Fiscal Period Business Report Th (Statement of Financial Performance) 15 December 1, 2012 - May 31, 2013

Fiscal Period Business Report th (Statement of Financial Performance) 15 December 1, 2012 - May 31, 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 15th Fiscal Period, DOI posted operating revenues of 7,615 million yen and operating income of 3,308 million yen. Our distribution per unit for the 15th Fiscal Period is 6,542 yen, an increase by 556 yen from the 14th Fiscal Period. See page 4 for financial and management highlights

As for new property acquisitions in the 15th Fiscal Period, DOI acquired shinyon curumu (9,650 million yen), Honshu Meieki Building (5,300 million yen), Kamiooka Eye Mark Building (2,000 million yen) and Sunline Building No. 7 (230 million yen) additional acquisition of compartmentalized ownership for a total of 17,180 million yen. Furthermore, in the 16th Fiscal Period DOI acquired two properties, Tosen Dogenzaka Daini Building (4,500 million yen) and Akasaka Business Place (9,200 million yen), for a total of 13,700 million yen. See page 8 for details of external growth

The occupancy rate as of the end of the 15th Fiscal Period was 95% as the acquisition of low-occupancy rate properties (shinyon curumu and Honshu Meieki Building) brought down the overall occupancy rate. However, all properties are relatively new and close to train stations and have strong ability to attract customers in addition to being located in areas where growth can be expected through large-scale developments and such, and DOI will work to improve the performance of these properties, thereby leading to improvement of the entire portfolio. See page 12 for details of internal growth

In financial matters, DOI will aim to reduce future refinancing risk by extending borrowing periods and diversifying repayment dates while also reducing financial costs. 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 350 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… ……………………………… 12 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 3.0% Five Central A Class buildings (Shinjuku Maynds Tower) Greater Tokyo Wards of Tokyo 6.9% 90.1% 40.3%

B Class buildings Based on acquisition price 59.7% Based on acquisition price

(Note) Please note that the percentages in the above graphs are as of May 31, 2013.

Growth Strategies

Activities for solid growth (billion yen) Proactive investment in 350.0 350 ・Continue acquiring Achievement of a 350 billion yen asset size selectively chosen properties competitive properties 332.0

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

300 287.3 Establishment of stable revenue base ・Property management Continuation of “Bonji-Tettei” activities Improve occupancy rate and increase rent revenue 250 Further strengthen relations with tenants ・Maintain and Capture tenant needs by reinforcing ties with improve property property managers value Strategic renewals and lease-up activities ・Financial activities Reduce reﬁnancing risk by extending borrowing periods and diversifying 200 Fiscal period Fiscal period Fiscal period Fiscal period Fiscal period Acquisition repayment dates ended ended ended ended ended target May 2011 November 2011 May 2012 November 2012 May 2013

Distribution per Unit 15th Fiscal Period yen (actual) (fiscal period ended May 2013) 6,542

(Note) The forecasts on distribution are 3500 calculated based on certain assumptions and may vary due to 16th Fiscal Period yen (forecast) changes in the status and other (fiscal period ending November 2013) 7,200 factors. Moreover, the forecasts set forth herein should not be

construed as a guarantee of 17th Fiscal Period yen (forecast) 7,3003000 distribution amounts. (fiscal period ending May 2014)

I. Overview of Daiwa Office Investment Corporation 3

2500

2000 Financial and Management Highlights

Steady increase of distributions even in a severe office market environment

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

7,500 3,000 3,317 3,308 3,146 7,605 7,431 7,566 7,615 3,090 6,758 2,823 5,000 2,000

2,500 1,000

0 0 11th Period 12th Period 13th Period 14th Period 15th Period 11th Period 12th Period 13th Period 14th Period 15th Period

■ Net Income ■ Distribution Per Unit (million yen) (yen) 3,000 7,000

6,542 2,589 5,986 2,000 2,369 5,000 2,021 5,107 1,766 4,464 1,453 1,000 3,000 3,671

0 1,000 11th Period 12th Period 13th Period 14th Period 15th Period 11th Period 12th Period 13th Period 14th Period 15th Period

■ Asset Size ■ Period End Occupancy Rate (billion yen) (%) 350 100 96.4 95.4 94.3 95.0 332.0 92.4 300 311.3 313.2 314.9 90

287.3

250 80

200 70 11th Period 12th Period 13th Period 14th Period 15th Period 11th Period 12th Period 13th Period 14th Period 15th Period

15th Period 14th Period 13th Period 12th Period 11th Period (May 2013) (November 2012) (May 2012) (November 2011) (May 2011) Operating revenues (million yen) 7,615 7,566 7,431 7,606 6,759 Operating income (million yen) 3,308 3,147 3,090 3,317 2,824 Ordinary income (million yen) 2,590 2,365 2,022 1,767 1,587 Net income (million yen) 2,589 2,369 2,021 1,767 1,453 10000 Total number of units issued (units) 395,798 395,798 395,798 4000 395,798 395,798 Net assets per unit (yen) 508,707 508,132 507,331 506,693 505,900 Distribution per unit (yen) 6,542 5,986 5,107 4,464 3,671 Total assets (million yen) 342,572 325,665 325,315 323,217 298,626 Loan-to-value (LTV) 37.5 34.4 34.2 34.0 28.9 (based on total asset value) (%) Number of investment properties 41 38 37 36 35 Asset size (billion yen) 332.0 314.9 313.2 311.3 287.3 Total rentable area (m2) 225,651.87 208,733.38 207,277.34 205,318.62 191,346.43 Occupancy rate (%) 95.0 96.4 94.3 92.4 95.4

4 Overview of Portfolio (portfolio list)

DOI has a portfolio comprised of one A Class building and 40 B Class buildings

(as of May 31, 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 8,267.13 SRC B3/12F July 1963 2003 14,100 4.2 14,700 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 3,100 Fee simple Fee simple 7.46 3 Daiwa Shibaura Shibaura, Minato-ku, Tokyo 9,626.38 SRC B1/12F Oct. 1987 8,265 2.5 7,470 Fee simple Fee simple 5.09 4 Daiwa Minami-Aoyama Minami Aoyama, Minato-ku, Tokyo 2,715.54 S SRC B2/5F Sept. 1990 4,550 1.4 4,010 Fee simple Fee simple 12.79 5 Daiwa Sarugakucho Sarugakucho, Chiyoda-ku, Tokyo 3,657.43 SRC 8F June 1985 3,190 1.0 3,090 Fee simple Fee simple 9.79 Compartmentalized 6 Daiwa A Hamamatsucho Hamamatsucho, Minato-ku, Tokyo 3,663.38 SRC B2/10F July 1993 2,865 0.9 2,830 Fee simple ownership 6.03 7 Daiwa Jingumae Jingumae, Shibuya-ku, Tokyo 2,198.61 RC B1/4F Dec. 1997 2,800 0.8 2,050 Fee simple Fee simple 12.01 8 Daiwa Shibadaimon Shibadaimon, Minato-ku, Tokyo 2,386.02 SRC RC B1/7F Nov. 1996 2,578 0.8 2,640 Fee simple Fee simple 2.99 9 Daiwa Misakicho Misakicho, Chiyoda-ku, Tokyo 2,137.53 S 8F July 1996 2,346 0.7 2,480 Fee simple Fee simple 6.68 10 Daiwa Shimbashi 510 Shimbashi, Minato-ku, Tokyo 2,693.06 SRC B1/8F Apr. 1974 2006 2,080 0.6 2,310 Fee simple Fee simple 8.13 11 Daiwa Tsukijiekimae Tsukiji, Chuo-ku, Tokyo 2,659.59 SRC 10F Jan. 1996 1,560 0.5 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 1,420 Fee simple Fee simple 9.70 13 Daiwa Tsukiji 616 Tsukiji, Chuo-ku, Tokyo 2,931.93 SRC B1/9F Mar. 1994 2,440 0.7 2,370 Fee simple Fee simple 7.69 14 Daiwa Tsukishima Tsukishima, Chuo-ku, Tokyo 8,426.85 S 5F July 1996 7,840 2.4 7,850 Fee simple Fee simple 10.89 15 Nihombashi MS Bldg. Nihombashi-Horidomecho, Chuo-ku, Tokyo 2,850.81 SRC B2/7F Apr. 1993 2,520 0.8 2,410 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 1,730 Fee simple Fee simple 9.57 Compartmentalized 17 Daiwa Shibuya SS Shibuya, Shibuya-ku, Tokyo 2,969.11 SRC S B1/9F July 1977 2003 3,930 1.2 3,830 Fee simple ownership (100%) 8.67 18 Daiwa Nihombashi Honcho Nihombashi-Honcho, Chuo-ku, Tokyo 7,418.61 SRC B1/10F Jan. 1964 2006 7,420 2.2 6,980 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 1.4 4,480 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 3,030 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 0.9 2,600 Fee simple ownership (100%) 8.62 Compartmentalized 22 Daiwa Onarimon Shimbashi, Minato-ku, Tokyo 11,615.37 SRC 9F Apr. 1973 2003 13,860 4.2 13,300 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 40.3 113,000 Co-ownership Co-ownership 6.42 24 SHIBUYA EDGE Udagawacho, Shibuya-ku, Tokyo 2,480.65 RC B1/9F Aug. 2006 5,900 1.8 4,040 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 1,960 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 2,780 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 1.5 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 1.2 2,830 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 1.7 6,300 Fee simple Fee simple 5.58 30 Jimbocho Place Kanda-Jimbocho, Chiyoda-ku, Tokyo 2,889.34 S 9F Feb. 2010 3,550 1.1 3,670 Fee simple Fee simple 6.13 31 E SPACE TOWER Maruyamacho, Shibuya-ku, Tokyo 13,960.85 S SRC B1/15F Oct. 2002 24,000 7.2 26,500 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 1,830 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 2.9 10,100 Right of site ownership (100%) 6.50 Subtotal 184,066.20 299,055 90.1 273,800 Greater Tokyo Area (Note 1) 34 Daiwa Kinshicho Kameido, Koto-ku, Tokyo 5,378.02 S B1/5F Jan. 1992 3,653 1.1 3,320 Fee simple Fee simple 7.42 35 Daiwa Higashi-Ikebukuro Higashi-Ikebukuro, Toshima-ku, Tokyo 4,589.17 SRC S B1/9F June 1993 2,958 0.9 3,480 Fee simple Fee simple 5.56 36 Benex S-3 Shin-Yokohama, Kohoku-ku, Yokohama City, Kanagawa 7,470.18 S SRC B1/12F Feb. 1994 4,950 1.5 3,260 Fee simple Fee simple 5.66 37 Daiwa Shinagawa North Kita-Shinagawa, Shinagawa-ku, Tokyo 6,549.98 SRC B1/11F July 1991 7,710 2.3 5,820 Fee simple Fee simple 5.56 38 West Park Osaki Osaki, Shinagawa-ku, Tokyo 1,786.58 S RC B1/6F Sept. 2007 1,650 0.5 1,930 Fee simple Fee simple 10.93 39 Kamiooka Eye Mark Building Kamiooka Nishi, Konan-ku, Yokohama City, Kanagawa 2,630.30 S SRC B3/7F May 2011 2,000 0.6 2,040 Fee simple Fee simple 12.30 Subtotal 28,404.23 22,921 6.9 19,850 Major Regional Cities (Note 1) 40 Daiwa Minami-Semba Minami-Semba, Chuo-ku, Osaka City, Osaka 5,719.54 SRC B1/8F Sept. 1986 4,810 1.4 2,860 Fee simple Fee simple 11.56 41 Honshu Meieki Building Meieki-Minami, Nakamura-ku, Nagoya City, Aichi 7,461.90 S 12F Dec. 2007 5,300 1.6 6,000 Fee simple Fee simple 12.11 Subtotal 13,181.44 10,110 3.0 8,860 Total 225,651.87 332,086 100.0 302,510 5.53 (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 May 31, 2013 (end of 15th 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 May 31, 2013 (end of 15th Fiscal Period). (Note 5) The figures entered for PML are the figures in the Portfolio Earthquake PML Assessment Report (June 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 Wards)

Shibuya-ku Shinjuku-ku Chuo-ku

33 shinyon curumu 35 Daiwa Higashi-Ikebukuro 2 Daiwa Ginza Annex 11 Daiwa Tsukijiekimae 12 Daiwa Tsukiji 13 Daiwa Tsukiji 616 14 Daiwa Tsukishima Ikebukuro Sta. Toshima-ku 35

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 Kinshicho Sta. Shinjuku-ku Kudanshita Sta. 30 26 Minato-ku 28 34 Shinjuku Sta. 32 33 25 15 Otemachi Sta. 23 Yotsuya Sta. 18 Ningyocho Sta. 21 Chiyoda-ku Nihombashi Sta. 29 Koto-ku Tokyo Sta. Akasaka- 3 Daiwa Shibaura 4 Daiwa Minami-Aoyama 6 Daiwa A Hamamatsucho 8 Daiwa Shibadaimon mitsuke Sta. HibiyaHibiya Sta.Sta. Shibuya-ku Aoyama- 20 7 itchome Sta. 19 34 Daiwa Kinshicho Toranomon Sta. 2 Chuo-ku 1 Ginza Sta. 11 4 12 Main investment area: Shimbashi Sta. Five Central Wards of Tokyo JR Omote- 27 sando Sta. 13 Tsukishima Sta. Yamanote Line 10 Focused investment area: 24 Saikyo Line 22 Greater Tokyo 14 Chuo Line 17 16 6 Major Regional Cities 10 Daiwa Shimbashi 510 16 Daiwa Azabudai 22 Daiwa Onarimon 27 Daiwa Nishi-Shimbashi Sobu Line ine 31 i L Shibuya Sta. h s JR Yokosuka Line o Chiyoda-ku T - and n 8 e n Sobu Rapid Line e Shibakoen Sta. D yu Tokyo Metro Tok Minato-ku Ginza Line Marunouchi Line 3 Hibiya Line Naka-meguro Sta. Tozai Line 36 Chiyoda Line Yurakucho Line 40 Daiwa Minami-Semba 36 Benex S-3 Hanzomon Line 5 Daiwa Sarugakucho 9 Daiwa Misakicho 21 Sunline Building No. 7 Tokyu Toyoko Line Namboku Line 40 Fukutoshin Line Toei Subway Meguro Sta. Oedo Line Shinagawa Sta. Asakusa Line Mita Line Shinjuku Line 37 Osaki Sta. 41 Honshu Meieki Building 39 Kamiooka Eye Mark Building 37 Daiwa Shinagawa North 38 West Park Osaki 26 Daiwa Jimbocho 28 Daiwa Kudan 30 Jimbocho Place 41 39 38 Shinagawa-ku

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

(as of May 31, 2013)

Shibuya-ku Shinjuku-ku Chuo-ku

33 shinyon curumu 35 Daiwa Higashi-Ikebukuro 2 Daiwa Ginza Annex 11 Daiwa Tsukijiekimae 12 Daiwa Tsukiji 13 Daiwa Tsukiji 616 14 Daiwa Tsukishima Ikebukuro Sta. Toshima-ku 35

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

Real Estate Transaction Market and Acquisition Performance

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

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

(billion yen) 400 80(%) 350 Total acquisition price Estimated LTV (based on acquisition price) LTV (based on acquisition price) 350.0 70 332.0 345.7 300 311.3 313.2 314.9 60 287.3 269.1 278.1 250 265.0 265.0 265.0 50 40.7 200 37.5 39.9 40 34.0 34.2 34.4 150 28.1 28.9 30 25.4 25.3 25.5 22.0 100 20 50 Proactive investment in selectively 10 chosen competitive properties 0 0 End of 6th End of 7th End of 8th End of 9th End of 10th End of 11th End of 12th End of 13th End of 14th End of 15th End of 16th Period Period Period Period Period Period Period Period Period Period Period (planned) (Source) Data from the Real Estate Transactions Study of Urban Research Institute Corporation (a think tank of Mizuho Trust and Banking) and the website of the Bank of Japan.

Current Portfolio and Acquisition Policy

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

■ Acquisition Policy ■ Chart of Distribution of Portfolio Properties (Age: years) * and indicate properties acquired after sponsor changes, and distance to station is measured by the distance to the nearest station. • Focused investment on the Five Central Wards of Tokyo and equivalent areas. 60 • Selectively choose properties from the view of actual demand toward locations 55 (distance to station, station appeal, popularity, customer attraction).

• Acquisition of properties that will heighten the stability and profitability of the existing 50 portfolio. • Invest in buildings that are less than 25 years old. 45

■ Status after 16th Fiscal Period Acquisitions 35

End of 15th Fiscal Period After acquisition 30 Daiwa Kudan Tosen Dogenzaka Daini Building Major Regional Cities Major Regional Cities 25 Greater Tokyo 3.0% Greater Tokyo 2.9% Akasaka Business Place 6.9% 6.6% 20 Daiwa Nishi-Shimbashi

15 Daiwa Jimbocho

10 E SPACE TOWER

Kamiooka Jimbocho West Park Osaki Honshu Meieki Building 5 Eye Mark Place Daiwa Kayabacho Building Building Nihonbashi Hongokucho Tosei Building shinyon curumu Five Central Wards of Tokyo Five Central Wards of Tokyo 0 90.1% 90.5% 0 1 2 3 4 5 6 7 8 9 10 11 Distance to station (minutes)

8 Properties Acquired During the 15th Fiscal Period

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

• 4-minute walk from the new south exit of Shinjuku Station on JR Lines, directly connected to the passageway of Shinjuku 3-chome Station on the Tokyo Metro Marunouchi Line and the Fukutoshin Line. • The property is located where the office and commercial areas intersect. In the future, with further development of the area, medium- to long-term demand from tenants can be expected.

JR Chuo Main Line

JR Yamanote Line

Shinjuku- Nishiguchi Sta. Acquisition price 9,650 million yen Shinjuku Ward Ofﬁce

Expected NOI yield 4.3% Studio ALTA Address 4-2-23 Shinjuku, Shinjuku-ku, Tokyo Shinjuku Sta. Isetan Main Building

2 Toei Oedo Line Site area 1,144.63m Keio Shinjuku Shinjuku Sta. 3-chome Sta. Department Tokyo Metro Store Marunouchi Line Structure and floors S RC B2/11F Shinjuku Post Ofﬁce Toei Shinjuku Shinjuku Line 3-chome Sta. Total floor area 9,234.99m2

Shinjuku Sta. Appraisal price 10,100 million yen (as of May 2013) shinyon curumu Takashimaya

Tokyo Metro Fukutoshin Completion January 25, 2012 Line Shinjuku Maynds Tower Shinjuku Gyoen Occupancy rate 55.9% (as of May 2013)

Honshu Meieki Building (acquisition on February 1, 2013)

• 6-minute walk from Nagoya Station on JR and Nagoya Municipal Subway lines and 2-minute walk from underground doorway leading to Nagoya Station’s underground shopping arcade. • Three skyscrapers are planned to be completed in the Meieki (Nagoya Station) area by the end of 2015 and the area’s business accumulation is expected to grow.

Acquisition price 5,300 million yen Kokusai Center Sta. Sakura-Dori Subway Nagoya Sta. Sakura-Dori Line Expected NOI yield 6.0% Meitetsu Nagoya Sta.

Address 1-21-19 Meieki-Minami, Nakamura-ku, Nagoya-shi Nakamura Nagoya Sta. Subway Ward Ofﬁce Higashiyama Line 2 Nishiki-Dori Site area 2,059.56m Hirokoji-Dori Nakamura Nakamura Structure and floors S 12F Kuyakusho Sta. Police Station Honshu Meieki Building 2 Total floor area 10,416.96m Nagoya Central Hospital

Line Appraisal price 6,000 million yen (as of May 2013) Meieki-dori

Main Completion December 20, 2007 Kansai Kintetsu Nagoya Line Occupancy rate 85.4% (as of May 2013) Komeno Sta. Sasashima Raibu Sta.

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

• 1-minute walk from Kamiooka Station on Keikyu Line and Yokohama Municipal Subway. • Relatively new property in front of the station with a high level of competitiveness and high office demand from companies that provide services for local residents around Kamiooka Station.

Acquisition price 2,000 million yen Ooka River Expected NOI yield 6.1% Address 1-14-6 Kamiooka Nishi, Konan-ku, Yokohama-shi Hotel Torianon 2 Kamiooka Eye Site area 689.12m Mark Building Keikyu Department Store Kamiooka Sta. Structure and floors S SRC B3/7F

2 Fuji Total floor area 3,755.36m Shopping Center

Kamiooka Sta. Appraisal price 2,040 million yen (as of May 2013) Keikyu Main Line Mioka Completion May 13, 2011

Occupancy rate 100.0% (as of March 2013) Blue Line

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

Properties Acquired During the 15th Fiscal Period

Sunline Building No. 7 (Additional Acquisition) [Acquisition Date: March 29 and May 29, 2013]

•2-minute walk from Kojimachi Station on the Tokyo Acquisition Price 230 million yen Metro Yurakucho Line, 7-minute walk from Hanzomon Station on the Tokyo Metro Hanzomon Line, and Address 4-7-2 Kojimachi, Chiyoda-ku, Tokyo 7-minute walk from Yotsuya Station on the JR Line Site area 608.42m2 (additional acquisition: approx. 8.5%) and the Tokyo Metro Marunouchi and Namboku Lines. Total floor area 3,942.61m2 • Having come to own the entire compartmentalized Total floor area of the 2 (additional acquisition) ownership of the property due to the additional exclusive space 260.89m acquisition, the efficiency of management operations and liquidity of the property are expected to be Co-ownership interest 8.93 % (additional acquisition) enhanced and, accompanying this, the cap rate will of the common space significantly improve and contribute to increasing Appraisal Price 236 million yen appraisal value. (additional acquisition, Jan. 2013)

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 Seller ORIX JREIT Inc. Japan Core Asset 2 YK Daiwa Property Co, Ltd. Tokyu Land Corporation Endeavor Realty Fund YK Tosei Corporation (SPC) 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

NOI yield (Note 1) 6.0% 5.5% 5.3% 5.1% 5.1% 4.8% 5.3%

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

Total Property name

Area Shinagawa-ku, Tokyo Shinjuku-ku, Tokyo Nagoya-shi, Aichi Yokohama-shi, Kanagawa Shibuya-ku, Tokyo Minato-ku, Tokyo -

Acquisition price 1,650 million yen 9,650 million yen 5,300 million yen 2,000 million yen 4,500 million yen 9,200 million yen 80,321 million yen Two domestic industrial Domestic special Domestic special Seller MCR Six GK Shimizu Corporation Hakuba Capital 1 TMK - companies purpose company purpose company Dec. 3, 2012 Acquisition date Sep. 18, 2012 Feb. 1, 2013 Mar. 1, 2013 Jul. 3, 2013 Aug. 9, 2013 - Apr. 12, 2013 Building age (Note 1) 5.0 years 1.0 year 5.1 years 1.8 years 25.3 years 22.9 years 10.9 years (Note 2)

NOI yield (Note 1) 6.1% 4.3% 6.0% 6.1% 4.6% 4.8% -

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

10 Properties Acquired During the 16th Fiscal Period

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

■ Convenient transportation access ■ Demand for office space in Shibuya, • 9-minute walk from Shibuya Station on the Dogenzaka, Sakuragaoka, and Nanpeidai JR Line, 3-minute walk from a major Other business, commercial and hotel complex 20.0% directly connected to Shibuya Station, and Information and 3-minute walk from Shinsen Station on the Commercial Communication, Keio Inokashira Line. (Wholesale & Retail) and IT 54.0% • Access to multiple lines such as JR, Tokyo 10.0% Metro, Tokyu, and Keio. Services ■ Characteristics of the local area 16.0% Source: Sanko Estate • Further development is expected since

Tokyo Metro

Shibuya area enjoys abundant demand for Fukutoshin Line JR Yamanote Line Yamanote JR office space primarily from IT and IT-related Shibuya Edge companies, and redevelopment of the area Seibu around Shibuya Station is planned. Tokyu Tokyo Metro 109 Seibu Hanzomon Line Shibuya Sta. Block Daiwa Tokyo Metro Shibuya 2 Shibuya Sta. Shibuya Sta. Ginza Line SS Acquisition Price 4,500 million yen Total floor area 5,644.91m E SPACE Tokyu Denen Mark City TOWER Toshi Line Expected NOI yield 4.6% Appraisal price 4,630 million yen (as of May 2013) Keio Tokyu Plaza Shibuya Sta. Dogenzaka Block Shinsen Inokashira Line Tosen Dogenzaka Shibuya Sta. South Block 28-1 Maruyama-cho, March 11, 1988 (newly built) Sta. Cerulean Tower Address Completion Daini Building Tokyu Hotel Tokyu Shibuya-ku, Tokyo October 6, 1988 (expansion) Toyoko Line Site area 721.34m2 Tokyu 100% (as of July 2013 (the time of Occupancy rate Structure and floors SRC B1/11F acquisition))

Akasaka Business Place (acquired on August 9, 2013)

■ Property close to Akasaka Station • 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 other multiple lines. ■ Characteristics of the local area • There are many leading domestic corporations and foreign companies, and it is one of the foremost popular areas in Tokyo packed with many commercial and service-related companies. • There are commercial TV stations, major advertising （Tentative Name）Kioicho Project Tokyo Metro Nagatacho Sta. agencies, and IT/media Nagatacho Marunouchi Line Sta. Acquisition Price 9,200 million yen related companies around Tokyo Metro the property, and it has a Akasaka Excel Yurakucho Line Expected NOI yield 4.8% Hotel Tokyu Akasaka- high concentration of Tokyo Metro mitsuke Sta. National Address 2-14-5 Akasaka, Minato-ku, Tokyo Hanzomon Line Hibiya Diet companies related to such Tokyo Metro High Building Ginza Line School Site area 2,521.95m2 industries. Hie jinja shrine Structure and floors SRC B2/7F

Tokyo Metro ■ Redevelopment Akasaka Namboku Line Kokkaigijidoumae Biz Tower Sta. Total floor area 13,554.49m2 plans Kokkaigijidoumae Sta. Kantei Appraisal price 10,200 million yen (as of June 2013) around the property akasaka TBS Sacas

Tameike- Akasaka Sanno Sta. Completion September 13, 1990 • Multiple redevelopment Akasaka Sta.Business Place plans are underway Occupancy rate 89.2% (as of August 2013 (the time of planned acquisition)) Tokyo Metro Akasaka Ichome Project around the property. Chiyoda Line

I. Overview of Daiwa Office Investment Corporation 11 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 ■ Large-scale Office Building (Note) Supply in 23 Wards of Tokyo

(yen/tsubo) (%) (thousand m2) 25,000 10 2,500 2,160 23,000 8 2,000 1,750 21,000 6 1,500 1,540 1,250 1,210 1,190 1,170 1,160 19,000 4 1,000 1,020 910 910 770 860 850 650 17,000 2 500 580 590 Average rents of Vacancy rate of 15,000 existing buildings (left axis) existing buildings (right axis) 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (Source) Miki Shoji Completed properties Incomplete properties

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

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

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

(％) (yen/tsubo) 100 25,000

97.7 96.4 95.9 95.4 95 95.0 94.8 94.3 94.3 94.3 94.6 92.8 20,000 92.4 90

Occupancy rate (actual) Occupancy rate (forecast in Jul. 2013) Average contract rents 85 85.7 Occupancy rate (previous forecast in Jan. 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 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period (Note) Average monthly contracted rents with tenants at the end of each fiscal period. ■ Tenant Diversification in Leased Area ■ Changes and Reasons for Tenants Moving In/Out (Note) (No. of cases) (%) (No. of cases) 500 100.0 60 50 44 40 38 30 33 30 31 400 80.0 24 24 20 17 18 18 1,000m2 or more (left axis) 16 13 10 9 300m2 or more, less than 1,000m2 (left axis) 5 6 4 Less than 300m2 (left axis) 41 0 -2 300 Occupancy rate (right axis) 60.0 -10 -12 38 174 -20 -14 -15 41 -20 -19 -20 43 42 -24 -25 -26 42 159 -30 32 145 200 127 127 133 40.0 -40 115 -50 -53 -60 7th 8th 9th 10th 11th 12th 13th 14th 15th Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period 100 139 20.0 110 119 Number of Move Ins Number of Move Outs Difference 97 105 107 103 Breakdown of 15th Cost Space Better Consolidation Downsizing Other Total Period Reduction Expansion Location 0 0.0 Moving in 2 13 0 0 4 5 24 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 Moving out 2 0 4 5 0 4 15 (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.

12 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. • Introduce effective principles of competition so that maintaining fair cost • Regularly visit leasing agents and enhance recognition of properties and price level will be enabled, and continue to look into construction costs subject to leasing improvement and confirm the amount of feedback and of heat, light 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 • Raise the added value and competitiveness by advancing initiatives for neighboring properties and perform term adjustments that can produce environmental certification systems such as GRESB and environmental good results with the people in charge of each company (face-to-face responses at existing properties. leasing). ■ Collaboration with Group ■ Relations with Tenants: Strengthening Communication • Reinforce leasing by utilizing Daiwa Securities’ branch network. with Tenants • Implement leasing that utilizes Daiwa Securities Group’s network of • Further strengthen relations with tenants by deepening interaction among corporate clients. 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 15th 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 78.4 55.9 50.0 51.9 50.0 50.0

10.3 0.0 0.0 0.0 0.0 0.0 Time of Acquisition 15th Time of Acquisition 15th 12th 13th 14th 15th (Dec. 2012) Period (Feb. 2013) 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 Hibiya directly connected to the passageway of Shinjuku lines and a 2-minute walk from the underground Line and located right outside the subway exit. 3-chome subway station. 100doorway which leads to the underground shopping 100• There are many affiliate companies of parent 100 • Local development can be expected with arcade. companies which have headquarters in the area development of station building scheduled to open • A large-scale redevelopment is planned in the around Tokyo Station and Ginza area. in the spring of 2016 as well as with infrastructure 50future and business accumulation is growing year 50 50 development. by year.

Implement Strategic Renewals0 Aimed at Improving Property0 Specifications 0

■ Daiwa Ginza ■ Daiwa Azabudai ■ Shinjuku Maynds Tower ■ Total portfolio Introduced “LED lighting” in Renewal construction (entrance Introduced “LED lighting” in Long-period earthquake Installed disaster prevention common areas ceiling) basement parking area countermeasure construction on cabinets (total of 28) in elevators (five) preparation for disasters

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 May 31, 2013)

During the 15th Fiscal Period, DOI conducted debt financing of 21.7 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 Procurement of Interest-Bearing Liabilities (billion yen) 280 70.0(％) (Year) 8.0 4.0 (Year) Interest-bearing liabilities (left axis) Average year remaining at the period end (right axis) Average remaining years at the time of 240 LTV (based on acquisition price) (Note) (right axis) 7.0 3.5 60.0 procurement during the 15th Fiscal period (left axis)

6.0 5.9 3.0 200 50.0

Medium-to-long term, upper-limit LTV target range 5.0 2.5 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) (including investment corporation bonds) 25,000 Balance Financial institution (mm yen) Share

20,000 Sumitomo Mitsui Banking Corporation 23,500 18.3% Development Bank of Japan 16,750 13.1% Sumitomo Mitsui Trust Bank 16,350 12.7% 15,000 Shinsei Bank 10,000 7.8% Resona Bank 9,000 7.0% Mizuho Bank 7,900 6.2% 10,000 21,700 Aozora Bank 6,000 4.7% Kansai Urban Banking Corporation 5,000 3.9% Mizuho Trust and Banking 4,500 3.5% 5,000 Mitsubishi UFJ Trust and Banking 3,000 2.3% The Bank of Fukuoka 3,000 2.3% 0 ORIX Bank Corporation 2,500 1.9% 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th The Gunma Bank 2,500 1.9% Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period The Shizuoka Bank 2,000 1.6% The Musashino Bank 1,500 1.2% ■ Ratio of Long- to ■ Ratio of Fixed- to The Hiroshima Bank 1,000 0.8% Short-Term Liabilities Floating-Rate Borrowings The Kagawa Bank 1,000 0.8% End of 15th Fiscal Period End of 15th Fiscal Period The 77 Bank 1,000 0.8% Tokio Marine & Nichido Fire Insurance 1,000 0.8% The Bank of Yokohama 500 0.4% 19.5% The Yamaguchi Bank 500 0.4% 29.2% The Higashi-Nippon Bank 500 0.4% Taiyo Life Insurance Company 300 0.2% Nippon Life Insurance Company 300 0.2% Fukoku Mutual Life Insurance 200 0.2% Investment corporation bonds 8,500 6.6% 70.8% 80.5% Total 128,300 100.0%

(Note) Balances less than a million yen have been rounded down. Long-term borrowings, etc. Fixed interest rates Financial institutions from which borrowings were newly procured during Current portion of long-term borrowings (Includes current portion of investment corporation bonds) Floating interest rates the 15th Fiscal Period are boxed in red.

14 Description of Asset Manager

Organization of Asset Manager (as of June 26, 2013)

■ 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 (Business Planning Dept.) Representative Director Paid-in Capital 200 million yen Vice President and Employees 47 Yoshiki Nishigaki (Head of Fund Management Dept.) Representative Director Registration of Financial Instruments No. 355 (Kinsho), Director-General, Kanto Local Business Operator Finance Bureau Director Naoyuki Owa (Head of Administrative 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 Administration Corporate Planning Private Fund Department Department Customer Relations 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 Investment Planning Team Management 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. ③ Special Account Management Ofﬁcers Institution Executive Director: Nobuaki Omura Sumitomo Mitsui Trust Bank, Limited Supervisory Director: Takayuki Hiraishi ④ Supervisory Director: Hiroshi Sakuma ⑤ General Administrator (Investment Corporation Bonds)

Supporting Company Accounting Auditor Sumitomo Mitsui Banking Corporation

Daiwa Securities Group Inc. KPMG AZSA LLC

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

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

1. Management Status and Other Performance Highlights Data

15th Period 14th Period 13th Period 12th Period 11th Period Fiscal Period From Dec. 1, 2012 From June 1, 2012 From Dec. 1, 2011 From June 1, 2011 From Dec. 1, 2010 ( To May 31, 2013 ) ( To Nov. 30, 2012 ) ( To May 31, 2012 ) ( To Nov. 30, 2011 ) ( To May 31, 2011 ) (1) Operating Performance (Millions of yen, except per unit data or where otherwise indicated) Operating revenues 7,615 7,566 7,431 7,606 6,759 Rental revenues 7,520 7,384 7,338 7,551 6,715 Operating expenses 4,306 4,419 4,341 4,289 3,935 Property-related expenses 3,499 3,602 3,533 3,472 3,166 Operating income 3,309 3,147 3,090 3,317 2,824 Ordinary income 2,590 2,365 2,022 1,768 1,588 Net income 2,589 2,369 2,021 1,767 1,453 (2) Properties, etc. (as of end of period) Total assets 342,573 325,666 325,316 323,218 298,626 [period-on-period percentage changes] [+5.2%] [+0.1%] [+0.6%] [+8.2%] [+1.4%] Interest-bearing liabilities 128,300 112,081 111,391 109,917 86,250 Net assets 201,345 201,118 200,800 200,548 200,234 [period-on-period percentage changes] [+0.1%] [+0.2%] [+0.1%] [+0.2%] [+0.1%] Unitholders’ capital 198,781 198,781 198,781 198,781 198,781 (3) Distributions Total distribution amount 2,589 2,369 2,021 1,767 1,453 Dividend payout 100.0% 100.0% 100.0% 100.0% 100.0% (4) Per Unit Information Total number of units issued (units) 395,798 395,798 395,798 395,798 395,798 Net assets per unit (yen) 508,707 508,132 507,331 506,693 505,900 Distribution per unit (yen) 6,542 5,986 5,107 4,464 3,671 Distribution amount from earnings per unit (yen) 6,542 5,986 5,107 4,464 3,671 Distribution amount in excess of earnings per unit (yen) – – – – – (5) Financial Indicators ROA Notes 2 0.8% 0.7% 0.6% 0.6% 0.5% [annual rate] and 3 [1.6%] [1.5%] [1.2%] [1.1%] [1.1%] ROE Notes 3 1.3% 1.2% 1.0% 0.9% 0.7% [annual rate] and 4 [2.6%] [2.4%] [2.0%] [1.8%] [1.5%] Capital ratio 58.8% 61.8% 61.7% 62.0% 67.1% [period-on-period percentage changes] [−3.0%] [0.0%] [−0.3%] [−5.0%] [−0.9%] LTV (loan to value) 37.5% 34.4% 34.2% 34.0% 28.9% Property leasing cash flows (NOI) Note 5 5,300 5,088 5,172 5,427 4,830 (6) Other Referential Information Number of investment properties 41 38 37 36 35 Number of tenants Note 6 410 376 355 340 334 Total rentable area (m2) 225,651.87 208,733.38 207,277.34 205,318.62 191,346.43 Occupancy rate Note 7 95.0% 96.4% 94.3% 92.4% 95.4% Depreciation 1,280 1,306 1,367 1,348 1,281 Capital expenditures 278 357 641 240 540

(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 11th Fiscal Period are the annualized figures calculated based on 182 days of management. Figures for the 12th Fiscal Period are the annualized figures calculated based on 183 days of management. Figures for the 13th Fiscal Period are the annualized figures calculated based on 183 days of management. Figures for the 14th Fiscal Period are the annualized figures calculated based on 183 days of management. Figures for the 15th Fiscal Period are the annualized figures calculated based on 182 days of management. (Note 4) ROE: Net income ÷ [(Net assets at beginning of period + Net assets at end of period) ÷ 2] × 100 (Note 5) Property leasing cash flows (NOI): Rental revenues − Property-related expenses + Depreciation (Note 6) Number of tenants is the number of end tenants. When there is a tenant occupying multiple buildings, the concerned tenant is counted and stated for each individual building. (Note 7) Occupancy rate: Total leased area ÷ Total rentable area

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 332,086 million yen (sum total of acquisition prices) as of the last day of May 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 December 1, 2012 to May 31, 2013) During the 15th Fiscal Period, owing to economic policy especially focusing on financial, the appreciation of the yen was quickly corrected and stock prices rose. In addition, there has been a recovery in consumer spending due to the improvement in consumer confidence, and improvement in corporate performance and employment. In the office rental market in central Tokyo, initially, vacancy rates were on a downward trend, but there was a bottoming out in the latter half. On the other hand, for office rents there was a rise in large buildings in some areas, but slightly downward is the main trend in the overall market. In the office transaction market, property acquisitions by real estate companies and funds (including REITs) have increased significantly as a result of 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 “shinyon curumu” (acquisition price: 9,650 million yen) in December 2012 and April 2013 with some floors unoccupied, “Honshu Meieki Building” (acquisition price: 5,300 million yen) in February 2013 and “Kamiooka Eye Mark Building” (acquisition price: 2,000 million yen) in March 2013. Moreover, DOI acquired additional sectional ownership of existing property “Sunline Building No. 7” (acquisition price: 230 million yen), and owns all sectional ownership for the property. As a result, DOI’s assets under management at the end of the 15th Fiscal Period (as of May 31, 2013) totaled 41 properties, the sum total of acquisition prices amounted to 332,086 million yen. For internal growth, in spite of the severe office rental market, acquisitioning properties with low occupancy rates, DOI tried to improve tenant satisfaction through developing good relations with tenants and strengthen cooperation with leasing brokers and property managers. As a result of proactive leasing activities, the contract area of occupancy for the 15th Fiscal Period was higher than the previous and the occupancy rate at the end of the 15th Fiscal Period (as of May 31, 2013) was maintained at 95.0%.

II. Asset Management Report 17 (3) Overview of Capital Procurement (A) Procurement of Funds for Acquisitions DOI implemented the following financing activities during the 15th Fiscal Period to acquire “shinyon curumu,” “Honshu Meieki Building” and “Kamiooka Eye Mark Building,” and acquire additional sectional ownership of an existing property “Sunline Building No. 7.” (a) On December 3, 2013, DOI borrowed 4,000 million yen from Development Bank of Japan Inc. and Shinsei Bank, Ltd. to acquire the new property (“shinyon curumu” delivered on December 3, 2013). (b) On February 1, 2013, DOI borrowed 5,500 million yen from Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, Limited, Tokio Marine & Nichido Fire Insurance Co., Ltd., Yamaguchi Bank, Ltd., and The Higashi-Nippon Bank, Limited. to acquire the new property (“Honshu Meieki Building” delivered on February 1, 2013). (c) On March 1, 2013, DOI borrowed 2,000 million yen from Resona Bank, Ltd. to acquire the new property (“Kamiooka Eye Mark Building” delivered on March 1, 2013). (d) On March 29, 2013, DOI borrowed 200 million yen from Fukoku Mutual Life Insurance Company to acquire the additional sectional ownership of an existing property (“Sunline Building No. 7” delivered on March 29, 2013 and May 29, 2013). (e) On April 12, 2013, DOI borrowed 4,500 million yen from Sumitomo Mitsui Trust Bank, Limited, Development Bank of Japan Inc., Aozora Bank, Ltd., The Gunma Bank, Ltd. and The Musashino Bank, Ltd. to acquire the new property (“shinyon curumu” delivered on April 12, 2013).

(B) Procurement of Funds for Repayment of Borrowings (Refinancing) DOI implemented the following financing activities during the 15th Fiscal Period for repayment of borrowings. (a) On January 10, 2013, DOI borrowed 1,000 million yen from ORIX Bank Corporation for repayment of 1,000 million yen due on January 10, 2013. (b) On February 28, 2013, DOI borrowed 4,500 million yen in total from Aozora Bank, Ltd. and Kagawa Bank, Ltd. for repayment of 4,481 million yen due on February 28, 2013.

(C) Status of Interest-Bearing Liabilities As a result of the above, the balance of interest-bearing liabilities outstanding at the end of the 15th Fiscal Period (as of May 31, 2013) stood at 128,300 million yen (long-term debt: 119,800 million yen; investment corporation bonds: 8,500 million yen). The balance of long-term debt due within one year and investment corporation bonds redeemable within one year stood at 32,400 million yen and 5,000 million yen, respectively. During the 15th Fiscal Period, DOI promoted the diversification of lenders by borrowing from new lenders (such as life insurance companies, non-life insurance companies and regional banks). In addition, the average remaining repayment period has been extended from 2.25 years (14th Fiscal Period) to 2.49 years (15th Fiscal Period) because DOI changes borrowing period to 5~7 years. Furthermore, borrowing costs were reduced through the reduction of credit spread.

18 (4) Capital Expenditures During the 15th Fiscal Period The following summarizes the major construction work that constitutes capital expenditures during the 15th Fiscal Period. Capital expenditures amounted to 278 million yen, and combined with the 215 million yen in repair expenses, total of 493 million yen in construction work was implemented.

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

Shinjuku Maynds Tower Construction work for renovation of the From: Nov. 2012 22 (Shibuya-ku, Tokyo) 4F, 15F, 17F and common areas To: Dec. 2012

Shinjuku Maynds Tower Construction work for renovation of the From: Apr. 2013 21 (Shibuya-ku, Tokyo) 3F, 18F, 21F and common areas To: May 2013

Shinjuku Maynds Tower Construction work for renewal of the From: Apr. 2013 19 (Shibuya-ku, Tokyo) electricity meter To: May 2013

From: Nov. 2012 Other Buildings 216 To: May 2013

Total 278

(5) Overview of Financial Performance and Distributions As a result of the management described above, for the 15th Fiscal Period, DOI recorded 7,615 million yen in operating revenue, 3,309 million yen in operating income, 2,590 million yen in ordinary income and 2,589 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 15th Fiscal Period end, excluding fractions of the distribution amount per unit that are less than 1 yen. Accordingly, DOI declared a distribution of 6,542 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 economic stimulus and monetary easing as well as the recovery in overseas economies. However, there still is a need to pay attention to the possibility in rising of long-term interest rates, the uncertainty in overseas economies and financial markets, the relations with various countries and the consumption tax rate hike because they might put downward pressure on the economy. In the office rental market, with the improvement of corporate performance and the employment situation, decrease in the supply and vacancies of new office buildings and undervalued rents boost demand, both vacancy rates and rents are expected to make a gradual recovery centering on prime properties. In the office transaction market, acquisition demand of real estate companies and funds (including REITs) is expected to be stronger against the backdrop of the favorable financing environment, decline in expected yields, 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 15th Fiscal Period, DOI additionally acquired “shinyon curumu” which is situated in Tokyo, “Honshu Meieki Building” which is situated in Nagoya City, Aichi, and “Kamiooka Eye Mark Building” which is situated in Yokohama City, Kanagawa. In addition, DOI acquired additional sectional ownership of the existing property “Sunline Building No. 7” and owns all sectional ownership of the property. DOI believes the acquisitions will contribute to further stabilization and enhancement of the portfolio. DOI will continue to strive to acquire properties that are in line with the investment strategy described above.

20 (C) Financial Strategy DOI will conduct disciplined financial management based on the following content. From the 16th Fiscal Period, the control index for financial management will be changed from the existing ratio of interest-bearing liabilities to acquisition price to the ratio of interest-bearing liabilities to total assets (LTV). (a) In principle, control leverage by keeping the LTV ratio (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 May 31, 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

Shinjuku Maynds Tower Construction work for renovation From: Aug. 2013 41 – – (Shibuya-ku, Tokyo) of common areas To: Oct. 2013

Shinjuku Maynds Tower Construction work for renewal of From: Aug. 2013 40 – – (Shibuya-ku, Tokyo) exclusive part lighting To: Oct. 2013

Construction work for Shinjuku Maynds Tower replacement of vessel valves of From: Aug. 2013 27 – – (Shibuya-ku, Tokyo) CO2 fire extinguishing To: Oct. 2013 equipment

Daiwa Shibuya SS Construction work for renovation From: Oct. 2013 23 – – (Shibuya-ku, Tokyo) of north side curtain wall To: Nov. 2013

Daiwa Ginza Construction work for renovation From: Sep. 2013 20 – – (Chuo-ku, Tokyo) of basement ventilation To: Nov. 2013

II. Asset Management Report 21 III. Balance Sheets

As of May 31, 2013 and November 30, 2012 (Thousands of yen)

As of As of May 31, 2013 November 30, 2012

Assets Current Assets: Cash and cash equivalents [Note 10] 16,057,773 16,046,965 Tenant receivables 230,151 261,650 Consumption tax refundable 248,782 – Prepaid expenses 262,955 246,573 Deferred tax assets [Note 8] 3,167 18 Other current assets 119,179 94,278 Total Current Assets 16,922,007 16,649,484 Investment Properties, at cost: [Notes 3 and 11]

Land including trust accounts 260,705,094 248,877,227

Buildings and structures including trust accounts [Note 4] 76,824,423 70,528,102

Machinery and equipment in trust 822,580 802,224

Tools, furniture and fixtures including trust accounts 93,366 88,625

Construction in progress including trust accounts 39,828 353,449

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

Less: accumulated depreciation (16,191,817) (14,911,383)

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

Total Investment Properties, net 325,017,219 308,461,989

Other Assets:

Right of trademark 1,637 1,825

Lease and guarantee deposits in trust 113,684 113,684 Long-term prepaid expenses 483,943 387,956 Deferred tax assets [Note 8] 11,321 18,818 Deferred investment corporation bond issuance costs 8,216 16,752 Derivative assets [Note 10] 1,234 1,119 Others 13,604 14,077 Total Other Assets 633,639 554,231 Total Assets 342,572,865 325,665,704

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

(Thousands of yen)

As of As of May 31, 2013 November 30, 2012

Liabilities Current Liabilities: Operating accounts payable 571,325 546,346 Investment corporation bond due within one year [Notes 6 and 10] 5,000,000 5,000,000 Long-term debt due within one year [Notes 6 and 10] 32,400,000 22,981,250 Accounts payable – other 261,091 258,426 Income taxes payable 779 798 Accrued consumption taxes 32,428 85,803 Rent received in advance 874,930 831,967 Other current liabilities 120,599 207,903

Total Current Liabilities 39,261,152 29,912,493

Long-Term Liabilities:

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

Long-term debt [Notes 6 and 10] 87,400,000 80,600,000

Tenant security deposits including trust accounts [Note 10] 11,034,249 10,482,828

Derivative liabilities [Note 10] 32,094 52,639

Total Long-Term Liabilities 101,966,343 94,635,467

Total Liabilities 141,227,495 124,547,960

Net Assets [Notes 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 2,589,422 2,369,494 Total Unitholders’ Equity 201,370,373 201,150,445 Valuation and translation adjustments Deferred gains or losses on hedges (25,003) (32,701) Total Valuation and Translation Adjustments (25,003) (32,701) Total Net Assets 201,345,370 201,117,744 Total Liabilities and Net Assets 342,572,865 325,665,704

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

III. Balance Sheets 23 IV. Statements of Income

For the six months ended May 31, 2013 and November 30, 2012 (Thousands of yen) For the six months ended For the six months ended May 31, 2013 November 30, 2012 Operating Revenues and Expenses Operating Revenues: [Note 7] Rental revenues 7,519,691 7,384,164 Other revenues related to property leasing 95,384 182,050 Total Operating Revenues 7,615,075 7,566,214 Operating Expenses: Property-related expenses [Note 7] 3,499,438 3,601,887 Asset management fees 634,586 621,489 Asset custody fees 16,655 16,264 Administrative service fees 61,078 63,886 Trust fees 20,657 23,137 Directors’ compensation 5,400 5,400 Other operating expenses 68,526 87,363 Total Operating Expenses 4,306,340 4,419,426 Operating Income 3,308,735 3,146,788 Non-Operating Revenues and Expenses Non-Operating Revenues: Interest income 924 1,386 Reversal of distribution payable 1,024 1,083 Other non-operating revenues 13,275 2,938 Total Non-Operating Revenues 15,223 5,407 Non-Operating Expenses: Interest expense 492,197 534,556 Interest expense on investment corporation bonds 95,533 97,319 Borrowing expenses 135,546 142,688 Other non-operating expenses 10,632 12,685 Total Non-Operating Expenses 733,908 787,248 Ordinary Income 2,590,050 2,364,947 Extraordinary Income: Gain on donation of tangible fixed asset – 5,315 Total Extraordinary Income – 5,315

Income Before Income Taxes 2,590,050 2,370,262 Income taxes – current 870 977 Income taxes – deferred 5 (1) Total Income Taxes [Note 8] 875 976 Net Income 2,589,175 2,369,286 Retained Earnings Brought Forward 247 208 Retained Earnings at End of Period 2,589,422 2,369,494

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 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

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

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

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

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 May 31, 2013 and November 30, 2012 Note 1 – Organization and Basis of Presentation Organization Daiwa Office Investment Corporation (former DA Office Investment Corporation: hereinafter, “DOI”) was established on July 11, 2005 as an investment corporation under the Law Concerning Investment Trusts and Investment Corporations of Japan (hereinafter, the “Investment Trust Law of Japan”) by the founder (the former daVinci Select; presently, Daiwa Real Estate Asset Management (hereinafter, “DREAM”)). DOI is an externally managed real estate fund, established as an investment corporation. DREAM, as DOI’s asset management company, is engaged in acquiring, managing, leasing, and renovating office properties. Daiwa Securities Group Inc. currently owns 100% of DREAM. On October 18, 2005, DOI had raised approximately 49,498,710 thousand yen through an initial public offering of units. Those units are listed on the J-REIT section of the Tokyo Stock Exchange. As of May 31, 2013, DOI had ownership or beneficiary interests in 41 office properties with approximately 225,652 square meters of rentable office space and had leased office space to 410 tenants engaged in a variety of businesses. The occupancy rate for the office properties was approximately 95.0%.

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 May 31, 2013 As of November 30, 2012 Buildings and structures 2-64 years 2-56 years Machinery and equipment 2-23 years 2-23 years Tools, furniture and fixtures 5-18 years 5-18 years Costs related to the renovation, construction and improvement of properties are capitalized. Expenditures for repairs and maintenance which do not add to the value of a property or prolong its useful life are expensed as incurred.

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

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

Real Estate Taxes Real estate taxes are imposed on properties on a calendar year basis and expensed when incurred. In terms of newly purchased properties, DOI capitalizes a portion of the real estate taxes that relate to a period from the purchase date of each property until the end of the calendar year as part of the acquisition cost of the relevant property. Capitalized real estate taxes amounted to 49,317 thousand yen for the six months ended May 31, 2013 and 7,948 thousand yen for the six months ended November 30, 2012.

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

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

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

Consumption Taxes Consumption taxes are excluded from transaction amount. Non-deductible consumption taxes are recognized as expenses. Note 3 – Schedule of Tangible Fixed Assets of Investment Properties Investment properties as of May 31, 2013 and November 30, 2012 consisted of the following: (Thousands of yen) As of May 31, 2013 As of November 30, 2012 Acquisition Accumulated Acquisition Accumulated costs depreciation Book value costs depreciation Book value Land including trust accounts 260,705,094 – 260,705,094 248,877,227 – 248,877,227 Buildings and structures 76,824,423 (15,761,706) 61,062,717 70,528,102 (14,516,629) 56,011,473 including trust accounts Machinery and 822,580 (370,946) 451,634 802,224 (342,213) 460,011 equipment in trust Tools, furniture and fixtures 93,366 (49,406) 43,960 88,625 (42,782) 45,843 including trust accounts Construction in progress 39,828 – 39,828 353,449 – 353,449 including trust accounts Other tangible fixed assets 9,759 (9,759) – 9,759 (9,759) – including trust accounts Total 338,495,050 (16,191,817) 322,303,233 320,659,386 (14,911,383) 305,748,003 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 May 31, 2013 and November 30, 2012. Note 5 – Net Assets DOI issues only non-par value units in accordance with the Investment Trust Law of Japan and all of the issue prices of new units are designated as stated capital. DOI maintains at least 50,000 thousand yen as the minimum amount of net assets, as required by the Investment Trust Law of Japan.

VI. Notes to Financial Statements 27 Note 6 – Long-Term Debt and Investment Corporation Bonds Long-term debt and investment corporation bonds as of May 31, 2013 and November 30, 2012 consisted of the following: (Thousands of yen) As of As of May 31, November 30, 2013 2012 Unsecured loans due 2013 to 2020, principally from banks and insurance companies with interest rates mainly ranging from 0.4% to 1.4% 119,800,000 103,581,250 2.8% unsecured bond due 2019 3,500,000 3,500,000 1.9% unsecured bond due 2013 5,000,000 5,000,000 Total 128,300,000 112,081,250 [Note] The interest rate presented is the spot rate as of May 31, 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 long-term debt and investment corporation bonds as of May 31, 2013 were as follows: (Thousands of yen) Due within one year 37,400,000 Due after one to two years 29,500,000 Due after two to three years 8,300,000 Due after three to four years 18,200,000 Due after four to five years 19,400,000 Due after five years 15,500,000 Note 7 – Operating Revenues and Property-Related Expenses Operating revenues and property-related expenses for the periods ended May 31, 2013 and November 30, 2012 were as follows: (Thousands of yen) For the six months ended For the six months ended May 31, 2013 November 30, 2012 A. Operating revenues Rental revenues 7,519,691 7,384,164 Other revenues related to property leasing 95,384 182,050 Total operating revenues 7,615,075 7,566,214 B. Property-related expenses Consignment expenses 591,514 549,516 Utilities expenses 678,874 737,021 Taxes and dues 671,599 652,110 Non-life insurance expenses 12,101 11,848 Repair expenses 215,111 280,099 Depreciation 1,280,207 1,305,782 Other property-related expenses 50,032 65,511 Total property-related expenses 3,499,438 3,601,887 C. Operating income from property leasing [A – B] 4,115,637 3,964,327 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 May 31, 2013 and 0.04% for the six months ended November 30, 2012. The following table summarizes the significant differences between the statutory tax rates and DOI’s effective tax rates for financial statement purposes. For the six months ended For the six months ended May 31, 2013 November 30, 2012 Statutory tax rate 36.59% 36.59% Deductible dividends (36.58) (36.57) Others 0.02 0.02 Effective tax rate 0.03% 0.04% 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 May 31, 2013 and November 30, 2012 were as follows: (Thousands of yen) As of May 31, 2013 As of November 30, 2012 Deferred tax assets: Accrued enterprise tax 13 18 Deferred losses on hedges 14,897 19,227 Total deferred tax assets 14,910 19,245 Deferred tax liabilities: Deferred gains on hedges 422 409 Total deferred tax liabilities 422 409 Net deferred tax assets 14,488 18,836

Note 9 – Per Unit Information Information about net assets per unit and net income per unit as of May 31, 2013 and November 30, 2012 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 May 31, 2013 November 30, 2012 Net assets at period end per unit 508,707 yen 508,132 yen Net income per unit 6,541.66 yen 5,986.10 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 May 31, 2013 November 30, 2012 Net income (thousands of yen) 2,589,175 2,369,286 Amount not available to ordinary unitholders (thousands of yen) – – Net income available to ordinary unitholders (thousands of yen) 2,589,175 2,369,286 Average number of units during the period (units) 395,798 395,798 Note 10 – Financial Instruments (For the six months ended May 31, 2013 and November 30, 2012) (1) Status of Financial Instruments (A) Policy for financial instruments DOI procures various financing methods (such as borrowings, issuance of investment corporation bonds, issuance of investment units) for acquisition and renovation of investment properties, payments of dividends and reimbursement of bank borrowings. In financing through interest-bearing debt, to secure stable financing capacity and reduce future risk of rising interests, DOI secures long-term fixed-rate borrowings with well-diversified maturities. DOI manages surplus funds with safe and highly liquid money claims and securities (in principle, deposits). Derivative transactions are 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 May 31, 2013 and November 30, 2012 are as follows. The financial instruments whose fair value is extremely difficult to estimate are excluded from the following table. (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. (As of November 30, 2012) (Thousands of yen) Book Value Fair Value Difference Cash and cash equivalents 16,046,965 16,046,965 – Total 16,046,965 16,046,965 – Investment corporation bond due within one year 5,000,000 5,004,000 4,000 Long-term debt due within one year 22,981,250 22,983,567 2,317 Investment corporation bond 3,500,000 3,500,000 – Long-term debt 80,600,000 80,596,241 (3,759) Total 112,081,250 112,083,808 2,558 Derivative transactions(*) (51,520) (51,520) – (*) The value of assets and liabilities arising from derivatives is shown at net value and with the amount in parenthesis indicating the net liability position. Notes: 1. Methods to estimate fair value of financial instruments and derivative transactions 30 Assets (1) Cash and cash equivalents As these instruments are settled in short period of time, their fair value and book value are nearly identical. Therefore, for these items, the book value is assumed as the fair value. Liabilities (1) Investment corporation 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. (2) Long-term debt due within one year and long-term debt For long-term debt with floating interest rates, their fair value and book value are nearly identical and there are no significant changes in DOI’s credit risk after borrowing. Therefore, for these items, their book value is assumed as their fair value. For long-term debt with fixed interest rates, their fair value is based on the present value of principle and interest cash flows discounted at the current interest rate estimated to be applied if similar new debt is entered into. However, the fair value of certain floating-rate long term debt that qualifies for the special treatment of interest-rate swaps is determined by discounting the sum of its principal and interest payments net of any cash flows from the interest-rate swaps.

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

(As of 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 27,350,000 for interest rate swap Receive floating Long-term debt (27,350,000) –(**) transactions and pay fixed 71,250,000 Total (53,350,000) (39,478) (As of November 30, 2012) (Thousands of yen) Method of Hedge Contract Amount Fair Accounting Type of Derivative Transactions Hedged Items (due after one year) Value(*) Interest rate swap transactions Deferral hedge Receive floating Long-term debt 43,900,000 (51,520) accounting method and pay fixed (37,900,000) Special treatment Interest rate swap transactions for interest rate swap Receive floating Long-term debt 27,350,000 –(**) transactions and pay fixed (27,350,000) Total 71,250,000 (65,250,000) (51,520) *The fair value is provided by the financial institution. **The values of derivatives qualifying for special treatment of interest rate swap transactions are included in that of related long-term debt. This is because such swaps are handled together with hedged long-term debt.

2. Financial instruments whose fair value is extremely difficult to estimate. Tenant security deposits including trust accounts (with a book value of 11,034,249 thousand yen as of May 31, 2013 and 10,482,828 thousand yen as of November 30, 2012) that have been deposited from tenants are not marketable and the actual deposit period cannot be reliably determined, thus making it impossible to reasonably estimate their future cash flows, and therefore, it is considered to be extremely difficult to estimate their fair value.

VI. Notes to Financial Statements 31 3. Redemption schedule for money claims (As of 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 – – – – – (As of November 30, 2012) (Thousands of yen) Due within Due after Due after Due after Due after Due after 1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years 5 years Cash and cash equivalents 16,046,965 – – – – – Total 16,046,965 – – – – – 4. Redemption schedule for investment corporation bond and long-term debt (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 5,000,000 – – – – – within one year 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

(As of November 30, 2012) (Thousands of yen) Due within Due after Due after Due after Due after Due after 1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years 5 years

Investment corporation bond due 5,000,000 – – – – – within one year Long-term debt due within one year 22,981,250 – – – – – Investment corporation bond – – – – – 3,500,000 Long-term debt – 33,900,000 16,600,000 2,000,000 22,750,000 5,350,000 Total 27,981,250 33,900,000 16,600,000 2,000,000 22,750,000 8,850,000

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 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(*1) May 31, 2013 308,107,273 16,869,080 324,976,353 302,510,000 (For the six months ended November 30, 2012) (Thousands of yen) Book Value Fair value as of As of Change As of November 30, 2012 May 31, 2012 during the period(*2) November 30, 2012 307,324,542 782,731 308,107,273 276,330,000

(Note 1) The book value represents the acquisition cost less accumulated depreciation. (Note 2) Significant changes (*1) 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). (*2) For the six months ended November 30, 2012, the major reason of increase is acquisition of “West Park Osaki” (1,650,000 thousand yen). The major reason of decrease is depreciation (1,305,782 thousand yen). (Note 3) The fair values as of May 31, 2013 and November 30, 2012 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 May 31, 2013 and November 30, 2012 are disclosed in Note 7. 32 Note 12 – Transactions with Related Parties (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 247.3 billion 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) Long-term Investment Other debt due Long-term Account corporation current within one debt – bonds liabilities year Balance at end of period 3,500,000 20,305 5,000,000 11,350,000 – (thousands of yen)

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

VI. Notes to Financial Statements 33 Note 13 – Significant Subsequent Events (1) Acquisition of Assets (A) DOI acquired the trust beneficial interest in real estate on July 3, 2013. Overview of the Asset (a) Type of asset acquired Trust beneficial interest in real estate (b) Property name Tousen Dogenzaka Daini Building (c) Location 28-1 Maruyamacho Shibuya-ku, Tokyo (d) Acquisition price 4,500,000 thousand yen (excluding acquisition costs and consumption tax, etc.) (e) Date of agreement June 25, 2013 (f) Date of delivery July 3, 2013 (g) Seller Undisclosed (B) DOI acquired the trust beneficial interest in real estate on August 9, 2013 Overview of the Asset (a) Type of asset acquired Trust beneficial interest in real estate (b) Property name Akasaka Business Place (c) Location 2-14-5 Akasaka Minato-ku, Tokyo (d) Acquisition price 9,200,000 thousand yen (excluding acquisition costs and consumption tax, etc.) (e) Date of agreement July 19, 2013 (f) Date of delivery August 9, 2013 (g) Seller Hakuba Capital 1 TMK

(2) Borrowing of Funds (A) DOI borrowed funds on July 3, 2013. These funds were allocated to acquisition of the property described in “(1) Acquisition of Assets (A)” and its related costs.

Date of Balance Date of Repayment Lender Loan (thousands Interest Rate Maturity Method Notes of yen) 3 month Japanese Nov. 30, Shinsei Bank, Ltd. Jul. 3, 2013 1,000,000 Yen LIBOR 2020 Bullet payment Unsecured +0.35% (Note 1) 1 month Japanese The Higashi-Nippon Nov. 30, Bullet payment Unsecured Bank, Limited Jul. 3, 2013 1,000,000 Yen TIBOR 2020 +0.35% (Note 2) 1 month Japanese Sumitomo Mitsui Aug. 31, Bullet payment Unsecured Banking Corporation Jul. 3, 2013 1,600,000 Yen TIBOR 2020 +0.35% (Note 2)

Development Bank Jul. 3, 2013 1,000,000 0.833% Aug. 31, of Japan Inc. 2018 Bullet payment Unsecured

(Note 1) Interest payments shall be paid at the end of February, May, August and November (if any such date is not a business day, it will be the following business day, if such date falls within the next month, then the preceding business day will be the payment day) and the repayment date. Interest rate is calculated based on the 3 month Japanese Yen LIBOR which the British Banker’s Association (“BBA”) announces two business days prior to the first day of the applicable period. (Note 2) Interest payments shall be paid at the end of every month (if any such date is not a business day, it will be the following business day, if such date falls within the next month, then the preceding business day will be the payment day) and the repayment date. Interest rate is calculated based on the 1 month Japanese Yen TIBOR which the Japanese Bankers Association (“JBA”) announces two business days prior to the first day of the applicable period.

34 (B) DOI borrowed funds on August 9, 2013. These funds were allocated to the acquisition of the property described in “(1) Acquisition of Assets (B)” and its related costs.

Date of Balance Date of Repayment Lender Loan (thousands Interest Rate Maturity Method Notes of yen) 1 month Japanese Sumitomo Mitsui May 31, Bullet payment Unsecured Banking Corporation Aug. 9, 2013 1,400,000 Yen TIBOR 2021 +0.35% (Note 1) 1 month Japanese Sumitomo Mitsui Feb. 26, Bullet payment Unsecured Trust Bank, Limited Aug. 9, 2013 1,000,000 Yen TIBOR 2021 +0.35% (Note 1) 1 month Japanese The Bank of Aug. 31, Bullet payment Unsecured Fukuoka, Ltd. Aug. 9, 2013 1,000,000 Yen TIBOR 2018 +0.27% (Note 1) Tokio Marine & 3 month Japanese Jul. 31, Nichido Fire Aug. 9, 2013 1,000,000 Yen LIBOR 2018 Bullet payment Unsecured Insurance Co., Ltd. +0.27% (Note 2) The Bank of 1 month Japanese Aug. 31, Tokyo-Mitsubishi Aug. 9, 2013 3,000,000 Yen TIBOR 2020 Bullet payment Unsecured UFJ, Ltd. +0.33% (Note 1) The Bank of 1 month Japanese Aug. 31, Tokyo-Mitsubishi Aug. 9, 2013 2,000,000 Yen TIBOR 2018 Bullet payment Unsecured UFJ, Ltd. +0.25% (Note 1) (Note 1) Interest payments shall be paid at the end of every month (if any such date is not a business day, it will be the following business day, if such date falls within the next month, then the preceding business day will be the payment day) and the repayment date. Interest rate is calculated based on the 1 month Japanese Yen TIBOR which the Japanese Bankers Association (“JBA”) announces two business days prior to the first day of the applicable period. (Note 2) Interest payments shall be paid at the end of February, May, August and November (if any such date is not a business day, it will be the following business day, if such date falls within the next month, then the preceding business day will be the payment day) and the repayment date. Interest rate is calculated based on the 3 month Japanese Yen LIBOR which the British Banker’s Association (“BBA”) announces two business days prior to the first day of the applicable period.

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 May 31, 2013 and November 30, 2012 (Thousands of yen)

For the six months For the six months ended ended May 31, 2013 November 30, 2012 Cash Flows from Operating Activities: Income before income taxes 2,590,050 2,370,262 Depreciation and amortization 1,281,374 1,306,936 Amortization of bond issuance costs 8,536 8,583 Interest expense 587,730 631,875 (Increase) Decrease in tenant receivables 31,499 23,151 Increase (Decrease) in accounts payable (69,736) (26,822) Increase (Decrease) in rent received in advance 42,963 (44,959) Cash payments of interest expense (604,368) (634,769) (Increase) Decrease in consumption taxes refundable (248,782) – Other, net (270,170) (168,337) Net Cash Provided by Operating Activities 3,349,096 3,465,920 Cash Flows from Investing Activities: – – Payments for purchases of investment properties (17,738,286) (2,755,849) Payments for purchases of intangible assets (279) – Proceeds from tenant security deposits 1,070,901 646,300 Payments for tenant security deposits (519,479) (780,352) Net Cash Used in Investing Activities (17,187,143) (2,889,901) Cash Flows from Financing Activities: – – Proceeds from long-term debt 21,700,000 17,500,000 Repayments of long-term debt (5,481,250) (16,810,000) Payment of dividends (2,369,895) (2,020,153) Net Cash Provided by (Used in) Financing Activities 13,848,855 (1,330,153) Net Change in Cash and Cash Equivalents 10,808 (754,134) Cash and Cash Equivalents at Beginning of Period 16,046,965 16,801,099 Cash and Cash Equivalents at End of Period 16,057,773 16,046,965

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 June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May

Overview of Investment Units and Unitholders (as of May 31, 2013) 146×57 ■ No. of investment units by investor type ■ No. of unitholders by investor type Individuals/others Financial institutions 10,567 Foreigners 28,192 units (7.1%) Individuals/others 31,108 units (7.9%) 143,739 units (36.3%) (96.7%) 18 15th Financial institutions Fiscal Period (0.2%) Total: 395,798 units Other domestic 168 Other domestic corporations 191,238 units (48.3%) Securities firms 1,521 units (0.4%) corporations (1.5%) 149 Foreigners (1.4%) Individuals/others Financial institutions Foreigners 27,016 units (6.8%) 22 34,742 units (8.8%) 148,487 units (37.5%) Securities firms (0.2%)

14th Total 10,924 Fiscal Period Total: 395,798 units Other domestic corporations 183,787 units (46.4%) Securities firms 1,766 units (0.5%)

Top Ten Unitholders (as of May 31, 2013) IR Calendar

July 19, 2013 ・Announcement of financial results for Number of Percentage 15th Fiscal Period Name of Investor Units Owned Share August 9, 2013 ・Sending of Japanese version Business Report for 15th Fiscal Period (Statement of Financial Performance) 6000 1. Daiwa Investment Management Inc. 128,905 units 32.6% August 12, 2013 ・Start paying distributions for 15th Fiscal Period 2. Japan Trustee Services Bank, Ltd. (trust account) 67,897 units 17.2% 5000 3. Daiwa Securities Group Inc. 59,321 units 15.0% May Trust & Custody Services Bank, Ltd. (securities End of 4. 28,640 units 40007.2% Feb. investment trust account) ﬁscal period Jan July 5. The Master Trust Bank of Japan, Ltd. (trust account) 23,543 units 30006.0% 0 20 40 60 80 100 The Nomura Trust and Banking Co., Ltd. (investment Aug. 6. 20,681 units 5.2% trust account) Nov. 7. Nomura Bank (Luxembourg) S.A. 3,686 units 0.9% End of ﬁscal period 8. MSIP CLIENT SECURITIES 2,265 units 0.6% January 2014 ・Announcement of financial results for 16th Fiscal Period

9. Individual 1,940 units 0.5% February 2014 ・Sending of Japanese version Business Report for 16th Fiscal Period 10. State Street Bank and Trust Company 505223 1,789 units 0.5% (Statement of Financial Performance) February 2014 ・Start paying distributions for Note: The percentage share figures are rounded to the first decimal place. 16th Fiscal Period

38 Investor Memo

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

General Meeting of Investors Held at least once every two years

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

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

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

Newspaper in which notice is posted Nihon Keizai Shimbun

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

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

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

Provision of Information via Website

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

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

IX. Investor Information 39 Fiscal Period Business Report th (Statement of Financial Performance) 15 December 1, 2012 - May 31, 2013

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