Fiscal Period (Fiscal Period Ended May 2018) Securities Code: 8976 Contents

As of July 19, 2018

Daiwa Office Investment Corporation

Earnings Announcement for the 25th Fiscal Period (Fiscal Period ended May 2018) Securities Code: 8976 Contents

Overview of Daiwa Office Investment Corporation Properties Subject to Leasing Improvement in the Fiscal Period ending November 2018 (26th FP) 23 Topics of the Fiscal Period ended May 2018 (25th FP) 3 Purpose of Large-scale Repair Work and Cases of Construction Change in Major Portfolio Indices 4 Work in the Fiscal Period ended May 2018 24 Use of 30 Billion Yen of Surplus Funds 5 Efforts on ESG 26 Changes in Investment Unit Price for the Fiscal Period ended May 2018 onward 6 Section 3 Section 1 External Growth Fiscal Period ended May 2018 (25th Fiscal Period) Acquisition/Sale Policy and Status of Deliberation for Performance Highlights and Forecasts Property Acquisitions 29 Highlights of the Fiscal Period ended May 2018 (25th FP) 9 Actual Results of Asset Replacement in the Fiscal Period Highlights of Forecasts for the Fiscal Periods ending November ended May 2018 30 2018 and May 2019 (26th and 27th FP) 10 Newly Acquired Properties in the Fiscal Period Changes in Dividends 11 ending November 2018 31 Changes in Rents and Common Area Fees 12 Changes in Asset Size and Trading Performance 33 Section 2 Section 4 Financial Strategy Internal Growth Status of Interest-bearing Liabilities 35 Leasing Market of Tokyo Office Buildings 15 Unitholders as of the End of the May 2018 (25th) Fiscal Period 38 Analyses of Leasing Income 16 Change in Asset Management Fee System 39 Portfolio Map: Increase and Decrease in Unit Contract Rent Future Initiatives 40 Compared with Previous Fiscal Period 20 Internal Growth Strategies 21 Occupancy Status of Properties Subject to Leasing Improvement Appendix in the Fiscal Period ended May 2018 (25th FP) 22

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

• Conducted large-scale asset replacement worth 117.4 billion yen in total for the fiscal periods ended May 2018 and ending November 2018 Asset replacement and • Allocated 23.32 billion yen out of approximately 30 billion yen secured through effective use of 30 billion asset replacement to the three scenarios (contribution to dividends is expected to yen of surplus funds increase by 383 yen) • Various major indices of the portfolio improved with the above measures

• Occupancy rate as of the end of the fiscal period ended May 2018 was 99.0%, the highest level ever (forecasted occupancy rate as of January 2018: 98.0%) Steady internal growth • The growth rate of dividend resource remained at a high level with the renewal of contracts and occupancy by new tenants

• Strategically implement large-scale repair work by also considering additional Value enhancement through construction work in the case increase in unit rent and reduction of expenses can large-scale repair work be targeted through value enhancement, in addition to appropriate functional maintenance and recovery of properties.

 Various major indices increased in the portfolio for one and a half years from the fiscal period ended November 2017 through asset replacement, internal growth and effective use of 30 billion yen of surplus funds

(Note 1) The sale of Shinjuku Maynds Tower in the 25th FP is a partial sale. Therefore, the remaining owned portion is counted as 1 property in the number of properties owned as of the end of the 27th FP. The number of properties owned as of the end of the 27th FP reflects only properties for which contracts have been concluded and disclosed. (Note 2) NOI yield is calculated using the following formula: Numerator: Annualized NOI does not include costs related to the Investment Corporation. Annualized actual NOI is used for the end of the 24th FP, annualized forecasted NOI for the 27th FP is used for NOI of assets acquired in the 25th FP and 26th FP, annualized actual NOI for the 24th FP is used for NOI of assets sold in the 25th FP, and annualized forecasted NOI for the 27th FP is used for the end of the 27th FP. Denominator: Period-end book value is used for the book value for the end of the 24th FP and the book value for the end of the 27th FP is calculated by adding assets acquired (scheduled to be acquired) in the 26th FP to the book value for the end of the 25th FP. (Note 3) The ratio of investment in Shinjuku Maynds Tower is the ratio of Shinjuku Maynds Tower’s acquisition price to the total acquisition price. (Note 4) NAV per unit= (Unitholders’ capital +Total appraisal value at the end of fiscal period − Total property book value at the end of fiscal period) / Number of investment units issued and outstanding. NAV per unit as of the end of the 27th FP is calculated based on NAV per unit as of the end of the 25th FP (Note 5) LTV as of the end of the 27th FP is calculated under the assumption total interest bearing liabilities for the 28th FP is 187,950 million yen based on the total assets as of the end of the 25th FP.

 30 billion yen of surplus funds incurred with the asset replacement in the 25th FP  The amount of impact on dividend per unit was 383 yen in total as a result of utilizing a total of approximately 23.32 billion yen

Calculation: Use of funds Amount of impact on dividend per unit Fiscal period ending May 2019 (27th FP)

＜Prime Kanda Building: Kanda-Sudacho, Chiyoda-ku (1-minute walk from Iwamotocho Station on the Toei Shinjuku Line)＞ Acquisition price (Note 1): 1.8 billion yen, NOI yield: 3.8% (as of acquisition (Note 2)) → 4.2% (mid-term assumption (Note 3)) 1. Allot to Structure/Floor: S/RC / B1 / 10F acquisition of +146 yen new properties ＜Kita-Shinagawa Gotenyama Building: Kita-Shinagawa, Shinagawa-ku (1-minute walk from Kita-Shinagawa Station on the Keikyu Line)＞ Acquisition price (Note 1): 2.5 billion yen, NOI yield: 4.1% (as of acquisition (Note 4)) → 4.1% (mid-term assumption (Note 5)) Structure/Floor: SRC/S / 8F

＜Repayment/early repayment of a total of 15.35 billion yen to 8 lenders＞ 2. Allot to • Repayment of a total of 1.85 billion yen to three banks (February 28, 2018) repayment of • Early repayment of 2 billion yen to a bank (March 30, 2018) +103 yen loans • Early repayment of a total of 11.5 billion yen to five banks (April 27, 2018)

• Acquisition period: March1, 2018 to May 18, 2018 3. Allot to share • Number of acquired units: 5,992 units buybacks +134 yen • Total acquisition amount: 3,675,523,000 yen

Total Approx. 23.32 billion yen +383 yen

(Note 1) Excluding expenses related to the acquisition and consumption tax. (Note 2) Figures calculated by dividing the expected annual balance of payments under the assumed occupancy rate (100.0%) by the acquisition price, based on the lease agreement upon acquisition, etc. while taking into account the accrual of tax and public due, etc. are indicated. The figures do not represent forecast figures for the current period or the next period onward. (Note 3) Figures calculated by dividing the estimated figures for normal operation period (with assumed occupancy rate of 96.0%) after acquisition, obtained by deducting rent business-related expenses from rent revenue assumed under rents over a medium term, by the acquisition price are indicated. The figures do not represent forecast figures for the current period or the next period onward. (Note 4) Figures calculated by dividing the expected annual balance of payments under the assumed occupancy rate (96.0%) by the acquisition price, based on the lease agreement upon scheduled acquisition, etc. while taking into account the accrual of tax and public due, etc. are indicated. The figures do not represent forecast figures for the current period or the next period onward. (Note 5) Figures calculated by dividing the estimated figures for normal operation period (with assumed occupancy rate of 96.0%) after acquisition, obtained by deducting rent business-related expenses from rent revenue assumed under rents over a medium term, by the acquisition price are indicated. The figures do not represent forecast figures for the current period or the next period onward.

 The investment unit price of Daiwa Office Investment Corporation outperformed the Tokyo Stock Exchange REIT Index by conducting measures such as asset replacement and share buybacks

Comparison and Change in Investment Unit Price of Daiwa Office Investment Corporation and Tokyo Stock Exchange REIT Index (Note) (yen)

January 19, 2018 February 28, 2018 Held financial results briefing for Announced determination of share the fiscal period ended November 2017 buybacks

May 23, 2018 Announced the acquisition of Prime Kanda Building

June 18, 2018 Announced the acquisition of Kita-Shinagawa Gotenyama Building

December 19, 2017 Announced asset replacement

2017 2018

(Note) The closing price of the Tokyo Stock Exchange REIT Index as of December 1, 2017 is indexed by assuming that it is the same as the closing price of the investment unit price of Daiwa Office Investment Corporation on the same day.

Results of the 25th Fiscal Period Factor Item

 Revenue (rents and common area fees) from properties acquired +756 million yen during period (2 properties)  Gain on sale of properties during period (net 2 properties) +481 million yen Increase  Revenue (rents and common area fees) from 53 existing properties +337 million yen (Note 4)  Dividend income +48 million yen  Revenue (rents and common area fees) from properties sold during -737 million yen Decrease period (2 properties)  Utilities revenue -178 million yen

 Repair cost +237 million yen Increase  Tax and public due (general and administrative expenses) +57 million yen

Decrease  Utility Charges -97 million yen

Increase  Insurance revenue +137 million yen

 Insurance-related expenses +125 million yen Increase  Expenses related to early repayment +82 million yen

Dividends per unit is calculated by dividing the amount obtained by subtracting provision for reserve for reduction entry (403 million yen) from unappropriated retained earnings by the total number of investment units issued and outstanding.* (Note 1) NAV per unit = (Unitholders’ capital +Total appraisal value at the end of fiscal period − Total property book value at the end of fiscal period) / Number of investment units issued and outstanding*. (Note 2) Period average occupancy rate is calculated based on occupancies at the end of months during each fiscal period. ⃰ In the current period, the number of investment units issued and outstanding is as follows after the acquisition and (Note 3) NOI Yield (annualized) is calculated based on book value. NOI annualizes properties owned at the end of the period. retirement of treasury investment units.

497,869 units as of the end of the 24th FP⇒ 491,877 units as of the end of the 25th FP

(Reference) Comparison of Forecasts with Results of 25th Fiscal Period

 Revenue (rents and common area fees) from 55 existing +91 million yen (Note 5) Increase properties  Other operating revenue +17 million yen

Decrease  Utilities revenue -52 million yen

(Note 4) 53 existing properties are the 54 properties as of the end of the 24th FP less the 2 properties acquired and the 2 properties sold during the 25th FP. The 3/7 ratio of Shinjuku Maynds Tower is incorporated. (Note 5) 55 existing properties are the 55 properties held as of the end of the 25th FP (ended May 2018).

The 26th Fiscal Period (Forecast) Factor Item

26th FP Forecast Difference from  Revenue (rents and common area fees) from 53 existing properties +327 million yen (Note 3) Ending Nov. 2018 25th FP  Full contribution of revenue (rents and common area fees) from 2 +199 million yen Increase properties acquired in the previous period 13,029 million yen - 410 million yen Operating Revenue  Revenue (rents and common area fees) from properties acquired +58 million yen during period (2 properties) Operating Expense 6,570 million yen - 191 million yen  Utilities revenue +109 million yen

Operation Income 6,459 million yen - 219 million yen  Revenue (rents and common area fees) from properties sold in the -524 million yen previous period (2 properties) Non-operating revenue ― - 139 million yen Decrease  Gain on sale of properties in the previous period (net 2 properties) -481 million yen  Dividend income for the previous period -48 million yen Non-Operating Expense 628 million yen - 300 million yen

Net Income 5,828 million yen - 58 million yen  Increase Utilities changes +63 million yen

Dividend per Unit 11,850 yen + 700 yen  Tax and public due (Rent business-related expenses) -62 million yen  Tax and public due (general and administrative expenses) -49 million yen 98.0% -0.8% Period End Occupancy Rate Decrease  Outsourcing expense -75 million yen  Depreciation -63 million yen (Note 2) 98.7% +0.4% Period Average Occupancy Rate  Repair cost -25 million yen NOI Yield (annualized) (Note 3) 4.3% +0.2% Decrease  Insurance revenue -137 million yen

The 27th Fiscal Period (Forecast)  Insurance-related expenses -125 million yen Decrease  Expenses related to early repayment -82 million yen 27th FP Forecast Difference from  Interest expenses -66 million yen Ending May 2019 26th FP

Operating Revenue 12,964 million yen - 65 million yen  Revenue (rents and common area fees) from 55 existing properties +13 million yen Increase  Full contribution of revenue (rents and common area fees) from 2 +26 million yen Operating Expense 6,432 million yen - 137 million yen properties acquired in the previous period

Operation Income 6,531 million yen + 71 million yen Decrease  Utilities revenue -112 million yen

Non-operating revenue ― ― Increase  Depreciation +37 million yen

Non-Operating Expense 626 million yen - 2 million yen  Utilities changes -78 million yen Decrease  Repair cost -75 million yen Net Income 5,902 million yen + 74 million yen  Tax and public due (Rent business-related expenses) -14 million yen Dividend per Unit 12,000 yen + 150 yen

Period End Occupancy Rate 97.6% -0.4% (Note 1) Expected period average occupancy rate is calculated based on occupancies at the end of months during each fiscal period. Period Average Occupancy Rate (Note 2) 96.7% -2.0% (Note 2) Expected NOI Yield (annualized) is calculated based on the book value for the 25th FP. NOI Yield (annualized) (Note 3) 4.4% +0.2% (Note 3) 53 existing properties are the 54 properties as of the end of the 24th FP less the 2 properties acquired and the 2 properties sold during the 25th FP. The 3/7 ratio of Shinjuku Maynds Tower is incorporated.

Changes in Dividends per Unit (forecast/actual)

(yen) (yen)

6,009 3,903 3,176 3,280 4,100 4,850 5,500 6,250 7,200 7,540 7,820 8,700 9,350 9,850 10,550 10,700 10,770 11,000 11,850

7,400 4,154 2,843 3,180 3,600 4,850 5,350 5,500 6,550 7,300 7,570 8,328 9,000 9,750 9,900 10,560 10,710 10,800 11,400 12,000

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

(Note) External growth (contribution by properties acquired/disposed excluding during-the-period contributions in the previous FP) indicates the full contribution to the revenue of current fiscal period by the change in rents and common area fees of properties acquired or sold in the previous fiscal period. External growth (During-the-period contribution by properties acquired/sold) indicates the full contribution to the revenue of current fiscal period by the change in rents and common area fees of properties acquired or sold in the current fiscal period. Internal growth (increase/decrease of rents of existing properties) indicates the period-on-period change in revenue (rents and common area fees) of existing properties.

Leasing Market of Tokyo Office Buildings Trend of Office Rent and Vacancy Rate of 5 Central Wards of Tokyo (Yen/Tsubo)

Rent Rent and vacancy rate of large-scale office buildings (Note 1) (Yen/Tsubo) of 5 Central Wards of Tokyo

35,000 Feb. 2008 (Rent)

19,877 yen 33,000

31,000 2.55%

Jun. 2018 Rental Market Clock 29,000 (conceptual chart) Dec. 2017 Jun. 2017 Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. 27,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Jun. 2016 Jun. 2010 (Data): Miki Shoji Jan. 2004 25,000 Office Building Market Medium-term Forecast Dec. 2011 Jul. 2012 23,000 (Tsubo) Predicted figures 10.0% 0% 1% 2% 3% 4% 5% 6% 7% 8% Vacancy rate 500,000 (Note) Rent Average rent and vacancy rate of entire office buildings (Yen/Tsubo) 8.0% (Note 2) 400,000 of 5 Central Wards of Tokyo 20,000 Sep. 2008 6.0% 300,000 19,000

4.0% 18,000 Sep. 2007 200,000 Dec. 2017 17,000 Jun. 2017 Jan. 2004 2.0% 16,000 100,000 Jun. 2018 15,000 Jun. 2016 Jul. 2012 0.0% 14,000 000 New supply (Grade A, etc.) New supply (Other) New supply (Entire properties) Vacancy rate Floor area of new demands Vacancy rate 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% -100,000 -2.0% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 (Data): Sanko Estate, compiled by Daiwa Real Estate Asset Management 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 (Tallying method was changed in January 2017 to add tenant solicitation terms data acquired from building owners to the conventional tallies. Since rent was changed to “inclusive of common service fees” from “exclusive of common service (Data): CBRE “Office market medium term forecast 2018-2022 fees” along with this, figures for all periods presented have been modified retrospectively.) (Note) Predicted figures as of July 2018 (Note 1) Large-scale office buildings: A floor area of 200 tsubos or more. (Note 2) Entire office buildings: Ranging from large-scale buildings to small-scale buildings (less than 20 tsubos).

Period-end Occupancy Rate Transition of New Leases and Cancellations and Its Reasons (Note 2)

(%) (Cases)

8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP

Rate of New Leases and Cancellations (Note 1)

8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP

Cost Space Consolidation Space Better 25th Period Other Total Reduction Expansion Space Reduction Location

New Leases 1 23 1 0 1 0 26

Cancellations 3 3 2 8 1 2 19

8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th Previous number of leases 21 FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP

(Note 1) Transition of rate of new leases and cancellations areas to the total leasable area. (Note 2) Excluding new leases and cancellations by residence and warehouse tenants.

 Basic strength (profitability accompanied by realization of internal growth) is steadily improving due to contract renewals and occupancy of new tenants  Increase in rent revenue due to improved basic strength leads almost directly to an increase in dividend resource

Monthly Rent Increase Due to Contract Renewal/Occupancy of New Tenants (Thousand Yen/Month) 30,000 Contract Renewal Occupancy of new tenants 25,528 25,000 21,804 21,309 6,680 20,000 7,432 17,004 14,376 15,000 14,246 12,521 766 12,747 5,855 9,020 6,438 3,988 10,000 18,847 3,157 13,479 14,371 5,000 11,149 7,938 8,759 8,787 5,862 0 19th FP 20th FP 21st FP 22nd FP 23rd FP 24th FP 25th FP SimpleSimple average average for thefor thefiscal 19th period FP endedonward May 2015 onward Increase in Dividend Resource Due to Improved Basic Strength

Simple average for 19th FP 20th FP 21st FP 22nd FP 23rd FP 24th FP 25th FP the fiscal period ended May 2015 onward

Percentage of Total Rent Revenue 6 months 0.7% 1.0% 0.8% 0.7% 1.4% 1.2% 1.2% 1.0% (rents and common area fees) (Note 1) Annualized 1.3% 2.0% 1.7% 1.5% 2.8% 2.4% 2.3% 2.0%

Growth rate of 6 months 1.5% 2.1% 1.8% 1.5% 2.9% 2.4% 2.3% 2.1% dividend resource (Note 2) Annualized 3.0% 4.3% 3.6% 2.9% 5.8% 4.9% 4.7% 4.2%

(Note 1) Obtained by dividing the amount of rent increase (increased amount of monthly rent x 6 months) due to the improved basic strength in each fiscal period by rent revenue (rents and common area fees) in the previous fiscal period to the respective fiscal period. (Note 2) Obtained by dividing the amount of rent increase (increased amount of monthly rent x 6 months) due to the improved basic strength in each fiscal period by net income in the previous fiscal period to the respective fiscal period.

Realized upward rent revisions for Contract Renewal Area 9 consecutive periods

The 25th Fiscal Period Contract Renewal Tenants Changes in Rent Increase/Decrease Rate of Contract Renewal Tenants (sections)

*The ratio of areas for which contract was renewed in the 25th FP (through May 2018) to the total leasable area (332,594.35 m²) as of end of Nov. 2017. (Properties transferred in the 25th FP are included in non contract renewal area)

(Note) The above indicates rent increase/decrease rate to pre-renewal rents for lease contracts which reached renewed agreements during each FP. Rent increase/decrease rate is calculated based on net amount for increased/decreased rents. *1 4.6% Status of Upward Rent Revisions

(Breakdown of upward revision magnitude for monthly rents in the 25th FP) *1 Of the increase in the 17th FP, 14.1% was due to some tenants’ switching from sublease to master lease agreements and 7.9% was thanks to negotiations with tenants. *2 The decrease in the 25th FP was due to some tenants’ switching from sublease to master lease agreements. Properties with rent increase 15% or more  Shinjuku Maynds Tower 2% or less 12% 19%  Daiwa Nihonbashi Hongokucho Contract Renewal Periods (based on leased area) 10% or more but  Daiwa Shibuya Miyamasuzaka less than 15%  14% Integral Tower Forecasts Increase rate  LAQUAS Higashi Shinjuku of monthly rent  Glass City Shibuya 6.6 %  Daiwa Meguro Square (Previous FP: 7.8%)  Daiwa Higashi-Nihonbashi 2% or more but less than 5%  CONCURRED Yokohama, 26% 5% or more but etc. less than 10% 29%

Increased amount of monthly rent 12,519 thousand yen/month (Note) Percentage figures are based on total monthly rent. (Note) The ratio of areas scheduled for contract renewal in each period to the total leased area (336,760.45㎡) as of May 31, 2018.

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

82.30 82.8303.52 81.4181.41 (Total Monthly Rent, Thousand Yen) 80.16 83,772 83,962 96,294 19,574 91,394 19,219 19,574

69,262 19,43719,43719,295 75,943

55,054 14.9% 59,042 9.6% 8.9% 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP FP End End 7.2% (Note 1) Average contract rent is the average of monthly contract rent from tenants at the end of each fiscal period. 29,203 29,970 (Note 2) Unit rent index is the earning rates of unit rent of individual properties indexed with the figure at the end of the 7th FP as 100.

2.6% Increase/Decrease in Monthly Contract Rent* Compared with the End of the Previous Fiscal Period (Million Yen) Increase by New Acquisition

Increase by (Note) Percentage figures are based on total monthly rent. New Leases

Properties with rent increase due to occupancy of Increase by new tenants during 25th fiscal period Rent Revisions

 Daiwa Ginza  Daiwa Akasaka  Shinjuku Maynds Tower  Daiwa Kitahama Decrease by  Daiwa Shinagawa North  Daiwa Ebisu 4-chome Decrease by Tenants’ Cancellations Decrease by Rent Revisions  E SPACE TOWER  Daiwa Meguro Square, Sales of etc. Properties Increased amount of monthly rent End of 24th FP End of 25th FP Monthly Contract Rent Monthly Contract Rent 12,521 thousand yen/month (Note) Monthly Contact Rent is a total of final rent from contracting tenants at the end of the fiscal period. Monthly contract rent for Shinjuku Maynds Tower was adjusted to 6/7 in the 24th FP and to 3/7 in 25th FP and monthly contract rent for CONCURRED Yokohama was adjusted to 75/100 in the 25th FP.

5 Central Wards of Tokyo Comparison with Previous Fiscal Period Greater Tokyo Increase and Decrease of Unit Contract Rent

Unit rent increase: 26 The number in ● indicates increase for the consecutive period Daiwa Higashi-Ikebukuro (Ex: ●2 indicates increase for the second consecutive period) Integral Tower 4 Toshima Daiwa Ogikubo Ward Unit rent maintained: 26 Daiwa Meguro Square 3 Unit rent decrease: 1 2 Daiwa Daiwa Osaki 3-chome Shinagawa North

LAQUAS Higashi Shinjuku Shinjuku West Building Shinjuku Ward Daiwa Misakicho Daiwa Sarugakucho Daiwa Nishi-Shinjuku Daiwa Jinbocho 3-chome 4 Daiwa Jimbocho shinyon curumu DaiwaChiyoda Kanda Ward Mikuracho Daiwa Higashi-Nihonbashi Daiwa Kamiooka Shinjuku Maynds Tower 5 Daiwa Nihonbashi Daiwa Kodenmacho 2 Daiwa Kojimachi Hongokucho Daiwa Nihonbashi Horidomecho 4-chome Daiwa Kayabacho Build. Shibuya Ward Chuo WardKirin Nihonbashi Building Koto Ward Daiwa Akasaka Daiwa Kyobashi Daiwa River Gate Daiwa Jingumae Daiwa Hatchobori ekimae 5 4 Daiwa Hatchobori ekimae West Daiwa Ginza Annex 3 Daiwa Aoyama Daiwa Ginza 10 Daiwa Tsukijiekimae Daiwa Minami Aoyama Daiwa Daiwa Tsukiji Daiwa SHIBUYA EDGE Shibuya Miyamasuzaka Daiwa 6 6 Daiwa Nishi-Shimbashi 3 Shimbashi 510 Daiwa Tsukishima E SPACE TOWER 8 Daiwa Onarimon Shinsen Place Glass City Shibuya 2 Daiwa Azabudai Daiwa A Hamamatsucho Square Daikanyama Building Daiwa Shibadaimon

Daiwa Ebisu 4-chome Minato Ward Daiwa Shibaura

Tokyo Daiwa Azabu Terrace Daiwa Kitahama 2

Shinagawa Regional Cities Ward As of May 31, 2018 (Note) Properties acquired or sold in the 25th FP are excluded from the target.

Continuous Internal Growth and Office Management Team (7 members) Maximization of Asset Value through “Bonji-Tettei” Aims at maximizing asset value by means of specialist groups headed by personnel assigned to each property in the Investment Corporation’s portfolio.

Hiroshi Udagawa Takafumi Ushiku Kotaro Ishii Jun Arai  Accurate understanding of the leasing market Asset management work history: Asset management work history: Asset management work history: Asset management work history: Grasp of  Grasping of needs and trends of occupying 11 years 10 months 13 years 8 months 12 years 1 month 12 years 1 month present tenants through regular visits situations  In-depth understanding of property features

 Information gathering from brokers  Implementing tenant satisfaction surveys Chie Kamimura Yuuki Kobatake Jun Iwasaki Activities for Asset management work history: Asset management work history: Asset management work history: and proposing improvement measures 11 years 11 months 5 years 7 month 1 year 7 month internal growth  Periodical property examination Construction Management Team (5 members)  Maintenance of a stable occupancy rate by promptly filling vacancies Engineering: Formulation and implementation of construction planning of the assets.  Realization of stable management through Realization of solid relationship with tenants internal growth  Securement of revenue based on well- planned management

Koji Ozeki Naoki Murayama Kazuyoshi Ono Takahiro Hirabayashi Junpei Takaya Asset management work history: Asset management work history: Asset management work history: Asset management work history: Asset management work history: 12 years 0 months 2 years 11 months 11 years 6 months 3 years 0 months 5 years 0 months

(Note) “Asset management work history” is the number of years engaged in the relevant work (as of end of May 2018) and does not indicate the number of years employed at the asset management company.

Aims to maximize asset value Investment Planning Team (3 members)

Middle office work: Budget and performance management for the portfolios

Daiwa Kyobashi Daiwa Jinbocho 3-chome (Acquisition Price: 3,460 million yen) (Acquisition Price: 3,550 million yen)

 Located a 3-minute walk from  Located a 2-minute walk from Jimbocho Hatchobori Station on the JR Keiyo Line Station on the Tokyo Metro Hanzomon and Tokyo Metro Hibiya Line as well as Line and the Tokyo Municipal Subway a 6-minute walk from Kyobashi Station Shinjuku Line and Mita Line as well as a on the Tokyo Metro Ginza Line. 3-minute walk from Kudanshita Station on  Visibility is excellent as the property is the Tokyo Metro Hanzomon Line and located at the intersection of Kajibashi Tokyo Municipal Subway Shinjuku Line. Dori street and Heisei Dori street.  The property is located along Yasukuni  A large-scale renovation was Dori street and has a stylish exterior implemented in 2005. covered with whole surface glass sash which makes it highly visible.

Location Hatchobori, Chuo-ku, Tokyo Location Kanda Jinbo-cho, Chiyoda-ku, Tokyo Site Area 596.19 m² Site Area 500.05 m² Structure SRC Structure S Floor B1/8F Floor 9F Use Office Use Store/office Total Floor Area 4,069.15 m² Total Floor Area 3,496.44 m² Construction Date October 1974 Construction Date February 2010

Occupancy rate (%) 100.0 Occupancy rate (%) 100.0 99.5 100 90.0 90 87.9 88.1 （88.1） 80.0 80

70.0 70 May Aug. Nov. Feb. May May Aug. Nov. Feb. May '17/52017 '17/82017 '17/112017 '18/22018 '18/52018 '17/52017 '17/82017 '17/112017 '18/22018 '18/52018

 The Property is located near Tokyo Station and successfully obtained  The Property is located near Otemachi and successfully received expansion needs from IT companies as a result of utilizing the applications for occupancy from IT companies in December by transportation convenience of being accessible to multiple lines and showcasing the transportation convenience of being accessible to targeting needs for relocation and nearby sub-offices. multiple lines, superior building age and high grade (100%  Occupancy rate as of the end of May: 100% occupancy). Although a tenant moved out in April, the occupancy rate was maintained at 100% without downtime.  Occupancy rate as of the end of May: 100%

Daiwa Minami Aoyama CONCURRED Yokohama Square Daikanyama (Acquisition Price: 4,550 million yen) (Acquisition Price: 38,100 million yen) (Acquisition Price: 2,280 million yen)

 Located a 5-minute walk from  Located a 5-minute walk from  Located about a 7-minute Gaiemmae Station on the Yokohama Station where 12 walk from Daikanyama Tokyo Metro Ginza Line lines are available including Station on the Tokyu Toyoko  A property located in an area the JR lines. Line. with local brand strength as  The Yokohama East Exit  Demand from various the forefront of culture and Area where the property is companies including foreign fashion where fancy shops located has higher office companies focusing on a and cafes stand in line, and stock quality than the relaxing work environment, preferred by tenants focusing Yokohama West Exit Area centering on IT companies on design and trends. where small and medium located in the Shibuya area in buildings concentrate and large number, are assumed. transportation convenience is evaluated higher than the Minato Mirai Area as it offers access to Yokohama Station.

Kinko-cho, Kanagawa-ku, Yokohama-shi, Location Minami-Aoyama, Minato-ku, Tokyo Location Location Daikanyamacho, Shibuya-ku, Tokyo Kanagawa Site Area 963.12 m² Site Area 7,140.99 m² Site Area 503.72 m²

Structure S/SRC Structure S/SRC Structure S

Floor B2/5F Floor B1/20F Floor 6F

Use Office/parking Use Office/store/assembly hall/parking Use Office/store

Total Floor Area 4,379.34 m² Total Floor Area 53,772.50 m² Total Floor Area 1,989.40 m² Office 84.8% (as of May 31, 2018) 100.0% (as of May 31, 2018) Occupancy Rate 93.2% (as of May 31, 2018) Occupancy Rate Occupancy Rate ⇒ 100.0% (Jun. 2018) ⇒ 0% (scheduled for Feb. 2019) Construction Date September 1990 Construction Date February 2008 Construction Date March 2001

 Having strength in its suitably refined design in Aoyama and its  Needs for visit-type office and business base due to its locational  Needs for leasing the entire building from companies focusing on stately appearance. Succeeded in grasping and smoothly taking in characteristic of being located near Yokohama Station where the image and sensitivity of fashion at refined towns such as the needs for floor expansion in daily communication with tenants. multiple lines are available and needs for integration and relocation apparel, advertising and design companies, industries that tend to  Concluded contract with a downtime of about 2 weeks. due to sizable floor area are assumed. concentrate at specific regions in the Shibuya area including  Aims for early conclusion of contracts by utilizing FR when foreign companies and telecommunication companies, and necessary and maintaining unit price. educational institutions are assumed.  Aims to appeal the building which can be leased in its entirety and take in needs, in addition to the scarcity of having approximately 500 tsubos of vacant floors, while the vacancy rate is decreasing in the Shibuya area and its surrounding areas.

Purpose of large-scale repair work Cases of construction work in the fiscal period ended May 2018

• Established medium- to long-term plans for the purpose of Integral Tower Value enhancement through renewal work of maintaining and restoring the functions of properties as well air conditioners as examined the following items and conducted large-scale repair work in a timely and appropriate manner upon considering construction work.  Conducted renewal work changing from central to individual air conditioning system  Realized rent increase by fulfilling tenant needs with 1. Cost reduction the improvement of convenience in the use of air conditioners by tenants.  Construction work leading to the reduction of owner cost with the reduction of utility charges by renewing air conditioners and Lead to the reduction of utility charges of owners. utilization of reused water facilities  Improvement of profitability was evaluated and increase in appraisal value was also realized. 2. Value enhancement

 Construction work aiming to improve future profitability with the Impact on unit rent Impact on appraisal value strengthening of competitiveness of properties including renewal of air conditioning facilities ⇒ Realized rent increase exceeding the increase ⇒ Appraisal value increased by 4.1% from the end in market unit price (large-scale buildings in the of the previous period as of the end of the 25th 23 wards of Tokyo) with the renewal work of air Fiscal Period (no change in cap rate). 3. Response to tenant needs conditioners. Contributed to the improvement of property value with the improvement of profitability. ■ Integral Tower ■ Large-scale buildings in the 23 wards of Tokyo  CS construction work for improving environment of tenants including * End of the 21st FP = 1 air conditioners and toilets

4. Response to qualitative improvement of the environment

 Construction work leading to the improvement of environmental performance including the introduction of green leasing (installation of LED lighting in areas exclusively occupied by the tenant)

5. Response to social changes

 Construction work responding to social changes including IT-related facilities and barrier-free layout

Daiwa Kanda East Value enhancement through construction work for changing use

 The expected mid-term NOI yield (4.5%) is calculated by assuming that the 9th floor is vacant as the 9th floor was used as a residence upon acquisition (January 2018).  Conducted construction work for changing the 9th floor into a leasable office floor from June to July 2018. Expected to be operated as an office during November 2018.  The expected mid-term NOI yield is expected to increase from 4.5% (assumed occupancy rate 90.4%) to 4.9% (assumed occupancy rate 98.1%) with this value enhancement work.

Residential Office Change of use

Collection period of expenses: approx.3.3 years [9F floor layout]

Cost reduction with the utilization of unused water (utility charges)

Shinjuku Maynds Tower Daiwa River Gate

• Reduced service water consumption by utilizing • Reduced service water consumption and improved the efficiency of water usage by using surplus drainage rainwater as water for washing toilets and integrating in humidification for outdoor air conditioner on the rooftop. reused water facilities.

(Million Yen) Cost comparison Installed filtration device (Million Yen) Cost comparison 300 Unused of unused water 35 250 30 Existing Existing 25 Expected value 200 Expected value 20 150 15 100 10 50 5 0 0 1st year 2nd year 3rd year 4th year 5th year 1st year 2nd year 3rd year 4th year 5th year

Reduced approximately 140 million yen of costs in five years Reduced approximately 21.5 million yen of costs in five years (expected to reduce 28 million yen of costs per year) (expected to reduce 5.1 million yen of costs per year)

Efforts for improving the environment surrounding the building Daiwa River Gate Directly under the lighting: 1 lux Directly under the lighting: 200 lux

• Installation of Solar Wind Street Light Illuminance increased from 1 lux to 200 lux Issue at the portion directly under the lighting at the passage on the side of the river and from The stairs under the bridge and the passage on the side of the 1 lux to 10 lux at the stairs, contributing to river are dark with low illuminance only with the existing lighting the improvement in the environment Stairs: 1 lux Stairs: 10 lux surrounding the building including crime Measures prevention. Improved illuminance by installing solar wind street lights which Moreover, illuminance was improved at the utilize strong winds and sufficient sunlight of the location near a stairs to clearly identify the difference in level. river, which also leads to natural renewable energy usage.

Progress in introduction of green leasing

Ratio of Areas with LED Lighting Installed Shinjuku Maynds Tower (Forecast)  As part of measures to protect the environment and raise tenant satisfaction, the Investment Corporation has taken initiatives in which it concludes a green leasing agreement with tenants and promotes installing LED lighting in areas exclusively occupied by the tenants at Shinjuku Maynds Tower since 2014.  Around 80% of areas exclusively occupied by tenants is expected to have LED lighting in the fiscal period ending November 2018.

Coexistence with Local Communities

Shinjuku Maynds Tower

• Shinjuku-Minami GREEN LABYRINTH [Period] March 30, 2018 to April 1, 2018 Conducted an exhibition of books concerning biodiversity and environment of the United Nations, a performance of acoustic instruments on stage without using power, and a charity of books that have been read at houses and offices at a public open space of Shinjuku Maynds Tower and two Suica’s Penguin Parks.

Acquisition/Sale Policy Distribution Chart of Portfolio Properties

 Places priority in the five central wards of Tokyo and equivalent area. Building Age (Year)  Thoroughly select properties in view of actual demand toward location (distance to station, station power, crowd attraction, surrounding environment), building specs, etc.  Target properties to improve growth potential and profitability of existing portfolio.  Invest in buildings less than 25 years of building age.  Consider replacements when necessary in consideration of future competitiveness, profitability, etc. of properties.

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

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

Number of Properties Reviewed for Acquisition *Number of gross proposals.

Distance to station (minutes)

Total acquisition amount Total sales amount 2 properties 2 properties 42,300 million yen 70,800 million yen

CONCURRED Yokohama Shinjuku Maynds Tower Daiwa Kanda East (Note 1) Daiwa Meiski (75/100 of quasi co-ownership) (3/7 of co-ownership)

Asset replacement

Acquisition Date January 11, 2018 January 12, 2018 Transfer Date February 28, 2018 December 20, 2017

Acquisition Price 38,100 million yen 4,200 million yen 42,300 million yen Transfer Price 62,500 million yen 8,300 million yen 70,800 million yen

Appraisal Value (Note 2) 39,300 million yen 5,000 million yen 44,300 million yen Appraisal Value (Note 5) 62,500 million yen 7,990 million yen 70,490 million yen

Kinko-cho, Kanagawa-ku, Kanda Higashi Matsushitacho, Meieki-Minami, Nakamura-ku, Location/ Location/ Yoyogi, Shibuya-ku, Tokyo/ Yokohama-shi, Kanagawa/ Chiyoda-ku, Tokyo/ Nagoya-shi, Aichi/ Distance from Station Distance from Station 1.0 minute 5.0 minutes 2.0 minutes 7.0 minutes

Construction Date/ February 29, 2008 February 16, 2005 Construction Date/ September 23, 1995 December 20, 2007 Building Age (Note 3) /10.2 years /13.2 years Building Age (Note 3) /22.7 years /10.4 years

NOI yield (Note 4) 4.0% 4.4％ 4.1％ NOI yield (Note 6) 3.0% 4.５％ 3.1％

(Note 1) “Nippon Manpower Building” was renamed “Daiwa Kanda East Building” as of July 1, 2018 (Note 2) As of December 1, 2017 (Note 3) As of May 31, 2018 (Note 4) Figures calculated by dividing the expected annual balance of payments under the occupancy rate as of the acquisition date by the acquisition price, based on the lease agreement upon acquisition, etc. while taking into account the accrual of tax and public due, etc. are indicated. (Note 5) As of November 30, 2017. The appraisal value of Shinjuku Maynds Tower is calculated by regarding 6/7 of co-ownership as equivalent to 3/7. (Note 6) Figures calculated by dividing the NOI for the fiscal period ended November 2017 by the transfer price are indicated.

Acquisition price: 1,800 million yen Acquisition Prime Kanda Building Acquisition date: June 7, 2018

Transportation access • The Property is a 1-minute walk from Iwamotocho Station on the Toei Subway Shinjuku Line, a 7- minute walk from Akihabara Station on the JR Yamanote Line and Keihin Tohoku Line, a 4-minute walk from Akihabara Station on the Tokyo Metro Hibiya Line, an 8-minute walk from Kanda Station on the JR Yamanote Line, Keihin Tohoku Line and Chuo Line as well as a 6-minute walk from Kanda Station on the Tokyo Metro Ginza Line. As such, the area is highly convenient for transportation.

Property overview • The Property has 10 floors above ground and one below with a gross floor area of 2,435.80 m2 and a leasable area of approximately 70 tsubos per floor is secured. It is equipped with an OA floor, individual air conditioning and other facilities. Since the office space is without pillars, flexible layout and efficient use is possible. • The property is 27 years old but is maintained and managed appropriately and is considered to be able to draw the attention of potential tenants to its excellent image within the area where there are many office buildings that are 30 years old or older.

(Note 1) As of May 1, 2018 Location Kanda-Sudacho, Chiyoda-ku, Tokyo Appraisal Value 1,940 million yen (Note 1) (Note 2) Figures calculated by dividing the expected annual /Distance from Station 1.0 minute balance of payments under the assumed occupancy rate (100.0%) by the acquisition price, based on the lease Site area of entire building 302.42 m² agreement upon acquisition, etc. while taking into account the accrual of tax and public due, etc. are Construction Date August 30, 1990 Land area indicated. The figures do not represent forecast figures Ratio of right of site to be /Building Age 27.7 years* (right of site) 1,519,380/1,814,520 for the current period or the next period onward. acquired by the (approx. 83.73%) Investment Corporation (Note 3) Figures calculated by dividing the estimated figures for normal operation period (with assumed occupancy rate Total floor area of entire of 96.0%) after acquisition, obtained by deducting rent 2,435.80 m² building business-related expenses from rent revenue assumed under rents over a medium term, by the acquisition price Building area Floor area of exclusive Floor area of exclusive are indicated. The figures do not represent forecast Structure/Floor S/RC / B1 / 10F (compartmentalized space and co-ownership space:1,716.51㎡ figures for the current period or the next period onward. ownership) interest of common space Co-ownership interest of (Note 4) Depreciation indicates a figure obtained by dividing the to be acquired by the common space: Approx. total amount of depreciation (6month equivalent) 77.27 Investment Corporation ％ expected to be posted upon property acquisition and depreciation (for 6 months) expected to be posted in the Occupancy Rate 100.0% (as of acquisition) Number of Tenant 6 (as of acquisition) following fiscal period by the acquisition price. The figures do not represent forecast figures for the current NOI Yield Occupancy Rate NOI Yield Occupancy Rate period or the next period onward. Upon Acquisition (Note 2) Mid-term (Note 3) * As of the end of May 2018 3.8% 100.0% 4.2% 96.0%

NOI Yield Occupancy Rate Appraisal Depreciation (Note 4) 0.5% 4.5% 95.0%

Acquisition price: 2,500 million yen Acquisition Kita-Shinagawa Gotenyama Building Acquisition date: September 13, 2018

Transportation access • The Property is a 10-minute walk from Shinagawa Station on the JR Yamanote Line, JR Keihin Tohoku Line and JR Tokaido Line and a 1-minute walk from Kita-Shinagawa Station on the Keikyu Line. • The “Kita-Shinagawa” area where the Property is located has a large number of high-rise buildings due to redevelopments and is adjacent to the Shinagawa Port South Exit area, which has developed remarkably as a business area in recent years, and the Osaki area where large-scale office buildings with a high level of equipped facilities are supplied. As for office demand in the “Kita-Shinagawa” area, it is considered that needs for headquarters, branches and business offices in Tokyo from companies developing businesses nationwide and emphasizing wide-area traffic convenience as well as demand for back-offices from companies that have bases in large buildings in both areas can be expected.

Property overview • The Property has eight floors above ground with a total floor area of 2,897.64 m2 and a leasable area of approximately 100 tsubos per floor is secured. It has 2,550 mm of typical floor celling height, 50 mm of OA floor and facilities including individual air conditioners. It has rectangle-shaped (roughly regular-shaped) rental spaces with a side core design, thus offering excellent layout flexibility and usability.

(Note 1) As of June 1, 2018 Location Kita Shinagawa Shinagawa-ku, Tokyo Appraisal Value 2,620 million yen (Note 1) (Note 2) Figures calculated by dividing the expected annual /Distance from Station 1.0 minute balance of payments under the assumed occupancy rate (96.0%) by the acquisition price, based on the lease Construction Date July 20, 1992 agreement upon acquisition, etc. while taking into Site Area 602.41 m² account the accrual of tax and public due, etc. are /Building Age 25.8 years* indicated. The figures do not represent forecast figures for the current period or the next period onward. Structure/Floor SRC/S / 8F Total Floor Area 2,897.64 m² (Note 3) Figures calculated by dividing the estimated figures for normal operation period (with assumed occupancy rate of 96.0%) after acquisition, obtained by deducting rent Occupancy Rate 86.2% (as of acquisition) Number of Tenant 4 (as of acquisition) business-related expenses from rent revenue assumed under rents over a medium term, by the acquisition price are indicated. The figures do not represent forecast figures for the current period or the next period onward. NOI Yield Occupancy Rate NOI Yield Occupancy Rate (Note 4) Depreciation indicates a figure obtained by dividing the Upon Acquisition (Note 2) Mid-term (Note 3) total amount of depreciation (6month equivalent) expected to be posted upon property acquisition and 4.1% 96.0% 4.1% 96.0% depreciation (for 6 months) expected to be posted in the following fiscal period by the acquisition price. The figures do not represent forecast figures for the current NOI Yield Occupancy Rate period or the next period onward. Appraisal Depreciation (Note 4) 0.5% * As of the end of May 2018 4.5% 96.0%

Aim to Achieve Medium-Term Goal Asset Size of 500 Billion Yen

500.0

467.7 469.3 469.3 458.3 445.7 439.4

413.2 387.5

364.0 352.7 332.0 311.3 313.2 314.9 44.3% 43.3% 43.0% 41.7% 42.3% 42.2% 42.3% 287.3 278.1 40.6% 40.2% 40.5% 265.0 269.1 37.5% 34.4% 34.0% 34.2% Acquisition Property Acquisition Property • Daiwa River Gate • CONCURRED Yokohama 28.9% • Daiwa Hatchobori ekimae • Daiwa Kanda East 28.1% • Daiwa Hatchobori ekimae West Acquisition Property 25.3% 25.5% • Daiwa Shibuya Dogenzaka Acquisition Property Acquisition Property • Daiwa Akasaka Acquisition Property • E SPACE TOWER • Daiwa Shibuya Miyamasuzaka • Daiwa Ebisu 4-chome • LAQUAS Higashi Shinjuku • Daiwa Kanda Mikuracho • Daiwa Aoyama Acquisition Property Acquisition Property • Shinsen Place • Daiwa Kayabacho • shinyon curumu • Glass City Shibuya Acquisition Property • Daiwa Jinbocho 3-chome • Daiwa Meieki • Daiwa Meguro Square • Daiwa Higashi-Nihonbashi • Daiwa Kamiooka • Square Daikanyama Building Acquisition Property Acquisition Property • Shinjuku West Building • Daiwa Ogikubo • Daiwa Nishi-Shimbashi Acquisition Property • Daiwa Azabu Terrace • Daiwa Kudan • Daiwa Osaki 3-chome • Daiwa Kitahama

Acquisition Property Acquisition Property Acquisition Property Acquisition Property • Daiwa Nishi-Shinjuku • Daiwa Jimbocho • Daiwa Nihonbashi Hongokucho • Integral Tower • Kirin Nihonbashi Building

Loan to Value Trend Status of Interest-bearing Liabilities (End of 25th Fiscal Period) (Billion Yen) Ratio of Ratio of Fixed and Floating Borrowings Long and Short-Term Borrowings

8.2％ 23.8％

Medium- to long-term, upper-limit target LTV range 40.5% 76.2％ 91.8％

Fixed interest Long-term loans payable, etc.

Floating interest Short-term loans payable and current portion of long-term loans payable

Status of Rating

Japan Credit Rating Agency, Ltd. (JCR)

Long-term issuer rating Rating outlook: Positive

Rating and Investment Information, Inc. (R&I)

Issuer rating Rating outlook: Stable (Note) LTV (based on total assets) = Total interest-bearing liabilities / Total assets

Repayment Schedule Changes in Procured Years of Interest-Bearing Liabilities

(Million Yen) (Year) (Year)

 Investment Corporation Bond

4.2

7.9

1.4

As of End of the 25th Fiscal Period (Million Yen)

Comparison with Comparison with Name of Financial Institutions Balance Balance Ratio Name of Financial Institutions Balance Balance Ratio Previous Period Previous Period Sumitomo Mitsui Banking The Yamaguchi Bank, Ltd. Corporation. 36,400 -6,000 19.8% 2,000 0 1.1%

Sumitomo Mitsui Trust Bank, 22,500 -2,350 12.2% ORIX Bank Corporation 1,500 -1,000 0.8% Limited

Development Bank of Japan Inc. 21,750 0 11.8% Nippon Life Insurance Company 1,300 0 0.7%

MUFG Bank, Ltd. 20,500 -4,000 11.2% The Kagawa Bank, Ltd. 1,000 0 0.5%

Mizuho Corporate Bank, Ltd. 18,400 -1,000 10.0% The Higashi-Nippon Bank, Limited 1,000 -500 0.5%

Shinsei Bank, Ltd 14,000 0 7.6% Taiyo Life Insurance Company 300 0 0.2%

Fukoku Mutual Life Insurance Resona Bank, Limited 12,500 0 6.8% 200 0 0.1% Company

The Bank of Fukuoka, Ltd. 5,500 0 3.0% Total (23 banks) 183,850 -15,350 100.0%

Mizuho Trust and Banking Co., 5,500 -500 3.0% Ltd. Kansai Urban Banking 5,000 0 2.7% Corporation

Aozora Bank, Ltd. 3,000 0 1.6%

Nishi-Nippon City Bank, Ltd. 3,000 0 1.6%

Comparison with Duration of The Gunma Bank, Ltd. 2,500 0 1.4% Issuance Balance Previous Period Liabilities No. 3 Unsecured Investment The 77 Bank, Ltd. 2,000 0 1.1% 3,000 0 5 years Corporation Bond No. 4 Unsecured Investment The Musashino Bank, Ltd. 2,000 0 1.1% 2,100 0 10 years Corporation Bond Tokio Marine & Nichido Fire Total Investment Corporation 2,000 0 1.1% Insurance Co., Ltd. Bonds 5,100 0 -

Unitholders’ Share by Investor Type List of Top 10 Investors

Number of Number of Number of Number of (Note) Rate (Note) Rate Units Units Change of Units Units Change of Investor Type End of 25th No. Investor Name End of 25th End of 24th End of 25th Units End of 24th End of 25th Units Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period

Individuals 20,718 17,144 -3,574 3.49% 1 Daiwa Investment Management Inc. 128,905 128,905 0 26.21%

Financial 182,502 171,532 -10,970 34.87% The Master Trust Bank of Japan, Ltd. Institutions 2 (Investment Trust Account) 61,555 65,125 +3,570 13.24%

Commercial 0 0 0 0.00% Bank 3 Daiwa Securities Group Inc. 59,321 59,321 0 12.06%

Regional Bank 14,138 14,312 +174 2.91% Japan Trustee Services Bank, Ltd. 4 (Trust Account) 48,898 39,506 -9,392 8.03%

Trust Bank 155,263 146,875 -8,388 29.86% Trust & Custody Services Bank, Ltd. 5 (Securities Investment Trust Account) 27,996 26,045 -1,951 5.30% Life Insurance 2,604 810 -1,794 0.16% The Nomura Trust and Banking Co., Ltd. 6 (Investment Trust Account) 12,289 12,606 +317 2.56% Non-life Insurance 700 422 -278 0.09% THE BANK OF NEW YORK, 7 NON-TREATY 4,767 8,699 +3,932 1.77% Other Financial JASDEC ACCOUNT Institutions 9,797 9,113 -684 1.85% ＳTATE STREET BANK AND TRUST Other Domestic 8 7,886 8,006 +120 1.63% 191,803 190,961 -842 38.82% COMPANY 505012 Corporation

STICHTING PENSIOENFONDS METAAL EN 9 7,463 5,641 -1,822 1.15% Foreigner 97,119 106,453 +9,334 21.64% TECHNIEK

STATE STREET BANK - WEST PENSION Securities 5,727 5,787 +60 1.18% 10 FUND CLIENTS - EXEMPT 505233 5,144 5,147 +3 1.05%

Total 497,869 491,877 -5,992 100.00% Total 364,224 359,001 -5,223 72.99%

(Note) Rounded to the second decimal place (Note) Rounded to the second decimal place

Management Fee Ⅰ Management FeeⅢ （based on assets under management）（based on distributable amount）

Basis of the calculation Ratio Basis of the calculation Ratio

Cumulative Acquisition Price 0.1％ Before Before Distributable amount 2.0％

Total appraisal value of assets No Change under management 0.05％ After ※Change from acquisition price to After Distributable amount 3.5％ market value basis ※ Management Fee Ⅱ(Property-related operating revenue basis), Management fee Ⅳ(Asset Acquisition basis) & Management Fee Ⅴ(Asset Divestment basis) are not changed （wording amendments only） Assumptions of this change for the past 2 periods and the forecasted 2 periods ■■ Management Fee Ⅰ ■■ Management Fee Ⅱ ■■ Management Fee Ⅲ

FY2017/11 Before 236 700 111 (24th period) After 130 700 198 Before 231 712 120 FY2018/5 (25th period) After 131 712 213 Before 221 716 118 Forecast FY2018/11 (26th period) After 127 716 211 Before FY2019/5 221 713 120 (27th period) After 127 713 214

0 200 400 600 800 1,000（Mil Yen） (Note)The amount before change for the 24th Fiscal Period and 25th Fiscal Period are the actual value and the amount after change is the estimated value calculated by assuming thet there was a change in the asset management fee system from the beginning of each period. The amount before change for the 26th Fiscal Period and the amount after change for the 27th Fiscal Period are the forecast value of earnings announced in “REIT Financial Report for the 25th Fiscal Period” dated July 18, 2018 and the amount after change 26th Fiscal Period is the estimated value calculated by assuming thet there was a change in the asset management fee system from beginning of the 26th Fiscal Period based on the assumptions of the earnings forecast and the amount before change for the 27th Fiscal Period is the estimated value when there are no changes in the asset management fee system. Furthermore, the amount of management fee I after change for the 26th Fiscal Period and 27th Fiscal Period are calculated by assuming that there will be no change in the appraisal value as of end of the 25th Fiscal Period. In addition, the above-mentioned forecast value and estimated value are based on certain assumptions and may differ from the actual amount. Future Initiatives

Internal Growth  Connecting to internal growth through a thorough hands- on approach based on focusing the portfolio on the steady Tokyo office market. “Bonji-Tettei”

External Growth  Continue to carefully select and actively invest in competitive Acquisition of carefully properties including strategic asset replacement that contributes to enhancement of portfolio value. selected properties

 Work to further strengthen financial structure against the Financial Strategy backdrop of a favorable financial market. Continue to strengthen  Conduct agile and flexible fund procurement by capitalizing on strong relationships with lenders. financial structure  Strengthen IR, aiming for increase in number of investors.

Corporate Governance

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

Comparison with Results of the 24th Fiscal Period

24th Fiscal Period 25th Fiscal Period 24th Fiscal Period 25th Fiscal Period

Million Yen (%) Million Yen (%) Million Yen (%) Million Yen (%)

Current Assets 16,614 3.4 32,648 7.0 Current Liabilities 23,198 4.8 19,802 4.2

Cash and Deposits 14,289 28,687 Operating Accounts Pay ables 814 872

Cash and Deposits in Trust 1,668 3,383 Short-term Loans Pay able 2,000 - Current Portion of Long-term Loans 17,350 15,500 Other Current Assets 655 577 Pay able Accounts Pay ables-Other 425 534 Fixed Assets 466,538 96.6 434,373 93.0 Adv ances Receiv ed 2,046 2,073 Tangible Fixed Assets 458,570 94.9 430,497 92.2 Building and Others Other Current Liabilities 562 821 (including Trust Property ) 83,972 82,195 Fixed Liabilities Land and Others Liabilities 203,178 42.1 193,561 41.4 (including Trust Property ) 373,075 347,477 Inv estment Corporation Bonds 5,100 5,100 Other Tangible Fixed Assets 1,522 824 Long-term Loans Pay able 179,850 168,350 Intangible Fixed Assets 2,733 0.6 2,730 0.6 Tenant Leasehold and Security Deposits Leasehold Rights and Leasehold 17,140 17,709 Assets Rights in Trust 2,705 2,705 Tenant Leasehold and Security Deposits in Trust 491 1,792 Other Intangible Fixed Assets 28 25 Other Fixed Liabilities 596 609 Inv estments and Other Assets 5,234 1.1 1,145 0.2 Total Liabilities 226,377 46.9 213,363 45.7 Investment securities 3,951 - Unitholders’ equity (net amount) 251,551 247,876 Leasehold and Security Deposits 113 113 Paid in Trust Unitholders' capital 251,551 251,551 Long-term Prepaid Expenses 1,002 903 Deduction f rom unitholders’ capital 0 -3,675 Other Inv estments and Other Assets 166 128 Unappropriated Retained Earnings 5,619 6,051 Net Assets Net Def erred Assets 20 0.0 17 0.0 Valuation, Translation Adjustments and Others -375 -251 Inv estment Corporation Bond Issuance Total Net Assets Costs 20 17 256,796 53.1 253,676 54.3 Total Assets 483,173 100.0 467,040 100.0 Total Liabilities and Net Assets 483,173 100.0 467,040 100.0

Comparison with Results of the 24th Fiscal Period Comparison with the 25th Fiscal Period Forecasts (Million Yen) (Million Yen) 25th Fiscal Period 24th Fiscal 25th Fiscal Forecast 25th Fiscal Period Period (Announced Period Change January 18, 2018) Change Effective Number of Days of Investment 183 182 Effective Number of Days of Investment 182 182

Operating Rev enues (A) 12,735 13,440 +705 Operating Rev enues (A) 13,365 13,440 +75

Gain on Sale - 481 +481 Gain on Sale 464 481 +17

Operating Expenses (B) 6,557 6,761 +203 Operating Expenses (B) 6,775 6,761 -13 Expenses related to Rental Business Expenses related to Rental Business (excluding depreciation) 3,510 3,638 +127 (excluding depreciation) 3,626 3,638 +11 Depreciation 1,768 1,772 +3 Depreciation 1,784 1,772 -12 Gain and Loss f rom Rental Operations Gain and Loss f rom Rental Operations (excluding gain on sale) 7,455 7,499 +43 (excluding gain on sale) 7,436 7,499 +63

Operating Income (A-B) 6,177 6,678 +501 Operating Income (A-B) 6,589 6,678 +88

Non-operating Expenses 723 929 +206 Non-operating Expenses 918 929 +11 Interest Expense Interest Expense (including cap amortization) 564 558 -5 (including cap amortization) 566 558 -7 Ordinary Income 5,456 5,888 +432 Ordinary Income 5,863 5,888 +24

Extraordinary Income - - - Extraordinary Income - - -

Extraordinary Expenses - - - Extraordinary Expenses - - - Total Income Taxes Total Income Taxes (Includes income taxes def erred) 0 0 - (Includes income taxes def erred) 2 0 -1 Net Income 5,455 5,887 +432 Net Income 5,861 5,887 +26

Inv estment Units Issued and Outstanding 497,869 units 491,877 units - 5,992 units Inv estment Units Issued and Outstanding 497,869 units 491,877 units - 5,992 units

Div idend per Unit 10,957 yen 11,150 yen + 193 yen Div idend per Unit 11,000 yen 11,150 yen + 150 yen

Forecasts for the 26th and 27th Fiscal Periods (Million Yen)

25th Period 26th Period 27th Period (May 31, 2018) Forecast (Nov. 30, 2018) Forecast (May 31, 2019)

Effective Number of Days of Investment 182 183 182

Operating Rev enues (A) 13,440 13,029 12,964

Gain on Sale 481 - -

Operating Expenses (B) 6,761 6,570 6,432

Expenses related to Rental Business (excluding depreciation) 3,638 3,552 3,376

Depreciation 1,772 1,708 1,745

Gain and Loss f rom Rental Operations (excluding gain on sale) 7,499 7,769 7,841

Operating Income (A-B) 6,678 6,459 6,531

Non-operating Expenses 929 628 626

Interest Expense (including cap amortization) 558 492 481

Ordinary Income 5,888 5,830 5,904

Extraordinary Income - - -

Extraordinary Expenses - - -

Total Income Taxes (Includes income taxes def erred) - 2 2

Net Income 5,887 5,828 5,902

Inv estment Units Issued and Outstanding 491,877 units 491,877 units 491,877 units

Div idend per Unit (Note) 11,150 yen 11,850 yen 12,000 yen

(Note) Dividends per unit for the 25th FP is calculated by dividing the amount obtained by subtracting provision for reserve for reduction entry (403 million yen) from unappropriated retained earnings by the total number of investment units issued and outstanding.

21st 22nd 23rd 24th 25th NOI Item Unit Period Period Period Period Period Rent revenue + Other operating revenue –Expenses related to rent business + Depreciation Number of days of investment Day 183 183 182 183 182

Number of properties at end of period Property 50 53 54 54 55 FFO Net income + Depreciation – Gain on sale Occupancy rate at end of period % 98.7 97.7 97.7 98.2 99.0

ROA Average acquisition price Million Yen 448,052 466,891 469,166 469,341 463,157 Annualized ordinary income /

NOI (total assets at beginning of fiscal period+ total assets Million Yen 8,751 9,067 9,166 9,224 9,271 (after deduction of gain on sale) at end of fiscal period) / 2

Funds from operation Million Yen 6,652 6,972 7,129 7,223 7,177 (FFO) ROE Return on asset Annualized net income / % 2.3 2.2 2.2 2.3 2.5 (ROA ) (net assets at beginning of fiscal period+ net assets at Return on equity end of fiscal period) / 2 % 4.2 4.2 4.2 4.2 4.6 ( ROE)

Capital adequacy ratio at end of period % 52.0 53.1 53.0 53.1 54.3 Loan-to-Value (LTV) at end of fiscal period Interest-bearing liabilities at end of fiscal period / Total Loan-to-Value (LTV) at end of period % 43.3 42.3 42.2 42.3 40.5 assets at end of fiscal period

Borrowings

Balance Interest Interest Rate Date of Balance Interest Interest Rate Date of Term Lender Due date Term Lender Due date (million yen) T ype (%) Advance (million yen) T ype (%) Advance The Kagawa Bank, Ltd.(*) 1,000 Fixed 0.814% 13/2/28 19/2/28 Mizuho Trust and Banking Co., Ltd.(*) 3,000 Fixed 0.530% 14/7/8 20/11/30 Aozora Bank, Ltd.(*) 1,000 Fixed 0.878% 13/4/12 19/5/31 Sumitomo Mitsui Banking Corporation.(*) 2,000 Fixed 0.530% 14/7/8 20/11/30 Kansai Urban Banking Corporation 1,500 Fixed 0.893% 13/6/28 18/8/31 Sumitomo Mitsui Banking Corporation.(*) 3,500 Fixed 0.618% 14/7/8 21/11/30 Dev elopment Bank of Japan Inc. 1,000 Fixed 0.833% 13/7/3 18/8/31 Sumitomo Mitsui Banking Corporation.(*) 4,000 Fixed 0.585% 14/7/8 22/5/31 The Bank of Fukuoka, Ltd.(*) 1,000 Fixed 0.681% 13/7/8 18/8/31 Shinsei Bank, Ltd. 1,000 Float L+0.325% 14/7/8 22/8/31 Tokio Marine & Nichido Fire Insurance Co., Ltd.(*)(**) 1,000 Fixed 0.540% 13/8/9 18/7/31 Sumitomo Mitsui Banking Corporation.(*) 2,000 Fixed 0.378% 14/7/8 22/11/30 The Bank of Fukuoka, Ltd.(*) 1,000 Fixed 0.681% 13/8/9 18/8/31 MUFG Bank, Ltd.(*) 1,000 Fixed 0.560% 14/12/1 22/5/31

borrowings ORIX Bank Corporation 1,500 Fixed 0.687% 13/9/30 19/2/28 Mizuho Bank, Ltd.(*) 1,000 Fixed 0.353% 14/12/1 22/11/30 The Bank of Fukuoka, Ltd.(*) 2,000 Fixed 0.662% 13/9/30 19/3/29 Sumitomo Mitsui Banking Corporation.(*) 1,000 Fixed 0.458% 14/12/1 23/5/31 MUFG Bank, Ltd.(*) 3,000 Fixed 0.500% 14/3/31 19/3/29 Shinsei Bank, Ltd. 1,000 Float L+0.350% 14/12/1 23/5/31 The Gunma Bank, Ltd.(*) 1,000 Fixed 0.500% 14/3/31 19/3/29 Dev elopment Bank of Japan Inc. 1,000 Fixed 0.692% 14/12/3 21/11/30 Current maturities of long-term of long-term maturities Current The Musashino Bank, Ltd.(*)(**) 500 Fixed 0.435% 14/5/29 19/5/31 MUFG Bank, Ltd.(*) 1,000 Fixed 0.593% 14/12/3 21/11/30 Total current maturities of long-term borrowings 15,500 MUFG Bank, Ltd.(*) 1,000 Fixed 0.560% 14/12/3 22/5/31 Sumitomo Mitsui Trust Bank, Limited(*) 1,500 Fixed 0.896% 13/2/1 20/2/28 Mizuho Bank, Ltd.(*) 1,500 Fixed 0.353% 14/12/3 22/11/30 Aozora Bank, Ltd.(*) 2,000 Fixed 0.896% 13/2/28 20/2/28 Resona Bank, Limited(*) 1,500 Fixed 0.353% 14/12/3 22/11/30 Resona Bank, Limited(*) 2,000 Fixed 0.896% 13/3/1 20/2/28 Sumitomo Mitsui Trust Bank, Limited(*) 1,000 Fixed 0.353% 14/12/3 22/11/30 Sumitomo Mitsui Trust Bank, Limited(*) 1,500 Fixed 0.844% 13/4/12 19/11/29 Sumitomo Mitsui Banking Corporation.(*) 1,500 Fixed 0.458% 14/12/3 23/5/31 Dev elopment Bank of Japan Inc. 1,000 Fixed 0.963% 13/4/12 19/11/29 Resona Bank, Limited(*) 2,500 Fixed 0.365% 15/2/27 23/2/28 Kansai Urban Banking Corporation(*)(**) 1,500 Fixed 0.677% 13/6/28 19/8/30 Dev elopment Bank of Japan Inc. 2,000 Fixed 0.710% 15/3/31 22/3/31 Kansai Urban Banking Corporation(*)(**) 2,000 Fixed 0.794% 13/6/28 20/8/31 Shinsei Bank, Ltd. 1,500 Float L+0.325% 15/3/31 23/5/31 Sumitomo Mitsui Banking Corporation.(*) 1,600 Fixed 0.781% 13/7/3 20/8/31 The 77 Bank, Ltd.(*) 1,000 Fixed 0.479% 15/5/1 21/5/31 Shinsei Bank, Ltd.(*)(**) 1,000 Fixed 0.787% 13/7/3 20/11/30 Dev elopment Bank of Japan Inc. 1,500 Fixed 0.634% 15/5/1 22/5/31 The Higashi-Nippon Bank, Limited(*) 1,000 Fixed 0.808% 13/7/3 20/11/30 The Bank of Fukuoka, Ltd.(*) 1,500 Fixed 0.408% 15/5/1 23/5/31 Sumitomo Mitsui Trust Bank, Limited(*) 1,000 Fixed 0.824% 13/7/8 19/11/29 Sumitomo Mitsui Trust Bank, Limited(*) 1,500 Fixed 0.450% 15/5/1 23/11/30 Sumitomo Mitsui Trust Bank, Limited(*) 4,000 Fixed 0.816% 13/7/8 20/5/29 Mizuho Bank, Ltd.(*) 1,500 Fixed 0.450% 15/5/1 23/11/30 Shinsei Bank, Ltd.(*)(**) 1,000 Fixed 0.836% 13/7/31 21/5/31 Shinsei Bank, Ltd. 1,500 Float L+0.325% 15/5/1 23/11/30 Resona Bank, Limited(*) 1,500 Fixed 0.450% 15/5/1 23/11/30 Shinsei Bank, Ltd.(*)(**) 1,000 Fixed 0.856% 13/7/31 21/8/31 borrowings Long-term MUFG Bank, Ltd.(*) 3,000 Fixed 0.761% 13/8/9 20/8/31 Sumitomo Mitsui Banking Corporation. 3,000 Float T+0.350% 15/5/1 24/5/31 Sumitomo Mitsui Trust Bank, Limited(*) 1,000 Fixed 0.646% 13/8/9 21/2/26 Mizuho Bank, Ltd.(*) 2,000 Fixed 0.450% 15/5/29 23/11/30 Sumitomo Mitsui Banking Corporation.(*) 1,400 Fixed 0.629% 13/8/9 21/5/31 MUFG Bank, Ltd.(*) 500 Fixed 0.450% 15/5/29 23/11/30 Mizuho Bank, Ltd.(*) 4,000 Fixed 0.636% 13/9/27 21/3/31 The Musashino Bank, Ltd.(*)(**) 1,000 Fixed 0.349% 15/8/31 20/8/31 Sumitomo Mitsui Banking Corporation.(*) 1,400 Fixed 0.636% 13/9/27 21/3/31 Nishi-Nippon City Bank, Ltd. 2,000 Float L+0.250% 15/8/31 22/8/31 Shinsei Bank, Ltd.(*)(**) 1,000 Fixed 0.737% 13/11/29 20/11/30 The 77 Bank, Ltd.(*) 1,000 Fixed 0.281% 15/8/31 22/8/31

Long-term borrowings Long-term Resona Bank, Limited(*) 2,000 Fixed 0.571% 14/3/18 19/9/30 Sumitomo Mitsui Banking Corporation. 500 Float T+0.350% 15/8/31 24/8/30 Resona Bank, Limited(*) 2,000 Fixed 0.606% 14/3/18 21/3/31 MUFG Bank, Ltd. 1,000 Fixed 0.300% 15/9/11 19/8/30 Sumitomo Mitsui Banking Corporation.(*) 1,000 Fixed 0.606% 14/3/25 21/3/31 Nippon Life Insurance Company(*) 1,000 Fixed 0.281% 15/9/11 22/8/31 Sumitomo Mitsui Banking Corporation.(*) 1,000 Fixed 0.593% 14/3/25 22/2/28 Sumitomo Mitsui Trust Bank, Limited 1,000 Float T+0.325% 15/9/11 24/2/29 Mizuho Bank, Ltd.(*) 3,900 Fixed 0.606% 14/3/31 21/3/31 MUFG Bank, Ltd. 1,000 Float T+0.325% 15/9/11 24/2/29 MUFG Bank, Ltd.(*) 2,000 Fixed 0.595% 14/5/29 20/5/29 Sumitomo Mitsui Banking Corporation. 1,000 Float T+0.350% 15/9/11 24/8/30 Dev elopment Bank of Japan Inc. 1,000 Fixed 0.742% 14/5/29 20/11/30 The Gunma Bank, Ltd.(*) 1,000 Fixed 0.443% 15/11/30 22/2/28 MUFG Bank, Ltd.(*) 1,000 Fixed 0.618% 14/5/29 21/11/30 Nippon Life Insurance Company(*) 300 Fixed 0.281% 15/11/30 22/8/31 Mizuho Bank, Ltd.(*) 1,500 Fixed 0.585% 14/5/29 22/5/31 Taiyo Life Insurance Company 300 Fixed 0.541% 15/11/30 22/11/30 MUFG Bank, Ltd.(*) 1,000 Fixed 0.585% 14/5/29 22/5/31 Sumitomo Mitsui Banking Corporation.(*) 1,500 Fixed 0.290% 16/3/29 23/2/28 Sumitomo Mitsui Banking Corporation.(*) 3,000 Fixed 0.378% 14/5/29 22/11/30 Dev elopment Bank of Japan Inc. 1,500 Fixed 0.303% 16/3/29 23/2/28 MUFG Bank, Ltd.(*) 1,000 Fixed 0.378% 14/5/29 22/11/30 Mizuho Bank, Ltd.(*) 1,000 Fixed 0.290% 16/3/29 23/2/28

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

Balance Interest Interest Rate Date of Balance Interest Date of Term Lender Due date Term Investment Corporation Bonds T ype Due date (million yen) T ype (%) Advance (million yen) Rate (%) Advance No. 3 Unsecured Investment Corporation Bond 3,000 F i xed 0.420% 14/9/12 19/9/12 Resona Bank, Limited(*) 1,000 Fixed 0.391% 16/3/29 23/8/31 Long-term No. 4 Unsecured Investment Corporation Bond 2,100 F i xed 1.000% 14/9/12 24/9/12 Mizuho Trust and Banking Co., Ltd.(*) 1,000 Fixed 0.391% 16/3/29 23/8/31 Total investment corporation bonds 5,100 Shinsei Bank, Ltd. 1,000 Float T+0.300% 16/3/29 24/2/29 Nishi-Nippon City Bank, Ltd. 1,000 Float T+0.300% 16/3/29 24/2/29 MUFG Bank, Ltd. 2,500 Float T+0.325% 16/3/29 24/8/30 MUFG Bank, Ltd. 1,500 Float T+0.325% 16/3/29 24/8/30 Sumitomo Mitsui Trust Bank, Limited 2,000 Float T+0.325% 16/5/26 24/11/29 Sumitomo Mitsui Banking Corporation. 1,500 Float T+0.350% 16/5/26 25/5/30 Mizuho Bank, Ltd. 1,000 Float T+0.350% 16/5/26 25/5/30 Shinsei Bank, Ltd. 2,000 Float T+0.325% 16/5/31 24/11/29 Fukoku Mutual Life Insurance Company 200 Fixed 0.579% 16/5/31 26/5/29 The Yamaguchi Bank, Ltd. 1,500 Fixed 0.450% 16/8/31 26/8/31 Dev elopment Bank of Japan Inc. 1,700 Fixed 0.387% 17/5/10 23/11/30 Dev elopment Bank of Japan Inc. 3,500 Fixed 0.437% 17/5/22 24/5/31 Dev elopment Bank of Japan Inc. 3,000 Fixed 0.477% 17/5/22 24/11/29 Sumitomo Mitsui Banking Corporation. 2,000 Float T+0.300% 17/5/31 25/5/30 Mizuho Trust and Banking Co., Ltd. 1,500 Float T+0.300% 17/5/31 25/5/30 Sumitomo Mitsui Trust Bank, Limited 3,000 Float T+0.325% 17/5/31 25/11/28 Sumitomo Mitsui Banking Corporation. 2,000 Float T+0.325% 17/5/31 25/11/28 Long-term borrowings Long-term Dev elopment Bank of Japan Inc. 2,550 Fixed 0.457% 17/8/31 25/5/30 Sumitomo Mitsui Banking Corporation. 1,500 Float T+0.350% 17/8/31 26/8/31 Mizuho Bank, Ltd. 1,000 Float T+0.350% 17/8/31 26/8/31 Tokio Marine & Nichido Fire Insurance Co., Ltd. 1,000 Fixed 0.303% 17/11/30 22/11/30 Dev elopment Bank of Japan Inc. 2,000 Fixed 0.498% 17/11/30 25/5/30 The Yamaguchi Bank, Ltd. 500 Fixed 0.489% 17/11/30 25/11/28 Shinsei Bank, Ltd. 2,000 Float T+0.325% 17/11/30 26/5/29 Sumitomo Mitsui Trust Bank, Limited 5,000 Float T+0.300% 18/2/28 26/2/27 The Gunma Bank, Ltd. 500 Float T+0.225% 18/5/31 25/5/30 The Musashino Bank, Ltd. 500 Float T+0.300% 18/5/31 26/5/29 Total long-term borrowings 168,350 Total borrowings 183,850

Major Tenants Top 10 List % Share of Industries (Note 1) of Top 100 Tenants (Note 2)

Leased Area % of Total Other Tenant Name Property (m2) Leased Area 15.2% Information & (Note 2) (Note 2) Schools Communication 2.7% 24.9% Jupiter Shop Channel Co., Ltd. Daiw a River Gate 6,211.30 1.8% Wholesale Tokio Marine & Nichido Anshin 3.2% Integral Tow er 6,058.41 1.7% Consulting Co., Ltd. Electric Device 3.7% Palsystem Consumers' LAQUAS Higashi Shinjuku 5,985.08 1.7% Insurance Co-operative Union 4.4% Not disclosed (Note 1) Daiw a Kayabacho 5,899.11 1.7% Foods 4.6％

Kirin Brewery Company, Ltd. Kirin Nihonbashi Building 5,630.17 1.6% Real Estate Services UCC Holdings Co., Ltd. Daiw a Onarimon 5,049.92 1.4% 4.6% 21.8% Construction Retail Trade 6.3% 8.0% Not disclosed (Note 1) Glass City Shibuya 4,659.25 1.3% (As of May 31, 2018)

Mitsubishi UFJ NICOS Co., Ltd. Daiw a Kitahama 4,515.35 1.3% (Note 1) The leased area of top 100 tenants covers 61.2% of total leased area as of the end of the 25th Fiscal Period (Note 2) Industries are categorized according to TSE’s 33 industry groups. (Note 3) The ratio is rounded down to the first decimal place Not disclosed (Note 1) Daiw a Kitahama 4,421.40 1.3%

Daiw a Nishi-Shinjuku/ TKP Corporation 4,197.87 1.2% CONCURRED Y okohama (Note 2)

Total 52,627.86 15.6%

(Note 1) Not disclosed due to tenant's request. (Note 2) Leased area of the tenants in CONCURRED Yokohama are described as the figure equivalent to 75/100, ownership % of the Investment Corporation. (Note 3) Rounded down to the first decimal place.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment. 45 Appraisal Value Compared to the Previous Fiscal Period (1) (Unit: Million Yen) Compared to Book Value at Appraisal Value Compared to End of 24th Period Book Value Cap Rate End of 25th Period Property Name Acquisition Price End of 24th Period End of 25th Period Difference Change End of 25th Period Difference Change End of 24th Period End of 25th Period Daiw a Ginza 17,200 17,400 +200 1.2% 13,064 +4,335 33.2% 14,100 3.5% 3.5% Daiw a Ginza Annex 3,840 3,840 - 0.0% 2,767 +1,072 38.7% 3,050 3.4% 3.5% Daiw a Shibaura 7,870 7,870 - 0.0% 8,014 -144 -1.8% 8,265 4.0% 4.0% Daiw a Minami Aoyama 4,640 4,640 - 0.0% 4,425 +214 4.8% 4,550 3.8% 3.8% Daiw a Sarugakucho 3,840 3,840 - 0.0% 3,194 +645 20.2% 3,190 4.4% 4.4% Daiw a A Hamamatsucho 3,560 3,610 +50 1.4% 2,777 +832 30.0% 2,865 3.7% 3.7% Daiw a Jingumae 2,460 2,460 - 0.0% 2,711 -251 -9.3% 2,800 3.8% 3.8% Daiw a Shibadaimon 3,090 3,110 +20 0.6% 2,398 +711 29.7% 2,578 3.6% 3.6% Daiw a Misakicho 2,850 2,860 +10 0.4% 2,151 +708 32.9% 2,346 3.9% 3.9% Daiw a Shimbashi 510 2,530 2,530 - 0.0% 2,141 +388 18.1% 2,080 4.0% 4.0% Daiw a Tsukijiekimae 1,880 2,000 +120 6.4% 1,289 +710 55.1% 1,560 4.2% 4.2% Daiw a Tsukiji 1,610 1,610 - 0.0% 1,141 +468 41.0% 1,240 4.1% 4.1% Daiw a Tsukishima 10,100 10,500 +400 4.0% 6,888 +3,611 52.4% 7,840 4.1% 4.1% Daiwa Nihonbashi Horidomecho 2,660 2,660 - 0.0% 2,465 +194 7.9% 2,520 4.0% 4.0% Daiw a Azabudai 1,930 1,930 - 0.0% 1,516 +413 27.3% 1,600 3.9% 3.9% Daiw a Kyobashi 3,490 3,450 -40 -1.1% 3,225 +224 6.9% 3,460 3.9% 4.0% Daiw a Kojimachi 4-chome 2,830 2,810 -20 -0.7% 2,846 -36 -1.3% 2,910 3.7% 3.7% Daiw a Onarimon 13,900 13,700 -200 -1.4% 13,348 +351 2.6% 13,860 3.7% 3.8% Shinjuku Maynds Tower (Note) 125,000 62,600 +100 0.2% 64,538 -1,938 -3.0% 66,900 3.2% 3.2% Daiw a SHIBUYA EDGE 5,190 5,190 - 0.0% 5,655 -465 -8.2% 5,900 3.7% 3.7% Daiw a Kodemmacho 2,260 2,260 - 0.0% 2,374 -114 -4.8% 2,460 4.2% 4.2% Daiw a Jimbocho 3,620 3,620 - 0.0% 4,003 -383 -9.6% 4,150 3.9% 3.9% Daiw a Nishishimbashi 6,520 6,570 +50 0.8% 4,735 +1,834 38.7% 5,000 3.5% 3.5% Daiw a Kayabacho Building 8,160 8,170 +10 0.1% 5,259 +2,910 55.3% 5,600 3.3% 3.3% Daiwa Jinbocho 3-chome 4,900 5,060 +160 3.3% 3,373 +1,686 50.0% 3,550 3.3% 3.3% E SPACE T OWER 33,400 33,500 +100 0.3% 23,610 +9,889 41.9% 24,000 3.4% 3.3% Daiwa Nihonbashi Hongokucho 2,470 2,560 +90 3.6% 1,592 +967 60.7% 1,721 3.9% 3.9% shinyon curumu 15,500 15,600 +100 0.6% 9,685 +5,914 61.1% 9,650 3.2% 3.2%

(Note) The appraisal value in the 24th Fiscal Period for Shinjuku Maynds Tower is indicated as co-ownership values equivalent to 6/7 of the total values for the building. The appraisal value in the 25th Fiscal Period is indicated as co-ownership values equivalent to 3/7 of the total values for the building. 3/7 of co-ownership interest is indicated in the acquisition price. As for the difference and change from the end of the 24th Fiscal Period, the portion sold in the 25th Fiscal Period has been adjusted.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment. 46 Appraisal Value Compared to the Previous Fiscal Period (2) (Unit: Million Yen) Compared to Book Value at Appraisal Value Compared to End of 24th Period Book Value Cap Rate End of 25th Period Property Name Acquisition Price End of 24th Period End of 25th Period Difference Change End of 25th Period Difference Change End of 24th Period End of 25th Period Daiw a Akasaka 13,700 14,000 +300 2.2% 9,422 +4,577 48.6% 9,200 3.2% 3.2% Daiw a Shibuya Miyamasuzaka 8,740 9,350 +610 7.0% 7,200 +2,149 29.8% 7,000 3.7% 3.6% Daiw a Azabu Terrace 16,100 16,600 +500 3.1% 14,080 +2,519 17.9% 14,000 3.9% 3.8% Daiw a Ebisu 4-chome 5,950 6,040 +90 1.5% 4,254 +1,785 42.0% 4,135 3.7% 3.7% LAQUAS Higashi Shinjuku 10,700 10,800 +100 0.9% 8,484 +2,315 27.3% 8,450 3.3% 3.3% Daiw a Aoyama 12,400 12,400 - 0.0% 10,031 +2,368 23.6% 9,800 3.2% 3.2% Shinsen Place 6,710 6,720 +10 0.1% 4,890 +1,829 37.4% 4,800 3.3% 3.3% Glass City Shibuya 18,300 18,300 - 0.0% 15,979 +2,320 14.5% 16,000 3.5% 3.5% Daiw a River Gate 30,200 30,900 +700 2.3% 28,001 +2,898 10.3% 28,000 4.1% 4.0% Daiw a Hatchobori ekimae 3,300 3,320 +20 0.6% 2,944 +375 12.8% 2,871 3.5% 3.5% Daiw a Hatchobori ekimae West 1,850 1,850 - 0.0% 1,726 +123 7.2% 1,647 3.6% 3.6% Daiw a Nishi-Shinjuku 15,500 15,800 +300 1.9% 13,947 +1,852 13.3% 13,710 3.3% 3.3% Kirin Nihonbashi Building 8,290 8,290 - 0.0% 8,278 +11 0.1% 8,180 4.0% 4.0% Daiwa Higashi-Nihonbashi 6,780 6,780 - 0.0% 6,339 +440 7.0% 6,370 3.9% 3.9% Square Daikanyama Building 2,600 2,620 +20 0.8% 2,383 +236 9.9% 2,280 3.4% 3.4% Shinjuku West Building 1,230 1,230 - 0.0% 981 +248 25.3% 942 3.7% 3.7% Daiw a Kanda Mikuracho 1,710 1,710 - 0.0% 1,601 +108 6.8% 1,592 4.0% 4.0% Daiw a Kanda East - 5,120 - - 4,249 +870 20.5% 4,200 - 3.9% Daiwa Higashi-Ikebukuro 3,880 4,050 +170 4.4% 2,661 +1,388 52.1% 2,958 4.1% 4.1% Daiw a Shinagaw a North 6,170 6,170 - 0.0% 7,169 -999 -13.9% 7,710 4.2% 4.2% Daiw a Osaki 3-chome 2,340 2,340 - 0.0% 1,605 +734 45.7% 1,650 3.8% 3.8% Daiw a Kamiooka 2,750 2,750 - 0.0% 1,911 +838 43.8% 2,000 4.5% 4.5% Integral Tower 19,700 20,500 +800 4.1% 15,917 +4,582 28.8% 15,220 3.7% 3.7% Daiwa Meguro Square 6,750 6,810 +60 0.9% 5,531 +1,278 23.1% 5,600 3.5% 3.5% Daiwa Ogikubo 4,490 4,540 +50 1.1% 3,989 +550 13.8% 3,800 3.9% 3.9% CONCURRED Yok oham a - 39,400 - - 38,315 +1,084 2.8% 38,100 - 4.3% Daiw a Kitahama 11,700 11,700 - 0.0% 9,276 +2,423 26.1% 9,481 3.8% 3.8% Total (Note) 527,130 506,040 +4,880 1.1% 432,377 +73,662 17.0% 439,441 - -

(Note) Difference and change in “Compared to End of 24th Period” do not include the impact of the properties acquired/sold in the 25th Period.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment. 47 Appraisal Value at End of Fiscal Period (1) (Unit: Million Yen) Summary of Appraisal Report (End of 25th Period) Appraisal Value at Property Name Direct Capitalization Method DCF Method End of 25th Period Integrated Value Value Cap Rate Value Discount Rate Terminal Cap Rate Daiw a Ginza 17,400 17,800 3.5% 17,000 3.3% 3.7% 17,900 Daiw a Ginza Annex 3,840 3,850 3.5% 3,820 3.3% 3.7% 4,640 Daiw a Shibaura 7,870 7,900 4.0% 7,850 3.8% 4.2% 6,650 Daiw a Minami Aoyama 4,640 4,700 3.8% 4,570 3.6% 4.0% 4,060 Daiw a Sarugakucho 3,840 3,890 4.4% 3,780 4.2% 4.6% 1,780 Daiw a A Hamamatsucho 3,610 3,670 3.7% 3,580 3.5% 3.9% 2,230 Daiw a Jingumae 2,460 2,500 3.8% 2,420 3.6% 4.0% 2,710 Daiw a Shibadaimon 3,110 3,180 3.6% 3,080 3.4% 3.8% 2,120 Daiw a Misakicho 2,860 2,900 3.9% 2,840 3.7% 4.1% 1,700 Daiw a Shimbashi 510 2,530 2,550 4.0% 2,500 3.8% 4.2% 2,170 Daiw a Tsukijiekimae 2,000 1,990 4.2% 2,010 4.2% 4.4% 1,910 Daiw a Tsukiji 1,610 1,610 4.1% 1,610 4.1% 4.3% 1,620 Daiw a Tsukishima 10,500 10,600 4.1% 10,400 3.8% 4.3% 5,510 Daiwa Nihonbashi Horidomecho 2,660 2,710 4.0% 2,600 3.8% 4.2% 1,600 Daiw a Azabudai 1,930 1,970 3.9% 1,890 3.7% 4.1% 1,270 Daiw a Kyobashi 3,450 3,500 4.0% 3,390 3.8% 4.2% 2,160 Daiw a Kojimachi 4-chome 2,810 2,830 3.7% 2,780 3.5% 3.9% 4,460 Daiw a Onarimon 13,700 14,000 3.8% 13,400 3.6% 4.0% 12,700 Shinjuku Maynds Tower (Note) 62,600 147,000 3.2% 144,000 3.0% 3.4% 117,000 Daiw a SHIBUYA EDGE 5,190 5,290 3.7% 5,090 3.5% 3.9% 3,630 Daiw a Kodemmacho 2,260 2,270 4.2% 2,240 4.0% 4.4% 1,100 Daiw a Jimbocho 3,620 3,690 3.9% 3,590 3.9% 4.1% 3,640 Daiw a Nishishimbashi 6,570 6,720 3.5% 6,510 3.3% 3.7% 4,590 Daiw a Kayabacho Building 8,170 8,320 3.3% 8,100 3.1% 3.5% 6,600 Daiwa Jinbocho 3-chome 5,060 5,190 3.3% 5,010 3.1% 3.5% 4,160 E SPACE T OWER 33,500 34,200 3.3% 32,700 3.1% 3.5% 34,200 Daiwa Nihonbashi Hongokucho 2,560 2,590 3.9% 2,550 3.7% 4.1% 1,680 shinyon curumu 15,600 15,900 3.2% 15,400 3.0% 3.4% 14,900

(Note) The appraisal value for Shinjuku Maynds Tower is indicated as co-ownership values equivalent to 3/7 of the total values for the building. The other figures are indicated as 7/7 of the total values.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Law or any regulation of similar nature, nor is it intended for the purposes of solicitation. Daiwa Office Investment Corporation advises readers to make investment decisions at their own judgment. 48 Appraisal Value at End of Fiscal Period (2) (Unit: Million Yen) Summary of Appraisal Report (End of 25th Period) Appraisal Value at Property Name Direct Capitalization Method DCF Method End of 25th Period Integrated Value Value Cap Rate Value Discount Rate Terminal Cap Rate Daiw a Akasaka 14,000 14,300 3.2% 13,900 3.0% 3.4% 13,100 Daiw a Shibuya Miyamasuzaka 9,350 9,490 3.6% 9,210 3.4% 3.8% 9,940 Daiw a Azabu Terrace 16,600 16,900 3.8% 16,300 3.6% 4.0% 16,500 Daiw a Ebisu 4-chome 6,040 5,960 3.7% 6,070 3.8% 3.9% 4,340 LAQUAS Higashi Shinjuku 10,800 11,100 3.3% 10,600 3.1% 3.5% 10,800 Daiw a Aoyama 12,400 12,700 3.2% 12,200 3.0% 3.4% 11,000 Shinsen Place 6,720 6,820 3.3% 6,670 3.2% 3.5% 4,260 Glass City Shibuya 18,300 18,400 3.5% 18,100 3.2% 3.6% 17,700 Daiw a River Gate 30,900 31,000 4.0% 30,700 3.7% 4.1% 29,600 Daiw a Hatchobori ekimae 3,320 3,450 3.5% 3,260 3.3% 3.7% 4,050 Daiw a Hatchobori ekimae West 1,850 1,920 3.6% 1,820 3.4% 3.8% 2,050 Daiw a Nishi-Shinjuku 15,800 16,400 3.3% 15,600 3.1% 3.5% 15,800 Kirin Nihonbashi Building 8,290 8,460 4.0% 8,120 3.7% 4.1% 7,710 Daiwa Higashi-Nihonbashi 6,780 6,950 3.9% 6,700 3.7% 4.1% 5,120 Square Daikanyama Building 2,620 2,650 3.4% 2,600 3.4% 3.6% 2,540 Shinjuku West Building 1,230 1,240 3.7% 1,220 3.5% 3.9% 950 Daiw a Kanda Mikuracho 1,710 1,740 4.0% 1,690 4.0% 4.2% 1,850 Daiw a Kanda East 5,120 5,140 3.9% 5,100 3.5% 3.9% 4,960 Daiwa Higashi-Ikebukuro 4,050 4,110 4.1% 4,030 3.9% 4.3% 2,240 Daiw a Shinagaw a North 6,170 6,270 4.2% 6,060 4.0% 4.4% 4,200 Daiw a Osaki 3-chome 2,340 2,370 3.8% 2,330 3.6% 4.0% 1,570 Daiw a Kamiooka 2,750 2,760 4.5% 2,740 4.3% 4.7% 2,280 Integral Tower 20,500 20,800 3.7% 20,400 3.5% 3.9% 13,400 Daiwa Meguro Square 6,810 6,970 3.5% 6,740 3.3% 3.7% 6,520 Daiwa Ogikubo 4,540 4,620 3.9% 4,500 3.7% 4.1% 3,120 CONCURRED Yok oham a 39,400 40,800 4.3% 38,800 4.1% 4.5% 33,400 Daiw a Kitahama 11,700 12,000 3.8% 11,600 3.6% 4.0% 13,800 Total 506,040 598,640 - 581,770 - - 511,490

(Billion Yen)

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

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

Property Name

Address Chiyoda-ku, Tokyo Minato-ku, Tokyo Chiyoda-ku, Tokyo Chuo-ku, Tokyo Chiyoda-ku, Tokyo Shibuya-ku, Tokyo Chuo-ku, Tokyo Shinagawa-ku, Tokyo Shibuya-ku, Tokyo

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

Japan Core Shining Nova Endeavor Realty Fund Two domestic industrial Seller ORIX JREIT Inc. Daiwa Property Co.. Ltd. Tokyu Land Corporation Tosei Corporation MCR Six GK Asset II Ltd. the Fifth B TMK Ltd. companies

December 3, 2012 Acquisition date March 10, 2010 August 13, 2010 September 2, 2010 March 25, 2011 March 29, 2011 July 8, 2011 May 11, 2012 September 18, 2012 April 12, 2013

Acquisition 15th Fiscal Period 16th Fiscal Period 17th Fiscal Period 18th Fiscal Period 19th Fiscal Period Period Daiwa Daiwa Daiwa Daiwa Daiwa Daiwa Daiwa Daiwa Shibuy a Integral Tower Meieki Kamiooka Shibuy a Dogenzaka Akasaka Azabu Terrace Kitahama Ebisu 4-chome Miy amasuzaka

Property Name

Address Nagoya-shi, Aichi Yokohama-shi, Kanagawa Shibuya-ku, Tokyo Minato-ku, Tokyo Shibuya-ku, Tokyo Suginami-ku, Tokyo Minato-ku, Tokyo Osaka-shi, Osaka Shibuya-ku, 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 purpose Domestic special purpose E Buildings Limited Ogikubo Building Azabu Green Domestic industrial Seller Shimizu Corporation Hakuba Capital 1 TMK GK North Beach company company Liability Company Y. K. Terrace GK company

Acquisition date February 1, 2013 March 1, 2013 July 3, 2013 August 9, 2013 September 27, 2013 May 29, 2014 July 4, 2014 August 1, 2014 December 1, 2014

Acquisition Period 19th Fiscal Period 20th Fiscal Period 21st Fiscal Period

LAQUAS Higashi Daiwa Daiwa Daiwa Daiwa Daiwa Kirin Shinsen Place Glass City Shibuya Daiwa River Gate Shinjuku Aoyama Meguro Square Hatchobori ekimae Hatchobori ekimae West Nishi-Shinjuku Building Nihonbashi Building

Property Name

Address Shinjuku-ku, Tokyo Shibuya-ku, Tokyo Shibuya-ku, Tokyo Shibuya-ku, Tokyo Meguro-ku, Tokyo Chuo-ku, Tokyo Chuo-ku, Tokyo Chuo-ku, Tokyo Shinjuku-ku, Tokyo Chuo-ku, 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 2,871 million yen 1,647 million yen 13,710 million yen 8,180 million yen

Higashi Shinjuku Building Domestic special Domestic special Domestic industrial Domestic industrial Kirin Beer Seller Glass City TMK Meguro Place TMK Temuzu TMK Oversea company TMK purpose company purpose company company company Marketing Co., Ltd.

Acquisition date December 3, 2014 March 2, 2015 March 2, 2015 May 1, 2015 May 1, 2015 June 2, 2015 September 11, 2015 September 11, 2015 March 29, 2016 May 26, 2015

Acquisition Period 22nd Fiscal Period 23rd Fiscal Period 25th Fiscal Period 26th Fiscal Period

Daiwa Higashi- Square Daikanyama Daiwa CONCURRED Daiwa Prime Kanda Kita-Shinagawa Shinjuku West Building Daiwa Ogikubo nihonbashi Building Kanda Mikuracho Yokohama Kanda East Building Gotenyama Building

Total Property Name

Address Chuo-ku, Tokyo Shibuya-ku, Tokyo Shinjuku-ku, Tokyo Suginami-ku, Tokyo Chiyoda-ku, Tokyo Yokohama-shi, Kanagawa Chiyoda-ku, Tokyo Chiyoda-ku, Tokyo Shinagawa-ku, Tokyo －

Acquisition Price 6,370 million yen 2,280 million yen 942 million yen 3,800 million yen 1,592 million yen 38,100 million yen 4,200 million yen 1,800 million yen 2,500 million yen 290,799 million yen

Domestic special purpose OH Real Estate GK Yokohama Office Seller Hulic Co., Ltd. GK TC1 GK TC1 Domestic company Domestic company Danke Holdings Co., Ltd. － company Management Co., Ltd. Management

Acquisition date June 1, 2016 June 29, 2016 July 21, 2016 July 21, 2016 December 21, 2016 January 11, 2018 January 12, 2018 June 7, 2018 September 13, 2018 －

(Note) The sum of ; i) the total (scheduled) acquisition price from the time of the above sponsor change up to September 13, 2018 and ii) prices for additional acquisition of existing properties or of the site in existing properties during the same period, is 291,219 million yen. “Ltd.” and “TMK” (Tokutei Mokuteki Kaisha) in sellers’ names refer to a limited liability company and special purpose company, respectively.

⃰ Scheduled acquisition date only for Kita-Shinagawa Gotenyama Building

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

Property Name

Acquisition Price (million yen) 14,100 3,050 8,265 4,550 3,190 2,865 2,800 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP Book Value (million yen) 13,134 13,064 2,776 2,767 8,040 8,014 4,437 4,425 3,210 3,194 2,791 2,777 2,719 2,711 Appraisal Value (million yen) 17,200 17,400 3,840 3,840 7,870 7,870 4,640 4,640 3,840 3,840 3,560 3,610 2,460 2,460 Occupancy Rate (% ) 89.3 95.0 100.0 100.0 99.1 99.1 100.0 84.8 100.0 100.0 100.0 100.0 100.0 100.0 PML (%) (Note 1) 4.53 4.53 3.97 3.97 3.82 3.82 9.19 9.19 7.14 7.14 3.79 3.79 13.33 13.33 Property Management Company Best Property Best Property Xymax Alpha Best Property Property Partners Best Property Best Property Number of operating days 183 182 183 182 183 182 183 182 183 182 183 182 183 182

(1) Property-related Rev enues (thousand yen) 370,118 380,455 87,031 94,457 238,130 259,169 131,445 137,607 - (Note 6) - (Note 6) 134,360 135,078 64,837 74,785

Rent (incl. common serv ice fees) 370,118 371,555 87,031 94,457 237,052 257,404 131,445 127,380 - (Note 6) - (Note 6) 134,360 135,078 64,837 74,785 (Note 2)

Other Rev enues (Note 3) 0 8,900 0 0 1,078 1,764 0 10,226 - (Note 6) - (Note 6) 0 0 0 0 (2) Property-related Expenses (thousand yen) 103,111 99,871 28,539 21,298 74,978 59,935 29,711 24,862 - (Note 6) - (Note 6) 58,023 59,477 19,065 15,682

Administrativ e Expenses 17,626 18,635 7,938 3,837 21,653 12,217 3,822 3,710 - (Note 6) - (Note 6) 8,336 8,298 5,717 2,858

Utility Charges 26,518 24,334 6,364 5,789 19,311 18,758 7,814 6,284 - (Note 6) - (Note 6) 8,694 8,566 4,843 4,690

Property Management Fee 5,681 5,446 1,275 1,467 3,572 3,931 2,031 2,154 - (Note 6) - (Note 6) 2,002 2,054 1,390 1,200

Tax and Public Due 27,915 27,911 9,106 9,104 19,599 19,588 11,931 11,931 - (Note 6) - (Note 6) 8,775 8,770 6,357 6,357

Non-life Insurance Costs 370 369 86 86 339 338 135 134 - (Note 6) - (Note 6) 158 157 73 73

Repair Expenses 13,157 11,331 3,767 1,013 10,501 5,080 3,975 646 - (Note 6) - (Note 6) 656 2,231 675 496

Other Expenses 11,841 11,841 0 0 0 20 0 0 - (Note 6) - (Note 6) 29,400 29,400 7 7 Profits from property-related activities (3) NOI (=(1)-(2)) (Note 4) (thousand yen) 267,007 280,584 58,492 73,158 163,151 199,234 101,734 112,745 67,383 45,607 76,337 75,600 45,772 59,102 Annualized NOI (thousand yen) 532,555 562,710 116,665 146,719 325,412 399,562 202,913 226,110 134,399 91,465 152,256 151,616 91,295 118,529 NOI Yield (Note 5) 4.1% 4.3% 4.2% 5.3% 4.0% 5.0% 4.6% 5.1% 4.2% 2.9% 5.5% 5.5% 3.4% 4.4% Depreciation and amortization (thousand yen) 74,422 74,864 10,264 10,300 28,842 29,682 14,041 14,273 - (Note 6) - (Note 6) 15,111 15,119 9,204 9,221

Repair Work (thousand yen) 0 8,900 0 0 167 271 0 0 - (Note 6) - (Note 6) 0 0 0 0

Proceeds from Amortization of Leasehold and (Reference) Security (thousand yen) 0 0 0 0 0 64 0 0 - (Note 6) - (Note 6) 0 0 0 0

Daiwa Shibadaimon Daiwa Misakicho Daiwa Shimbashi 510 Daiwa Tsukijiekimae Daiwa Tsukiji Daiwa Tsukishima Daiwa Nihonbashi Horidomecho

Property Name

Acquisition Price (million yen) 2,578 2,346 2,080 1,560 1,240 7,840 2,520 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP Book Value (million yen) 2,410 2,398 2,163 2,151 2,128 2,141 1,301 1,289 1,144 1,141 6,937 6,888 2,469 2,465 Appraisal Value (million yen) 3,090 3,110 2,850 2,860 2,530 2,530 1,880 2,000 1,610 1,610 10,100 10,500 2,660 2,660 Occupancy Rate (% ) 100.0 100.0 100.0 100.0 89.4 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 PML (%) (Note 1) 3.72 3.72 4.24 4.24 5.51 5.51 4.23 4.23 4.98 4.98 4.87 4.87 4.68 4.68 Property Management Company Best Property Best Property Property Partners MS Building Support Xymax Alpha Property Partners Best Property Number of operating days 183 182 183 182 183 182 183 182 183 182 183 182 183 182

(1) Property-related Rev enues (thousand yen) 86,875 86,155 - (Note 6) - (Note 6) 79,144 66,205 55,027 58,617 51,763 51,876 183,601 270,637 84,642 84,185

Rent (incl. common serv ice fees) 86,875 86,155 - (Note 6) - (Note 6) 79,144 66,205 55,027 58,617 51,463 51,726 183,601 270,637 84,642 84,185 (Note 2)

Other Rev enues (Note 3) 0 0 - (Note 6) - (Note 6) 0 0 0 0 300 150 0 0 0 0 (2) Property-related Expenses (thousand yen) 22,974 19,664 - (Note 6) - (Note 6) 18,581 27,439 17,226 15,330 10,451 11,367 42,213 43,106 18,137 17,520

Administrativ e Expenses 5,874 5,820 - (Note 6) - (Note 6) 3,817 5,413 4,590 3,071 2,371 2,342 8,492 8,186 4,126 3,841

Utility Charges 6,641 5,896 - (Note 6) - (Note 6) 6,415 5,039 6,164 5,853 2,764 2,849 14,088 14,277 5,192 4,967

Property Management Fee 1,302 1,294 - (Note 6) - (Note 6) 1,210 1,200 1,200 1,200 1,200 1,200 2,878 4,211 1,281 1,281

Tax and Public Due 6,254 6,254 - (Note 6) - (Note 6) 5,665 5,664 5,066 5,067 3,861 3,861 13,727 13,727 6,720 6,719

Non-life Insurance Costs 107 107 - (Note 6) - (Note 6) 110 109 86 86 56 55 257 256 117 116

Repair Expenses 2,793 291 - (Note 6) - (Note 6) 1,361 10,012 99 34 198 1,058 2,769 2,446 700 594

Other Expenses 0 0 - (Note 6) - (Note 6) 0 0 18 18 0 0 0 0 0 0 Profits from property-related activities (3) NOI (=(1)-(2)) (Note 4) (thousand yen) 63,900 66,491 63,514 63,005 60,563 38,765 37,801 43,287 41,312 40,508 141,387 227,530 66,504 66,664 Annualized NOI (thousand yen) 127,452 133,347 126,682 126,356 120,795 77,744 75,395 86,812 82,398 81,239 282,003 456,311 132,645 133,695 NOI Yield (Note 5) 5.3% 5.6% 5.9% 5.9% 5.7% 3.6% 5.8% 6.7% 7.2% 7.1% 4.1% 6.6% 5.4% 5.4%

Depreciation and amortization (thousand yen) 11,445 11,436 - (Note 6) - (Note 6) 8,421 8,570 13,127 13,141 7,359 7,452 57,448 57,484 14,718 15,032

Repair Work (thousand yen) 0 0 - (Note 6) - (Note 6) 0 0 0 0 0 0 0 0 0 0

Proceeds from Amortization of Leasehold and (Reference) Security (thousand yen) 0 0 - (Note 6) - (Note 6) 0 0 0 0 0 0 0 0 0 0

Shinjuku Maynds Tower Daiwa Azabudai Daiwa Kyobashi Daiwa Kojimachi 4-chome Daiwa Onarimon Daiwa SHIBUYA EDGE Daiwa Kodemmacho (Note 6)

Property Name

Acquisition Price (million yen) 1,600 3,460 2,910 13,860 133,800 66,900 5,900 2,460 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP Book Value (million yen) 1,515 1,516 3,244 3,225 2,843 2,846 13,369 13,348 129,391 64,538 5,672 5,655 2,383 2,374 Appraisal Value (million yen) 1,930 1,930 3,490 3,450 2,830 2,810 13,900 13,700 125,000 62,600 5,190 5,190 2,260 2,260 Occupancy Rate (% ) 100.0 100.0 87.9 100.0 100.0 100.0 100.0 100.0 96.6 99.8 100.0 100.0 100.0 100.0 PML (%) (Note 1) 6.64 6.64 4.51 4.51 6.19 6.19 3.89 3.89 2.03 2.03 1.56 1.56 4.19 4.19 Property Management Company Best Property Best Property Best Property Xymax Alpha Xymax Alpha Xymax Alpha Property Partners Number of operating days 183 182 183 182 183 182 183 182 183 182 183 182 183 182

(1) Property-related Rev enues (thousand yen) 56,083 56,444 81,539 92,251 93,504 86,137 353,113 355,219 2,574,643 1,861,881 127,518 126,961 65,113 64,968

Rent (incl. common serv ice fees) 56,083 55,571 81,539 92,251 93,504 86,137 353,113 355,219 2,566,311 1,861,818 127,518 126,961 65,113 64,968 (Note 2) Other Rev enues (Note 3) 0 872 0 0 0 0 0 0 8,331 62 0 0 0 0 (2) Property-related Expenses (thousand yen) 13,157 12,172 21,879 23,764 29,669 29,499 84,292 101,352 725,784 603,265 33,738 50,844 20,995 13,732

Administrativ e Expenses 2,820 2,454 5,088 7,063 5,044 5,483 13,853 12,671 144,229 110,808 5,013 5,223 3,048 2,841

Utility Charges 3,421 3,134 7,308 7,395 7,692 6,765 24,890 22,885 281,692 201,302 7,639 6,991 4,781 4,458

Property Management Fee 1,200 1,200 1,238 1,434 1,400 1,288 3,581 3,553 17,554 13,359 1,913 1,905 1,200 1,218

Tax and Public Due 4,916 4,916 7,111 7,110 14,946 14,946 34,925 34,925 253,488 253,508 7,227 7,226 3,642 3,642

Non-life Insurance Costs 66 65 114 112 127 126 356 355 3,242 2,399 93 92 83 82

Repair Expenses 733 402 1,018 596 458 889 6,685 26,961 18,691 20,068 11,851 29,404 7,415 666

Other Expenses 0 0 0 50 0 0 0 0 6,885 1,819 0 0 822 822 Profits from property-related activities (3) NOI (=(1)-(2)) (Note 4) (thousand yen) 42,925 44,271 59,660 68,487 63,835 56,638 268,821 253,866 1,848,859 1,258,615 93,780 76,117 44,118 51,235 Annualized NOI (thousand yen) 85,617 88,786 118,994 137,351 127,321 113,587 536,173 509,128 3,687,615 2,524,145 187,048 152,652 87,995 102,753 NOI Yield (Note 5) 5.6% 5.9% 3.7% 4.3% 4.5% 4.0% 4.0% 3.8% 2.8% 2.6% 3.3% 2.7% 3.7% 4.3% Depreciation and amortization (thousand yen) 8,900 9,173 19,995 20,027 12,832 13,137 31,287 31,529 395,550 299,952 16,424 16,598 9,477 9,731

Repair Work (thousand yen) 0 0 0 0 0 0 0 0 8,331 0 0 0 0 0

Proceeds from Amortization of Leasehold and (Reference) Security (thousand yen) 0 14 0 0 0 0 0 0 0 0 0 0 0 0

(Note 1) Sompo Risk Care Management Inc. has prepared the PML for the 25th fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2018). (Note 2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen. (Note 3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits. (Note 4) (3) NOI in this table is calculated by adjusting the Tax and Public Due for the “NOI (after deduction of gain on sale)”aforementioned in the Appendix “Major Financial Data” so the figures do not match. (Note 5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value. (Note 6) 3/7 of co-ownership interest was sold in 25th FP. The book value of Shinjuku Maynds Tower in (3) NOI Yield for 25th FP on the table is the weighted average of book value at the beginning of fiscal period and book value at the end of fiscal period.

Daiwa Jimbocho Daiwa Nishishimbashi Daiwa Kayabacho Building Daiwa Jinbocho 3-chome E SPACE TOWER Daiwa Nihonbashi Hongokucho shinyon curumu

Property Name

Acquisition Price (million yen) 4,150 5,000 5,600 3,550 24,000 1,721 9,650 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP Book Value (million yen) 4,024 4,003 4,767 4,735 5,287 5,259 3,393 3,373 23,589 23,610 1,604 1,592 9,706 9,685 Appraisal Value (million yen) 3,620 3,620 6,520 6,570 8,160 8,170 4,900 5,060 33,400 33,500 2,470 2,560 15,500 15,600 Occupancy Rate (% ) 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 92.8 100.0 100.0 100.0 99.5 99.5 PML (%) (Note 1) 5.05 5.05 3.76 3.76 4.50 4.50 5.33 5.33 3.11 3.11 3.80 3.80 4.44 4.44 Property Management Company Japan Property Solutions Xymax Alpha Property Partners Japan Property Solutions Xymax Alpha MS Building Support MS Building Support Number of operating days 183 182 183 182 183 182 183 182 183 182 183 182 183 182 (1) Property-related Rev enues (thousand yen) 107,066 106,977 174,153 174,861 - (Note 6) - (Note 6) 90,094 115,919 765,656 742,540 65,448 57,230 361,496 370,014 Rent (incl. common serv ice fees) 107,066 106,977 174,153 174,861 - (Note 6) - (Note 6) 90,094 104,483 765,656 742,540 64,018 57,230 361,496 370,014 (Note 2)

Other Rev enues (Note 3) 0 0 0 0 - (Note 6) - (Note 6) 0 11,436 0 0 1,429 0 0 0 (2) Property-related Expenses (thousand yen) 28,224 28,881 47,208 49,754 - (Note 6) - (Note 6) 30,922 25,693 175,538 177,177 14,430 13,681 92,922 80,147 Administrativ e Expenses 5,404 5,028 13,688 14,039 - (Note 6) - (Note 6) 10,382 8,125 43,816 53,691 5,067 4,382 25,430 18,745 Utility Charges 7,210 7,078 11,801 11,005 - (Note 6) - (Note 6) 7,039 6,459 55,081 46,049 3,220 3,171 23,270 21,963 Property Management Fee 1,200 1,200 2,303 2,311 - (Note 6) - (Note 6) 1,408 1,568 7,692 7,287 1,200 1,200 3,641 3,724 Tax and Public Due 10,898 10,898 15,751 15,750 - (Note 6) - (Note 6) 9,366 9,366 56,763 56,762 4,398 4,398 33,357 33,357 Non-life Insurance Costs 119 118 215 214 - (Note 6) - (Note 6) 111 109 574 565 65 67 278 280 Repair Expenses 3,351 4,297 3,447 6,432 - (Note 6) - (Note 6) 2,614 64 11,538 12,405 477 461 6,944 2,050 Other Expenses 40 260 0 0 - (Note 6) - (Note 6) 0 0 72 416 0 0 0 25 Profits from property-related activities (3) NOI (=(1)-(2)) (Note 4) (thousand yen) 78,842 78,096 126,945 125,106 148,273 148,621 59,171 90,225 590,117 565,363 51,018 43,548 268,573 289,866 Annualized NOI (thousand yen) 157,254 156,621 253,196 250,901 295,736 298,059 118,020 180,947 1,177,010 1,133,832 101,758 87,336 535,679 581,326 NOI Yield (Note 5) 3.9% 3.9% 5.3% 5.3% 5.6% 5.7% 3.5% 5.4% 5.0% 4.8% 6.3% 5.5% 5.5% 6.0% Depreciation and amortization (thousand yen) 21,058 21,069 34,707 34,985 - (Note 6) - (Note 6) 19,836 19,836 69,333 70,347 13,187 13,274 35,956 36,116 Repair Work (thousand yen) 0 0 0 0 - (Note 6) - (Note 6) 0 0 0 0 0 0 0 0

Proceeds from Amortization of Leasehold and (Reference) Security (thousand yen) 0 0 0 0 - (Note 6) - (Note 6) 0 0 0 0 0 0 0 0 (Note 1) Sompo Risk Care Management Inc. has prepared the PML for the 25th fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2018). (Note 2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen. (Note 3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits. (Note 4) (3) NOI in this table is calculated by adjusting the Tax and Public Due for the “NOI (after deduction of gain on sale)”aforementioned in the Appendix “Major Financial Data” so the figures do not match. (Note 5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value. (Note 6) Not disclosed due to tenant's request.

Daiw a Shibuy a LAQUAS Higashi Daiw a Akasaka Daiw a Azabu Terrace Daiw a Ebisu 4-chome Daiw a Aoy ama Shinsen Place Miyamasuzaka Shinjuku

Property Name

Acquisition Price (million yen) 9,200 7,000 14,000 4,135 8,450 9,800 4,800 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP Book Value (million yen) 9,400 9,422 7,221 7,200 14,114 14,080 4,266 4,254 8,516 8,484 10,051 10,031 4,904 4,890 Appraisal Value (million yen) 13,700 14,000 8,740 9,350 16,100 16,600 5,950 6,040 10,700 10,800 12,400 12,400 6,710 6,720 Occupancy Rate (% ) 91.4 100.0 100.0 100.0 99.6 99.6 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 PML (%) (Note 1) 7.14 7.14 5.64 5.64 2.67 2.67 2.44 2.44 4.46 4.46 4.42 4.42 6.21 6.21 Property Management Company Xymax Alpha Japan Property Solutions Best Property MS Building Support ITOCHU Urban Community MS Building Support MS Building Support Number of operating days 183 182 183 182 183 182 183 182 183 182 183 182 183 182

(1) Property-related Rev enues (thousand yen) 336,091 335,679 240,163 246,718 473,068 466,978 - (Note 6) - (Note 6) 226,954 226,481 212,474 248,326 - (Note 6) - (Note 6)

Rent (incl. common serv ice fees) 336,091 335,679 237,913 246,718 473,068 466,978 - (Note 6) - (Note 6) 226,954 226,481 212,474 248,326 - (Note 6) - (Note 6) (Note 2) Other Rev enues (Note 3) 0 0 2,250 0 0 0 - (Note 6) - (Note 6) 0 0 0 0 - (Note 6) - (Note 6) (2) Property-related Expenses (thousand yen) 115,332 110,522 67,217 59,715 117,700 109,925 - (Note 6) - (Note 6) 47,318 52,791 40,713 36,506 - (Note 6) - (Note 6)

Administrativ e Expenses 28,636 23,242 23,344 19,845 29,203 26,195 - (Note 6) - (Note 6) 9,983 15,654 18,038 9,182 - (Note 6) - (Note 6)

Utility Charges 42,131 32,037 15,597 13,896 48,639 45,773 - (Note 6) - (Note 6) 13,660 12,500 6,605 6,841 - (Note 6) - (Note 6)

Property Management Fee 3,654 3,763 2,907 2,951 4,191 4,212 - (Note 6) - (Note 6) 1,200 1,200 2,546 2,981 - (Note 6) - (Note 6)

Tax and Public Due 33,151 33,150 20,068 20,129 31,730 31,725 - (Note 6) - (Note 6) 20,334 20,334 12,742 12,710 - (Note 6) - (Note 6)

Non-life Insurance Costs 360 357 252 250 512 508 - (Note 6) - (Note 6) 264 262 132 129 - (Note 6) - (Note 6)

Repair Expenses 7,397 17,970 5,046 2,581 3,423 1,509 - (Note 6) - (Note 6) 1,717 2,613 648 4,661 - (Note 6) - (Note 6)

Other Expenses 0 0 0 60 0 0 - (Note 6) - (Note 6) 158 226 0 0 - (Note 6) - (Note 6) Profits from property-related activities (3) NOI (=(1)-(2)) (Note 4) (thousand yen) 220,758 225,156 172,946 187,002 355,367 357,053 55,547 -60,268 179,635 173,689 171,761 211,819 112,101 116,938 Annualized NOI (thousand yen) 440,311 451,550 344,947 375,032 708,793 716,068 110,791 -120,867 358,289 348,332 342,584 424,802 223,589 234,519 NOI Yield (Note 5) 4.7% 4.8% 4.8% 5.2% 5.0% 5.1% 2.6% -2.8% 4.2% 4.1% 3.4% 4.2% 4.6% 4.8% Depreciation and amortization (thousand yen) 26,194 27,350 21,964 22,500 50,977 51,314 - (Note 6) - (Note 6) 32,459 32,466 19,541 19,554 - (Note 6) - (Note 6)

Repair Work (thousand yen) 0 0 2,250 0 0 0 - (Note 6) - (Note 6) 0 0 0 0 - (Note 6) - (Note 6)

Proceeds from Amortization of Leasehold and (Reference) Security (thousand yen) 0 0 0 0 0 0 - (Note 6) - (Note 6) 0 0 0 0 - (Note 6) - (Note 6)

Glass City Shibuya Daiwa River Gate Daiwa Hatchobori ekimae Daiwa Hatchobori ekimae West Daiwa Nishi-Shinjuku Building Kirin Nihonbashi Building Daiwa Higashi-nihonbashi Building

Property Name

Acquisition Price (million yen) 16,000 28,000 2,871 1,647 13,710 8,180 6,370 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP Book Value (million yen) 16,012 15,979 28,113 28,001 2,954 2,944 1,730 1,726 13,957 13,947 8,299 8,278 6,363 6,339 Appraisal Value (million yen) 18,300 18,300 30,200 30,900 3,300 3,320 1,850 1,850 15,500 15,800 8,290 8,290 6,780 6,780 Occupancy Rate (% ) 100.0 100.0 98.1 99.4 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 PML (%) (Note 1) 1.61 1.61 1.76 1.76 5.89 5.89 7.03 7.03 4.32 4.32 5.76 5.76 4.37 4.37 Property Management Company Xymax Alpha Best Property ITOCHU Urban Community ITOCHU Urban Community MS Building Support Japan Property Solutions ITOCHU Urban Community Number of operating days 183 182 183 182 183 182 183 182 183 182 183 182 183 182

(1) Property-related Rev enues (thousand yen) 397,641 419,281 913,419 1,038,944 76,957 80,096 46,545 46,583 324,970 335,754 - (Note 6) - (Note 6) 167,565 170,674

Rent (incl. common serv ice fees) 397,641 419,281 909,946 1,035,249 76,957 80,096 46,545 46,583 324,970 335,754 - (Note 6) - (Note 6) 167,565 170,674 (Note 2)

Other Rev enues (Note 3) 0 0 3,473 3,695 0 0 0 0 0 0 - (Note 6) - (Note 6) 0 0 (2) Property-related Expenses (thousand yen) 80,694 116,475 385,178 323,792 28,033 23,716 11,676 11,753 76,564 70,635 - (Note 6) - (Note 6) 33,371 33,366

Administrativ e Expenses 15,176 11,808 80,715 73,288 8,407 6,618 3,250 3,351 15,565 13,373 - (Note 6) - (Note 6) 5,931 9,962

Utility Charges 26,193 23,238 118,875 119,803 6,457 5,560 2,846 2,804 18,649 16,847 - (Note 6) - (Note 6) 9,966 9,309

Property Management Fee 4,605 4,397 9,061 10,587 1,200 1,200 1,200 1,200 2,309 2,343 - (Note 6) - (Note 6) 1,675 1,715

Tax and Public Due 27,190 27,191 103,867 103,867 8,980 8,979 4,025 4,025 35,320 35,320 - (Note 6) - (Note 6) 11,337 11,337

Non-life Insurance Costs 316 313 1,537 1,517 110 109 57 56 266 267 - (Note 6) - (Note 6) 179 178

Repair Expenses 7,211 49,525 71,120 14,606 2,878 1,248 296 315 4,452 2,483 - (Note 6) - (Note 6) 4,281 863

Other Expenses 0 0 0 120 0 0 0 0 0 0 - (Note 6) - (Note 6) 0 0 Profits from property-related activities (3) NOI (=(1)-(2)) (Note 4) (thousand yen) 316,947 302,805 528,241 715,152 48,923 56,379 34,868 34,829 248,405 265,119 160,691 108,940 134,193 137,308 Annualized NOI (thousand yen) 632,162 607,274 1,053,596 1,434,234 97,580 113,068 69,547 69,850 495,454 531,694 320,504 218,479 267,653 275,371 NOI Yield (Note 5) 3.9% 3.8% 3.7% 5.1% 3.3% 3.8% 4.0% 4.0% 3.5% 3.8% 3.9% 2.6% 4.2% 4.3% Depreciation and amortization (thousand yen) 32,986 33,054 163,993 166,152 10,216 10,310 5,247 5,239 18,371 18,359 - (Note 6) - (Note 6) 25,123 25,126

Repair Work (thousand yen) 0 0 578 705 0 0 0 0 0 0 - (Note 6) - (Note 6) 0 0

Proceeds from Amortization of Leasehold and (Reference) Security (thousand yen) 0 0 550 222 0 0 0 0 0 0 - (Note 6) - (Note 6) 0 0

Square Daikanyama Building Shinjuku West Building Daiwa Kanda Mikuracho Building Daiwa Kanda East Daiwa Higashi-Ikebukuro Daiwa Shinagawa North Daiwa Osaki 3-chome

Property Name

Acquisition Price (million yen) 2,280 942 1,592 4,200 2,958 7,710 1,650 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP Book Value (million yen) 2,389 2,383 983 981 1,604 1,601 - 4,249 2,679 2,661 7,185 7,169 1,617 1,605 Appraisal Value (million yen) 2,600 2,620 1,230 1,230 1,710 1,710 - 5,120 3,880 4,050 6,170 6,170 2,340 2,340 Occupancy Rate (% ) 100.0 100.0 100.0 100.0 100.0 100.0 - 91.8 100.0 100.0 100.0 100.0 100.0 100.0 PML (%) (Note 1) 6.21 6.21 8.28 8.28 6.01 6.01 - 3.86 3.55 3.55 7.19 7.19 6.14 6.14 Property Management Company Xymax Alpha ITOCHU Urban Community Best Property ITOCHU Urban Community Best Property Best Property Xymax Alpha Number of operating days 183 182 183 182 183 182 - 140 183 182 183 182 183 182

(1) Property-related Rev enues (thousand yen) - (Note 6) - (Note 6) 37,990 38,098 24,954 46,530 - 89,922 119,909 127,028 194,598 191,154 65,526 65,424

Rent (incl. common serv ice fees) - (Note 6) - (Note 6) 37,990 38,098 24,954 46,530 - 87,622 119,909 127,028 194,598 191,154 65,526 65,424 (Note 2)

Other Rev enues (Note 3) - (Note 6) - (Note 6) 0 0 0 0 - 2,300 0 0 0 0 0 0 (2) Property-related Expenses (thousand yen) - (Note 6) - (Note 6) 11,415 31,239 18,205 11,441 - 16,388 37,239 37,117 52,600 51,842 11,198 11,295

Administrativ e Expenses - (Note 6) - (Note 6) 2,075 2,004 8,736 4,463 - 7,585 12,124 9,159 12,922 14,667 2,716 2,512

Utility Charges - (Note 6) - (Note 6) 2,779 2,467 1,808 2,109 - 5,514 12,445 13,246 15,692 14,418 3,243 3,122

Property Management Fee - (Note 6) - (Note 6) 1,200 1,200 1,200 1,200 - 995 1,777 1,938 2,918 2,876 1,200 1,200

Tax and Public Due - (Note 6) - (Note 6) 3,113 3,113 3,370 3,373 - 8 8,580 8,580 18,327 18,327 3,922 3,922

Non-life Insurance Costs - (Note 6) - (Note 6) 37 36 48 47 - 99 189 188 292 290 58 58

Repair Expenses - (Note 6) - (Note 6) 2,198 22,417 2,812 248 - 2,185 2,121 4,003 2,446 1,261 57 480

Other Expenses - (Note 6) - (Note 6) 12 0 228 0 - 0 0 0 0 0 0 0 Profits from property-related activities (3) NOI (=(1)-(2)) (Note 4) (thousand yen) 44,110 49,681 26,574 6,859 6,748 35,089 - 73,533 82,670 89,911 141,998 139,312 54,327 54,128 Annualized NOI (thousand yen) 87,979 99,635 53,004 13,756 13,460 70,371 - 191,712 164,888 180,316 283,220 279,389 108,358 108,554 NOI Yield (Note 5) 3.7% 4.2% 5.4% 1.4% 0.8% 4.4% - 4.5% 6.2% 6.8% 3.9% 3.9% 6.7% 6.8% Depreciation and amortization (thousand yen) - (Note 6) - (Note 6) 2,185 2,248 4,935 4,952 - 13,478 23,721 23,837 34,622 34,937 11,401 11,408

Repair Work (thousand yen) - (Note 6) - (Note 6) 0 0 0 0 - 0 0 0 0 0 0 0

Proceeds from Amortization of Leasehold and (Reference) Security (thousand yen) - (Note 6) - (Note 6) 0 0 0 0 - 0 0 0 0 0 0 0

Daiwa Kamiooka Integral Tower Daiwa Meguro Square Daiwa Ogikubo CONCURRED Yokohama Daiwa Meieki (Note 6) Daiwa Kitahama

Total (Note 7) Property Name

Acquisition Price (million yen) 2,000 15,220 5,600 3,800 38,100 5,300 9,481 469,341 439,441 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP 24th FP 25th FP Book Value (million yen) 1,930 1,911 14,898 15,917 5,553 5,531 4,001 3,989 - 38,315 5,222 - 9,321 9,276 459,753 432,377 Appraisal Value (million yen) 2,750 2,750 19,700 20,500 6,750 6,810 4,490 4,540 - 39,400 7,990 - 11,700 11,700 527,130 506,040 Occupancy Rate (% ) 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 - 93.2 97.0 - 100.0 100.0 98.2 99.0 PML (%) (Note 1) 6.29 6.29 1.18 1.18 1.68 1.68 6.41 6.41 - 0.92 10.31 - 3.48 3.48 2.06 1.96 Property Management Company Xymax Alpha Xymax Alpha Xymax Alpha ITOCHU Urban Community Jones Lang LaSalle Xymax Alpha Japan Property Solutions Number of operating days 183 182 183 182 183 182 183 182 - 141 183 19 183 182 183 182

(1) Property-related Rev enues (thousand yen) 92,232 93,325 604,576 592,062 152,041 148,235 124,931 120,889 - 735,742 254,455 26,729 339,071 310,496 12,735,226 12,910,074

Rent (incl. common serv ice fees) 92,232 93,325 604,576 592,062 152,041 148,235 124,931 120,889 - 735,742 254,455 24,729 339,071 310,496 12,718,363 12,868,665 (Note 2)

Other Rev enues (Note 3) 0 0 0 0 0 0 0 0 - 0 0 2,000 0 0 16,863 41,409 (2) Property-related Expenses (thousand yen) 19,734 20,646 189,584 257,037 34,943 33,807 24,944 26,073 - 110,876 65,597 27,465 101,399 99,622 3,507,492 3,635,334

Administrativ e Expenses 4,453 4,467 52,144 51,298 8,219 9,697 8,464 9,407 - 53,381 19,195 2,914 24,749 28,315 827,125 817,951

Utility Charges 7,601 7,981 76,772 71,746 8,753 7,948 6,167 5,752 - 47,026 16,623 3,531 35,600 29,902 1,095,647 998,451

Property Management Fee 1,203 1,213 6,650 6,573 1,938 1,849 1,373 1,548 - 4,389 3,050 336 5,051 4,703 141,924 144,270

Tax and Public Due 6,284 6,283 44,426 44,423 13,524 13,523 7,773 7,772 - 1 20,169 18,840 32,771 32,770 1,110,288 1,108,572

Non-life Insurance Costs 101 100 746 743 148 147 127 126 - 594 327 34 497 492 14,770 14,249

Repair Expenses 89 600 8,664 81,822 2,359 640 1,037 1,466 - 5,132 6,225 1,808 2,634 3,340 267,966 505,704

Other Expenses 0 0 180 430 0 0 0 0 - 350 7 0 96 96 49,769 46,134 Profits from property-related activities (3) NOI (=(1)-(2)) (Note 4) (thousand yen) 72,498 72,678 414,992 335,025 117,098 114,427 99,987 94,816 - 624,866 188,857 -736 237,671 210,874 9,227,733 9,274,739 Annualized NOI (thousand yen) 144,600 145,756 827,716 671,891 233,556 229,483 199,428 190,153 - 1,617,561 376,682 - 474,045 422,907 18,405,042 19,010,552 NOI Yield (Note 5) 7.5% 7.6% 5.6% 4.2% 4.2% 4.1% 5.0% 4.8% - 4.2% 7.2% - 5.1% 4.6% 4.0% 4.1% Depreciation and amortization (thousand yen) 18,065 18,065 72,973 86,729 22,706 22,790 12,817 12,881 - 93,310 35,583 5,949 53,676 53,881 1,768,826 1,772,039

Repair Work (thousand yen) 0 0 0 0 0 0 0 0 - 0 0 2,000 0 0 11,327 11,876

Proceeds from Amortization of Leasehold and (Reference) Security (thousand yen) 0 0 0 0 0 0 0 0 - 0 0 0 0 0 550 301

(Note 1) Sompo Risk Care Management Inc. has prepared the PML for the 25th fiscal period. The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 2018). (Note 2) For profits from property-related activities, actual results are used and displayed by rounding down to the nearest thousand yen. (Note 3) Other Revenues includes Proceeds for Restoration and Repair Work or Proceeds from Amortization of Leasehold and Security Deposits. (Note 4) (3) NOI in this table is calculated by adjusting the Tax and Public Due for the “NOI (after deduction of gain on sale)”aforementioned in the Appendix “Major Financial Data” so the figures do not match. (Note 5) NOI Yield is calculated by dividing annualized NOI in (3) on the table by the book value at the end of fiscal period (weighted average of book value at the beginning of fiscal period and the book value at the end of fiscal period for Shinjuku Maynds Tower in the 25th fiscal period). (Note 6) Properties sold in 25th FP (Note 7) Annualized NOI and NOI yield for the 25th fiscal period do not include 3/7 of co-ownership interest in Shinjuku Maynds Tower and Daiwa Meieiki Building sold in the 25th fiscal period. The portfolio total of (2) Property-related Expenses in the table does not include expenses related to the Investment Corporation.

Company Overview Directors (As of July 1, 2018) (As of July 1, 2018)

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 Director Yuji Shinotsuka Vice President and Representative Director Yoshiki Nishigaki Established October 21, 2004 Executive Managing Director Toshio Fukushima Paid-in Capital 200 million yen Director Hajime Imbe Representative Director Akira Yamanouchi Director (non-executive) Mikita Komatsu Executive directors: 5 Director (non-executive) Executive auditors: 1 Naoya Otani Board of Directors 10 Non-executive directors: 2 Auditor Tamaki Shibayama Non-executive auditors: 2 Auditor (non-executive) Masamori Matsuda No. of Employees 71 (excluding dispatched employees) Auditor (non-executive) Shinji Kiso Registration No. 355 (Financial Instruments), Registered Financial Director-General, Kanto Local Finance Bureau Instruments Firm (Kinsho) REITs which Entrust Asset Management Building Lots and Buildings License No. (3)-83920, Governor of Tokyo Transaction Business License to the Asset Management Company (As of July 1, 2018) Discretionary Agent for Real License No. 34, Minister of Land, Infrastructure, Estate Transaction Approval Transport and Tourism Daiwa Office Listed REIT focusing on office buildings Investment Asset size: approximately 441.2 billion yen (56 properties) Member of The Investment Trusts Association, Corporation Japan Daiwa Residential Unlisted REIT focusing on residential properties Member of Japan Investment Advisers Private Investment Association Membership Association Corporation Asset size: approximately 110.0 billion yen (71 properties) Member of Type II Financial Instruments Firms Nippon Healthcare Japan’s first listed REIT focusing on healthcare facilities Association Investment Corporation Asset size: approximately 19.3 billion yen (22 properties)

Daiwa Hotel Private Private REIT focusing on hotels Investment Corporation Asset size: approximately 9.2 billion yen (3 properties)

Organization Chart

Shareholders’ Meeting

Corporate Auditors

Board of Directors

Compliance Committee Compliance Officer Investment Committee(*)

* Set up separately for each President and investment corporation Representative Director

Internal Control Office

Acquisition and Asset Private Fund Division Corporate Division Management Division

Asset Private Fund Customer Corporate Acquisition Origination Finance Administration Management Management Relations Planning Department Department Department Department Department Department Department Department

Office Investment Team Office Management Team Finance Team

Residential Investment Team Residential Management Team Accounting Team

Healthcare Investment Team Healthcare Management Team Management Team

Hotel Investment Team Hotel Management Team

Investment Planning Team

Construction Management Team

 Aims to respond to the changes in management environment and expand assets under management as well as investment fields to infrastructure, logistics, hotel and overseas Management environment Expansion of assets under management meeting various needs surrounding investors

Internal and external growth of REITs under management, etc. Difficulty in management • • Considering investments in overseas assets and Debt Expansion and diversification • Expanding new fields such as infrastructure, logistics and investment due to low interest rate of assets under management hotel • Capturing significant growth opportunity through M&A, etc.

• Diversification of securitization scheme (overseas investment, Development of a new fund • Fund procurement utilizing FinTech in progress such as cloud Diversification of investor needs products for individuals) funding procurement method • Strengthening of base through collaboration and partnership

Office 2009 441.2 billion yen

2012 110.0 billion yen

Residential 2014 225.5 billion yen

2018 81.5 billion yen*1

Healthcare 2014 19.3 billion yen

2016 69.0 billion yen*2 Industrial infrastructure, energy, etc. 2016 Private real estate fund 11.0 billion yen Expansion of targeted assets under management Hotel 2018 9.2 billion yen

*1 Sub-sponsor Making consideration for formation of real estate financial instruments backed by overseas real estate *2 Amount of investment commitment Overseas (also considering alliance with a local leading real estate AM company) (not included in real estate AUM)

Real Estate AUM of Daiwa Securities Group 897.9 billion yen (including sub-sponsor) Real Estate AUM of Daiwa Real 590.8 billion yen (as of July 19, 2018)