Fiscal Period Business Report Th (Statement of Financial Performance) 19 December 1, 2014 – May 31, 2015

Fiscal Period Business Report th (Statement of Financial Performance) 19 December 1, 2014 – May 31, 2015

The Daiwa Ofﬁce Investment Corporation 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.

6-2-1 Ginza, Chuo Ward, Tokyo http://www.daiwa-of_ce.co.jp/en/ I. Overview of Daiwa Office Investment Corporation

To Our Investors

We would like to express our deep gratitude to all our unitholders for your support of Daiwa Office Investment Corporation (DOI). In the 19th Fiscal Period, DOI posted operating revenues of 10,387 million yen and operating income of 4,770 million yen. Our distribution per unit for the 19th Fiscal Period is 9,142 yen, an increase by 886 yen from the 18th Fiscal Period. See page 4 for financial and management highlights Average contract rent at the end of the 19th Fiscal Period increased 875 yen from the end of the previous fiscal period to 18,674 yen and greatly contributed to further internal growth. Rent revisions contributed to 5 million yen increase in monthly contracted rents from the end of the previous fiscal period, which was a 5.2% increase rate for the average monthly rent. Tenants moving in/out led to 14 million yen of net increase in monthly contracted rents from the end of the previous fiscal period, and the increase rate for the average monthly rent increased 9.2% due to replacement of tenants. Occupancy rate improved 0.1 percentage points from the end of the previous fiscal period to 97.3%. We will realize sustainable internal growth by thorough implementation of hands-on approach that continuously apply“Bonji-Tettei” as the code of conduct. See page 8 for details of internal growth During the 19th Fiscal Period, we acquired 6 properties of Daiwa Ebisu 4-chome, LAQUAS Higashi Shinjuku, Concept Aoyama, Shinsen Place, Glass City Shibuya and Meguro Place Tower (total acquisition price: 48,785 million yen) and divested 5 properties of Daiwa Nihombashi Honcho, Daiwa Ginza 1-chome, Daiwa Kinshicho, Daiwa Tsukiji 616 and Benex S-3 (total sale price: 21,810 million yen). Through such asset replacement, DOI improved the quality of its portfolio. In addition to Glass City Shibuya and Meguro Place Tower mentioned above, we acquired River Gate (acquisition during 20th Fiscal Period) using funds raised through public offering implemented in June 2015. DOI will continue to selectively acquire office properties centering on the five central wards of Tokyo in an effort to further improve the value of its portfolio. See page 12 for details of external growth In financial matters DOI promoted the lengthening of maturities, increase of rate of loans with fixed interest rates, diversification of repayment dates and decrease of LTV. DOI will continue striving to further strengthen financial structure while working to reduce future refinancing risks. See page 16 for details of financial condition DOI will continue to increase the competitiveness of its properties and aim to achieve its medium- to long-term goal of an asset size of 500 billion yen through the utilization of investment capacity from capital increase, etc. while increasing long-term EPS (net income after deducting gain on sales of properties). We wish for the continued success of our unitholders and ask for your continued support of DOI.

Nobuaki Omura Executive Director of Daiwa Office Investment Corporation Contents

I. Overview of Daiwa Office Investment Corporation II. Asset Management Report……………………………17

To Our Investors……………………………………………… 2 III. Balance Sheet……………………………………………22 Characteristics and Strategies of Daiwa Office Investment Corporation ………………………… 3 IV. Statements of Income and Retained Earnings…… 24

Financial and Management Highlights………………………… 4 V. Statements of Changes in Unitholders’ Equity …… … 25 Overview of Portfolio (portfolio list)…………………………… 5 VI. Statements of Cash Flows … …………………………26 Overview of Portfolio (portfolio distribution)…………………… 6 VII. Notes to Financial Statements……………………… 27 Internal Growth Measures… ………………………………… 8

……………………… 40 External Growth Measures……………………………………12 VIII. Independent Auditors’ Report

Financial Conditions… ………………………………………16 IX. Investor Information… …………………………………41

2 Characteristics and Strategies of Daiwa Office Investment Corporation

Characteristics of Daiwa Office Investment Corporation Office Specialized REIT Focused on the Five REIT Central Wards of Tokyo Effective application of operational knowhow specialized in office Places priority on owning office buildings in favorable locations for buildings which there is high demand

Office buildings 100.0% Major Regional Cities 4.4% Five Central Greater Tokyo Wards of Tokyo 8.0% 87.6%

Based on acquisition price

(Note) Please note that the percentages in the above graphs are as of June 2, 2015

Growth Strategies 500.0 Activities for solid growth (billion yen) Investment in 500 selectively chosen ・Continue acquiring Achievement of a 500 billion yen asset size 441.2 properties competitive properties 413.2 ・Leverage borrowing Keep the medium-to-long term, upper-limit 387.5 400 capacity LTV target range within 40%~50% 352.7 364.0 332.0

300 Establishment of stable revenue base ・Property management Continuation of “Bonji-Tettei” activities Thorough implementation of hands-on 200 approach Further strengthen relations with tenants

・Maintain and Capture tenant needs by reinforcing ties with 100 improve property property managers value Strategic renewals and lease-up activities ・Financial activities Reduce reﬁnancing risk by extending 0 borrowing periods and diversifying Fiscal period Fiscal period Fiscal period Fiscal period Fiscal period After public Medium-term repayment dates ended ended ended ended ended offering goal May 2013 November 2013 May 2014 November 2014 May 2015

Distribution per Unit Fiscal period ended May 2015 yen (actual) (19th Fiscal Period) 9,142

Fiscal period ending November 2015 yen (forecast) (Note) The forecasts on distribution are calculated based (20th Fiscal Period) 9,350 on certain assumptions and may vary due to changes in the status and other factors. Moreover, Fiscal period ending May 2016 the forecasts set forth herein should not be yen (forecast) (21st Fiscal Period) 9,750 construed as a guarantee of distribution amounts.

I. Overview of Daiwa Office Investment Corporation 3 Financial and Management Highlights

Steady increase of distributions even in a severe office market environment

■ Operating Revenues ■ Operating Income (million yen) (million yen) 10,000 5,000 10,387 9,763 4,770 4,000 4,438 7,500 8,432 8,587 7,615 3,760 3,000 3,677 3,308 5,000 2,000

2,500 1,000

0 0 15th Period 16th Period 17th Period 18th Period 19th Period 15th Period 16th Period 17th Period 18th Period 19th Period

■ Net Income ■ Asset Size (million yen) (billion yen) 4,000 400 413.2 4,031 3,641 387.5 3,000 350 364.0 2,959 3,016 352.7 2,589 332.0 2,000 300

1,000 250

0 200 15th Period 16th Period 17th Period 18th Period 19th Period 15th Period 16th Period 17th Period 18th Period 19th Period

■ Distribution Per Unit 8,328 (yen) 7,570 8,700 9,000 10,000 Forecast from one year earlier Forecast from six months earlier Actual dividends 7,300 9,750 6,550 7,820 9,142 9,350 5,500 7,200 7,540 5,350 8,256 8,000 6,250 7,478 7,621 4,850 5,500 3,600 4,850 6,542 6,000 3,180 5,986 4,100 5,107 3,280 4,464 4,000 3,671

2,000

0 11th Period 12th Period 13th Period 14th Period 15th Period 16th Period 17th Period 18th Period 19th Period 20th Period 21st Period

19th Period 18th Period 17th Period 16th Period 15th Period (May 2015) (November 2014) (May 2014) (November 2013) (May 2013) Operating revenues (million yen) 10,387 9,763 8,587 8,432 7,615 Operating income (million yen) 4,770 4,438 3,760 3,677 3,308 Ordinary income (million yen) 4,032 3,642 3,005 2,955 2,590 Net income (million yen) 4,031 3,641 3,016 2,959 2,589 Total number of units issued (units) 441,000 441,000 395,798 395,798 395,798 Net assets per unit (yen) 505,566 504,746 509,490 509,560 508,707 Distribution per unit (yen) 9,142 8,256 7,621 7,478 6,542 Total assets (million yen) 432,232 399,555 380,723 363,653 342,572 Loan-to-value (LTV) (based on total asset value) (%) 44.3 40.2 43.0 40.6 37.5 Number of investment properties 47 46 44 44 41 Asset size (billion yen) 4,132 3,875 3,640 3,527 3,320 Total rentable area (m2) 288,833.07 286,088.89 259,381.62 244,877.17 225,651.87 Occupancy rate (%) 97.3 97.2 96.4 96.3 95.0

4 Overview of Portfolio (portfolio list)

(as of June 2, 2015) Acquisition Appraisal Rentable Structure and Execution Ownership Type Price Value at End PML (%) Property Name Address Area (m2) No. of Floors Completion of Major of Period Share (Note 5) (Note 2) (Note 3) Repairs mm yen (mm yen) Land Building (%) (Note 4) Five Central Wards of Tokyo (Note 1) Fee simple and 1 Daiwa Ginza Ginza, Chuo-ku, Tokyo 8,175.26 SRC B3/12F July 1963 2003 14,100 3.2 15,500 leasehold Fee simple 4.53 2 Daiwa Ginza Annex Ginza, Chuo-ku, Tokyo 2,032.11 SRC B3/8F Aug. 1972 2003 3,050 0.7 3,170 Fee simple Fee simple 3.97 3 Daiwa Shibaura Shibaura, Minato-ku, Tokyo 9,619.67 SRC B1/12F Oct. 1987 8,265 1.9 7,240 Fee simple Fee simple 3.82 4 Daiwa Minami-Aoyama Minami Aoyama, Minato-ku, Tokyo 2,715.53 S SRC B2/5F Sept. 1990 4,550 1.0 4,140 Fee simple Fee simple 9.19 5 Daiwa Sarugakucho Sarugakucho, Chiyoda-ku, Tokyo 3,657.43 SRC 8F June 1985 3,190 0.7 3,270 Fee simple Fee simple 7.14 Compartmentalized 6 Daiwa A Hamamatsucho Hamamatsucho, Minato-ku, Tokyo 3,663.38 SRC B2/10F July 1993 2,865 0.6 3,070 Fee simple ownership 3.79 7 Daiwa Jingumae Jingumae, Shibuya-ku, Tokyo 2,198.61 RC B1/4F Dec. 1997 2,800 0.6 2,180 Fee simple Fee simple 13.33 8 Daiwa Shibadaimon Shibadaimon, Minato-ku, Tokyo 2,386.48 SRC RC B1/7F Nov. 1996 2,578 0.6 2,700 Fee simple Fee simple 3.72 9 Daiwa Misakicho Misakicho, Chiyoda-ku, Tokyo 2,137.53 S 8F July 1996 2,346 0.5 2,560 Fee simple Fee simple 4.24 10 Daiwa Shimbashi 510 Shinbashi, Minato-ku, Tokyo 2,676.52 SRC B1/8F Apr. 1974 2006 2,080 0.5 2,400 Fee simple Fee simple 5.51 11 Daiwa Tsukijiekimae Tsukiji, Chuo-ku, Tokyo 2,659.59 SRC 10F Jan. 1996 1,560 0.4 1,490 Fee simple Fee simple 4.23 12 Daiwa Tsukiji Tsukiji, Chuo-ku, Tokyo 1,487.82 SRC B1/7F Jan. 1990 1,240 0.3 1,330 Fee simple Fee simple 4.98 13 Daiwa Tsukishima Tsukishima, Chuo-ku, Tokyo 8,426.85 S 5F July 1996 7,840 1.8 8,940 Fee simple Fee simple 4.87 14 Daiwa Nihonbashi Horidomecho Nihombashi-Horidomecho, Chuo-ku, Tokyo 2,850.81 SRC B2/7F Apr. 1993 2,520 0.6 2,410 Fee simple Fee simple 4.68 15 Daiwa Azabudai Azabudai, Minato-ku, Tokyo 1,697.88 SRC B2/9F Apr. 1984 1,600 0.4 1,700 Fee simple Fee simple 6.64 Compartmentalized 16 Daiwa Kyobashi Hatchobori, Chuo-ku, Tokyo 3,265.83 SRC B1/8F Oct. 1974 2005 3,460 0.8 3,120 Fee simple ownership (100%) 4.51 Compartmentalized 17 Daiwa Kojimachi 4-chome Kojimachi, Chiyoda-ku, Tokyo 2,690.90 SRC B2/9F Oct. 1987 2,910 0.7 2,600 Fee simple ownership (100%) 6.19 Compartmentalized 18 Daiwa Onarimon Shinbashi, Minato-ku, Tokyo 11,614.92 SRC 9F Apr. 1973 2003 13,860 3.1 12,600 Fee simple ownership (100%) 3.89 19 Shinjuku Maynds Tower (Note 6) Yoyogi, Shibuya-ku, Tokyo 45,543.97 S SRC B3/34F Sept. 1995 133,800 30.3 113,000 Co-ownership Co-ownership 2.03 20 SHIBUYA EDGE Udagawacho, Shibuya-ku, Tokyo 2,480.65 RC B1/9F Aug. 2006 5,900 1.3 4,520 Fee simple Fee simple 1.56 Fee simple and 21 Daiwa Kodenmacho Nihombashi-Odenmacho, Chuo-ku, Tokyo 2,379.31 SRC 8F Mar. 1985 2,460 0.6 2,020 leasehold Fee simple 4.19 22 Daiwa Jimbocho Kanda-Jimbocho, Chiyoda-ku, Tokyo 3,164.26 S B1/8F Mar. 1997 4,150 0.9 3,110 Fee simple Fee simple 5.05 23 Daiwa Nishi-Shimbashi Nishi-Shimbashi, Minato-ku, Tokyo 4,815.84 SRC B1/10F July 1993 5,000 1.1 5,060 Fee simple Fee simple 3.76 Compartmentalized 24 Daiwa Kudan Kudan Minami, Chiyoda-ku, Tokyo 2,882.61 SRC 9F Mar. 1987 4,000 0.9 3,220 Fee simple ownership (100%) 5.51 25 Daiwa Kayabacho Building Nihombashi-Kayabacho, Chuo-ku, Tokyo 5,899.11 S SRC B1/8F Apr. 2010 5,600 1.3 7,080 Fee simple Fee simple 4.50 26 Daiwa Jinbocho 3-chome Kanda-Jimbocho, Chiyoda-ku, Tokyo 2,889.34 S 9F Feb. 2010 3,550 0.8 4,170 Fee simple Fee simple 5.33 27 E SPACE TOWER Maruyamacho, Shibuya-ku, Tokyo 13,960.87 S SRC B1/15F Oct. 2002 24,000 5.4 31,000 Fee simple Fee simple 3.11 28 Daiwa Nihonbashi Hongokucho Nihombashi Hongokucho, Chuo-ku, Tokyo 2,143.08 S 8F May 2010 1,721 0.4 2,000 Fee simple Fee simple 3.80 Compartmentalized 29 shinyon curumu Shinjuku, Shinjuku-ku, Tokyo 6,751.31 S RC B2/11F Jan. 2012 9,650 2.2 11,400 Right of site ownership (100%) 4.44 30 Daiwa Shibuya Dogenzaka Maruyamacho, Shibuya-ku, Tokyo 4,144.90 SRC B1/11F Mar. 1988 4,500 1.0 5,790 Fee simple Fee simple 3.77 31 Daiwa Akasaka Akasaka, Minato-ku, Tokyo 8,794.51 SRC B2/7F Sept. 1990 9,200 2.1 11,200 Fee simple Fee simple 7.14 32 Daiwa Shibuya Miyamasuzaka Shibuya, Shibuya-ku, Tokyo 6,327.95 S B1/12F Dec. 1988 7,000 1.6 7,840 Fee simple Fee simple 5.64 33 Azabu Green Terrace Minami Azabu, Minato-ku, Tokyo 13,234.39 S RC B1/6F Sept. 2009 14,000 3.2 15,600 Fee simple Fee simple 2.67 34 Daiwa Ebisu 4-chome Ebisu, Shibuya-ku, Tokyo 2,743.93 SRC B1/9F Dec. 1997 4,135 0.9 4,720 Fee simple Fee simple 2.44 Compartmentalized 35 LAQUAS Higashi Shinjuku Okubo, Shinjuku-ku, Tokyo 7,498.33 S10F Aug. 2010 8,450 1.9 9,400 Fee simple ownership (100%) 4.46 36 Concept Aoyama Jingumae, Shibuya-ku, Tokyo 4,420.18 S RC B1/7F Nov. 2001 9,800 2.2 10,600 Fee simple Fee simple 4.42 37 Shinsen Place Shinsen-cho, Shibuya-ku, Tokyo 2,811.35 RC B1/9F Sept. 2001 4,800 1.1 5,720 Fee simple Fee simple 6.21 38 Glass City Shibuya Nanpeidaicho, Shibuya-ku, Tokyo 8,566.73 S SRC B1/11F Feb. 2004 16,000 3.6 17,000 Fee simple Fee simple 1.61 39 River Gate Nihonbashi Hakozakicho, Chuo-ku, Tokyo 32,062.96 S SRC RC B2/20F Feb. 1994 28,000 6.3 29,700 Fee simple Fee simple 1.76 Subtotal 257,472.70 386,530 87.6 384,570 Greater Tokyo Area (Note 1) 40 Daiwa Higashi-Ikebukuro Higashi-Ikebukuro, Toshima-ku, Tokyo 4,461.47 SRC S B1/9F June 1993 2,958 0.7 3,340 Fee simple Fee simple 3.55 41 Daiwa Shinagawa North Kita-Shinagawa, Shinagawa-ku, Tokyo 6,548.82 SRC B1/11F July 1991 7,710 1.7 5,780 Fee simple Fee simple 7.19 42 Daiwa Osaki 3-chome Osaki, Shinagawa-ku, Tokyo 1,786.06 S RC B1/6F Sept. 2007 1,650 0.4 2,120 Fee simple Fee simple 6.14 43 Daiwa Kamiooka Kamiooka Nishi, Konan-ku, Yokohama City, Kanagawa 2,630.30 S SRC B3/7F May 2011 2,000 0.5 2,260 Fee simple Fee simple 6.29 44 Integral Tower Kamiogi, Suginami-ku, Tokyo 17,778.14 S SRC B2/18F June 1993 15,220 3.4 16,800 Fee simple Fee simple 1.18 45 Meguro Place Tower Meguro, Meguro-ku, Tokyo 3,519.50 S SRC B2/14F July 2009 5,600 1.3 5,810 Fee simple Fee simple 1.68 Subtotal 36,724.29 35,138 8.0 36,110 Major Regional Cities (Note 1) 46 Daiwa Minami-Senba Minami-Senba, Chuo-ku, Osaka City, Osaka 5,719.52 SRC B1/8F Sept. 1986 4,810 1.1 2,570 Fee simple Fee simple 5.25 47 Daiwa Meieki Meieki-Minami, Nakamura-ku, Nagoya City, Aichi 7,461.90 S 12F Dec. 2007 5,300 1.2 6,840 Fee simple Fee simple 10.31 48 Kitahama Grand Building Awaji-cho, Chuo-ku, Osaka City, Osaka 13,517.62 S SRC B1/16F Feb. 2008 9,481 2.1 10,600 Fee simple Fee simple 3.48 Subtotal 26,699.04 19,591 4.4 20,010 Total 320,896.03 441,259 100.0 440,690

(Note 1) The Five Central Wards of Tokyo are Chiyoda, Chuo, Minato, Shinjuku and Shibuya Wards (or ku). The Greater Tokyo Area is Tokyo (excluding the Five Central Wards), and Kanagawa, Chiba and Saitama Prefectures. Major Regional Cities are the Osaka area (Osaka, Kyoto and Hyogo prefectures), Nagoya area (Aichi, Mie and Gifu prefectures) and ordinance designated cities and core cities set forth in the Local Autonomy Act. (Note 2) The Rentable Area is indicated as of May 31, 2015 (end of 19th Fiscal Period). The Rentable Area of River Gate is indicated as of June 2, 2015. (Note 3) Structure acronyms are S for steel, RC for reinforced concrete and SRC for steel-reinforced concrete. (Note 4) The values entered in the Appraisal Value at End of Period column are the appraisal values in the real estate appraisal reports with a pricing point of May 31, 2015 (end of 19th Fiscal Period). The values entered in the Appraisal Value at End of Period column of River Gate indicated as of April 1, 2015 (Note 5) The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2015) prepared by Sompo Japan Nipponkoa Risk Management Inc. (Note 6) The entrusted real estate corresponding to trust beneficiary interests that DOI owns regarding Shinjuku Maynds Tower is a co-ownership interest equal to 6/7 of the entire property. DOI acquired 3/7 of the co-ownership interest on July 13, 2007 for 65.1 billion yen and 3/7 of the co-ownership interest on November 26, 2007 for 68.7 billion yen. The figure shown for the Rentable Area is figure equivalent to 6/7 of the total rentable area of the entire building.

I. Overview of Daiwa Office Investment Corporation 5 Overview of Portfolio (portfolio distribution)

DOI concentrates its investment in the Five Central Wards of Tokyo (Chiyoda, Chuo, Minato, Shinjuku and Shibuya)

Shibuya-ku

7 Daiwa Jingumae 20 SHIBUYA EDGE 30 Daiwa Shibuya Dogenzaka 32 Daiwa Shibuya Miyamasuzaka 40 Daiwa Higashi-Ikebukuro

Ikebukuro Sta. 40

Toshima-ku

19 Shinjuku Maynds Tower 27 E SPACE TOWER 34 Daiwa Ebisu 4-chome 36 Concept Aoyama 37 Shinsen Place 38 Glass City Shibuya

Asakusa Sta.

Nakano Sta. 44 Suginami-ku Oshiage Sta.

Ogikubo Sta. 35 Higashi Suidobashi Sta. Shinjuku-ku 9 5 Akihabara Sta. Shinjuku Sta. Kinshicho Sta. 22 Shinjuku-ku Kudanshita Sta. 26 24 Shinjuku Sta. 28 29 21 14 Otemachi Sta. Ningyocho Sta. 19 Yotsuya Sta. 17 Chiyoda-ku Nihombashi Sta. 44 Integral Tower 29 shinyon curumu Honancho35 LAQUAS Higashi Sta. Shinjuku 39 25 Suitengumae Tokyo Sta. Sta.

Akasaka- mitsuke Sta. HibiyaHibiya SSta.ta. Shibuya-ku Aoyama- 16 Tokyo Metro Minato-ku 7 itchome Sta. Akasaka Sta. Chuo-ku Ginza Line Toranomon Sta. 1 2 Gaienmae Sta. 31 Ginza Sta. Marunouchi Line 36 11 4 12 Hibiya Line Shimbashi Sta. Omote- 23 Tozai Line sando Sta. Tsukishima Sta. 10 Chiyoda Line 20 18 Yurakucho Line 13 Hanzomon Line 32 15 6 Namboku Line 27 Shibuya Sta. 30 Fukutoshin Line 3 Daiwa Shibaura 4 Daiwa Minami-Aoyama 6 Daiwa A Hamamatsucho 8 37 Shibakoen Sta. Toei Subway 38 Oedo Line Minato-ku Asakusa Line 34 Tokyu Denen-Toshi Line 33 Mita Line Tokyu Toyoko Line Ebisu Sta. 3 Shinjuku Line Naka-meguro Sta. JR Yamanote Line Saikyo Line Chuo Line 8 Daiwa Shibadaimon 10 Daiwa Shimbashi 510 15 Daiwa Azabudai Sobu Line JR Yokosuka Line 45 Meguro Sta. and 46 Sobu Rapid Line Shinagawa Main investment area: Sta. Five Central Wards of Tokyo 41 Focused investment area: Greater Tokyo Osaki Sta. 42 Shinagawa- 48 47 43 Major Regional Cities 18 Daiwa Onarimon 23 Daiwa Nishi-Shimbashi 31 Daiwa Akasaka 33 Azabu Green Terrace 45 Meguro Place Tower ku

6 (as of June 2, 2015)

Chuo-ku

2 Daiwa Ginza Annex 11 Daiwa Tsukijiekimae 12 Daiwa Tsukiji 13 Daiwa Tsukishima 14 Daiwa Nihonbashi Horidomecho

Ikebukuro Sta. 40

Toshima-ku

1 Daiwa Ginza 16 Daiwa Kyobashi 21 Daiwa Kodenmacho 25 Daiwa Kayabacho Building 28 Daiwa Nihonbashi Hongokucho 39 River Gate

Asakusa Sta. Chiyoda-ku Nakano Sta. 44 Suginami-ku Oshiage Sta.

Ogikubo Sta. 35 Higashi Suidobashi Sta. 9 5 Akihabara Sta. Shinjuku Sta. Kinshicho Sta. 22 Shinjuku-ku Kudanshita Sta. 26 24 5 Daiwa Sarugakucho 9 Daiwa Misakicho Shinjuku Sta. 28 29 21 14 Otemachi Sta. Ningyocho Sta. 19 Yotsuya Sta. 17 Chiyoda-ku Nihombashi Sta. Honancho Sta. 39 25 Suitengumae Tokyo Sta. Sta.

Akasaka- mitsuke Sta. HibiyaHibiya SSta.ta. Shibuya-ku Aoyama- 16 17 Daiwa Kojimachi 4-chome 22 Daiwa Jimbocho Tokyo Metro 7 itchome Sta. Akasaka Sta. Chuo-ku Ginza Line Toranomon Sta. 1 2 Gaienmae Sta. 31 Ginza Sta. Marunouchi Line 36 11 4 12 Hibiya Line Shimbashi Sta. Omote- 23 Tozai Line sando Sta. Tsukishima Sta. 10 Chiyoda Line 20 18 Yurakucho Line 13 Hanzomon Line 32 15 6 Namboku Line 27 Shibuya Sta. 30 24 Daiwa Kudan 26 Daiwa Jinbocho 3-chome Fukutoshin Line 8 37 Shibakoen Sta. Toei Subway 38 Oedo Line Minato-ku Asakusa Line 34 Tokyu Denen-Toshi Line 33 Mita Line Tokyu Toyoko Line Ebisu Sta. 3 Shinjuku Line Naka-meguro Sta. JR Yamanote Line Saikyo Line Chuo Line 43 Daiwa Kamiooka 46 Daiwa Minami-Senba Sobu Line JR Yokosuka Line 45 Meguro Sta. and 46 Sobu Rapid Line Shinagawa Main investment area: Sta. Five Central Wards of Tokyo 41 Focused investment area: Greater Tokyo Osaki Sta. 42 Shinagawa- 48 47 43 Major Regional Cities ku 41 Daiwa Shinagawa North 42 Daiwa Osaki 3-chome 47 Daiwa Meieki 48 Kitahama Grand Building

I. Overview of Daiwa Office Investment Corporation 7 Internal Growth Measures

Committed to heightening tenant satisfaction and proactive leasing activities

Office Market Trends

Further improvements in vacancy rate are observed and rent levels are showing signs of recovery.

■ Office Building Rental Market of Tokyo ■ Transition of the Supply and Demand Balance in 23 Wards of Tokyo (yen/tsubo) (%) (tsubo) (%) 25,000 10.0 400,000 9.0 Predicted ﬁgures 23,000 8.0 300,000 7.5

200,000 6.0 21,000 6.0 100,000 4.5 19,000 4.0 4.5 0 3.0 17,000 17,178 2.0 -100,000 1.5 Average rents of Vacancy rate of Floor area of new supplies 15,000 existing buildings (left axis) existing buildings (right axis) 0.0 -200,000 Floor area of new demands Vacancy rate 0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (Source) Miki Shoji (Source) CBRE “Mid-term Office Market Outlook 2014~2020”

Rental Business Status

■ Average Contract Rents and Market Rents (monthly)

(yen/tsubo) 30,000 100 Breakdown: Changes in Contract Rents for 5 Central Wards of Tokyo

(％) 27,000 90 2.25 Chiyoda Ward +2.18

24,000 78.06 80 1.75 78.22 78.52 21,000 70 1.25

18,674 Shibuya Ward +1.01 18,000 18,215 60 0.75 17,799 15,000 Average contract rents* 50 0.25 Minato Ward +0.22 Unit rent index 0.00 Shinjuku Ward (Period-on-period comparison, right axis)** +0.00 Chuo Ward −0.02 12,000 40 -0.25 End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of 18th Period End of 19th Period 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period (Note) Average contract rent of the existing 41 properties at the end of May 2015 is 18,513 yen (amount of Among 5 central wards of Tokyo, rent increased in Chiyoda Ward, change from the previous period: +156 yen) Shibuya Ward and Minato Ward. * Average contract rents are average monthly contracted rents with tenants at the end of each fiscal period. ** Unit rent index is the earning rates of unit rent of individual properties indexed with the 7th Fiscal Period as 100.

■ Attribution Analysis / Monthly Contract Rent* (Million Yen) 1,700 +169 –94

1,650

1,600 1,595 1,550 +35 –20 Decrease by Property 1,500 1,500 +5 0 Sales Decrease by Increase 1,450 Increase Decrease Increase Tenants’ by New by Rent by Rent by New Leases Cancellations Acquisition 1,400 Revisions Revisions

1,350

1,300

End of 18th FP End of 19th FP Monthly Contract Rent Monthly Contract Rent * Monthly Contact Rent is a total of final rent from tenants contracting at the end of the Fiscal Period. Monthly Contract Rent for Shinjuku Maynds Tower was adjusted on June 7.

8 Status of Contract Renewal

■ 19th Fiscal Period Contract Renewal Tenants ■ Changes in Rent Increase/Decrease Rate of Contract Cancellation from Cancellation from Renewal Tenants (sections) Contract Renewal Area 0.6 Non-Contract Renewal Area0.9 (%)15.0 21.7 Contract Renewal Area (Excluding Non-Contract Renewal Area (Excluding cancellation) 76.9 10.0 cancellation) 9.8 5.2 0.0 4.3 19th Period 26.5 70.8 2.7 5.0 5.0 4.5 1.0 5.2 18th Period 4.8 8.6 66.7 19.9 0.0 0.0 2.5 17th Period 8.5 7.9* 14.1* 57.4 12.1 0.0 -5.2 -5.0 -6.5 -4.9 16th Period 10.0 4.6 77.1 8.2 -7.0 -7.0 15th Period 14.4 3.1 70.3 12.3 -10.2 -10.0 14th Period 18.9 0.0 67.3 13.8

13th Period 40.6 0.8 54.6 4.0 -15.0 0 20 40 60 80 100 Increase rate （%） -20.0 Decrease rate Decrease Increase Unchanged Cancellation -22.7 (Note) *The ratio of areas for which contract was renewed in the 19th FP to the total rentable area -22.7 Rent increase / decrease rate 2 -25.0 (278,311.51 m ) at the end of November 2014. (Non-contract renewal area includes properties 14th Period 15th Period 16th Period 17th Period 18th Period 19th Period scheduled to be sold in the 19th FP) * Of the increase in the 17th FP, 14.1% is due to some tenants switching from sublease agreements to *The above indicates rent increase/decrease rates against contract rents before renewals for lease contracts master lease agreements and 7.9% is due to negotiations with tenants. whose contract renewal periods have arrived in the above periods and whose rent renewals have been agreed. Rent increase/decrease rate is calculated by netting rent increase and decrease.

■ Monthly Rent Increase/Decrease Due to New Leases and Cancellations (compared to the previous period) Breakdown (%) of Increased Portion of Rent (35 million yen) Due to New Leases Breakdown (%) of Decreased Portion of Rent (20 million yen) Due to Cancellations （%）（%） 100.0 100.0 Integral Tower 0.7 Daiwa Onarimon 0.6 Daiwa Minami-Senba 1.8 Daiwa Meieki 2.6 Daiwa Shibaura 2.7 Daiwa Nishi-Shimbashi Daiwa Shibaura 2.7 4.6 80.0 Daiwa Kudan 7.3 80.0 Daiwa Azabudai 3.0 Daiwa Shinagawa North 5.0 Daiwa Tsukiji 2.8 Daiwa Kudan 5.1 Daiwa Nihonbashi Horidomecho 3.8 Daiwa Azabudai 3.4 Daiwa Nishi-Shimbashi 10.6 Daiwa Kamiooka 5.2 Daiwa Ginza 6.8 60.0 Daiwa Ginza 10.9 60.0 Daiwa Osaki 3-chome 10.6 Daiwa Osaki 3-chome 19.0 40.0 40.0

E SPACE TOWER 19.1 Shinjuku Maynds Tower 50.3 20.0 20.0

Daiwa Shinagawa North 21.0

0.0 0.0

■ Occupancy Rate ■ Rate of New Leases and Cancellations*

(%) (%) 100.0 20.0

97.7 97.2 97.3 13.4 96.4 96.4 96.7 96.6 95.9 96.3 10.0 9.8 95.4 95.0 7.2 7.4 8.2 95.0 96.0 96.3 5.7 6.1 6.2 3.9 4.4 94.3 3.2 3.3 2.0 2.2 92.8 0.0 92.4 -1.2 -2.4 90.0 -3.9 -3.4 -3.9 -2.8 -5.9 -5.3 -5.7 Occupancy rate (actual) -10.0 -7.3 -6.3 -6.1 Occupancy rate (forecast) -12.0 Rate of new leases Expected rate of new leases Occupancy rate (forecast) -14.7 85.0 85.7 (as of disclosure in January 2015) -20.0 Rate of cancellations Expected rate of cancellations End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period *Transition of rate of new leases and cancellations areas to the total rentable area.

I. Overview of Daiwa Office Investment Corporation 9 Internal Growth Measures

Internal Growth Strategies

Continuous internal growth and maximization of asset value through “Bonji-Tettei” “Bonji-Tettei” Accurate grasp of present ◦Accurate understanding of the leasing market ◦Understanding features of portfolio properties situations ◦Catching real opinions of occupying tenants ◦Thorough budget control ◦Proactive exchanges with brokers ◦Conducting tenant satisfaction surveys Activities for internal growth ◦Accompanying new tenant candidates to a viewing ◦Full examination of properties ◦Frequent visit to tenants ◦In-depth numerical analysis

◦Prompt and accurate strategic lease-up Realization of internal growth ◦Realizing stable revenue over a long-term by building solid relationship with tenants ◦Reliable cost control based on rigorous repair plans, etc. Aim to maximize asset value

This team aims to maximize asset value with the specialists group by placing personnel in charge of all (9 members) Office Management Team properties in the investment corporation’s portfolio. Investment Planning Team (2 members) Middle office work: Budget and performance management for the portfolios

Construction Management Team Engineering: Formulation and implementation of construction planning of the assets (2 members) (Note) Numbers of members are as of June 30, 2015 Status of Properties Subject to Strategic Leasing Improvement Strategic Renewal

■ Daiwa Ebisu 4-chome (acquisition price: 4,135 million yen) ■ Daiwa Akasaka (acquisition price: 9,200 million yen)

Rinsen Elementary School Overview Overview The property is near to railway stations being an approx. Tokyo Metro ・ Hibiya Line ・The property is located a 4-minute walk from Ebisu Station on the JR Yamanote, Ebisu Sta. 2-minute walk from Mizuho Bank Shibuya Ebisu Saikyo and Shonan-Shinjuku Lines as well as an approx. Post Ofﬁce Akasaka Station on Tokyo Daiwa Ebisu 4-chome 6-minute walk from Ebisu Station on the Tokyo Metro Metro Chiyoda Line. Hibiya Line. ・The area has a number of Kakezuka

Elementary School ・On the 1st floor is a freight handling space and on the 2nd leading domestic Shonan Shinjuku Line Shinjuku Shonan JR Yamanote, Saikyo, Yamanote, JR companies, foreign capital Ebisu Garden Place floor is a multi-purpose space that can be used as a press room, show room and studio among other things. companies, etc. and is one of the largest downtown in Changes in occupancy rate the Tokyo metropolitan area. It is a popular area ◦Acquired the property which had been used by the seller company for itself at the beginning of akasaka Sacas Tokyo Metro Chiyoda Line where commercial and December 2014. The seller concluded a service-related companies periodical leasing agreement even after 100.0(%) Daiwa Akasaka are densely located. the sale and occupied the property until 100.0 100.0 100.0 Akasaka Sta. Kokusai Former the end of March 2015. The occupancy New Akasaka Building, entrance 50.0 East Building rate became 0% after their move-out. New entrance

◦New tenant leasing the entire building is Kokusai New Akasaka Building, scheduled to move in in September 2015 0.0 0.0 0.0 West Building and occupancy rate is expected to be Upon Acquisition 100%. ‘14/12 ‘15/3 ‘15/6 ‘15/9 Strategy to enhance property value through renewal works Initiatives for leasing ◦By making an opening and installing a new entrance ◦By narrowing down a target to IT/apparel companies located in neighboring wards, explored demands in addition to the former one, distance from the for both leasing of the entire building and floor-by-floor leasing at the same time. (Advertised that station was further shortened to 1-minute walk. With 800+ tsubos of empty floor space was very rare in Shibuya Ward where the vacancy rate was trending this improved convenience, will seek to attract new downwards.) tenants with favorable terms. ◦Since the building had been recognized by brokers as having specifications of a company-owned and The newly constructed entrance allows people to occupied building, held a property viewing for several brokers after renovating it into a building suitable ◦ come and leave the building without going through sectional leasing. By correcting the image of the building and encouraging understanding of it, raised the bustling area and offers more quiet business an appeal to end tenants. environment to those working in the building or to ◦As a result, received many responses for both leasing of the entire building and floor-by-floor leasing, visitors. Due to such, will raise tenant satisfaction leading to a conclusion with a quality tenant for leasing of the entire building. and stabilize occupancy rate of the property in order ◦The initial expected NOI of 4.2% is expected to be NOI 5.3% on a normal basis* to improve profits through favorable rent revisions. *NOI on a normal basis is calculated based on costs at the time of acquisition (excluding new leasing fees).

10 Measures to Increase Portfolio Value

■ Measures to Improve Customer Satisfaction ■ Coexistence with Local Societies

Installation of digital signage at shinyon 1F windbreak room B2F Door to the passageway Cooperated in holding “Marché to Support Reconstruction of Tohoku” organized by EMC curumu to subway stations Japan K.K. and “Parade Calling for Eradication of Drunk Driving” organized by Harajuku Police Station at Shinjuku Maynds Tower

Displaying a floor map, introducing tenants and shops nearby, etc. with digital signage

■ Renewal of Restrooms “Marché to Support Reconstruction of Tohoku” “Parade Calling for Eradication of Drunk Driving” Daiwa Azabudai Daiwa Shinagawa North Date of the event: July 1, 2015 (Wednesday)

Before ■ Strategic Tenant Attraction (Daiwa Ginza)

Brought in tenants that give existing shop tenants the opportunity to increase customers. As it faces busy Corridor Dori, awareness of the building will grow as well with the increase of visitors.

Mon Loire After Premium chocolate brand which is opening its shops mainly in Hyogo (Kobe in particular) and Osaka

Environmental Efforts

■ Concluded Green Lease Agreement with Tenant of Shinjuku Maynds Tower

The Investment Corporation concluded a green lease agreement with a tenant of Shinjuku Maynds Tower as part of environmental measures and measures for enhancing tenant satisfaction, and installed LED lightings in the space occupied by the tenant. As a result, the tenant’s electricity bill was reduced by more than a half compared to before the installment and the owner was able to reduce investment burden by receiving a green lease fee.

Shinjuku Maynds Tower Reduction of Costs Borne by Tenants Benefits for Tenants (%) 100.0 Cost for exchanging light bulbs Reducing utility bills and maintenance costs 6.2 Reduced cost Cost for purchasing/ ・・Improving working environment in ofﬁces 80.0 21.8 installing LED lightings ・Contributing to corporate social responsibility Green lease fee (CSR) 60.0 to be paid to the Enhancing the company´s image Electricity bill Investment Corporation Allocated to Expected ・ 40.0 93.8 36.4 repair cost Benefits for the Investment Corporation 20.0 Electricity bill ・Reducing maintenance costs 41.8 ・Enhancing property value by making 0.0 energy-saving investments Costs borne by the tenant Costs borne by the tenant Costs borne by the owner Receiving green lease fees (before) (after the installment) (after the installment) ・ *A green lease is a method to realize facility renewals of a section occupied by a tenant under a scheme which brings merits to both the tenant and the owner.

■ Acquired Glass City Shibuya which was Awarded "A rank" in CASBEE for Market Promotion Certification System

Glass City Shibuya Glass City Shibuya was awarded "A rank" in CASBEE for Market Promotion (2012 edition) certification system. Comprehensive Assessment System for Built Environment Efficiency (CASBEE) is a system established under the leadership of Ministry of Land, Infrastructure, Transport and Tourism in 2001 with an aim to comprehensively recognize and assess highly environmental and well-managed real estate properties such as office buildings. "CASBEE for Market Promotion" was developed for utilization of CASBEE' s building assessment results when making appraisals, and evaluation standards are drawn up so that real estate developers and dealers would be able to utilize CASBEE. Evaluation items are comprised of five categories of "energy/greenhouse gases," "water," "utilization of sources/safety," "biodiversity/land" and "indoor environment." These are similar to environmental performance evaluation items in LEED, which is a global environmental assessment program.

I. Overview of Daiwa Office Investment Corporation 11 External Growth Measures

Investment in selectively chosen competitive properties

Summary and Content of Public Offering

■ Summary of Public Offering Insurance type Public offering (Global offering) Number of investment units offered Total: 43,000 units, Primary offering: 41,045 units, Third-party allocation: 1,955 units Issue price 583,050 yen Paid-in price 563,914 yen Total paid-in amount 24,248 million yen (including third-party allocation)

■ Changes in Major Indices Due to Public Offering Major Indices End of the 18th FP End of March 2015 Properties Acquired After Public (Ended November 2014) Upon Public Offering Offering Number of properties 46 properties 45 properties 3 properties 48 properties Total assets (total of acquisition prices) (million yen) 387,557 391,659 49,600 441,259 NOI yield (Annualized) (%) 3.65 3.67 4.61 3.80 NAV per unit (yen) 478,051 484,462 - 515,278 Average building age (years) 21.4 20.1 16.4 19.9 Average distance from the nearest station 3.8 3.6 4.5 3.7 (minutes on foot) Number of tenants 479 427 113 537 Occupancy rate (%) 97.2 98.2 86.0 95.7 Loan-to-value ratio (%) 40.2 41.4 - 41.2 (Note 1) Figures for end of the 18th FP and end of March 2015 are figures at those points of time. (Note 2) NOI yield for properties acquired upon public offering is obtained using expected NOI at the time of acquisition. Average building age is as of the end of May 2015. The number of tenants and occupancy rate are calculated by using figures as of the end of May 2015 for Glass City Shibuya and Meguro Place Tower and figures as of June 2, 2015 for River Gate. (Note 3) NAV per unit = (Total assets + Total appraisal value at the end of the period - Total book value at the end of the period) / Number of issued investment units (Note 4) Figures for after the public offering are calculated based on actual figures at the end of May 2015. Average building age is as of the end of June 2015. LTV is as of the end of July 2015. (Note 5) LTV after the public offering = (Interest-bearing liabilities at the end of May 2015 -Short-term loans planned to be repaid with part of proceeds from the public offering (5.5 billion yen)) / (Total assets as of the end of the 19th FP + Total paid-in capital for the public offering, etc. - Short-term loans planned to be repaid with part of proceeds from the public offering (5.5 billion yen)). LTV after the public offering remains unchanged thereafter. ■ Improvement of Portfolio’s Quality through Asset Replacements in 19th FP (ended May 2015)

Properties acquired in the 19th Shibuya Ward Shinjuku Ward Shibuya Ward Shibuya Ward Shibuya Ward Meguro Ward Daiwa Ebisu 4-chome LAQUAS Higashi Shinjuku Concept Aoyama Shinsen Place Glass City Shibuya Meguro Place Tower FP Building age: 17.5 years Building age: 4.8 years Building age: 13.5 years Building age: 13.7 years Building age: 11.3 years Building age: 5.9 years 4-minute walk from Ebisu 3-minute walk from Higashi 4-minute walk from Gaienmae 4-minute walk from Shinsen 9-minute walk from Shibuya 6-minute walk from Meguro Station Shinjuku Station Station Station Station Station Acquisition price: Acquisition price: Acquisition price: Acquisition price: Acquisition price: Acquisition price: 4.13 billion yen 8.45 billion yen 9.8 billion yen 4.8 billion yen 16.0 billion yen 5.6 billion yen NOI yield: 4.5% NOI yield: 4.4% NOI yield: 4.2% NOI yield: 4.7% NOI yield: 4.1% NOI yield: 4.4% Total acquisition price 6 properties: 48.78 billion yen

Asset replacement

Properties sold in the 19th FP Chuo Ward Chuo Ward Koto Ward Chuo Ward Yokohama City Daiwa Nihonbashi Honcho Daiwa Ginza 1-chome Daiwa Kinshicho Daiwa Tsukiji 616 Benex S-3 Building age: 51.4 years Building age: 53.4 years Building age: 23.4 years Building age: 21.1 years Building age: 21.3 years 4-minute walk from 2-minute walk from Ginza 9-minute walk from Kinshicho 4-minute walk from Shin- 8-minute walk from Tsukiji Station Mitsukoshimae Station 1-chome Station Station Yokohama Station Total transfer price 5 properties: 21.81 billion yen

*Building ages are as of May 31, 2015. Distance of 80m from the nearest station is regarded as one-minute walk. NOI yield indicates expected NOI yield.

12 Newly Acquired Properties

■ 20th Fiscal Period

River Gate (acquired on June 2, 2015)

Toei Medium-term asset management strategy Ningyocho Asakusa Sta. Line • Early lease-up taking advantage of property features Aim for early lease-up by showcasing multiple convenient transportation means such as highly Line Metropolitan Expressway Route 6 Hibiya Suitengu-mae Sta. (Mukojima Line) convenient subway lines available at the nearest The Royal Park Tokyo Metro Hotel station, T-CAT enabling an easy access to the airport, T o Tokyo City k yo Air Terminal M metropolitan expressway with its interchange closely e t ro H River Gate Metropolitan a Metropolitannz located as well as taking in the needs for consolidation Expressway o Expressway (Fukagawa m Inner City Loop Line o n Route 9 Li Line) ne Sumida River of district offices of companies which control vast areas with the size of standard floor being as big as approximately 600 tsubo.

Location Nihonbashi Hakozakicho • Enhancement of relationship with occupying Chuo-ku, Tokyo tenants Site area 7,088.66 m2 Aim for stable property occupancy by realizing longer Structure and floors S SRC RC B2/20F term occupancy through enhancing tenant services by Total floor area 53,790.26 m2 grasping the tenant needs at an early stage and making 29,700 million yen Appraisal price timely responses while keeping periodical contact with (as of April 1, 2015) tenants. Completion February 1994 Occupancy rate 80.8% (as of June 2, 2015) • Reduction of LCC with accurate construction works Number of tenants 87 (as of June 2, 2015)(Note) Work to improve LCC by conducting maintenance works appropriate for the building age (Note) Including 71 rental units.

■ 19th Fiscal Period Glass City Shibuya (acquired on May 1, 2015) Meguro Place Tower (acquired on May 1, 2015)

Tokyo Metro Fukutoshin Line Metropolitan Expressway RouteNational 2 Museum (Meguro Line) SEIBU of Nature and Tokyu JR Yamanote Line Science, Institute Tokyo Metro for Nature Study SEIBU Hanzomon 109 Line Tokyo Metro ne hi Li Namboku Line tos HINODE n- Tokyo Metro Toei Mita Line -e Shibuya Sta. High School en Ginza Line D E SPACE u Shibuya Sta. y k Meguro Dori TOWER o T Meguro Place Tower Shibuya Mark City Tokyu Shinsen Sta. Keio Toyoko Line Inokashira Line JR Yamanote/ Saikyo Line atre Meguro Daiwa Shibuya Meguro River Meguro Sta. Dogenzaka

Shinsen Place Tokyu Glass City Meguro Line Shibuya Arco Tower Annex

Nanpeidaicho Shibuya-ku, Location Tokyo Location Meguro Meguro-ku, Tokyo Site area 2,452.64 m2 Site area 899.99 m2 Structure and floors S SRC B1/11F Structure and floors S SRC B2/14F Total floor area 10,639.97 m2 Total floor area 4,807.48 m2 Appraisal price 17,000 million yen Appraisal price 5,810 million yen (as of April 1, 2015) (as of April 1, 2015) Completion February 2004 Completion July 2009 Occupancy rate 100.0% (as of May 31, 2015) Occupancy rate 100.0% (as of May 31, 2015) Number of tenants 11 (as of May 31, 2015) Number of tenants 15 (as of May 31, 2015)

Medium-term asset management strategy Medium-term asset management strategy • Conduct sales strategy reading the trend of the leasing market in • Conduct sales activities that take in various office needs by taking Shibuya area advantage of property features • Aim for improved profits through terms revisions in accordance with • By building functions as an office building with diversified tenants, the market trend by realizing enhanced relationship with existing accommodate needs of each tenant to realize stable occupancy tenants and stable occupancy over a long-term. • Aim for improved profits by realizing the needs of existing tenants • Aim for reduction of operational management costs by collaborating and revising terms in accordance with the market with nearby buildings owned by the Investment Corporation

I. Overview of Daiwa Office Investment Corporation 13 External Growth Measures

Changes in Asset Size and Trading Performance

Aim to achieve medium-term goal of asset size of 500 billion yen by utilizing acquisition capability earned through capital increase

(billion yen) 550 80.0 (%) Total Acquisition Price LTV (based on total assets) 500 500.0 70.0 450 Investment for competitive properties after thorough selection 441.2 413.2 60.0 400 387.5 364.0 350 352.7 50.0 332.0 311.3 313.2 314.9 44.3 300 43.0 287.3 41.2 278.1 40.6 40.2 40.0 265.0 269.1 37.5 250 34.0 34.2 34.4 Acquisition properties Acquisition property 30.0 200 28.1 28.9 • Azabu Green Terrace • River Gate 25.3 25.5 Acquisition properties • Kitahama Acquisition property • Daiwa Shibuya Dogenzaka Grand Building 150 • Daiwa Osaki • Daiwa Akasaka Acquisition properties Acquisition property 3-chome • Daiwa Shibuya Miyamasuzaka 20.0 • Daiwa Nishi-Shimbashi • E SPACE TOWER Acquisition properties 100 • Daiwa Kudan • Daiwa Ebisu 4-chome • LAQUAS Higashi Shinjuku 10.0 Acquisition properties Acquisition property • Concept Aoyama 50 Acquisition property Acquisition properties Acquisition property • shinyon curumu • Integral Tower • Shinsen Place • Daiwa Jimbocho • Daiwa Kayabacho • Daiwa Nihonbashi • Daiwa Meieki • Glass City Shibuya • Daiwa Jinbocho 3-chome Hongokucho • Daiwa Kamiooka • Meguro Place Tower 0 0 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th After Medium- Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period Public Offering term goal

Current Portfolio and Acquisition Policy

DOI will invest in competitive properties based on in-depth data analysis upon careful selection from among the vast information on properties obtained through diverse sourcing.

■ Acquisition Policy ■ Distribution Chart of Portfolio Properties * is for properties acquired upon public offering, is for properties acquired in the 19th Fiscal Building age (years) Period, is for properties acquired after the sponsor change and is for properties sold in the 19th Fiscal Period. Distance to station is indicated by calculating 80m as one minute. • Invest heavily in the five central wards of Tokyo and equivalent area. 60 • Thoroughly select properties in view of actual demand toward location (distance to station, station power, crowd attraction, surrounding environment), building specs, etc. 55 Daiwa Ginza 1-chome • Target properties to improve stability and profitability of our existing portfolio. Daiwa Nihombashi Honcho 50 • Invest in buildings less than 25 years of building age.

■ Sale Policy 40

• Consider replacement of properties if necessary by sales in light of properties’ future 35 competitiveness, profitability, etc. 30

25 ■ Number of Properties Reviewed for Acquisition Daiwa Kinshicho (cases) * Number of gross proposals. (cases) River Gate Benex S-3 500 100 20 Daiwa Tsukiji 616 Number of properties reviewed (left axis) 427 Number of properties reviewed in detail (right axis) 416 Daiwa Ebisu 4-chome 400 80 15 Shinsen Place 335 356 300 296 300 268 264 60 Concept Aoyama Glass City Shibuya 44 221 10 200 35 40 30 28 25 26 23 5 17 Meguro Place Tower 100 15 20 LAQUAS Higashi Shinjuku

0 0 0 11th 12th 13th 14th 15th 16th 17th 18th 19th 11 Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal 0 1 2 3 4 5 6 7 8 9 10 Period Period Period Period Period Period Period Period Period Distance to station (minutes)

14 Acquisition of Properties after Sponsor Change Total acquisition price: 202, 807 million yen

Acquisition timing 9th Period 10th Period 11th Period 12th Period 13th Period 14th Period 15th Period

Daiwa Nishi- Daiwa Kayabacho Daiwa Daiwa Nihonbashi Daiwa Daiwa Jimbocho Daiwa Kudan E SPACE TOWER shinyon curumu Shimbashi Building Jinbocho 3-chome Hongokucho Osaki 3-chome

Property name

Area Chiyoda Ward, Tokyo Minato Ward, Tokyo Chiyoda Ward, Tokyo Chuo Ward, Tokyo Chiyoda Ward, Tokyo Shibuya Ward, Tokyo Chuo Ward, Tokyo Shinagawa Ward, Tokyo Shinjuku Ward, Tokyo

Acquisition price 4,150 million yen 5,000 million yen 4,000 million yen 5,600 million yen 3,550 million yen 24,000 million yen 1,721 million yen 1,650 million yen 9,650 million yen

Japan Core Asset 2 Shining Nova No. 5 Daiwa Property Co, Tokyu Land Endeavor Realty Two domestic Seller ORIX JREIT Inc. YK (Note 1) B (SPC) Ltd. Corporation Fund YK (Note 1) Tosei Corporation MCR Six GK industrial companies

Dec. 3, 2012 Acquisition date Mar. 10, 2010 Aug. 13, 2010 Sept. 2, 2010 Mar. 25, 2011 Mar. 29, 2011 July 8, 2011 May 11, 2012 Sept. 18, 2012 Apr. 12, 2013

Acquisition timing 15th Period 16th Period 17th Period 18th Period 19th Period

Daiwa Shibuya Daiwa Shibuya Azabu Green Kitahama Grand Daiwa Ebisu Daiwa Meieki Daiwa Kamiooka Daiwa Akasaka Integral Tower Dogenzaka Miyamasuzaka Terrace Building 4-chome

Property name

Area Nagoya City, Aichi Yokohama City, Kanagawa Shibuya Ward, Tokyo Minato Ward, Tokyo Shibuya Ward, Tokyo Suginami Ward, Tokyo Minato Ward, Tokyo Osaka City, Osaka Shibuya Ward, Tokyo

Acquisition price 5,300 million yen 2,000 million yen 4,500 million yen 9,200 million yen 7,000 million yen 15,220 million yen 14,000 million yen 9,481 million yen 4,135 million yen

Domestic special Domestic special Hakuba Capital 1 E Buildings Limited Ogikubo Building YK Azabu Green Terrace Domestic industrial Seller Shimizu Corporation GK North Beach purpose company purpose company TMK (Note 1) Liability Company (Note 1) GK company

Acquisition date Feb. 1, 2013 Mar. 1, 2013 July 3, 2013 Aug. 9, 2013 Sept. 27, 2013 May 29, 2014 July 4, 2014 Aug. 1, 2014 Dec. 1, 2014

Acquisition timing 19th Period 20th Period

LAQUAS Higashi Meguro Place Concept Aoyama Shinsen Place Glass City Shibuya River Gate Shinjuku Tower

Total Property name

Area Shinjuku Ward, Tokyo Shibuya Ward, Tokyo Shibuya Ward, Tokyo Shibuya Ward, Tokyo Meguro Ward, Tokyo Chuo Ward, Tokyo

Acquisition price 8,450 million yen 9,800 million yen 4,800 million yen 16,000 million yen 5,600 million yen 28,000 million yen 202,807 million yen

Higashi Shinjuku Domestic special Domestic special Glass City TMK Meguro Place TMK Thames TMK Seller Building TMK purpose company purpose company (Note 1) (Note 1) (Note 1) (Note 1)

Acquisition date Dec. 3, 2014 Mar. 2, 2015 Mar. 2, 2015 May 1, 2015 May 1, 2015 Jun. 2, 2015

(Note 1) "YK" stands for limited liability company and TMK (tokutei mokuteki kaisha) stands for special purpose company. (Note 2) The sum of i) the total acquisition price from the time of the above sponsor change on June 2, 2015 and ii) prices for additional acquisition of existing properties or of the site in existing properties during the same period, is 203,227 million yen.

I. Overview of Daiwa Office Investment Corporation 15 Financial Conditions

Reduce refinancing risk by extending borrowing periods and diversifying repayment dates

Status of Interest-Bearing Liabilities (as of May 31, 2015)

During the 19th Fiscal Period, DOI conducted debt financing of 43.5 billion yen in total for the repayment of 13 billion yen of loans and to raise funds for the acquisition of new properties. Although part of the debt financing was short-term borrowings due to strategic reasons, DOI was able to make effort to extend borrowing periods and diversify repayment dates for long-term borrowings. DOI will continue to focus on stable financial management.

■ Interest-Bearing Liabilities ■ Change in Remaining Years at the Time of (billion yen) 280 70.0 (%) (year)10.0 Procurement of Interest-Bearing Liabilities 5.0 (year) Average year remaining at the period end (right axis) 4.7 9.0 4.5 Interest-bearing liabilities (left axis) 4.4 240 60.0 Average remaining years at the time of 8.1(Note) LTV (based on acquisition price) (Note) (right axis) 8.0 procurement during the 19th Fiscal Period (left axis) 4.0 200 50.0 7.0 7.1 3.5 6.4 Medium-to-long term, upper-limit LTV target range 6.0 3.0 160 40.0 5.0 2.5 120 30.0 4.0 2.0

80 20.0 3.0 1.5 2.0 1.0 40 10.0 1.0 0.5

0 0.0 0.0 0.0 End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of After 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th public Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period offering (Note) Dotted line indicates average remaining years at the time of procurement (Note) LTV (based on acquisition price): Total interest-bearing liabilities / Total acquisition price of properties during the 19th Fiscal Period excluding short-term borrowings ■ Diversification of Repayment Dates ■ Balance of Borrowings by Financial Institution (million yen) Financial institution Balance (mm yen) Share 18,000 Investment Corporation Bond Sumitomo Mitsui Banking Corporation 41,900 21.9% 16,000 Sumitomo Mitsui Trust Bank 25,850 13.5% Development Bank of Japan 20,250 10.6% 14,000 Mizuho Bank 17,400 9.1% 12,000 Shinsei Bank 13,000 6.8% The Bank of Tokyo-Mitsubishi UFJ 12,500 6.5% 10,000 Resona Bank 11,500 6.0% 8,000 Mitsubishi UFJ Trust and Banking 6,000 3.1% The Bank of Fukuoka 5,500 2.9% 6,000 Kansai Urban Banking Corporation 5,000 2.6% 4,000 Mizuho Trust and Banking 5,000 2.6% Aozora Bank 4,500 2.4% 2,000 ORIX Bank Corporation 2,500 1.3% 0 The Gunma Bank 2,500 1.3% 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st 32nd 33rd 34th 35th 36th 37th 38th Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal The Shizuoka Bank 2,000 1.0% Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Tokio Marine & Nichido Fire Insurance 2,000 1.0% ■ Ratio of Fixed- to ■ Ratio of Long- to The Musashino Bank 2,000 1.0% Floating-Rate Borrowings Short-Term Liabilities The 77 Bank 2,000 1.0% After Public After Public 6.6 The Higashi-Nippon Bank 1,500 0.8% Offering Offering % The Hiroshima Bank 1,000 0.5% 29.0 9.3% The Kagawa Bank 1,000 0.5% % 31.1 % End of End of The Yamaguchi Bank 500 0.3% 19th Fiscal 19th Fiscal Taiyo Life Insurance Company 300 0.2% Period Period 68.9 71.0 Nippon Life Insurance Company 300 0.2% % % 90.7% Fukoku Mutual Life Insurance 200 0.1% No. 3 Unsecured Investment Corporation Bonds 3,000 1.6% 93.4% No. 4 Unsecured Investment Corporation Bonds 2,100 1.1% Fixed interest rates Long-term borrowings Total 191,300 100.0% Floating interest rates Short-term borrowings, etc. (Note) “After public offering” indicates assumed figures as of July 31, 2015. ■ Status of Rating Rating agency Target rating Rating Rating outlook

Rating and Investment Information, Inc. (R&I) Issuer rating A+ Stable

Japan Credit Rating Agency, Ltd. (JCR) Long-term issuer rating AA− Stable

16 II. Asset Management Report

1. Management Status and Other Performance Highlights Data

19th Period 18th Period 17th Period 16th Period 15th Period Fiscal Period From Dec. 1, 2014 From June 1, 2014 From Dec. 1, 2013 From June 1, 2013 From Dec. 1, 2012 ( To May 31, 2015 ) ( To Nov. 30, 2014 ) ( To May 31, 2014 ) ( To Nov. 30, 2013 ) ( To May 31, 2013 ) (1) Operating Performance (Millions of yen, except per unit data or where otherwise indicated) Operating revenues 10,387 9,764 8,588 8,432 7,615 Rental revenues 10,112 9,693 8,491 8,367 7,520 Operating expenses 5,617 5,325 4,827 4,755 4,306 Property-related expenses 4,487 4,325 3,931 3,870 3,499 Operating income 4,770 4,439 3,761 3,677 3,309 Ordinary income 4,032 3,642 3,006 2,956 2,590 Net income 4,032 3,641 3,016 2,960 2,589 (2) Properties, etc. (as of end of period) Total assets 432,233 399,555 380,723 363,654 342,573 [period-on-period percentage changes] [+8.2%] [+4.9%] [+4.7%] [+6.2%] [+5.2%] Interest-bearing liabilities 191,300 160,800 163,700 147,700 128,300 Net assets 222,955 222,593 201,655 201,683 201,345 [period-on-period percentage changes] [+0.2%] [+10.4%] [−0.0%] [+0.2%] [+0.1%] Unitholders’ capital 219,156 219,156 198,781 198,781 198,781 (3) Distributions Total distribution amount 4,032 3,641 3,016 2,960 2,589 Dividend payout 100.0% 100.0% 100.0% 100.0% 100.0% (4) Per Unit Information Total number of units issued (units) 441,000 441,000 395,798 395,798 395,798 Net assets per unit (yen) 505,566 504,746 509,490 509,561 508,707 Distribution per unit (yen) 9,142 8,256 7,621 7,478 6,542 Distribution amount from earnings per unit (yen) 9,142 8,256 7,621 7,478 6,542 Distribution amount in excess of earnings per unit (yen) – – – – – (5) Financial Indicators ROA Notes 2 1.0% 0.9% 0.8% 0.8% 0.8% [annual rate] and 3 [1.9%] [1.9%] [1.6%] [1.7%] [1.6%] ROE Notes 3 1.8% 1.7% 1.5% 1.5% 1.3% [annual rate] and 4 [3.6%] [3.4%] [3.0%] [2.9%] [2.6%] Capital ratio 51.6% 55.7% 53.0% 55.5% 58.8% [period-on-period percentage changes] [−4.1%] [+2.7%] [−2.5%] [−3.3%] [−3.0%] LTV (loan to value) 44.3% 40.2% 43.0% 40.6% 37.5% Property leasing cash flows (NOI) Note 5 7,180 6,866 5,916 5,826 5,300 (6) Other Referential Information Number of investment properties 47 46 44 44 41 Number of tenants Note 6 450 479 458 442 410 Total rentable area (m2) 288,833.07 286,088.89 259,381.62 244,877.17 225,651.87 Occupancy rate Note 7 97.3% 97.2% 96.4% 96.3% 95.0% Depreciation 1,554 1,497 1,356 1,329 1,280 Capital expenditures 905 570 454 294 278

(Note 1) Operating revenues, etc. do not include consumption taxes, etc. (Note 2) ROA: Ordinary income ÷ [(Total assets at beginning of period + Total assets at end of period) ÷ 2] × 100 (Note 3) Figures for the 15th Fiscal Period are the annualized figures calculated based on 182 days of management. Figures for the 16th Fiscal Period are the annualized figures calculated based on 183 days of management. Figures for the 17th Fiscal Period are the annualized figures calculated based on 182 days of management. Figures for the 18th Fiscal Period are the annualized figures calculated based on 183 days of management. Figures for the 19th Fiscal Period are the annualized figures calculated based on 182 days of management. (Note 4) ROE: Net income ÷ [(Net assets at beginning of period + Net assets at end of period) ÷ 2] × 100 (Note 5) Property leasing cash flows (NOI): Rental revenues − Property-related expenses + Depreciation (Note 6) Number of tenants is the number of end tenants. When there is a tenant occupying multiple buildings, the concerned tenant is counted and stated for each individual building. (Note 7) Occupancy rate: Total leased area ÷ Total rentable area

II. Asset Management Report 17 2. Developments in Asset Management in the Fiscal Period under Review

(1) Brief History of the Investment Corporation Daiwa Office Investment Corporation (the former DA Office Investment Corporation; hereinafter referred to as “DOI”) was established on July 11, 2005 as an investment corporation under the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951, including subsequent revisions, hereinafter referred to as the “Investment Trust Act”) by the founder (the former daVinci Select; now, Daiwa Real Estate Asset Management (hereinafter referred to as the “Asset Manager”)). After its establishment, DOI implemented an additional issuance of investment units through a public offering (99,600 units) on October 18, 2005 and then listed on the Tokyo Stock Exchange, Inc. (TSE) Real Estate Investment Trust Section (stock code: 8976) on the following day. Though initial assets under management were 79,573 million yen (sum total of acquisition price), subsequent activities, such as additional acquisition of properties and replacement of portfolio properties, resulted in the assets under management amounting to 413,259 million yen as of the last day of May 2015. DOI strives to secure stable revenue and sustained growth of the investment assets based on a clear portfolio development policy of specializing in investment in office buildings, with a particular focus on investment in a total floor area of more than about 2,000m2 situated in downtown Tokyo, as well as through dedicated efforts to heighten tenant satisfaction levels. (2) Investment Environment and Management Performance (A) Investment Environment (from December 2014 to May 2015) The Japanese economy during the fiscal period under review saw a modest recovery as the rebound from the rush demand that accompanied the consumption tax hike implemented in April 2014 receded against the backdrop of improving employment and income environments. Moreover, an improvement of corporate performance and increase of capital investment were seen, boosted by the advancing yen depreciation and high stock prices from the Bank of Japan’s large-scale additional monetary easing measures as well as the decision to postpone the additional consumption tax hike and depression of prices due to low crude oil prices. The GDP in the period of January to March 2015 announced by the Cabinet Office indicated a two-quarter consecutive growth, and the Japanese economy is expected to gradually recover as improvements are seen in the employment and income environments and underpinning from private consumption is expected. In the office building leasing market in central Tokyo, with new supply having settled down, the vacancy rate took a turn after peaking in June 2013, dropping to 5.17% at the end of May 2015. Led by improvement in the vacancy rate for large buildings, the overall vacancy rate that includes small- to medium-sized buildings also continues to be on an improving trend. The drop in the vacancy rate is leading to a stronger sense that office rent is also bottoming out, and rent increases were seen for large buildings in some areas. The market as a whole continues to see increase in rent, albeit slight. For the office building transaction market, an appetite for property acquisitions continued to be strong among real estate companies, funds (including J-REITs) and oversea investors with the continuing favorable equity procurement environment and proactive lending attitude by financial institutions backed by the forecast of an increase in property prices in accordance with expectations for economic recovery. (B) Management Performance In view of increasing the long-term EPS (EPS (net income per unit) after deducting gain on sales of properties) over the medium to long term, DOI continued to work on “external growth,” which aims to boost revenue through acquisition of properties, and “internal growth,” which aims to maximize income generating from existing properties. Concerning external growth, DOI acquired “Daiwa Ebisu 4-chome Building” (acquisition price: 4,135 million yen) and “LAQUAS Higashi Shinjuku” (acquisition price: 8,450 million yen) in December 2014 and “Concept Aoyama” (acquisition price: 9,800 million yen) and “Shinsen Place” (acquisition price: 4,800 million yen) in March 2015, “Glass City Shibuya” (acquisition price: 16,000 million yen) and “Meguro Place Tower” (acquisition price: 5,600 million yen) in May 2015. Moreover, DOI sold five properties (Daiwa Nihombashi Honcho, Daiwa Ginza 1-chome, Daiwa Kinshicho, Daiwa Tsukiji 616 and Benex S-3). As a result, DOI’s assets under management as of the end of the 19th Fiscal Period (May 31, 2015) totaled 47 properties, the sum total of acquisition prices of which amounted to 413,259 million yen. Concerning internal growth, while the office leasing market weakened, DOI conducted proactive leasing, such as capturing needs for floor expansion within the same property through strengthening relationships with existing tenants and reinforcing collaboration with leasing brokers and property managers. As a result, the occupancy rate as of the end of the 19th Fiscal Period (May 31, 2015) was 97.3%.

18 (3) Overview of Capital Procurement (A) Procurement of Capital for New Property Acquisitions In the 19th Fiscal Period, DOI made the following borrowings to fund the acquisition of new properties. (a) A total of 4,000 million yen was borrowed from Sumitomo Mitsui Banking Corporation, the Bank of Tokyo-Mitsubishi UFJ, Ltd., Mizuho Bank, Ltd. and Shinsei Bank, Ltd. on December 1, 2014 to fund the acquisition of a new property (Daiwa Ebisu 4-chome Building) acquired on the same day. (b) A total of 8,500 million yen was borrowed from Sumitomo Mitsui Banking Corporation, the Bank of Tokyo-Mitsubishi UFJ, Ltd., Mizuho Bank, Ltd., Sumitomo Mitsui Trust Bank, Limited, the Development Bank of Japan Inc., Resona Bank, Ltd. and Mitsubishi UFJ Trust and Banking Corporation on December 3, 2014 to fund the acquisition of a new property (LAQUAS Higashi Shinjuku) acquired on the same day. (c) A total of 22,500 million yen was borrowed from Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, Limited, Mizuho Bank, Ltd., Shinsei Bank, Ltd., Resona Bank, Ltd., the Bank of Fukuoka, Ltd., the Development Bank of Japan Inc. and the 77 Bank, Ltd. on May 1, 2015 to fund the acquisition of new properties (Glass City Shibuya and Meguro Place Tower) acquired on the same day. Furthermore, new investment units were issued through public offering with June 2, 2015 as the payment date to fund the acquisition of a new property (River Gate) acquired on the same date, but a commitment- type term loan agreement with a 20,500 million yen maximum available borrowing amount was concluded with Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Sumitomo Mitsui Trust Bank, Limited, Resona Bank, Ltd. and Shinsei Bank, Ltd. on April 27, 2015 as a measure against a situation in which the actual proceeds from the public offering would be less than the initial estimated amount (the agreement ended with the expiration of the borrowing period on June 17, 2015). (B) Procurement of Capital for Repayment of Borrowings In the 19th Fiscal Period, DOI made the following borrowings to fund the repayment of borrowings that were due for repayment. (a) A total amount of 2,500 million yen was borrowed from Resona Bank, Ltd. on February 27, 2015 to fund part of the repayment of the 3,000 million yen borrowed from the same bank that was due for repayment on the same day. The remaining 500 million yen was allocated from cash on hand. (b) A total amount of 3,500 million yen was borrowed from the Development Bank of Japan Inc. and Shinsei Bank, Ltd. on March 31, 2015 to fund part of the repayment of the 7,500 million yen borrowed from the Development Bank of Japan Inc., Shinsei Bank, Ltd., the Bank of Tokyo-Mitsubishi UFJ, Ltd., Sumitomo Mitsui Banking Corporation and Mizuho Bank, Ltd. that was due for repayment on the same day. The remaining 4,000 million yen was allocated from cash on hand. (c) A total amount of 2,500 million yen was borrowed from Mizuho Bank, Ltd. and the Bank of Tokyo- Mitsubishi UFJ, Ltd. on May 29, 2015 to fund the repayment of the 2,500 million yen borrowed from Mizuho Bank, Ltd. and the Bank of Yokohama, Ltd. due for repayment on the same day.

(C) Status of Interest-Bearing Liabilities at End of the Fiscal Period under Review As a result of the above, the balance of interest-bearing liabilities outstanding as of the end of the 19th Fiscal Period (May 31, 2015) stood at 191,300 million yen (short-term loans payable: 9,500 million yen; long- term loans payable: 176,700 million yen; investment corporation bonds: 5,100 million yen). The balance of the current portion of long-term loans payable stood at 8,300 million yen. Concerning borrowings in the 19th Fiscal Period, DOI made borrowings centering on periods of between 7 years and 8.5 years with the maximum being 9 years and extend the average remaining period from 4.39 years (18th Fiscal Period) to 4.63 years (19th Fiscal Period). Furthermore, liabilities costs were lowered by reducing credit spreads.

II. Asset Management Report 19 (4) Capital Expenditures during the 19th Fiscal Period The following summarizes the primary construction work that constitutes capital expenditures implemented during the 19th Fiscal Period. Capital expenditures for the 19th Fiscal Period amounted to 905 million yen and, when combined with the 228 million yen in repair expenses charged to the 19th Fiscal Period expenses, totals 1,133 million yen in construction work implemented.

Name of real estate Construction properties (Location) Purpose Period amount paid (millions of yen) Shinjuku Maynds Tower CVCF upgrading work and renovation From: Oct. 2013 (Shibuya-ku, Tokyo) work for disaster prevention facilities To: Mar. 2015 373 Daiwa Tsukishima Building From: Mar. 2015 (Chuo-ku, Tokyo) Upgrading of air-conditioning system To: May 2015 90 Daiwa Jimbocho From: Apr. 2015 (Chiyoda-ku, Tokyo) Upgrading of air-conditioning system To: May 2015 58 From: Dec. 2014 Other To: May 2015 384 Total 905 (5) Overview of Financial Performance and Distributions As a result of the management described above, DOI posted financial performance for the 19th Fiscal Period of 10,387 million yen in operating revenue, 4,770 million yen in operating income, 4,032 million yen in ordinary income and 4,032 million yen in net income. Concerning distributions, to ensure that the amount equivalent to distributions from earnings would be included in the amount of tax-deductible expenses based on application of special provisions for taxation of corporation tax (Article 67-15 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957; including amendments thereto) (the “Special Taxation Measures Act”)), DOI decided to distribute the entire amount of unappropriated retained earnings, excluding fractions of the distribution amount per unit that are less than 1 yen. Accordingly, DOI declared a distribution amount per unit of 9,142 yen.

3. Outlook for the Next Fiscal Period (1) Investment Environment The Japanese economy ahead is expected to see the ongoing various economic measures, centering on the public works projects and financial policies promoted by the Abe administration, and the large-scale monetary easing policy implemented by Bank of Japan as well as pickup in overseas economies, centering on developed countries, lead to moderate economic recovery through improvement in corporate performance, centering on public-investment- and exports-related companies, and recovery in personal spending. However, factors such as the confusion of the Japanese financial market given the postponement of the consumption tax hike and the turmoil in overseas economies / overseas financial markets with the emergence of geopolitical risks pose potential risks of disrupting the Japanese real economy and financial environment and are thus thought to require attention In the office building leasing market, while new supply is on a low note, factors such as improvement in employment are stimulating demand, resulting in the vacancy rate dropping. Improvement in corporate performance is forecast to increase demand for office floor space and rent is expected to improve as a consequence. In the office building transaction market, backed by the favorable financing environment and expectations of rent rising, among other factors, property acquisition appetite among investors overseas, real estate companies and funds (including J-REITs) is thought to grow even stronger. (2) Future Management Policy and Tasks (A) Strategy for Managing Existing Properties Under the office leasing market conditions described above, the tenant side is also expected to become more selective with properties. Consequently, DOI will carry out operational management under the following policy with an aim to enhance the competitiveness of existing properties and thereby increase the long-term EPS over the medium to long term. (a) Maintain and raise occupancy rates Concerning existing tenants, strive to reduce vacancy risks by improving the quality of buildings, equipment and management system. In addition, concerning new tenants, strive to maintain and raise occupancy rates through the provision of services that are of higher satisfaction levels than competing properties through proactive participation in the market.

20 (b) Maintain and raise profitability Aim to secure stable revenue over the medium to long term through further strengthening good relationships with existing tenants, as well as proactively tapping the needs of new tenants by discerning the market environment. (c) Lower operational management costs Strive to lower operational management costs based on maintaining office environments of high tenant satisfaction levels by implementing efficient operational management and reviewing systematic construction work by optimally leveraging the economies of scale achieved from proactively realizing external growth. (B) Strategy for New Property Investments DOI will invest in office buildings that have a total floor area of about 2,000m2 or more based on various external growth strategies, while maintaining a balance with the asset acquisition environment and financing situation. In principle, considerations will focus on Tokyo as the investment target area, but DOI will also consider investing in competitive properties in cities other than Tokyo from a viewpoint of territorially-distributed investments. As pipeline support, in addition to expanding its own information-sourcing channels, DOI will continue to search for properties that meet its investment criteria by proactively gathering real estate transaction market information through greater collaboration with the Asset Manager and Sponsor Group and utilizing the Group’s extensive network of clients, partners, etc. In the 19th Fiscal Period, DOI acquired “Daiwa Ebisu 4-chome Building,” “LAQUAS Higashi Shinjuku,” “Concept Aoyama,” “Shinsen Place,” “Glass City Shibuya” and “Meguro Place Tower” which is located in Tokyo. DOI believes that acquisition of these properties will contribute to further stabilization and enhancement of the portfolio. DOI will continue to strive to acquire properties in line with the investment strategy described above. (C) Financial Strategy DOI will conduct disciplined financial management of the following basic content. (a) Control leverage by keeping the ratio of interest-bearing liabilities to total assets (LTV) within the range of 40% to 50% at maximum, taking into consideration also the real LTV, etc., as a principle. (b) Diversify repayment deadlines, targeting 30.0 billion yen as the maximum amount of interest-bearing liabilities that shall become due during any single fiscal period as a principle. (c) Aim to have long-term loans account for at least 70% of total loans as a principle. (d) Achieve diversification of lenders, which shall mainly be Japanese financial institutions. (e) Pursuant to its fund management rules, maintain stability in its financial standing by managing necessary funds, such as the amount equivalent to distributions paid, separately from working capital. (D) Schedule of Capital Expenditures The following are the principal capital expenditures arising from renovation construction work, etc. currently planned for existing portfolio properties. Please note that the expected construction amount includes portions that are expensed as a separate account item of accounting costs.

Expected construction amount (millions of yen) Name of real estate Scheduled Amount Total properties Purpose implementation paid (Location) period Total amount amount during already current paid period Shinjuku Maynds Tower Renovation work for central From: Oct. 2013 (Shibuya-ku, Tokyo) supervisory system To: Sept. 2015 297 74 131

Daiwa Ebisu 4-chome Renovation work for air- From: July 2015 Building 121 – – (Shibuya-ku, Tokyo) conditioning system To: Nov. 2015 Upgrading of main central Shinjuku Maynds Tower supervisory system VAV and From: Oct. 2013 110 33 49 (Shibuya-ku, Tokyo) controller To: Sept. 2015 Daiwa Akasaka Establishment of entrance on the From: Jan. 2015 (Minato-ku, Tokyo) public open space side To: Sept. 2015 101 65 –

II. Asset Management Report 21 III. Balance Sheets

As of November 30, 2014 and May 31, 2015 (Thousands of yen) As of As of November 30, 2014 May 31, 2015 Assets Current Assets: Cash and cash equivalents (Notes 4 and 5) 17,767,864 22,790,814 Tenant receivables 303,995 275,792

Consumption taxes receivable 243,389 - Prepaid expenses 322,520 403,225 Deferred tax assets (Note 15) 1,489 185 Other current assets 62,838 72,379 Total Current Assets 18,702,095 23,542,395 Investment Properties, at cost (Notes 6 and 7): Land 12,302,227 12,302,227 Buildings and structures 3,109,305 3,130,285

Tools, furniture and fixtures 18,538 18,958

Construction in progress 4,032 3,449

Land in trust accounts 289,916,770 314,767,115

Buildings and structures in trust accounts 90,038,856 91,803,763

Machinery and equipment in trust accounts 826,879 707,599

Tools, furniture and fixtures in trust accounts 116,863 150,965

Construction in progress in trust accounts 548,059 408,642

Other tangible fixed assets in trust accounts 5,909 4,337

Less: accumulated depreciation (20,113,897) (18,900,000)

Leasehold rights 2,407,102 2,407,102

Leasehold rights in trust accounts 306,884 306,884

Total Investment Properties, net 379,487,527 407,111,326 Other Assets: Trademark 1,072 883 Lease and guarantee deposits in trust 113,684 113,684 Long-term prepaid expenses 1,094,350 1,304,602 Deferred tax assets (Note 15) 104,136 110,868 Deferred investment corporation bond issuance costs 38,282 35,344 Others 13,879 13,539 Total Other Assets 1,365,403 1,578,920

Total Assets 399,555,025 432,232,641

The accompanying notes are an integral part of these financial statements.

(Thousands of yen) As of As of November 30, 2014 May 31, 2015 Liabilities Current Liabilities: Accounts payable 941,245 889,756 Short-term debt (Notes 5 and 10) 2,500,000 9,500,000

Long-term debt due within one year (Notes 5 and 10) 16,600,000 8,300,000 Accounts payable – other 336,673 632,432 Income taxes payable 975 825

Accrued consumption taxes - 342,585 Rent received in advance 1,156,701 1,298,772 Other current liabilities 95,502 357,535 Total Current Liabilities 21,631,096 21,321,905 Long-Term Liabilities:

Investment corporation bond (Notes 5 and 10) 5,100,000 5,100,000

Long-term debt (Notes 5 and 10) 136,600,000 168,400,000

Tenant security deposits including trust accounts (Note 5) 13,325,899 14,112,797

Derivative liabilities (Note 5) 304,938 343,138

Total Long-Term Liabilities 155,330,837 187,955,935

Total Liabilities 176,961,933 209,277,840

Net Assets (Notes 9 and 16) Unitholders’ Equity:

Unitholders’ capital 219,155,572 219,155,572

Units authorized: 2,000,000 units Units issued and outstanding: 441,000 units as of November 30, 2014 and May 31, 2015 Retained earnings 3,641,156 4,031,830 Total Unitholders’ Equity 222,796,728 223,187,402 Valuation and translation adjustments Deferred gains or losses on hedges (203,636) (232,601) Total valuation and translation adjustments (203,636) (232,601)

Total Net Assets 222,593,092 222,954,801 Total Liabilities and Net Assets 399,555,025 432,232,641

The accompanying notes are an integral part of these financial statements.

III. Balance Sheets 23 IV. Statements of Income and Retained Earnings

For the fiscal periods ended November 30, 2014 and May 31, 2015 (Thousands of yen) For the fiscal period ended For the fiscal period ended November 30, 2014 May 31, 2015 Operating Revenues: Rental revenues (Note 8) 9,693,133 10,112,468 Other revenues related to property leasing (Note 8) 70,578 34,235 Gain on sale of investment properties (Note 13) – 240,547 Total Operating Revenues 9,763,711 10,387,250 Operating Expenses: Property-related expenses (Note 8) 4,324,674 4,486,646 Asset management fees 802,292 838,944 Asset custody fees 19,654 20,432 Administrative service fees 71,491 67,738 Trust fees 22,678 21,278 Directors’ compensation 5,400 5,400 Other operating expenses 78,529 176,788 Total Operating Expenses 5,324,718 5,617,226 Operating Income 4,438,993 4,770,024 Non-Operating Revenues: Interest income 611 798 Reversal of distribution payable 638 868 Other non-operating revenues 1,689 11,653 Total Non-Operating Revenues 2,938 13,319 Non-Operating Expenses: Interest expense 546,611 566,001 Interest expense on investment corporation bonds 35,642 16,892 Borrowing expenses 166,054 159,621 New investment units issuance costs 46,104 – Other non-operating expenses 5,514 8,366 Total Non-Operating Expenses 799,925 750,880 Ordinary Income 3,642,006 4,032,463 Income Before Income Taxes 3,642,006 4,032,463 Income taxes – current 987 887 Income taxes – deferred (4) 6 Total Income Taxes (Note 15) 983 893 Net Income 3,641,023 4,031,570 Retained Earnings Brought Forward 133 260 Retained Earnings at End of Period 3,641,156 4,031,830

The accompanying notes are an integral part of these financial statements.

24 IV. Statements of Income and Retained Earnings V. Statements of Changes in Net Assets

For the fiscal periods ended November 30, 2014 and May 31, 2015 (Thousands of yen)

Unitholders’ Equity Deferred Gains Number of or Losses on Total Net Units Unitholders’ Retained Assets Capital Earnings Hedges Balance as of May 31, 2014 395,798 198,780,951 3,016,511 (142,335) 201,655,127

Issuance of new investment units 45,202 20,374,621 – – 20,374,621 Cash distributions declared – – (3,016,378) – (3,016,378) Net income – – 3,641,023 – 3,641,023 Net changes of items other than – – – (61,301) (61,301) unitholders’ equity Balance as of November 30, 2014 441,000 219,155,572 3,641,156 (203,636) 222,593,092

Cash distributions declared – – (3,640,896) – (3,640,896) Net income – – 4,031,570 – 4,031,570 Net changes of items other than – – – (28,965) (28,965) unitholders’ equity Balance as of May 31, 2015 441,000 219,155,572 4,031,830 (232,601) 222,954,801 The accompanying notes are an integral part of these financial statements.

V. Statements of Changes in Net Assets 25 VI. Statements of Cash Flows

For the fiscal periods ended November 30, 2014 and May 31, 2015 (Thousands of yen)

For the fiscal period For the fiscal period ended ended November 30, 2014 May 31, 2015 Cash Flows from Operating Activities: Income before income taxes 3,642,006 4,032,463 Depreciation and amortization 1,498,702 1,555,389 Amortization of bond issuance costs 3,009 2,938 New investment units issuance costs 46,104 – Interest expense 582,253 582,893 (Increase) decrease in tenant receivables (11,607) 28,203 Increase (decrease) in accounts payable 60,918 (38,144) Increase in rent received in advance 185,224 142,070 Decrease in investment properties due to sale – 21,334,755 Interest payments (592,677) (578,393) (Increase) decrease in consumption taxes refundable (108,337) 243,389 Other, net (418,762) 272,853 Net Cash Provided by Operating Activities 4,886,833 27,578,416 Cash Flows from Investing Activities: Payments for purchases of investment properties (24,912,162) (50,200,715) Payments for purchases of intangible assets – (780) Proceeds from tenant security deposits 1,606,469 1,805,797 Refunds of tenant security deposits (724,367) (1,018,898) Net Cash Used in Investing Activities (24,030,060) (49,414,596) Cash Flows from Financing Activities: Proceeds from short-term debt – 9,500,000 Repayment of short-term debt (3,000,000) (2,500,000) Proceeds from long-term debt 17,500,000 34,000,000 Repayments of long-term debt (19,000,000) (10,500,000) Proceeds from issuance of investment corporation bonds 5,060,426 – Redemption of investment corporation bonds (3,500,000) – Proceeds from issuance of new investment units 20,328,517 – Distributions paid (3,015,579) (3,640,870) Net Cash Provided by Financing Activities 14,373,364 26,859,130 Net Change in Cash and Cash Equivalents (4,769,863) 5,022,950 Cash and Cash Equivalents at Beginning of Period 22,537,727 17,767,864 Cash and Cash Equivalents at End of Period (Note 4) 17,767,864 22,790,814

The accompanying notes are an integral part of these financial statements.

26 VI. Statements of Cash Flows VII. Notes to Financial Statements

For the fiscal periods ended November 30, 2014 and May 31, 2015 Note 1 – Organization and Basis of Presentation Organization Daiwa Office Investment Corporation (the former DA Office Investment Corporation; hereinafter referred to as “DOI”) was established on July 11, 2005 as an investment corporation under the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951, including subsequent revisions, hereinafter referred to as the “Investment Trust Act”) by the founder (the former daVinci Select; now, Daiwa Real Estate Asset Management (hereinafter referred to as the “Asset Manager”)). DOI is an externally managed real estate fund, established as an investment corporation. The Asset Manager, as DOI’s asset management company, is engaged in acquiring, managing, leasing, and renovating office properties. Daiwa Securities Group Inc. currently owns 100% of the Asset Manager. On October 18, 2005, DOI had raised approximately 49,498,710 thousand yen through an initial public offering of units. Those units were listed on the J-REIT section of the Tokyo Stock Exchange. As of May 31, 2015, DOI had ownership or trust beneficiary interests in 47 office properties with approximately 288,833 m2 of rentable office space and had leased office space to 450 tenants engaged in a variety of businesses. The occupancy rate for the office properties was approximately 97.3%.

Basis of Presentation The accompanying financial statements have been prepared in accordance with the provisions set forth in the Investment Trust Act, the Financial Instruments and Exchange Act and their related accounting regulations, and in conformity with accounting principles generally accepted in Japan (“Japanese GAAP”), which are different in certain respects as to application and disclosure requirements of International Financial Reporting Standards or accounting principles generally accepted in the United States of America. The accompanying financial statements have been reformatted and translated into English from the financial statements of DOI prepared in accordance with Japanese GAAP and filed with the appropriate Local Finance Bureau of the Ministry of Finance as required by the Financial Instruments and Exchange Act. In preparing the accompanying financial statements, relevant notes have been expanded and certain reclassifications have been made from the Japanese GAAP financial statements. Certain supplementary information included in the statutory Japanese GAAP financial statements, but not required for fair presentation, is not presented in the accompanying financial statements. DOI maintains its accounting records in Japanese yen. DOI’s fiscal period is a six-month period ending at the end of May and November of each year.

Note 2 – Summary of Significant Accounting Policies (a) Cash and Cash Equivalents Cash and cash equivalents consist of cash, demand deposits, and short-term investments which are highly liquid, readily convertible to cash and with insignificant risk of market value fluctuation, with maturities of three months or less from the date of acquisition.

(b) Investment Properties Investment properties are recorded at cost, which includes the allocated purchase price, related costs and expenses for acquisition of the office properties and the trust beneficiary interests in trust. Investment property balances are depreciated using the straight-line method over the estimated useful lives as follows: As of November 30, 2014 As of May 31, 2015 Buildings and structures 2-64 years 2-64 years Machinery and equipment 3-23 years 4-23 years Tools, furniture and fixtures 5-18 years 5-18 years Cost related to the renovation, construction improvement of properties is capitalized. Expenditures for repairs and maintenance which do not add to the value or prolong the useful life of property, are expensed as incurred.

VII. Notes to Financial Statements 27 (c) Deferred Investment Corporation Bond Issuance Costs Deferred investment corporation bond issuance costs are amortized on a straight-line basis over the respective terms of the bonds.

(d) New Investment Units Issuance Costs The issuance costs of new investment units are expensed when incurred.

(e) Income Taxes Deferred tax assets and liabilities are computed based on the difference between the financial statements and income tax bases of assets and liabilities using the statutory rate.

(f) Real Estate Taxes Investment properties are subject to various taxes, such as property taxes and city planning taxes. Owners of the properties are registered by records maintained in each jurisdiction by the local government. The taxes are imposed on the registered record owner as of January 1 of each year, based on an assessment made by the local government.

When a property is purchased within the calendar year, the taxes for corresponding calendar year are imposed on the seller. DOI pays the seller the corresponding amount of the taxes for the period from property acquisition date to December 31 of the calendar year and capitalizes these amounts as acquisition costs of the property, rather than expensing them. In subsequent calendar years, such taxes on investment properties are charged as operating expenses in each fiscal period.

The following is a summary of capitalized real estate taxes. (Thousands of yen) For the fiscal period ended For the fiscal period ended November 30, 2014 May 31, 2015 Capitalized real estate taxes 59,352 92,108

(g) Consumption Taxes Consumption taxes are excluded from transaction amounts. Generally, consumption taxes paid are offset against the balance of consumption taxes withheld. As such, the excess of payments over amounts withheld is included in the current assets while the excess of amounts withheld over payments is included in the current liabilities. Non- deductible consumption taxes relating to investment properties are amortized equally over five years.

(h) Hedge Accounting DOI enters into derivative transactions for the purpose of hedging risks in the Articles of Incorporation of DOI in accordance with its general risk management policy. DOI uses interest-rate swaps as hedging instruments in order to hedge the risk of interest rate fluctuations related to borrowings. Pursuant to Japanese GAAP, DOI applies the special accounting treatment to interest-rate swaps which qualify for hedge accounting and meet specific criteria. Under the special accounting treatment, the related differentials paid or received under such swap contracts can be recognized and included in interest expense or income of the hedged assets or liabilities, and the interest-rate swaps are not required to be measured at fair value separately. The assessment of hedge effectiveness has been made each fiscal period except for interest-rate swaps which meet the special criteria.

(i) Revenue Recognition Operating revenues consist of rental revenues including base rents and common area charges, and other operating revenues such as utility charge reimbursements, parking space rental revenues and other income. Rental revenues are generally recognized on an accrual basis over the life of each lease. Utility charge reimbursements are recognized when earned and their amounts can be reasonably estimated.

(j) Accounting Treatment of Trust Beneficiary Interests in Real Estate For trust beneficiary interests in real estate, all assets and liabilities with respect to assets in trust, as well as all income generated and expenses incurred with respect to assets in trust, are recorded in the relevant balance sheet and income statement accounts of the accompanying financial statements.

28 Note 3 – Changes in presentation Balance sheets Land, buildings and structures, tools, furniture and fixtures, construction in progress and leasehold rights, owned by DOI were each included in ”Land in trust accounts,” “Buildings and structures in trust accounts,” “Tools, furniture and fixtures in trust accounts,” “Construction in progress in trust accounts” and “Leasehold rights in trust accounts” under “Investment Properties, at cost” in the fiscal period ended November 30, 2014. In order to better clarify accountable events and others in financial statements, they were changed to presented separately as “Land,” “Buildings and structures,” “Tools, furniture and fixtures”, “Construction in progress” and “Leasehold rights” under the same category from the fiscal period ended May 31, 2015. To reflect this change in presentation, reclassification of accounts has been made for the financial statement for the fiscal period ended November 30, 2014.

Note 4 – Cash and Cash Equivalents Cash and cash equivalents stated on the accompanying balance sheets and statements of cash flows as of November 30, 2014 and May 31, 2015 consisted of the following: (Thousands of yen) As of November 30, 2014 As of May 31, 2015 Cash and deposits 12,984,950 16,703,953 Cash and deposits in trust 4,782,914 6,086,861 Cash and cash equivalents 17,767,864 22,790,814

VII. Notes to Financial Statements 29 Note 5 – Financial Instruments (a) Qualitative Information for Financial Instruments Policy for Financial Instrument Transactions DOI raises funds through borrowings, issuance of investment corporation bonds and issuance of investment units for acquisition and renovation of investment properties, cash distributions of dividends and repayment of bank borrowings. In financing through interest-bearing debt, DOI raises funds with longer term, fixed-rate and well- diversified maturities to secure stable financing capacity and avoid potential risk of rising interest rates. Surplus funds are managed considering risk and liquidity, by investing in highly liquid monetary assets and securities (in principle, deposits). DOI enters into derivative transactions only for the purpose of hedging interest rate risks arising from liabilities. Nature and Extent of Risks arising from Financial Instruments and Risk Management Proceeds from borrowings and investment corporation bonds are used mainly to acquire investment properties and repay or redeem outstanding borrowings and bonds. These borrowings and bonds are exposed to liquidity risk. Such risk is managed in ways such as maintaining the LTV ratio at low levels, diversifying maturities, keeping the ratio of long-term debt to total debt at high levels, and diversifying lenders. For the floating-rate borrowings exposed to the risk of future interest rate fluctuations, DOI uses derivative transactions (interest-rate swap) as hedging instruments, in order to avoid interest rate fluctuations and to fix the amount of interest payments for floating-rate borrowings. DOI also uses commitment-type term loans in order to mitigate funding risk at acquisitions of properties through forward commitments and other means. DOI evaluates the effectiveness of hedges by the correlation between the change in aggregated amount of cash flow of the hedging instruments and the change in aggregated amount of cash flow of the hedged items. The assessment of hedge effectiveness is omitted for the interest-rate swaps which meet the specific criteria under the special accounting treatment. Derivative transactions are executed and monitored in compliance with the rules and procedures set forth in the risk management policy of DOI. Tenant security deposits including trust accounts are exposed to liquidity risk arising from refunding deposits in the event of vacating of properties by tenants. Such risk is managed by reserving some parts of the funds. Bank deposits are used for investing DOI’s surplus funds. These bank deposits are exposed to credit risks such as bankruptcy of the depository financial institutions. DOI manages credit risk by investing only in short-term deposit and setting a minimum credit rating requirement for the depository financial institutions (excluding deposits for settlement purposes). Supplemental Explanation regarding Fair Value of Financial Instruments The fair value of financial instruments is based on their quoted market price. When there is no quoted market price available, fair value is reasonably estimated. Since certain assumptions and factors are reflected in estimating the fair value, different assumptions and factors could result in a different value. Also, the contractual amounts of derivative transactions do not represent the market risk involved in these derivative transactions.

30 (b) Estimated Fair Value of Financial Instruments Book value, fair value and difference between the two as of November 30, 2014 and May 31, 2015 were as follows: (Thousands of yen) As of November 30, 2014 As of May 31, 2015 Assets Book value Fair value Difference Book value Fair value Difference Cash and cash equivalents 17,767,864 17,767,864 – 22,790,814 22,790,814 – Total 17,767,864 17,767,864 – 22,790,814 22,790,814 – Liabilities Short-term debt 2,500,000 2,500,000 – 9,500,000 9,500,000 – Long-term debt due within one 16,600,000 16,603,735 3,735 8,300,000 8,303,753 3,753 year Investment corporation bond 5,100,000 5,121,660 21,660 5,100,000 5,081,325 (18,675) Long-term debt 136,600,000 136,741,916 141,916 168,400,000 168,552,648 152,648

Total 160,800,000 160,967,311 167,311 191,300,000 191,437,726 137,726

Derivative (309,242) (309,242) – (343,642) (343,642) – transactions (*) (*) The value of assets and liabilities arising from derivatives is shown at net value and with the amount in parenthesis indicating the net liability position. The financial instruments whose fair values are deemed extremely difficult to determine are excluded from the above table (See Note 2 below). Notes: 1. Methods to estimate fair value of financial instruments and derivative transactions Assets: (1) Cash and cash equivalents Due to the short maturities, the book value of these assets is deemed a reasonable approximation of the fair value. Liabilities: (1) Short-term debt, long-term debt due within one year and long-term debt For short-term debt and long-term debt with floating interest rates, their fair value and book value are nearly identical and there are no significant changes in DOI’s credit risk after borrowing. Therefore, for these items, their book value is assumed as their fair value. For short-term debt and long-term debt with fixed interest rates, their fair value is calculated based on the present value of principle and interest cash flows discounted at the current interest rate which is estimated to be applied if similar new debt is entered into. However, the fair value of certain floating-rate long term debt that qualifies for the special treatment of interest-rate swaps is calculated based on the present value of principle and interest cash flows which are processed as a single unit with the interest-rate swap. (2) Investment corporation bond The fair value of investment corporation bond is based on their quoted market price.

VII. Notes to Financial Statements 31 Derivative Transactions: The Company applies the hedge accounting for all derivative transactions. Contractual amount and fair value were as follows: (Thousands of yen) Hedge Type of As of November 30, 2014 accounting derivative Contracted amount Fair value (*1) method transaction Hedged item Total Due after one year Deferral hedge Interest-rate swap accounting Receive floating/ Long-term debt 71,400,000 64,400,000 (309,242) method Pay fixed Special treatment Interest-rate swap for interest-rate Receive floating/ Long-term debt 35,350,000 29,350,000 – (*2) swaps Pay fixed 106,750,000 93,750,000 (309,242)

(Thousands of yen)

Hedge Type of As of May 31, 2015 accounting derivative Contracted amount Fair value (*1) method transaction Hedged item Total Due after one year Deferral hedge Interest-rate swap accounting Receive floating/ Long-term debt 66,400,000 64,400,000 (343,642) method Pay fixed Special treatment Interest-rate swap for interest-rate Receive floating/ Long-term debt 32,850,000 27,350,000 – (*2) swaps Pay fixed 99,250,000 91,750,000 (343,642)

(*1) The fair value is provided by financial institutions. (*2) Fair values of interest-rate swaps with the special treatment are included in fair values of related long-term debt as the interest-rate swaps and hedged debt are processed as single unit with the hedged long-term debt.

2. Financial instruments whose fair value are deemed extremely difficult to determine Tenant security deposits including trust accounts (with a book value of 13,325,899 thousand yen as of November 30, 2014 and 14,112,797 thousand yen as of May 31, 2015) that have been deposited by tenants were excluded from the scope of fair value disclosure because they are not marketable, and the actual deposit period is not estimable, which in turn makes it difficult to reasonably estimate the future cash flows.

3. Redemption schedule for monetary claims (Thousands of yen) Due after Due after Due after Due after As of November 30, 2014 Due within one to two two to three three to four four to five Due after one year years years years years five years Cash and cash equivalents 17,767,864 – – – – – Total 17,767,864 – – – – –

32 4. Redemption schedule for short-term debt, investment corporation bond and long-term debt (Thousands of yen) Due after Due after Due after Due after As of November 30, 2014 Due within one to two two to three three to four four to five Due after one year years years years years five years Short-term debt 2,500,000 – – – – – Investment corporation bond – – – – 3,000,000 2,100,000 Long-term debt 16,600,000 3,700,000 28,250,000 17,350,000 21,000,000 66,300,000 Total 19,100,000 3,700,000 28,250,000 17,350,000 24,000,000 68,400,000

(Thousands of yen) Due after Due after Due after Due after As of May 31, 2015 Due within one to two two to three three to four four to five Due after one year years years years years five years Short-term debt 9,500,000 – – – – – Investment corporation bond – – – – 3,000,000 2,100,000 Long-term debt 8,300,000 18,200,000 19,400,000 21,500,000 24,000,000 85,300,000 Total 17,800,000 18,200,000 19,400,000 21,500,000 27,000,000 87,400,000

Note 6 – Investment Properties Investment properties as of November 30, 2014 and May 31, 2015 consisted of the following: (Thousands of yen) As of November 30, 2014 As of May 31, 2015 Acquisition Accumulated Acquisition Accumulated cost depreciation Book value cost depreciation Book value Land 12,302,227 – 12,302,227 12,302,227 – 12,302,227 Buildings and structures 3,109,305 (1,545,059) 1,564,246 3,130,285 (1,632,652) 1,497,633 Tools, furniture and fixtures 18,538 (6,638) 11,900 18,958 (7,646) 11,312 Construction in progress 4,032 – 4,032 3,449 – 3,449 Land in trust accounts 289,916,770 – 289,916,770 314,767,115 – 314,767,115 Buildings and structures 90,038,856 (18,066,807) 71,972,049 91,803,763 (16,821,666) 74,982,097 in trust accounts Machinery and equipment 826,879 (425,370) 401,509 707,599 (367,021) 340,578 in trust accounts Tools, furniture and fixtures 116,863 (64,114) 52,749 150,965 (66,678) 84,287 in trust accounts Construction in progress 548,059 – 548,059 408,642 – 408,642 in trust accounts Other tangible fixed assets 5,909 (5,909) – 4,337 (4,337) – in trust accounts Total 396,887,438 (20,113,897) 376,773,541 423,297,340 (18,900,000) 404,397,340

VII. Notes to Financial Statements 33 Note 7 – Fair Value of Investment and Rental Properties The book value, net changes in the book value and the fair value of the investment were as follows: (Thousands of yen) As of / For the fiscal period As of / For the fiscal period ended ended November 30, 2014 May 31, 2015 Book value: (Note 1) Balance at beginning of period 355,783,760 378,935,081 Change during the period (Note 2) 23,151,321 27,764,026 Balance at end of period 378,935,081 406,699,107 Fair value (Note 3) 370,600,000 410,990,000 Notes: 1. The book value represents the acquisition cost less accumulated depreciation. 2. Significant changes For the fiscal period ended November 30, 2014, the major reasons of increase are acquisitions of “Azabu Green Terrace” (14,000,000 thousand yen) and “Kitahama Grand Building” (9,481,500 thousand yen). The major reason of decrease is depreciation (1,497,218 thousand yen). For the fiscal period ended May 31, 2015, the major reasons of increase are acquisitions of six assets (48,785,200 thousand yen). The major reason of decrease is disposition of five assets (21,325,541 thousand yen) and depreciation (1,553,853 thousand yen). 3. The fair values as of November 30, 2014 and May 31, 2015 were determined by the sum of appraisal values provided by external real estate appraisers.

Note 8 – Rental Revenues and Expenses Rental revenues and expenses for the fiscal periods ended November 30, 2014 and May 31, 2015 were as follows: (Thousands of yen) For the fiscal period ended For the fiscal period ended November 30, 2014 May 31, 2015 Revenues from property leasing: Rental revenues 9,693,133 10,112,468 Other revenues related to property leasing 70,578 34,235 Total revenues from property leasing 9,763,711 10,146,703 Rental expenses: Consignment expenses 769,361 791,273 Utilities expenses 1,072,401 1,024,278 Taxes and dues 792,627 811,788 Insurance expenses 14,425 14,355 Repair expenses 125,021 227,519 Depreciation 1,497,218 1,553,853 Other 53,621 63,580 Total rental expenses 4,324,674 4,486,646 Income from property leasing 5,439,037 5,660,057

Note 9 – Net Assets DOI issues non-par value units in accordance with the Investment Trust Act and all of the amounts issued are designated as stated capital. DOI maintains a minimum of 50 million yen of net assets as required by the Investment Trust Act.

34 Note 10 – Short-Term Debt, Long-Term Debt and Investment Corporation Bonds Short-term debt, Long-term debt and investment corporation bonds as of November 30, 2014 and May 31, 2015 consisted of the following: (Thousands of yen) As of November 30, 2014 As of May 31, 2015 Unsecured loans due 2015 to 2024, principally from banks and insurance companies with interest 155,700,000 186,200,000 rates mainly ranging from 0.3% to 1.1% 0.4% unsecured bond due 2019 3,000,000 3,000,000 1.0% unsecured bond due 2024 2,100,000 2,100,000 Total 160,800,000 191,300,000 Note: The interest rates presented are daily weighted average interest rates. As for long-term debts which were hedged by interest-rate swaps for the purpose of avoiding interest rate fluctuation risk, the swapped interest rates are used to calculate daily weighted average interest rates.

The annual maturities of short-term debt, long-term debt and investment corporation bonds as of May 31, 2015 were as follows: (Thousands of yen) Due after Due after Due after Due after Due within one to two two to three three to four four to five Due after one year years years years years five years Short-term debt, long-term debt 17,800,000 18,200,000 19,400,000 21,500,000 27,000,000 87,400,000 and investment corporation bonds

Note 11 – Leases As Lessor The future minimum rental revenues under existing non-cancelable operating leases as of November 30, 2014 and May 31, 2015 were as follows: (Thousands of yen) As of November 30, 2014 As of May 31, 2015 Due within one year 7,534,798 8,320,103 Due after one year 11,321,134 16,533,506 Total 18,855,932 24,853,609

Note 12 – Commitment-Type Term Loans DOI has entered into credit facilities in the form of commitment-type term loan agreements with five banks as of May 31, 2015 as follows: (Thousands of yen) As of November 30, 2014 As of May 31, 2015 Total amount of commitment-type term loans – 20,500,000 Borrowing execution balance – – Net unused balance – 20,500,000

Note 13 – Gain on Sale of Investment Properties Gain on sale of investment properties for the fiscal period ended May 31, 2015 was as follows: (Thousands of yen) Proceeds from sale of investment properties 21,846,254 Cost of selling investment properties (21,325,541) Other expenses related to sale (280,166) Gain on sale of investment properties 240,547

VII. Notes to Financial Statements 35 The sales prices for individual properties are not disclosed because consents from the counterparties have not been obtained. The net gain on sale of investment properties is presented after offsetting gain on sale of investment properties of 685,892 thousand yen with loss on sale of investment properties of 445,345 thousand yen.

No investment properties were sold during the fiscal period ended November 30, 2014.

Note 14 – Reduction of Investment Properties Purchased with Government Subsidies Government subsidies of 32,898 thousand yen were deducted from the acquisition cost of the buildings in trust as of November 30, 2014 and May 31, 2015.

Note 15 – Income Taxes DOI is subject to Japanese corporate income taxes on all of its taxable income. However, DOI may deduct the amount distributed to its unitholders from its taxable income when certain requirements, including a requirement to distribute in excess of 90% of distributable profit for the fiscal period, are met under the Special Taxation Measure Act of Japan. If DOI does not satisfy all of the requirements as specified in the Act, the entire taxable income of DOI will be subject to regular corporate income taxes in Japan.

DOI has made distribution in excess of 90% of its distributable profit for each fiscal period in order to be able to deduct such amount from taxable income.

The following table summarizes the significant difference between the statutory tax rate and DOI’s effective tax rate for financial statement purposes. (%) For the fiscal period ended For the fiscal period ended November 30, 2014 May 31, 2015 Statutory tax rate 34.16 34.15 Deductible cash distributions (34.15) (34.14) Others 0.02 0.01 Effective tax rate 0.03 0.02

The significant components of deferred tax assets and liabilities as of November 30, 2014 and May 31, 2015 were as follows: (Thousands of yen) As of November 30, 2014 As of May 31, 2015 Deferred tax assets: Accrued enterprise tax 19 13 Deferred losses on hedges 134,312 126,411 Total deferred tax assets 134,331 126,424 Deferred tax liabilities: Deferred gains on hedges 28,706 15,371 Total deferred tax liabilities 28,706 15,371 Net deferred tax assets 105,625 111,053

36 Correction of amount of deferred tax assets and deferred tax liabilities due to the change in tax rate of corporate tax, etc. In line with the promulgation on March 31, 2015 of the “Act for Partial Revision of the Income Tax Act, etc.” (Act No. 9 of 2015) and the “Act for Partial Revision of the Local Tax Act, etc.” (Act No. 2 of 2015), the corporate tax rates have been reduced effective from fiscal periods beginning on or after June 1, 2015. Accordingly, for temporary differences expected to be reversed in the fiscal periods beginning on or after June 1, 2015, the statutory tax rate used to calculate deferred tax assets and liabilities has been changed from 34.15% to 32.31% for the fiscal period ended May 31, 2015. The effect of this change is immaterial.

Note 16 – Per Unit Information Information about earnings per unit for the fiscal periods ended November 30, 2014 and May 31, 2015 and net assets per unit as of November 30, 2014 and May 31, 2015 were as follows: (Yen) For the fiscal period ended For the fiscal period ended November 30, 2014 May 31, 2015 Earnings per Unit: Net income per unit 8,414.41 9,141.88 Weighted average number of units outstanding (units) 432,713 441,000 (Yen) As of November 30, 2014 As of May 31, 2015 Net Assets per Unit 504,746 505,566

The computation of earnings per unit is based on the weighted average number of units outstanding during the period. The computation of net assets per unit is based on the number of units outstanding at each period end as stated on the balance sheets. The diluted net income per unit is not stated as there are no diluted investment units. There is no amount that is not available to ordinary unitholders.

Note 17 – Distribution Information DOI’s Articles of Incorporation stipulate that DOI is required to make cash distribution in excess of 90% of distributable profit as defined in the Special Taxation Measure Act of Japan for each fiscal period. Therefore, the total amount of dividends that DOI has determined to pay out is 3,640,896,000 yen for the fiscal period ended November 30, 2014 and 4,031,622,000 yen for the fiscal period ended May 31, 2015 that are a multiple of 441,000 — the number of units outstanding as of May 31, 2015 and November 30, 2014. Furthermore, DOI does not pay out dividends that exceed accounting profits as outlined in Article 32-2 of DOI’s Articles of Incorporation. (Yen) For the fiscal period ended For the fiscal period ended November 30, 2014 May 31, 2015 Unappropriated retained earnings 3,641,156,268 4,031,830,382 Cash distributions declared 3,640,896,000 4,031,622,000 Retained earnings brought forward 260,268 208,382

VII. Notes to Financial Statements 37 Cash distributions are declared by the board of directors after the end of each period. Such distributions are payable to unitholders of record at the end of each period. Information of cash distributions per unit and the board of directors meeting dates when the distributions were proposed and approved were as follows: (Yen) For the fiscal period ended For the fiscal period ended November 30, 2014 May 31, 2015 Cash distributions per unit 8,256 9,142 Board of directors meeting dates January 23, 2015 July 15, 2015

Note 18 – Related-Party Transactions Related-party transactions for the fiscal periods ended November 30, 2014 and May 31, 2015 were as follows: For the fiscal period ended November 30, 2014 Classification Parent company, interested party Name Daiwa Securities Group Inc. Location Chiyoda-ku, Tokyo Capital stock (billions of yen) 247.3 Principal business Holding company Ratio of voting rights 13.45% directly held in DOI 29.23%indirectly held in DOI Relation to the related party Provision of capital Payment of interest expense Redemption of investment Nature of transaction on investment corporation corporation bonds bonds (Notes 1 and 2) Amount of transaction (thousands of yen) 3,500,000 28,278 Account – Balance at the end of period (thousands of yen) – Notes: 1. Issuance conditions for the investment corporation bonds were decided by analyzing the spread of similar bonds, the difference of spread between senior bonds and subordinated bonds, and the past track record of similar bonds. 2. Terms of transactions with interested parties were determined based on the assets manager’s office regulation which was established to prevent conflict of interest. For the fiscal period ended May 31, 2015 No related-party transaction was entered into for the fiscal period ended May 31, 2015.

Note 19 – Segment Information For the fiscal period ended November 30, 2014 and May 31, 2015 Segment Information Segment information has been omitted as DOI has only one segment, which is property leasing business. Related Information Information about Products and Services Disclosure of this information has been omitted as operating revenues to external customers for a single product/service category account for more than 90% of the operating revenues on the statements of income and retained earnings. Information about Geographic Areas (1) Operating revenues Disclosure of this information has been omitted as domestic operating revenues account for more than 90% of total operating revenues. (2) Investment properties Disclosure of this information has been omitted as domestic investment properties account for more than 90% of the book value of the total investment properties. Information about Major Tenants Disclosure of this information has been omitted as there is no tenant that accounts for 10% or more of the operating revenues recorded in the statements of income and retained earnings.

38 Note 20 – Significant Subsequent Events (a) Issuance of New Investment Units At the meetings of the board of directors held on April 27, 2015 and May 20, 2015, DOI resolved on the issuances of new investment units as described below. The payments for the issues were completed on June 1, 2015 and June 24, 2015, respectively. (1) Issuance of new investment units through public offering (general issue) i) Number of investment units issued: 41,045 units (19,545 units for domestic offering and 21,500 units for overseas offering) ii) Paid-in amount: 563,914 yen per unit iii) Total paid-in amount: 23,145,850,130 yen iv) Payment date: June 1, 2015 To use for acquisition of River Gate and its related costs, and as a v) Use of proceeds: part of funds for repayment of borrowings for acquisition of Glass City Shibuya and Meguro Place Tower (2) Issuance of new investment units through third-party allotment i) Number of investment units issued: 1,955 units ii) Paid-in amount: 563,914 yen per unit iii) Total paid-in amount: 1,102,451,870 yen iv) Allottee and number of units allotted: 1,955 units allotted to Daiwa Securities Co. Ltd. v) Payment date: June 24, 2015 To use for acquisition of River Gate and its related costs, and as a vi) Use of proceeds: part of funds for repayment of borrowings for acquisition of Glass City Shibuya and Meguro Place Tower

(b) Acquisition of Assets DOI acquired a trust beneficial interest in real estate on June 2, 2015. Asset type Trust beneficial interest in real estate Property name River Gate Location 36-2 Nihonbashi Hakozaki-cho, Chuo-ku, Tokyo 28,000,000 thousand yen (excluding acquisition costs and Acquisition price consumption tax, etc.) Agreement date April 27, 2015 Acquisition date June 2, 2015 Seller Thames Special Purpose Company

VII. Notes to Financial Statements 39 VIII. Independent Auditors’ Report

40 VIII. Independent Auditors’ Report IX. Investor Information

Organization of Asset Manager (as of June 1, 2015)

■ Description ■ Directors and Auditors

Company Name Daiwa Real Estate Asset Management Co., Ltd. President and Representative Director Akira Yamanouchi

Address 6-2-1 Ginza, Chuo-ku, Tokyo Vice President and Representative Yuji Shinotsuka Established October 21, 2004 Director Paid-in Capital 200 million yen Vice President and Representative Yoshiki Nishigaki Director Representative Director Akira Yamanouch Director Naoyuki Owa 9 Board of Directors Executive directors: 4 / Executive auditors: 1 Director (non-executive) Toshihiro Matsui Non-executive directors: 2 / Non-executive auditors: 2 Director (non-executive) Mikita Komatsu No. of Employees 65 (excluding dispatched employees) Auditor Tamaki Shibayama Registered Financial Investments Registration No. 355 (Financial Instruments), Director-General, Auditor (non-executive) Masaru Shirataki Firm Kanto Local Finance Bureau (Kinsho) Auditor (non-executive) Shinji Kiso Building Lots and Buildings License No. (3) 83920, Governor of Tokyo Transaction Business License Discretionary Agent for Real License No. 34, Minister of Land, Infrastructure, Transport and Estate Transaction Approval Tourism

Member of The Investment Trusts Association, Japan Association Membership Member of Japan Investment Advisers Association Member of Type II Financial Instruments Firms Association

■ Organizational Chart Shareholders’ Meeting Corporate Auditors Board of Directors Compliance Committee

Investment Committee（*） Compliance Ofﬁcer *Set up separately for each President and investment corporation Representative Director Internal Control Ofﬁce

Acquisition Origination Asset Management Private Fund Customer Relations Administration Corporate Planning Department Department Department Management Department Department Finance Department Department Department Ofﬁce Investment Ofﬁce Management Advisory Team Team Team Finance Team Residential Residential Investment Team Management Team Operational Team Accounting Team Healthcare Healthcare Management Team Investment Team Management Team Investment Planning Team Construction Management Team

Structure

Investment Corporation General Administrator Asset Manager ① ② Asset Custodian General Administrator related to the operation of the Sumitomo Mitsui Trust Bank, Limited administrative instruments General Meeting of Unitholders Manager of Unitholder Daiwa Real Estate Asset Registry, etc. Ofﬁcers Management Co., Ltd ③ Special Account Management Executive Director: Nobuaki Omura Institution Supervisory Director: Takayuki Hiraishi Sumitomo Mitsui Trust Bank, Limited ④ Supervisory Director: Hiroshi Sakuma ⑤ General Administrator (Investment Corporation Bonds) Supporting Company Accounting Auditor Sumitomo Mitsui Banking Corporation Daiwa Securities Group Inc. KPMG AZSA LLC Resona Bank, Ltd.

① Asset management contract / General administration affairs contract related to operation ④ Sponsor support agreement of administrative instruments ⑤ Fiscal agency agreement ② General administrative affairs contract / Asset custodian contract ③ Unitholder register, etc. management contract / Special account management contract (Note) The specified affiliated juridical person (meaning a specified affiliated juridical person as provided in Article 12, Paragraph 3 of the Cabinet Office Ordinance on Disclosure of Information, etc. on Specified Securities (Ordinance of the Ministry of Finance No. 22 of 1993; including amendments thereto)) of DOI is Daiwa Securities Group Inc. Daiwa Securities Group Inc. is the Asset Management Company’s parent company (meaning a parent company as stipulated in Article 8, Paragraph 3 of the Ordinance on Terminology, Forms and Preparation Methods of Financial Statements, etc. (Ordinance of the Ministry of Finance No. 59 of 1963; including amendments thereto))

IX. Investor Information 41 History of Investment Unit Price

(yen) 700,000 14,000 (units)

Investment unit price (left axis) Trading volume (right axis) 600,000 12,000

500,000 10,000

400,000 8,000

300,000 6,000

200,000 4,000

100,000 2,000

0 0 2013 2014 2015 June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May

Overview of Investment Units and Unitholders (as of May 31, 2015)

■ No. of investment units by investor type ■ No. of unitholders by investor type Individuals/others Financial institutions Foreigners 36,593 units (8.3%) 9,072 19th 23,982 units (5.4%) 187,794 units (42.6%) Individuals/others (95.5%) Fiscal Period 51 Financial institutions Total: 441,000 units (0.5%) Other domestic 165 Other domestic corporations 191,658 units (43.5%) Securities firms 973 units (0.2%) corporations (1.7%) 198 Foreigners (2.1%) Individuals/others Financial institutions Foreigners 39,517 units (9.0%) 18 18th 24,046 units (5.5%) 184,044 units (41.7%) Securities firms (0.2%) Fiscal Period Total: 441,000 units Total 9,504 Other domestic corporations 191,577 units (43.4%) Securities firms 1,816 units (0.4%)

Top Ten Unitholders (as of May 31, 2015) IR Calendar

July 15, 2015 : Announcement of financial results for Number of 19th Fiscal Period Percentage Name of Investor Units Owned Share August 10, 2015: Sending of Japanese version Business (units) Report for 19th Fiscal Period (Statement of Financial Performance) 1. Daiwa Investment Management Inc. 128,905 29.2% August 11, 2015: Start paying distributions for 19th Fiscal Period 2. Japan Trustee Services Bank, Ltd. (Trust Account) 78,079 17.7% 3. Daiwa Securities Group Inc. 59,321 13.5% May 4. The Master Trust Bank of Japan, Ltd. (Trust Account) 44,349 10.1% Feb. End of Trust & Custody Services Bank, Ltd. ﬁscal period 5. 44,268 10.0% (Securities Investment Trust Account) Jan. July The Nomura Trust and Banking Co., Ltd. 6. 12,987 2.9% End of (Investment Trust Account) ﬁscal period Aug. Nov. 7. Nomura Bank (Luxembourg) S.A. 3,715 0.8% January 2016 : Announcement of financial results for 8. State Street Bank West Client-Treaty 505234 1,552 0.4% 20th Fiscal Period February 2016: Sending of Japanese version Business 9. BNY for GCM Client Accounts (E) ISG 1,424 0.3% Report for 20th Fiscal Period (Statement of Financial Performance) 10. UBS AG London Asia Equities 1,351 0.3% February 2016: Start paying distributions for 20th Fiscal Period (Note) The percentage share figures are rounded to the first decimal place.

42 Investor Memo

End of fiscal period May 31 and November 30 of each year

General Meeting of Unitholders Held at least once every two years

Date for finalizing Unitholders with voting rights for the General Meeting of Unitholders Date publicly announced beforehand

Reference date for finalizing payment of May 31 and November 30 of each year distributions (distributions are paid within three months of this reference date)

Listed financial instruments exchange Tokyo Stock Exchange (securities code: 8976)

Newspaper in which notice is posted Nikkei Inc.

Manager of Unitholder Registry, etc. Sumitomo Mitsui Trust Bank, Limited, 1-4-1 Marunouchi, Chiyoda-ku, Tokyo 100-8233

Transfer Agency Department of Sumitomo Mitsui Trust Bank, Limited, 2-8-4 Izumi, Suginamiku, Office handling administrative affairs Tokyo 168-0063 Phone 0120-782-031 (toll-free in Japan)

Service counter Head Office and All branches of the Sumitomo Mitsui Trust Bank nationwide

Provision of Information via Website

Daiwa Office Investment Corporation conducts information distribution via its website as an important tool for IR activities. DOI also provides an e-mail delivery service, “IR mail Delivery Service,” which informs the subscribers of updates in website content such as press release announcements via e-mail free of charge. The website will be continually enhanced and enriched so that the current situation and future strategies of DOI are clearly communicated.

Daiwa Office Investment Corporation http://www.daiwa-office.co.jp/en/

Important information is distributed via e-mail. Please access and follow the simple steps if you wish to receive our IR mail Delivery Service.

IX. Investor Information 43 Fiscal Period Business Report th (Statement of Financial Performance) 19 December 1, 2014 – May 31, 2015

6-2-1 Ginza, Chuo Ward, Tokyo http://www.daiwa-of_ce.co.jp/en/