Uploaded 16Th Fiscal Period Business Report

Fiscal Period Business Report th (Statement of Financial Performance) 16 June 1, 2013 - November 30, 2013

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

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

To Our Investors

We would like to express our deep gratitude to all our unitholders for your support of Daiwa Office Investment Corporation (DOI). In the 16th Fiscal Period, DOI posted operating revenues of 8,432 million yen and operating income of 3,677 million yen. Our distribution per unit for the 16th Fiscal Period is 7,478 yen, an increase by 936 yen from the 15th Fiscal Period. See page 4 for financial and management highlights

As for new acquisitions in the 16th Fiscal Period DOI acquired Tousen Dogenzaka Daini Building (4,500 million yen), Akasaka Business Place (9,200 million yen) and Nisseki Shibuya Building (7,000 million yen) for a total of 20,700 million yen. With this, the asset size has arrived at 350 billion yen. See page 8 for details of external growth

The overall portfolio occupancy rate increased to 96.3% in the 16th Fiscal Period with the recovery of the occupancy rates of Daiwa Tsukijiekimae, shinyon curumu and other properties subject to leasing improvement. Furthermore, DOI was awarded the best rating of “Green Star” from the GRESB Survey for sustainability for the second consecutive year. See page 11 for details of internal growth

In financial matters, DOI’s issuer rating was upgraded from A (stable) to A+ (stable) due to DOI’s steady external growth, maintenance of a high occupancy rate, conservative leverage and debt structure, the significant improvement in debt costs, etc. DOI will continue to aim to reduce future refinancing risk by extending borrowing periods and diversifying repayment dates. See page 14 for details of financial condition

DOI will continue to focus on establishing its portfolio with a particular emphasis on office buildings in favorable locations centering on Tokyo, and aim to achieve an asset size of 500 billion yen while striving to increase the competitiveness of existing properties. We wish for the continued success of our unitholders and ask for your continued support of DOI.

Nobuaki Omura Executive Director of Daiwa Office Investment Corporation Contents

I. Overview of Daiwa Office Investment Corporation II. Asset Management Report………………………… 16

To Our Investors……………………………………………… 2 III. Balance Sheets… …………………………………… 22 Characteristics and Strategies of Daiwa Office Investment Corporation ………………………… 3 IV. Statements of Income……………………………… 24 Financial and Management Highlights………………………… 4 V. Statements of Changes in Unitholders’ Equity …… 25 Overview of Portfolio (portfolio list)…………………………… 5

Overview of Portfolio (portfolio distribution)…………………… 6 VI. Notes to Financial Statements…………………… 26

External Growth Measures…………………………………… 8 VII. Independent Auditors’ Report…………………… 36 Internal Growth Measures… ……………………………… 11 VIII. Statements of Cash Flows [Information Only]…… 37 Financial Conditions… …………………………………… 14

Description of Asset Manager……………………………… 15 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 Places priority on owning office buildings Operates Shinjuku Maynds Tower at the knowhow 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 2.9% Five Central A Class buildings Greater Tokyo Wards of Tokyo (Shinjuku Maynds Tower) 6.5% 90.6% 37.9%

B Class buildings Based on acquisition price 62.1% Based on acquisition price

(Note) Please note that the percentages in the above graphs are as of November 30, 2013.

Growth Strategies 500.0 Activities for solid growth (billion yen) Proactive investment in 500 ・Continue acquiring Achievement of a 500 billion yen asset size selectively chosen properties competitive properties ・Leverage borrowing Keep the medium-to-long term, upper-limit 400 capacity LTV target range within 40%~50% 352.7 332.0 311.3 313.2 314.9

300 Establishment of stable revenue base ・Property management Continuation of “Bonji-Tettei” activities Improve occupancy rate and increase rent 200 revenue Further strengthen relations with tenants

・Maintain and Capture tenant needs by reinforcing ties with 100 improve property property managers value Strategic renewals and lease-up activities ・Financial activities Reduce reﬁnancing risk by extending borrowing periods and diversifying 0 Fiscal period Fiscal period Fiscal period Fiscal period Fiscal period Acquisition repayment dates ended ended ended ended ended target November 2011 May 2012 November 2012 May 2013 November 2013

Distribution per Unit Fiscal period ended November 2013 yen (actual) (16th Fiscal Period) 7,478

(Note) The forecasts on distribution are 5000 calculated based on certain assumptions and may vary due to Fiscal period ending May 2014 yen (forecast) changes in the status and other (17th Fiscal Period) 7,540 factors. Moreover, the forecasts 4000 set forth herein should not be Fiscal period ending November 2014 construed as a guarantee of yen (forecast) (18th Fiscal Period) 7,570 distribution amounts. 3000

I. Overview of Daiwa Office Investment Corporation 2000 3

1000

0 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

3,677 7,500 8,432 3,000 3,317 3,308 3,146 7,605 7,431 7,566 7,615 3,090

5,000 2,000

2,500 1,000

0 0 12th Period 13th Period 14th Period 15th Period 16th Period 12th Period 13th Period 14th Period 15th Period 16th Period

■ Net Income ■ Asset Size (million yen) (billion yen) 3,000 350 2,959 352.7 2,589 332.0 2,369 2,000 300 311.3 313.2 314.9 2,021 1,766

1,000 250

0 200 12th Period 13th Period 14th Period 15th Period 16th Period 12th Period 13th Period 14th Period 15th Period 16th Period

■ Distribution Per Unit (yen) 10,000 7,400 6,550 6,009 5,500 7,200 7,300 Forecast from one year earlier Forecast from six months earlier Actual dividends 5,350 8,000 6,874 6,250 7,478 7,540 7,570 4,154 4,850 5,500 3,903 3,600 4,850 6,542 6,000 3,180 5,986 5,246 2,843 4,100 5,107 3,176 3,280 4,464 4,000 3,240 3,671

2,000

0 8th Period 9th Period 10th Period 11th Period 12th Period 13th Period 14th Period 15th Period 16th Period 17th Period 18th Period

16th Period 15th Period 14th Period 13th Period 12th Period (November 2013) (May 2013) (November 2012) (May 2012) (November 2011) Operating revenues (million yen) 8,432 7,615 7,566 7,431 7,605 Operating income (million yen) 3,677 3,308 3,146 3,090 3,317 Ordinary income (million yen) 2,955 2,590 2,364 2,022 1,767 Net income (million yen) 2,959 2,589 2,369 2,021 1,766 Total number of units issued (units) 395,798 395,798 395,798 395,798 395,798 Net assets per unit (yen) 509,560 508,707 508,132 507,330 506,692 Distribution per unit (yen) 7,478 6,542 5,986 5,107 4,464 Total assets (million yen) 363,653 342,572 325,665 325,315 323,217 Loan-to-value (LTV) 40.6 37.5 34.4 34.2 34.0 (based on total asset value) (%) Number of investment properties 44 41 38 37 36 Asset size (billion yen) 352.7 332.0 314.9 313.2 311.3 Total rentable area (m2) 244,877.17 225,651.87 208,733.38 207,277.34 205,318.62 Occupancy rate (%) 96.3 95.0 96.4 94.3 92.4

4 Overview of Portfolio (portfolio list)

DOI has a portfolio comprised of one A Class building and 43 B Class buildings

(as of November 30, 2013) 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 8,246.64 SRC B3/12F July 1963 2003 14,100 4.0 14,900 leasehold Fee simple 9.17 2 Daiwa Ginza Annex Ginza, Chuo-ku, Tokyo 2,032.99 SRC B3/8F Aug. 1972 2003 3,050 0.9 3,140 Fee simple Fee simple 7.46 3 Daiwa Shibaura Shibaura, Minato-ku, Tokyo 9,626.38 SRC B1/12F Oct. 1987 8,265 2.3 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 1.3 4,100 Fee simple Fee simple 12.79 5 Daiwa Sarugakucho Sarugakucho, Chiyoda-ku, Tokyo 3,657.43 SRC 8F June 1985 3,190 0.9 3,160 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 0.8 2,850 Fee simple ownership 6.03 7 Daiwa Jingumae Jingumae, Shibuya-ku, Tokyo 2,198.61 RC B1/4F Dec. 1997 2,800 0.8 2,100 Fee simple Fee simple 12.01 8 Daiwa Shibadaimon Shibadaimon, Minato-ku, Tokyo 2,386.02 SRC RC B1/7F Nov. 1996 2,578 0.7 2,640 Fee simple Fee simple 2.99 9 Daiwa Misakicho Misakicho, Chiyoda-ku, Tokyo 2,137.53 S 8F July 1996 2,346 0.7 2,450 Fee simple Fee simple 6.68 10 Daiwa Shimbashi 510 Shimbashi, Minato-ku, Tokyo 2,676.14 SRC B1/8F Apr. 1974 2006 2,080 0.6 2,400 Fee simple Fee simple 8.13 11 Daiwa Tsukijiekimae Tsukiji, Chuo-ku, Tokyo 2,659.59 SRC 10F Jan. 1996 1,560 0.4 1,400 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 1,460 Fee simple Fee simple 9.70 13 Daiwa Tsukiji 616 Tsukiji, Chuo-ku, Tokyo 2,931.93 SRC B1/9F Mar. 1994 2,440 0.7 2,410 Fee simple Fee simple 7.69 14 Daiwa Tsukishima Tsukishima, Chuo-ku, Tokyo 8,426.85 S 5F July 1996 7,840 2.2 8,010 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 0.7 2,480 Fee simple Fee simple 7.84 16 Daiwa Azabudai Azabudai, Minato-ku, Tokyo 1,697.38 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 1.1 3,840 Fee simple ownership (100%) 9.61 18 Daiwa Nihombashi Honcho Nihombashi-Honcho, Chuo-ku, Tokyo 7,418.61 SRC B1/10F Jan. 1964 2006 7,420 2.1 7,130 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 1.3 4,590 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 1.0 3,100 Fee simple ownership (100%) 10.04 Compartmentalized 21 Sunline Building No. 7 Kojimachi, Chiyoda-ku, Tokyo 2,690.90 SRC B2/9F Oct. 1987 2,910 0.8 2,640 Fee simple ownership (100%) 8.62 Compartmentalized 22 Daiwa Onarimon Shimbashi, Minato-ku, Tokyo 11,615.37 SRC 9F Apr. 1973 2003 13,860 3.9 13,600 Fee simple ownership (100%) 5.45 23 Shinjuku Maynds Tower (Note 7) Yoyogi, Shibuya-ku, Tokyo 45,544.00 S SRC B3/34F Sept. 1995 133,800 37.9 113,000 Co-ownership Co-ownership 6.42 24 SHIBUYA EDGE Udagawacho, Shibuya-ku, Tokyo 2,480.65 RC B1/9F Aug. 2006 5,900 1.7 4,260 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 0.7 1,980 leasehold Fee simple 7.71 26 Daiwa Jimbocho Kanda-Jimbocho, Chiyoda-ku, Tokyo 3,164.26 S B1/8F Mar. 1997 4,150 1.2 2,860 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 1.4 4,710 Fee simple Fee simple 6.76 Compartmentalized 28 Daiwa Kudan Kudan Minami, Chiyoda-ku, Tokyo 2,882.61 SRC 9F Mar. 1987 4,000 1.1 2,920 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 1.6 6,460 Fee simple Fee simple 5.58 30 Jimbocho Place Kanda-Jimbocho, Chiyoda-ku, Tokyo 2,889.34 S 9F Feb. 2010 3,550 1.0 3,760 Fee simple Fee simple 6.13 31 E SPACE TOWER Maruyamacho, Shibuya-ku, Tokyo 13,960.87 S SRC B1/15F Oct. 2002 24,000 6.8 27,100 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 1,850 Fee simple Fee simple 6.93 Compartmentalized 33 shinyon curumu Shinjuku, Shinjuku-ku, Tokyo 6,756.45 S RC B2/11F Jan. 2012 9,650 2.7 10,300 Right of site ownership (100%) 6.50 34 Tosen Dogenzaka Daini Building Maruyamacho, Shibuya-ku, Tokyo 4,144.90 SRC B1/11F Mar. 1988 4,500 1.3 4,750 Fee simple Fee simple 5.89 35 Akasaka Business Place Akasaka, Minato-ku, Tokyo 8,789.84 SRC B2/7F Sept. 1990 9,200 2.6 10,400 Fee simple Fee simple 9.81 36 Nisseki Shibuya Building Shibuya, Shibuya-ku, Tokyo 6,327.95 S B1/12F Dec. 1988 7,000 2.0 7,280 Fee simple Fee simple 6.60 Subtotal 203,291.50 319,755 90.6 299,240 Greater Tokyo Area (Note 1) 37 Daiwa Kinshicho Kameido, Koto-ku, Tokyo 5,378.02 S B1/5F Jan. 1992 3,653 1.0 3,340 Fee simple Fee simple 7.42 38 Daiwa Higashi-Ikebukuro Higashi-Ikebukuro, Toshima-ku, Tokyo 4,589.17 SRC S B1/9F June 1993 2,958 0.8 3,330 Fee simple Fee simple 5.56 39 Benex S-3 Shin-Yokohama, Kohoku-ku, Yokohama City, Kanagawa 7,470.18 S SRC B1/12F Feb. 1994 4,950 1.4 3,290 Fee simple Fee simple 5.66 40 Daiwa Shinagawa North Kita-Shinagawa, Shinagawa-ku, Tokyo 6,549.98 SRC B1/11F July 1991 7,710 2.2 5,890 Fee simple Fee simple 5.56 41 West Park Osaki Osaki, Shinagawa-ku, Tokyo 1,786.58 S RC B1/6F Sept. 2007 1,650 0.5 1,980 Fee simple Fee simple 10.93 42 Kamiooka Eye Mark Building Kamiooka Nishi, Konan-ku, Yokohama City, Kanagawa 2,630.30 S SRC B3/7F May 2011 2,000 0.6 2,070 Fee simple Fee simple 12.30 Subtotal 28,404.23 22,921 6.5 19,900 Major Regional Cities (Note 1) 43 Daiwa Minami-Semba Minami-Semba, Chuo-ku, Osaka City, Osaka 5,719.54 SRC B1/8F Sept. 1986 4,810 1.4 2,780 Fee simple Fee simple 11.56 44 Honshu Meieki Building Meieki-Minami, Nakamura-ku, Nagoya City, Aichi 7,461.90 S 12F Dec. 2007 5,300 1.5 6,370 Fee simple Fee simple 12.11 Subtotal 13,181.44 10,110 2.9 9,150 Total 244,877.17 352,786 100.0 328,290 5.62 (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, 2013 (end of 16th 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, 2013 (end of 16th Fiscal Period). (Note 5) The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (December 2013) prepared by Sompo Japan Nipponkoa 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.

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

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

Shibuya-ku Shinjuku-ku Chuo-ku

33 shinyon curumu 38 Daiwa Higashi-Ikebukuro 2 Daiwa Ginza Annex 11 Daiwa Tsukijiekimae 12 Daiwa Tsukiji 13 Daiwa Tsukiji 616 14 Daiwa Tsukishima Ikebukuro Sta. Toshima-ku 38

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

Asakusa Sta.

Oshiage Sta.

Suidobashi Sta. 9 5 Akihabara Sta. 29 Daiwa Kayabacho Building 32 Nihonbashi Hongokucho Tosei Bldg. 7 Daiwa Jingumae 17 Daiwa Shibuya SS 24 SHIBUYA EDGE 34 Tosen Dogenzaka Daini Building 36 Nisseki Shibuya Building Kinshicho Sta. Kudanshita Sta. 30 26 Minato-ku 28 37 Shinjuku Sta. 32 33 25 15 23 Otemachi Sta. 18 Ningyocho Sta. Yotsuya Sta. Chiyoda-ku 21 Nihombashi Sta. 29 Koto-ku Tokyo Sta. 37 Daiwa Kinshicho Akasaka- 3 Daiwa Shibaura 4 Daiwa Minami-Aoyama 6 Daiwa A Hamamatsucho 8 Daiwa Shibadaimon 10 Daiwa Shimbashi 510 mitsuke Sta. HibiyHibiyaa SSta.ta. Chiyoda-ku Shibuya-ku Aoyama- 20 7 itchome Sta. Akasaka Sta. 19 Chuo-ku Toranomon Sta. 1 2 35 Ginza Sta. 11 4 Shimbashi Sta. 12 Omote- 27 sando Sta. 13 Tsukishima Sta. 10 24 22 14 3617 16 6 16 Daiwa Azabudai 22 Daiwa Onarimon 27 Daiwa Nishi-Shimbashi 35 Akasaka Business Place ine 31 i L h Shibuya Sta. s 5 Daiwa Sarugakucho 9 Daiwa Misakicho o 34 T - n 8 e n Shibakoen Sta. Tokyo Metro Toei Subway e D yu Ginza Line Oedo Line ok T Minato-ku Marunouchi Line Asakusa Line Hibiya Line Mita Line 3 Tozai Line Shinjuku Line Naka-meguro Sta. Chiyoda Line JR 39 Yurakucho Line Yamanote Line Hanzomon Line Tokyu Toyoko Line Saikyo Line 43 Daiwa Minami-Semba 39 Benex S-3 21 Sunline Building No. 7 26 Daiwa Jimbocho Namboku Line Chuo Line Fukutoshin Line Sobu Line 43 JR Yokosuka Line Meguro Sta. and Sobu Rapid Line Shinagawa Sta. Main investment area: Five Central Wards of Tokyo 40 Focused investment area: Osaki Sta. Greater Tokyo 44 Honshu Meieki Building 42 Kamiooka Eye Mark Building 40 Daiwa Shinagawa North 41 West Park Osaki 28 Daiwa Kudan 30 Jimbocho Place 44 42 41 Shinagawa-ku Major Regional Cities

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

(As of November 30, 2013)

Shibuya-ku Shinjuku-ku Chuo-ku

33 shinyon curumu 38 Daiwa Higashi-Ikebukuro 2 Daiwa Ginza Annex 11 Daiwa Tsukijiekimae 12 Daiwa Tsukiji 13 Daiwa Tsukiji 616 14 Daiwa Tsukishima Ikebukuro Sta. Toshima-ku 38

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

Asakusa Sta.

Oshiage Sta.

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

Proactive investment in selectively chosen competitive properties

Properties Acquired During the 16th Fiscal Period

Tosen Dogenzaka Daini Building (acquisition on July 3, 2013)

• 9-minute walk from JR Shibuya Station, 3-minute walk from a large-scale commercial complex directly connected to Shibuya Station and a 4-minute walk from Shinsen Station on the Keio Inokashira Line. • Further development is expected as the Shibuya area enjoys abundant demand for office space primarily from IT and IT-related companies, and SHIBUYA redevelopment of the area around Shibuya Station is planned. EDGE

JR Yamanote Line Yamanote JR Tokyo Metro Fukutoshin Line Acquisition price 4,500 million yen Seibu Expected NOI yield 4.6% Tokyu 東京メトロ半蔵門線 Address 28-1 Maruyama-cho, Shibuya-ku, Tokyo Seibu 日石渋谷ビル Site area 721.34m2 Daiwa Tokyo Metro Ginza Line 渋谷SS Shibuya Hikarie ビル Structure and floors SRC B1/11F Shibuya Sta. Shibuya Sta. E SPACE Total floor area 5,644.91m2 TOWER Shibuya Mark City 神泉駅 Keio Appraisal price 4,750 million yen (as of November 2013) Inokashira Line March 11, 1988 (initial construction) Tosen Dogenzaka Cerulean Tower Completion Daini Building Tokyu Hotel 東急 October 6, 1988 (extension) 東横線 Occupancy rate 100.0% (as of November 2013)

Akasaka Business Place (acquisition on August 9, 2013)

• 2-minute walk from Akasaka Station on the Tokyo Metro Chiyoda Line. There are major subway stations, such as Akasaka-mitsuke Station on the Tokyo Metro Marunouchi and Ginza lines and Tameikesanno Station on the Ginza and Namboku lines, around the property, and there is access to multiple other lines. • There are many leading domestic and foreign companies, and it is one of the foremost popular areas in Tokyo, packed with many commercial and service-related companies. Multiple redevelopment plans are underway around the property.

Tokyo (tentative name) Kioicho Project Acquisition price 9,200 million yen Metro Nagatacho Sta. Marunouchi Line Nagatacho Sta. Tokyo Metro Expected NOI yield 4.8% Yurakucho Line Akasaka Excel Hotel Tokyu Akasaka-mitsuke Sta. Address 2-14-5 Akasaka, Minato-ku, Tokyo Hibiya National Diet Tokyo Metro Hanzomon Line High School 2 Building Tokyo Metro Site area 2,521.95m Ginza Line Hie Shrine Structure and floors SRC B2/7F

Tokyo Metro Namboku Line Kokkaigijidoumae Sta. 2 Akasaka Biz Tower Total floor area 13,597.97m Kokkaigijidoumae Sta.

Akasaka Sacas Prime Minister´s Ofﬁcial Residence

Tameike Appraisal price 10,400 million yen (as of November 2013) -sanno Sta. TBS Akasaka Completion September 13, 1990 Akasaka Sta.Business Place

Akasaka 1-chome Area Occupancy rate 95.6% (as of November 2013) Tokyo Metro Chiyoda Line Redevelopment

Acquisition of Properties after Sponsor Change

Acquisition timing 9th Period 10th Period 11th Period 12th Period 13th Period Daiwa Nishi- Daiwa Kayabacho Nihonbashi Hongokucho Daiwa Jimbocho Daiwa Kudan Jimbocho Place E SPACE TOWER Shimbashi Building Tosei Bldg.

Property name

Area Chiyoda-ku, Tokyo Minato-ku, Tokyo Chiyoda-ku, Tokyo Chuo-ku, Tokyo Chiyoda-ku, Tokyo Shibuya-ku, Tokyo Chuo-ku, Tokyo Acquisition price 4,150 million yen 5,000 million yen 4,000 million yen 5,600 million yen 3,550 million yen 24,000 million yen 1,721 million yen Shining Nova No. 5 B Endeavor Realty Fund Seller ORIX JREIT Inc. Japan Core Asset 2 YK Daiwa Property Co, Ltd. Tokyu Land Corporation Tosei Corporation (SPC) YK

Acquisition date Mar. 10, 2010 Aug. 13, 2010 Sep. 2, 2010 Mar. 25, 2011 Mar. 29, 2011 Jul. 8, 2011 May 11, 2012

Building age(Note 1) 13.0 years 17.0 years 23.4 years 0.9 years 1.1 years 8.7 years 2.0 years

8 Nisseki Shibuya Building (acquisition on September 27, 2013)

• 4-minute walk from Shibuya Station, the largest-class terminal in central Tokyo. • High visibility facing intersection of Miyamasuzaka and Route 246. • A redevelopment centering on Shibuya Station is planned, and further development is expected for this area in the future. • While the property is 25 years old, appropriate maintenance and management is conducted and the property was deemed to be able to maintain competitiveness even after acquisition through the implementation of planned upgrades of facilities and such.

SHIBUYA

Tokyo Metro EDGE Line Yamanote JR Fukutoshin Line

Seibu Nisseki Tokyu Shibuya Tokyo Metro Building Hanzomon Line Seibu Daiwa Tokyo Metro Ginza Line Shibuya SS Shibuya Sta. Shibuya Hikarie Building Shibuya Sta. Acquisition price 7,000 million yen E SPACE Shibuya Station Block TOWER Shibuya Mark City Expected NOI yield 4.6% 神泉駅 Keio Shibuya Station Address 2-16-1 Shibuya, Shibuya-ku, Tokyo Inokashira Line South Block Tosen Shibuya Station Dogenzaka Block Site area 1,106.47m2 Dogenzaka Daini Building Cerulean Tower Structure and floors S B1/12F Tokyu Hotel Tokyu Total floor area 8,340.48m2 Toyoko Line Appraisal price 7,280 million yen (as of November 2013) Sakuragaokacho 1 Area Completion December 21, 1988 Redevelopment Project Redevelopment

Occupancy rate 100.0% (as of November 2013) (Data): Compiled by DOI based on press releases of Tokyu Corporation and 4 other

14th Period 15th Period 16th Period Honshu Meieki Kamiooka Eye Mark Tosen Dogenzaka Akasaka Business Nisseki Shibuya West Park Osaki shinyon curumu Building Building Daini Building Place Building

Total

Shinagawa-ku, Tokyo Shinjuku-ku, Tokyo Nagoya-shi, Aichi Yokohama-shi, Kanagawa Shibuya-ku, Tokyo Minato-ku, Tokyo Shibuya-ku, Tokyo - 1,650 million yen 9,650 million yen 5,300 million yen 2,000 million yen 4,500 million yen 9,200 million yen 7,000 million yen 87,321 million yen Two domestic industrial Domestic special Domestic special E Buildings Limited MCR Six GK Shimizu Corporation Hakuba Capital 1 TMK - companies purpose company purpose company Liability Company Dec. 3, 2012 Sep. 18, 2012 Feb. 1, 2013 Mar. 1, 2013 Jul. 3, 2013 Aug. 9, 2013 Sept. 27, 2013 - Apr. 12, 2013 5.0 years 1.0 year 5.1 years 1.8 years 25.3 years 22.9 years 24.8 years 12.1 years (Note 2)

(Note 1) The building age is based on the time of acquisition. (Note 2) The building age is calculated using the weighted average of the acquisition price.

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

Changes in Asset Size and Trading Performance

Achieved asset size of 350 billion yen. Aim to achieve medium-term goal of asset size of 500 billion yen

(Billion yen) 550 80.0（%） Total Acquisition Price LTV (Total Asset) 500 500.0 70.0 450 After change of sponsors Active investment for competitive properties after thorough selection 60.0 400

350 352.7 50.0 332.0 311.3 313.2 314.9 300 287.3 278.1 40.6 40.0 265.0 265.0 265.0 269.1 37.5 250 34.0 34.2 34.4 200 28.1 28.9 30.0 25.4 25.3 25.5 Acquisition property 150 22.0 Acquisition property • Tosen Dogenzaka Daini Building Acquisition property Acquisition property • West Park Osaki • Akasaka Business Park 20.0 • Daiwa Nishi-Shimbashi • E SPACE TOWER • Nisseki Shibuya 100 • Daiwa Kudan

Acquisition property 10.0 50 Acquisition property Acquisition property Acquisition property • shinyon curumu • Daiwa Jimbocho • Daiwa Kayabacho • Nihonbashi Hongokucho • Honshu Meieki • Jimbocho Place Tosei Building • Kamiooka Eye Mark 0 0 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th Medium-term goal Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period

Current Portfolio and Acquisition Policy

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

■ Acquisition Policy ■ Distribution Chart of Portfolio Properties Building Age (Year) * and indicate properties acquired after sponsor changes, and distance to station is measured by the distance to the nearest station. 60 • Invest heavily in the five central wards of Tokyo and equivalent area.

• Thoroughly select properties in view of actual demand toward location (distance to 55 station, station power, crowd attraction, surrounding environment), building specs, etc.

• Target properties to improve stability and profitability of our existing portfolio. 50 • Invest in buildings less than 25 years of building age. 45

■ Sale Policy 40

35 • Consider replacement of properties if necessary by sales in light of properties’ future

competitiveness, profitability, etc. 30 Daiwa Kudan 25 Tosen Dogenzaka Daini Building Nisseki Shibuya Building ■ Number of Properties Reviewed for Acquisition Akasaka Business Place (Cases) * Number of gross proposals. (Cases) 20 500 100 Number of properties reviewed (left axis) Daiwa Nishi-Shimbashi Number of properties reviewed in detail (right axis) 400 80 15 Daiwa Jimbocho

300 60 E SPACE TOWER 10 44 200 35 40 West Park Osaki 32 30 Kamiooka Jimbocho 25 28 Honshu Meieki Building 20 5 Eye Mark Place Daiwa Kayabacho Building 100 20 Building Nihonbashi Hongokucho Tosei Building shinyon curumu 0 0 0 10th 11th 12th 13th 14th 15th 16th 0 1 2 3 4 5 6 7 8 9 10 11 Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period Distance to station (minutes)

10 Internal Growth Measures

Committed to heightening tenant satisfaction and proactive leasing activities

Office Market Trends

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

■ Office Building Rental Market of Tokyo ■ Transition of the supply and demand balance in 23 Wards of Tokyo

(yen/tsubo) (％) (tsubo) (%) 25,000 10 400,000 9.0

Supply and 23,000 8 300,000 7.5 demand gap 200,000 6.0 21,000 6 100,000 4.5 19,000 4 0 3.0 17,000 2 -100,000 Predicted ﬁgures 1.5 Average rents of Vacancy rate of Floor area of new supplies 15,000 existing buildings (left axis) existing buildings (right axis) 0 -200,000 Floor area of new demands Vacancy rate 0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (Source) Miki Shoji (Source) CBRE “Mid-term Office Market Outlook 2012 Tokyo 23 Wards”

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

97.7 96.4 96.3 95.9 95.4 95.3 95 95.0 94.8 94.3 94.8 94.3 92.8 20,000 92.4 18,564 90 18,468

Occupancy rate (actual) Occupancy rate (forecast in Jan. 2014) Average contract rents 85 85.7 Occupancy rate (previous forecast in Jul. 2013) 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 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 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) 700 30 60 28.6 28.4 27.5 50 44 25.5 40 38 600 25.2 24.9 30 33 30 31 22.8 23.4 24 24 25 20 17 18 16 18 13 500 9 12 10 5 6 2 20 4 3,000m or more (left axis) 0 -2 1,000m2 or more, less than 3,000m2 (left axis) 2 2 -10 -12 400 300m or more, less than 1,000m (left axis) -20 -14 -15 -13 2 -19 -20 Less than 300m (left axis) 10 -20 -24 2 10 -25 -26 Ratio of tenants leasing 3,000m or more (%) (right axis) 34 -30 11 31 300 11 -40 8 9 10 27 8 30 -50 -53 34 34 32 187 10 200 24 174 -60 159 End of End of End of End of End of End of End of End of End of End of 145 7th Period 8th Period 9th Period 10th Period 11th Period 12th Period 13th Period 14th Period 15th Period 16th Period 115 127 127 133 Number of Move Ins Number of Move Outs Difference 100 Breakdown of 16th Cost Space Better 139 147 Consolidation Downsizing Other Total 97 105 107 103 110 119 Period Reduction Expansion Location 0 0 Moving in 2 19 1 0 1 2 25 End of End of End of End of End of End of End of End of 9th Period 10th Period 11th Period 12th Period 13th Period 14th Period 15th Period 16th Period Moving out 0 2 2 7 0 2 13 (Note) Office and retail are the target tenants (excluding residence and warehouse) (Note) Figures above exclude new moving in/out for residential and warehouse properties

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

Internal Growth Policy

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

Bonji-Tettei

■ Leasing: Attract New Tenants through Good Terms ■ Engineering: Verification of Construction Plans and • Further strengthen collaboration with leasing agents by holding various Environmental Responses regular meetings and regular visits with said agents. • Maintain fair cost and price level by introducing the principle of • Regularly visit leasing agents and enhance recognition of properties competition and continue to look into construction costs of heat light and subject to leasing improvement and confirm the amount of feedback and water supply and management cost. responses. • Work to systematically perform “work that can be performed on the side of • Implement prompt and smooth leasing by Daiwa Real Estate Asset the ordering party that enables costs to be reduced while the quality of Management being present at the time of property viewing and directly construction is maintained, such as separate orders,” centering on grasping the status of negotiations. large-scale construction accompanying the long-term repair plan. • Properties that can aim for unit price recovery will confirm the status of • Engage in sustainability certification systems, advance environmental neighboring properties and perform term adjustments that can produce measures at existing properties and increase added value. good results with the people in charge of each company (face-to-face leasing). ■ Collaboration with Group • Reinforce leasing by utilizing Daiwa Securities’ branch network. ■ Relations with Tenants: Strengthening Communication • Implement leasing that utilizes Daiwa Securities Group’s network of with Tenants corporate clients. • Further strengthen relations with tenants by deepening interaction among people by visiting all tenants on a regular basis, etc. • Implement communication with and satisfaction surveys for existing tenants and aim for mutual communication.

Occupancy Rate of the Properties Subject to Leasing Improvement in the 16th Fiscal Period

■ shinyon curumu (acquisition price: 9,650 million yen) ■ Honshu Meieki Building (acquisition price: 5,300 million yen) ■ Daiwa Tsukijiekimae (acquisition price: 1,560 million yen)

100.0(%) 100.0(%) 100.0(%) 85.4 100.0 100.0 78.4 81.3 67.5 55.9 50.0 51.9 50.0 50.0

0.0 0.0 0.0 0.0 0.0 10.3 Time of Acquisition 15th 16th Time of Acquisition 15th 16th 12th 13th 14th 15th 16th (Dec. 2012) Period Period (Feb. 2013) Period Period Period Period Period Period Period

• Highly convenient property located a 4-minute • Located a 6-minute walk from Exit 7 of Nagoya • Highly convenient property located a 1-minute walk from JR Shinjuku Station’s new south exit and Station on the JR and Nagoya Municipal Subway walk from Tsukiji Station on the Tokyo Metro directly connected to the passageway of Shinjuku 100lines and a 2-minute walk from the underground 100 Hibiya Line and located right outside the subway 100 3-chome subway station. doorway which leads to the underground shopping exit. • Local development can be expected with development arcade. • There are many affiliate companies of parent of station building scheduled to open in the spring of • A50 large-scale redevelopment is planned in the future 50 companies which have headquarters in the area 50 2016 as well as with infrastructure development. and business accumulation is growing year by year. around Tokyo Station and Ginza area.

Properties Subject to Leasing Improvement0 in the 17th Fiscal0 Period 0

■ shinyon curumu (acquisition price: 9,650 million yen) ■ Honshu Meieki Building (acquisition price: 5,300 million yen) ■ Daiwa Higashi-Ikebukuro (Acquisition Price: 2,958 million yen) • Highly convenient property • Located a 6-minute walk from • Middle-scale property located located a 4-minute walk from Exit 7 of Nagoya Station on the a 10-minute walk from JR Shinjuku Station’s new JR and Nagoya Municipal Higashi-Ikebukuro Station on south exit and directly Subway lines and a 2-minute the Tokyo Metro Yurakucho connected to the passageway walk from the underground Line and a 12-minute walk of Shinjuku 3-chome subway doorway which leads to the from JR Ikebukuro Station. station. underground shopping arcade. • The property is close to • Local development can be • A large-scale redevelopment is Sunshine City and it has a expected with development of planned in the future and characteristic solid exterior. station building scheduled to business accumulation is open in the spring of 2016 as growing year by year. well as with infrastructure development.

12 Measures to Increase Portfolio Value

■ BCP Measures ■ Energy–Saving Measures AED installed at 11 portfolio properties Introduced entrance “LED lighting” at Daiwa Tsukiji

Daiwa Minami-Aoyama Sunline Building No. 7 Before After

■ CS Improving Measures ■ Coexistence with Local Societies Distribution of amenity goods to Renewal construction (common area) at Shinjuku Maynds Tower office worker Participated in “Shinjuku Minamirumi,” an illumination event in the south Shinjuku area, in collaboration with Odakyu Electric Railway, Takashimaya and the East Japan Railway Company. Before After Shinjuku Maynds Tower The festival of lights greets Held Ishinomaki reconstruction- visitors to Shinjuku. Renovated Daiwa Ginza’s smoking room related event

[Period] November 13, 2013 (Wed) Before After Shinjuku Maynds Tower to February 16, 2014 (Sun)

Actions Taken for Environmental Efforts

■ Acquired “Green Star” rating for 2nd consecutive year at GRESB 2013

Acquired “Green Star” rating for 2nd consecutive year at GRESB 2013 Following the participation in 2012, Daiwa Real Estate Asset Management participated in the 2013 Global Real Estate Sustainability Benchmark (GRESB) survey for the portfolio of Daiwa Office Investment Corporation and earned the best rating of “Green Star” from GRESB Survey 2013. For the second consecutive year, Daiwa Real Estate Asset Management received a high evaluation on sustainability from both “Management and Policy” and “Implementation and Measurement” aspects. GRESB is an industry-led international organization which intends to evaluate sustainability performance of real estate portfolios. Daiwa Real Estate Asset Management will continue to make efforts to improve sustainability performance.

■ Environmental efforts for Shinjuku Maynds Tower Shinjuku Maynds Tower Shinjuku Maynds Tower, which was completed in 1995, is approaching its first major challenge with the physical, economic and social degradation of various facilities. In the past, we have continually planned and implemented works of high added value, such as: • Introduction of individual heat sources with ESCO projects (14th Fiscal Period ended November 2012) • Introduction of LED lighting to underground parking lots and common areas (15th Fiscal Period ended May 2013) In order to improve added value from the perspectives of environment, CS, BCP, etc. rather than simple replacements when it comes to the updates that become inevitably required with the aging, we continue to advance deliberations ahead of the milestone of 20 years since completion (2015) starting with the introduction of BEMS through the renewal of the central monitor.

I. Overview of Daiwa Office Investment Corporation 13 Financial Conditions

Reduce refinancing risk by extending borrowing periods and diversifying repayment dates

Status of Interest-Bearing Liabilities (as of November 30, 2013)

During the 16th Fiscal Period, DOI conducted debt financing of 22.5 billion yen, extended borrowing periods, diversified repayment dates and increased the number of financial institutions from which it borrows. Going forward, DOI will continue to focus on stable financial management and support further growth. ■ Interest-Bearing Liabilities ■ Changes in Remaining Years at the Time of (billion yen) 280 70.0(%) (Year) 8.0 Procurement of Interest-Bearing Liabilities 4.0(Year) Interest-bearing liabilities (left axis) Average year remaining at the period end (right axis) 7.0 3.5 240 LTV (based on acquisition price) (Note) (right axis) 60.0 Average remaining years at the time of 3.4 procurement during the 16th Fiscal period (left axis) 6.0 3.0 200 50.0 5.5 Medium-to-long term, upper-limit LTV target range 40.6 5.0 2.5 160 40.0 4.0 2.0 120 30.0 3.0 1.5 80 20.0 2.0 1.0

40 10.0 1.0 0.5

0 0.0 0.0 0.0 End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of 8th 9th 10th 11th 12th 13th 14th 15th 16th 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 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

■ Diversification of Repayment Dates ■ Balance of Borrowings by Financial Institution (million yen) Financial institution Balance (mm yen) Share 25,000 Sumitomo Mitsui Banking Corporation 29,900 20.2% Sumitomo Mitsui Trust Bank 18,350 12.4% 20,000 Development Bank of Japan 17.750 12.0% Mizuho Bank 11,900 8.1% Shinsei Bank 11,000 7.4% 15,000 Resona Bank 9,000 6.1% Aozora Bank 6,000 4.1% The Bank of Tokyo-Mitsubishi UFJ 5,000 3.4% 10,000 22,500 Mitsubishi UFJ Trust and Banking 5,000 3.4% Kansai Urban Banking Corporation 5,000 3.4% Mizuho Trust and Banking 4,500 3.0% 5,000 The Bank of Fukuoka 4,000 2.7% ORIX Bank Corporation 2,500 1.7% The Gunma Bank 2,500 1.7% 0 The Shizuoka Bank 2,000 1.4% 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st 32nd Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Tokio Marine & Nichido Fire Insurance 2,000 1.4% ■ Ratio of Long- to ■ Ratio of Fixed- to The Musashino Bank 1,500 1.0% Short-Term Liabilities Floating-Rate Borrowings The Higashi-Nippon Bank 1,500 1.0% The Hiroshima Bank 1,000 0.7% The Kagawa Bank 1,000 0.7% End of 16th End of 16th 16.2% Fiscal 25.0% Fiscal The 77 Bank 1,000 0.7% Period Period The Bank of Yokohama 500 0.3% The Yamaguchi Bank 500 0.3% Taiyo Life Insurance Company 300 0.2% 83.8% Nippon Life Insurance Company 300 0.2% 75.0% Fukoku Mutual Life Insurance 200 0.1% Subordinated investment corporation bonds 3.500 2.4% Long-term borrowings, etc. Fixed interest rates Total 147,700 100.0% Short-term borrowings, etc. Floating interest rates (Note) Balances less than a million yen have been rounded down. Financial institutions from which borrowings were newly procured during the 16th Fiscal Period are boxed in red. ■ Status of Rating DOI’s credit rating was upgraded in September 2013 due to such factors as conservative leverage and significant reduction of debt costs.

Rating Rating agency Target rating Rating outlook Before change After change Rating and Investment Information, Inc. (R&I) Issuer rating A A+ Stable

14 Description of Asset Manager

Organization of Asset Manager (as of January 8, 2014)

■ 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 Yuji Shinotsuka (Head of Corporate Planning Dept.) Representative Director Paid-in Capital 200 million yen Employees 51 Vice President and Yoshiki Nishigaki (Head of Customer Relations Dept. and Private Representative Director Fund Management Dept.) Registration of Financial Instruments No. 355 (Kinsho), Director-General, Kanto Local Business Operator Finance Bureau Director Naoyuki Owa (Head of Administration Dept.) Building Lots and Buildings Transaction Director (non-executive) Toshihiro Matsui No. (2)-83920, Governor of Tokyo Business License Director (non-executive) Mikita Komatsu Discretionary Agent for Real Estate No. 34, Minister of Land, Infrastructure, Transport and Auditor (non-executive) Masaru Shirataki 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

Acquisition Asset Management Customer Relations Administration Corporate Planning Private Fund Department Department Department Finance Department Department Department Management Department Ofﬁce Investment Ofﬁce Management Advisory Team Team Team Finance Team Residential Investment Residential Team Management Team Accounting Team Operational Team Healthcare Healthcare Investment Management Team Team Investment Team Investment Planning Team Construction 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. Ofﬁcers ③ Special Account Management Executive Director: Nobuaki Omura Institution Supervisory Director: Takayuki Hiraishi Sumitomo Mitsui Trust Bank, Limited ④ Supervisory Director: Hiroshi Sakuma ⑤ General Administrator (Investment Corporation Bonds) Supporting Company Accounting Auditor Sumitomo Mitsui Banking Corporation Daiwa Securities Group Inc. KPMG AZSA LLC

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

I. Overview of Daiwa Office Investment Corporation 15 II. Asset Management Report

1. Management Status and Other Performance Highlights Data

16th Period 15th Period 14th Period 13th Period 12th Period Fiscal Period From June 1, 2013 From Dec. 1, 2012 From June 1, 2012 From Dec. 1, 2011 From June 1, 2011 ( To Nov. 30, 2013 ) ( To May 31, 2013 ) ( To Nov. 30, 2012 ) ( To May 31, 2012 ) ( To Nov. 30, 2011 ) (1) Operating Performance (Millions of yen, except per unit data or where otherwise indicated) Operating revenues 8,432 7,615 7,566 7,431 7,606 Rental revenues 8,367 7,520 7,384 7,338 7,551 Operating expenses 4,755 4,306 4,419 4,341 4,289 Property-related expenses 3,870 3,499 3,602 3,533 3,472 Operating income 3,677 3,309 3,147 3,090 3,317 Ordinary income 2,956 2,590 2,365 2,022 1,768 Net income 2,960 2,589 2,369 2,021 1,767 (2) Properties, etc. (as of end of period) Total assets 363,654 342,573 325,666 325,316 323,218 [period-on-period percentage changes] [+6.2%] [+5.2%] [+0.1%] [+0.6%] [+8.2%] Interest-bearing liabilities 147,700 128,300 112,081 111,391 109,917 Net assets 201,683 201,345 201,118 200,800 200,548 [period-on-period percentage changes] [+0.2%] [+0.1%] [+0.2%] [+0.1%] [+0.2%] Unitholders’ capital 198,781 198,781 198,781 198,781 198,781 (3) Distributions Total distribution amount 2,960 2,589 2,369 2,021 1,767 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) 509,561 508,707 508,132 507,331 506,693 Distribution per unit (yen) 7,478 6,542 5,986 5,107 4,464 Distribution amount from earnings per unit (yen) 7,478 6,542 5,986 5,107 4,464 Distribution amount in excess of earnings per unit (yen) – – – – – (5) Financial Indicators ROA Notes 2 0.8% 0.8% 0.7% 0.6% 0.6% [annual rate] and 3 [1.7%] [1.6%] [1.5%] [1.2%] [1.1%] ROE Notes 3 1.5% 1.3% 1.2% 1.0% 0.9% [annual rate] and 4 [2.9%] [2.6%] [2.4%] [2.0%] [1.8%] Capital ratio 55.5% 58.8% 61.8% 61.7% 62.0% [period-on-period percentage changes] [−3.3%] [−3.0%] [0.0%] [−0.3%] [−5.0%] LTV (loan to value) 40.6% 37.5% 34.4% 34.2% 34.0% Property leasing cash flows (NOI) Note 5 5,826 5,300 5,088 5,172 5,427 (6) Other Referential Information Number of investment properties 44 41 38 37 36 Number of tenants Note 6 442 410 376 355 340 Total rentable area (m2) 244,877.17 225,651.87 208,733.38 207,277.34 205,318.62 Occupancy rate Note 7 96.3% 95.0% 96.4% 94.3% 92.4% Depreciation 1,329 1,280 1,306 1,367 1,348 Capital expenditures 294 278 357 641 240

(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 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. Figures for the 15th Fiscal Period are the annualized figures calculated based on 182 days of management. Figures for the 16th Fiscal Period are the annualized figures calculated based on 183 days of management. (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

16 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 352,786 million yen (sum total of acquisition prices) as of the last day of November 2013. 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, 2013 to November 30, 2013) During the 16th Fiscal Period, a recovery trend was seen in the Japanese economy owing to improvement in market sentiment and corporate performance mainly by export-related companies associated with the depreciation of the yen and rise in stock prices against the backdrop of finance focused economic policies of the Abe Administration and large-scale monetary easing by the Bank of Japan. In addition, movements that give the expectation of economic expansion were confirmed including a recovery in consumer spending due to the improvement in consumer confidence and improvement in employment. In the office rental market in central Tokyo, vacancy rates turned downward after peaking in June 2013 and declined to 7.52% at the end of November 2013 due to the calming down in new supply. Led by the improvement in vacancy rates of large buildings, overall vacancy rates including that of small and mid- sized buildings were also on an improving trend. On the other hand, there was a rise in office rents of large buildings in some areas, but slightly downward is the main trend in the overall market. In the office transaction market, property prices were anticipated to rise due to expectations of the economy recovering and property acquisitions by real estate companies and funds (including REITs) remained high amid the ongoing favorable equity financing environment and proactive lending attitudes of financial institutions.

(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 has sustained the strategy for “external growth” which aims to increase revenue through property acquisitions, and “internal growth” which aims to maximize income generated from existing properties. For external growth, DOI proactively engaged in property acquisition activities and purchased “Tosen Dogenzaka Daini Building” (acquisition price: 4,500 million yen) in July 2013, “Akasaka Business Place” (acquisition price: 9,200 million yen) in August 2013 and “Nisseki Shibuya Building” (acquisition price: 7,000 million yen) in September 2013. As a result, DOI’s assets under management at the end of the 16th Fiscal Period (as of November 30, 2013) totaled 44 properties, the sum total of acquisition prices amounted to 352,786 million yen. For internal growth, in spite of the severe office rental market, DOI tried to meet the demands of tenants to expand rental space through developing good relations with existing tenants and strengthening cooperation with leasing brokers and property managers. As a result of proactive leasing activities, the occupancy rate at the end of the 16th Fiscal Period (as of November 30, 2013) was maintained at 96.3%, increasing by 1.3 percentage points from the previous fiscal period.

II. Asset Management Report 17 (3) Overview of Capital Procurement (A) Procurement of Funds for Acquisitions DOI implemented the following financing activities during the 16th Fiscal Period to acquire “Tosen Dogenzaka Daini Building,” “Akasaka Business Place” and “Nisseki Shibuya Building.” (a) On July 3, 2013, DOI borrowed 4,600 million yen in total from Sumitomo Mitsui Banking Corporation, Development Bank of Japan Inc., Shinsei Bank, Ltd. and The Higashi-Nippon Bank, Limited to acquire the new property (“Tosen Dogenzaka Daini Building” delivered on July 3, 2013). (b) On August 9, 2013, DOI borrowed 9,400 million yen in total from The Bank of Tokyo-Mitsubishi UFJ, Ltd., Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, Limited, The Bank of Fukuoka, Ltd. and Tokio Marine & Nichido Fire Insurance Co., Ltd. to acquire the new property (“Akasaka Business Place” delivered on August 9, 2013). (c) On September 27, 2013, DOI borrowed 7,400 million yen in total from Mizuho Bank, Ltd., Mitsubishi UFJ Trust and Banking Corporation and Sumitomo Mitsui Banking Corporation, Ltd. to acquire the new property (“Nisseki Shibuya Building” delivered on September 27, 2013).

(B) Procurement of Funds for Redemption of Investment Corporation Bonds (Refinancing) DOI implemented the following financing activities during the 16th Fiscal Period for redemption of investment corporation bonds. (a) On June 21, 2013, DOI borrowed 5,000 million yen from Sumitomo Mitsui Banking Corporation and Sumitomo Mitsui Trust Bank, Limited for redemption of 5,000 million yen of the second series of unsecured investment corporation bonds due on June 24, 2013.

(C) Procurement of Funds for Repayment of Borrowings (Refinancing) DOI implemented the following financing activities during the 16th Fiscal Period for repayment of borrowings. (a) On June 28, 2013, DOI borrowed 5,000 million yen from Kansai Urban Banking Corporation for repayment of 5,000 million yen due on June 28, 2013. (b) On July 8, 2013, DOI borrowed 6,000 million yen in total from Sumitomo Mitsui Trust Bank, Limited and The Bank of Fukuoka, Ltd. for repayment of 6,000 million yen due on July 8, 2013. (c) On July 31, 2013, DOI borrowed 2,000 million yen from Shinsei Bank, Ltd. for repayment of 2,000 million yen due on July 31, 2013. (d) On September 30, 2013, DOI borrowed 3,500 million yen in total from The Bank of Fukuoka, Ltd. and ORIX Bank Corporation, Ltd. for repayment of 3,500 million yen due on September 30, 2013. (e) On November 29, 2013, DOI borrowed 4,000 million yen in total from Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, Limited and Shinsei Bank, Ltd. for repayment of 6,000 million yen due on November 29, 2013.

(D) Status of Interest-Bearing Liabilities As a result of the above, the balance of interest-bearing liabilities outstanding at the end of the 16th Fiscal Period (as of November 30, 2013) stood at 147,700 million yen (short-term debt: 3,000 million yen; long-term debt: 141,200 million yen; investment corporation bonds: 3,500 million yen). The balance of long-term debt due within one year stood at 33,900 million yen. During the 16th Fiscal Period, the average remaining repayment period has been extended from 2.49 years (15th Fiscal Period) to 3.43 years (16th Fiscal Period) because DOI conducted borrowings mainly with periods of between 5 years and 7 years. Furthermore, borrowing costs were reduced through the reduction of credit spread interest. Meanwhile, DOI concluded interest-rate swap agreements in the 16th Fiscal Period to fix future interest payments for borrowings of 32,500 million yen in total in order to offset the risks of the possible increase of interest rates.

18 (4) Capital Expenditures During the 16th Fiscal Period The following summarizes the major construction work that constitutes capital expenditures during the 16th Fiscal Period. Capital expenditures amounted to 294 million yen, and combined with the 251 million yen in repair expenses, total of 545 million yen in construction work was implemented.

Name of Property Expenditure Purpose Period (location) (millions of yen)

Shinjuku Maynds Tower From: Aug. 2013 Renovation work for common area 39 (Shibuya-ku, Tokyo) To: Nov. 2013

Daiwa Kinshicho Maintenance work for multistory parking From: Oct. 2013 14 (Koutou-ku, Tokyo) lot equipment To: Nov. 2013

Sunline Building No. 7 Construction work for alteration to an From: Jul. 2013 14 (Chiyoda-ku, Tokyo) office at the 9F To: Sep. 2013

From: Jun. 2013 Other Buildings 227 To: Nov. 2013

Total 294

(5) Overview of Financial Performance and Distributions As a result of the management described above, for the 16th Fiscal Period, DOI recorded 8,432 million yen in operating revenue, 3,677 million yen in operating income, 2,956 million yen in ordinary income and 2,960 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 16th Fiscal Period end, excluding fractions of the distribution amount per unit that are less than 1 yen. Accordingly, DOI declared a distribution of 7,478 yen per unit.

II. Asset Management Report 19 3. Future Management Policy and Tasks

(1) Investment Environment The Japanese economy is expected to recover gradually with the improvement of corporate performance mainly focusing on export-related companies and public investment as well as a recovery in personal spending due to the effects of various finance focused economic stimulus measures of the Abe administration and large-scale monetary easing by the Bank of Japan as well as the recovery in overseas economies centering on advanced countries. However, there still is a need to pay attention to the possibility of a rise in long-term interest rates, the uncertainty in overseas economies and financial markets and the change in demand due to the consumption tax rate hike because they might put downward pressure on the Japanese economy. In the office rental market, vacancy rates declined with the boost in demand from the decrease in the supply of new office buildings, undervalued rents and improvement of the employment situation. In addition, rents are anticipated to make a gradual recovery as an increase in demand for office floor is expected along with improvement of corporate performance with the improvement in the balance of supply and demand. In the office transaction market, the appetite for acquisitions by real estate companies and funds (including REITs) is expected to be stronger against the backdrop of the favorable financing environment and expectations for rents to bottom out.

(2) Management Policy and Tasks (A) Strategy for Managing Existing Properties Under the above office leasing market conditions, tenants are 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 systems. For new tenants, strive to maintain and raise occupancy rates through the provision of more comfortable services than competitors by aggressively participating in the market. (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 situation. In principal, DOI will invest in properties around Tokyo, but will also look into investment in competitive properties in 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 the Sponsor Group, and utilizing the Group’s extensive network of clients. During the 16th Fiscal Period, DOI additionally acquired “Tosen Dogenzaka Daini Building”, “Akasaka Business Place” and “Nisseki Shibuya Building” which are situated in Tokyo. 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 content. (a) In principle, control leverage by keeping the ratio of interest-bearing liabilities to total assets (LTV) (based on total asset value) within the range of 40% to 50% at maximum in consideration of the substantial LTV (ratio) and other factors. (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 be at least 70% of 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, 2013. Please note that the amounts below include costs that will be recognized as expenses.

Estimated Cost (millions of yen) Name of Property Purpose Estimated Period Payment (location) Cumulative for the Total amount current paid period Construction work for renewal of Shinjuku Maynds Tower From: Oct. 2013 CVCF and renovation work for 406 2 5 (Shibuya-ku, Tokyo) To: Mar. 2015 disaster- prevention equipment

Shinjuku Maynds Tower Renovation work for central From: Oct. 2013 297 1 4 (Shibuya-ku, Tokyo) supervisory system To: Sep. 2015

Shinjuku Maynds Tower Construction work for painting of From: Sep. 2013 134 – – (Shibuya-ku, Tokyo) iron material of atrium To: Mar. 2014

Construction work for Upgrading Shinjuku Maynds Tower From: Oct. 2013 of main central supervisory 110 0 1 (Shibuya-ku, Tokyo) To: Sep. 2015 system VAV and controller Construction work for renewal of Shinjuku Maynds Tower From: Dec. 2013 the store in B1F and common 85 – – (Shibuya-ku, Tokyo) To: Apr. 2014 area

II. Asset Management Report 21 III. Balance Sheets

As of November 30, 2013 and May 31, 2013 (Thousands of yen) As of As of November 30, 2013 May 31, 2013 Assets Current Assets: Cash and cash equivalents [Note 10] 16,924,972 16,057,773 Tenant receivables 299,238 230,151 Consumption tax refundable – 248,782 Prepaid expenses 289,695 262,955 Deferred tax assets [Note 8] 7,426 3,167 Other current assets 108,601 119,179 Total Current Assets 17,629,932 16,922,007 Investment Properties, at cost: [Notes 3 and 11] Land including trust accounts 279,089,504 260,705,094

Buildings and structures including trust accounts [Note 4] 79,791,214 76,824,423

Machinery and equipment in trust account 861,302 822,580

Tools, furniture and fixtures including trust accounts 102,157 93,366

Construction in progress including trust accounts 42,001 39,828

Other tangible fixed assets including trust accounts 6,017 9,759

Less: accumulated depreciation (17,517,216) (16,191,817)

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

Total Investment Properties, net 345,088,965 325,017,219

Other Assets:

Right of trademark 1,448 1,637

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

Long-term prepaid expenses 778,748 483,943 Deferred tax assets [Note 8] 23,706 11,321 Deferred investment corporation bond issuance costs 4,585 8,216 Derivative assets [Note 10] – 1,234 Others 12,839 13,604 Total Other Assets 935,010 633,639 Total Assets 363,653,907 342,572,865

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

(Thousands of yen) As of As of November 30, 2013 May 31, 2013 Liabilities Current Liabilities: Operating accounts payable 772,417 571,325 Short-term debt [Notes 6 and 10] 3,000,000 –

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] 33,900,000 32,400,000 Accounts payable – other 286,983 261,091 Income taxes payable 811 779 Accrued consumption taxes 96,309 32,428 Rent received in advance 977,470 874,930 Other current liabilities 164,119 120,599

Total Current Liabilities 39,198,109 39,261,152

Long-Term Liabilities:

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

Long-term debt [Notes 6 and 10] 107,300,000 87,400,000

Tenant security deposits including trust accounts [Note 10] 11,904,030 11,034,249

Derivative liabilities [Note 10] 68,576 32,094

Total Long-Term Liabilities 122,772,606 101,966,343

Total Liabilities 161,970,715 141,227,495

Net Assets [Note 5 and 9]

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 2,959,948 2,589,422 Total Unitholders’ Equity 201,740,899 201,370,373 Valuation and translation adjustments Deferred gains or losses on hedges (57,707) (25,003) Total Valuation and translation adjustments (57,707) (25,003) Total Net Assets 201,683,192 201,345,370 Total Liabilities and Net Assets 363,653,907 342,572,865

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, 2013 and May 31, 2013 (Thousands of yen) For the six months ended For the six months ended November 30, 2013 May 31, 2013 Operating Revenues and Expenses Operating Revenues: [Note 7] Rental revenues 8,367,068 7,519,691 Other revenues related to property leasing 65,002 95,384 Total Operating Revenues 8,432,070 7,615,075 Operating Expenses: Property-related expenses [Note 7] 3,870,374 3,499,438 Asset management fees 696,225 634,586 Asset custody fees 17,657 16,655 Administrative service fees 63,107 61,078 Trust fees 21,718 20,657 Directors’ compensation 5,400 5,400 Other operating expenses 80,560 68,526 Total Operating Expenses 4,755,041 4,306,340 Operating Income 3,677,029 3,308,735 Non-Operating Revenues and Expenses Non-Operating Revenues: Interest income 1,424 924 Reversal of distribution payable 1,101 1,024 Other non-operating revenues 2,465 13,275 Total Non-Operating Revenues 4,990 15,223 Non-Operating Expenses: Interest expense 522,251 492,197 Interest expense on investment corporation bonds 53,610 95,533 Borrowing expenses 144,285 135,546 Other non-operating expenses 5,935 10,632 Total Non-Operating Expenses 726,081 733,908 Ordinary Income 2,955,938 2,590,050 Extraordinary Income: Gain on donation of tangible fixed asset 4,884 – Total Extraordinary Income 4,884 –

Income Before Income Taxes 2,960,822 2,590,050 Income taxes – current 992 870 Income taxes – deferred (6) 5 Total Income Taxes [Note 8] 986 875 Net Income 2,959,836 2,589,175 Retained Earnings Brought Forward 112 247 Retained Earnings at End of Period 2,959,948 2,589,422

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, 2013 (Thousands of yen)

Deferred Gains Number of Unitholders’ Retained or Losses Total Units Capital Earnings on Hedges Balance as of May 31, 2013 395,798 198,780,951 2,589,422 (25,003) 201,345,370

Cash dividends declared – – (2,589,310) – (2,589,310) Net income – – 2,959,836 – 2,959,836 Net changes of items other than – – – (32,704) (32,704) unitholders’ equity Balance as of November 30, 2013 395,798 198,780,951 2,959,948 (57,707) 201,683,192

For the six months ended May 31, 2013 (Thousands of yen)

Deferred Gains Number of Unitholders’ Retained or Losses Total Units Capital Earnings on Hedges Balance as of November 30, 2012 395,798 198,780,951 2,369,494 (32,701) 201,117,744

Cash dividends declared – – (2,369,247) – (2,369,247) Net income – – 2,589,175 – 2,589,175 Net changes of items other than – – – 7,698 7,698 unitholders’ equity Balance as of May 31, 2013 395,798 198,780,951 2,589,422 (25,003) 201,345,370

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, 2013 and May 31, 2013 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, 2013, DOI had ownership or beneficiary interests in 44 office properties with approximately 244,877 square meters of rentable office space and had leased office space to 442 tenants engaged in a variety of businesses. The occupancy rate for the office properties was approximately 96.3%.

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, 2013 As of May 31, 2013 Buildings and structures 2-64 years 2-64 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 71,391 thousand yen for the six months ended November 30, 2013 and 49,317 thousand yen for the six months ended May 31, 2013.

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, 2013 and May 31, 2013 consisted of the following: (Thousands of yen) As of November 30, 2013 As of May 31, 2013 Acquisition Accumulated Acquisition Accumulated costs depreciation Book value costs depreciation Book value Land including trust accounts 279,089,504 – 279,089,504 260,705,094 – 260,705,094 Buildings and structures 79,791,214 (17,055,415) 62,735,799 76,824,423 (15,761,706) 61,062,717 including trust accounts Machinery and equipment 861,302 (399,706) 461,596 822,580 (370,946) 451,634 in trust account Tools, furniture and fixtures 102,157 (56,078) 46,079 93,366 (49,406) 43,960 including trust accounts Construction in progress 42,001 – 42,001 39,828 – 39,828 including trust accounts Other tangible fixed assets 6,017 (6,017) – 9,759 (9,759) – including trust accounts Total 359,892,195 (17,517,216) 342,374,979 338,495,050 (16,191,817) 322,303,233 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, 2013 and May 31, 2013. 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 – Short-term debt, Long-Term Debt and Investment Corporation Bonds Short-term debt, long-term debt and investment corporation bonds as of November 30, 2013 and May 31, 2013 consisted of the following: (Thousands of yen) As of As of November 30, May 31, 2013 2013 Unsecured loans due 2013 to 2021, principally from banks and insurance companies with interest rates mainly ranging from 0.4% to 1.1% 144,200,000 119,800,000 2.7% unsecured bond due 2019 3,500,000 3,500,000 1.9% unsecured bond due 2013 – 5,000,000 Total 147,700,000 128,300,000 [Note] The interest rate presented is the spot rate as of November 30, 2013. 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 short-term debt, long-term debt and investment corporation bonds as of November 30, 2013 were as follows: (Thousands of yen) Due within one year 36,900,000 Due after one to two years 16,600,000 Due after two to three years 3,700,000 Due after three to four years 28,250,000 Due after four to five years 17,350,000 Due after five years 44,900,000 Note 7 – Operating Revenues and Property-Related Expenses Operating revenues and property-related expenses for the periods ended November 30, 2013 and May 31, 2013 were as follows: (Thousands of yen) For the six months ended For the six months ended November 30, 2013 May 31, 2013 A. Operating revenues Rental revenues 8,367,068 7,519,691 Other revenues related to property leasing 65,002 95,384 Total operating revenues 8,432,070 7,615,075 B. Property-related expenses Consignment expenses 654,832 591,514 Utilities expenses 877,332 678,874 Taxes and dues 692,431 671,599 Non-life insurance expenses 12,928 12,101 Repair expenses 251,074 215,111 Depreciation 1,328,913 1,280,207 Other property-related expenses 52,864 50,032 Total property-related expenses 3,870,374 3,499,438 C. Operating income from property leasing [A – B] 4,561,696 4,115,637 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 0.03% for the six months ended November 30, 2013 and 0.03% for the six months ended May 31, 2013. 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, 2013 May 31, 2013 Statutory tax rate 36.59% 36.59% Deductible dividends (36.58) (36.58) Others 0.02 0.02 Effective tax rate 0.03% 0.03% 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, 2013 and May 31, 2013 were as follows: (Thousands of yen) As of November 30, 2013 As of May 31, 2013 Deferred tax assets: Accrued enterprise tax 19 13 Deferred losses on hedges 31,367 14,897 Total deferred tax assets 31,386 14,910 Deferred tax liabilities: Deferred gains on hedges 254 422 Total deferred tax liabilities 254 422 Net deferred tax assets 31,132 14,488

Note 9 – Per Unit Information Information about net assets per unit and net income per unit as of November 30, 2013 and May 31, 2013 and for the period then ended 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. For the six months ended For the six months ended November 30, 2013 May 31, 2013 Net assets at period end per unit 509,561 yen 508,707 yen Net income per unit 7,478.15 yen 6,541.66 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. For the six months ended For the six months ended November 30, 2013 May 31, 2013 Net income (thousands of yen) 2,959,836 2,589,175 Amount not available to ordinary unitholders (thousands of yen) – – Net income available to ordinary unitholders (thousands of yen) 2,959,836 2,589,175 Average number of units during the period (units) 395,798 395,798 Note 10 – Financial Instruments (For the six months ended November 30, 2013 and May 31, 2013) (1) Status of Financial Instruments (A) Policy for financial instruments DOI procures funds through 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 conducted 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 by 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, 2013 and May 31, 2013 are as follows. The financial instruments whose fair value is extremely difficult to estimate are excluded from the following table. (As of November 30, 2013) (Thousands of yen) Book Value Fair Value Difference Cash and cash equivalents 16,924,972 16,924,972 – Total 16,924,972 16,924,972 – Short-term debt 3,000,000 3,000,000 – Long-term debt due within one year 33,900,000 33,902,830 2,830 Investment corporation bond 3,500,000 3,500,000 – Long-term debt 107,300,000 107,324,155 24,155 Total 147,700,000 147,726,985 26,985 Derivative transactions(*) (88,820) (88,820) – (*) 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, 2013) (Thousands of yen) Book Value Fair Value Difference Cash and cash equivalents 16,057,773 16,057,773 – Total 16,057,773 16,057,773 – Investment corporation bond due within one year 5,000,000 5,005,500 5,500 Long-term debt due within one year 32,400,000 32,400,577 577 Investment corporation bond 3,500,000 3,500,000 – Long-term debt 87,400,000 87,010,906 (389,094) Total 128,300,000 127,916,983 (383,017) Derivative transactions(*) (39,478) (39,478) – (*) 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)Short-term debt, long-term debt due within one year and long-term debt For short-term debt and long-term debt with floating interest rates, their fair value and book value are nearly identical and there are no significant changes in DOI’s credit risk after borrowing. Therefore, for these items, their book value is assumed as their fair value. For short-term debt and long-term debt with fixed interest rates, their fair value is 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. (2) Investment corporation bond due within one year and investment corporation bond The fair value of investment corporation bond 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 DOI’s credit risk after issuing the bonds.

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, 2013) (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 65,400,000 (88,820) accounting method and pay fixed (34,500,000) Special treatment Interest rate swap transactions 32,350,000 for interest rate swap Receive floating Long-term debt (32,350,000) –(**) transactions and pay fixed 97,750,000 Total (66,850,000) (88,820) (As of May 31, 2013) (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 (39,478) accounting method and pay fixed (26,000,000) Special treatment Interest rate swap transactions for interest rate swap Receive floating Long-term debt 27,350,000 –(**) transactions and pay fixed (27,350,000) Total 71,250,000 (53,350,000) (39,478) *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 including trust accounts (with a book value of 11,904,030 thousand yen as of November 30, 2013 and 11,034,249 thousand yen as of May 31, 2013) 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, 2013) (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 16,924,972 – – – – – Total 16,924,972 – – – – – (As of May 31, 2013) (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 16,057,773 – – – – – Total 16,057,773 – – – – – 4. Redemption schedule for short-term debt, investment corporation bond and long-term debt (As of November 30, 2013) (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 Short-term debt 3,000,000 – – – – – Long-term debt due 33,900,000 – – – – – within one year Investment corporation bond – – – – – 3,500,000 Long-term debt – 16,600,000 3,700,000 28,250,000 17,350,000 41,400,000 Total 36,900,000 16,600,000 3,700,000 28,250,000 17,350,000 44,900,000

(As of May 31, 2013) (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 bond due within one year 5,000,000 – – – – – Long-term debt due within one year 32,400,000 – – – – – Investment corporation bond – – – – – 3,500,000 Long-term debt – 29,500,000 8,300,000 18,200,000 19,400,000 12,000,000 Total 37,400,000 29,500,000 8,300,000 18,200,000 19,400,000 15,500,000

32 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, 2013) (Thousands of yen) Book Value Fair value as of As of Change As of November 30, 2013 May 31, 2013 during the period(*1) November 30, 2013 324,976,353 20,069,800 345,046,153 328,290,000 (For the six months ended May 31, 2013) (Thousands of yen) Book Value Fair value as of As of Change As of May 31, 2013 November 30, 2012 during the period(*2) May 31, 2013 308,107,273 16,869,080 324,976,353 302,510,000

(Note 1) The book value represents the acquisition cost less accumulated depreciation. (Note 2) Significant changes (*1) For the six months ended November 30, 2013, the major reasons of increase are acquisitions of “Tosen Dogenzaka Daini Building” (4,500,000 thousand yen), “Akasaka Business Place” (9,200,000 thousand yen) and “Nisseki Shibuya Building” (7,000,000 thousand yen). The major reason of decrease is depreciation (1,328,913 thousand yen). (*2) For the six months ended May 31, 2013, the major reasons of increase are acquisitions of “shinyon curumu” (9,650,000 thousand yen), “Honshu Meieki Building” (5,300,000 thousand yen) and “Kamiooka Eye Mark Building” (2,000,000 thousand yen). The major reason of decrease is depreciation (1,280,206 thousand yen). (Note 3) The fair values as of November 30, 2013 and May 31, 2013 represent the sum of appraisal values estimated by external real estate appraisers. Income and loss from investment and rental properties for the six months ended November 30, 2013 and May 31, 2013 are disclosed in Note 7.

VI. Notes to Financial Statements 33 Note 12 – Transactions with Related Parties (For the six months ended November 30, 2013) 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 247.3billion yen 342 billion yen Business description Holding company Bank Percentage of voting 14.99% 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 Borrowing of Repayment of Payment of Nature of transaction investment corporation bonds capital capital interest expense (Notes 1 and 2) (Note 3) Amount of transaction 48,102 7,000,000 5,000,000 70,725 (thousands of yen) Investment Other Account corporation current Short-term debt Long-term debt – bonds liabilities Balance at end of period 3,500,000 19,359 1,000,000 17,350,000 – (thousands of yen)

34 (For the six months ended May 31, 2013) 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 247.3billion yen 342 billion yen Business description Holding company Bank Percentage of voting 14.99% 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 of interest Nature of transaction investment corporation bonds Borrowing of capital expense (Notes 1 and 2) (Note 3) Amount of transaction 48,527 3,000,000 59,198 (thousands of yen) Investment Other Long-term debt Account corporation current due within one Long-term debt – bonds liabilities year Balance at end of period 3,500,000 20,305 5,000,000 11,350,000 – (thousands of yen) Consumption taxes are not included in transaction amounts. (Note 1) Issuance conditions for the investment corporation bonds were decided by analyzing the spread of similar bonds, the difference of spread between senior bonds and subordinated bonds, and the past track record of similar bonds. (Note 2) Terms of transactions 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 market trends.

Note13 – Significant Subsequent Events Not applicable.

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, 2013 and May 31, 2013 (Thousands of yen)

For the six months For the six months ended ended November 30, 2013 May 31, 2013 Cash Flows from Operating Activities: Income before income taxes 2,960,822 2,590,050 Depreciation and amortization 1,330,094 1,281,374 Amortization of bond issuance costs 3,631 8,536 Interest expense 575,861 587,730 (Increase) Decrease in tenant receivables (69,087) 31,499 Increase (Decrease) in accounts payable 230,681 (69,736) Increase (Decrease) in rent received in advance 102,540 42,963 Cash payments of interest expense (615,391) (604,368) (Increase) Decrease in consumption taxes refundable 248,782 (248,782) Other, net (186,076) (270,170) Net Cash Provided by Operating Activities 4,581,857 3,349,096 Cash Flows from Investing Activities: Payments for purchases of investment properties (21,395,958) (17,738,286) Payments for purchases of intangible assets – (279) Proceeds from tenant security deposits 1,208,132 1,070,901 Payments for tenant security deposits (338,351) (519,479) Net Cash Used in Investing Activities (20,526,177) (17,187,143) Cash Flows from Financing Activities: Proceeds from short-term debt 8,000,000 – Repayment of short-term debt (5,000,000) – Proceeds from long-term debt 38,900,000 21,700,000 Repayments of long-term debt (17,500,000) (5,481,250) Redemption of investment corporation bonds (5,000,000) – Payment of dividends (2,588,481) (2,369,895) Net Cash Provided by Financing Activities 16,811,519 13,848,855 Net Change in Cash and Cash Equivalents 867,199 10,808 Cash and Cash Equivalents at Beginning of Period 16,057,773 16,046,965 Cash and Cash Equivalents at End of Period 16,924,972 16,057,773

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) 600,000 6,000(units)

Investment unit price (left axis) Trading volume (right axis)

500,000 5,000

400,000 4,000

300,000 3,000

200,000 2,000

100,000 1,000

0 0 2011 2012 2013 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, 2013) 146×57 ■ No. of investment units by investor type ■ No. of unitholders by investor type Individuals/others Financial institutions Foreigners 23,041 units (5.8%) 9,994 16th 28,742 units (7.3%) 151,918 units (38.4%) Individuals/others (96.8%) Fiscal Period 20 Total: 395,798 units Financial institutions (0.2%)

Other domestic corporations units (48.3%) Securities firms units (0.3%) Other domestic 166 190,980 1,117 corporations (1.6%) 128 Foreigners (1.2%) Individuals/others Financial institutions Foreigners units (7.1%) units (7.9%) 143,739 units (36.3%) 28,192 17 15th 31,108 Securities firms (0.2%) Fiscal Period Total: 395,798 units Total 10,325 Other domestic corporations 191,238 units (48.3%) Securities firms 1,521 units (0.4%)

Top Ten Unitholders (as of November 30, 2013) IR Calendar

January 17, 2014 ・Announcement of financial results for Number of Percentage 16th Fiscal Period Name of Investor Units Owned Share February 13, 2014 ・Sending of Japanese version Business Report for 16th Fiscal Period 1. Daiwa Investment Management Inc. 128,905 units 32.6% (Statement of Financial Performance) 6000 February 14, 2014 ・Start paying distributions for 2. Japan trustee Services Bank, Ltd. (Trust Account) 62,707 units 15.8% 16th Fiscal Period

3. Daiwa Securities Group Inc. 59,321 units 15.0%5000 The Master Trust Bank of Japan, Ltd. (Investment Nov. 4. 32,259 units 8.2% Trust Account) Aug. End of 4000 ﬁscal period Trust & Custody Services Bank, Ltd. (Securities 5. 28,524 units 7.2% Investment Trust Account) July Jan. 20 40 60 3000 80 100 0 End of The Nomura Trust and Banking Co., Ltd. (Investment ﬁscal period Feb. 6. 20,857 units 5.3% Trust Account) May 7. Nomura Bank (Luxembourg) S.A. 4,969 units 1.3% July 2014 ・Announcement of financial results for 17th Fiscal Period 8. The Fuji Fire and Marine Insurance Co., Ltd. 4,212 units 1.1% August 2014 ・Sending of Japanese version Business Report for 17th Fiscal Period 9. Individuals 1,940 units 0.5% (Statement of Financial Performance) August 2014 ・Start paying distributions for 10. State Street Bank and Trust Company 505223 1,503 units 0.4% 17th Fiscal Period Note: The percentage share figures are rounded to the first decimal place. August 2014 ・8th General Meeting of Unitholders

38 Investor Memo

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

General Meeting of Unitholders Held at least once every two years

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

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

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

Newspaper in which notice is posted 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, Suginami- Office handling administrative affairs 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) 16 June 1, 2013 - November 30, 2013

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