th Period 13th Period 14th Period 15th Period 16th Period 17th Period 18th Period 28th Period 1st Pe 3 4t 5t 6t 7t 8t 9t 0t 1t 2t 3t 4 2nd 1 1 1 1 1 （Nov. 11）（May 12）（Nov. 12）（May 13）（Nov. 13）（May 14）（Nov. 14）（Nov. 19） * Debt Cost Rate (annualized): (Interest Expense + Financial Related Expenses)/ Interest-bearing Liabilities) This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature , nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment. 28 Status of Interest-bearing Liabilities (3)

List of Interest-bearing Liabilities (As of May 31, 2011) Investment Corporation Bonds (As of May 31, 2011)

Balance Interest Rate Date of Balance Interest Rate Date of Term Lender Type Due date Term Lender Type Due date (million y en) (%) adv ance (million y en) (%) advance s Sumitomo Mitsui Banking Corporation (*) 37.50 Fix ed 1.81% 09/9/18 12/9/18 Long-term No. 1 Unsecured and Subordinated 3,500 Float T+240bps 09/9/17 19/9/17 The Sumitomo Trust and Banking Co., Ltd. (*) 26.25 Fix ed 1.81% 09/9/18 12/9/18 Long-term No. 2 Unsecured Inv estment Corporation 5,000 Fix ed 1.87% 10/6/24 6/24/13 Dev elopment Bank of Japan, Inc. (*) 150.00 Fix ed 1.54% 09/9/18 12/9/18 Total investment corporate bonds 8,500 The 77 Bank Ltd. (*) 7.50 Fix ed 1.81% 09/9/18 12/9/18 The Chuo Mitsui Trust and Banking Co., Ltd. (*) 15.00 Fix ed 1.79% 09/11/30 12/11/30 Taiy o Life Insurance Company (*) 7.50 Fix ed 1.79% 09/11/30 12/11/30 Balance by interest-bearing liabilities The Gunma Bank, Ltd. (*) 7.50 Float T+1.00% 09/11/30 12/11/30 Tha Kagaw a Bank Ltd.(*) 7.50 Float T+1.00% 10/2/26 13/2/28 (Including Investment Corporation Bonds) Kansai Urban Banking Corporation 5,500.00 Fix ed 2.00% 08/6/30 11/6/30 Resona Bank, Ltd. 3,000.00 Fix ed 1.90% 08/8/29 11/8/31 (As of May 31, 2011) (As of July 14, 2011) Balance Share Balance Share Mizuho Bank, Ltd. 3,500.00 Float T+1.00% 08/9/30 11/9/30 Name of Financial Institution Name of Financial Institution (million yen) (% ) (million y en) (% )

Current maturities of long term borrowing Shinsei Bank, Ltd. 7,100.00 Float L+1.80% 09/2/20 12/2/20 Aozora Bank Aozora Bank Aozora Bank, Ltd. 19,600.00 Float T+2.19% 09/5/21 12/5/21 23,100.00 26.8 24,600.00 22.0 Total current maturities of long term borrow ings 38,958.75 Shinsei Bank 10,100.00 11.7 Sumitomo Mitsui Banking Corporation 20,425.00 18.3 Sumitomo Mitsui Banking Corporation (*) 4,887.50 Fix ed 1.81% 09/9/18 12/9/18 Resona Bank 7,000.00 8.1 Shinsei Bank 11,100.00 9.9 The Sumitomo Trust and Banking Co., Ltd. (*) 3,421.25 Fix ed 1.81% 09/9/18 12/9/18 Dev elopment Bank of Japan, Inc. (*) 2,587.50 Fix ed 1.54% 09/9/18 12/9/18 Sumitomo Mitsui Banking Corporation 6,925.00 8.0 Sumitomo Trust and Banking 8,447.50 7.6 The 77 Bank Ltd. (*) 985.00 Fix ed 1.81% 09/9/18 12/9/18 Kansai Urban Banking Corporation 5,500.00 6.4 Resona Bank 7,000.00 6.3 The Chuo Mitsui Trust and Banking Co., Ltd. (*) 1,962.50 Fix ed 1.79% 09/11/30 12/11/30 American Life Insurance Company 5,000.00 5.8 Kansai Urban Banking Corporation 5,000.00 4.5 Taiy o Life Insurance Company (*) 981.25 Fix ed 1.79% 09/11/30 12/11/30 Mizuho Bank 3,500.00 4.1 American Life Insurance Company 5,000.00 4.5 The Gunma Bank, Ltd (*) 981.25 Float T+1.00% 09/11/30 12/11/30 Sumitomo Trust and Banking 3,447.50 4.0 Mizuho Bank 3,500.00 3.1 Aozora Bank, Ltd. 3,500.00 Float T+1.00% 10/2/26 13/2/28 The Shizuoka Bank, Ltd. 1,000.00 Float T+1.00% 10/2/26 13/2/28 Dev elopment Bank of Japan 2,737.50 3.2 Mizuho Trust & Banking 3,000.00 2.7 Tha Kagaw a Bank Ltd.(*) 985.00 Float T+1.00% 10/2/26 13/2/28 Fukuoka Bank 2,000.00 2.3 Fukuoka Bank 3,000.00 2.7 Shinsei Bank, Ltd. 2,000.00 Float T+0.90% 10/9/2 13/7/31 Chuo Mitsui Trust and Banking 1,977.50 2.3 Development Bank of Japan 2,737.50 2.4

Long term borrowings Long term American Life Insurance Company 5,000.00 Fix ed 2.29% 08/9/2 13/8/30 Orix Trust Bank 1,500.00 1.7 Orix Trust Bank 2,500.00 2.2 Fukuoka Bank 2,000.00 Float T+0.85% 10/9/30 13/9/30 Shizuoka Bank 1,000.00 1.2 Chuo Mitsui Trust and Banking 1,977.50 1.8 Orix Trust Bank 1,500.00 Float T+0.85% 10/9/30 13/9/30 Resona Bank, Ltd. 2,000.00 Float T+0.70% 11/3/18 14/3/18 77 Bank 992.50 1.2 Shizuoka Bank 1,000.00 0.9 Sumitomo Mitsui Banking Corporation (*) 2,000.00 Float T+0.60% 11/3/25 14/3/25 Kagawa Bankl 992.50 1.2 77 Bank 992.50 0.9 Resona Bank, Ltd. 2,000.00 Float T+0.70% 11/3/25 14/3/18 Taiy o Life Insurance 988.75 1.1 Kagawa Bankl 992.50 0.9 Shinsei Bank, Ltd. 1,000.00 Float T+0.55% 11/5/25 13/11/29 Gunma Bank 988.75 1.1 Taiyo Life Insurance 988.75 0.9 Total long-term borrow ings 38,791.25 Investment corporation bonds 8,500.00 9.9 Total borrow ings 77,750.00 Gunma Bank 988.75 0.9 Total 86,250.00 100.0 Investment corporation bonds 8,500.00 7.6 （*）Portions of long-term installment loans that are due within 1 year have been categorized as Total 111,750.00 100.0 current maturities of long term borrowings. This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature , nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment. 29 Efforts towards Unsecured Borrowings Status

Continue negotiations with banks to attain unsecured status for all borrowings in the 12th Fiscal Period

Impact of Unsecured Borrowings Status in 12th Fiscal Period Benefits of Unsecured Borrowings Status

Continue negotiating with banks to attain unsecured status for all borrowings. In order to achieve this in the 12th Fiscal Period, early repayment of some Increased flexibility for procuring borrowings borrowings is expected. Reduced financial costs including expenses for management of collateral With the early repayment of borrowings, temporary occurrences of early amortization of borrowing expenses and payment of break funding costs* are Positive ingredients for improved ratings anticipated. Facilitates expansion of lending financial institutions An increase in total cost due to bringing borrowings to unsecured status is not anticipated, due to refinancing costly borrowings, reduction of expenses for Facilitates issuing investment corporation bonds management of collateral, etc.

* Principle repayment amount × (applied interest rate – re-operation interest rate) × number of remaining days SimulationSimulation ofof UnsecuredUnsecured RatioRatio ofof UnsecuredUnsecured BorrowingsBorrowings 140 BorrowingsBorrowings ScenarioScenario 100%

Without Unsecured Borrowings Status 120 Ratio of Unsecured Borrowings* Within Unsecured Borrowings Status 75% *Unsecured interest-bearing liabilities ÷ 100 interest-bearing liabilities

80 50% 60 After acquisition of E Space Tower

40 This is a cost simulation graph where the costs for borrowings at the end of May 2011 is 25% 100 and a scenario where early repayments are made and all borrowings are brought to 20 unsecured status is compared with a scenario where this does not take place (assumes that the amount of interest-bearing liabilities stays the same) 0 0% 11th Period 12th Period 13th Period 14th Period 15th Period 16th Period 3th 4th 5th 6th 7th 8th 9th 10th 11th 12th Period Period Period Period Period Period Period Period Period Period This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature , nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment. 3030 Unitholders

Current State of Unitholders List of Top 10 Investors

10th Fiscal 11th Fiscal Domestic Trust Bank increased units. Period Period Change of No. Investor Name Rate Number of Number of Unit Daiwa PI Partners which is a consolidated subsidiary of Daiwa Unit Unit Securities Group Inc. borrowed the funds to Columbus because Columbus had to pay back the loan collateralized the units (68,905units) 1 K.K. Columbus 68,905 68,905 0 17.41% of the Investment Corporation. 2 Daiwa PI Partners Co. Ltd. 60,000 60,000 0 15.16%

Japan Trustee Services Bank, Ltd. 3 48,078 59,646 +11,568 15.07% (Trust Account) Unitholders’ Share by Investor Type 4 Daiwa Securities Group Inc. 51,893 51,893 0 13.11% 10th Fiscal 11th Fiscal Period Period Change of Investor Type Rate The Nomura Trust and Banking Co,. 5 35,542 30,579 -4,963 7.73% Number of Number of Unit Ltd. (Investment Trust Account) Unit Unit Individuals 39,658 36,746 -2,912 9.28% Trust & Custody Services Bank, Ltd. 6 23,450 25,136 +1,686 6.35% Bank 1,611 1,534 -77 0.39% (Securities Investment Trust Account)

Trust Bank 116,311 127,211 +10,900 32.14% The Master Trust Bank of Japan, Ltd. 7 (Investment Trust Account) 7,695 10,341 +2,646 2.61% Life Insurance 222 223 +1 0.06% Non-life Insurance 5,599 5,369 -230 1.36% 8 Nomura Bank (Luxembourg) S.A. 0 9,893 +9,893 2.50% Other Financial Institutions 1,964 273 -1,691 0.07% Other Domestic Corporation 133,033 132,640 -393 33.51% 9 Goldman Sachs International 7,803 7,055 -748 1.78% Foreigner 43,905 37,840 -6,065 9.56%

Securities 53,495 53,962 +467 13.63% The Fuji Fire and Marine Insurance 10 5,599 5,369 -230 1.36% Total 395,798 395,798 0 100.00% Co., Ltd.

█ External Growth → Total acquisition price of 350 billion yen on the medium-term ¾ After acquiring E SPACE TOWER, LTV (based on acquisition price) raised to 35.9%, but its LTV level is low. By taking advantage of the low LTV, acquisitions of properties will be conducted by procuring debts ¾ Medium-term goal to achieve a total acquisition price of 350 billion yen at an early stage with LTV at 43%, which remains low LTV level compared with other REITs. ¾ The portfolio of our existing properties will improve through the acquisition of prime and young properties.

█ Internal Growth → Maintain asset value through professional approach ¾ Enhancement of relationships with tenants by establishing “Marketing Department” in the Asset Manager. ¾ Value up our properties by improving the air conditioners to control individually and upgrading other building services. ¾ The Investment Corporation can aim to increase the profit by passing on the energy saving effect to other our buildings that the Investment Corporation achieve with these improvements of our building services.

█ Financial Strategy → Strengthen of balance sheet by un-collateralizing borrowings and Reduction of debt costs ¾ Debt costs would significantly be reduced by refinancing high cost borrowings and changing for the better debt covenants after the 14th Fiscal Period. ¾ It cost temporally to un-collateralize all borrowings but the Investment Corporation doesn’t estimate to increase total cost by reducing debt costs and collateral managing costs.

Establish highly-transparent business structure

Strictly control conflicts of interest with sponsor Introduce external consultants for more sophisticated risk management Introduce financial institutions’ rigorous compliance framework Collaborate with the Daiwa Securities Group and raise the information management system level Ensure high transparency and establish disciplined investment process

Expand net work of collaboration with the Daiwa Securities Group Issuance of unsecured investment corporation bonds Remarkably expand financing capacity Contribute to tenants staying at the property and to leasing activities Reinforce sourcing activities Strengthen relationships with investors by enhancing IR in Japan and abroad Increase sense of security from tenants/investors by improving creditworthiness

Secure well-experienced, highly-professional human resources

Develop team of outstanding professional staff by capitalizing on the human resources of the Daiwa Securities Group Increase well-experienced and highly-professional staff with a high level of motivation from the Daiwa Securities Group Employ excellent human resources from outside by drawing on the Daiwa Securities Group’s brand power Obtain excellent human resources from outside Increase number of employees with a high level of motivation to challenge Share the long-term goal of REIT business and concentrate on expanding new business stages REIT market

Comparison with Results of the 10th Fiscal Period

10th Fiscal Period 11th Fiscal Period 10th Fiscal Period 11th Fiscal Period As of Nov.30, 2010 As of May.31, 2011 As of Nov.30, 2010 As of May.31, 2011 Million Yen (%) Million Yen (%) Million Yen (%) Million Yen (%) Current Assets 19,792 6.7% 15,566 5.2%Current Liabilities 16,103 5.5% 41,140 13.8% Cash and Deposits 13,191 9,164Trade Payables 593 875 Cash and Deposits in Trust 5,312 5,370Current Maturities of Long-term Borrowings 14,258 38,958 Consumption Taxes Receivable 119 － Other Payables 237 245 Other Current Assets 1,168 1,031Rents Received in Advance 807 716 Fixed Assets 274,719 93.3% 283,016 94.8%Other Current Liabilities 206 344 Intangible Fixed Assets 269,274 91.4% 277,817 93.0%Fixed Liabilities 78,395 26.6% 57,252 19.2% Liability Buildings Held in Trust 50,518 52,627Investment Corporation Bonds Issued 8,500 8,500 Land Held in Trust 218,730 225,160Long-term Debt 60,016 38,791 Other Tangible Fixed Assets 24 29Leasehold and Security Deposits Received 5,375 5,339

Assets Intangible Fixed Assets 4,978 1.7% 4,977 1.7%Leasehold and Security Deposits Received in Trust 4,496 4,617 Leasehold Rights in Trust 4,970 4,970 Other Fixed Liabilities 64 Other Intangible Fixed Assets 8 7Total Liabilities 94,498 32.1% 98,392 32.9% Investments and Other Assets 466 0.2% 221 0.1%Paid-in Capital 198,780 198,780 Leasehold and Security Deposits Paid in Trust 113 113Retained Earnings 1,282 1,453

Long-term Prepaid Expenses 334 92 Assets Net Total Net Assets 200,063 67.9% 200,234 67.1% Other Investments and Other Assets 18 14Total Liabilities and Net Assets 294,562 100.0% 298,626 100.0% Deferred Assets 51 0.0% 42 0.0% Investment Corporation Bond Issuance Costs 51 42 Total Assets 294,562 100.0% 298,626 100.0%

Comparison with Results of the 10th Fiscal Period Comparison with Forecasts

11th Period 10th Period 11th Period 11th Period Change Forecast Change (Nov. 30, 2010) (May. 31, 2011) (May. 31, 2011) (March 3, 2011) Number of Properties (at period-end) 33 35 2 Number of Properties (at period-end) 35 35 0 Effective Number of Days of Investment 183 182 1 Effective Number of Days of Investment 182 182 0 Operating Revenues (A) 6,424 6,758 + 334 Operating Revenues (A) 6,786 6,758 - 27 Gain on Sale ―――Gain on Sale ――― Operating Expenses (B) 3,942 3,935 -7 Operating Expenses (B) 4,124 3,935 - 189 Rental Business Expenses Rental Business Expenses 1,958 1,884 -74 2,025 1,884 - 140 (excluding depreciation) (excluding depreciation) Depreciation 1,235 1,281 + 45 Depreciation 1,290 1,281 - 9 Gain and Loss from Rental Operations Gain and Loss from Rental Operations 3,229 3,592 + 363 3,470 3,592 + 122 (excluding gain on sale) (excluding gain on sale) Operating Income (A-B) 2,481 2,823 + 342 Operating Income (A-B) 2,661 2,823 + 162 Non-operating Expenses 1,212 1,245 + 32 Non-operating Expenses 1,235 1,245 + 10 Interest Expense (including cap amortizatio 811 826 + 14 Interest Expense (including cap amortizatio 830 826 - 4 Financing Related Expenses 391 410 + 19 Financing Related Expenses 393 410 + 17 Ordinary Income 1,273 1,587 + 313 Ordinary Income 1,426 1,587 + 160 Extraordinary Income 9 0 -9 Extraordinary Income ― 0+ 0 Extraordinary Expense ― 134 + 134 Extraordinary Expense ― 134 + 134 Net Income 1,282 1,453 + 170 Net Income 1,424 1,453 + 28

Investment Units Issued and Outstanding 395,798unit 395,798unit Investment Units Issued and Outstanding 395,798unit 395,798unit Dividend per Unit (Unit: Yen) 3,240 3,671 + 431 Dividend per Unit (Unit: Yen) 3,600 3,671 + 71

Forecast for the 12th and 13th Fiscal Period

Unit: Million Yen (excluding the number of investment units and cash dividends) 12th Period 13th Period 11th Period Forecast Forecast (May. 31, 2011) (Nov 30, 2011) (May. 31, 2012) Number of Properties (at period-end) 35 36 36 Effective Number of Days of Investment 182 183 183 Operating Revenues (A) 6,758 7,420 7,207 Gain on Sale ――― Operating Expenses (B) 3,935 4,238 4,137 Rental Business Expenses (excluding depreciation) 1,884 2,011 1,932 Depreciation 1,281 1,368 1,384 Gain and Loss from Rental Operations (excluding gain on sale) 3,592 4,041 3,890 Operating Income (A-B) 2,823 3,182 3,069 Non-operating Expenses 1,245 1,557 1,147 Interest Expense (including cap amortization) 826 882 867 Financing Related Expenses 410 663 271 Ordinary Income 1,587 1,624 1,921 Extraordinary Income 0 ―― Extraordinary Expense 134 ―― Net Income 1,453 1,622 1,919 Investment Units Issued and Outstanding 395,798unit 395,798unit 395,798unit Dividend per Unit (Unit: Yen) 3,671 4,100 4,850 * Although we assume that rents will remain at the current level, actual rents may differ from the assumption depending on the status of assets under management.

Item Unit 7th Period 8th Period 9th Period 10th Period 11th Period NOI Number of days of investment Day 182 183 182 183 182 Rent revenue + Other lease business revenue – Expenses related to rent business + Depreciation Number of properties at end of period Property 30 30 31 33 35 FFO Net Income + Depreciation – Gain on Sale Occupancy rate at end of period % 97.7 92.8 85.7 95.9 95.4 ROA Average acquisition price Million yen 265,045 265,045 266,937 274,167 281,535 Annualized Net Income / Total Assets

NOI (after deduction of gain on sale) Million yen 6,334 5,915 4,922 4,465 4,873 ROE Annualized Net Income / Total Investments Funds from operation (FFO) Million yen 4,338 3,890 3,261 2,518 2,734 Loan-to-Value (LTV) at end of Fiscal Period Interest-bearing liabilities at end of Fiscal Period / Return on asset (ROA) % 2.2 1.9 1.3 0.9 1.1 Total assets at end of Fiscal Period

Return on equity (ROE) % 3.2 2.7 2.1 1.3 1.5 * Figures are rounded to the first decimal place. Capital adequacy ratio at end of period % 69.6 70.2 70.8 67.9 67.1

Loan-to-Value (LTV) at end of period % 25.4 25.3 25.5 28.1 28.9

(Unit: Million yen) Appraisal Value at Appraisal Value at Compared to Compared to Major Acquisition Cap Rate Property Name End of 10th Period End of 11th Period End of 10th Period Acquisition Price Reason Price (Nov.30, 2010) (May 31, 2011) Difference Change Difference Change 10th Period 11th Period Daiwa Ginza 14,000 13,900 -100 -0.7% 14,100 -200 -1.4% 4.6% 4.6% Daiwa Ginza Annex 2,920 2,900 -20 -0.7% 3,050 -150 -4.9% 4.5% 4.5% Daiwa Shibaura 7,087 7,290 203 2.9% 8,265 -975 -11.8% 5.2% 5.2% Daiwa Minami Aoyama 4,000 3,980 -20 -0.5% 4,550 -570 -12.5% 4.9% 4.9% Daiwa Sarugakucho 3,350 2,490 -860 -25.7% (3) 3,000 -510 -17.0% 5.7% 5.3% Daiwa A Hamamatsucho 2,854 2,910 56 2.0% 2,865 45 1.6% 5.1% 4.9% Daiwa Jingumae 2,010 2,020 10 0.5% 2,800 -780 -27.9% 4.7% 4.7% Daiwa Shibadaimon 2,789 2,820 31 1.1% 2,578 242 9.4% 5.1% 4.8% Daiwa Misakicho 2,398 2,410 12 0.5% 2,346 64 2.7% 5.3% 5.2% Daiwa Shimbashi 510 2,540 2,540 0 0.0% 2,080 460 22.1% 5.2% 5.2% BPS Square 1,660 1,660 0 0.0% 1,560 100 6.4% 5.3% 5.3% Daiwa Tsukiji 1,370 1,370 0 0.0% 1,240 130 10.5% 5.2% 5.2% Daiwa Tsukiji 616 2,410 2,410 0 0.0% 2,440 -30 -1.2% 5.1% 5.1% Daiwa Tsukishima Bldg. 7,720 7,710 -10 -0.1% 7,840 -130 -1.7% 5.3% 5.3% Nihonbashi MS Bldg. 2,430 2,420 -10 -0.4% 2,520 -100 -4.0% 5.0% 5.0% Daiwa Azabudai 1,830 1,830 0 0.0% 1,600 230 14.4% 5.0% 5.0% Daiwa Shibuya SS 3,950 3,940 -10 -0.3% 3,930 10 0.3% 5.0% 5.0% Daiwa Nihonbashi Honcho 7,360 6,980 -380 -5.2% (1) 7,420 -440 -5.9% 5.1% 5.1%

Major Reason : (1) Decrease in market rent (2) Increase in cap-rate (3) Increase in cancellation notices

(Unit: Million yen)

Appraisal Value at Appraisal Value at Compared to Compared to Major Acquisition Cap Rate Property Name End of 10th Period End of 11th Period End of 10th Period Acquisition Price Reason Price (Nov.30, 2010) (May 31, 2011) Difference Change Difference Change 10th Period 11th Period Daiwa Ginza 1-chome 4,310 4,190 -120 -2.8% 4,620 -430 -9.3% 4.8% 4.8% Daiwa Kyobashi 3,350 3,130 -220 -6.6% (1) 3,460 -330 -9.5% 5.0% 5.0% Sunline Building No. 7 2,360 2,280 -80 -3.4% 2,680 -400 -14.9% 5.0% 5.0% Daiwa Onarimon 14,600 14,400 -200 -1.4% 13,860 540 3.9% 4.9% 4.9% Shinjyuku Maynds Tower 106,000 106,000 0 0.0% 133,800 -27,800 -20.8% 4.0% 4.0% SHIBUYA EDGE 4,130 4,060 -70 -1.7% 5,900 -1,840 -31.2% 4.6% 4.6% Daiwa Kodemmacho 1,920 1,920 0 0.0% 2,460 -540 -22.0% 5.3% 5.3% Daiwa Jimbocho 4,340 3,820 -520 -12.0% (1) 4,150 -330 -8.0% 5.2% 5.2% Daiwa Nishishimbashi 5,720 5,680 -40 -0.7% 5,000 680 13.6% 5.0% 5.0% Daiwa Kudan 4,240 3,990 -250 -5.9% (1) 4,000 -10 -0.3% 5.0% 5.0% Daiwa Kayabacho Building - 5,980 - - 5,600 380 6.8% - 4.6% Jimbocho Place - 3,660 - - 3,550 110 3.1% - 4.6% Daiwa Kinshicho 3,587 3,570 -17 -0.5% 3,653 -83 -2.3% 5.6% 5.5% Daiwa Higashi-Ikebukuro 3,414 3,570 156 4.6% 2,958 612 20.7% 5.4% 5.3% Benex S-3 3,410 3,410 0 0.0% 4,950 -1,540 -31.1% 5.8% 5.8% Daiwa Shinagawa North 5,770 5,770 0 0.0% 7,710 -1,940 -25.2% 5.2% 5.2% Daiwa Minami-Senba 3,030 2,920 -110 -3.6% 4,810 -1,890 -39.3% 5.5% 5.5% Total 242,859 249,930 -2,569** -1.1%** 287,345 -37,415 -13.0% --

* Major Reason : (1) Decrease in market rent (2) Increase in cap-rate (3) Increase in cancellation notices ** Total of Compared to End of 10th Period excludes the properties acquired in 11th Period.

Daiwa Ginza Daiwa Ginza Annex Daiwa Shibaura Daiwa Minami Aoyama Daiwa Sarugakucho Daiwa A Hamamatsucho Daiwa Jingumae

Property Name

Acquisition Price (million yen) 14,100 3,050 8,265 4,550 3,000 2,865 2,800 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period Book Value (million yen) 13,688 13,625 2,952 2,935 8,154 8,148 4,514 4,503 2,976 2,964 2,831 2,822 2,766 2,759 Appraisal Value (million yen) 14,000 13,900 2,920 2,900 7,087 7,290 4,000 3,980 3,350 2,490 2,854 2,910 2,010 2,020 Occupancy Rate (%) 91.1 80.1 86.5 88.0 97.1 98.8 100.0 100.0 100.0 100.0 100.0 100.0 78.5 78.5 PML (%) (*6) 9.20 9.17 7.50 7.46 5.10 5.09 12.80 12.79 9.80 9.79 6.00 6.03 12.00 12.01 Property Management Company UNHEX UNHEX Xymax Axis UNHEX UNHEX UNHEX UNHEX Number of operating days 183182183182183182183182183182183182183182 (1) Property-related Revenues 389,434 329,343 98,342 101,703 292,944 234,983 139,537 127,423 - (*7) - (*7) 136,676 142,078 13,142 38,603 Rent (incl. common service fees) 379,062 329,343 88,471 101,703 291,899 233,066 139,537 127,423 - (*7) - (*7) 136,676 142,078 13,142 38,603 Other Revenues (*2)10,37109,87001,0451,91700- (*7)- (*7)0000 (2) Property-related Expenses 96,853 93,535 20,473 20,153 70,193 117,558 27,056 24,608 - (*7) - (*7) 60,955 58,204 21,053 15,724 Administrative Expenses 13,288 15,591 3,902 4,193 12,167 13,043 3,684 3,443 - (*7) - (*7) 8,743 8,317 8,057 2,678 Utility Charges 29,610 23,113 5,453 4,391 22,465 19,011 8,586 6,565 - (*7) - (*7) 10,102 8,634 3,493 4,450 Property Management Fees 6,489 6,781 1,636 1,551 4,860 7,312 2,474 1,862 - (*7) - (*7) 2,425 2,144 2,290 1,274 Property-related Taxes (*3) 24,916 24,913 8,207 8,206 20,293 20,293 11,388 11,388 - (*7) - (*7) 9,068 9,071 6,488 6,488 Non-life Insurance Costs 598 522 142 125 555 507 202 184 - (*7) - (*7) 254 233 102 91 Repair Expenses 9,765 10,222 1,132 1,668 9,631 57,390 719 1,161 - (*7) - (*7) 961 404 391 652 Other Expenses12,18412,391017220002- (*7)- (*7)29,40029,40022989

Profits from property-related activities (*1) activities property-related from Profits (3) NOI (＝(1)-(2)) (*5) 292,580 235,808 77,869 81,549 222,750 117,425 112,480 102,814 98,506 100,254 75,720 83,873 -7,911 22,878 Annualized NOI 583,562 472,912 155,312 163,546 444,283 235,495 224,346 206,194 196,474 201,059 151,028 168,207 -15,779 45,883 NOI Yield (*4) 4.1% 3.4% 5.1% 5.4% 5.4% 2.8% 4.9% 4.5% 6.5% 6.7% 5.3% 5.9% -0.6% 1.6% Depreciation and Amortization 67,257 67,459 17,531 17,673 23,406 23,788 10,801 11,077 - (*7) - (*7) 16,450 12,236 9,777 9,829 (Reference) Proceeds for Restoration and Repair Work 000063588200- (*7)- (*7)00033 Proceed s from Amo rtiza ti on of Leashol d and Security Depo sits 00000000- (*7)- (*7)0000

(*1) For profits from property-related activities, actual results (excluding Other Revenues and Property-related Taxes) are used and displayed by rounding down to the nearest thousand yen. (*2) Other Revenues does not include Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits. (*3) Fixed property taxes, city planning taxes and depreciable asset taxes recorded in Property-related Taxes are calculated by converting the actual amount to the number of operating days. (*4) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the acquisition price. (*5) NOI in this table is calculated by accounting for Property-related Taxes for “NOI (after deduction of gain on sale)” found on p.38 and so does not equal that figure. (*6) NKSJ Risk Management, Inc. has prepared for the PML since 10th Fiscal Period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2011). (*’7) Not disclosed due to tenant's request

Daiwa Shibadaimon Daiwa Misakicho Daiwa Shimbashi 510 BPS Square Daiwa Tsukiji Daiwa Tsukiji 616 Daiwa Tsukishima Bldg.

Property Name

Acquisition Price (million yen) 2,578 2,346 2,080 1,560 1,240 2,440 7,840 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period Book Value (million yen) 2,480 2,466 2,261 2,247 2,151 2,145 1,418 1,401 1,230 1,224 2,365 2,340 7,404 7,346 Appraisal Value (million yen) 2,789 2,820 2,398 2,410 2,540 2,540 1,660 1,660 1,370 1,370 2,410 2,410 7,720 7,710 Occupancy Rate (%) 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 85.1 100.0 87.0 100.0 100.0 100.0 PML (%) (*6) 3.00 2.99 6.70 6.68 8.10 8.13 7.70 7.67 9.70 9.70 7.70 7.69 10.90 10.89 Property Management Company UNHEX UNHEX Property Partners UNHEX Xymax Axis Property Partners Property Partners Number of operating days 183 182 183 182 183 182 183 182 183 182 183 182 183 182 (1) Property-related Revenues 100,676 99,776 - (*7) - (*7) 86,632 91,194 - (*7) - (*7) 48,376 47,742 93,488 80,591 288,889 284,270 Rent (incl. common service fees) 100,676 97,389 - (*7) - (*7) 86,632 91,194 - (*7) - (*7) 48,376 47,742 93,488 80,591 288,889 284,270 Other Revenues (*2)02,387- (*7)- (*7)00- (*7)- (*7)000000 (2) Property-related Expenses 21,668 26,095 - (*7) - (*7) 17,833 16,685 - (*7) - (*7) 12,265 12,952 23,874 21,382 53,885 49,612 Administrative Expenses 5,591 8,891 - (*7) - (*7) 3,938 3,833 - (*7) - (*7) 2,442 3,586 6,223 4,858 8,454 8,120 Utility Charges 7,791 6,178 - (*7) - (*7) 5,318 4,969 - (*7) - (*7) 3,336 2,814 7,784 6,750 26,218 22,382 Property Management Fees 1,890 1,434 - (*7) - (*7) 1,790 1,423 - (*7) - (*7) 1,399 1,350 1,885 1,804 4,333 4,312 Property-related Taxes (*3) 5,994 6,014 - (*7) - (*7) 5,967 5,965 - (*7) - (*7) 4,182 4,182 7,453 7,453 13,378 13,378 Non-life Insurance Costs 155 141 - (*7) - (*7) 151 139 - (*7) - (*7) 75 69 169 155 406 374 Repair Expenses 245 3,434 - (*7) - (*7) 605 294 - (*7) - (*7) 828 948 359 359 1,094 1,044 Other Expenses 00- (*7)- (*7)6160- (*7)- (*7)000000

Profits from property-related(3)activities (*1) NOI (＝(1)-(2)) (*5) 79,007 73,681 69,125 69,283 68,799 74,508 47,340 49,110 36,110 34,790 69,614 59,209 235,004 234,657 Annualized NOI 157,582 147,767 137,873 138,948 137,222 149,426 94,422 98,490 72,024 69,771 138,848 118,744 468,724 470,605 NOI Yield (*4) 6.1% 5.7% 5.9% 5.9% 6.6% 7.2% 6.1% 6.3% 5.8% 5.6% 5.7% 4.9% 6.0% 6.0% Depreciation and Amortization 14,312 14,395 - (*7) - (*7) 6,306 6,416 - (*7) - (*7) 7,014 7,022 28,558 28,772 67,458 67,526 (Reference) Proceeds for Restoration and Repair Work 03,450- (*7)- (*7)00- (*7)- (*7)000000 Proceed s from Amo rtiza ti on of Leashol d and Security Depo sits 00- (*7)- (*7)00- (*7)- (*7)000000

Nihonbashi MS Bldg. Daiwa Azabudai Daiwa Shibuya SS Daiwa Nihonbashi Honcho Daiwa Ginza 1-chome Daiwa Kyobashi Sunline Building No. 7

Property Name

Acquisition Price (million yen)2,520 1,600 3,930 7,420 4,620 3,460 2,680 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period Book Value (million yen) 2,509 2,501 1,576 1,576 3,854 3,851 7,246 7,218 4,562 4,545 3,409 3,394 2,656 2,651 Appraisal Value (million yen) 2,430 2,420 1,830 1,830 3,950 3,940 7,360 6,980 4,310 4,190 3,350 3,130 2,360 2,280 Occupancy Rate (%) 100.0 100.0 100.0 100.0 100.0 100.0 65.2 73.5 97.4 97.9 100.0 42.1 80.5 79.7 PML (%) (*6) 7.80 7.84 9.60 9.57 8.70 8.67 8.50 8.49 10.20 10.16 10.00 10.04 8.60 8.62 Property Management Company UNHEX UNHEX UNHEX Xymax Axis Xymax Axis UNHEX UNHEX Number of operating days 183182183182183182183182183182183182183182 (1) Property-related Revenues 74,929 81,582 65,179 65,474 128,897 134,613 95,591 113,178 92,480 118,811 103,407 72,107 75,440 72,998 Rent (incl. common service fees) 74,929 81,582 65,179 65,474 128,897 134,613 95,591 113,178 91,758 118,811 103,407 72,107 74,540 71,939 Other Revenues (*2)000000007220009001,059 (2) Property-related Expenses 20,832 17,424 27,370 12,361 28,262 26,480 44,205 36,828 30,709 28,059 22,756 20,676 26,498 40,812 Administrative Expenses 5,233 3,704 2,467 2,306 4,294 4,109 14,148 6,947 9,052 4,857 5,994 6,033 4,401 4,435 Utility Charges 5,404 4,863 3,242 2,964 9,889 8,453 10,423 11,816 7,738 6,777 7,547 5,452 5,809 4,999 Property Management Fees 1,933 1,320 1,200 1,200 1,823 2,187 3,796 3,160 2,945 1,803 1,828 1,414 1,236 1,352 Property-related Taxes (*3) 7,189 7,189 5,282 5,280 11,013 11,007 12,739 12,739 7,839 7,839 6,994 6,994 14,643 14,643 Non-life Insurance Costs 173 157 111 102 187 169 402 355 195 173 180 164 174 158 Repair Expenses 898 188 15,066 508 1,054 554 2,694 1,808 2,938 6,533 210 618 232 15,223 Other Expenses 000000000740000

Profits from property-related activities (*1) activities property-related from Profits (3) NOI (＝(1)-(2)) (*5) 54,096 64,158 37,808 53,112 100,634 108,133 51,385 76,350 61,770 90,752 80,651 51,430 48,941 32,186 Annualized NOI 107,898 128,669 75,411 106,516 200,718 216,860 102,490 153,119 123,203 182,003 160,861 103,143 97,616 64,549 NOI Yield (*4) 4.3% 5.1% 4.7% 6.7% 5.1% 5.5% 1.4% 2.1% 2.7% 3.9% 4.6% 3.0% 3.6% 2.4% Depreciation and Amortization 12,598 11,241 7,116 7,353 15,328 15,477 28,237 28,516 18,619 18,442 16,797 16,853 9,266 9,363 (Reference) Proceeds for Restoration and Repair Work 0000000000003750 Proceed s from Amo rtiza tion of Leashol d and Security Depo sits 00000000000000

Daiwa Onarimon Shinjyuku Maynds Tower SHIBUYA EDGE Daiwa Kodemmacho Daiwa Jimbocho Daiwa Nishishimbashi Daiwa Kudan

Property Name

Acquisition Price (million yen) 13,860 133,800 5,900 2,460 4,150 5,000 4,000 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period Book Value (million yen) 13,735 13,707 132,294 132,218 5,868 5,851 2,461 2,454 4,184 4,162 5,151 5,116 4,038 4,015 Appraisal Value (million yen) 14,600 14,400 106,000 106,000 4,130 4,060 1,920 1,920 4,340 3,820 5,720 5,680 4,240 3,990 Occupancy Rate (%) 100.0 100.0 99.9 99.9 100.0 100.0 100.0 100.0 100.0 100.0 85.5 79.1 90.7 100.0 PML (%) (*6) 5.50 5.45 6.40 6.42 3.10 3.14 7.70 7.71 5.60 5.58 6.80 6.76 8.00 7.96 Property Management Company Xymax Axis Xymax Axis Xymax Axis Property PartnersMitsui Fudosan Building Management Xymax Axis Mitsui Fudosan Building Management Number of operating days 18318218318218318218318218318211018290182 (1) Property-related Revenues 425,897 441,543 2,155,432 2,348,714 126,032 116,564 52,547 62,618 164,862 160,377 106,011 173,867 56,159 118,550 Rent (incl. common service fees) 425,897 441,543 2,153,082 2,346,390 126,032 111,206 52,547 62,618 164,862 160,377 106,011 163,664 56,159 118,550 Other Revenues (*2)002,3502,32305,3570000010,20200 (2) Property-related Expenses 109,935 113,514 805,823 723,474 21,731 26,731 15,362 13,146 20,753 21,079 18,536 41,779 5,698 13,863 Administrative Expenses 12,841 12,249 179,628 135,080 4,284 7,616 3,742 2,786 6,017 6,033 9,571 16,310 2,215 4,693 Utility Charges 22,401 19,522 299,905 274,128 7,992 5,678 4,924 4,190 12,392 10,244 5,934 9,717 2,181 7,068 Property Management Fees 4,795 4,429 27,369 16,920 2,068 1,943 1,513 1,238 1,647 1,603 2,219 2,918 1,136 1,856 Property-related Taxes (*3)36,72136,722259,491265,7587,2107,2103,8493,8480007708 Non-life Insurance Costs 585 527 5,063 4,544 150 132 109 95 249 185 216 308 89 156 Repair Expenses 32,589 40,062 26,546 19,221 24 4,149 400 165 416 2,774 592 12,444 75 80 Other Expenses 007,8177,82000822822292383300

Profitsfrom property-related activities (*1)(3) NOI (＝(1)-(2)) (*5) 315,962 328,029 1,349,609 1,625,239 104,301 89,832 37,185 49,471 144,108 139,297 87,474 132,087 50,461 104,686 Annualized NOI 630,197 657,860 2,691,844 3,259,409 208,032 180,159 74,167 99,214 287,429 279,360 290,256 264,901 204,648 209,948 NOI Yield (*4) 4.5% 4.7% 2.0% 2.4% 3.5% 3.1% 3.0% 4.0% 6.9% 6.7% 5.8% 5.3% 5.1% 5.2% Depreciation and Amortization 29,290 29,371 509,704 515,729 16,642 16,642 8,135 8,150 22,917 22,999 31,025 46,667 11,962 23,926 (Reference) Proceeds for Restoration and Repair Work 007,359005,0000000011,11500 Proceed s from Amo rtiza ti on of Leashold and Security Depo sits 00000000000000

Daiwa Kayabacho Build. Jimbocho Place Daiwa Kinshicho Daiwa Higashi-Ikebukuro Benex S-3 Daiwa Shinagawa North Daiwa Minami-Senba

Property Name

Acquisition Price (million yen) 5,600 3,550 3,653 2,958 4,950 7,710 4,810 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period 10th Period 11th Period Book Value (million yen) 5,625 3,630 3,523 3,495 2,885 2,862 4,552 4,501 7,570 7,539 4,939 4,907 Appraisal Value (million yen) 5,980 3,660 3,587 3,570 3,414 3,570 3,410 3,410 5,770 5,770 3,030 2,920 Occupancy Rate (%) 100.0 100.0 100.0 100.0 97.9 97.9 100.0 95.6 95.2 100.0 91.7 91.7 PML (%) (*6) 5.58 6.13 7.40 7.42 5.60 5.56 5.70 5.66 5.60 5.56 11.60 11.56 Property Management Company Property Partners Mitsui Fudosan Building Management UNHEX UNHEX Xymax Axis UNHEX Mitsui Fudosan Building Management Number of operating days 68 64 183 182 183 182 183 182 183 182 183 182 (1) Property-related Revenues - (*7) 29,614 154,430 149,522 141,135 143,306 144,225 158,773 169,428 158,658 112,283 106,209 Rent (incl. common service fees) - (*7) 29,614 154,430 149,522 139,460 143,306 144,225 158,773 167,178 158,658 112,283 106,209 Other Revenues (*2) - (*7) 0001,6740002,249000 (2) Property-related Expenses - (*7) 2,877 44,987 41,300 43,856 36,979 87,545 51,661 62,927 50,994 49,477 35,857 Administrative Expenses - (*7) 1,602 13,952 12,452 12,547 9,518 17,271 15,052 12,964 14,003 21,673 12,904 Utility Charges - (*7) 507 13,124 10,676 15,657 15,013 18,096 16,274 15,591 13,527 10,047 9,399 Property Management Fees - (*7) 644 2,311 2,637 2,557 2,224 4,135 2,430 4,996 2,792 2,696 1,560 Property-related Taxes (*3) - (*7) 1 13,038 13,046 9,687 9,678 16,377 16,288 19,368 19,365 11,650 11,586 Non-life Insurance Costs - (*7) 55 335 308 314 297 505 463 483 416 322 278 Repair Expenses - (*7) 40 2,224 2,179 3,091 247 31,159 1,151 9,522 879 3,086 129 Other Expenses - (*7)270000000900

Profitsfrom property-related activities(3)(*1) NOI (＝(1)-(2)) (*5) 58,587 26,737 109,443 108,222 97,279 106,326 56,679 107,112 106,500 107,664 62,805 70,351 Annualized NOI 314,478 152,485 218,289 217,038 194,026 213,236 113,049 214,813 212,419 215,919 125,268 141,088 NOI Yield (*4) 5.6% 4.3% 6.0% 5.9% 6.6% 7.2% 2.3% 4.3% 2.8% 2.8% 2.6% 2.9% Depreciation and Amortization - (*7) 9,808 29,130 28,400 29,753 23,524 55,930 56,473 36,923 34,866 34,191 33,990 (Reference) Proceeds for Restoration and Repair Work - (*7) 0003,1000009,150000 Proceed s from Amo rtiza ti on of Leashol d and Security Depo sits - (*7) 00000000000

Organization Chart Company Overview

Company Name Daiwa Real Estate Asset Management Co. Ltd. Board of Directors and Auditors Shareholders’Shareholders’ Meeting Meeting Address 6-2-1 Ginza, Chuo-ku, Tokyo Established October 21, 2004 President and Akira Yamanouchi AuditorsAuditors Representative Director Capitalization 200 million yen Vice President and Yoshiki Nishigaki Representative Director Akira Yamanouchi Board of Directors Board of Directors Representative Director (Head of Advisory Department) Directors 8 (5 executive, 2 non-executive, 1 auditor) Yuji Shinozuka Compliance Vice President and Employees 40 (as of July 1, 2011) Compliance Representative Director (Head of Finance & Business Planning) Committee Committee Atsuko Takahashi Registered Financial No. 355 (Financial Instruments), Director, Kanto Local Finance Director (Head of Investment Management) Instruments Firm Bureau Building Lots and Buildings InvestmentInvestment CommitteeCommittee ComplianceCompliance OfficerOfficer Naoyuki Owa No. (2)-83920, Governor of Tokyo Director Transaction Business License (Head of Administration) Representative Discretionary Agent for Real Representative No. 34, Minister of Land, Infrastructure, Transport and Tourism DirectorDirector Director (non-executive) Toshihiro Matsui Estate Transaction Approval Internal Control Office Director (non-executive) Hikaru Sakagami A member of the Investment Trusts Association of Japan Internal Control Office A member of Japan Securities Investment Advisers Auditor Toshihiko Onishi Association

Investment Management General Administrative Business Planning Advisory Department Department Marketing Department Finance Department Department Department Acquisitions Team Finance and IR Team Matters relating to advisory Marketing activities concerning trust Matters relating to the operation of Analysis of real estate market, retail concerning formulation of Formulation of investment policies beneficiary rights business Matters relating to financing, the general meeting of investors and industry trends and the real estate replacement, disposal, or income asset liability management and the executive officers of the investment trust market Matters relating to the acquisition Relation with tenants whose the and expense plans for customers’ management of surplus fund Investment Corporation and disposal of assets Investment Corporation owns the Research and analysis of the assets properties Matters relating to disclosure, IR Matters relating to the operation of business challenge of the Matters relating to advisory activities, formulation of the IR the general meeting of Investment Corporation Asset Management Team concerning management, operation, strategy and Public Relations shareholders, the board of directors Matters relating to the development leasing, and maintenance and and committees of the Asset Formulation of policies on leasing of annual asset management plans renovation of customers’ assets and management of assets Manager and medium-term asset Agency or intermediary on Accounting Team Submission of applications for management plans Matters relating to the leasing and transactions or leasing, etc. of various permits, licenses, approvals, management of assets Matters relating to financial results Development and revision of the assets by customers (excluding registrations, etc. stipulated by laws and accounting, cash allotment, Investment Guidelines businesses pertaining to be Type II and regulations Investment Planning Team accounting audit, budget and Matters relating to the provision of financial instruments business) performance management Storage and management of the new businesses Matters relating to reporting and Budget and performance important documents and Matters concerting accounting and General risk management of the other duties being conducted for management of the portfolio information finance of the Asst Manager Investment Corporation investors of private funds Matters relating to human resources and labor service

Group Structure of Daiwa Securities Group

Daiwa Securities Group Inc.

Retail Wholesale Asset Management Investment System / Research

Daiwa Securities Daiwa Corporate Daiwa Institute of Daiwa Securities Capital Markets Daiwa Asset Management Investment Research Holdings （Daiwa Securities CM)

Daiwa Securities Daiwa CM Daiwa Institute of Daiwa SB Investments SMBC Principal Europe Limited Research Investments

Daiwa CM DIR Business Innovations Hong Kong Limited Daiwa Real Estate Asset Management Daiwa PI Partners Daiwa CM America Inc.

The Daiwa Securities Group promotes the marketing of net increase to individual investors, who really want attractive products that have the potential for stable management performance.

Daiwa Real Estate Asset Management aims for long-term and stable provision of attractive management products as the real estate asset management company of the Daiwa Securities Group

This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature , nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises reader to make investment decisions at their own judgment. 47 The Daiwa Office Investment Corporation logo has been created. The logo symbolizes hospitality with an open door and the desire to be a bright and open investment corporation. We will continue to aim to be a highly-transparent investment corporation that is further cherished and trusted by our investors and tenants.