Fiscal Period Business Report Th (Statement of Financial Performance) 14 June 1, 2012 ~ November 30, 2012

Fiscal Period Business Report th (Statement of Financial Performance) 14 June 1, 2012 ~ November 30, 2012

The Daiwa Ofﬁce Investment Corporation logo has been created. The logo symbolizes hospitality with an open door and the desire to be a bright and open investment corporation. We will continue to aim to be a highly-transparent investment corporation that is further cherished and trusted by our investors and tenants.

6-2-1 Ginza, Chuo Ward, Tokyo http://www.daiwa-of ce.co.jp/en/ I. Overview of Daiwa Office Investment Corporation Toward a New Stage of Growth

Daiwa Office Investment Corporation (DOI) has focused on recovering the occupancy rates of existing properties during the 14th Fiscal Period, and as a result the occupancy rates have been steadily recovering. Due to this, we believe that the environment of DOI is becoming such that we can begin taking on new challenges. Therefore, we will challenge to grow our portfolio by daringly acquiring low-occupancy properties and suburban properties and then improving their performance.

Honshu Meieki Building shinyon curumu Kamiooka Eye Mark Building

Contents

I. Overview of Daiwa Office Investment Corporation II. Asset Management Report………………………… 17 Characteristics and Strategies of Daiwa Office Investment Corporation ………………………… 3 III. Balance Sheets… …………………………………… 22

To Our Investors……………………………………………… 4 IV. Statements of Income……………………………… 24 Financial and Management Highlights………………………… 5 V. Statements of Changes in Unitholders’ Equity …… 25 Overview of Portfolio (portfolio distribution)…………………… 6

Internal Growth Measures… ………………………………… 8 VI. Notes to Financial Statements…………………… 26

External Growth Measures………………………………… 10 VII. Independent Auditors’ Report…………………… 36 Overview of Portfolio (portfolio list)………………………… 14 VIII. Statements of Cash Flows [Information Only]…… 37 Financial Conditions… …………………………………… 15

Description of Asset Manager……………………………… 16 IX. Investor Information… ……………………………… 38

2 Characteristics and Strategies of Daiwa Office Investment Corporation

3 Characteristics of Daiwa Office Investment Corporation Office Specialized REIT focused on the Five Portfolio comprised of REIT Central Wards of Tokyo A Class and B Class buildings Effective application of operational know- Places priority on owning office buildings Operates Shinjuku Maynds Tower at the how specialized in office buildings in favorable locations for which there is core and blue-chip medium-sized office high demand buildings

Office buildings 100.0% Major Regional Cities 1.5% Five Central A Class buildings Greater Tokyo Wards of Tokyo (Shinjuku Maynds Tower) 6.6% 91.8% 42.5%

B Class buildings Based on acquisition price 57.5% Based on acquisition price

(Note) Please note that the percentages in the above graphs are as of November 30, 2012.

Growth Strategies 350.0 Activities for solid growth (billion yen) Proactive investment in 350 ・Continue acquiring Achievement of a 350 billion yen asset size selectively chosen properties competitive properties

・Leverage borrowing Keep the medium-to-long term, upper-limit 313.2 314.9 capacity LTV target range within 40%~50% 311.3

300 287.3 278.1 Establishment of stable revenue base ・Property management Continuation of “Bonji-Tettei” activities Improve occupancy rate and increase rent revenue 250 Further strengthen relations with tenants ・Maintain and Capture tenant needs by reinforcing ties with improve property property managers value Strategic renewals and lease-up activities ・Financial activities Reduce risk of rising interests by extending borrowing periods and increase the ratio of 200 Fiscal period Fiscal period Fiscal period Fiscal period Fiscal period Acquisition borrowings with ﬁxed interest rates ended ended ended ended ended target November 2010 May 2011 November 2011 May 2012 November 2012

Distribution per Unit 14th Fiscal Period yen (actual) (fiscal period ended November 2012) 5,986

(Note) The forecasts on distribution are 3500 calculated based on certain assumptions and may vary due to 15th Fiscal Period yen (forecast) changes in the status and other (fiscal period ending May 2013) 6,250 factors. Moreover, the forecasts set forth herein should not be

construed as a guarantee of 16th Fiscal Period yen (forecast) 6,5503000 distribution amounts. (fiscal period ending November 2013)

I. Overview of Daiwa Office Investment Corporation 3

2500

2000 To Our Investors

Toward Further Growth

We would like to express our deep gratitude to all our unitholders for your support of Daiwa Office Investment Corporation (DOI).

I am Nobuaki Omura, the Executive Director elected at the 7th General Meeting of Unitholders held on August 20, 2012. I humbly ask for your support as we make efforts in furthering the growth of DOI.

In the 14th Fiscal Period, DOI posted operating revenues of 7,566 million yen and operating income of 3,146 million yen. Our distribution per unit for the 14th Fiscal Period is 5,986 yen, an increase by 879 yen from the 13th Fiscal Period.

The office building leasing market had been experiencing a continually severe environment due to the large supply in central Tokyo during 2012. However, trends of improvements in the vacancy rates and rents could be seen starting with highly competitive properties in the second half of 2012. In terms of DOI’s existing properties, there have been an increasing number of inquiries regarding new moving-in and space expansion at Shinjuku Maynds Tower and E SPACE TOWER. We have also worked to improve the occupancy rates of other existing properties at an early stage to avoid secondary vacancies, and the occupancy rate as of the end of the 14th Fiscal Period significantly exceeded initial forecasts at 96.4%.

During the 14th Fiscal Period we acquired West Park Osaki in September 2012 for 1,650 million yen. Though relatively small, we believe the property is excellent due to a lack of competitive properties nearby and partner and group companies, etc. of major companies with headquarters in the Osaki area have strong needs for offices there. Also, three properties are scheduled for acquisition in the 15th Fiscal Period with a total acquisition price of 16,950 million yen. These properties are shinyon curumu (9,650 million yen), Honshu Meieki Building (5,300 million yen) and Kamiooka Eye Mark Building (2,000 million yen). Unlike our previous property acquisitions, these include properties with low occupancy and properties outside Tokyo. However, all properties are relatively new and close to train stations. In addition to the fact that office needs are strong, we believe that we were able to acquire properties in areas where growth can be expected through large-scale developments and such. Following these acquisitions, we will work to improve the performance of these properties, thereby leading to improvement of the entire portfolio.

In financial matters, we will aim to reduce the risk of rising interest rates by increasing the ratio of borrowings with fixed interest rates and reducing financial costs while also extending our borrowings.

As we were able to bring the occupancy rate up to over 96% during the 14th Fiscal Period, our leasing capabilities have become very solid. As such, we will be able to rise to the next stage of growth as we take on the challenge of acquiring low- occupancy properties and improving their performance.

We wish for the continued success of our unitholders and ask for your continued support of DOI.

Nobuaki Omura Executive Director of Daiwa Office Investment Corporation

4 Financial and Management Highlights

Steady increase of distributions even in a severe office market environment

■ Operating Revenues ■ Operating Income (million yen) (million yen) 10,000 4,000

7,500 3,000 3,317 7,606 7,566 3,090 3,147 7,431 2,824 6,424 6,759 5,000 2,000 2,482

2,500 1,000

0 0 10th Period 11th Period 12th Period 13th Period 14th Period 10th Period 11th Period 12th Period 13th Period 14th Period

■ Net Income ■ Distribution Per Unit (million yen) (yen) 2,500 6,000 5,986 2,369 2,000 5,107 2,021 4,000 4,464 1,500 1,767 1,453 3,671 3,240 1,000 1,282 2,000

500

0 0 10th Period 11th Period 12th Period 13th Period 14th Period 10th Period 11th Period 12th Period 13th Period 14th Period

■ Asset Size ■ Period End Occupancy Rate (billion yen) (%) 350 100 95.9 96.4 95.4 94.3 92.4 300 311.3 313.2 314.9 90

287.3 278.1 250 80

200 70 10th Period 11th Period 12th Period 13th Period 14th Period 10th Period 11th Period 12th Period 13th Period 14th Period

14th Period 13th Period 12th Period 11th Period 10th Period (November 2012) (May 2012) (November 2011) (May 2011) (November 2010) Operating revenues (million yen) 7,566 7,431 7,606 6,759 6,424 Operating income (million yen) 3,147 3,090 3,317 2,824 2,482 Ordinary income (million yen) 2,365 2,022 1,767 1,587 1,273 Net income (million yen) 2,369 2,021 1,767 1,453 1,282 10000 Total number of units issued (units) 395,798 395,798 395,798 4000 395,798 395,798 Net assets per unit (yen) 508,132 507,331 506,693 505,900 505,469 Distribution per unit (yen) 5,986 5,107 4,464 3,671 3,240 Total assets (million yen) 325,665 325,315 323,217 298,626 294,562 Loan-to-value (LTV) 34.4 34.2 34.0 28.9 28.1 (based on total asset value) (%) Number of investment properties 38 37 36 35 33 Asset size (billion yen) 314.9 313.2 311.3 287.3 278.1 Total rentable area (m2) 208,733.38 207,277.34 205,318.62 191,346.43 182,548.82 Occupancy rate (%) 96.4 94.3 92.4 95.4 95.9

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

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

34 Daiwa Higashi-Ikebukuro 2 Daiwa Ginza Annex 11 BPS SQUARE 12 Daiwa Tsukiji 13 Daiwa Tsukiji 616 14 Daiwa Tsukishima

34 Ikebukuro Sta.

Toshima-ku

15 Nihombashi MS Bldg. 18 Daiwa Nihombashi Honcho 19 Daiwa Ginza 1-chome 20 Daiwa Kyobashi 25 Daiwa Kodenmacho 1 Daiwa Ginza 23 Shinjuku Maynds Tower 31 E SPACE TOWER

Tokyo Skytree

Tokyo Dome

Tokyo 9 5 Akihabara Sta. Kinshicho Sta. 29 Daiwa Kayabacho Building 32 Nihonbashi Hongokucho Tosei Bldg. 7 Daiwa Jingumae 17 Daiwa Shibuya SS 24 SHIBUYA EDGE Metropolitan Shinjuku-ku Government 30 26 Buildings 28 33

Shinjuku Sta. Chiyoda-ku 32 25 15 23 18 Yotsuya Sta. Imperial Palace 35 21 Koto-ku Tokyo Sta. 29 Chuo-ku National 20 38 19 Shibuya-ku 7 Diet Building 2 33 Daiwa Kinshicho 1 11 4 12 27 Shimbashi Sta. 13 38 Daiwa Minami-Semba 35 Benex S-3 10 24 22 14 17 16 6 31 Shibuya Sta. Tokyo Tower 8

JR Yamanote Line Minato-ku JR Saikyo Line 3 JR Chuo Line JR Sobu Line

JR Yokosuka Line and Rainbow Bridge 3 Daiwa Shibaura 4 Daiwa Minami-Aoyama 6 Daiwa A Hamamatsucho 8 Daiwa Shibadaimon Sobu Rapid Line 5 Daiwa Sarugakucho 9 Daiwa Misakicho 21 Sunline Building No. 7 Expressway

Main investment area: Five Central Wards of Tokyo Shinagawa Sta. Focused investment area: Greater Tokyo 36 Major Regional Cities Shinagawa-ku 10 Daiwa Shimbashi 510 16 Daiwa Azabudai 22 Daiwa Onarimon 27 Daiwa Nishi-Shimbashi 36 Daiwa Shinagawa North 37 West Park Osaki 26 Daiwa Jimbocho 28 Daiwa Kudan 30 Jimbocho Place 37

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

(as of November 30, 2012)

34 Daiwa Higashi-Ikebukuro 2 Daiwa Ginza Annex 11 BPS SQUARE 12 Daiwa Tsukiji 13 Daiwa Tsukiji 616 14 Daiwa Tsukishima

34 Ikebukuro Sta.

Toshima-ku

15 Nihombashi MS Bldg. 18 Daiwa Nihombashi Honcho 19 Daiwa Ginza 1-chome 20 Daiwa Kyobashi 25 Daiwa Kodenmacho 1 Daiwa Ginza 23 Shinjuku Maynds Tower 31 E SPACE TOWER

Tokyo Skytree

Tokyo Dome

JR Yamanote Line Minato-ku JR Saikyo Line 3 JR Chuo Line JR Sobu Line

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

Committed to heightening tenant satisfaction and proactive leasing activities

Vacancy rates have stopped increasing and it is believed that, as the large supply of offices has settled down, Office Market Trends rents are starting to bottom out.

■ Office Building Rental Market of Tokyo ■ Large-scale Office Building (Note) Supply in 23 Wards of Tokyo (yen/tsubo) (%) (thousand m2) 25,000 10 2,500 Average rents of Vacancy rate of existing buildings (left axis) existing buildings (right axis) 2,160 23,000 8 2,000 1,810

21,000 6 1,500 1,540

1,250 1,210 1,190 1,170 19,000 4 1,000 910 860 870 900 770 850 650 17,000 2 500 570 340

15,000 0 0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 (Source) Miki Shoji Completed properties Incomplete properties

(Note) Large-scale office buildings: Total office floor areas of 10,000m2 or more. (Source) Mori Building

Rental Business Status We strived to improve the occupancy rate as well as diversifying tenants in leased areas.

■ Occupancy Rate ■ Average Contract Rents and Market Rents (monthly)

(%) (yen/tsubo) 100 25,000 99.0 98.2 98.3 97.4 97.6 97.7 97.0 96.4 95.9 96.1 96.1 95.4 95 94.3 94.3 94.6 92.8 20,000 92.4

90 Occupancy rate (actual) Occupancy rate (forecast in Jan. 2013) Occupancy rate (previous forecast in Jul. 2012) Average contract rents Occupancy rate of 38 existing properties 85 (forecast in Jan. 2013) 85.7 15,000 Average ofﬁce rents (according to Miki Shoji for ﬁve central wards of Tokyo) End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period (Note) Average monthly contracted rents with tenants at the end of each fiscal period. ■ Tenant Diversification in Leased Area ■ Changes and Reasons for Tenants Moving In/Out (Note) (No. of cases) (%) (No. of cases) 500 100 60 50 44 40 38 30 33 30 31 400 80 24 18 20 17 1,000m2 or more (left axis) 16 18 13 300m2 or more, less than 1,000m2 (left axis) 10 5 6 4 Less than 300m2 (left axis) 0 -2 Occupancy rate (right axis) 300 60 -10 -12 38 -20 -14 -20 -19 -20 40 -24 -25 -26 41 42 41 159 -30 146 32 134 -40 200 129 129 40 115 -50 -53 -60 7th 8th 9th 10th 11th 12th 13th 14th Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period 100 20 Number of Move Ins Number of Move Outs Difference 119 105 108 106 113 97 Breakdown of 14th Cost Space Better Consolidation Downsizing Other Total Period Reduction Expansion Location

0 0 Moving in 9 16 7 2 7 3 44 Moving out 3 7 4 6 4 2 26 End of End of End of End of End of End of 9th Period 10th Period 11th Period 12th Period 13th Period 14th Period (Note) Figures above exclude new moving in/out for residential and warehouse properties.

8 Internal Growth Policy Results have been steadily surfacing as we have engaged in internal growth based on the motto of “Bonji-Tettei”

Bonji-Tettei

■ Improve occupancy rate through lease-up ■ Measures to reduce costs • Hold regular meetings and regular visits with various leasing agents. • Maintain the fair cost and price levels by introducing effective competition • Person in charge of asset management to be present at time of new principles in continually reviewing and verifying utility (supply) construction property viewing, and establish a point of contact and collaboration and and management expenses. means of communication with the property management company. ■ Implement strategic renewals aimed at • Implement face-to-face leasing by visiting leasing agents with regularly- boosting competitiveness updated vacancy information and property information. • Scrutinize construction content and ensure appropriate construction costs. ■ Prevent cancellations by strengthening relations • Implement environmentally friendly construction and equipment at with existing tenants existing properties. • Enhance tenant satisfaction by strengthening communication with existing tenants. ■ Strengthen collaboration with Daiwa Securities Group • Visit all tenants on a regular basis and ensure timely response by • Reinforce leasing by utilizing Daiwa Securities’ branch network. deepening interaction among people and respond to tenants face-to-face. • Implement leasing that utilizes Daiwa Securities Group’s network of corporate clients.

Occupancy Rate of the Properties Subject to Leasing Improvement in the 14th Fiscal Period

■ Daiwa Kudan (acquisition price: 4,000 million yen) ■ Daiwa Jimbocho (acquisition price: 4,150 million yen) ■ BPS SQUARE (acquisition price: 1,560 million yen)

100.0 (%) 100.0 (%) 100.0 (%) 88.1 100.0 86.7 100.0 88.0 100.0

50.0 50.0 50.0 51.2

20.6 0.0 0.0 0.0 0.0 0.0 12th 13th 14th 12th 13th 14th 12th 13th 14th Period Period Period Period Period Period Period Period Period

Properties Subject to Leasing Improvement in 15th Fiscal Period 100 100 100 ■ shinyon curumu (acquisition price: 9,650 million yen) ■ Honshu Meieki Building (acquisition price: 5,300 million yen ) ■ BPS SQUARE (acquisition price: 1,560 million yen)

• Highly convenient property 50 • Located a 6-minute walk from 50 • Highly convenient property 50 located a 4-minute walk from Exit 7 of Nagoya Station on the located a 1-minute walk from Shinjuku Station’s new south exit JR and Nagoya Municipal Tsukiji Station on the Tokyo Metro and directly connected to the Subway lines and a 2-minute Hibiya Line and located right passageway of Shinjuku 3-chome 0 walk from the underground 0 outside the subway exit. 0 subway station. doorway which leads to the • There are many affiliate • Local development can be underground shopping arcade. companies of parent companies expected with development of • A large-scale redevelopment is which have headquarters in the station building scheduled to open planned in the future and area around Tokyo Station and in the spring of 2016 as well as business accumulation is Ginza area. with infrastructure development. growing year by year.

Actions Taken for Environmental Efforts

■ Daiwa Ginza Acquires SMBC Sustainable Building Certification Even though Daiwa Ginza is just approaching 50 years old, it has earned “Gold” from a certification based on SMBC Sustainable Building Assessment Loan because of a high evaluation including “the policy and implementation of sustainable management,” “the sustainable utilization of site” and “the risk management.”

Daiwa Ginza ■ Daiwa Real Estate Asset Management Awarded “Green Star” in GRESB 2012 Daiwa Real Estate Asset Management participated in the 2012 Global Real Estate Sustainability Benchmark (GRESB) survey for the portfolio of Daiwa Office Investment Management and earned the best rating of "Green Star" from GRESB Survey 2012. Daiwa Real Estate Asset Management received a high evaluation on sustainability from both "Management and Policy" and "Implementation and Measurement" aspects.

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

Proactive investment in selectively chosen competitive properties

Real Estate Transaction Market and Acquisition Performance

The appetite to sell office buildings continues to be sluggish with the continuation of the favorable financing stance of financial institutions, but DOI will aim for total investment of 350 billion yen in acquisition price by utilizing its low LTV and by accumulating properties that are highly competitive.

(transactions) 800 30 700 No. of transactions Lending stance DI (real estate) Lending stance DI (all industries) 20 600 10 500 0 400 -10 300 -20 200 -30 Number of transactions 100 -40 (Above zero is favorable and DI below zero is severe) 0 -50 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2nd Half 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half 1st Half

(billion yen) 400 80 (%) 350 Total acquisition price Estimated LTV (based on acquisition price) LTV (based on acquisition price) 350.0 70 331.8 314.9 300 311.3 313.2 60 287.0 283.4 287.3 269.1 278.1 250 59.0 60.8 265.0 265.0 265.0 50 54.0 54.4 54.4 52.2 200 40 42.1 150 38.7 30 130.4 138.4 35.3 35.6 35.6 110.8 29.8 30.0 100 26.4 27.4 26.9 20 79.5 22.6 50 Proactive investment in selectively 10 chosen competitive properties 0 0 IPO End of 1st End of 2nd End of 3rd End of 4th End of 5th End of 6th End of 7th End of 8th End of 9th End of 10th End of 11th End of 12th End of 13th End of 14th End of 15th Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period (planned) (Source) Data from the Real Estate Transactions Study of Urban Research Institute Corporation (a think tank of Mizuho Trust and Banking) and the website of the Bank of Japan.

Current Portfolio and Acquisition Policy

DOI receives a large amount of information on potential acquisition opportunities because of our low LTV and huge capacity for further investment. We intend to continue selective investment in properties that will remain competitive after discerning the long-term projections for rent of individual properties brought to us.

■ Chart of Distribution of Portfolio Properties ■ Acquisition Policy (Total ﬂoor area: m2) DOI portfolio properties 105,000 Properties acquired in 14th Fiscal Period and 15th Fiscal Period • Focused investment on the Five Central Wards of Tokyo and equivalent areas. • Focused investment on A Class buildings and B Class buildings in Zone 1 that are less Presently targeted investment zone than 20 years old. 100,000 • Acquisition of properties that will heighten the stability and profitability of the existing portfolio. Shinjuku Maynds A Class buildings • Constantly study the replacement and sale of properties in Zone 2 . Tower 95,000 ■ Status after 15th Fiscal Period Acquisitions End of 14th Fiscal Period After acquisition 25,000 •Investment Areas Major Regional Cities Major Regional Cities 1 1.5% 3.0% 20,000 Greater Tokyo Five Central Greater Tokyo Five Central 6.6% Wards of Tokyo 6.9% Wards of Tokyo E SPACE TOWER 91.8% 90.1% 15,000 •Property Class Honshu Meieki Building B Class buildings 10,000 B Class A Class B Class A Class shinyon curumu 57.5% 42.5% 59.7% 40.3% Kamiooka 2 Eye Mark 5,000 Building •Weighted average of the building age

West Park Osaki 21.5 years 20.5 years 0 0 10 20 30 40 50 60 (Note) A class buildings are buildings with a total floor area of 30,000m2 or more and B class buildings are buildings with (Age: years) a total floor area of over 2,000m2 but less than 30,000m2.

10 Properties Acquired During the 14th Fiscal Period

West Park Osaki (acquired on September 18, 2012)

■ Osaki area’s stable market ■ Stable demand from tenants • The Osaki area has a low vacancy rate • Major Corporations Based in the Osaki Area

Period Mar. 2012 Jun. 2012 Sep. 2012 Sony, Fuji Electric, Lawson, Japan Steel Works, Toshiba Tec, Adobe Systems, Mitsui Mining & Smelting, Meidensha, Vacancy 1.5% 1.6% 0.9% rate Sumitomo Construction Machinery, Nippon Meat Packers, Mos Food (Source) CBRE Services and Puma Japan, etc. ■ Relatively new property near Osaki Station • 3-minute walk from west exit of Osaki Station on the JR Yamanote, Saikyo, Shonan-Shinjuku and Rinkai lines • Close to Shinagawa Station and Haneda Airport with good access to major cities throughout Japan • Building is a relatively new property at only 5 years old and there is a limited supply of competitive middle class office buildings in the area

Line JR Yamanote Line Acquisition price 1,650 million yen JR Saikyo Line

Tokyu Ikegami Expected NOI 101 million yen

Art Village Osaki Address 3-6-28 Osaki, Shinagawa-ku, Tokyo Osaki Hirokoji Sta.

Site area 749.63m2 Rissho University

Structure and floors S RC B1/6F Ohsaki New City West Park Osaki Osaki Sta. Total floor area 2,243.36m2 Irugi Temple Gate City Ohsaki New Osaki Building Appraisal price 1,910 million yen (as of August 2012)

Completion September 14, 2007 ThinkPark Tower

Rinkai Line Occupancy rate 100.0% (as of November 30, 2012)

Acquisition of Properties after Sponsor Change

Acquisition timing 9th Period 10th Period 11th Period 12th Period Daiwa Kayabacho Property name Daiwa Jimbocho Daiwa Nishi-Shimbashi Daiwa Kudan Building Jimbocho Place E SPACE TOWER Area Chiyoda-ku, Tokyo Minato-ku, Tokyo Chiyoda-ku, Tokyo Chuo-ku, Tokyo Chiyoda-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

Seller ORIX JREIT Inc. Japan Core Asset 2 YK Shining Nova No. 5 B (SPC) Daiwa Property Co, Ltd. Tokyu Land Corporation Endeavor Realty Fund YK

Acquisition date Mar. 10, 2010 Aug. 13, 2010 Sep. 2, 2010 Mar. 25, 2011 Mar. 29, 2011 Jul. 8, 2011 Building age (Note 1) 13.0 years 17.0 years 23.4 years 0.9 years 1.1 years 8.7 years NOI yield (Note 1) 6.0% 5.5% 5.3% 5.1% 5.1% 4.8%

Acquisition timing 13th Period 14th Period 15th Period (scheduled) Nihonbashi Hongokucho Kamiooka Eye Mark Total Property name Tosei Bldg. West Park Osaki shinyon curumu Honshu Meieki Building Building Area Chuo-ku, Tokyo Shinagawa-ku, Tokyo Shinjuku-ku, Tokyo Nagoya-shi, Aichi Yokohama-shi, Kanagawa - Acquisition price 1,721 million yen 1,650 million yen 9,650 million yen 5,300 million yen 2,000 million yen 66,621 million yen Two domestic industrial Domestic special purpose Seller Tosei Corporation MCR Six GK companies company Shimizu Corporation - Dec. 3, 2012 Acquisition date May 11, 2012 Sep. 18, 2012 Apr. 12, 2013 (scheduled) Feb. 1, 2013 (scheduled) Mar. 1, 2013 (scheduled) - Building age (Note 1) 2.0 years 5.0 years 1.0 year 5.1 years 1.8 years 7.5 years (Note 2) NOI yield (Note 1) 5.3% 6.1% 4.3% 6.0% 6.1% 5.1% (Note 2)

(Note 1) The building age and NOI yield are based on the time of acquisition. (Note 2) The age at acquisition and NOI yield at acquisition are calculated using the weighted average of the acquisition price.

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

Properties Scheduled for Acquisition in the 15th Fiscal Period

shinyon curumu [acquired on December 3, 2012 / April 12, 2013 (scheduled)]

■ Relatively new property with sufficient specs

• Newly-built property completed in January 2012 • Has latest crime-prevention system on each floor

■ Largest number of commuters in Japan ■ Shared operation with

(10,000 people/day) Tokyo Metro 400 Fukutoshin Line 365 Kawagoe 302 200 252 Tobu Tojo Line 110 Wakoshi 0 Tokorozawa Shinjuku Sta. Shibuya Sta. Ikebukuro Sta. Tokyo Sta. Seibu Yurakucho Line (Source) Ofﬁce Japan, Number of commuters a day, Spring 2012 Ikebukuro ■ New supply in Shinjuku Ward to decrease significantly (tsubo) 50,000 Shinjuku 3-chome

40,000

Shibuya 30,000 ■ Property close to Shinjuku Station 20,000 Musashi-Kosugi 50000 • 4-minute walk from the new south exit of JR lines • Directly connected to passageway of Shinjuku 10,000 Yokohama Tokyu Toyoko 40000Line 3-chome Station 0 30000 2008 2009 2010 2011 2012 2013 2014 2015 (Source) Sanko Estate Motomachi-Chukagai 20000

■ Located at intersection of office and commercial areas 10000

JR Chuo Main Line

JR Yamanote Line

Shinjuku- Nishiguchi Sta. 0 Shinjuku Ward Ofﬁce

Studio ALTA

Shinjuku Sta. Isetan Main Building

Toei Oedo Line Shinjuku Keio Commercial Area Shinjuku Sta. 3-chome Sta. Department Tokyo Metro Acquisition price 9,650 million yen Store Marunouchi Line Shinjuku Post Ofﬁce Expected NOI 411 million yen Toei Shinjuku Shinjuku Line 3-chome Sta. Address 4-2-23 Shinjuku, Shinjuku-ku, Tokyo Ofﬁce Area Site area 1,144.63m2 Structure and floors S RC B2/11F Shinjuku Sta. Development of shinyon curumu Total floor area 9,234.99m2 Shinjuku Station’s new south exit Takashimaya

Tokyo Metro Appraisal price 10,000 million yen (as of October 2012) Fukutoshin Line Shinjuku Maynds Tower Completion January 25, 2012 Shinjuku Gyoen Occupancy rate 51.9% (as of December 2012) (Note) (Note) Indicates occupancy rate of whole building.

12 Honshu Meieki Building [acquisition on February 1, 2013 (Scheduled)]

■ The Meieki (Nagoya Station) area has ■ Three skyscrapers are planned to be completed a low vacancy rate with an ongoing by the end of 2015 in the area and the area’s decreasing trend business accumulation is expected to grow (%)18.0 Marunouchi area 16.0 Meieki 3-chome plan 14.0 Fushimi area Honshu Meieki 12.0 Nagoya business area Meieki 1-chome plan Sakura-Dori Building Meieki-Dori 10.0 Sakae area Nagoya Station 8.0 new building Nagoya Sta. 6.0 Meieki area Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. 2011 2012 (Source) Miki Shoji

Acquisition price 5,300 million yen Kokusai Center Sta. Sakura-Dori Subway ■ Convenient Nagoya Sta. Sakura-Dori Line transportation access Expected NOI 318 million yen Meitetsu Nagoya Sta. 1-21-19 Meieki-Minami, • 6-minute walk from Nagoya Station Address Nakamura Nagoya Sta. Subway Nakamura-ku, Nagoya-shi Ward Ofﬁce Higashiyama Line on JR and Nagoya Municipal Nishiki-Dori Subway lines and 2-minute walk Site area 2,059.56m2 Hirokoji-Dori Nakamura Nakamura from underground doorway leading Structure and floors S 12F Kuyakusho Sta. Police Station to Nagoya Station’s underground Honshu Meieki Building 2 shopping arcade Total floor area 10,416.96m Nagoya Central Hospital • A number of railroads including JR, Line Appraisal price 5,960 million yen (as of November 2012) Meieki-dori Nagoya Municipal Subway Main Completion December 20, 2007 (Higashiyama Line and Sakura-dori Kansai Kintetsu Nagoya Line Line), Nagoya Railroad and Kintetsu Occupancy rate 78.4% (as of February 2013 (scheduled)) Komeno Sta. are available Sasashima Raibu Sta.

Kamiooka Eye Mark Building [acquisition on March 1, 2013 (Scheduled)]

■ In terms of number of commuters, ■ Tenants providing services for local residents

Kamiooka Station ranks second after Floor Current tenants Yokohama Station of all Keikyu Main 7F Real estate agency Line stations in Kanagawa Prefecture 6F Telemarketing center 6F Music school (people/day) 400,000 5F Real estate agency 5F English conversation school 303,890 4F Preparatory school 200,000 3F Financial institution 140,230 120,483 113,423 2F Financial institution 1F Financial institution 0 B2F Financial institution Keikyu Main Line, Keikyu Main Line, Odakyu Line, Keio Line, Yokohama Sta. Kamioooka Sta. Shin-Yurigaoka Sta. Chofu Sta. ■ Convenient (Source) Number of commuters in ﬁscal 2011 from websites of each railroad company.

transportation access Ooka

• 1-minute walk from Kamiooka Acquisition price 2,000 million yen River Station on Keikyu Line and Expected NOI 122 million yen Yokohama Municipal Subway 1-14-6 Kamiooka Nishi, • Keikyu Line’s “super limited Address Hotel Torianon Konan-ku, Yokohama-shi Kamiooka Eye express train” and “limited Mark Building Keikyu 2 Department Store express train” stop at Kamiooka Site area 689.12m Kamiooka Sta. Station from which it is convenient Structure and floors S SRC B3/7F to go to terminal areas such as Fuji the 9-minute ride to Yokohama Total floor area 3,755.36m2 Shopping Center Kamiooka Sta.

Station or the 26-minute ride to Keikyu Main Line Appraisal price 2,030 million yen (as of November 2012) Shinagawa Station. Mioka • The adjacent bus terminal is large Completion May 13, 2011 in size and so transportation

Occupancy rate 100.0% (as of March 2013 (planned)) Blue Line access is good

I. Overview of Daiwa Office Investment Corporation 13 Overview of Portfolio (portfolio list)

DOI has a portfolio comprised of one A Class building and 37 B Class buildings

(as of November 30, 2012) Acquisition Appraisal Rentable Structure and Execution Value at End Ownership Type Price PML (%) Property Name Address Area (m2) No. of Floors Completion of Major of Period Share (Note 5) (Note 2) (Note 3) Repairs mm (mm yen) Land Building yen (%) (Note 4) Five Central Wards of Tokyo (Note 1) Fee simple and 1 Daiwa Ginza Ginza, Chuo-ku, Tokyo 8,267.17 SRC B3/12F July 1963 2003 14,100 4.5 14,300 leasehold Fee simple 9.17 2 Daiwa Ginza Annex Ginza, Chuo-ku, Tokyo 2,032.99 SRC B3/8F Aug. 1972 2003 3,050 1.0 3,010 Fee simple Fee simple 7.46 3 Daiwa Shibaura Shibaura, Minato-ku, Tokyo 9,626.38 SRC B1/12F Oct. 1987 8,265 2.6 7,470 Fee simple Fee simple 5.09 4 Daiwa Minami-Aoyama Minami Aoyama, Minato-ku, Tokyo 2,715.54 S SRC B2/5F Sept. 1990 4,550 1.4 3,950 Fee simple Fee simple 12.79 5 Daiwa Sarugakucho Sarugakucho, Chiyoda-ku, Tokyo 3,657.43 SRC 8F June 1985 3,190 1.0 2,980 Fee simple Fee simple 9.79 Compartmentalized 6 Daiwa A Hamamatsucho Hamamatsucho, Minato-ku, Tokyo 3,663.38 SRC B2/10F July 1993 2,865 0.9 2,830 Fee simple ownership 6.03 7 Daiwa Jingumae Jingumae, Shibuya-ku, Tokyo 2,198.61 RC B1/4F Dec. 1997 2,800 0.9 1,990 Fee simple Fee simple 12.01 8 Daiwa Shibadaimon Shibadaimon, Minato-ku, Tokyo 2,386.02 SRC RC B1/7F Nov. 1996 2,578 0.8 2,620 Fee simple Fee simple 2.99 9 Daiwa Misakicho Misakicho, Chiyoda-ku, Tokyo 2,137.53 S 8F July 1996 2,346 0.7 2,470 Fee simple Fee simple 6.68 10 Daiwa Shimbashi 510 Shimbashi, Minato-ku, Tokyo 2,715.61 SRC B1/8F Apr. 1974 2006 2,080 0.7 2,340 Fee simple Fee simple 8.13 11 BPS SQUARE Tsukiji, Chuo-ku, Tokyo 2,852.97 SRC 10F Jan. 1996 1,560 0.5 1,430 Fee simple Fee simple 7.67 12 Daiwa Tsukiji Tsukiji, Chuo-ku, Tokyo 1,487.82 SRC B1/7F Jan. 1990 1,240 0.4 1,420 Fee simple Fee simple 9.70 13 Daiwa Tsukiji 616 Tsukiji, Chuo-ku, Tokyo 2,931.93 SRC B1/9F Mar. 1994 2,440 0.8 2,320 Fee simple Fee simple 7.69 14 Daiwa Tsukishima Tsukishima, Chuo-ku, Tokyo 8,426.85 S 5F July 1996 7,840 2.5 7,810 Fee simple Fee simple 10.89 15 Nihombashi MS Bldg. Nihombashi-Horidomecho, Chuo-ku, Tokyo 2,850.81 SRC B2/7F Apr. 1993 2,520 0.8 2,380 Fee simple Fee simple 7.84 16 Daiwa Azabudai Azabudai, Minato-ku, Tokyo 1,697.34 SRC B2/9F Apr. 1984 1,600 0.5 1,740 Fee simple Fee simple 9.57 Compartmentalized 17 Daiwa Shibuya SS Shibuya, Shibuya-ku, Tokyo 2,969.11 SRC S B1/9F July 1977 2003 3,930 1.2 3,710 Fee simple ownership (100%) 8.67 18 Daiwa Nihombashi Honcho Nihombashi-Honcho, Chuo-ku, Tokyo 7,418.61 SRC B1/10F Jan. 1964 2006 7,420 2.4 6,790 Fee simple Fee simple 8.49 19 Daiwa Ginza 1-chome Ginza, Chuo-ku, Tokyo 3,758.43 SRC B2/11F Jan. 1962 2005 4,620 1.5 4,340 Fee simple Fee simple 10.16 Compartmentalized 20 Daiwa Kyobashi Hachobori, Chuo-ku, Tokyo 3,265.83 SRC B1/8F Oct. 1974 2005 3,460 1.1 2,930 Fee simple ownership (100%) 10.04 Compartmentalized 21 Sunline Building No. 7 Kojimachi, Chiyoda-ku, Tokyo 2,405.04 SRC B2/9F Oct. 1987 2,680 0.9 2,110 Co-ownership ownership 8.62 Compartmentalized 22 Daiwa Onarimon Shimbashi, Minato-ku, Tokyo 11,615.37 SRC 9F Apr. 1973 2003 13,860 4.4 13,000 Fee simple ownership (100%) 5.45 23 Shinjuku Maynds Tower (Note 7) Yoyogi, Shibuya-ku, Tokyo 45,544.04 S SRC B3/34F Sept. 1995 133,800 42.5 108,000 Co-ownership Co-ownership 6.42 24 SHIBUYA EDGE Udagawacho, Shibuya-ku, Tokyo 2,480.65 RC B1/9F Aug. 2006 5,900 1.9 3,930 Fee simple Fee simple 3.14 Fee simple and 25 Daiwa Kodenmacho Nihombashi-Odenmacho, Chuo-ku, Tokyo 2,379.31 SRC 8F Mar. 1985 2,460 0.8 1,910 leasehold Fee simple 7.71 26 Daiwa Jimbocho Kanda-Jimbocho, Chiyoda-ku, Tokyo 3,164.48 S B1/8F Mar. 1997 4,150 1.3 2,730 Fee simple Fee simple 5.58 27 Daiwa Nishi-Shimbashi Nishi-Shimbashi, Minato-ku, Tokyo 4,815.84 SRC B1/10F July 1993 5,000 1.6 4,900 Fee simple Fee simple 6.76 Compartmentalized 28 Daiwa Kudan Kudan Minami, Chiyoda-ku, Tokyo 2,882.61 SRC 9F Mar. 1987 4,000 1.3 2,730 Fee simple ownership (100%) 7.96 29 Daiwa Kayabacho Building Nihonbashi-Kayabacho, Chuo-ku, Tokyo 5,899.11 S SRC B1/8F Apr. 2010 5,600 1.8 6,260 Fee simple Fee simple 5.58 30 Jimbocho Place Kanda-Jimbocho, Chiyoda-ku, Tokyo 2,889.34 S 9F Feb. 2010 3,550 1.1 3,660 Fee simple Fee simple 6.13 31 E SPACE TOWER Maruyamacho, Shibuya-ku, Tokyo 13,960.85 S SRC B1/15F Oct. 2002 24,000 7.6 26,000 Fee simple Fee simple 5.78 32 Nihonbashi Hongokucho Tosei Building Nihombashi Hongokucho, Chuo-ku, Tokyo 2,143.08 S 8F May 2010 1,721 0.5 1,810 Fee simple Fee simple 6.93 Subtotal 177,240.08 289,175 91.8 255,870 Greater Tokyo Area (Note 1) 33 Daiwa Kinshicho Kameido, Koto-ku, Tokyo 5,378.02 S B1/5F Jan. 1992 3,653 1.2 3,300 Fee simple Fee simple 7.42 34 Daiwa Higashi-Ikebukuro Higashi-Ikebukuro, Toshima-ku, Tokyo 4,589.17 SRC S B1/9F June 1993 2,958 0.9 3,510 Fee simple Fee simple 5.56 35 Benex S-3 Shin-Yokohama, Kohoku-ku, Yokohama City, Kanagawa 7,470.01 S SRC B1/12F Feb. 1994 4,950 1.6 3,200 Fee simple Fee simple 5.66 36 Daiwa Shinagawa North Kita-Shinagawa, Shinagawa-ku, Tokyo 6,549.98 SRC B1/11F July 1991 7,710 2.4 5,690 Fee simple Fee simple 5.56 37 West Park Osaki Osaki, Shinagawa-ku, Tokyo 1,786.58 S RC B1/6F Sept. 2007 1,650 0.5 1,910 Fee simple Fee simple 10.93 Subtotal 25,773.76 20,921 6.6 17,610 Major Regional Cities (Note 1) 38 Daiwa Minami-Semba Minami-Semba, Chuo-ku, Osaka City, Osaka 5,719.54 SRC B1/8F Sept. 1986 4,810 1.5 2,850 Fee simple Fee simple 11.56 Subtotal 5,719.54 4,810 1.5 2,850 Total 208,733.38 314,906 100.0 276,330 5.64 (Note 6)

(Note 1) The Five Central Wards of Tokyo are Chiyoda, Chuo, Minato, Shinjuku and Shibuya Wards (or ku). The Greater Tokyo Area is Tokyo (excluding the Five Central Wards), and Kanagawa, Chiba and Saitama Prefectures. Major Regional Cities are the Osaka area (Osaka, Kyoto and Hyogo prefectures), Nagoya area (Aichi, Mie and Gifu prefectures) and ordinance designated cities and core cities set forth in the Local Autonomy Act. (Note 2) The Rentable Area are indicated as of November 30, 2012 (end of 14th Fiscal Period). (Note 3) Structure acronyms are S for steel, RC for reinforced concrete and SRC for steel-reinforced concrete. (Note 4) The values entered in the Appraisal Value at End of Period column are the appraisal values in the real estate appraisal reports with a pricing point of November 30, 2012 (end of 14th Fiscal Period). (Note 5) The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (December 2012) prepared by NKSJ Risk Management, Inc. (Note 6) The PML total shows the portfolio PML. (Note 7) The entrusted real estate corresponding to trust beneficiary interests that DOI owns regarding Shinjuku Maynds Tower is a co-ownership interest equal to 6/7 of the entire property. DOI acquired 3/7 of the co-ownership interest on July 13, 2007 for 65.1 billion yen and 3/7 of the co-ownership interest on November 26, 2007 for 68.7 billion yen. The figure shown for the Rentable Area is figure equivalent to 6/7 of the total rentable area of the entire building.

14 Financial Conditions Reduce risk of rising interest rates by extending borrowing periods and increasing the ratio of borrowings with fixed interest rates

Status of Interest-Bearing Liabilities (as of November 30, 2012)

DOI refinanced 16.8 billion yen in 14th Fiscal Period, improving borrowing costs. Going forward, DOI will continue focusing on stable financial management to support further growth.

■ Interest-Bearing Liabilities ■ Debt Cost Rate (Note) 70 (％) (%) 8 Interest-bearing liabilities (left axis) Debt cost rate Expected debt cost rate LTV (based on acquisition price) (Note) (right axis) 60 7

6 50

(billion yen) Medium-to-long term, upper-limit LTV target range 5 160 40 4 120 30 3

80 20 2

40 10 1

0 0 0 End of End of End of End of End of End of End of End of End of End of End of End of End of End of 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period (Note) LTV (based on acquisition price): Total interest-bearing liabilities / Total acquisition price of properties (Note) Debt cost rate annualized: ((Interest expense + Financial related expenses) / Interest-bearing liabilities)

■ Diversification of Repayment Dates ■ Balance of Borrowings by Financial Institution (million yen) (including investment corporation bonds) 30,000 Balance Share Financial institution (mm yen) 25,000 Sumitomo Mitsui Banking Corporation 21,500 19.2% Development Bank of Japan 1,000 13,750 12.3% 20,000 3,500 Sumitomo Mitsui Trust Bank 13,350 11.9% Shinsei Bank 8,000 7.1% 2,000 15,000 Mizuho Corporate Bank 7,900 7.0%

6,000 8,500 Resona Bank 7,000 6.2% 10,000 8,900 Aozora Bank 5,000 4.5% 19,000 2,500 16,810 5,000 Kansai Urban Banking Corporation 5,000 4.5% 5,000 5,000 1,600 Mizuho Trust and Banking 4,500 4.0% 2,000 6,500 1,950 4,481 5,000 2,500 6,050 Mitsubishi UFJ Trust and Banking 3,000 2.7% 4,000 3,400 3,500 0 3,000 2,000 2,000 1,000 1,700 The Bank of Fukuoka 3,000 2.7% 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 28th Period Period Period Period Period Period Period Period Period Period Period Period Period ORIX Bank Corporation 2,500 2.2% The Gunma Bank 2,000 1.8% ■ Ratio of Long- to ■ Ratio of Fixed- to Short-Term Liabilities Floating-Rate Borrowings The Shizuoka Bank 2,000 1.8% The Hiroshima Bank 1,000 0.9% End of 14th Fiscal Period End of 14th Fiscal Period The 77 Bank 1,000 0.9% 13.8 The Musashino Bank 1,000 0.9% % 25.0 The Kagawa Bank 981 0.9% % Ratio of Ratio of The Bank of Yokohama 500 0.4% long-term borrowings with liabilities ﬁxed interest rates Taiyo Life Insurance Company 300 0.3% at the end of at the end of 13th Fiscal Period 13th Fiscal Period Nippon Life Insurance Company 300 0.3% 80.0% 84.3% Investment corporation bonds 8,500 7.6% Total 112,081 100.0% 75.0% 86.2% (Note) Balances less than a million yen have been rounded down. Financial institutions from which borrowings were newly procured during Long-term borrowings, etc. Fixed interest rates the 14th Fiscal Period are boxed in red. Current portion of long-term borrowings (Includes current portion of investment corporation bonds) Floating interest rates

I. Overview of Daiwa Office Investment Corporation 15 Description of Asset Manager

Organization of Asset Manager (as of December 17, 2012)

■ Description ■ Directors and Auditor

Name Daiwa Real Estate Asset Management Co., Ltd. President and Representative Akira Yamanouchi Address 6-2-1 Ginza, Chuo-ku, Tokyo Director Vice President and Established October 21, 2004 Yoshiki Nishigaki (Head of Fund Management Dept.) Representative Director Paid-in Capital 200 million yen Vice President and Employees 42 Yuji Shinotsuka (Business Planning Dept.) Representative Director Registration of Financial Instruments No. 355 (Kinsho), Director-General, Kanto Local Finance Business Operator Bureau Director Naoyuki Owa (Head of Administrative Dept.) Building Lots and Buildings Director (non-executive) Toshihiro Matsui No. (2)-83920, Governor of Tokyo Transaction Business License Director (non-executive) Mikita Komatsu Discretionary Agent for Real Estate No. 34, Minister of Land, Infrastructure, Transport and Auditor (non-executive) Toshihiko Onishi Transaction Approval Tourism Member of The Investment Trusts Association, Japan Association Membership Member of Japan Investment Advisers Association

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

Investment Committee Compliance Ofﬁcer President and Representative Director Internal Control Ofﬁce

Investment Management Fund Management Construction Manager Marketing Department Finance Department Administrative Business Planning Department Department Department Department Acquisitions Team Finance and IR Team Advisory Team Asset Management Team Accounting Team Operational Team Investment Planning Team Management Team

Structure

Investment Corporation Asset Manager ① ② General Administrator General Administrator Asset Custodian related to the operation of the administrative instruments Sumitomo Mitsui Trust Bank, Limited

Daiwa Real Estate Asset General Meeting of Unitholders Manager of Unitholder Management Co., Ltd. Registry, etc. ③ Special Account Management Ofﬁcers Institution Executive Director: Nobuaki Omura Sumitomo Mitsui Trust Bank, Limited Supervisory Director: Takayuki Hiraishi ④ Supervisory Director: Hiroshi Sakuma ⑤ General Administrator (Investment Corporation Bonds)

Supporting Company Accounting Auditor Sumitomo Mitsui Banking Corporation

Daiwa Securities Group Inc. KPMG AZSA LLC

① Asset management contract / General administration affairs contract related to operation ④ Sponsor support agreement of administrative instruments ⑤ Fiscal agency agreement ② General administrative affairs contract / Asset custodian contract ③ Unitholder register, etc. management contract / Special account management contract

16 II. Asset Management Report

1. Management Status and Other Performance Highlights Data

14th Period 13th Period 12th Period 11th Period 10th Period Settlement Period From June 1, 2012 From Dec. 1, 2011 From June 1, 2011 From Dec. 1, 2010 From June 1, 2010 ( To Nov. 30, 2012 ) ( To May 31, 2012 ) ( To Nov. 30, 2011 ) ( To May 31, 2011 ) ( To Nov. 30, 2010 ) (1) Operating Performance (Millions of yen, except per unit data or where otherwise indicated) Operating revenues 7,566 7,431 7,606 6,759 6,424 Rental revenues 7,384 7,338 7,551 6,715 6,375 Operating expenses 4,419 4,341 4,289 3,935 3,942 Property-related expenses 3,602 3,533 3,472 3,166 3,195 Operating income 3,147 3,090 3,317 2,824 2,482 Ordinary income 2,365 2,022 1,768 1,588 1,274 Net income 2,369 2,021 1,767 1,453 1,282 (2) Properties, etc. (as of end of period) Total assets 325,666 325,316 323,218 298,626 294,562 [period-on-period percentage changes] [+0.1%] [+0.6%] [+8.2%] [+1.4%] [+3.8%] Interest-bearing liabilities 112,081 111,391 109,917 86,250 82,776 Net assets 201,118 200,800 200,548 200,234 200,063 [period-on-period percentage changes] [+0.2%] [+0.1%] [+0.2%] [+0.1%] [−0.4%] Unitholders’ capital 198,781 198,781 198,781 198,781 198,781 (3) Distributions Total distribution amount 2,369 2,021 1,767 1,453 1,282 Dividend payout 100.0% 100.0% 100.0% 100.0% 100.0% (4) Per Unit Information Total number of units issued (units) 395,798 395,798 395,798 395,798 395,798 Net assets per unit (yen) 508,132 507,331 506,693 505,900 505,469 Distribution per unit (yen) 5,986 5,107 4,464 3,671 3,240 Distribution amount from earnings per unit (yen) 5,986 5,107 4,464 3,671 3,240 Distribution amount in excess of earnings per unit (yen) – – – – – (5) Financial Indicators ROA Notes 2 0.7% 0.6% 0.6% 0.5% 0.4% [annual rate] and 3 [1.5%] [1.2%] [1.1%] [1.1%] [0.9%] ROE Notes 3 1.2% 1.0% 0.9% 0.7% 0.6% [annual rate] and 4 [2.4%] [2.0%] [1.8%] [1.5%] [1.3%] Capital ratio 61.8% 61.7% 62.0% 67.1% 67.9% [period-on-period percentage changes] [0.0%] [−0.3%] [−5.0%] [−0.9%] [−2.8%] LTV (loan to value) 34.4% 34.2% 34.0% 28.9% 28.1% Property leasing cash flows (NOI) Note 5 5,088 5,172 5,427 4,830 4,416 (6) Other Referential Information Number of investment properties 38 37 36 35 33 Number of tenants Note 6 376 355 340 334 324 Total rentable area (m2) 208,733.38 207,277.34 205,318.62 191,346.43 182,548.82 Occupancy rate Note 7 96.4% 94.3% 92.4% 95.4% 95.9% Depreciation 1,306 1,367 1,348 1,281 1,236 Capital expenditures 357 641 240 540 364

(Note 1) Operating revenues, etc. do not include consumption taxes, etc. (Note 2) ROA: Ordinary income ÷ [(Total assets at beginning of period + Total assets at end of period) ÷ 2] × 100 (Note 3) Figures for the 10th Fiscal Period are the annualized figures calculated based on 183 days of management. Figures for the 11th Fiscal Period are the annualized figures calculated based on 182 days of management. Figures for the 12th Fiscal Period are the annualized figures calculated based on 183 days of management. Figures for the 13th Fiscal Period are the annualized figures calculated based on 183 days of management. Figures for the 14th Fiscal Period are the annualized figures calculated based on 183 days of management. (Note 4) ROE: Net income ÷ [(Net assets at beginning of period + Net assets at end of period) ÷ 2] × 100 (Note 5) Property leasing cash flows (NOI): Rental revenues − Property-related expenses + Depreciation (Note 6) Number of tenants is the number of end tenants. When there is a tenant occupying multiple buildings, the concerned tenant is counted and stated for each individual building. (Note 7) Occupancy rate: Total leased area ÷ Total rentable area

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

(1) Brief History of the Investment Corporation Daiwa Office Investment Corporation (former DA Office Investment Corporation; hereinafter “DOI”) was established on July 11, 2005 in accordance with the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951; including amendments thereto) with Daiwa Real Estate Asset Management Co., Ltd. (hereinafter “DREAM”; former, K.K. daVinci Select) as the organizer. After its establishment, DOI implemented an additional issuance of investment units through a public offering (99,600 units) on October 18, 2005 and then listed on the Tokyo Stock Exchange, Inc. (“TSE”) Real Estate Investment Trust Section (securities code: 8976) the following day. Though initial assets under management were 79,573 million yen (sum total of acquisition prices), subsequent activities, such as the additional acquisition of properties and replacement of portfolio properties, resulted in the assets under management amounting to 314,906 million yen (sum total of acquisition prices) as of the last day of November 2012. DOI strives to secure stable revenues and achieve sustainable growth of investment assets based on a clear portfolio development policy of specializing in investment in office buildings, with a particular focus on investment in buildings with a total floor area of 2,000m2 or more situated in downtown Tokyo, as well as through dedicated efforts to heighten tenant satisfaction levels.

(2) Investment Environment and Management Performance (A) Investment Environment (from June 1, 2012 to November 30, 2012) At first the Japanese economy during the fiscal period under review was recovering modestly with the demand accompanying the post-earthquake reconstruction etc. but it became weakened toward the end of the period due to a slowdown in overseas economies. In terms of the office leasing market, vacancy rates in the whole market showed signs of improvement despite the obvious secondary vacancies increase along with the decrease of primary vacancies due to a large supply in the first half of 2012 improved in central Tokyo. However, new advertised rents are still on a downward trend. In the office transaction market, the purchase demand by real estate companies and funds (including REITs) remained steady as a result of the easing attitudes of financial institutions toward lending. (B) Management Performance To increase the long-term EPS (EPS (net income per unit) after deducting gain on sales of properties) over the medium to long term, DOI worked on “external growth” which aims to boost revenue through acquiring and selling properties, and “internal growth” which aims to maximize income generated from existing properties. Concerning external growth, DOI proactively engaged in property acquisition activities and purchased “West Park Osaki” (acquisition price: 1,650 million yen) on September 18, 2012. As a result of the acquisition, DOI’s assets under management at the end of the 14th Fiscal Period (as of November 30, 2012) totaled 38 properties, the sum total of acquisition prices amounted to 314,906 million yen. Concerning internal growth, in spite of the severe office leasing market conditions and tenant relocations in part, DOI tried to improve tenant satisfaction through developing good relations with tenants and strengthening cooperation with leasing brokers and property managers. As a result, the occupancy rate at the end of the 14th Fiscal Period (as of November 30, 2012) was maintained at 96.4%.

18 (3) Overview of Capital Procurement On August 29, 2012, DOI concluded a loan agreement of 2,000 million yen with The Shizuoka Bank, Ltd., and the loan was carried out on August 31, 2012. Out of the 2,000 million yen, 1,000 million yen of the funds were allocated to refinance the loan from the same bank ahead of schedule and the remaining funds were allocated to the repayment of loans on September 18, 2012. On September 13, 2012, DOI concluded loan agreements of 11,950 million yen in total with Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, Limited, Development Bank of Japan Inc., The 77 Bank, Ltd., Mizuho Corporate Bank, Ltd., The Hiroshima Bank, Ltd. and The Musashino Bank, Ltd. and the loan was carried out on September 18, 2012. The funds were allocated to repay the borrowings of 11,843.75 million yen from Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, Limited, Development Bank of Japan Inc. and The 77 Bank, Ltd. for which repayment was due on September 18, 2012 and to acquire property, etc. Remaining amounts were repaid using cash on hand. On November 28, 2012, DOI concluded loan agreements of 3,550 million yen in total with Sumitomo Mitsui Trust Bank, Limited on September 13, 2012, with Taiyo Life Insurance Company, The Gunma Bank, Ltd. and Nippon Life Insurance Company and the loan was carried out on November 30, 2012. The funds were allocated to repay the borrowings of 3,925 million yen from Sumitomo Mitsui Trust Bank, Limited, Taiyo Life Insurance Company and The Gunma Bank, for which repayment was due on November 30, 2012. Remaining amounts were repaid using cash on hand. In addition, contractual repayments of 41.25 million yen in total were made to the Development Bank of Japan Inc. and The Kagawa Bank, Ltd. on August 31, 2012. As a result, the balance of interest-bearing liabilities outstanding at the end of the 14th Fiscal Period (as of November 30, 2012) stood at 112,081.25 million yen (long-term debt: 103,581.25 million yen; investment corporation bonds: 8,500 million yen). The balance of the current portion of long term debt and investment corporation bonds stood at 22,981.25 million yen and 5,000 million yen. During the 14th Fiscal Period, for the purpose of hedging the exposure to rising interest rates, several interest rate swap agreements for borrowings of 16,350 million yen in total which fixes the interest rate in the future were signed.

(4) Capital Expenditures During the 14th Fiscal Period The following summarizes the major construction work that constitutes capital expenditures during the 14th Fiscal Period. Capital expenditures amounted to 357 million yen, and combined with the 280 million yen in repair expenses, totals 638 million yen in construction work implemented. Name of Property Expenditure (location) Purpose Period (millions of yen) Daiwa Sarugakucho From: Mar. 2012 (Chiyoda-ku, Tokyo) Renovation work in common areas To: June 2012 127 BPS SQUARE Updating package air conditioners From: July 2012 (Chuo-ku, Tokyo) and Renovation work To: Sep. 2012 50 Shinjuku Maynds Tower Installation of sound barrier From: Feb. 2012 30 (Shibuya-ku, Tokyo) To: Aug. 2012 Daiwa Ginza 1-chome Updating air conditioners From: Sep. 2012 (Chuo-ku, Tokyo) on B1F and B2F To: Nov. 2012 14 Other Buildings From: June 2012 To: Nov. 2012 136 Total 357

(5) Overview of Financial Performance and Distributions As a result of the management described above, for the 14th Fiscal Period, DOI recorded 7,566 million yen in operating revenue, 3,147 million yen in operating income, 2,365 million yen in ordinary income and 2,369 million yen in net income. Concerning distributions, to ensure that the cash dividend would be deducted from taxable income (Article 67-15 of the Special Measures Concerning Taxation (Act No. 26 of 1957; including amendments, hereinafter “Special Taxation Measures Act”)), DOI decided to distribute the entire retained earnings at the current period end, excluding fractions of the distribution amount per unit that are less than 1 yen. Accordingly, DOI declared a distribution amount per unit of 5,986 yen.

II. Asset Management Report 19 3. Future Management Policy and Tasks (1) Investment Environment The Japanese economy is expected to continue to be moderate for the time being. Furthermore, while being continuously supported by the demand accompanying the post-earthquake reconstruction, the Japanese economy is expected to enter a gradual recovery as overseas economies escape from their downward trend. However, there are still great uncertainties in overseas economies, which have the risk of placing downward pressure on the Japanese economy and a close watch should be placed on the future employment and income environment. In the office leasing market, as decrease in new supply and undervalued rents boost demand, both vacancy rates and rents are expected to make a gradual recovery toward late this year at prime properties. In the office transaction market, acquisition demand of real estate companies and funds (including REITs) is expected to be strong.

(2) Management Policy and Tasks (A) Strategy for Managing Existing Properties Under above office leasing market conditions, the tenant is also expected to be more selective with properties. Consequently, DOI will carry out operational management under the following policy in an aim to enhance the competitiveness of existing properties and thereby increase the long-term EPS over the medium to long term. (a) Maintain and raise occupancy rates For existing tenants, strive to reduce vacancy risks through improving the quality of buildings, equipment and management system. For new tenants, strive to maintain and raise occupancy rates through the provision of more comfortable service than competitor by participating in the market aggressively. (b) Maintain and raise profitability Aim to secure stable revenue over the medium to long term through further strengthening good relationships with existing tenants, as well as proactively tapping the needs of new tenants by discerning the market environment. (c) Lower operational management costs Strive to lower operational management costs based on maintaining the high level of tenant satisfaction with office environments. To achieve this, DOI will implement efficient operational management by leveraging the economies of scale obtained from external growth and reviewing planned construction work.

(B) Investment Strategy for New Properties Based on various external growth strategies, DOI will concentrate its investment in buildings with a total floor area of 2,000m2 or more considering a balance between the financing and purchasing market. In principal, DOI will invest in properties around Tokyo, but will also look into investment in competitive properties in the areas other than Tokyo to diversify investments. As pipelines, in addition to expanding its own information-sourcing channels, DOI will search for properties that meet its investment criteria by proactively gathering real estate transaction market information through expanding partnerships with DREAM and Sponsor Group and utilizing the Group’s extensive network of clients. During the 14th Fiscal Period, DOI additionally acquired “West Park Osaki” which is situated in Tokyo. DOI believes the acquisitions will contribute to further stabilization and enhancement of the portfolio. DOI will continue to strive to acquire properties that are in line with the investment strategy described above.

20 (C) Financial Strategy DOI will conduct disciplined financial management based on the following: (a) In principle, control leverage by keeping LTV ratio within the range of 40% to 50% at maximum. (b) In principle, diversify the payment date, targeting 30 billion yen as the maximum amount of interest- bearing liabilities that shall become due during any single fiscal period. (c) In principle, aim to have long-term loans at least 70% to total loans. (d) Diversify lenders, which shall mainly be domestic financial institutions. (e) Pursuant to its fund management rules, maintain stability in its financial standing by separating necessary funds, such as the amount of distributions paid, from working funds.

(D) Schedule of Capital Expenditures The following table lists major capital expenditures in conjunction with the refurbishment or renewal work planned for the future on the properties held as of November 30, 2012. Please note that the amounts below include costs that will be recognized as expenses.

Estimated Cost (millions of yen) Name of Property Payment (location) Purpose Estimated Period Cumulative Total for the amount current paid period Daiwa Tsukishima Construction work for installation From: Feb. 2013 150 – – (Chuo-ku, Tokyo) hydraulic damper To: May 2013 BPS SQUARE Construction work for renovation From: Jan. 2013 60 – – (Chuo-ku, Tokyo) To: Apr. 2013 Shinjuku Maynds Tower Construction work for painting From: Jan. 2013 42 – – (Shibuya-ku, Tokyo) iron parts of rooftop, etc. To: May 2013 Shinjuku Maynds Tower Construction work for renovation From: Dec. 2012 37 – – (Shibuya-ku, Tokyo) common areas To: Apr. 2013 Shinjuku Maynds Tower Construction work for From: June 2013 21 – – (Shibuya-ku, Tokyo) replacement of electricity meter To: Feb. 2013

II. Asset Management Report 21 III. Balance Sheets

As of November 30, 2012 and May 31, 2012 (Thousands of yen)

As of As of November 30, 2012 May 31, 2012

Assets Current Assets: Cash and cash equivalents [Note 10] 16,046,965 16,801,099 Tenant receivables 261,650 284,801 Prepaid expenses 246,573 244,404 Deferred tax assets [Note 8] 18 17 Other current assets 94,278 101,782 Total Current Assets 16,649,484 17,432,103 Investment Properties, at cost: [Notes 3 and 11] Land including trust accounts 248,877,227 247,785,634

Buildings and structures including trust accounts [Note 4] 70,528,102 69,544,514

Machinery and equipment in trust 802,224 793,278

Tools, furniture and fixtures including trust accounts 88,625 84,238

Construction in progress including trust accounts 353,449 22,722

Other tangible fixed assets including trust accounts 9,759 9,759

Less: accumulated depreciation (14,911,383) (13,605,373)

Leasehold rights including trust accounts 2,713,986 2,713,986

Total Investment Properties, net 308,461,989 307,348,758

Other Assets:

Right of trademark 1,825 2,013

Lease and guarantee deposits in trust 113,684 113,684

Long-term prepaid expenses 387,956 368,077 Deferred tax assets [Note 8] 18,818 1,173 Deferred investment corporation bond issuance costs 16,752 25,336 Derivative assets [Note 10] 1,119 9,959 Others 14,077 14,813 Total Other Assets 554,231 535,055 Total Assets 325,665,704 325,315,916

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

(Thousands of yen)

As of As of November 30, 2012 May 31, 2012

Liabilities Current Liabilities: Operating accounts payable 546,346 911,636 Investment corporation bond due within one year [Notes 6 and 10] 5,000,000 – Long-term debt due within one year [Notes 6 and 10] 22,981,250 22,291,250 Accounts payable – other 258,426 261,882 Income taxes payable 798 697 Accrued consumption taxes 85,803 163,147 Rent received in advance 831,967 876,926 Other current liabilities 207,903 279,867

Total Current Liabilities 29,912,493 24,785,405

Long-Term Liabilities:

Investment corporation bonds [Notes 6 and 10] 3,500,000 8,500,000

Long-term debt [Notes 6 and 10] 80,600,000 80,600,000

Tenant security deposits including trust accounts [Note 10] 10,482,828 10,616,879

Derivative liabilities [Note 10] 52,639 13,164

Total Long-Term Liabilities 94,635,467 99,730,043

Total Liabilities 124,547,960 124,515,448

Net Assets [Note 5]

Unitholders’ Equity:

Unitholders’ capital 198,780,951 198,780,951 Units authorized: 2,000,000 units Units issued and outstanding: 395,798 units Retained earnings 2,369,494 2,021,548 Total Unitholders’ Equity 201,150,445 200,802,499 Valuation and translation adjustments Deferred gains or losses on hedges (32,701) (2,031) Total Valuation and translation adjustments (32,701) (2,031) Total Net Assets 201,117,744 200,800,468 Total Liabilities and Net Assets 325,665,704 325,315,916

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

III. Balance Sheets 23 IV. Statements of Income

For the six months ended November 30, 2012 and May 31, 2012 (Thousands of yen) For the six months ended For the six months ended November 30, 2012 May 31, 2012 Operating Revenues and Expenses Operating Revenues: [Note 7] Rental revenues 7,384,164 7,338,153 Other revenues related to property leasing 182,050 93,360 Total Operating Revenues 7,566,214 7,431,513 Operating Expenses: Property-related expenses [Note 7] 3,601,887 3,533,104 Asset management fees 621,489 605,809 Asset custody fees 16,264 16,147 Administrative service fees 63,886 57,647 Trust fees 23,137 30,302 Directors’ compensation 5,400 5,400 Other operating expenses 87,363 93,062 Total Operating Expenses 4,419,426 4,341,471 Operating Income 3,146,788 3,090,042 Non-Operating Revenues and Expenses Non-Operating Revenues: Interest income 1,386 2,014 Reversal of distribution payable 1,083 6,825 Other non-operating revenues 2,938 3,494 Total Non-Operating Revenues 5,407 12,333 Non-Operating Expenses: Interest expense 534,556 703,955 Interest expense on investment corporation bonds 97,319 96,326 Borrowing expenses 142,688 266,813 Other non-operating expenses 12,685 12,983 Total Non-Operating Expenses 787,248 1,080,077 Ordinary Income 2,364,947 2,022,298 Extraordinary Income: Subsidy income – 32,898 Gain on donation of tangible fixed asset 5,315 – Total Extraordinary Income 5,315 32,898 Extraordinary Losses: Loss on reduction of tangible fixed asset [Note 4] – 32,898 Total Extraordinary Losses – 32,898 Income Before Income Taxes 2,370,262 2,022,298 Income taxes – current 977 979 Income taxes – deferred (1) 3 Total Income Taxes [Note 8] 976 982 Net Income 2,369,286 2,021,316 Retained Earnings Brought Forward 208 232 Retained Earnings at End of Period 2,369,494 2,021,548

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

24 IV. Statements of Income V. Statements of Changes in Unitholders' Equity

For the six months ended November 30, 2012 and May 31, 2012 (Thousands of yen)

Deferred gains Number of Unitholders’ Retained or losses Total Units Capital Earnings on hedges Balance as of May 31, 2012 395,798 198,780,951 2,021,548 (2,031) 200,800,468

Cash dividends declared – – (2,021,340) – (2,021,340) Net income – – 2,369,286 – 2,369,286 Net changes of items other than – – – (30,670) (30,670) unitholders’ equity Balance as of November 30, 2012 395,798 198,780,951 2,369,494 (32,701) 201,117,744

(Thousands of yen)

Deferred gains Number of Unitholders’ Retained or losses Total Units Capital Earnings on hedges Balance as of November 30, 2011 395,798 198,780,951 1,767,075 – 200,548,026

Cash dividends declared – – (1,766,843) – (1,766,843) Net income – – 2,021,316 – 2,021,316 Net changes of items other than – – – (2,031) (2,031) unitholders’ equity Balance as of May 31, 2012 395,798 198,780,951 2,021,548 (2,031) 200,800,468

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

V. Statements of Changes in Unitholders' Equity 25 VI. Notes to Financial Statements

For the six months ended November 30, 2012 and May 31, 2012 Note 1 – Organization and Basis of Presentation Organization Daiwa Office Investment Corporation (former DA Office Investment Corporation: hereinafter, “DOI”) was established on July 11, 2005 as an investment corporation under the Law Concerning Investment Trusts and Investment Corporations of Japan (hereinafter, the “Investment Trust Law of Japan”) by the founder (the former daVinci Select; presently, Daiwa Real Estate Asset Management (hereinafter, “DREAM”)). DOI is an externally managed real estate fund, established as an investment corporation. DREAM, as DOI’s asset management company, is engaged in acquiring, managing, leasing, and renovating office properties. Daiwa Securities Group Inc. currently owns 100% of DREAM. On October 18, 2005, DOI had raised approximately 49,498,710 thousand yen through an initial public offering of units. Those units are listed on the J-REIT section of the Tokyo Stock Exchange. As of November 30, 2012, DOI had ownership or beneficiary interests in 38 office properties with approximately 208,733 square meters of rentable office space and had leased office space to 376 tenants engaged in a variety of businesses. The occupancy rate for the office properties was approximately 96.4%.

Basis of Presentation The accompanying financial statements have been prepared in accordance with the provisions set forth in the Investment Trust Law of Japan and its related accounting regulations, and in conformity with accounting principles generally accepted in Japan (hereinafter, “Japanese GAAP”), which are different in certain respects as to application and disclosure requirements of International Financial Reporting Standards. The accompanying financial statements have been restructured and translated into English from the financial statements of DOI prepared in accordance with Japanese GAAP. Some supplementary information included in the statutory Japanese language financial statements, but not required for fair presentation, is not presented in the accompanying financial statements. DOI does not prepare consolidated financial statements, as DOI has no subsidiaries. Note 2 – Summary of Significant Accounting Policies Investment Properties Investment properties are recorded at cost, which includes the allocated purchase price, related costs and expenses for acquisition of the office properties and the beneficiary interests of properties in trust. Property and equipment balances are depreciated using the straight-line method over the estimated useful lives. The estimated useful lives of the principal tangible fixed assets (including assets held in trust) are as follows: As of November 30, 2012 As of May 31, 2012 Buildings and structures 2-56 years 2-56 years Machinery and equipment 2-23 years 2-23 years Tools, furniture and fixtures 5-18 years 5-18 years Costs related to the renovation, construction and improvement of properties are capitalized. Expenditures for repairs and maintenance which do not add to the value of a property or prolong its useful life are expensed as incurred.

Deferred Investment Corporation Bond Issuance Costs Deferred investment corporation bond issuance costs are amortized using the straight-line method over the respective terms of the bonds.

Income Taxes Income taxes are accounted for on the basis of income for financial statement purposes. The tax effect of temporary differences between the amounts of assets and liabilities for financial statements and for income tax purposes is recognized as deferred taxes.

Real Estate Taxes Real estate taxes are imposed on properties on a calendar year basis and expensed when incurred. In terms of newly purchased properties, DOI capitalizes a portion of the real estate taxes that relate to a period from the purchase date of each property until the end of the calendar year as part of the acquisition cost of the relevant property. Capitalized real estate taxes amounted to 7,948 thousand yen for the period ended November 30, 2012 and 6,196 thousand yen for the period ended May 31, 2012.

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

Hedge Accounting DOI conducts derivative transactions in order to hedge against risks defined in its Articles of Incorporation based on its risk management policy. DOI utilizes derivative financial instruments such as interest-rate swap agreements only for the purpose of hedging its exposure to changes in interest rates. DOI deferred recognition of gains or losses resulting from changes in fair value of interest-rate swap agreements because its interest-rate agreements met the criteria for deferral hedging accounting. However, DOI applies special treatment to the interest-rate swap agreements that meet the criteria for such special treatment. Under the special treatment, interest-rate swaps are not remeasured at fair value: instead, the net amount paid or received under the interest-rate swap agreements is recognized and included in interest expense. The hedge effectiveness for interest-rate swap agreements is assessed each fiscal period except for those that meet the criteria of special treatment.

Accounting Treatment of Beneficiary Interests in Trust Assets Including Real Estate For trust beneficiary interests in real estate, all accounts of assets and liabilities within assets in trust, as well as all income generated and expenses incurred from assets in trust, are recorded in the relevant balance sheet and income statement accounts.

Consumption Taxes Consumption taxes are excluded from transaction amount. Non-deductible consumption taxes are recognized as expenses. Note 3 – Schedule of Tangible Fixed Assets of Investment Properties Investment properties as of November 30, 2012 and May 31, 2012 consisted of the following: (Thousands of yen) As of November 30, 2012 As of May 31, 2012 Acquisition Accumulated Acquisition Accumulated costs depreciation Book value costs depreciation Book value Land including trust accounts 248,877,227 – 248,877,227 247,785,634 – 247,785,634 Buildings and structures 70,528,102 (14,516,629) 56,011,473 69,544,514 (13,245,933) 56,298,581 including trust accounts Machinery and 802,224 (342,213) 460,011 793,278 (313,458) 479,820 equipment in trust Tools, furniture and fixtures 88,625 (42,782) 45,843 84,238 (36,223) 48,015 including trust accounts Construction in progress 353,449 – 353,449 22,722 – 22,722 including trust accounts Other tangible fixed assets 9,759 (9,759) – 9,759 (9,759) – including trust accounts Total 320,659,386 (14,911,383) 305,748,003 318,240,145 (13,605,373) 304,634,772 Note 4 – Advanced Depreciation for Tangible Fixed Assets Acquired by Government Subsidies, Etc. Government subsidies of 32,898 thousand yen are deducted from the acquisition cost of the buildings in trust as of November 30, 2012 and May 31, 2012 and presented on statement of income as loss on reduction of tangible fixed assets for the period ended May 31, 2012. Note 5 – Net Assets DOI issues only non-par value units in accordance with the Investment Trust Law of Japan and all of the issue prices of new units are designated as stated capital. DOI maintains at least 50,000 thousand yen as the minimum amount of net assets, as required by the Investment Trust Law of Japan. VI. Notes to Financial Statements 27 Note 6 – Long-Term Debt and Investment Corporation Bonds Long-term debt and investment corporation bonds as of November 30, 2012 and May 31, 2012 consisted of the following: (Thousands of yen) As of As of November 30, May 31, 2012 2012 Unsecured loans due 2012 to 2018, principally from banks and insurance companies with interest rates mainly ranging from 0.6% to 1.8% 103,581,250 102,891,250 2.8% unsecured bond due 2019 3,500,000 3,500,000 1.9% unsecured bond due 2013 5,000,000 5,000,000 Total 112,081,250 111,391,250 [Note] The interest rate presented is the spot rate as of November 30, 2012. As for long-term debts which were hedged by interest-rate swaps for the purpose of avoiding interest rate fluctuation risk, the swapped interest rates are used. The annual maturities of long-term debt and investment corporation bonds as of November 30, 2012 were as follows: (Thousands of yen) Due within one year 27,981,250 Due after one to two years 33,900,000 Due after two to three years 16,600,000 Due after three to four years 2,000,000 Due after four to five years 22,750,000 Due after five years 8,850,000 Note 7 – Operating Revenues and Property-Related Expenses Operating revenues and property-related expenses for the periods ended November 30, 2012 and May 31, 2012 were as follows: (Thousands of yen) For the six months ended For the six months ended November 30, 2012 May 31, 2012 A. Operating revenues Rental revenues 7,384,164 7,338,153 Other revenues related to property leasing 182,050 93,360 Total operating revenues 7,566,214 7,431,513 B. Property-related expenses Consignment expenses 549,516 573,208 Utilities expenses 737,021 654,823 Taxes and dues 652,110 637,797 Non-life insurance expenses 11,848 11,832 Repair expenses 280,099 233,868 Depreciation 1,305,782 1,367,438 Other property-related expenses 65,511 54,138 Total property-related expenses 3,601,887 3,533,104 C. Operating income from property leasing [A – B] 3,964,327 3,898,409 Note 8 – Income Taxes DOI is subject to income taxes in Japan. The effective tax rate on DOI’s income based on applicable Japanese tax law was estimated as 0.04% for the period ended November 30, 2012 and 0.05% for the period ended May 31, 2012. The following table summarizes the significant differences between the statutory tax rates and DOI’s effective tax rates for financial statement purposes. For the six months ended For the six months ended November 30, 2012 May 31, 2012 Statutory tax rate 36.59% 39.33% Deductible dividends (36.57) (39.31) Others 0.02 0.03 Effective tax rate 0.04% 0.05% DOI was established as an investment corporation under the Investment Trust Law of Japan, and as long as an investment corporation distributes to its unitholders at least 90% of earnings available for dividends for a period and other requirements prescribed in the Special Taxation Measures Law of Japan are met, the investment corporation is allowed to deduct the total amount of dividends in calculating its taxable income under Japanese tax regulations. 28 The significant components of deferred tax assets and liabilities as of November 30, 2012 and May 31, 2012 were as follows: (Thousands of yen) As of November 30, 2012 As of May 31, 2012 Deferred tax assets: Accrued enterprise tax 18 17 Deferred losses on hedges 19,227 4,816 Total deferred tax assets 19,245 4,833 Deferred tax liabilities: Deferred gains on hedges 409 3,643 Total deferred tax liabilities 409 3,643 Net deferred tax assets 18,836 1,190 Adjustments of Deferred Tax Assets and Liabilities for Enacted Changes in Effective Statutory Tax Rate The Act to Revise the Income Tax Act, etc., in Order to Construct a Tax System Addressing Changes in the Socio-Economic Structure (Act No. 114 of 2011) and the Act on Special Measures for Securing Necessary Financial Resources to Implement Measures to Rebuild Areas Devastated by the Great East Japan Earthquake (Act No. 117 of 2011) were promulgated on December 2, 2011. In accordance with the promulgation, the effective statutory tax rate used to calculate the deferred tax assets and deferred tax liabilities concerning the temporary differences, etc. expected to be reversed in the accounting periods starting on and after April 1, 2012, was changed to 36.59%, and the effective statutory tax rate used to calculate the deferred tax assets and deferred tax liabilities concerning the temporary differences, etc. expected to be reversed in the accounting periods starting on and after April 1, 2015, will be changed to 34.16%, respectively. The effect of these changes is immaterial.

Note 9 – Per Unit Information Information about net income per unit for the periods ended November 30, 2012 and May 31, 2012 and net assets per unit as of November 30, 2012 and May 31, 2012 were as follows. The computation of net income per unit is based on the weighted average number of units outstanding during the period. The computation of net assets per unit is based on the number of units outstanding at each period end. As of November 30, 2012 As of May 31, 2012 Net assets per unit 508,132 yen 507,331 yen Net income per unit 5,986.10 yen 5,106.94 yen Net income per unit is calculated by dividing the net income by the daily weighted average number of investment units issued and outstanding. The diluted net income per unit is not stated as there are no diluted investment units. (Note) The basis for calculating the net income per unit is as follows. As of November 30, 2012 As of May 31, 2012 Net income (thousands of yen) 2,369,286 2,021,316 Amount not available to ordinary unitholders (thousands of yen) – – Net income available to ordinary unitholders (thousands of yen) 2,369,286 2,021,316 Average number of units during the period (units) 395,798 395,798 Note 10 – Financial Instruments (For the six months ended November 30, 2012 and May 31, 2012) (1) Status of Financial Instruments (A) Policy for financial instruments DOI procures various financing methods (such as borrowings, issuance of investment corporation bonds, issuance of investment units) for acquisition and renovation of investment properties, payments of dividends and reimbursement of bank borrowings. In financing through interest-bearing debt, to secure stable financing capacity and reduce future risk of rising interests, DOI secures long-term fixed-rate borrowings with well-diversified maturities. DOI manages surplus funds with safe and highly liquid money claims and securities (in principle, deposits). Derivative transactions are only for the purpose of reducing risk of future interest rate fluctuations.

VI. Notes to Financial Statements 29 (B) Types and risks of financial instruments and related risk management system Proceeds from the financing of debts and investment corporation bonds are used mainly to acquisition of investment properties and reimbursement of current debts and bonds. While these debts and bonds are exposed to liquidity risk, DOI manages the risk by maintaining the LTV ratio at low levels, diversifying maturities, keeping the ratio of long-term debt to total debt at high levels, and diversifying lenders with particular focus on domestic financial institutions. Bank borrowings with floating interest rates are exposed to the risk of future interest rate fluctuations and DOI manages that using derivative transactions such as interest-rate swap agreements. DOI evaluates the effectiveness of hedges by comparing the accumulated cash-flow changes of hedged items and that of hedging items, and then verifies the ratio of both amounts of changes. Furthermore, DOI omits assessment of hedge effectiveness for the interest-rate swap agreements which meet the criteria of special treatment. Execution and management of derivative transactions have been carried out based on the regulations defined in the basic policy of risk management. Security deposits represent funds deposited by tenants, and DOI is exposed to the risk of refunding deposits in the event that a tenant terminates the contract. However, such risk is limited by reserving some parts of the funds. Deposits are used for investing DOI’s surplus funds. These deposits are exposed to credit risks such as bankruptcy of the depository financial institutions. DOI manages credit risk by restricting the tenor of the deposit relatively short and setting a minimum credit rating requirement for the depository financial institutions. (C) Supplementary explanation for fair value of financial instruments The fair value of financial instruments is based on their quoted market price, if applicable. When there is no quoted market price available, fair value is reasonably estimated. As certain assumptions are used for the estimation of fair value, the result of such estimation may differ if different assumptions are used. Also, the contractual amounts of derivative transactions do not represent the market risk involved in these derivative transactions. (2) Estimated Fair Value of Financial Instruments The book value, fair value and difference between the two as of November 30, 2012 and May 31, 2012 are as follows. The financial instruments whose fair value is extremely difficult to estimate are excluded from the following table. (As of November 30, 2012) (Thousands of yen) Book Value Fair Value Difference Cash and cash equivalents 16,046,965 16,046,965 – Total 16,046,965 16,046,965 – Investment corporation bonds due within one year 5,000,000 5,004,000 4,000 Long-term debt due within one year 22,981,250 22,983,567 2,317 Investment corporation bonds 3,500,000 3,500,000 – Long-term debt 80,600,000 80,596,241 (3,759) Total 112,081,250 112,083,808 2,558 Derivative transactions(*) (51,520) (51,520) – (*) The value of assets and liabilities arising from derivatives is shown at net value and with the amount in parenthesis indicating the net liability position. (As of May 31, 2012) (Thousands of yen) Book Value Fair Value Difference Cash and cash equivalents 16,801,099 16,801,099 – Total 16,801,099 16,801,099 – Long-term debt due within one year 22,291,250 22,327,560 36,310 Investment corporation bonds 8,500,000 8,507,500 7,500 Long-term debt 80,600,000 80,377,338 (222,662) Total 111,391,250 111,212,398 (178,852) Derivative transactions(*) (3,205) (3,205) – (*) The value of assets and liabilities arising from derivatives is shown at net value and with the amount in parenthesis indicating the net liability position. Notes: 1. Methods to estimate fair value of financial instruments and derivative transactions

30 Assets (1) Cash and cash equivalents As these instruments are settled in short period of time, their fair value and book value are nearly identical. Therefore, for these items, the book value is assumed as the fair value. Liabilities (1) Investment corporation bonds due within one year and investment corporation bonds The fair value of investment corporation bonds is based on their quoted market price, if available. When there is no quoted market price available, their book value is assumed as their fair value, as their fair value and book value are nearly identical because of floating interest rates and no significant changes in the DOI’s credit risk after issuing the bonds. (2) Long-term debt due within one year and long-term debt For long-term debt with floating interest rates, their fair value and book value are nearly identical and there are no significant changes in the DOI’s credit risk after borrowing. Therefore, for these items, their book value is assumed as their fair value. For long-term debt with fixed interest rates, their fair value is based on the present value of principle and interest cash flows discounted at the current interest rate estimated to be applied if similar new debt is entered into. However, the fair value of certain floating-rate long term debt that qualifies for the special treatment of interest-rate swaps is determined by discounting the sum of its principal and interest payments net of any cash flows from the interest-rate swaps.

Derivative Transactions (1) Derivatives to which hedge accounting is not applied Not applicable. (2) Derivatives to which hedge accounting is applied

(As of November 30, 2012) (Thousands of yen) Method of Hedge Contract Amount Fair Accounting Type of Derivative Transactions Hedged Items (due after one year) Value(*) Interest rate swap transactions Deferral hedge Receive floating Long-term debt 43,900,000 (51,520) accounting method and pay fixed (37,900,000) Special treatment Interest rate swap transactions 27,350,000 for interest rate swap Receive floating Long-term debt (27,350,000) –(**) transactions and pay fixed 71,250,000 Total (65,250,000) (51,520) *The fair value is provided by the financial institution. **The values of derivatives qualifying for special treatment of interest rate swap transactions are included in that of related long-term debt. This is because such swaps are handled together with hedged long-term debt.

(As of May 31, 2012) (Thousands of yen) Method of Hedge Type of Derivative Transactions Hedged Items Contract Amount Fair Accounting (due after one year) Value(*) Deferral hedge Interest rate swap transactions Receive floating Long-term debt 41,900,000 (3,205) accounting method and pay fixed (41,900,000) Special treatment Interest rate swap transactions for interest rate swap Receive floating Long-term debt 13,000,000 –(**) transactions and pay fixed (13,000,000) Total 54,900,000 (54,900,000) (3,205) *The fair value is provided by the financial institution. **The values of derivatives qualifying for special treatment of interest rate swap transactions are included in that of related long-term debt. This is because such swaps are handled together with hedged long-term debt.

2. Financial instruments whose fair value is extremely difficult to estimate. Tenant security deposits (with a book value of 10,482,828 thousand yen in November 30, 2012 and 10,616,879 thousand yen in May 31, 2012) that have been deposited from tenants are not marketable and the actual deposit period cannot be reliably determined, thus making it impossible to reasonably estimate their future cash flows, and therefore, it is considered to be extremely difficult to estimate their fair value.

VI. Notes to Financial Statements 31 3. Redemption schedule for money claims

(As of November 30, 2012) (Thousands of yen) Due within Due after Due after Due after Due after Due after 1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years 5 years Cash and cash equivalents 16,046,965 – – – – – Total 16,046,965 – – – – – (As of May 31, 2012) (Thousands of yen) Due within Due after Due after Due after Due after Due after 1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years 5 years Cash and cash equivalents 16,801,099 – – – – – Total 16,801,099 – – – – – 4. Redemption schedule for investment corporation bonds and long-term debt

(As of November 30, 2012) (Thousands of yen) Due within Due after Due after Due after Due after Due after 1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years 5 years Investment corporation bonds due within one year 5,000,000 – – – – – Long-term debt due within one year 22,981,250 – – – – – Investment corporation bonds – – – – – 3,500,000 Long-term debt – 33,900,000 16,600,000 2,000,000 22,750,000 5,350,000 Total 27,981,250 33,900,000 16,600,000 2,000,000 22,750,000 8,850,000

(As of May 31, 2012) (Thousands of yen) Due within Due after Due after Due after Due after Due after 1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years 5 years Long-term debt due within one year 22,291,250 – – – – – Investment corporation bonds – 5,000,000 – – – 3,500,000 Long-term debt – 32,400,000 29,500,000 2,000,000 16,700,000 – Total 22,291,250 37,400,000 29,500,000 2,000,000 16,700,000 3,500,000

Note 11 – Investment and Rental Properties DOI owns office buildings (including land) for rent in Tokyo and other areas. The book value, net changes in the book value and the fair value of the investment and rental properties are as follows. (For the six months ended November 30, 2012) (Thousands of yen) Book Value Fair value as of As of Change As of November 30, 2012 May 31, 2012 during the period(*1) November 30, 2012 307,324,542 782,731 308,107,273 276,330,000 (For the six months ended May 31, 2012) (Thousands of yen) Book Value Fair value as of As of Change As of May 31, 2012 November 30, 2011 during the period(*1) May 31, 2012 305,878,733 1,445,809 307,324,542 273,530,000

(Note 1) The book value represents the acquisition cost less accumulated depreciation. (Note 2) Significant changes (*1) For the six months ended November 30, 2012, the major reason of increase is acquisition of “West Park Osaki” (1,650,000 thousand yen). The major reason of decrease is depreciation (1,305,782 thousand yen). (*2) For the six months ended May 31, 2012, the major reason of increase is acquisition of the limited proprietary rights for the land of “Daiwa Sarugakucho” (190,000 thousand yen) and “Nihonbashi Hongokucho Tosei Building” (1,721,000 thousand yen). The major reason of decrease is depreciation (1,367,438 thousand yen). (Note 3) The fair values as of November 30, 2012 and May 31, 2012 represent the sum of appraisal values estimated by external real estate appraisers. Income and loss from investment and rental properties for the period ended November 30, 2012 and May 31, 2012 are disclosed in Note 7.

32 Note 12 – Transactions with Related Parties (For the six months ended November 30, 2012) Classification Parent company, interested party Asset custodian Name of company, etc. Daiwa Securities Group Inc. Sumitomo Mitsui Trust Bank, Limited Location Chiyoda-ku, Tokyo Chiyoda-ku, Tokyo Capital stock 247.3 billion yen 342 billion yen Business description Holding company Bank Percentage of voting 13.11% rights, etc. held by directly held in DOI – related party 32.57% (held in DOI) indirectly held in DOI Relationship with Provision of capital Provision of capital related party Payment of interest expense on Payment Payment of Borrowing Repayment of interest Nature of transaction investment corporation bonds borrowing expense (Notes 1 and 2) of capital of capital expense (Note 3) (Note 3) Amount of transaction 50,313 5,350,000 5,383,750 76,523 20,682 (thousands of yen) Investment Other Long-term Long- debt due Long- Prepaid term Account corporation current – bonds liabilities within one term debt expenses prepaid year expenses Balance at end of period 3,500,000 21,167 5,000,000 8,350,000 – 23,584 63,831 (thousands of yen)

(For the six months ended May 31, 2012) Classification Parent company, interested party Asset custodian Name of company, etc. Daiwa Securities Group Inc. Sumitomo Mitsui Trust Bank, Limited [Note 4] Location Chiyoda-ku, Tokyo Chiyoda-ku, Tokyo Capital stock 247.3 billion yen 342 billion yen Business description Holding company Bank Percentage of voting 13.11% rights, etc. held by directly held in DOI – related party 32.57% (held in DOI) indirectly held in DOI Relationship with Provision of capital Provision of capital related party Payment Payment of Payment of interest expense on of interest Nature of transaction investment corporation bonds Borrowing of capital borrowing expense expense (Note 3) (Notes 1 and 2) (Note 3) Amount of transaction 49,576 3,000,000 58,510 16,671 (thousands of yen) Long- Investment Other Long-term debt due Long- Prepaid term Account corporation current term debt – expenses prepaid bonds liabilities within one year expenses Balance at end of period 3,500,000 20,430 5,383,750 8,000,000 – 28,483 25,157 (thousands of yen) Consumption taxes are not included in transaction amounts. (Note 1) Issuance conditions of the investment corporation bonds were decided by analyzing the spread of similar bonds, the difference of spread between senior bonds and subordinated bonds, and the past track record of similar bonds. (Note 2) Terms and conditions with interested parties were determined based on the assets manager’s office regulation which was established to prevent the conflict of interest. (Note 3) Terms of transaction were determined based on the market trend. (Note 4) The Sumitomo Trust and Banking Co., Ltd, The Chuo Mitsui Trust and Banking Company, Limited, and Chuo Mitsui Asset Trust and Banking Company, Limited merged on April 1, 2012, and the company name was changed to Sumitomo Mitsui Trust Bank, Limited.

VI. Notes to Financial Statements 33 Note 13 – Significant Subsequent Events (1) Acquisition of Assets (A) DOI acquired a trust beneficial interest in real estate on December 3, 2012. Overview of the Asset Trust beneficial interest in real estate (Compartmentalized ownership*) (a) Type of asset acquired (*Percentage of voting rights 359,323/685,495) (b) Property name shinyon curumu (c) Location 4-2-23 Shinjuku, Shinjuku-ku, Tokyo (d) Acquisition price 5,090,000 thousand yen (excluding acquisition costs and consumption tax, etc.) (e) Date of agreement November 27, 2012 (f) Date of delivery December 3, 2012 (g) Seller Undisclosed (B) DOI acquired a trust beneficial interest in real estate on February 1, 2013. Overview of the Asset (a) Type of asset acquired Trust beneficial interest in real estate (b) Property name Honshu Meieki Building (c) Location 1-21-19 Meieki-Minami Nakamura-ku, Nagoya-shi, Aichi Prefecture (d) Acquisition price 5,300,000 thousand yen (excluding acquisition costs and consumption tax, etc.) (e) Date of agreement December 26, 2012 (f) Date of delivery February 1, 2013 (g) Seller Undisclosed (C) DOI decided to acquire trust beneficial interests in real estate on December 26, 2012. Overview of the Asset (a) Type of asset acquired Trust beneficial interest in real estate (b) Property name Kamiooka Eye Mark (c) Location 1-14-6 Kamiooka Nishi, Konan-ku Yokohama-shi, Kanagawa Prefecture (d) Acquisition price 2,000,000 thousand yen (excluding acquisition costs and consumption tax, etc.) (e) Date of agreement December 26, 2012 (f) Date of delivery March 1, 2013 (expected) (g) Seller Shimizu Corporation

(2) Borrowing of Funds (A) DOI borrowed funds on December 3, 2012. These funds were allocated to acquisition of the property described in “(1) Acquisition of Assets (A)” and its related costs.

Date of Balance Date of Repayment Lender (thousands Interest rate loan maturity method Notes of yen) Development Bank Nov. 30, of Japan Inc. Dec. 3, 2012 2,000,000 0.847% 2017 Bullet payment Unsecured 3 month Japanese Shinsei Bank, Nov. 30, Bullet payment Unsecured Limited Dec. 3, 2012 2,000,000 Yen LIBOR 2017 +0.40% (Note) (Note) Interest payment dates are the last business day of February, May, August and November, and the date of maturity. Interest rate is calculated based on the 3-month Japanese Yen LIBOR which Japanese Bankers Association (“JBA”) releases two business days prior to the interest payment date.

34 (B) DOI borrowed funds on February 1, 2013. These funds were allocated to acquisition of the property described in “(1) Acquisition of Assets (B)” and its related costs.

Date of Balance Date of Repayment Lender loan (thousands Interest rate maturity method Notes of yen) 1 month Japanese Sumitomo Mitsui Feb. 28, Bullet payment Unsecured Banking Corporation Feb. 1, 2013 2,000,000 Yen TIBOR(*) 2020 + 0.43% (Note) 1 month Japanese Sumitomo Mitsui Feb. 28, Bullet payment Unsecured Trust Bank, Limited Feb. 1, 2013 1,500,000 Yen TIBOR(*) 2020 + 0.43% (Note) Tokio Marine & Nichido Fire Feb. 1, 2013 1,000,000 0.6899% Nov. 30, Bullet payment Unsecured Insurance Co., Ltd. 2017 The Yamaguchi Nov. 30, Bank, Ltd. Feb. 1, 2013 500,000 0.6899% 2017 Bullet payment Unsecured 1 month Japanese The Higashi-Nippon Feb. 28, Bullet payment Unsecured Bank, Limited Feb. 1, 2013 500,000 Yen TIBOR(*) 2018 + 0.35% (Note) (Note) Interest payment shall be paid at the end of every month (If any such date is not a business day, the immediately following business day, and if such date falls within the next month, the immediately last business day) and the repayment date. Interest Rate is calculated based on 1 month Japanese Yen TIBOR which Japanese Bankers Association (“JBA”) announces two business days prior to the first day of the applicable period. (C) DOI decided to borrow funds on January 28, 2013. These funds will be allocated to acquisition of the property described in “(1) Acquisition of Assets (C)” and its related costs.

Date of Balance Date of Repayment Lender loan (thousands Interest rate maturity method Notes of yen) 1 month Japanese Resona Bank Feb. 28, Bullet payment Unsecured Limited Feb. 1, 2013 2,000,000 Yen TIBOR(*) 2020 + 0.43% (Note) (Note) Interest payment shall be paid at the end of every month (If any such date is not a business day, the immediately following business day, and if such date falls within the next month, the immediately last business day) and the repayment date. Interest Rate is calculated based on 1 month Japanese Yen TIBOR which Japanese Bankers Association (“JBA”) announces two business days prior to the first day of the applicable period. (*) Please refer to Japanese Yen TIBOR from the website of JBA. (http://www.zenginkyo.or.jp/en/tibor/)

Note 14 – Additional Information Acquisition of Assets DOI determined to acquire a trust beneficial interest in real estate on November 27, 2012. Overview of the Asset Trust beneficial interest in real estate (Compartmentalized ownership*) (a) Type of asset (*Percentage of voting rights 326,172/685,495) (b) Property name shinyon curumu (c) Location 4-2-23 Shinjuku, Shinjuku-ku, Tokyo (d) Acquisition price 4,560,000 thousand yen (excluding acquisition costs and consumption tax, etc.) (e) Date of agreement November 27, 2012 (f) Date of delivery April 12, 2013 (expected) (g) Seller Undisclosed

VI. Notes to Financial Statements 35 VII. Independent Auditors’ Report

36 VII. Independent Auditors’ Report VIII. Statements of Cash Flows [Information Only]

For the six months ended November 30, 2012 and May 31, 2012 (Thousands of yen)

For the six months For the six months ended ended November 30, 2012 May 31, 2012 Cash Flows from Operating Activities: Income before income taxes 2,370,262 2,022,298 Depreciation and amortization 1,306,936 1,368,584 Amortization of bond issuance costs 8,583 8,583 Interest expense 631,875 800,281 (Increase) Decrease in tenant receivables 23,151 (99,513) Subsidy income – (32,898) Loss on reduction of tangible fixed asset – 32,898 Increase (Decrease) in accounts payable (26,822) 226,354 Increase (Decrease) in rent received in advance (44,959) 14,922 Cash payments of interest expense (634,769) (805,822) (Increase) Decrease in consumption taxes refundable – 84,178 Other, net (168,337) 200,460 Net Cash Provided by Operating Activities 3,465,920 3,820,325 Cash Flows from Investing Activities: Payments for purchases of investment properties (2,755,849) (2,637,291) Payments for purchases of intangible assets – (125,534) Proceeds from tenant security deposits 646,300 547,574 Payments for tenant security deposits (780,352) (779,948) Proceeds from subsidy – 32,898 Net Cash Used in Investing Activities (2,889,901) (2,962,301) Cash Flows from Financing Activities: Proceeds from long-term debt 17,500,000 21,200,000 Repayments of long-term debt (16,810,000) (19,725,625) Payment of dividends (2,020,153) (1,766,483) Net Cash Used in Financing Activities (1,330,153) (292,108) Net Change in Cash and Cash Equivalents (754,134) 565,916 Cash and Cash Equivalents at Beginning of Period 16,801,099 16,235,183 Cash and Cash Equivalents at End of Period 16,046,965 16,801,099

The statements of cash flows are not audited by any independent auditor.

Summary of Significant Accounting Policies [Information Only]

Cash and Cash Equivalents DOI considers all highly liquid investments with original maturity of three months or less to be cash and cash equivalents.

VIII. Statements of Cash Flows [Information Only] 37 IX. Investor Information

History of Investment Unit Price

(yen) 400,000 8,000 (units)

Investment unit price (left axis) Trading volume (right axis) 350,000 7,000

300,000 6,000

250,000 5,000

200,000 4,000

150,000 3,000

100,000 2,000

50,0000 1,000

0 0 2010 2011 2012 Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov.

Overview of Investment Units and Unitholders (as of November 30, 2012)

■ No. of investment units by investor type ■ No. of unitholders by investor type Individuals/others Financial institutions 11,024 Foreigners units (6.8%) Individuals/others 34,742 units (8.8%) 148,487 units (37.5%) 27,016 (97.1%) 18 14th Financial institutions (0.2%) Fiscal Period 146×57 Other domestic 175 Total: 395,798 units Other domestic corporations 183,787 units (46.4%) Securities firms 1,766 units (0.5%) corporations (1.5%) 122 Foreigners (1.1%) Individuals/others Financial institutions Foreigners 38,833 units (9.8%) 15 37,409 units (9.5%) 133,482 units (33.7%) Securities firms (0.1%)

13th Total 11,354 Fiscal Period Total: 395,798 units Other domestic corporations 131,832 units (33.3%) Securities firms 54,242 units (13.7%)

Top Ten Unitholders (as of November 30, 2012) IR Calendar

January 16, 2013 ・Announcement of financial results for 14th Fiscal Period Number of Percentage Name of Investor Units Owned Share February 12, 2013 ・Sending of Japanese version Business Report for 14th Fiscal Period (Statement of Financial Performance) 8000 1. Daiwa Investment Management Inc. 128,905 units 32.6% February 13, 2013 ・Start paying distributions for 14th Fiscal Period 2. Japan Trustee Services Bank, Ltd. (trust account) 82,708 units 20.9%7000

Nov. 3. Daiwa Securities Group Inc. 51,893 units 13.1%6000 Trust & Custody Services Bank, Ltd. (securities Aug. End of 4. 23,769 units 6.0% ﬁscal period investment trust account) 5000 July Jan. The Nomura Trust and Banking Co., Ltd. (investment 5. 20,150 units 40005.1% trust account) Feb. 0 20 40 60 80 100 6. The Master Trust Bank of Japan, Ltd. (trust account) 19,212 units 4.9% May End of 7. Nomura Bank (Luxembourg) S.A. 7,359 units 1.9% ﬁscal period July 2013 ・Announcement of financial results for 8. Individual 2,520 units 0.6% 15th Fiscal Period 9. State Street Bank and Trust Company 505104 1,668 units 0.4% August 2013 ・Sending of Japanese version Business Report for 15th Fiscal Period (Statement of Financial Performance) 10. State Street Bank and Trust Company 505223 1,593 units 0.4% August 2013 ・Start paying distributions for Note: The percentage share figures are rounded to the first decimal place. 15th Fiscal Period

38 Investor Memo

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

General Meeting of Investors Held at least once every two years

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

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

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

Newspaper in which notice is posted Nihon Keizai Shimbun

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

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

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

Provision of Information via Website

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

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

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

IX. Investor Information 39 Fiscal Period Business Report th (Statement of Financial Performance) 14 June 1, 2012 ~ November 30, 2012

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