#1Daiwa House REIT Investment Corporation (TSE code: 8984) Investor Presentation The 26th Fiscal Period Ended Feb. 2019 April 19, 2019 R Daiwa House Asset Management Co.,Ltd. Daiwa Asset Mgt... Сазна Ноле Спор#2Table of Contents Summary 1. Financial Results Page 4. Financial Status Financial Status O Daiwa House REIT Investment Corporation Page 22-23 ☐ Financial Highlights for February 2019 Period Statement of Income for February 2019 Period Balance Sheet for February 2019 Period Financial Forecasts for Aug. 2019 and Feb. 2020 Periods 4597 Appendix Page 6 Overview of Equity Offering in February 2019 Unit Price Performance 2. Overview since the Merger Acquisitions in February 2019 Period Acquisitions in March and April 2019 2228 25 26 27 28-30 Leveraging Value Chain of Daiwa House Group 31 Track Record of Asset Size Growth 9 Distribution Policy 32 Track Record of DPU Growth 10 Historical Financial Data 33 Improvement of Portfolio Quality 11 Historical Portfolio Data 34 Through Portfolio Rebalancing Balance Sheets 35 Track Record of Financial Data 12 Our Strengths and Unitholder Value Enhancement 13 23 Statements of Income 36 ☐ ESG Initiatives 37-41 Through Various Measures Pipeline of Daiwa House Group 14 Market Environment for Logistics Properties Market Environment for Residential Properties Market Environment for Retail and Hotel Properties Portfolio List 42 43 44 45-48 3. Operation Status Overview of New Acquisitions Portfolio Summary (as of April 10, 2019) Operation Status of Logistics Properties Operation Status of Residential Properties Operation Status of Retail and Hotel Properties 20 670000 16 17 18 19 Rent Revision Schedule of Logistics Properties Rent Revision Schedule of Retail Properties Appraisal Value Changes Comparison Unitholder Status REIT Structure 49-51 52 53-60 61 62 1#3Summary 1. Financial Results Daiwa House REIT Investment Corporation Feb. 2019 DPU 5,427 yen (+127 yen vs forecast, +381 yen vs Aug. 2018) Aug. 2019 Forecast DPU 5,170 yen (forecast as of Oct. 2018: 5,100 yen) Feb. 2020 Forecast DPU 5,370 yen 2. Overview since the Merger Acquired 57 properties for 272.9 Bn yen in total in two and half years. since the merger and expanded asset size to 750.5 Bn yen Achieved 12.1% growth of stabilized forecast DPU as a result of three equity offerings since the merger ◆ Improved portfolio quality through portfolio rebalancing 3. Operation Status 4. Financial Status New acquisitions of 17 properties for 79.8 Bn yen (NOI yield of 4.9 %) Feb. 2019 occupancy remained stable at a high level of 99.5 % New loans of 34.5 Bn yen (average borrowing period of 7.5 years) Raised the amount of commitment line from 20.0 Bn yen to 25.0 Bn yen 2#41. Financial Results#5Financial Highlights for February 2019 Period DPU Operation Status O Daiwa House REIT Investment Corporation Financial Status Acquisition: 4 properties Disposition: 1 property 12.7 Bn yen New loans 7.0 Bn yen 5,427 yen ◆ NOI yield 1.2 Bn yen 5.4 % * Property taxes for the properties acquired in 2018 will be expensed starting from the period ending Aug. 2019 (average borrowing period of 7.1 years) Three life insurance companies joined as new lenders +127 yen vs Forecast NAV per unit 261,610 yen ◆ NOI yield 4.1 % +381 yen vs Aug. 2018 after depreciation ◆ LTV (excluding goodwill) (+7,442 yen vs Aug. 2018) 45.4% Occupancy rate 99.5% (+0.5 p.p. vs Aug. 2018) NOI yield Period end occupancy ΝΟΙ Acquisition price Asset class NOI yield (mil yen) (mil yen) NOI yield after depreciation Asset class Aug. 2018 Feb. 2019 Change Logistics 8,820 340,009 5.2% 4.1% Logistics 100.0% 100.0% Residential 6,824 246,424 5.6% 4.0% Residential 97.4% 97.4% - Retail 2,099 79,260 5.7% 4.7% Retail 99.7% 99.7% Hotel 155 6,270 5.7% 4.7% Hotel 100.0% 100.0% Other 372 11,480 6.5% 4.9% Other 100.0% 100.0% Portfolio 18,271 683,443 5.4% 4.1% Portfolio 99.5% 99.5% || | || (Note 1) Calculated excluding the property sold during the period. (Note 2) NOI yield and NOI yield after depreciation are based on annualized NOI for the period ended Feb. 2019. 4#6Period ended Aug. 2018 Period ended Feb. 2019 Result Result Period-on- period change 22,211 23,127 915 22,211 23,013 801 Statement of Income for February 2019 Period O Daiwa House REIT Investment Corporation Increase in rental revenue for 12 consecutive periods led to 5,427 yen of DPU Contributions from new acquisitions, and gain on sale of properties retained as reserve for distribution Operating Revenue Rental revenue (mil yen) Period ended Feb. 2019 // Major Variation Factors (vs Forecast) [Contribution to income] Increase in operating revenue 374 mil yen ⚫ Contribution of 3 properties acquired in Dec. 2018 •Favorable occupancy at residential properties •Recording of gain on sale of properties Forecast Result vs as of 2018/10/17 Forecast 22,752 374 22,752 260 Gain on sale of properties 113 113 113 ◉ Increase in property operating expenses -52 mil yen Operating Expenses 12,942 13,166 224 13,142 24 Property operating expenses 8,944 9,184 240 9,131 52 • Expenses for 3 properties acquired in Dec. 2018 • Increase in repairs and maintenance expenses ⚫Decrease in restoration costs Property operating expenses 4,647 4,729 82 4,706 22 Increase in non-operating income 10 mil yen (excluding depreciation) Depreciation 4,296 4,454 158 4,424 29 Other operating expenses 3,998 3,982 -15 4,010 -28 Amortization of goodwill 1,982 1,982 1,982 221 ⚫Recording of refunded consumption taxes Decrease in non-operating expenses 5 mil yen • Decrease in interest and borrowing related expenses Loss on sale of properties 99 -99 I ☐ Accumulation of reserve for distribution 120 mil yen Operating Income 9,269 9,960 690 9,610 349 Non-operating income 39 14 -24 4 10 Non-operating expenses 1,538 1,377 -161 1,382 15 ⚫Gain on sale of properties as reserve for distribution ⚫Refunded consumption taxes as reserve for distribution -5 Interest and borrowing related 1,345 1,375 29 1,380 -5 //Capex, Repairs and Restoration Costs expenses (mil yen) Ordinary Income 7,770 8,597 827 8,232 365 Aug. 2018 Feb. 2019 Extraordinary losses 4 -4 Net Income 7,765 8,597 831 8,231 365 Capex 919 944 Reversal of reserve for temporary 1,980 1,980 0 1,982 -1 difference adjustments Repairs and 568 746 Accumulation of reserve for 22 120 40 97 - 120 maintenance expenses distribution Restoration costs 311 230 Total distribution 9,723 10,457 734 10,213 244 DPU 5,046 yen 5,427 yen 381 yen 5,300 yen 127 yen Total 1,799 1,921 5#7Balance Sheet for February 2019 Period Daiwa House REIT Investment Corporation Increase in appraisal value from the compression of the cap rate (+14.3 Bn yen vs Aug. 2018) LTV (excluding goodwill) 45.4% (+0.5 p.p. vs Aug. 2018) Period ended Aug. 2018 Period ended Feb. 2019 (mil yen) Period-on-period change Major Variation Factors (period-on-period) Increase in total assets 6,445 mil yen Total Assets 771,281 777,727 6,445 ⚫Acquisition of 4 properties in Sep. and Dec. 2018 Disposition of 1 property in Dec. 2018 Current assets 41,805 42,135 329 Increase in interest-bearing debt 7,000 mil yen Non-current assets 729,377 735,501 6,124 ■New loans Investment properties 646,194 654,523 8,328 Decrease in net assets -1,373 mil yen Intangible assets 77,398 75,368 -2,030 ⚫Decrease in reserve for temporary difference adjustments Goodwill 71,360 69,377 -1,982 Total Liabilities 340,685 348,504 7,818 Unrealized Gain by Asset Class (mil yen) Current liabilities 17,948 47,108 29,159 Asset class Book value Interest-bearing debt 11,600 40,510 28,910 Logistics 335,395 Appraisal value 361,602 Unrealized gain 26,206 Non-current liabilities 322,737 301,396 -21,340 Residential 228,762 287,859 59,096 Interest-bearing debt 302,668 280,758 -21,910 Retail 78,921 85,330 6,408 Net Assets 430,596 429,223 -1,373 Hotel 6,279 6,430 150 Reserve for temporary 10,785 8,804 -1,980 difference adjustments (Note 1) Other 11,136 12,500 1,363 Reserve for distribution (Note 2) 1,964 1,986 22 Total 660,496 753,721 93,224 LTV (excluding goodwill) 44.9 % 45.4 % 0.5 p.p. Trend of Unrealized Gain LTV (including goodwill) 40.7 % 41.3 % 0.6 p.p. (mil yen) Logistics 93,224 100,000 Number of investment units issued 1,927,000 units Net Assets per unit NAV per unit (Note 3) 223,454 yen 254,168 yen 1,927,000 units 222,741 yen 261,610 yen 78,885 Residential 80,000 59,410 63,322 -713 yen 60,000 Retail 47,179 35,048 7,442 yen 40,000 Hotel 20,000 (Note 1) Reserve for temporary difference adjustments for the period ended Feb. 2019 represents the amount before reversal and the amount after reversal is 6,823 mil yen. (Note 2) Reserve for distribution for the period ended Feb. 2019 represents the amount before accumulation and the amount after accumulation is 2,106 mil yen. (Note 3) NAV per unit: (Unitholders' capital + capital surplus + unrealized gain or loss) / number of investment units issued Other 0 Sep. 1, Feb. 2017 Aug. 2017 Feb. 2018 Aug. 2018 Feb. 2019 2016 (Merger) 6#8Period ended Feb. 2019 Period ending Aug. 2019 Result Forecast Period-on- period change Forecast Operating revenue 23,127 24,585 1,458 24,911 Operating expenses 13,166 14,147 980 Amortization of goodwill 1,982 1,982 Property taxes 1,432 1,784 352 Depreciation 4,454 4,767 312 Financial Forecasts for August 2019 & February 2020 Periods Daiwa House REIT Investment Corporation Aug. 2019 DPU Forecast 5,170 yen (incurrence of property taxes for acquisitions in 2018) Feb. 2020 DPU Forecast 5,370 yen due to contribution of new acquisitions I Major Variation Factors for Aug. 2019 Forecast vs Feb. 2019 Result [Contribution to income] 1,458 mil yen •Full period contribution of 4 properties acquired in Sep. and Dec. 2018 ⚫ Contribution of 13 properties acquired in Mar. and Apr. 2019 Increase in operating expenses • Property taxes for 20 properties acquired in 2018 -980 mil yen •Full period expenses for 4 properties acquired in Sep. and Dec. 2018 •Expenses for 13 properties acquired in Mar. and Apr. 2019 • Increase in repairs and maintenance expenses and restoration costs Decrease in non-operating income -10 mil yen (mil yen) Period ending Feb. 2020 Period-on- period change ■Increase in operating revenue 325 14,243 95 1,982 1,784 4,832 65 Operating income 9,960 10,438 478 10,668 229 ■ Absence of refunded consumption taxes Interest and borrowing 1,375 1,492 117 1,507 15 ■Increase in non-operating expenses -317 mil yen related expenses Investment unit issuance ⚫Recording of investment unit issuance expenses 200 200 -200 • Increase in interest and borrowing related expenses expenses Ordinary income 8,597 8,747 149 9,161 414 Major Variation Factors for Net income 8,597 8,747 149 9,161 414 Feb. 2020 Forecast vs Aug. 2019 Forecast Reversal of reserve for temporary 1,980 1,982 1 1,982 difference adjustments Increase in operating revenue [Contribution to income] 325 mil yen Accumulation of reserve for 120 -120 distribution Total distribution 10,457 10,729 271 11,143 414 < Per unit information > Net income 4,461 yen 4,215 yen -246 yen DPU 5,427 yen 5,170 yen -257 yen 4,414 yen 5,370 yen 199 yen 200 yen [Forecast as of Oct. 17, 2018] [5,300 yen] [5,100 yen] ⚫Full period contribution of 13 properties acquired in Mar. and Apr. 2019 Increase in operating expenses -95 mil yen •Full period expenses for 13 properties acquired in Mar. and Apr. 2019 • Increase in repairs and maintenance expenses and non tax-deductible consumption taxes Decrease in non-operating expenses • Absence of investment unit issuance expenses 184 mil yen 7#92. Overview since the Merger#10Track Record of Asset Size Growth Daiwa House REIT Investment Corporation Total Acquisition Price of Properties Acquired since the Merger 57 properties/272.9 Bn yen Growth of Asset Size since the Merger +52.8% Increase in asset size after the merger 259.2 Bn yen Acquisitions from Pipeline of Daiwa House Group since the Merger 96.8% (55 properties/57 properties) (acquisition price basis) Acquisitions Developed by Daiwa House Group since the Merger 94.5% (53 properties/57 properties) (acquisition price basis) (Bn yen) Asset Size (acquisition price) Acquired from pipeline of Daiwa House Group Acquired externally from third parties Ratio of acquisitions from pipeline of Daiwa House Group 71.8% 800 Bn yen 800 750.5 Bn yen Ratio of acquisitions from 671.7 Bn yen 683.4 Bn yen 700 pipeline of Daiwa House Group 55.9% 600 577.7 Bn yen 577.7 Bn yen 513.7 Bn yen 500 491.3 Bn yen 400 0 Sep. 1, 2016 (Merger) Feb. 2017 Aug. 2017 Feb. 2018 Aug. 2018 Feb. 2019 Apr. 10, 2019 NOI yield 5.2% 5.3% 5.4% 5.4% 5.3% 5.3% 5.3% * Adjusted for property taxes NOI yield after depreciation 3.8% 4.0% 4.0% 4.1 % 4.0% 4.0% 4.0% * Adjusted for property taxes (Note) NOI yield and NOI yield after depreciation are based on annualized NOI adjusted for property taxes to be expensed and excluding the properties sold during the period. NOI as of Sep. 1, 2016 (Merger) is based on NOI of Daiwa House Residential and former Daiwa House REIT for the period ended Aug. 31, 2016 preceding the merger. NOI as of Apr. 10, 2019 is based on NOI for the period ended Feb. 2019 and appraisal NOI of the acquisitions in Mar. and Apr. 2019. 9#11Track Record of DPU Growth O Daiwa House REIT Investment Corporation Achieved 12.1% growth of stabilized forecast DPU as a result of three equity offerings since the merger Aim for continuous growth of DPU DPU (yen) Initial Forecast Actual Current Forecast 5,500 Estimated impact from property taxes of the properties acquired in 2018 353 million yen per period approx. -170 yen per unit 5,427 5,000 5,194 5,250 5,170 5,050 5,046 5,100 4,964 4,900 4,800 4,500 4,650 4,700 5,370 0 Period ended Period ended Period ended Period ended Feb. 2017 Aug. 2017 Aug. 2018 Feb. 2018 Period ended Feb. 2019 Period ending Period ending Aug. 2019 Feb. 2020 Stabilized Forecast DPU (Forecast DPU Adjusted for Property Taxes) (yen) 5,500 5,000 4,700 +4.3% 4,500 0 Sep. 2016 Merger Estimated impact from property taxes of the properties acquired in 2019 206 million yen per period approx. -100 yen per unit 5,270 Stabilized Forecast DPU (adjusted for property taxes) 4,900 5,080 5,270 +3.7% +3.7% 12.1% growth in the period of 2.5 years since the merger Mar. 2017 1st offering since the merger Mar. 2018 2nd offering since the merger Feb. 2019 3rd offering since the merger 10#12Improvement of Portfolio Quality Through Portfolio Rebalancing Daiva House REIT Investment Corporation Enhancing profitability and keeping property age young through continuous rebalancing since the merger Aim to further improve portfolio quality through portfolio rebalancing Dispositions Acquisitions Number of properties 10 properties Number of properties Sale price 14.5 Bn yen Acquisition price 7 properties 23.7 Bn yen Average NOI yield 5.1% Average NOI yield 5.1% Average NOI yield 3.3% after depreciation Average NOI yield after depreciation 4.1 % Average property age 13.4 years Average property age 5.6 years Residential Logistics Retail Hotel Castalia Minami Gyotoku II Castalia Maihama Castalia Urayasu Castalia Castalia Minami Gyotoku Nipponbashi Kouzu DPL Kitakyushu Hiratsuka Retail Property (Land) ASOBOX (Land) FOLEO Ome Imai Castalia Ichikawa Myoden Castalia Shinsakae Aprile Tarumi Crest Kusatsu Morino Tonari (Note) Average NOI yield and average NOI yield after depreciation are based on actual NOI for the dispositions and appraisal NOI for the acquisitions. Average property age is based on the property age at the time of disposition or acquisition. ACROSSMALL Semboku (Land) COMBOX310 Super Hotel JR Nara Station Sanjo Street 11#13Track Record of Financial Data Daiwa House REIT Investment Corporation Equity offerings and increase in unrealized gain on properties contributed to growth of NAV per unit LTV (excluding goodwill) within 40% to 50% range and maintain stable financial operation // NAV per Unit Average Financing Period / (yen) 300,000 Unitholders' capital and capital surplus per unit NAV per unit Average Remaining Maturity / Average Interest Rate (years) 12 0.9% 261,610 260,220 245,689 248,003 250,000 234,683 210,534 210,534 213,231 203,629 200,000 254,168 0.78% 0.77% 0.77% 0.76% 0.76% 10 213,231 215,017 8 0.74% 0.8% 0.7% 7.6 7.8 7.9 7.9 7.9 6 0.6% 6.9 5.6 5.7 5.5 4 5.1 5.3 0.5% 4.7 2 0.4% 0 Feb. 2017 Aug. 2017 Feb. 2018 Aug. 2018 Feb. 2019 Apr. 10, 2019 0 0.3% Mar. 2017 Equity Offering Financed 47.9 Bn yen Mar. 2018 Equity Offering Feb. 2019 Equity Offering Financed 56.8 Bn yen Financed 36.3 Bn yen Sep. 2016 Oct. 2017 Aug. 2018 JCR Rating JCR Rating AA- (Stable) AA- (Positive) R&I Rating A+ (Stable) Feb. 2017 Aug. 2017 Feb. 2018 Aug. 2018 Feb. 2019 Apr. 10, 2019 Average financing period (LHS) Average remaining maturity (LHS) Average interest rate (RHS) AA- (Positive) AA (Stable) A+ (Positive) LTV /Fixed Interest Ratio LTV (Excluding goodwill) LTV (Including goodwill) 50% 100% 48% 95% 46% 48.1% 95.4% 95.5% 95.2% 46.5% 46.4% 44% 93.8% 93.8% 45.4% 44.9% 45.2% 90% 42% 90.3% 40% 41.9% 41.4% 41.4% 41.3% 41.5% 85% 40.7% 38% 36% 80% Feb. 2017 Aug. 2017 Feb. 2018 Aug. 2018 Feb. 2019 Apr. 10, 2019 Feb. 2017 Aug. 2017 Feb. 2018 Aug. 2018 Feb. 2019 Apr. 10, 2019 12#14Our Strengths and Unitholder Value Enhancement Through Various Measures Our Strengths Stability and flexibility against market challenges as a diversified REIT Logistics Mainly BTS type logistics properties with long-term leases Primarily invests in high-performance logistics properties Retail Mainly fixed rent long-term leases Primarily invests in specialty retail complexes tied with daily living Residential Daiwa House REIT Investment Corporation Mainly master lease agreements with Daiwa House Group Primarily invests in 23 wards of Tokyo Hotel Mainly business hotels with long-term leases Primarily invests in properties with good accessibility including complex facilities Utilization of Daiwa House Group's strong sponsor support Enhanced financial stability Selective acquisition of prime assets mainly from pipeline Improvement of portfolio quality through portfolio rebalancing Results DPU growth Various measures to reinforce our strengths Implementation of planned major renovation Introduction of investment unit ownership program Effective use of cash on hand Maintenance and enhancement of strong financial base NAV per unit growth Upgrade in credit rating Improvement in investment unit liquidity Aim to continuously enhance our unitholders' value by ensuring stable income and steady growth of our assets over the medium-to-long term 13#15Pipeline of Daiwa House Group Logistics Other Assets Daiwa House REIT Investment Corporation Property name Туре Location Completion No. of floors GFA Property name Туре Location Completion (planned) GFA / No. of units D Project Jonanjima BTS Ota Ward, Tokyo May 2014 8 49,739 m² D Tower Nishi-Shinjuku D Project Wako A BTS Wako City, Saitama Apr. 2015 6 57,198 m² Office/service apartment / retail Shinjuku Ward, Tokyo Mar. 2020 Granode Hiroshima D Project Nishiyodogawa I BTS Osaka City, Osaka Sep. 2010 2 41,854 m² D Project Ibaraki A BTS Ibaraki City, Osaka Sep. 2017 6 90,486 m² Nerima Takamatsu Project Office/hotel/ retail Assisted-living pay nursing homes Hiroshima City, Hiroshima Nerima Ward, Tokyo Mar. 2019 39,460m2 47,123m² D Project Ibaraki B BTS Ibaraki City, Osaka Apr. 2018 4 65,341 m2 Shibuya Honmachi Project D Project Shikoku Sakaide A BTS Sakaide City, Kagawa Aug. 2015 1 27,995 m² Assisted-living pay nursing homes Shibuya Ward, Tokyo Feb.2015 Jan. 2017 Oct. 2015 100 units 40 units 57 units DPL Sagamihara Multi-tenant DPL Yokohama Daikoku Multi-tenant Sagamihara City, Kanagawa Yokohama City, Kanagawa Dec. 2013 5 82,685 m² D Project Jonanjima D Project Wako A D Project Ibaraki A Feb. 2014 6 121,818 m² DPL Kawasaki Yakou Multi-tenant Kawasaki City, Kanagawa Mar. 2017 5 92,924 m² DPL Ichikawa Multi-tenant Ichikawa City, Chiba Jun. 2016 5 88,050 m² DPL Nagareyama Multi-tenant Nagareyama City, Chiba Mar. 2018 4 141,316 m² DPL Iwate Kitakami Multi-tenant Kitakami City, Iwate Sep. 2017 1 28,043 m² DPL Sendai Port Multi-tenant Sendai City, Miyagi Mar. 2017 2 63,098 m² DPL Sendai Nagamachi Multi-tenant Sendai City, Miyagi May 2018 3 33,448 m² DPL Sagamihara DPL Ichikawa DPL Nagareyama // Residential Property name Туре Location Completion No. of units Roygent Chiba Chuo Compact Chiba City, Chiba Mar. 2019 Condominium 188 units, retail 1 section Compact/family/shared Royal Parks ER Sasashima house/pay nursing homes/nursery school / Nagoya City, Aichi Condominium 430 units, shared house 136 units, pay nursing homes 66 units Feb. 2015 retail Royal Parks ER Bandai Compact/family/shared house/medical mall Niigata City, Niigata Aug. 2018 (including senior day-care), nursery school, retail 2 sections Condominium 326 units, shared house 111 units, medical mall Royal Parks ER Sasashima Daiwa Roynet Hotel Tokyo Ariake (Provisional) Nagasaki Douza Building // Retail Property Name Туре Location iias Takao Mall Hachioji City, Tokyo Completion Jun. 2017 No. of Floors GFA 4 80,758m² iias Tsukuba Mall Tsukuba City, Ibaraki Sep. 2008 5 112,509 m² (70% co-ownership interest) /Hotel iias Takao D Tower Nishi-Shinjyuku Granode Hiroshima Property name Туре Location Completion (planned) No. of floors GFA 17 + Daiwa Roynet Hotel Tokyo Ariake Hotel/retail / convention Koto Ward, Tokyo Sep. 2018 22,500 m² 1 basement (Provisional) Osaka City Chuo Hotel Ward Koraibashi 2-chome Project Agora Kanazawa Osaka City, Osaka Mar. 2020 13 6,196 m² Hotel Kanazawa City, Ishikawa Sep. 2019 12 7,615 m² (Provisional) Nagasaki Douza Hotel Nagasaki City, Nagasaki Feb. 2020 12 6,770 m² Building (Source) Daiwa House Industry Co., Ltd. (Note) As of the date of this document, there are no planned acquisitions. 14#163. Operation Status#17Asset class Property name Overview of New Acquisitions Acquisition Appraisal price value at NOI Location (mil yen) acquisition yield (mil yen) NOI yield after depreciation Property Occupan age at cy rate acquisition (years) Lessee (Average) Lease term (years) O Daiwa House REIT Investment Corporation (Average) Remaining lease term (years) Acquisitions in March and April 2019 D Project Kitahachioji | Hachioji City, Tokyo 4,300 4,360 4.8 % 3.9 % 100.0 % 8.1 Sanritsu 15.0 7.0 D Project Kitahachioji II Hachioji City, Tokyo 5,700 5,760 4.8 % 4.0 % D Project Kitahachioji III Hachioji City, Tokyo 7,300 7,450 4.8 % 4.0 % 100.0 % 100.0 % 7.2 Hutech norin 20.0 12.8 4.8 Mitsubishi Shokuhin / Sanritsu Not disclosed Not disclosed D Project Itabashi Shingashi Itabashi Ward, Tokyo 12,300 12,400 4.3 % 3.5 % 100.0 % 4.4 Kokubu Group Corp. Not disclosed Not disclosed Logistics Sagamihara City, D Project Sagamihara 3,900 3,940 4.5 % 3.3 % 100.0 % 4.0 Daiwa Logistics 20.0 16.0 Kanagawa D Project Kuki VIII Kuki City, Saitama 6,100 6,110 4.8 % 3.7 % 100.0 % 2.5 ESCO 20.0 17.5 D Project Yokkaichi Yokkaichi City, Mie 1,490 1,500 5.3 % 4.2 % 100.0 % 2.3 Kintetsu Logistics Systems Not disclosed Not disclosed D Project Ibaraki Ishioka Ishioka City, Ibaraki 4,050 4,090 5.3 % 4.0 % 100.0 % 3.7 Kokubu Group Corp. Not disclosed Not disclosed Logistics Subtotal / Average 45,140 45,610 4.7 % 3.8 % 100.0 % 4.8 18.5 13.8 Retail iias Tsukuba (30% co-ownership interest) Aoyama Tailor Bunkyo Sengoku Ekimae Store Tsukuba City, Ibaraki 10,320 10,320 5.4 % 4.2 % 100.0 % 10.5 Bunkyo Ward, Tokyo 750 762 4.9 % 4.5 % 100.0 % 25.0 Daiwa House Aoyama Trading 20.1 20.1 Not disclosed Not disclosed FOLEO Shobu Kuki City, Saitama 5,000 5,050 5.5 % 4.5 % 100.0 % 9.1 Daiwa House 20.1 20.1 Daiwa Roynet Hotel Hotel Nagoya Shinkansenguchi Nagoya City, Aichi 4,500 4,540 4.5 % 3.7 % 100.0 % 17.8 Daiwa Royal 5.1 5.1 Other Nursery Room Berry Bear Omori Ota Ward, Tokyo NESS Corporation / 1,380 1,380 4.4 % 4.1 % 100.0 % 0.1 20.1 19.9 Nishi Welcia Ota Omori Nishi Store Welcia Yakkyoku Subtotal / Average 67,090 67,662 4.8 % 3.9 % 100.0 % 7.0 17.8 14.8 Acquisitions in the period ended February 2019 Kitakyushu City, Logistics DPL Kitakyushu 3,510 3,560 5.8 % Fukuoka Retail ACROSSMALL Semboku (Land) COMBOX310 Sakai City, Osaka 3,250 3,880 5.0 % 5.0 % Mito City, Ibaraki 4,480 4,600 5.7 % 3.3 % 3.8 % 100.0 % 100.0 % 100.0 % 2.9 YAMAE HISANO / KYUSO COMPANY/ASAHI SHOKUHIN 10.0 7.9 - Daiwa Information Service 20.1 19.7 12.6 Daiwa Royal 10.1 9.7 Hotel Super Hotel JR Nara Station Sanjo Street Nara City, Nara 1,470 1,490 5.0 % 3.6 % 100.0 % 3.9 Super Hotel 20.0 16.0 Subtotal/Average 12,710 13,530 5.5 % 3.9 % 100.0 % 7.7 13.2 12.0 Total/Average 79,800 81,192 4.9 % 3.9 % 100.0 % 7.1 17.0 14.3 As of April 10, 2019 (Note) NOI yield and NOI yield after depreciation are based on appraisal NOI. Acquisitions in March and April 2019 D Project Kitahachioji I-II-III D Project Itabashi Shingashi D Project Sagamihara D Project Kuki VIII D Project Yokkaichi Acquisitions in the period ended February 2019 DPL Kitakyushu ACROSS MALL Semboku (Land) D Project Ibaraki Ishioka lias Tsukuba (30% co-ownership interest) Aoyama Tailor Bunkyo Sengoku Ekimae Store FOLEO Shobu Daiwa Roynet Hotel Nagoya Shinkansenguchi Nursery Room Berry Bear Omori Nishi Welcia Ota Omori Nishi Store Super Hotel JR Nara Station COMBOX310 Sanjo Street 16#18Portfolio Summary (as of April 10, 2019) O Daiwa House REIT Investment Corporation Portfolio Logistics Residential Retail Hotel Other Acquisition price 750,533 mil yen 385,149 mil yen 246,424 mil yen 95,330 mil yen 10,770 mil yen 12,860 mil yen Number of properties 229 properties 67 properties 133 properties 21 properties 3 properties 5 properties NOI yield 5.3 % 5.1 % 5.6 % 5.4 % 4.9 % 6.3 % (adjusted for property taxes) NOI yield after depreciation 4.0 % 3.9 % 4.0 % 4.4 % 4.0 % 4.8 % (adjusted for property taxes) Average property age 9.8 years 7.7 years 13.1 years 10.3 years 12.3 years 6.7 years Occupancy rate 99.5% 100.0 % 97.4 % 99.7 % 100.0 % 100.0 % Area breakdown Greater Tokyo Greater Nagoya Greater Osaka Other 65.9% 4.2% 8.9% 20.9% Greater Tokyo 64.6% Greater Nagoya 4.5% Greater Osaka 6.1% Other 24.9% Greater Tokyo Greater Nagoya Greater Osaka Other 83.3 % 3.1% 8.8% 4.8% Greater Tokyo Greater Nagoya Greater Osaka Other 34.2% 2.5% 21.4% 41.8% Greater Tokyo 44.6% Greater Nagoya 41.8% Greater Osaka 13.6% Greater Tokyo Other 26.5% 73.5% (Note) NOI yield and NOI yield after depreciation are based on annualized NOI (adjusted for property taxes to be expensed) for the period ended Feb. 2019 and appraisal NOI for the properties acquired in Mar. and Apr. 2019. Occupancy rate is as of February 28, 2019. // Portfolio by Asset Class / Portfolio by Area Portfolio by Property Age Logistics 51.3% Greater Tokyo area 65.9% ■Less than 5 years 17.1% Residential Core Three Greater Nagoya area 32.8% major metropolitan Assets 4.2% Retail areas 98.3% 12.7% Greater Osaka area Hotel 79.1% Less than 10 years 46.0% 5 to less than 10 1.4% Other 1.7% 8.9% Other areas 20.9% years 29.0% 10 years or more 54.0% (acquisition price basis) 17#19Operation Status of Logistics Properties Daiwa House REIT Investment Corporation Type (acquisition price basis) Operation Status 100% occupancy since the acquisitions <D Project Kawagoe II > Installed material handling machines → Increased rent <D Project Gotenba and DPL Misato (2F) > Installed LED light Increased rental revenue Rent Revision / Lease Contract Renewal Rent revision: D Project Hachioji (Mitsubishi Shokuhin), D Project Nishi-Hiroshima B, DPL Inuyama, and DPL Misato (Kokubu Group Corp.) → Revised rent on equal terms D Project Hachioji (Tokyo Logistics Factory) → Revised rent with rent decrease D Project Gotenba → Revised rent with rent decrease (rent essentially increased by installation of LED light) D Project Fuji → Revised rent with rent decrease (along with long-term prime rate) Lease contract renewal: DPL Misato (Nitori) → Renewed a 5-year contract with rent increase Initiatives for Internal Growth Achieved internal growth through rent increase at rent revision, installation of LED light and solar power generation, etc. Monthly rental revenue BTS type 91.3% BTS type 91.3% Multi-tenant type 8.7% Remaining Lease Term (annual rent basis) Average Remaining Lease Term 9.0 years 15 years or more 10.5% 10 to less than 15 years 30.6% 5 to less than 10 years 40.4% Less than 5 years 18.5% Average Lease Term 15.9 years Rent +4,447 thousand yen as of April 10, 2019 (compared to the time of acquisitions) Other rental revenue Total rental revenue +4,433 thousand yen +8,880 thousand yen % of Top 10 Tenants (leased area basis) Mitsubishi Shokuhin Hitachi Capital 8.9% 6.8% Daiwa Logistics 6.5% Number of Construction fee properties Effect Increase in total rental revenue (annual) Rate of return Top 10 Tenants Kokubu Group Corp. 6.1% Hitachi Transport System Kanto 5.9% Tokyo Nohin Daiko 4.3% 52.7% Nakano Shokai 4.0% Installation of LED light (Note 1) 20 properties 535 mil yen 61 mil yen 11.6% Major EC company 3.6% Hitachi Transport System Central 3.5% Installation of solar power generation (Note 2) 3 properties 3 mil yen Takihyo 3.0% Others 47.3% (Note 1) Revenue increase attributable to the installation of LED light at 20 properties during the period from Oct. 2015 to Feb. 2019. (Note 2) Revenue increase attributable to the installation of solar power generation at three properties during the period from Nov. 2014 to Feb.2019. As of April 10, 2019 18#20Operation Status of Residential Properties Daiwa House REIT Investment Corporation Operation Status Period average occupancy at 97.3%, above forecast of 96.5% Performed major renovations for 5 properties Rents Monthly rent at tenant replacement increased for 8 consecutive periods Monthly rent +2,529 thousand yen, or +2.4% vs before replacement Performed upgrade work for 11 units of 6 properties → Contracts signed for 6 units at end of period with 11.7% increase in rents Monthly Rent at Tenant Replacement (Ratio of the number of tenant replacement) Rent increase No change Rent decrease 100% 26.7% 17.3% 20.8% 21.2% 21.4% 80% 60% 39.5% 29.0% 25.5% 15.0% 33.1% 40% 20% 40.2% 43.2% 50.1% 53.4% 63.6% 0% Aug. 2017 Period ended Period ended Period ended Period ended Period ended Feb. 2017 Feb. 2018 Unit Type (number of units basis) Master Lease Type (annual rent basis) Change in rent (thousand yen) Change in rent Number of replacement +856 +0.6 % +1,667 +1,689 +1.3 % +1.6 % Aug. 2018 +2,598 +1.9 % Feb. 2019 +2,529 +2.4 % 1,055 units 1,110 units 806 units 990 units 748 units Average Monthly Rent Compact type Sublease type (yen/tsubo) (60m² or less) 20.8% 12,000 79.3% 11,500 Family type Pass-through 11,509 11,558 11,564 11,614 11,655 ■5 central wards of Tokyo 38.2% (more than 60m²) 20.7% Area (acquisition price basis) Monthly Rent (number of units basis) 11,000 type 10,500 79.2% 10,352 10,439 10,642 10,672 10,453 10,000 23 Wards of Tokyo 72.0% 23 wards other than 5 central wards of Tokyo 33.8% Greater Tokyo area excluding 23 wards of Tokyo 11.3% Monthly Rent Less than 200,000 yen 86.0% Less than 10k yen 30.1% Less than 15k yen 32.2% Less than 20k yen 23.6% Less than 25k yen 9.2% Less than 30k yen 2.8% / Upgrade Work Before Less than 50k yen 1.9% 50k yen or more 0.1% Period ended Period ended Period ended Period ended Period ended Feb. 2017 Feb. 2019 Aug. 2017 Feb. 2018 Aug. 2018 Average monthly rent of the properties held through Sep. 2016 to Feb. 2019 (pass-through type only) Average monthly rent ⚫ Changed room plan (removed partitions and changed Installed a new kitchen unit and moved space for flooring materials) a washing machine After After Before Other 16.7% As of February 28, 2019 19#21Operation Status of Retail and Hotel Properties Daiwa House REIT Investment Corporation Operation Status of Retail Properties ■Period end occupancy remained at a high level of 99.7% Move-ins: 2 units, Move-outs: 4 units Monthly rent as of Feb. 2019 +375 thousand yen, or +0.1% vs as of Aug. 2018 Rent Revision / Lease Contract Renewal of Major Tenants Rent revision: FOLEO Hirakata, ACROSSPLAZA Miyoshi (Land), and ASOBOX (Land) → Revised rent on equal terms Royal Home Center Morinomiya (Land) → Revised rent with rent increase along with an increase in property taxes //Lease Contract Type (annual rent basis) Sublease type master lease 49.5%, 7 properties Pass-through type master lease 18.8%, 3 properties Direct lease contract 15.0%, 5 properties Land (land with leasehold interest) 16.7%, 6 properties Remaining Lease Term (annual rent basis) / Rent Type (leased area basis) Average Remaining Lease Term 13.0 years Fixed rent 97.6% Fixed rent + 15 years or more 10 to less than 15 43.8% 6.6% years 5 to less than 10 33.6% Ratio of Fixed Rent variable rent years 2.3% Less than 5 years 16.0% 99.9% Average Lease Term Variable rent 0.1% 16.5 years As of April 10, 2019 Operation Status of Hotel Properties Period end occupancy 100.0% Rent Revision / Lease Contract Renewal of Hotel Space Rent revision/lease contract renewal: None Remaining Lease Term of Hotel Space (annual rent basis) Average Remaining Lease Term 8.4 years 15 years or more 7.6% 10 to less than 15 years 39.1% 5 to less than 10 years 53.3% Average Lease Term 12.0 years Rent Type of Hotel Space (leased area basis) Ratio of Fixed Rent 100.0% Fixed rent 100.0% As of April 10, 2019 20#224. Financial Status#23Financial Status (1) O Daiwa House REIT Investment Corporation Financed 7.0 Bn yen in Sep. & Dec. 2018, refinanced 11.6 Bn yen in Mar. and financed 27.5 Bn yen in Apr. DHR currently has 73.0 Bn yen of debt capacity for acquisition of up to 50% of LTV (excluding goodwill) // Financial Status (as of April 10, 2019) Interest-bearing debt 348,768 mil yen Loans Credit Rating Long-term interest- bearing debt ratio LTV Average interest rate JCR (Excluding goodwill) 89.4% 0.74% 45.2% AA (Stable) 329,768 mil yen Fixed interest ratio Average remaining maturity LTV (Including goodwill) Bonds 95.2% 5.3 years 41.5% 19,000 mil yen //Debt Financing R&I A+ (Positive) Financing in period ended Feb. 2019 Amount 7,000 mil yen Average interest rate 0.78% Average maturity 8.9 years 4.4 years Repayment in Mar. 2019 11,600 mil yen 0.54% Refinancing in Mar. 2019 11,600 mil yen 0.36% Financing in Apr. 2019 27,500 mil yen 0.52% 7.1 years 5.4 years 22#24Financial Status (2) Further lengthening and diversifying debt maturities and fixing interest rates Raised the amount of commitment line from 20.0 Bn yen to 25.0 Bn yen // Lender Formation 3.5% 4.0% 4.2% 329,768 mil yen 5.4% Shinkin Central Bank 7,908 5,000 5,000 Daiwa House REIT Investment Corporation Nishi-Nippon City Bank lyo Bank Chugoku Bank OFFE (mil yen) 2,000 1,500 1,500 1,260 Sumitomo Mitsui Trust Bank 60,109 Mizuho Trust & Banking 18.2% Sumitomo Mitsui Banking Corporation 60,100 Nippon Life Insurance MUFG Bank 56,954 Shinsei Bank Mizuho Bank 52,100 4,500 Shizuoka Bank 17,900 Mitsui Sumitomo Insurance 4,000 13,810 Bank of Fukuoka 3,000 13,061 2,465 Dai-ichi Life Insurance (New) 1,000 11,500 77 Bank 2,000 Taiyo Life Insurance (New) 15.8% 17.3% 18.2% Development Bank of Japan Norinchukin Bank Aozora Bank Resona Bank Chiba Bank Japan Post Insurance (New) 1,100 Bank of Kyoto 1,000 1,000 As of April 10, 2019 // Diversified Maturity Ladder (mil yen) 30,000 25,000 20,000 15,000 28,910 10,000 5,000 0 4,000 4,000 24,000 24,500 5,000 24,600 17,400 18,000 20,000 20,000 19,000 21,500 12,500 13,858 16,000 16,100 17,500 3,000 7,900 9,100 3,500 Long-term loans Bonds Commitment Line: 25.0 Bn yen 10,400 5,000 Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. 2019 2020 2029 2021 2022 2023 2024 2025 2026 2027 2028 2,000 1,000 Feb. Aug. 2030 2038 As of April 10, 2019 23#25O House Daup Jws How Appendix ED FOLEO#26Overview of Equity Offering in February 2019 Overview of Equity Offering Global offering // Portfolio Daiwa House REIT Investment Corporation Offering structure (Regulation S +144A) Number of units newly issued 148,000 units Before Equity Offering As of August 31, 2018 By Asset Class Post Equity Offering As of April 10, 2019 Launch date February 8, 2019 Pricing date February 20, 2019 Japanese tranche Greenshoe option International tranche 86,900 units 10,000 units 51,100 units Hotel Retail 0.7% 10.6% Other 1.7% Hotel 1.4% Other 1.7% Retail 12.7% Issue price 245,784 yen Number of units 2,075,000 units Paid-in amount 238,260 yen outstanding post offering 213 671.7 Bn yen properties 229 properties 750.5 Bn yen Total issue price 36,376 mil yen Same boat investment 2,000 units Residential 36.8% Logistics 50.1% Residential 32.8% Logistics 51.3% Overview of New Acquisitions Number of properties 17 properties By Area Greater Other 20.0% Tokyo 66.9% Greater Other 20.9% Tokyo 65.9% By Asset Class Acquisition price 79.8 Bn yen Other Hotel 2.1% Appraisal value 81.1 Bn yen 6.7% Greater Osaka 9.3% Three major metropolitan areas 80.0% Greater Osaka 8.9% Three major metropolitan areas 79.1% Greater Greater Appraisal NOI yield 4.9% Retail 24.0% Nagoya Core Assets 3.8% Nagoya 4.2% Appraisal NOI yield 3.9% 98.3% after depreciation Occupancy rate 100.0 % Logistics 67.3% By Property Age Less than 5 years 14.5% Less than 5 years 17.1% (Acquisition price basis) Average property age 7.1 years Properties developed by Daiwa House Group Properties acquired from pipeline of Daiwa House Group 15 properties 17 properties 16 properties / 17 properties 10 years or more 49.3% Average property age 9.6 years 5 to less than 10 years 36.2% 10 years or more 54.0% Average property age 9.8 years 5 to less than 10 years 29.0% (Acquisition price basis) 25#27Unit Price Performance Unit Price and Trading Volume (yen) 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 // Relative Unit Price Performance 115 110 105 100 95 90 18/9/3 18/9/12 Daiwa House REIT Investment Corporation ཅིག་རྩ་གཅིག་་ཅིག ། ཟླཟླ་སྤྱི་ཟླ་ཆ་༧ ཟླ་ 06/3 06/9 07/3 07/9 08/3 08/9 09/3 09/9 10/3 10/9 11/3 11/9 12/3 12/9 13/3 13/9 14/3 14/9 15/3 15/9 16/3 16/9 17/3 17/9 18/3 18/9 19/3 Trading volume (RHS) Investment unit (closing) price (LHS) (Note) Adjusted to take into account two-for-one unit splits effective as of March 1, 2013 and March 1, 2015. 18/9/21 18/9/30 18/10/9 18/10/18 18/10/27 18/11/5 18/11/14 18/11/23 18/12/2 18/12/11 18/12/20 18/12/29 19/1/7 19/1/16 19/1/25 Daiwa House REIT TSE REIT Index (Note) Indexed with the September 3, 2018 (start of the period ended Feb. 2019) closing prices of DHR's unit and TSE REIT Index. 19/2/3 19/2/12 19/2/21 19/3/2 19/3/11 19/3/20 19/3/29 19/4/7 19/4/16 26 (units) 120,000 100,000 80,000 60,000 40,000 20,000 0#28Acquisitions in February 2019 Period Acquisition date LM-003 DPL Kitakyushu Location Logistics (Multi-tenant type) Building A W101 Construction date Sep. 27, 2018 Kitakyushu City, Fukuoka Bldg. A: Oct. 21, 2015 Bldg. B: Dec. 9, 2016 Acquisition price 3,510 million yen RM-011 ACROSSMALL Semboku (Land) Retail (Mall type) Daiwa House REIT Investment Corporation Acquisition date Location Acquisition price Leasable area Tenant Dec. 7, 2018 Sakai City, Osaka 3,250 million yen 30,824.72 m² Daiwa Information Building B Leasable area Tenant 26,672.98 m² YAMAE HISANO, KYUSO COMPANY, ASAHI SHOKUHIN Shin-Moll IC Located approx. 1.0 km southeast of Toga-Mikita Station on the Semboku Rapid Railway and is surrounded by Harayamadai Housing Complex in Senboku New Town and an area for for-sale detached homes This retail complex is comprised of four buildings It houses Don Quijote (general discount store), Izumiya (food supermarket) and TOHO Cinemas Senboku (cinema complex) as the core tenants, and specialty shop zones that include clothing stores, variety stores and service shops Semboku Rapid Railway Toga-Mikita Sta. Harayama Park ■The property is located in the southeastern part of Kitakyushu City and approx. 3.0km from Nagano IC of the Kitakyushu Urban Expressway Route 1 and Kokura-Higashi IC of the Kyushu Expressway, and has good traffic access to the entire Kitakyushu City as well as to Fukuoka City Located in an industrial area where warehouses, offices and factories concentrate, enabling 24-hour operation and frequent deliveries ■Building A is a two-story logistics facility with gross floor area of approx. 4,445 tsubo and Building B is also a two-story logistics facility with gross floor area of approx. 3,637 tsubo. The property is leased to multi-tenants RU-001 COMBOX310 Kokura Sta Kitakyushu Sanyo Shinkans Kyushu Expressway Nagano ID Kitakyuchu Airport+ Expressway Po Kokura Higashi IC Kita-Kyushu JCT Higashi-Kyushu Kenda Kita-Kyushukuko IC Expressway Retail (Urban type) Daiwa House Group Sublease Located a one-minute walk from the south exit of the JR Mito Station and in excellent proximity to the station as a pedestrian deck from the station is connected to the third floor of the property The main tenants are United Cinemas (cinema complex) and Sega (amusement facility), and other tenants include restaurants and offices as well as Daiwa Roynet Hotel Mito on the 6th to the 13th floors operated by Daiwa Royal, a Daiwa House Group company Service Super Autobacs Keiyo D2 HO-002 Super Hotel JR Nara Acquisition date Dec. 6, 2018 Acquisition date Location Construction date Acquisition price Leasable area Tenant Dec. 7, 2018 Mito City, Ibaraki Apr. 25, 2006 4,480 million yen 30,517.69 m² Daiwa Royal StationSanjo Street Location Nara City, Nara Hotel スーパーホテル Construction date Jan. 27, 2015 Acquisition price 1,470 million yen Leasable area Number of guest rooms Tenant 2,637.18 m² 98 rooms Super Hotel Hotel Mets Mito North Exit Excel Mito Sta. JR Joban Line 目利きの銀次の 南都銀行 Kintetsu-Nara Line Kintetsu-Nara Sta. Mito OPA Excel Minami South Exit Hotel Terrace the Garden Mito Century Mito South Gate Tower Ibaraki Industrial Hall The property, located a two-minute walk from JR Nara Station, has high visibility due to being just across the station-front square, and also offers excellent accessibility, an important factor for a hotel targeting business demand ■Super Hotel JR Nara Station Sanjo Street occupies the 2nd to the 6th floors as the main tenant. Other tenants include a real estate company on the 1st floor, a bank on the 1st and the 2nd floors, and a Japanese-style pub on the 2nd floor Washington Hotel Hotel Plaza Nara Nikko Hotel Fujita Nara Nara Nára Sta Sanjo Street Super Hotel Lohas JR Nara Eki Comfort Hotel Nara 27#29Daiwa House REIT Investment Corporation Acquisitions in March and April 2019 (1) LB-057/LB-058 / LB-059 D Project Kitahachioji I / II / III Logistics (BTS type) Hachioj Hachioji IC Nakayato IC Loa Aihara K Chuo Expressway O Tomel Expressway LB-060 D Project Itabashi Shingashi Logistics (BTS type) KONUSU Acquisition date Apr. 10, 2019 Itabashi Ward, Tokyo Location Construction date Dec. 1, 2014 33,763.46 m² Acquisition price 12,300 million yen Leasable area Tenant Kokubu Group Corp. サンリツ D Project Kitahachioji I Metropolitan Inter-City Expwy (Ken-O Expressway) Yokohama Machida Eoina JCT Atsugi Hitechvorn D Project Kitahachioji II D Project Kitahachioji III Chuo Expressway Shin-Omiya Bypass Tokyo-Gaikan Expressway Kawaguchi JCT First logistics property in Tokyo 23 Wards acquired by DHR Approx. 2.6km from Takashimadaira IC on the Metropolitan Expressway Route No. 5 Ikebukuro Line 7-storied (6-storied for the warehouse section) with GFA of approx. 9,406 tsubo and a long-term lease contract is concluded with a food wholesaler Location with an approx. 12-minute walk from Takashimadaira Station on the Toei Subway Mita Line, where sufficient workforce can be expected LB-061 D Project Sagamihara Bijogi JCT Takashimadaira Sta. Takashimadaira IC Kan-Etsu Expressway Oizumi JCT Akabane Sta. Metropolitan Expressway Route 5 Ikebukuro line Metropolitan Expressway Centralscular Route Ikebukuro Sta. Acquisition date Location Logistics (BTS type) Apr. 10, 2019 Sagamihara City, Kanagawa Construction date Apr. 1, 2015 Acquisition price 3,900 million yen み D Project Kitahachioji II D Project Kitahachioji JR Hachiko Line Kita-Hachioj Sta Located approx. 1.3km from National Route 20 and approx. 2.1km from a loop line National Route 16 Located approx. 1.8km from Hachioji IC on the Chuo Expressway, with good access to central Tokyo within a 40km radius from Hachioji City ■I: 5-storied (4-storied for the warehouse section) with GFA of approx. 4,644 tsubo, occupied by a logistics company ■II: 4-storied with GFA of approx. 5,676 tsubo, occupied by a low-temperature logistics company III: 4-storied (3-storied for the warehouse section) with GFA of approx. 7,959 tsubo, occupied by a food wholesaler and a logistics company Acquisition date Location Construction date Acquisition price Leasable area Tenant D Project Kitahachioji I Feb. 28, 2011 4,300 million yen 16,523.82 m² Sanritsu D Project Kitahachioji II Apr. 5, 2019 Hachioji City, Tokyo Jan. 11, 2012 5,700 million yen 21,402.20 m² Hutech norin D Project Kitahachioji III Jun. 1, 2014 7,300 million yen 26,275.05 m² Mitsubishi Shokuhin, Sanritsu Dolwo Lon ■Favorable location capable of distributing to entire Tokyo Metropolitan area including Tama and Saitama areas, with good access to the expressway network, within approx. 8.3km from Sagamihara IC on the Ken-O Expressway, and in close proximity to National Route 16, a major loop road of Tokyo Metropolitan area 4-storied (3-storied for the warehouse section) with GFA of approx. 5,015 tsubo, occupied by a logistics company Leasable area Tenant 16,599.30 m² Daiwa Logistics Chuo Expressway Hachioji IC Hachioji GT Nakayato IC In Aihara l Tomei Expressway Sagamihara IC Metropolitan Inter-City Expwy Ken-O Expressway Ebina JCT Atsugi IC Yokohama Machida le 28#30Acquisitions in March and April 2019 (2) LB-063 D Project Yokkaichi LB-062 D Project Kuki VIII Acquisition date Location Apr. 10, 2019 Kuki City, Saitama Logistics (BTS type) Construction date Oct. 1, 2016 Logistics (BTS type) th 934444 Besuc www Acquisition price Leasable area 6,100 million yen 29,410.54 m² Tenant ESCO Location at approx. 3.7km and 4.3km from Kuki IC on the Tohoku Expressway and Shiraoka-Shobu IC on the Ken-O Expressway, respectively, enabling the property to function as a hub for freight collection and cover Saitama and over the entire Tokyo Metropolitan area, and as a relay point from the Tohoku Region ■5-storied (4-storied for the warehouse section) with GFA of approx. 8,649 tsubo, occupied by an industrial product manufacturer Tohoku Expressway Shirackashobu IC Kuki IC Metropolitan Inter-City Expwy (Ken-O Expressway) Okegawakitamoto Iwatsuki IC Omiya Sta. Urawa IC Kan-Etsu Expressway Kawaguchi ICT Misato CT D Project Kuki M D Project Kuki D Project Kuki - D Project Kukil D Project Kuki N D Project Kuki II D Project Kuki VI D Project Kuki V Mallage Shobu FOLEO Shobu LB-064 D Project Ibaraki Ishioka Logistics (BTS type) Acquisition date Location Construction date Acquisition price Leasable area Tenant Apr. 10, 2019 Ishioka City, Ibaraki Aug. 1, 2015 4,050 million yen 24,493.54 m² Kokubu Group Corp. Kita-Kanto Expressway ■Good traffic access to artery roads and expressways in proximity to National Route 355, an artery road running through Ishioka City, and within approx. 1.9km from Ishioka-Omitama Smart IC on the Joban Expressway 2-storied (1-storied for the warehouse section) with GFA of approx. 6,495 tsubo, occupied by a food wholesaler About half of the warehouse is allocated to a refrigerator and a freezer Ishioka-Omitama Smart IC Tohoku Shinkansen Chiyoda-Ishioka IC d Tsuchiura Kita IC Sakura-Tsuchiura IC Tsukuba JCT Joban Expressway Misato CT Ki Daiwa House REIT Investment Corporation Acquisition date Location Apr. 10, 2019 Yokkaichi City, Mie Construction date Dec. 16, 2016 Acquisition price 1,490 million yen Leasable area 6,185.46 m² Tenant Kintetsu Logistics Systems Property with an ability to serve for a regional distribution network and also to cover distribution to central Nagoya, via National Routes 1 and 23, as well as covering the greater Nagoya and the greater Osaka areas using expressways, thanks to a proximity to Yokkaichi Higashi IC on the Higashi-Meihan Expressway 2-storied with GFA of approx. 1,695 tsubo, occupied by a logistics company One-sided truck berths at the 1st floor Nagoya Sta. Nagoya Nishi JCT Higashi-Meihan Expressway Yokkaichi JCT Yokkani Higashi IC Isewangan Expressway Chitahanto Road Yokkaichi Sta. iias Tsukuba RM-012 (30% co-ownership interest) Retail (Mall type) Daiwa House Group Sublease Acquisition date Location Construction date Acquisition price Leasable area Tenant Apr. 5, 2019 Tsukuba City, Ibaraki Sep. 29, 2008 10,320 million yen 41,670.12 m² Daiwa House Tsukuba City Office Tsukuba Sta Kenkyu-gakuen Sta. Located within an approx. 4-minute walking distance from Kenkyu-gakuen Station on the Tsukuba Express, the newly-emerging subcenter of Tsukuba City Good accessibility by car facing three roads with a parking area for approx. 4,300 vehicles Largest retail property within the 3km-radius area with a growing population especially among students and young families, consisting of over 200 stores Eco-friendly property with installation of solar and solar/wind hybrid power generation systems, as well as an ice thermal storage system using midnight power Tsukuba Chuo C Metropolitan Inter-City Expwy (Keno Expressway) Tsukuba Express Line Joban Expressway Tsukuba JCT 29 29#31Acquisitions in March and April 2019 (3) RR-007 Aoyama Tailor Bunkyo Sengoku Ekimae Store Retail (Roadside type) Apr. 5, 2019 Bunkyo Ward, Tokyo Apr. 1, 1994 750 million yen 1,066.95 m² Aoyama Trading Acquisition date Location Construction date Acquisition price Leasable area Tenant Sugamo Sta JR Yamanote Line Tokyo Metro Namboku Line cusan-dori Ave. Rikugient Gardens RR-008 FOLEO Shobu Retail (Roadside type) Daiwa House Group Sublease O Daiwa House REIT Investment Corporation Acquisition date Location Apr. 5, 2019 Kuki City, Saitama 5,000 million yen Construction date Mar. 16, 2010 Acquisition price Leasable area Tenant Tobu Isesaki Line 19,104.17 m² Daiwa House JR Tohoku Main Line Location along Hakusan-dori Avenue, approx. a minute walk from Sengoku Station on the Toei Subway Mita Line Property with high visibility from Hakusan-dori Avenue, easily accessible with a parking area for 16 cars Occupied by Aoyama Trading, an apparel company operating the brands "Aoyama Tailor" and "THE SUIT COMPANY", etc. Surrounded by the densely-populated and population-growing area and a large inflow of daytime commuting population Toei Mita Line Sengoku Sta Shinobazu-dori Ave. Hongo-don Ave. Hon-komagome Sta. Toyo Univ. Hakusan Sta Located at the intersection of National Route 122 Bypass and Saitama Prefectural Road 12, this property enjoys the good traffic access and can attract visitors from extensive areas High visibility from National Route 122 Bypass, coupled with the similar large-scale retail facility adjacent to the property Tenant composition includes the core tenants of "K's Denki❞ (electric appliance retailer), "Tsutaya Books" (large-scale bookstore), "Cawachi" (drug store), as well as other stores, service providers and restaurants. "Lopia" (supermarket) is also contained in the space of Tsutaya Books Tohoku Expressway Kisai Shobu Bypass Kuki Sta. Metropolitan Inter-City Expwy (Ken-O Expressway) Shiraokashobu IC Kukishiraoka JCT Kuki IC Daiwa Roynet Hotel HO-003 Acquisition date Apr. 5, 2019 OT-005 Nagoya Shinkansenguchi Nursery Room Berry Bear Omori Nishi Acquisition date Mar. 12, 2019 Location Nagoya City, Aichi Welcia Ota Omori Nishi Store Location Ota Ward, Tokyo Hotel Construction date Jul. 3, 2001 Other (Nursery) ダイワロイネットホテル DalwaHouse Group Acquisition price Leasable area 4,500 million yen 7,605.41 m² ウエルシア 10:00~11:0 rooms Construction date Jan. 17, 2019 Acquisition price Leasable area Tenant 1,345.60 m² NESS Corporation, Welcia Yakkoku 1,380 million yen ウエルシア | 処方せん受付 Number of guest Tokaido Shinkansen 165 rooms Daiwa Royal Nagoya Municipal Subway Higashiyama Line Meitetsu Nagoya Main Liney Dai Nagoya Building Sakura-dori Ave. Meitetsu Nagoya Sta. Stay-only hotel with locational advantage within a walking distance of approx. 3 minutes from JR Nagoya Station Supported by the trend of increase in the number of passengers using JR Nagoya Station, with further increase expected in the future when operation of the Linear Chuo Shinkansen starts Tenant Nagoya Meitetsu Nagoya Sta New grand Hotel Nagoya Flower Kintetsu Nagoya Sta. Hotel Daiwa Roynet Hotel Nagoya Taiko Dori Side Taiko-dori Ave. JR Tokaido Mairie Daiwa Roynet Hotel Nagoya-Ekimae Nishiki-dori Ave.------ Meleki-dcri Ave. Municipal Subway Sakuradori Occupied by Daiwa Roynet Hotel operated by Daiwa Royal, a Daiwa House Group company Line JR Tokaido Main Line Toho Univ. Omorimachi Sta. Toho Univ. Omori Medical Center Keikyu Main Line, Umeyashiki Sta. Daiichi Keihin Road Location within walking distance of approx. 4 minutes from Umeyashiki Station, in the middle of a shopping street between Umeyashiki Station and Omorimachi Station on the Keikyu Main Line, in a commuter town for the Tokyo area with a growing population especially among residents in their 20's to 40's Accessible property facing two roads with a parking area for 6 cars and 59 bicycles Tenant composition well supportive of daily living of residents in the vicinity: drug store at the 1st floor and nursery at the 2nd and 3rd floors Kamata Sta. Ota City Office Circular Road No. 8 Keikyu Kamata Sta. 30#32Leveraging Value Chain of Daiwa House Group Value Chain of Daiwa House Group Comprehensive and integrated capabilities from acquisition of land, design and construction, to management and operation Acquisition Selection and development isition of land Compact for Daiwa House REIT Investment Corporation Investment Unit Ownership Program by Daiwa House and Asset Manager Daiwa House and the Asset Manager will introduce the program, following the release of "Guidelines for Investment Unit Ownership Program" by Japanese Securities Dealers Association in May 2018 Disposition Redevelop properties disposed by DHR Property manage Operation Feedback (Planned) Subjects Synergy-effect ODaiwa House REIT Investment Corporation strategy Acquisition new development/ Disposition Planning Utilize the fund for investment in Daiwa House Group Design Daiwa House's Officers (Planned) Timing of Introduction November 2018 Acquisition of developed properties to enhance unitholder value acquisition Disposition Tenant leasing Construction Daiwa House's Employees 16,275 2019 (as of April 1, 2018) // Real Estate Available for Sale of Daiwa House Group Asset Manager's Officers and Employees 60 2019 (as of April 1, 2019) (Bn yen) As of December 31, 2018 Being rented Not being rented Total Logistics, business & 233.5 298.2 531.7 corporate facilities Rental housing 2.2 30.6 32.9 Next-gen Logistics Center Proposed by Daiwa House Group Daiwa House Group, with the application of advanced technologies, offers next- generation logistics center to solve logistics problems including lack of human resources, rising labor costs, rising transportation costs, deteriorating loading efficiency and equipment installation cost Commercial facilities 65.2 40.7 106.0 Daiwa House Daiwa Logitech Holding company of logistics and IT services provider (Source) Daiwa House Industry Co., Ltd. (% of ownership) Same Boat Investment by Daiwa House In order to align interests between our unitholders and Daiwa House, Daiwa House intends to continue holding our units Daiwa House's investment in DHR 187,200 units (9.0%) As of March 26, 2019 DPL Daiwa House Provides functional and optimal logistics facilities with good location. Comprehensive one stop service support including development of land with high specifications, accessibility and functionality Dalwa House Group Frameworx Dallase Group Frameworx/ WMS CONNECTED LOGISTICS Control system of next-generation logistics centers Optimization of logistics center operations and management. ToT-era collaboration among robots and sensors backed by the Latest IT Infrastructure. Types of logistics M Storage Acca International/ Fulfilment services where providing one stop solution for all backyard work "EC factory comprehensive services necessary for EC including photography and measurement, creation of product listing, customer support and distribution Butler Automatic loading robot system Efficient loading inside warehou supporting workforce efficiency, Automation optimizes use of space for stock Vehicle terminal Cloud-based management system of truck dispatch Smartphone and operation Visualization of operations information and unified truck dispatch through online. system. GPS acca Kixif GROUND Inc BUTLER Hacobu QO MOVO GROUND/ Hacobu/ Fulfilment/Sasage/ ALIS MOVO Management (manage inventories and receve and place orders, etc.) Operation Processing for distribution, shipment and receipt) Delivery Truck dispatch Distribution 31#33Distribution Policy Accounting Treatment of Goodwill Goodwill recognized from the merger 69,377 mil yen (as of Feb. 28, 2019) Distribution Policy Daiwa House REIT Investment Corporation Net income Distributions Reversal of voluntary reserve Distribution in excess of earnings After completion of reversal of voluntary reserve After completion of goodwill amortization Goodwill is recorded as intangible non-current assets on B/S Amortized over 20 years using the straight-line method (1,982 mil yen per 6-month fiscal period) Use of Voluntary Reserve Voluntary reserve To pay distribution equivalent to goodwill amortization 8,930 mil yen (after distribution payment for the period ended Feb. 2019) Reversal of voluntary reserve After the merger Utilizing voluntary reserve, the portion equivalent to goodwill amortization will be covered and be distributed Distribution in excess of earnings as allowance for temporary difference adjustments Distribution level will not be affected by goodwill amortization To cover loss on sale of property, etc. Reversal of voluntary reserve To address dilution as a result of issuance of units Tax loss carry-forwards 507 mil yen (Note) (Note) Tax loss carry-forwards can be applied to offset taxable income through the period ending Feb. 2021. When recording gain on sale of property, etc. or other items is realized Accumulation of voluntary reserve Goodwill is amortized over 20 years Realize stable distributions 32#34Historical Financial Data Daiwa House REIT Investment Corporation Feb. 2017 Aug. 2017 Feb. 2018 Aug. 2018 (A) Feb. 2019 (B) Change (B-A) Operating days 181 days 184 days 181 days 184 days 181 days -3 days Operating Revenue 17,531 mil yen 21,015 mil yen 19,700 mil yen 22,211 milyen 23,127 mil yen 915 mil yen Operating Income 5,567 mil yen 9,392 mil yen 8,012 mil yen 9,269 mil yen 9,960 mil yen 690 mil yen Gain (loss) on sale of properties -4 mil yen 1,536 mil yen -99 mil yen 113 mil yen 212 mil yen Ordinary Income 4,474 mil yen 7,974 mil yen 7,146 mil yen 7,770 mil yen 8,597 mil yen 827 mil yen Net Income 4,393 mil yen 7,968 mil yen 7,142 mil yen 7,765 mil yen 8,597 mil yen 831 mil yen DPU 4,800 yen Number of investment units issued 1,519,280 units 4,964 yen 1,690,000 units 5,194 yen 1,690,000 units 5,046 yen 1,927,000 units 5,427 yen 1,927,000 units 381 yen Payout ratio 166.0% 104.0% 122.9% 123.6% 121.7% -1.9 p.p. Total Assets 604,142 mil yen 682,359 mil yen 681,192 mil yen 771,281 mil yen 777,727 mil yen 6,445 mil yen Net Assets 330,304 mil yen 377,321 mil yen 376,300 mil yen 430,596 mil yen 429,223 mil yen -1,373 mil yen Unitholders' Capital 61,703 mil yen 108,136 mil yen 108,136 mil yen 163,230 mil yen 163,230 mil yen Capital Surplus 247,667 mil yen 247,667 mil yen 247,667 mil yen 247,667 mil yen 247,667 mil yen Interest-bearing debt 253,163 mil yen 282,268 mil yen 282,268 mil yen 314,268 mil yen 321,268 mil yen 7,000 mil yen LTV (Excluding goodwill) 48.1% 46.5% 46.4% 44.9% 45.4% 0.5 p.p. LTV (Including goodwill) 41.9% 41.4% 41.4% 40.7% 41.3% 0.6 p.p. Net Assets per unit 217,408 yen 223,267 yen 222,663 yen 223,454 yen 222,741 yen -713 yen NAV per unit (Note 1) 234,683 yen 245,689 yen 248,003 yen 254,168 yen 261,610 yen 7,442 yen FFO per unit (Note 2) 6,469 yen 7,184 yen 7,625 yen 7,346 yen 7,747 yen 401 yen (Note 1) NAV per unit: (Unitholders' capital + capital surplus + appraisal value of properties - book value of properties) / number of investment units issued (Note 2) FFO per unit: (Net income + depreciation + amortization + amortization of investment corporation bond issuance costs + amortization of trademark rights + amortization of software +/- loss or gain on sale of properties +/- extraordinary loss or gain) / number of investment units issued 33#35Historical Portfolio Data Daiwa House REIT Investment Corporation Feb. 2017 Aug. 2017 Feb. 2018 Aug. 2018 (A) Feb. 2019 (B) Change (B-A) Number of properties 189 properties 199 properties 199 properties 213 properties 216 properties 3 properties Total acquisition price 513,772 mil yen 577,777 mil yen 577,777 mil yen 671,753 mil yen 683,443 mil yen 11,690 mil yen Ratio of logistics properties 38.1 % 45.0% 45.0% 50.1% 49.7% -0.4 p.p. Ratio of residential properties 50.2% 43.3% 43.3% 36.8% 36.1% -0.7 p.p. Ratio of retail properties 9.8% 9.6% 9.6% 10.6% 11.6% 1.0 p.p. Ratio of hotel properties Ratio of other assets 0.7% 0.9% 0.2 p.p. 1.9% 2.0% 2.0% 1.7% 1.7% Number of properties acquired 7 properties 17 properties 16 properties (Note 1) 4 properties Acquisition price 22,830 mil yen 73,311 mil yen 96,980 mil yen 12,710 mil yen -12 properties -84,270 mil yen Number of properties sold Sale price Unrealized gain (loss) 1 property 370 mil yen 47,179 mil yen 7 properties 10,193 mil yen Leasable area 1,605,625.31 m² 59,410 mil yen 1,934,669.61 m² 63,322 mil yen 1,934,679.13 m² 1 property 2,800 mil yen 78,885 mil yen 2,427,976.21 m² 1 property 1,200 mil yen 93,224 mil yen 2,516,960.54 m² - properties -1,600 mil yen 14,339 mil yen 88,984.33 m² Occupancy rate 99.0% 99.2% 99.3% 99.5% 99.5% Real estate rental revenue 17,531 mil yen 19,479 mil yen 19,700 mil yen 22,211 mil yen 23,013 mil yen 801 mil yen Real estate rental expenses 7,493 mil yen 7,906 mil yen 7,947 mil yen 8,944 mil yen 9,184 mil yen 240 mil yen Real estate rental income 10,037 mil yen 11,573 mil yen 11,753 mil yen 13,267 mil yen 13,828 mil yen 561 mil yen Depreciation 3,361 mil yen 3,713 mil yen 3,750 mil yen 4,296 mil yen 4,454 mil yen 158 mil yen NOI (Note 2) 13,398 mil yen 15,286 mil yen 15,503 mil yen 17,563 mil yen 18,283 mil yen 719 mil yen NOI yield (Note 3) 5.3% 5.4% 5.4% 5.4% 5.4% (Note 1) Including additional acquisition of D Project Inuyama (Note 2) NOI: Real estate rental business revenue - real estate rental business expenses + depreciation (Note 3) NOI yield is annualized and excluding the properties sold during the period. 34#36Balance Sheets Period ended Aug. 2018 (thousand yen) Period ended Feb. 2019 Daiwa House REIT Investment Corporation Period ended (thousand yen) Period ended Aug. 2018 Feb. 2019 Assets Current assets Cash and deposits Cash and deposits in trust Operating accounts receivable Prepaid expenses Consumption taxes receivable Other 26,954,525 10,505,983 176,748 618,449 3,551,655 31,274,515 9,976,462 275,683 609,658 Accrued expenses Liabilities Current liabilities Operating accounts payable Current portion of long-term loans Accounts payable - other Income taxes payable 227 25 Accrued consumption taxes Allowance for doubtful accounts (2,137) Total current assets 41,805,452 (1,225) 42,135,120 Advances received Unearned revenue 1,336,266 11,600,000 306,108 1,390,790 605 1,297,062 40,510,000 66,683 1,418,415 605 398,538 Non-current assets Investment properties Buildings, net Structures, net Deposits received 2,675,485 221,735 327,234 2,757,226 222,342 345,273 22,191,122 21,695,476 205,733 200,072 Machinery and equipment, net 325,726 333,314 Tools, furniture and fixtures, net Land 314,943 21,637,530 298,398 Other Total current liabilities Non-current liabilities Investment corporation bonds Long-term loans 90,429 91,929 17,948,655 47,108,077 19,000,000 19,000,000 283,668,000 261,758,000 20,879,124 Long-term unearned revenue Buildings in trust, net 290,036,867 292,521,677 Tenant leasehold and security deposits 928,843 280,916 818,279 276,389 Structures in trust, net 6,506,624 6,613,525 Machinery and equipment in trust, net 1,428,829 1,399,830 Tenant leasehold and security deposits in trust Asset retirement obligations 17,422,350 17,854,492 Tools, furniture and fixtures in trust, net 519,530 565,623 Derivatives liabilities 620,349 816,561 626,251 1,063,056 Land in trust Total investment properties Intangible assets Goodwill Leasehold rights in trust Software Trademark rights Total intangible assets Investments and other assets Investment securities 302,954,257 310,001,420 Total non-current liabilities 322,737,022 301,396,469 Construction in progress in trust 73,774 646,194,941 15,228 654,523,691 Total liabilities 340,685,677 348,504,547 71,360,157 6,035,339 69,377,930 5,987,926 Net assets Unitholders' equity 569 Unitholders' capital 163,230,367 163,230,367 2,337 77,398,403 9,342 Long-term prepaid expenses 2,284,919 Guarantee deposits 261 Lease and guarantee deposits in trust Total investments and other assets 3,489,293 5,783,816 Total non-current assets 729,377,161 276 2,059 75,368,193 9,360 2,110,873 3,489,293 5,609,787 735,501,672 Surplus Capital surplus 247,667,563 247,667,563 Voluntary reserve Reserve for temporary difference 10,785,218 8,804,571 adjustments Reserve for distribution 261 Total voluntary reserve Unappropriated retained earnings Total surplus 1,964,241 12,749,459 7,765,290 268,182,313 1,986,536 10,791,107 8,597,087 267,055,758 Total unitholders' equity 431,412,680 430,286,126 Deferred assets Deferred gains or losses on hedges (816,561) (1,063,056) Investment corporation bond issuance costs Total deferred assets 99,182 99,182 Total assets 771,281,796 90,823 90,823 777,727,616 Total net assets 430,596,119 429,223,069 Total liabilities and net assets 771,281,796 777,727,616 35#37Statements of Income Daiwa House REIT Investment Corporation Operating revenue Rental revenue Other rental revenue Gain on sale of real estate properties 21,160,720 1,050,855 Total operating revenue 22,211,576 21,984,957 1,028,600 113,532 23,127,090 | II Reversal of voluntary reserve Operating expenses Rental expenses 8,944,104 9,184,698 Loss on sale of real estate properties 99,380 Asset management fees 1,452,834 Asset custody fees 32,882 Administrative service fees 83,859 Directors' remuneration 6,600 Amortization of goodwill 1,982,226 1,519,464 33,727 89,196 6,600 1,982,226 Unappropriated retained earnings Reversal of reserve for temporary difference adjustments III Distributions [Distributions per unit] IV Accumulation of voluntary reserve Period ended Aug. 2018 (thousand yen) Period ended Feb. 2019 Statements of Cash Distributions Period ended Aug. 2018 7,765,290,290 (yen) Period ended Feb. 2019 8,597,087,441 V Accumulation of reserve for distribution Retained earnings carried forward 1,980,646,890 1,980,994,520 9,723,642,000 [5,046] 10,457,829,000 [5,427] 22,295,180 120,252,961 Provision of allowance for doubtful accounts 561 Other operating expenses 339,658 Total operating expenses 12,942,107 351,000 13,166,914 Operating Income Non-operating income Interest income 9,269,468 9,960,176 /Rental Revenue and Expenses Period ended Aug. 2018 (thousand yen) Period ended Feb. 2019 178 166 Gain on forfeiture of unclaimed distributions 4,168 4,436 Settlement received 10,070 Reversal of allowance for doubtful accounts 266 Settlement money for property tax, etc. 1,564 A. Real estate rental revenue Rental revenue Rent Common area charges Total rental revenue Other rental revenue 20,695,802 464,918 21,160,720 21,511,590 473,366 21,984,957 Refunded consumption taxes 22,295 6,720 Facility charges 365,832 382,753 Interest on tax refund 1,518 Incidental revenue 295,306 283,633 Other 2,573 1 Other 389,716 362,213 Total non-operating income 39,287 14,674 Total other rental revenue 1,050,855 1,028,600 Non-operating expenses Interest expenses 1,019,240 Interest expenses on investment corporation bonds 42,392 Amortization of investment corporation bond 7,709 1,036,887 51,092 8,358 Total real estate rental revenue B. Real estate rental expenses Rental expenses 22,211,576 23,013,558 Management fees 1,303,367 1,283,640 Utilities 342,082 349,856 issuance costs Investment unit issuance expenses 191,068 Taxes and public dues 1,440,930 1,432,107 Borrowing related expenses Other Total non-operating expenses Ordinary Income Extraordinary losses Income before income taxes Total income taxes Net income Unappropriated retained earnings 275,881 278,819 Repairs and maintenance expenses 568,311 746,985 2,056 2,000 Restoration costs 311,974 230,219 1,538,348 1,377,157 Insurance expenses 26,911 27,558 7,770,407 8,597,692 4,512 Depreciation 7,765,895 8,597,692 605 605 7,765,290 7,765,290 8,597,087 8,597,087 Custodian fees Other operating expenses Total real estate rental expenses C. Income from real estate rental business (A-B) 68,447 58,202 4,296,514 4,454,820 585,563 601,307 8,944,104 13,267,472 9,184,698 13,828,859 36#38ESG Initiatives (1) Sustainability Policy Sustainability Policy The Daiwa House Group's basic approach is "Creating Dreams, Building Hearts." As a group that co-creates value for individuals, communities and people's lifestyles, the group aims to build trust relationships with stakeholders and contribute to society through its businesses, and to realize a sustainable society by meeting the challenge of achieving "zero environmental impacts." Daiwa House Asset Management Co., Ltd. (the "Asset Manager") shares the Daiwa House Group's basic approach as DHR's asset manager, and considers that including consideration for ESG in its real estate investment management operations contributes to DHR's basic policy of ensuring stable revenue and steady growth of assets over the long term. Therefore, we have established the "Sustainability Policy" to guide our real estate investment and management. Prevention of global warming 2 Harmony with the natural environment 3 Conservation of natural resources 4 Prevention of chemical pollution 5 Establishment of an internal framework and initiatives for employees 6 Building of trust relationships with external stakeholders 7 Promotion of communication through information disclosure 8 Compliance with laws and regulations, and risk management Sustainability Target The Asset Manager considers efforts such as energy conservation and reducing greenhouse gas emissions in relation to asset management to be serious environmental issues. It establishes individual policies and strives to reduce the burden it puts on the environment. Reduction Target of Energy Consumption Aim to reduce energy consumption and CO2 emission intensity by 10% over the 10 year period from 2018 to 2027 Daiwa House REIT Investment Corporation // GRESB Real Estate Assessment DHR received a "Green Star” rating in the 2018 assessment, as our "Management & Policy" and "Implementation & Measurement❞ were highly evaluated DHR received a "2-Star” rating in the "GRESB Rating" based on relative evaluation GRES B 2018 GRESB: Annual benchmark assessment that evaluates ESG initiatives in the real estate sector Sumitomo Mitsui Banking Corporation Environmental Assessment Loan In recognition of our commitment to environmental initiatives, DHR received an "A" grade for maintaining high standards in the environmental management, environmental communication and implementation of environmental protection measures SMBC ECO 37#39ESG Initiatives (2) Environmental Initiatives DBJ Green Building Certification Promoting DBJ Green Building Certification Number of certified properties 22 properties +6 properties compared to end of Sep. 2018 Certified rate (based on gross floor area) 38.8% +14.% compared to end of Sep. 2018 2 properties Green Lease Agreement O Daiwa House REIT Investment Corporation Promoting conclusion of green lease agreements and implementing measures for environmental load reduction together with our tenants Installed LED lighting, etc. Number of properties with green lease agreements 28 properties +22 properties compared to end of Sep. 2018 Ratio of properties with green lease agreements (based on gross floor area) 25.0% +19.0% compared to end of Sep. 2018 DBJ Green Building Major certified properties DPL Misato 10 properties 9 properties 1 property as of March 31, 2019 Naha Shin-Toshin Center Building (Daiwa Roynet Hotel Naha-Omoromachi) Royal Parks Hanakoganei ACROSSMALL Shinkamagaya BELS Certification DHR received the highest 5-star rating in our first certification of Building-Housing Energy-efficiency Labelling System (BELS) BELS D Project Machida この建物のエネルギー消費量 48%削減 2015年3月29日交付国土交通省告示に基づく第三者 Environmental Consideration Energy conservation measures Solar power LED lights generation system as of March 31, 2019 Large-scale window space Slope to the upper floor allowing use of natural light Greening and heat island countermeasures Large-scale green area Rooftop greening DO Exterior greening, water-permeable paving Rooftop terraces 38#40ESG Initiatives (3) Social Initiatives Social Consideration Universal Design Universal design toilet system Universal design elevator Disabled parking space Comfortable environment for tenants and facility users Workout gym Lounge Contribution to communities Local events いやりパーキング Play space for children Bicycle rentals AED O Daiwa House REIT Investment Corporation Human Resource Development of Asset Manager Providing healthy work environment < Leave system > . Childcare leave / granny leave •Family care leave • Planned annual paid leave • Community co-creation leave Work-life balance <FY ended Mar. 2019 > <Welfare programs > • Support for official qualification exams • Cumulative investment unit investment program • Investment unit ownership program (planned) • Daiwa House Group employee incentive plan • Average overtime work 12 hours/month • Paid leave taken Diversity <FY ended Mar. 2019 > • Female employees 30% 69% • Female employees of mid-career recruitment 50% Training for all directors and employees AED Dux <FY ended Mar. 2019 > • Number of training sessions 13 Number of official qualification (including successful candidates) • ARES certified master • Real estate transaction agent 26 51 Community Co-Creation Activities of Asset Manager • Real estate appraiser 2 Clean-up activities Participation as a volunteer in "Japanese Lesson for People Returning from China" • First-class architect 2 • O Certified real estate consulting master 5 • Certified building administrator 11 Number of directors and employees as of March 31, 2019: 61 39#41ESG Initiatives (4) Governance Initiatives Ensuring Involvement of Third Parties in Decision-Making Flow to Protect Unitholders' Interests Flow at the time of the decision to acquire assets from interested parties Following the unanimous vote at the compliance committee including the third-party outside experts, weighted resolution by the board of directors of the Asset Manager and approval by the board of directors of DHR consisting of third-parties only are required Instruction to revise Compliance Officer Report Attendance Attendance Attendance deliberation results Attendance Daiwa House REIT Investment Corporation Same Boat Investment / Investment Unit Ownership Program by Daiwa House Investment in DHR units (same boat investment) In order to align interests between our unitholders and Daiwa House, Daiwa House intends to continue holding our units Daiwa House's investment in DHR (% of ownership) Investment unit ownership program 187,200 units (9.0%) As of March 26, 2019 Daiwa House established the Investment Unit Ownership Association in October 2018, following the release of "Guidelines for Investment Unit Ownership Program" by Japanese Securities Dealers Association in May 2018 Investment Department Investment Committee Compliance Committee Unanimous vote Decision on acquisition Approval Board of Directors of DHR Weighted resolution Asset Manager Board of Directors of Unanimous vote Subjects Officers (Planned) introduction November 2018 Employees 2019 Investment Unit Ownership Program / Cumulative Investment Unit Investment Program by Asset Manager Investment unit ownership program Officers and Employees Introduced in December 2013 Subjects Disagreed Disagreed Disapproved Disapproved Planned introduction Officers and Employees 2019 Instruction to revise Abolish proposals Abolish proposals Cumulative investment unit investment program Submit investment value analysis Attendance at the board of directors meetings of DHR by the executive director and supervisory directors in the period ended Feb. 2019 100% (9 out 9 board meeting) Subjects Introduction 40#42ESG Initiatives (5) Daiwa House Group Initiatives Environmental Initiatives of Daiwa House Group [Challenge ZERO 2055] Daiwa House Group formulated the long-term environmental vision of "Challenge ZERO 2055", which marks the 100th anniversary of the foundation of Daiwa House ⚫ As a "group that co-creates value for individuals, communities, and lifestyles," the Group management vision, Daiwa House Group aims to realize a sustainable society and tries to create zero environmental impacts through three stages with four environmental priority themes in mind Joining the international EP100, RE100 and SBT initiatives Daiwa House Group joined the international EP100 and RE100 initiatives for energy efficiency and renewable energy in March 2018 and received SBT initiative certification for greenhouse gas reduction in August 2018, and thus became the world's first company in the construction/housing industry to join the three international initiatives Daiwa House aims to double energy efficiency, supply 100% of group-wide electricity from renewable energy sources, and decarbonize the energy system External Evaluation of Daiwa House Nadeshiko Brand Award 【METI/TSE】 Designated for four consecutive years as a publicly-listed company with good female empowerment practices Daiwa House REIT Investment Corporation FTSE4Good Index Series/ FTSE Blossom NADE SHIN KO Included Rating: 3.9 * I as of June 29, 2018 Competitive IT Strategy Company 【METI/TSE】 Selected for three consecutive years as a company with IT efforts that bring about increases in productivity, earnings, management innovation and new value creation FTSE4Good FTSE Blossom Japan MSCI World ESG Leaders Index Included Rating: AA * Within the top 25% of incorporated Japanese companies 2018 * 攻めのIT経営銘柄 as of June 29, 2018 Competitive IT Strategy Company Health and Productivity Company 【METI)】 2018 健康經營優良法人 Health and productivity ホワイト 500 Certified in the large-scale business category (White 500) for the efforts for good health management Eco-First Company Certification BASED TARGETS DRIVING AMBITIOUS CORPORATE CLIMATE ACTION Certified by the Minister of the Environment as an advanced, unique and industry-leading company in the ECO 1 FIRST SCIENCE [Ministry of the Environment] environmental arena ■ Community Co-Creation Activities of Daiwa House Group Community co-creation activities for FY2017 Educational assistance Social welfare Environmental preservation Local community services (clean-up) 686 Local community services 750 (other than clean-up) 377 Total 536 3,173 254 cases Humanitarian assistance 227 International cooperation 281 Assistance to disaster-affected areas 62 Preserving the cherry trees (Daiwa Sakura Aid) Preserving the cherry trees on Mt. Yoshino Started the program in 2008 for preserving the cherry trees of Yoshino, where the founder of Daiwa House is from 【FY2017] Number of activities: 6, Number of participants: 135 (employees of the Group and their family members) Sakura Project Carried out the planting project mainly with elementary schools to pass on cherry trees to the next generations 【FY2017] Number of locations: 29, Number of participants: 8,528, Number of cherry tress planted: 60 2017 Constituent MSCI MSCI ESG Leaders Indexes Dow Jones Sustainability Indices Included Total score: 58 points * as of September 2018 MEMBER OF Dow Jones Sustainability Indices In Collaboration with RobecoSAM * Within the top 30% for the real estate sector in Japan, Asia and Oceanian regions MSCI World SRI Index/ MSCI Japan ESG Select Leaders Index STOXX® Global ESG Leaders CDP Climate Change 2018 S&P/JPX Carbon Efficient Index Included Rating: AA * Within the top 25% of incorporated Japanese companies * as of June 29, 2018 Included * as of October 2018 Score: A (top score) Included * as of September 25, 2018 * Evaluated for being the most carbon efficient and for the highest level of disclosure of GHG emission in the real estate industry Source: Daiwa House Industry Co., Ltd. 41#43Market Environment for Logistics Properties Supply and Demand of Medium-to Large-scale Logistics Properties in the Three Major Metropolitan Areas (thousand m²) 3,500 Daiwa House REIT Investment Corporation // Development of Medium-to Large-scale Logistics Properties (thousand m²) 3,000 2,500 2,000 1,500 1,000 500 7% 4,000 6% 3,500 5% 3,000 2,500 4% 2,000 3% 1,500 2% 1,000 1% 500 0% 2015 2016 2017 2018 New demand (LHS) - Vacancy rate (RHS) 2012 2013 2014 2015 ■Greater Tokyo area Source: CBRE 2016 2017 2018 ■Greater Osaka area Other areas 2019 2020 (planned) (planned) Source: CBRE 1 2012 2013 2014 New supply (LHS) Average Offered Rent for Medium-to Large-scale Logistics Properties in the Three Major Metropolitan Areas Greater Nagoya area // Proportion of Advanced Large-scale Logistics Properties (yen/tsubo/per month) 5,000 4,000 3,000 2,000 2012 2013 2014 2015 Greater Tokyo area Greater Nagoya area Japan Greater Tokyo area 2018 2016 2017 Greater Osaka area Three major metropolitan areas Advanced large-scale logistics properties 4.3% Other logistics properties 95.7% Advanced large-scale logistics properties 9.2% Other logistics properties 90.8% Source: CBRE Source: CBRE 42#44Market Environment for Residential Properties Number of Households in Tokyo (million households) Daiwa House REIT Investment Corporation // Rent Per Tsubo for Apartments in 23 Wards of Tokyo (yen/tsubo/per month) 8 6 4 50% 15,000 14,000 46% 13,000 42% 12,000 11,000 38% 10,000 34% 9,000 2015 2 0 1995 2000 2005 2010 Other household (LHS) Couples household (LHS) Single household (LHS) Ratio of single household (RHS) Source: "Population Census", Statistics Bureau, Ministry of Internal Affairs and Communications 1H-14 2H-14 1H-15 2H-15 1H-16 2H-16 1H-17 2H-17 1H-18 2H-18 5 Central Wards of Tokyo 5 Central Wards of Tokyo (<40 m²) ...... (40 m² << 80 m²) 23 Wards of Tokyo (<40 m²) 23 Wards of Tokyo (40 m2 80 m²) Source: Compiled by the Asset Manager from data published by // Starts of Rental Apartments Japan Real Estate Institute in "Housing Market Index". 0 // Net Population Inflow of Japanese by Area (thousand people) 100 80 60 40 20 LL (thousand units) 35 30 25 20 15 10 5 -20 0 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 ■Tokyo ■ Aichi Osaka ■Tokyo ■ Aichi Osaka Source: "Report on Internal Migration", Statistics Bureau, Ministry of Internal Affairs and Communications Note: Based on the aggregate of rental apartments with steel-reinforced concrete and reinforced concrete structure. Source: "Housing Stars", Policy Bureau, Ministry of Land, Infrastructure, Transport and Tourism 43#45Market Environment for Retail and Hotel Properties Retail Sales (YoY Change) Daiwa House REIT Investment Corporation / Number of Overnight Guests by Accommodation Type (million guest nights) 6% 600 474 504 510 509 492 466 4% 2% 0% -2% -4% 500 400 300 200 100 17/3 17/5 17/7 17/9 17/11 18/1 18/3 18/5 18/7 18/9 18/11 19/1 0 2013 2014 2015 2016 2017 2018 Retail sales Supermarket sales -Supermarket sales (Food and beverages) Ryokan (Japanese-style inn) ■Business Hotel ■Resort Hotel City Hotel Note: Retail sales exclude sales of cars and fuel. Source: "Monthly Report on the Current Survey of Commerce", Ministry of Economy, Trade and Industry, or METI Simple lodging ■Corporate / group lodging Source: "Accommodation Survey", Japan Tourism Agency // BtoC E-Commerce Ratio by Category of Goods Guest Room Occupancy Ratio of Accommodation Facilities 30.2% 30% 26.4% Consumer electronics, AV equipment, PC, Peripherals Books, audio software 90% 80% 20.4% 20% Household goods, furniture, interior 70% Clothes, fashion, accessories 11.5% 60% 10% X 5.8% Total of goods 50% 2.4% -Food, beverage, alcohol 2013 2014 2015 2016 2017 2018 0% 2013 2014 2015 2016 2017 Source: "E-Commerce Market Survey", Ministry of Economy, Trade and Industry, or METI City Hotel Business Hotel Resort Hotel Source: "Accommodation Survey", Japan Tourism Agency 44#46Portfolio List (1) Daiwa House REIT Investment Corporation Acquisition Property number Property name Location price (mil yen) Investment ratio Leasable area (m²) cy rate Occupan Property number Property name Location Acquisition price Investment ratio (Note) (mil yen) Leasable area (m²) Occupan cy rate (Note) LB-001 D Project Machida Machida City, Tokyo 9,200 1.2% 50,490.39 100.0% LB-037 D Project Urayasu III Urayasu City, Chiba 8,500 1.1% 39,441.32 100.0% LB-002 D Project Hachioji Hachioji City, Tokyo 15,400 2.1% LB-003 D Project Aikawa-Machi Aiko District, Kanagawa 3,390 0.5% LB-004 D Project Shin-Misato Misato City, Saitama 5,710 0.8% LB-005 D Project Urayasu | Urayasu City, Chiba 9,280 1.2% 36,515.81 100.0% 62,394.17 100.0% LB-038 14,240.84 100.0% LB-039 11,289.91 100.0% LB-040 LB-041 D Project Tomisato D Project Kyotanabe D Project Sendai Izumi Tomisato City, Chiba 5,000 0.7% 36,113.25 100.0% Kyotanabe City, Kyoto 3,520 0.5% 10,965.68 100.0% Sendai City, Miyagi 1,510 0.2% 10,764.05 100.0% D Project Oyama Oyama City, Tochigi 2,000 0.3% 14,106.91 100.0% LB-006 D Project Urayasu II Urayasu City, Chiba 26,000 3.5% 72,320.01 100.0% LB-042 D Project Sano Sano City, Tochigi 1,780 0.2% 15,668.44 100.0% LB-007 D Project Akanehama Narashino City, Chiba 2,950 0.4% 11,663.39 100.0% LB-043 D Project Tatebayashi Tatebayashi City, Gunma 3,100 0.4% 13,521.56 100.0% LB-008 D Project Noda Noda City, Chiba 6,210 0.8% 29,232.53 100.0% LB-044 D Project Kakegawa Kakegawa City, Shizuoka 6,000 0.8% 39,341.44 100.0% LB-009 D Project Inuyama Inuyama City, Aichi 10,790 1.4% LB-010 D Project Gifu Anpachi District, Gifu 1,100 0.1% LB-011 D Project Neyagawa Neyagawa City, Osaka 5,980 0.8% 54,197.80 100.0% 7,669.91 100.0% 11,151.51 100.0% LB-012 D Project Sapporo Minami Kitahiroshima City, 818 0.1% 6,749.10 100.0% Hokkaido LB-045 LB-046 LB-047 LB-048 LB-049 D Project Hiroshima Seifu Hiroshima City, Hiroshima 3,820 0.5% 19,004.72 100.0% D Project Tosu II Tosu City, Saga 1,700 0.2% 13,012.50 100.0% D Project Kawagoe IV Kawagoe City, Saitama 5,600 0.7% 24,684.47 100.0% D Project Kuki VII Kuki City, Saitama 1,040 0.1% 3,225.46 100.0% D Project Chibakita Chiba City, Chiba LB-013 D Project Morioka Takizawa City, Iwate 1,200 0.2% 9,558.32 100.0% 7,640 1.0% 24,368.86 100.0% LB-050 LB-014 D Project Sendai Minami Iwanuma City, Miyagi 1,530 0.2% 11,052.27 100.0% LB-015 D Project Tsuchiura Tsuchiura City, Ibaraki 3,390 0.5% 17,448.86 100.0% LB-016 D Project Gotenba Gotenba City, Shizuoka 1,140 0.2% LB-017 D Project Nishi-Hiroshima Hiroshima City, Hiroshima 1,210 0.2% LB-018 D Project Fukuoka Umi Kasuya District, Fukuoka 4,240 0.6% 6,737.53 100.0% 5,093.51 100.0% 24,729.56 100.0% LB-051 LB-052 LB-053 LB-054 LB-055 D Project Matsudo II D Project Tomisato II Matsudo City, Chiba 8,200 1.1% 25,305.82 100.0% Tomisato City, Chiba 6,900 0.9% 40,870.56 100.0% D Project Osaka Hirabayashi Osaka City, Osaka 3,600 0.5% 22,485.08 100.0% D Project Sendai Izumi II Sendai City, Miyagi 7,300 1.0% 39,580.46 100.0% D Project Kaminokawa Kawachi District, Tochigi 7,900 1.1% 52,239.75 100.0% LB-019 D Project Tosu Tosu City, Saga 5,740 D Project Fuji Fuji City, Shizuoka 3,600 0.5% 23,795.40 100.0% 0.8% 17,858.01 100.0% LB-020 D Project Kuki I Kuki City, Saitama 3,900 0.5% 22,708.72 100.0% LB-021 D Project Kuki II Kuki City, Saitama 8,120 1.1% 50,490.00 100.0% LB-022 D Project Kawagoe I Kawagoe City, Saitama 3,530 0.5% 16,150.88 100.0% LB-023 D Project Kawagoe II Kawagoe City, Saitama 4,850 0.6% LB-024 DPL Inuyama Inuyama City, Aichi 3,940 0.5% 19,872.00 100.0% 21,628.50 100.0% LB-025 D Project Fukuoka Hakozaki Fukuoka City, Fukuoka 4,340 0.6% 34,710.80 100.0% LB-056 LB-057 LB-058 LB-059 LB-060 LB-061 D Project Tosu III Tosu City, Saga 9,200 1.2% 65,215.07 100.0% D Project Kitahachioji I Hachioji City, Tokyo 4,300 0.6% 16,523.82 100.0% D Project Kitahachioji II Hachioji City, Tokyo 5,700 0.8% 21,402.20 100.0% D Project Kitahachioji III Hachioji City, Tokyo 7,300 1.0% 26,275.05 100.0% D Project Itabashi Shingashi Itabashi Ward, Tokyo 12,300 1.6% 33,763.46 100.0% Sagamihara City, D Project Sagamihara 3,900 0.5% 16,599.30 100.0% Kanagawa LB-026 D Project Kuki III Kuki City, Saitama 7,630 1.0% 26,937.41 100.0% LB-027 D Project Kuki IV Kuki City, Saitama 5,520 0.7% 26,460.00 100.0% LB-062 LB-063 D Project Kuki VIII Kuki City, Saitama 6,100 0.8% 29,410.54 100.0% D Project Yokkaichi Yokkaichi City, Mie 1,490 0.2% 6,185.46 100.0% LB-028 D Project Kuki V Kuki City, Saitama 8,280 1.1% 47,320.89 100.0% LB-064 LB-029 LB-030 D Project Yashio D Project Kuki VI Kuki City, Saitama 5,140 0.7% 29,244.66 100.0% LM-001 D Project Ibaraki Ishioka DPL Misato Ishioka City, Ibaraki 4,050 0.5% 24,493.54 100.0% Misato City, Saitama 16,831 2.2% 55,864.47 100.0% Yashio City, Saitama 6,400 0.9% 21,965.04 100.0% LB-031 D Project Nishiyodogawa Osaka City, Osaka 10,300 1.4% 39,584.80 100.0% LM-002 LM-003 DPL Fukuoka Kasuya DPL Kitakyushu Kasuya District, Fukuoka 13,300 1.8% 73,739.04 100.0% Kitakyushu City, Fukuoka 3,510 0.5% 26,672.98 100.0% LB-032 D Project Matsudo Matsudo City, Chiba 7,370 1.0% 26,776.67 100.0% LB-033 D Project Hibiki Nada Kitakyushu City, Fukuoka 2,080 0.3% 23,933.75 100.0% LB-034 D Project Morioka II Takizawa City, Iwate 1,280 0.2% 4,481.00 100.0% LB-035 D Project Kawagoe III Kawagoe City, Saitama 7,200 1.0% 39,572.32 100.0% LB-036 D Project Kazo Kazo City, Saitama 3,300 0.4% 18,371.10 100.0% 45#47Portfolio List (2) Daiwa House REIT Investment Corporation Acquisition Property number Investment Leasable Occupan Property Property name Location price ratio (mil yen) area (m²) cy rate (Note) Property name Location Acquisition price Investment Leasable number ratio area (m²) (mil yen) Occupan cy rate (Note) RE-001 Qiz Ebisu Shibuya Ward, Tokyo 7,650 1.0% RE-002 Castalia Azabujuban Shichimenzaka Minato Ward, Tokyo 4,500 0.6% RE-003 Castalia Shibakoen Minato Ward, Tokyo 2,630 0.4% 3,492.93 95.5% 2,707.51 98.9% RE-004 Castalia Ginza Chuo Ward, Tokyo 2,520 0.3% RE-005 Castalia Hiroo Minato Ward, Tokyo 2,220 0.3% 2,226.42 95.6% 1,621.59 100.0% 5,230.39 99.4% RE-037 Castalia Ginza III RE-038 Castalia Kayabacho RE-039 Castalia Takanawa RE-040 Castalia Higashi Nihonbashi RE-041 Castalia Shinjuku Chuo Ward, Tokyo 2,880 0.4% 3,494.42 98.7% Chuo Ward, Tokyo 2,707 0.4% 4,602.95 98.9% Minato Ward, Tokyo 7,430 1.0% 10,408.26 97.6% Chuo Ward, Tokyo 3,520 0.5% 6,442.28 100.0% Shinjuku Ward, Tokyo 2,950 0.4% 3,150.80 100.0% RE-006 O Castalia Nihonbashi Chuo Ward, Tokyo 1,200 0.2% 1,458.73 96.6% RE-007 Castalia Hacchobori Chuo Ward, Tokyo 2,300 0.3% 2,969.57 95.2% RE-008 Castalia Azabujuban Minato Ward, Tokyo 2,910 0.4% 2,400.00 100.0% RE-009 Castalia Azabujuban II Minato Ward, Tokyo 2,690 0.4% 2,094.58 95.2% RE-010 Castalia Shinjuku Natsumezaka Shinjuku Ward, Tokyo 1,865 0.2% 1,917.62 100.0% RE-011 Castalia Ginza II Chuo Ward, Tokyo 1,800 0.2% 1,817.56 93.5% RE-012 Castalia Shibuya Sakuragaoka Shibuya Ward, Tokyo 1,400 0.2% 1,123.80 100.0% RE-042 Castalia Ichigaya RE-043 Shibaura Island Bloom Tower RE-044 Castalia Hatsudai RE-045 Castalia Hatsudai II RE-046 Castalia Ebisu RE-047 RE-048 Shinjuku Ward, Tokyo 940 0.1% 1,546.34 100.0% Minato Ward, Tokyo 7,580 1.0% 16,849.50 98.4% Shibuya Ward, Tokyo 2,030 0.3% 3,077.05 97.2% Shibuya Ward, Tokyo 1,900 0.3% 2,339.42 100.0% Shibuya Ward, Tokyo 1,420 0.2% 1,659.71 100.0% Castalia Meguro Kamurozaka Castalia Toritsudaigaku Shinagawa Ward, Tokyo 4,500 0.6% 4,967.97 94.5% Meguro Ward, Tokyo 648 0.1% 863.70 96.9% RE-013 Castalia Nishi Azabu Kasumicho Minato Ward, Tokyo 2,143 0.3% 2,779.77 100.0% RE-049 Castalia Yukigaya Ota Ward, Tokyo 1,110 0.1% 1,542.30 98.4% RE-014 Castalia Ochanomizu Chiyoda Ward, Tokyo 1,770 0.2% 2,559.21 100.0% RE-050 Castalia Yutenji Meguro Ward, Tokyo 1,450 0.2% 1,380.35 100.0% RE-015 Castalia Sangubashi Shibuya Ward, Tokyo 1,393 0.2% 1,898.47 100.0% RE-051 Castalia Otsuka Toshima Ward, Tokyo 1,480 0.2% 1,871.70 95.5% RE-016 Castalia Suitengu Chuo Ward, Tokyo 1,279 0.2% RE-017 Castalia Suitengu II RE-018 Castalia Shintomicho RE-019 Castalia Shintomicho II Chuo Ward, Tokyo 1,138 0.2% 1,940.94 100.0% 1,858.34 100.0% RE-052 RE-053 Castalia Kikukawa Castalia Meguro Sumida Ward, Tokyo 817 0.1% 1,168.18 100.0% Meguro Ward, Tokyo 844 0.1% 1,414.73 95.8% Chuo Ward, Tokyo 932 0.1% 1,444.52 96.7% Chuo Ward, Tokyo 825 0.1% RE-020 Castalia Harajuku Shibuya Ward, Tokyo 887 0.1% RE-054 1,244.54 100.0% RE-055 1,225.26 100.0% RE-056 Castalia Otsuka II Toshima Ward, Tokyo 1,040 0.1% 1,784.50 97.7% Castalia Jiyugaoka Meguro Ward, Tokyo 1,200 0.2% 1,472.47 95.0% Castalia Mejiro Toshima Ward, Tokyo 988 0.1% 1,658.90 100.0% RE-021 RE-022 RE-023 Castalia Shinjuku 7 chome Castalia Yoyogi Uehara Castalia Sendagaya Shibuya Ward, Tokyo 608 0.1% 811.95 100.0% Shibuya Ward, Tokyo 555 0.1% Shinjuku Ward, Tokyo 464 0.1% RE-024 Castalia Ningyocho Chuo Ward, Tokyo 947 0.1% RE-025 Castalia Ningyocho II Chuo Ward, Tokyo 1,070 0.1% RE-026 Castalia Shin-Ochanomizu Chiyoda Ward, Tokyo 914 0.1% 803.03 100.0% 957.60 100.0% 1,747.90 97.7% 1,826.80 100.0% 1,308.38 100.0% RE-027 Castalia Higashi Nihonbashi II Chuo Ward, Tokyo 1,370 0.2% RE-030 RE-028 Castalia Jinbocho RE-029 Castalia Shintomicho III Castalia Shinjuku Gyoen RE-031 Castalia Takanawadai Chiyoda Ward, Tokyo 1,160 0.2% Chuo Ward, Tokyo 675 0.1% Shinjuku Ward, Tokyo 2,720 0.4% Minato Ward, Tokyo 860 0.1% RE-032 Castalia Higashi Nihonbashi III Chuo Ward, Tokyo 666 0.1% RE-033 Castalia Shinjuku Gyoen II Shinjuku Ward, Tokyo 486 0.1% 1,105.20 100.0% 668.79 100.0% RE-034 Castalia Shintomicho IV Chuo Ward, Tokyo 400 0.1% RE-035 Castalia Takanawadai II Minato Ward, Tokyo 1,190 RE-036 Castalia Minami Azabu Minato Ward, Tokyo 642 0.2% 0.1% 681.00 95.0% 1,567.84 100.0% 882.67 100.0% RE-057 Castalia Ikebukuro RE-058 Castalia Kaname-cho RE-059 RE-060 RE-061 RE-062 2,117.46 100.0% RE-063 1,628.80 100.0% RE-064 972.51 97.7% RE-065 3,594.16 100.0% RE-066 1,147.44 100.0% RE-067 RE-068 Castalia Asakusabashi RE-069 Castalia Iriya RE-070 Castalia Kita Ueno RE-071 Castalia Morishita II RE-072 Castalia Minowa Toshima Ward, Tokyo 2,570 0.3% 3,644.35 100.0% Toshima Ward, Tokyo 1,140 0.2% 1,624.06 98.6% Castalia Tower Shinagawa Seaside Castalia Yakumo Castalia Togoshiekimae Castalia Honjo Azumabashi Castalia Kitazawa Shinagawa Ward, Tokyo Meguro Ward, Tokyo Shinagawa Ward, Tokyo 7,380 1.0% 12,732.35 97.5% 857 0.1% 1,276.91 100.0% 1,560 0.2% 2,014.12 100.0% Sumida Ward, Tokyo 996 0.1% 2,255.88 94.3% Setagaya Ward, Tokyo 742 0.1% 1,220.16 93.3% Castalia Monzennakacho Castalia Kamiikedai Castalia Morishita Koto Ward, Tokyo 503 0.1% 887.94 100.0% Ota Ward, Tokyo 198 0.0% 414.45 100.0% Koto Ward, Tokyo 832 0.1% 1,383.90 100.0% Castalia Wakabayashikoen Setagaya Ward, Tokyo 776 0.1% 1,425.43 100.0% Taito Ward, Tokyo 792 0.1% 1,537.84 94.7% Taito Ward, Tokyo 546 0.1% 1,415.15 100.0% Taito Ward, Tokyo 2,641 0.4% 4,197.66 98.4% Koto Ward, Tokyo 686 0.1% 1,275.60 100.0% Taito Ward, Tokyo 1,430 0.2% 2,406.41 97.9% 46#48Portfolio List (3) Daiwa House REIT Investment Corporation Acquisition Property number Property name Location price Investment ratio Leasable Occupan (mil yen) area (m²) RE-073 Castalia Oyamadai Setagaya Ward, Tokyo 533 0.1% RE-074 Castalia Nakano Nakano Ward, Tokyo 1,060 0.1% RE-075 Castalia Yoga Setagaya Ward, Tokyo 923 0.1% RE-076 Castalia Sumiyoshi Koto Ward, Tokyo 948 0.1% RE-077 Castalia Monzennakacho II Koto Ward, Tokyo 2,160 0.3% RE-078 Castalia Oshiage RE-079 Castalia Kuramae RE-080 Castalia Nakanobu Sumida Ward, Tokyo 1,100 0.1% Taito Ward, Tokyo 1,260 0.2% Shinagawa Ward, Tokyo 1,790 0.2% RE-081 Royal Parks Toyosu Koto Ward, Tokyo 7,360 1.0% RE-082 Castalia Togoshi Shinagawa Ward, Tokyo 1,770 0.2% cy rate (Note) 857.32 94.2% RE-116 1,613.86 100.0% RE-117 1,472.38 97.2% 1,362.60 98.1% 3,038.98 100.0% 1,785.24 100.0% 1,994.93 100.0% 2,421.82 92.1% 18,112.03 100.0% 2,629.59 99.1% Property number Property name Location Acquisition price Investment ratio Leasable area (m²) (mil yen) Occupan cy rate (Note) RE-083 Castalia Ooimachi Shinagawa Ward, Tokyo 1,181 0.2% RE-084 Castalia Omori Ota Ward, Tokyo 1,500 0.2% 2,046.36 96.8% Castalia Sakaisuji Honmachi Castalia Shin-Umeda RE-118 Castalia Abeno RE-119 Castalia Sakae RE-121 Castalia Maruyama Urasando RE-122 Castalia Maruyama Omotesando RE-123 Castalia Higashi Hie RE-124 Castalia Tower Nagahoribashi RE-125 Castalia Sannomiya RE-126 Castalia Kotodaikoen 1,413.75 100.0% RE-127 RE-128 Osaka City, Osaka 1,490 0.2% 3,471.39 96.8% Osaka City, Osaka 1,376 0.2% 3,279.90 95.8% Osaka City, Osaka 4,368 0.6% 10,920.75 100.0% Nagoya City, Aichi 1,010 0.1% 2,836.00 96.4% Sapporo City, Hokkaido 411 0.1% 1,522.89 95.4% Sapporo City, Hokkaido 1,740 0.2% 6,100.31 90.7% Fukuoka City, Fukuoka 960 0.1% 3,061.60 96.8% Osaka City, Osaka 3,400 0.5% 8,747.40 98.2% Kobe City, Hyogo 1,230 0.2% 3,071.60 99.1% Sendai City, Miyagi 481 0.1% 1,684.10 97.6% Castalia Ichibancho Sendai City, Miyagi 783 0.1% 2,800.32 100.0% RE-085 Castalia Mishuku Setagaya Ward, Tokyo 1,900 0.3% 2,640.86 94.8% RE-129 RE-086 Castalia Arakawa Arakawa Ward, Tokyo 1,660 0.2% 3,797.92 96.8% RE-130 Castalia Omachi Castalia Uemachidai Castalia Tower Higobashi Sendai City, Miyagi 656 0.1% 2,149.08 97.2% Osaka City, Osaka 2,190 0.3% 5,415.39 98.6% Osaka City, Osaka 2,670 0.4% 6,230.20 95.6% RE-087 Castalia Omori II Ota Ward, Tokyo 2,370 0.3% 2,818.70 97.8% RE-088 Castalia Nakameguro Meguro Ward, Tokyo 3,800 0.5% 3,166.71 98.4% RE-089 Castalia Meguro Chojyamaru RE-090 Castalia Meguro Takaban RE-091 Castalia Omori III Shinagawa Ward, Tokyo 2,030 0.3% 2,123.77 98.8% Meguro Ward, Tokyo 1,750 0.2% 1,961.52 96.8% Shinagawa Ward, Tokyo 1,520 0.2% RE-131 Big Tower Minami Sanjo RE-132 RE-133 Castalia Meieki Minami RE-134 Castalia Yakuin 2,004.80 98.7% RE-135 Castalia Mibu Sapporo City, Hokkaido 1,740 0.2% 8,661.19 94.6% Castalia Fushimi Nagoya City, Aichi 2,260 0.3% 7,022.69 96.5% Nagoya City, Aichi 720 0.1% 1,822.10 95.9% Fukuoka City, Fukuoka 930 0.1% 2,784.83 99.2% Koyto City, Kyoto 1,193 0.2% 2,828.39 96.3% RE-093 RE-094 Royal Parks SEASIR Castalia Meguro Tairamachi Meguro Ward, Tokyo 1,165 0.2% Adachi Ward, Tokyo 4,350 0.6% 1,278.52 95.2% 17,269.74 100.0% RE-136 RE-137 RE-095 Castalia Honkomagome Bunkyo Ward, Tokyo 1,520 0.2% 2,224.41 100.0% RE-138 RE-096 Cosmo Heim Musashikosugi Kawasaki City, Kanagawa 1,674 0.2% 4,208.83 100.0% RE-139 Castalia Tsutsujigaoka Castalia Ohori Bay Tower Royal Parks Namba Castalia Shigahondori Sendai City, Miyagi 1,208 0.2% 4,471.11 99.0% Fukuoka City, Fukuoka 2,910 0.4% 11,089.75 51.8% Osaka City, Osaka 2,830 0.4% 10,354.15 100.0% Nagoya City, Aichi 1,730 0.2% 5,086.69 97.2% Yokohama City, RE-097 Castalia Tsurumi 666 0.1% 1,452.09 97.0% RE-140 Castalia Kyoto Nishioji Kyoto City, Kyoto 973 0.1% 2,035.37 100.0% Kanagawa RE-098 Castalia Funabashi Funabashi City, Chiba 704 0.1% RE-099 Castalia Nishi Funabashi Funabashi City, Chiba 783 0.1% 1,552.01 95.5% 1,597.32 100.0% Yokohama City, RE-141 RE-142 RE-143 Castalia Ningyocho III Chuo Ward, Tokyo 2,000 0.3% 2,897.06 100.0% Royal Parks Umejima Adachi Ward, Tokyo 2,020 0.3% 6,828.78 100.0% Castalia Shinsakae II Nagoya City, Aichi 1,800 0.2% 4,425.46 100.0% RE-105 Castalia Nogeyama 325 0.0% 744.90 100.0% Kanagawa RE-106 Castalia Ichikawa Ichikawa City, Chiba 461 0.1% 876.89 100.0% RE-107 RE-108 Royal Parks Hanakoganei Castalia Musashikosugi Kodaira City, Tokyo 5,300 0.7% 18,153.57 100.0% Kawasaki City, Kanagawa 1,680 0.2% 2,179.80 100.0% RE-109 Royal Parks Wakabadai Inagi City, Tokyo 4,360 0.6% 21,367.93 100.0% RE-110 Pacific Royal Court Minatomirai Urban Tower Yokohama City, 9,100 1.2% 26,294.49 100.0% Kanagawa Yokohama City, RE-111 L-Place Shinkoyasu 1,720 0.2% 3,009.74 100.0% Kanagawa RE-112 Royal Parks Musashikosugi Kawasaki City, Kanagawa 1,060 0.1% 3,808.97 100.0% 47#49Portfolio List (4) Daiwa House REIT Investment Corporation Acquisition Occupan Property number Investment Leasable Property name Location price ratio (mil yen) area (m²) RM-001 ACROSSMALL Shinkamagaya Kamagaya City, Chiba 7,770 1.0% RM-002 FOLEO Hirakata RM-003 QiZ GATE URAWA Hirakata City, Osaka 4,580 0.6% cy rate (Note) 41,742.84 100.0% 16,390.96 92.8% Asset class Number of properties Acquisition price Investment ratio Leasable (mil yen) area (m²) Occupan cy rate (Note) Saitama City, Saitama 4,270 0.6% 9,720.49 100.0% Logistics Properties Residential Properties Retail Properties 67 properties 385,149 133 properties 21 properties RM-004 UNICUS Takasaki Takasaki City, Gunma 3,000 0.4% 9,277.08 100.0% Hotel Properties 3 properties 246,424 95,330 10,770 RM-005 ACROSSPLAZA Miyoshi (Land) Iruma District, Saitama 3,740 0.5% 24,018.00 100.0% RM-006 DREAM TOWN ALI Aomori City, Aomori 8,100 1.1% 22,196.81 100.0% Other Assets Portfolio Total 5 properties 12,860 229 properties 750,533 51.3% 1,795,242.63 100.0% 32.8% 472,121.87 97.4% 12.7% 450,897.55 99.7% 1.4% 18,174.96 100.0% 1.7% 25,969.15 100.0% 100.0% 2,762,406.15 99.5% RR-001 RM-007 ASOBOX (Land) RM-008 FOLEO Ome Imai RM-009 FOLEO Otsu Ichiriyama RM-010 FOLEO Hakata RM-011 RM-012 iias Tsukuba LIFE Sagamihara Wakamatsu RR-002 FOLEO Sendai Miyanomori Kitakyushu City, Fukuoka 1,600 0.2% 11,207.90 100.0% As of April 10, 2019 Ome City, Tokyo 3,800 0.5% 8,637.91 100.0% (Note) Occupancy rate as of February 28, 2019 is indicated. Otsu City, Shiga 8,100 1.1% 62,917.73 100.0% Fukuoka City, Fukuoka 3,200 0.4% 23,230.77 100.0% ACROSSMALL Semboku (Land) Sakai City, Osaka 3,250 0.4% 30,824.72 100.0% Tsukuba City, Ibaraki 10,320 1.4% 41,670.12 100.0% Monthly Occupancy Rate Sagamihara City, 1,670 0.2% 2,973.44 100.0% Kanagawa Sendai City, Miyagi 6,960 0.9% 19,845.72 100.0% 100% RR-003 RR-004 ACROSSPLAZA Inazawa (Land) Sports Depo and GOLF5 Kokurahigashi IC Store Inazawa City, Aichi 2,390 0.3% 31,981.70 100.0% Kitakyushu City, Fukuoka 2,230 0.3% 8,899.89 100.0% 99% RR-005 Hiratsuka Retail Property (Land) Hiratsuka City, Kanagawa 5,620 0.7% 28,002.92 100.0% RR-006 Royal Home Center Morinomiya (Land) Osaka City, Osaka 4,500 0.6% 6,669.74 100.0% 98% Aoyama Tailor Bunkyo Sengoku RR-007 Bunkyo Ward, Tokyo 750 0.1% 1,066.95 100.0% Ekimae Store RR-008 FOLEO Shobu Kuki City, Saitama 5,000 0.7% 19,014.17 100.0% 97% RU-001 COMBOX310 Mito City, Ibaraki 4,480 0.6% 30,517.69 100.0% HO-001 Daiwa Roynet Hotel Yokohama Kannai Yokohama City, 4,800 0.6% 7,932.37 100.0% Kanagawa 96% HO-002 Super Hotel JR Nara Station Sanjo Street Nara City, Nara 1,470 0.2% 2,637.18 100.0% 18/9 18/10 18/11 18/12 19/1 19/2 Daiwa Roynet Hotel Nagoya HO-003 Nagoya City, Aichi 4,500 0.6% 7,605.41 100.0% Shinkansenguchi OT-001 Urban Living Inage Chiba City, Chiba 930 0.1% 4,177.52 100.0% Portfolio OT-002 Aburatsubo Marina HILLS Miura City, Kanagawa 1,100 0.1% 3,901.14 100.0% -Retail -Logistics Hotel Residential Other Naha Shin-Toshin Center Building OT-003 (Daiwa Roynet Hotel Naha-Omoromachi) OT-004 Sharp Hiroshima Building Nursery Room Berry Bear Omori OT-005 Nishi Welcia Ota Omori Nisi Store Naha City, Okinawa 7,600 1.0% 13,480.00 100.0% Hiroshima City, Hiroshima 1,850 0.2% 3,064.89 100.0% Ota Ward, Tokyo 1,380 0.2% 1,345.60 100.0% 48#50Rent Revision Schedule of Logistics Properties (1) Property number Property name Logistics Properties LB-001 D Project Machida LB-002 D Project Hachioji LB-002 D Project Hachioji LB-003 D Project Aikawa-Machi LB-004 D Project Shin-Misato LB-005 D Project Urayasu I LB-006 D Project Urayasu II LB-007 D Project Akanehama LB-008 D Project Noda LB-009 D Project Inuyama Tenant Hitachi Capital Corporation Mitsubishi Shokuhin Co., Ltd. Tokyo Logistics Factory CO. LTD Toward Co., Ltd. Asahi Security Co., Ltd. Nakano Shokai Co., Ltd. Hitachi Capital Corporation Oisix ra daichi Inc. Mitsubishi Shokuhin Co., Ltd. Takihyo Co., Ltd. LB-009 D Project Inuyama (Additional acquisition) Takihyo Co., Ltd. LB-010 D Project Gifu LB-011 D Project Neyagawa LB-012 D Project Sapporo Minami LB-013 LB-014 D Project Morioka D Project Sendai Minami LB-015 D Project Tsuchiura LB-016 D Project Gotenba LB-017 D Project Nishi-Hiroshima A LB-017 D Project Nishi-Hiroshima B LB-018 D Project Fukuoka Umi A LB-018 D Project Fukuoka Umi B LB-018 D Project Fukuoka Umi C LB-018 D Project Fukuoka Umi D LB-019 D Project Tosu (Existing building) LB-019 D Project Tosu (Extended building) LB-020 LB-021 D Project Kuki I D Project Kuki II LB-022 D Project Kawagoe | LB-023 D Project Kawagoe II LB-024 DPL Inuyama LB-025 D Project Fukuoka Hakozaki LB-026 D Project Kuki III LB-027 D Project Kuki IV LB-028 D Project Kuki V GOTSU Co., Ltd. NH Foods, Ltd. Mitsubishi Shokuhin Co., Ltd. Mitsubishi Shokuhin Co., Ltd. Mitsubishi Shokuhin Co., Ltd. Yamato Logistics Co., Ltd. HOKKOH Transportation, Inc. UCC FOODS CO., LTD. HOKKOH Transportation, Inc. Nippon Express Co., Ltd CREATE CORPORATION Fuji Logitech Co., Ltd. Japan Beverage Holdings Inc. NH Foods, Ltd. NH Foods, Ltd. TRANCOM Co., Ltd. Seven & i Holdings Co., Ltd. Daiwa Logistics Co., Ltd. Daiwa Logistics Co., Ltd. Sagawa Global Logistics Co., Ltd. Nakano Shokai Co., Ltd. S.D.Logi CO., LTD. Chuo Bussan Corporation Hitachi Transport System, Ltd. Daiwa House REIT Investment Corporation 2019 2020 2021 2022 2023 2024 Rent revision Expiry Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Expiry Expiry Expiry No revision 2024/2/27 2027/2/28 Not disclosed 2024/2/27 2029/2/28 Not disclosed 2032/7/31 2019/5/1 2029/4/30 No revision 2026/2/28 2020/10/11 Not disclosed 2027/5/31 2025/10/10 2022/10/1 Not disclosed 2020/1/1 2022/4/1 2029/12/31 2032/3/31 2024/3/22 2021/8/1 Not disclosed Not disclosed No revision 2021/4/1 2021/4/1 Not disclosed Not disclosed 2029/4/14 2024/1/15 2029/1/14 - 2019/12/25 2023/1/31 2023/11/1 2028/10/31 No revision No revision 2021/1/20 2022/4/15 2022/4/1 2021/5/31 2026/8/31 2021/4/1 Not disclosed No revision Not disclosed 2021/10/5 2031/10/4 Expiry 2023/6/21 2023/6/30 2021/5/1 2026/4/30 2022/9/3 2027/9/2 2023/10/1 2028/9/30 No revision 2032/9/30 2023/6/28 2033/6/30 No revision Expiry 2029/6/30 2022/6/30 49#51Rent Revision Schedule of Logistics Properties (2) Property name Property number Logistics Properties LB-029 D Project Kuki VI LB-030 D Project Yashio LB-030 D Project Yashio LB-031 D Project Nishiyodogawa LB-032 D Project Matsudo LB-033 D Project Hibiki Nada LB-034 D Project Morioka II LB-035 D Project Kawagoe III D Project Kazo LB-036 LB-037 D Project Urayasu III LB-038 D Project Tomisato D Project Kyotanabe D Project Sendai Izumi LB-039 LB-040 LB-041 D Project Oyama Tenant Ryutsu Service Co., Ltd. VANTEC CORPORATION Asahi Logistics Corp. Daiwa House REIT Investment Corporation 2019 2020 2021 2022 2023 Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. 2024 Aug. Feb. Rent revision Expiry Sagawa Global Logistics Co., Ltd. Tohto CO-OP Expiry 2023/8/9 2022/8/1 2024/2/9 2031/7/31 2022/8/1 2031/7/31 2021/4/15 2026/8/15 2020/4/9 2031/4/30 No revision 2021/9/30 2035/10/31 2024/4/1 2024/6/30 2020/3/1 2025/2/28 2022/6/1 2025/8/31 No revision 2026/1/31 2022/9/28 2032/10/31 Not disclosed Not disclosed Nippon Express Co., Ltd Nichirei Logistics Group Inc. Hitachi Transport System Kanto Co., Ltd. Itochu Logistics Corp. Daiwa Logistics Co., Ltd. Tokyo Nohin Daiko Co., Ltd. | Hutech norin Co., Ltd. Mitsubishi Shokuhin Co., Ltd. Expiry LB-042 D Project Sano LB-043 D Project Tatebayashi LB-044 D Project Kakegawa LB-045 D Project Hiroshima Seifu LB-046 D Project Tosu II LB-047 D Project Kawagoe IV LB-048 D Project Kuki VII LB-049 D Project Chibakita LB-050 D Project Matsudo II LB-051 D Project Tomisato II LB-052 D Project Osaka Hirabayashi LB-053 D Project Sendai Izumi III LB-054 D Project Kaminokawa LB-055 D Project Fuji LB-056 D Project Tosu III LB-057 D Project Kitahachioji | LB-058 D Project Kitahachioji II LB-059 D Project Kitahachioji III LB-059 D Project Kitahachioji III LB-060 D Project Itabashi Shingashi Mitsubishi Shokuhin Co., Ltd. Toryusha Co., Ltd. Hitachi Transport System Kanto Co., Ltd. Hitachi Transport System Central Japan Co., Ltd. MITSUI FOODS Co., Ltd. Marukyo Transportation Co., Ltd. Daiwa Logistics Co., Ltd. Nichirei Logistics Group Inc. Hitachi Transport System Metropolitan Co., Ltd. Mitsubishi Shokuhin Co., Ltd. Tokyo Nohin Daiko Co., Ltd. Itochu-Shokuhin Co., Ltd. Kokubu Group Corp. Hitachi Transport System Kanto Co., Ltd. Hitachi Transport Central Japan Co., Ltd. Not disclosed Sanritsu Corporation Hutech norin Co., Ltd. Mitsubishi Shokuhin Co., Ltd. Sanritsu Corporation Kokubu Group Corp. Expiry 2024/4/1 2020/3/1 No revision 2020/9/1 2019/8/1 Not disclosed 2021/2/1 Not disclosed No revision Not disclosed No revision Not disclosed 2029/6/30 2030/8/31 2034/7/31 Not disclosed 2024/1/2 2026/1/31 Not disclosed 2026/6/30 Not disclosed 2027/2/28 2030/6/29 Not disclosed Not disclosed Not disclosed Not disclosed 2023/10/1 2033/9/30 Not disclosed Not disclosed 2021/4/1 2022/2/1 2026/3/31 2032/1/31 Not disclosed Not disclosed Not disclosed Not disclosed Not disclosed Not disclosed 50#52Rent Revision Schedule of Logistics Properties (3) Property number Property name Logistics Properties LB-061 D Project Sagamihara LB-062 D Project Kuki III LB-063 D Project Yokkaichi LB-064 D Project Ibaraki Ishioka LM-001 DPL Misato Tenant Daiwa Logistics Co., Ltd. ESCO CO., LTD. Kintetsu Logistics Systems, Inc. Kokubu Group Corp. Daiwa House REIT Investment Corporation 2019 2020 2021 2022 2023 2024 Rent revision Expiry Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. LM-001 DPL Misato LM-001 DPL Misato LM-001 DPL Misato LM-002 DPL Fukuoka Kasuya LM-002 DPL Fukuoka Kasuya LM-002 DPL Fukuoka Kasuya LM-002 DPL Fukuoka Kasuya LM-002 DPL Fukuoka Kasuya LM-002 DPL Fukuoka Kasuya LM-003 DPL Kitakyushu LM-003 DPL Kitakyushu LM-003 DPL Kitakyushu Kokubu Group Corp. ARATA CORPORATION Kato Sangyo Co., Ltd. Nitori Co., Ltd. UNIQLO CO., LTD. Muroo Co., Ltd. Nest Logistics Mitsui & Co. Global Logistics, Ltd. MK LOGI Co., Ltd. NOK Corporation YAMAE HISANO Co., Ltd. KYUSO COMPANY LTD. ASAHI SHOKUHIN Co., Ltd. Rent Revision / Lease Contract Renewal of Logistics Properties Period ending Aug. 2019 Rent revision - 6 tenants → 3 tenants revised rent on equal terms → 1 tenant revised rent with rent decrease Expiry Period ending Feb. 2020 2 tenants Rent revision - Contract expiry None Expiry 2020/4/1 No revision 2035/3/31 2036/9/30 Not disclosed Not disclosed Not disclosed Not disclosed 2023/10/15 No revision 2033/11/14 2020/12/31 Not disclosed Not disclosed No revision 2023/10/31 Not disclosed Not disclosed Not disclosed Not disclosed Not disclosed Not disclosed Not disclosed Not disclosed Not disclosed Not disclosed Not disclosed Not disclosed Not disclosed Not disclosed Not disclosed Not disclosed Not disclosed Not disclosed Contract expiry None As of April 19, 2019 51#53Rent Revision Schedule of Retail Properties Daiwa House REIT Investment Corporation Property number Rent 2019 2020 2021 2022 2023 Property name Tenant type Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. 2024 Feb. Rent revision Expiry Retail Properties RM-002 FOLEO Hirakata RM-001 ACROSSMALL Shinkamagaya Daiwa Information Service Co., Ltd. Fixed 2019/12/12 2027/11/30 Core tenant A Fixed 2022/1/1 2026/12/8 RM-002 FOLEO Hirakata Core tenant B Fixed 2022/1/1 2026/12/14 RM-003 QIZ GATE URAWA RM-003 QIZ GATE URAWA RM-004 UNICUS Takasaki RM-005 ACROSSPLAZA Miyoshi (Land) RM-006 DREAM TOWN ALI RM-006 DREAM TOWN ALI RM-006 DREAM TOWN ALI RM-007 ASOBOX (Land) RM-008 FOLEO Ome Imai RM-008 FOLEO Ome Imai RM-009 FOLEO Otsu Ichiriyama RM-010 FOLEO Hakata RM-011 ACROSSMALL Semboku (Land) RM-012 iias Tsukuba RR-001 LIFE Sagamihara Wakamatsu RR-002 FOLEO Sendai Miyanomori RR-003 ACROSSPLAZA Inazawa (Land) Sports Depo and GOLF5 Kokurahigashi IC Store RR-004 RR-005 Hiratsuka Retail Property (Land) Royal Home Center Morinomiya (Land) RR-006 P&D Consulting Co., Ltd. Core tenant A Fixed No revision 2027/5/31 Core tenant B Fixed 2020/3/27 2028/3/26 Fixed 2020/12/9 2028/11/19 Daiwa Information Service Co., Ltd. Fixed 2019/10/1 2034/9/29 Fixed + Core tenant A No revision Variable Core tenant B Fixed No revision 2027/12/21 2027/11/30 Fixed + Core tenant C Variable Expiry No revision 2021/6/30 Daiwa Information Service Co., Ltd. Fixed 2019/9/1 2037/8/31 Belc CO., LTD. Fixed Not disclosed Not disclosed Yamada Denki Co., Ltd. Fixed Not disclosed 2037/6/8 Daiwa Information Service Co., Ltd. Fixed 2028/4/2 2038/4/30 Daiwa Information Service Co., Ltd. Fixed 2028/4/2 2038/4/30 Daiwa Information Service Co., Ltd. Daiwa House Industry Co., Ltd. LIFE CORPORATION Fixed Fixed 2019/9/1 2029/4/5 2038/12/31 2039/4/30 Fixed 2019/5/22 2027/5/21 Daiwa House Industry Co., Ltd. Fixed Expiry No revision 2022/11/30 Daiwa Information Service Co., Ltd. Fixed No revision 2034/2/24 Alpen Co., Ltd. Fixed Not disclosed 2027/11/28 Not Not disclosed Not disclosed Not disclosed disclosed Royal Home Center Co., Ltd. Fixed 2019/9/1 2048/3/31 RR-007 Aoyama Tailor Bunkyo Sengoku Ekimae Store Aoyama Trading Co., Ltd. Fixed Not disclosed Not disclosed RR-008 FOLEO Shobu RU-001 COMBOX310 Daiwa House Industry Co., Ltd. Daiwa Royal Co., Ltd. Fixed 2029/4/5 2039/4/30 Fixed 2028/12/31 // Rent Revision / Lease Contract Renewal of Retail Properties Period ending Aug. 2019 Period ending Feb. 2020 Rent revision - 1 tenant Contract expiry None Rent revision - 5 tenants Contract expiry - None As of April 19, 2019 52#54Appraisal Value Changes Comparison (1) O Daiwa House REIT Investment Corporation (mil yen) (%) Appraisal value (Note 1) Aug. 2018 Feb. 2019 Change Property number Property name Acquisition Book value Unrealized price Feb. 2019 gain (loss) Aug. 2018 Feb. 2019 Change Direct cap DCF Direct cap DCF Direct cap DCF Appraiser (Note 2) CR DR TCR CR DR TCR CR DR TCR LB-001 D Project Machida 9,200 9,251 588 9,630 9,840 210 4.4 4.3/4.4 4.6 4.3 4.2/4.3 4.5 -0.1 -0.1 -0.1 Tanizawa LB-002 D Project Hachioji 15,400 15,243 1,756 16,600 17,000 400 4.3 4.2/4.3 4.5 4.2 4.2 4.4 -0.1 -0.1 -0.1 Tanizawa LB-003 D Project Aikawa-Machi 3,390 3,790 619 4,410 4,410 0 4.6 4.6 4.8 4.6 4.6 4.8 0.0 0.0 0.0 Tanizawa LB-004 D Project Shin-Misato 5,710 5,605 144 5,830 5,750 -80 5.1 5.1 5.3 4.8 4.8/4.9 5.0 -0.3 -0.3 -0.3 Tanizawa LB-005 D Project Urayasu | 9,280 9,145 814 9,720 9,960 240 4.0 4.1 4.2 3.9 4.0 4.1 -0.1 -0.1 -0.1 Tanizawa LB-006 D Project Urayasu II 26,000 25,594 2,505 27,200 28,100 900 3.9 3.9/4.0 4.1 3.8 3.8/3.9 4.0 -0.1 -0.1 -0.1 Tanizawa LB-007 D Project Akanehama 2,950 2,888 181 3,010 3,070 60 4.5 4.6 4.7 4.4 4.5 4.6 -0.1 -0.1 -0.1 Tanizawa LB-008 D Project Noda LB-009 D Project Inuyama 6,210 6,074 475 6,560 6,550 -10 4.6 4.5/4.6 4.8 4.6 4.5/4.6 4.8 0.0 0.0 0.0 Tanizawa 10,790 10,521 1,258 11,450 11,780 330 4.8 4.7/4.8 5.0 4.7 4.6/4.7 4.9 -0.1 -0.1 -0.1 Tanizawa LB-010 D Project Gifu 1,100 1,075 94 1,150 1,170 20 5.4 5.3/5.4 5.6 5.3 5.2/5.3 5.5 -0.1 -0.1 -0.1 Tanizawa LB-011 D Project Neyagawa 5,980 5,858 461 6,320 6,320 0 4.5 4.5 4.7 4.5 4.5/4.6 4.7 0.0 0.0 0.0 Tanizawa LB-012 D Project Sapporo Minami 818 790 71 849 862 13 6.0 5.9 6.2 5.9 5.8 6.1 -0.1 -0.1 -0.1 Tanizawa LB-013 D Project Morioka 1,200 1,154 55 1,210 1,210 0 6.0 5.9 6.2 6.0 5.9 6.2 0.0 0.0 0.0 Tanizawa LB-014 LB-015 D Project Tsuchiura D Project Sendai Minami 1,530 1,525 54 1,550 1,580 30 5.3 5.1/5.2 5.5 5.2 5.0/5.1 5.4 -0.1 -0.1 -0.1 Tanizawa 3,390 3,266 273 3,490 3,540 50 5.2 5.1 5.4 5.1 5.0/5.1 5.3 -0.1 -0.1 -0.1 Tanizawa LB-016 D Project Gotenba 1,140 1,115 24 1,150 1,140 -10 5.4 5.3 5.6 5.4 5.3/5.4 5.6 0.0 0.0 0.0 Tanizawa LB-017 D Project Nishi-Hiroshima 1,210 1,180 29 1,220 1,210 -10 5.4 5.4/5.5 5.6 5.4 5.4/5.5 5.6 0.0 0.0 0.0 Tanizawa 4.7/4.8 4.6/4.7 LB-018 D Project Fukuoka Umi 4,240 4,128 381 4,430 4,510 80 5.0 5.2 4.9 5.1 -0.1 -0.1 -0.1 Tanizawa 14.9 /4.8 LB-019 D Project Tosu 5,740 5,512 637 6,030 6,150 120 5.0 5.0/5.1 5.2 4.9 4.9/5.0 5.1 -0.1 -0.1 -0.1 Tanizawa LB-020 D Project Kuki I 3,900 3,802 347 4,180 4,150 -30 4.7 4.7/4.8 4.9 4.7 4.7/4.8 4.9 0.0 0.0 0.0 Tanizawa LB-021 D Project Kuki II 8,120 7,838 811 8,680 8,650 -30 4.7 4.7/4.8 4.9 4.7 4.7/4.8 4.9 0.0 0.0 0.0 Tanizawa LB-022 D Project Kawagoe I 3,530 3,450 399 3,770 3,850 80 4.7 4.7/4.8 4.9 4.6 4.6/4.7 4.8 -0.1 -0.1 -0.1 Tanizawa LB-023 D Project Kawagoe II 4,850 4,758 631 5,250 5,390 140 4.7 4.7/4.8 4.9 4.6 4.6/4.7 4.8 -0.1 -0.1 -0.1 Tanizawa LB-024 DPL Inuyama 3,940 3,830 389 4,150 4,220 70 4.8 4.7/4.8 5.0 4.7 4.6/4.7 4.9 -0.1 -0.1 -0.1 Tanizawa LB-025 D Project Fukuoka Hakozaki 4,340 4,222 407 4,610 4,630 20 4.7 4.6 4.9 4.6 4.5 4.8 -0.1 -0.1 -0.1 Tanizawa LB-026 D Project Kuki III 7,630 7,405 844 8,250 8,250 0 4.7 4.7/4.8 4.9 4.7 4.7/4.8 4.9 0.0 0.0 0.0 Tanizawa LB-027 D Project Kuki IV 5,520 5,372 537 5,900 5,910 10 4.7 4.7/4.8 4.9 4.7 4.7/4.8 4.9 0.0 0.0 0.0 Tanizawa LB-028 D Project Kuki V 8,280 8,088 821 8,920 8,910 -10 4.7 4.7/4.8 4.9 4.7 4.7/4.8 4.9 0.0 0.0 0.0 Tanizawa LB-029 D Project Kuki VI 5,140 5,002 507 5,510 5,510 0 4.7 4.7/4.8 4.9 4.7 4.7/4.8 4.9 0.0 0.0 0.0 Tanizawa LB-030 D Project Yashio 6,400 6,258 531 6,640 6,790 150 4.6 4.1 4.9 4.5 4.0 4.8 -0.1 -0.1 -0.1 JREI LB-031 D Project Nishiyodogawa 10,300 9,996 903 10,600 10,900 300 4.8 4.5 5.0 4.7 4.4 4.9 -0.1 -0.1 -0.1 JREI LB-032 D Project Matsudo 7,370 7,217 542 7,600 7,760 160 4.6 4.3 4.7 4.5 4.2 4.6 -0.1 -0.1 -0.1 JREI LB-033 D Project Hibiki Nada 2,080 2,004 165 2,130 2,170 40 5.8 5.7/5.9 6.0 5.7 5.6/5.8 5.9 -0.1 -0.1 -0.1 Tanizawa 53#55Appraisal Value Changes Comparison (2) Daiwa House REIT Investment Corporation (mil yen) (%) Appraisal value (Note 1) Aug. 2018 Feb. 2019 Change Property number Property name Acquisition Book value Unrealized price Feb. 2019 gain (loss) Aug. 2018 Feb. 2019 Change Direct cap DCF Direct cap DCF Direct cap DCF Appraiser (Note 2) CR DR TCR CR DR TCR CR DR TCR 5.7/5.8 5.7/5.8 LB-034 D Project Morioka II 1,280 1,249 80 1,330 1,330 0 6.0 6.2 6.0 6.2 0.0 0.0 0.0 Tanizawa /5.9 /5.9 LB-035 D Project Kawagoe III 7,200 7,089 740 7,660 7,830 170 4.6 4.6/4.7 4.8 4.5 4.5/4.6 4.7 -0.1 -0.1 -0.1 Tanizawa LB-036 D Project Kazo 3,300 3,249 210 3,460 3,460 0 4.8 4.8/4.9 5.0 4.8 4.8/4.9 5.0 0.0 0.0 0.0 Tanizawa 3.9/4.0 3.8/3.9 LB-037 D Project Urayasu III 8,500 8,512 1,247 9,520 9,760 240 4.0 4.2 3.9 4.1 -0.1 -0.1 -0.1 Tanizawa /4.1 /4.0 LB-038 D Project Tomisato 5,000 4,900 379 5,170 5,280 110 4.9 4.9/5.0 5.1 4.8 4.8/4.9 5.0 -0.1 -0.1 -0.1 Tanizawa LB-039 D Project Kyotanabe 3,520 3,494 215 3,640 3,710 70 5.6 5.2 5.9 5.5 5.1 5.8 -0.1 -0.1 -0.1 JREI LB-040 D Project Sendai Izumi 1,510 1,485 124 1,580 1,610 30 5.4 5.1 5.6 5.3 5.0 5.5 -0.1 -0.1 -0.1 JREI LB-041 D Project Oyama 2,000 1,965 74 2,040 2,040 0 5.5 5.6 5.7 5.5 5.6 5.7 0.0 0.0 0.0 Tanizawa LB-042 D Project Sano 1,780 1,744 55 1,790 1,800 10 5.5 5.5 5.7 5.5 5.5/5.6 5.7 0.0 0.0 0.0 Tanizawa LB-043 D Project Tatebayashi 3,100 3,041 168 3,220 3,210 -10 5.5 5.5 5.7 5.5 5.5 5.7 0.0 0.0 0.0 Tanizawa LB-044 D Project Kakegawa 6,000 5,936 193 6,140 6,130 -10 5.7 5.5 5.9 5.7 5.5 5.9 0.0 0.0 0.0 JREI LB-045 D Project Hiroshima Seifu 3,820 3,763 286 4,050 4,050 0 5.4 4.9 5.8 5.4 4.9 5.8 0.0 0.0 0.0 JREI LB-046 D Project Tosu II 1,700 1,667 222 1,860 1,890 30 5.1 5.1/5.2 5.3 5.0 5.0/5.1 5.2 -0.1 -0.1 -0.1 Tanizawa LB-047 D Project Kawagoe IV 5,600 5,589 340 5,830 5,930 100 4.7 4.7/4.8 4.9 4.6 4.6/4.7 4.8 -0.1 -0.1 -0.1 Tanizawa LB-048 LB-049 D Project Chibakita LB-050 D Project Kuki VII 1,040 1,042 67 1,100 1,110 10 4.8 4.8 5.0 4.8 4.8 5.0 0.0 0.0 0.0 Tanizawa 7,640 7,624 395 7,840 8,020 180 4.5 4.3 4.7 4.4 4.2 4.6 -0.1 -0.1 -0.1 Daiwa D Project Matsudo II 8,200 8,181 188 8,290 8,370 80 4.5 4.3 4.7 4.5 4.2 4.6 0.0 -0.1 -0.1 JREI LB-051 D Project Tomisato II 6,900 6,866 283 7,000 7,150 150 4.9 4.9/5.0 5.1 4.8 4.8/4.9 5.0 -0.1 -0.1 -0.1 Tanizawa LB-052 D Project Osaka Hirabayashi 3,600 3,728 621 4,370 4,350 -20 4.7 4.6/4.9 4.7 4.6/4.9 0.0 0.0 - Tanizawa LB-053 D Project Sendai Izumi II 7,300 7,249 290 7,390 7,540 150 5.3 5.1 5.5 5.2 5.0 5.4 -0.1 -0.1 -0.1 JREI LB-054 D Project Kaminokawa 7,900 7,859 190 8,050 8,050 0 5.5 5.5/5.6 5.7 5.5 5.5/5.6 5.7 0.0 0.0 0.0 Tanizawa LB-055 D Project Fuji 3,600 3,582 97 3,680 3,680 0 5.6 5.4 5.9 5.6 5.4 5.9 0.0 0.0 0.0 JREI LB-056 D Project Tosu III 9,200 9,141 238 9,380 9,380 0 5.1 5.0/5.2 5.3 5.1 5.0/5.2 5.3 0.0 0.0 0.0 Tanizawa LM-001 DPL Misato 16,831 16,691 1,108 17,800 17,800 0 4.1 4.1/4.2 4.3 4.1 4.1/4.2 4.3 0.0 0.0 0.0 Tanizawa LM-002 DPL Fukuoka Kaseya 13,300 13,261 38 13,300 13,300 0 4.6 4.4 4.8 4.6 4.4 4.8 0.0 0.0 0.0 JREI 5.5/5.6 5.4/5.5 LM-003 DPL Kitakyushu 3,510 3,506 73 3,560 3,580 20 5.6 5.8 5.5 5.7 -0.1 -0.1 -0.1 Tanizawa /5.7 /5.6 Logistics Properties Total 340,009 335,395 26,206 357,049 361,602 4,553 - - - - - - I - - RE-001 Qiz Ebisu 7,650 7,165 1,644 8,660 8,810 150 3.8 4.0 4.0 3.7 3.9 3.9 -0.1 -0.1 -0.1 Tanizawa Castalia Azabujuban RE-002 4,500 4,176 173 4,290 4,350 60 4.1 3.9 4.3 4.1 3.9 4.3 0.0 0.0 0.0 Chuo Shichimenzaka RE-003 Castalia Shibakoen 2,630 2,424 -114 2,230 2,310 80 4.2 4.3 4.4 4.1 4.2 4.3 -0.1 -0.1 -0.1 Tanizawa RE-004 Castalia Ginza 2,520 2,320 -60 2,230 2,260 30 4.1 4.2 4.3 4.1 4.1 4.3 0.0 -0.1 0.0 Tanizawa 54#56Appraisal Value Changes Comparison (3) O Daiwa House REIT Investment Corporation (mil yen) (%) Appraisal value (Note 1) Aug. 2018 Feb. 2019 Change Property number Acquisition Book value Unrealized Property name price Feb. 2019 gain (loss) Aug. 2018 Feb. 2019 Change Direct cap DCF Direct cap DCF Direct cap DCF Appraiser (Note 2) CR DR TCR CR DR TCR CR DR TCR RE-005 Castalia Hiroo RE-006 Castalia Nihonbashi 2,220 2,060 -130 1,880 1,930 50 4.0 4.1 4.2 3.9 4.0 4.1 -0.1 -0.1 -0.1 Tanizawa 1,200 1,052 137 1,170 1,190 20 4.2 4.3 4.4 4.2 4.2 4.4 0.0 -0.1 0.0 Tanizawa RE-007 Castalia Hacchobori 2,300 2,074 255 2,300 2,330 30 4.2 4.3 4.4 4.2 4.2 4.4 0.0 -0.1 0.0 Tanizawa RE-008 Castalia Azabujuban 2,910 2,760 -30 2,700 2,730 30 4.1 3.9 4.3 4.1 3.9 4.3 0.0 0.0 0.0 Chuo RE-009 Castalia Azabujuban II 2,690 2,528 31 2,510 2,560 50 4.0 3.8 4.2 4.0 3.8 4.2 0.0 0.0 0.0 Chuo RE-010 Castalia Shinjuku Natsumezaka 1,865 1,753 -123 1,620 1,630 10 4.2 4.0 4.4 4.2 4.0 4.4 0.0 0.0 0.0 Chuo RE-011 Castalia Ginza Il 1,800 1,656 103 1,740 1,760 20 4.1 4.2 4.3 4.1 4.1 4.3 0.0 -0.1 0.0 Tanizawa RE-012 Castalia Shibuya Sakuragaoka 1,400 1,327 -147 1,150 1,180 30 4.0 4.2 4.2 3.9 4.1 4.1. -0.1 -0.1 -0.1 Tanizawa RE-013 Castalia Nishi Azabu Kasumicho 2,143 2,331 148 2,380 2,480 100 4.1 4.2 4.3 4.0 4.1 4.2 -0.1 -0.1 -0.1 Tanizawa RE-014 Castalia Ochanomizu 1,770 1,689 560 2,190 2,250 60 4.2 4.0 4.4 4.1 3.9 4.3 -0.1 -0.1 -0.1 JREI RE-015 Castalia Sangubashi 1,393 1,479 50 1,480 1,530 50 4.2 4.4 4.4 4.1 4.3 4.3 -0.1 -0.1 -0.1 Tanizawa RE-016 Castalia Suitengu 1,279 1,217 322 1,480 1,540 60 4.3 4.3 4.5 4.2 4.2 4.4 -0.1 -0.1 -0.1 Tanizawa RE-017 Castalia Suitengu II 1,138 1,088 301 1,350 1,390 40 4.2 4.3 4.4 4.1 4.2 4.3 -0.1 -0.1 -0.1 Tanizawa RE-018 Castalia Shintomicho 932 901 218 1,090 1,120 30 4.3 4.3 4.5 4.2 4.2 4.4 -0.1 -0.1 -0.1 Tanizawa RE-019 Castalia Shintomicho II 825 807 180 963 988 25 4.3 4.3 4.5 4.2 4.2 4.4 -0.1 -0.1 -0.1 Tanizawa RE-020 Castalia Harajuku 887 854 115 945 970 25 4.0 3.8 4.2 3.9 3.7 4.1 -0.1 -0.1 -0.1 JREI RE-021 Castalia Yoyogi Uehara 608 653 86 720 740 20 4.1 3.9 4.3 4.0 3.8 4.2 -0.1 -0.1 -0.1 JREI RE-022 Castalia Sendagaya 555 553 100 636 654 18 4.1 3.9 4.3 4.0 3.8 4.2 -0.1 -0.1 -0.1 JREI RE-023 Castalia Shinjuku 7 chome 464 437 103 541 541 0 4.4 4.2 4.6 4.4 4.2 4.6 0.0 0.0 0.0 JREI RE-024 Castalia Ningyocho 947 885 404 1,230 1,290 60 4.2 4.0 4.4 4.1 3.9 4.3 -0.1 -0.1 -0.1 JREI RE-025 Castalia Ningyocho II 1,070 987 432 1,360 1,420 60 4.2 4.0 4.4 4.1 3.9 4.3 -0.1 -0.1 -0.1 JREI RE-026 Castalia Shin-Ochanomizu 914 848 241 1,090 1,090 0 4.1 3.9 4.3 4.1 3.9 4.3 0.0 0.0 0.0 JREI RE-027 Castalia Higashi Nihonbashi II 1,370 1,245 464 1,680 1,710 30 4.2 4.0 4.4 4.1 3.9 4.3 -0.1 -0.1 -0.1 JREI RE-028 Castalia Jinbocho 1,160 1,074 385 1,450 1,460 10 4.1 3.9 4.3 4.1 3.9 4.3 0.0 0.0 0.0 JREI RE-029 Castalia Shintomicho III 675 608 162 760 771 11 4.3 4.0 4.6 4.2 3.9 4.5 -0.1 -0.1 -0.1 JREI RE-030 Castalia Shinjuku Gyoen 2,720 2,590 729 3,240 3,320 80 4.2 4.4 4.4 4.1 4.3 4.3 -0.1 -0.1 -0.1 Tanizawa RE-031 Castalia Takanawadai 860 811 238 1,050 1,050 0 4.0 3.8 4.2 4.0 3.8 4.2 0.0 0.0 0.0 JREI RE-032 Castalia Higashi Nihonbashi III 666 603 226 810 830 20 4.2 4.0 4.4 4.1 3.9 4.3 -0.1 -0.1 -0.1 Daiwa RE-033 Castalia Shinjuku Gyoen II 486 469 80 537 550 13 4.2 4.4 4.4 4.1 4.3 4.3 -0.1 -0.1 -0.1 Tanizawa RE-034 Castalia Shintomicho IV 400 392 112 500 505 5 4.2 4.0 4.4 4.1 3.9 4.3 -0.1 -0.1 -0.1 Daiwa RE-035 Castalia Takanawadai II 1,190 1,147 232 1,370 1,380 10 4.0 3.8 4.2 4.0 3.8 4.2 0.0 0.0 0.0 JREI RE-036 Castalia Minami Azabu 642 605 104 697 710 13 4.1 3.9 4.3 4.0 3.8 4.2 -0.1 -0.1 -0.1 JREI 55#57Appraisal Value Changes Comparison (4) O Daiwa House REIT Investment Corporation (mil yen) (%) Appraisal value (Note 1) Aug. 2018 Feb. 2019 Change Property number Property name Acquisition Book value Unrealized price Feb. 2019 gain (loss) Aug. 2018 Feb. 2019 Change Direct cap DCF Direct cap DCF Direct cap DCF Appraiser (Note 2) CR DR TCR CR DR TCR CR DR TCR RE-037 Castalia Ginza III 2,880 2,712 357 3,050 3,070 20 4.1 4.2 4.3 4.1 4.1 4.3 0.0 -0.1 0.0 Tanizawa RE-038 Castalia Kayabacho 2,707 2,506 733 3,170 3,240 70 4.3 4.3 4.5 4.2 4.2 4.4 -0.1 -0.1 -0.1 Tanizawa RE-039 Castalia Takanawa 7,430 7,111 1,128 8,010 8,240 230 4.2 4.5 4.4 4.1 4.4 4.3 -0.1 -0.1 -0.1 Tanizawa RE-040 Castalia Higashi Nihonbashi 3,520 3,217 862 4,070 4,080 10 4.4 4.2 4.6 4.4 4.2 4.6 0.0 0.0 0.0 Chuo RE-041 Castalia Shinjuku 2,950 2,823 676 3,420 3,500 80 4.2 4.4 4.4 4.1 4.3 4.3 -0.1 -0.1 -0.1 Tanizawa RE-042 Castalia Ichigaya 940 863 486 1,340 1,350 10 4.3 4.1 4.5 4.3 4.1 4.5 0.0 0.0 0.0 Chuo RE-043 Shibaura Island Bloom Tower 7,580 6,656 2,693 9,170 9,350 180 - 3.9 6.0 3.9 5.9 0.0 -0.1 JREI RE-044 Castalia Hatsudai 2,030 1,953 436 2,360 2,390 30 4.2 4.0 4.4 4.1 3.9 4.3 -0.1 -0.1 -0.1 Daiwa RE-045 Castalia Hatsudai II 1,900 1,861 318 2,140 2,180 40 4.0 3.8 4.2 3.9 3.7 4.1 -0.1 -0.1 -0.1 Morii RE-046 Castalia Ebisu 1,420 1,401 238 1,590 1,640 50 3.9 3.7 4.1 3.8 3.6 4.0 -0.1 -0.1 -0.1 Morii RE-047 Castalia Meguro Kamurozaka 4,500 4,016 453 4,350 4,470 120 4.1 3.9 4.3 4.0 3.8 4.2 -0.1 -0.1 -0.1 Daiwa RE-048 Castalia Toritsudaigaku 648 583 -47 535 536 1 5.0 4.8 5.3 5.0 4.8 5.3 0.0 0.0 0.0 Chuo RE-049 Castalia Yukigaya 1,110 983 166 1,120 1,150 30 4.3 4.4 4.5 4.2 4.3 4.4 -0.1 -0.1 -0.1 Tanizawa RE-050 Castalia Yutenji RE-051 Castalia Otsuka RE-052 Castalia Kikukawa RE-053 Castalia Meguro 1,450 1,328 -8 1,310 1,320 10 4.1 3.9 4.3 4.1 3.9 4.3 0.0 0.0 0.0 Chuo 1,480 1,303 346 1,650 1,650 0 4.2 4.0 4.4 4.2 4.0 4.4 0.0 0.0 0.0 Chuo 817 713 95 790 809 19 4.4 4.5 4.6 4.3 4.4 4.5 -0.1 -0.1 -0.1 Tanizawa 844 862 207 1,050 1,070 20 4.3 4.0 4.5 4.2 3.9 4.4 -0.1 -0.1 -0.1 JREI RE-054 Castalia Otsuka II 1,040 972 317 1,260 1,290 30 4.2 4.0 4.4 4.2 4.0 4.4 0.0 0.0 0.0 JREI RE-055 Castalia Jiyugaoka 1,200 1,157 242 1,390 1,400 10 4.1 3.9 4.3 4.0 3.8 4.2 -0.1 -0.1 -0.1 JREI RE-056 Castalia Mejiro 988 924 175 1,090 1,100 10 4.5 4.3 4.7 4.5 4.3 4.7 0.0 0.0 0.0 Chuo RE-057 Castalia Ikebukuro 2,570 2,426 523 2,820 2,950 130 4.2 4.0 4.4 4.1 3.9 4.3 -0.1 -0.1 -0.1 Daiwa RE-058 Castalia Kaname-cho 1,140 1,049 230 1,250 1,280 30 4.3 4.5 4.5 4.2 4.4 4.4 -0.1 -0.1 -0.1 Tanizawa RE-059 Castalia Tower Shinagawa Seaside 7,380 6,725 2,404 8,920 9,130 210 4.3 4.3 4.5 4.2 4.2 4.4 -0.1 -0.1 -0.1 Tanizawa RE-060 Castalia Yakumo 857 824 -5 798 819 21 4.2 4.4 4.4 4.1 4.3 4.3 -0.1 -0.1 -0.1 Tanizawa RE-061 Castalia Togoshiekimae 1,560 1,454 595 2,000 2,050 50 4.3 4.1 4.5 4.2 4.0 4.4 -0.1 -0.1 -0.1 JREI RE-062 Castalia Honjo Azumabashi 996 982 247 1,190 1,230 40 4.5 4.6 4.7 4.4 4.5 4.6 -0.1 -0.1 -0.1 Tanizawa RE-063 Castalia Kitazawa 742 757 91 827 849 22 4.2 4.0 4.4 4.1 3.9 4.3 -0.1 -0.1 -0.1 JREI RE-064 Castalia Monzennakacho 503 473 129 588 603 15 4.5 4.6 4.7 4.4 4.5 4.6 -0.1 -0.1 -0.1 Tanizawa RE-065 Castalia Kamiikedai 198 179 42 217 222 5 4.9 4.5 5.1 4.8 4.4 5.0 -0.1 -0.1 -0.1 JREI RE-066 Castalia Morishita 832 792 257 1,040 1,050 10 4.2 4.0 4.4 4.2 4.0 4.4 0.0 0.0 0.0 JREI RE-067 Castalia Wakabayashikoen 776 740 123 850 864 14 4.2 4.0 4.4 4.1 3.9 4.3 -0.1 -0.1 -0.1 Daiwa RE-068 Castalia Asakusabashi 792 728 255 963 984 21 4.4 4.2 4.6 4.4 4.2 4.6 0.0 0.0 0.0 Chuo RE-069 Castalia Iriya 546 517 153 665 671 6 4.8 4.6 5.0 4.8 4.6 5.0 0.0 0.0 0.0 Chuo 56#58Appraisal Value Changes Comparison (5) O Daiwa House REIT Investment Corporation (mil yen) (%) Appraisal value (Note 1) Aug. 2018 Feb. 2019 Change Property number Property name Acquisition Book value Unrealized price Feb. 2019 gain (loss) Aug. 2018 Feb. 2019 Change Direct cap DCF Direct cap DCF Direct cap DCF Appraiser (Note 2) CR DR TCR CR DR TCR CR DR TCR RE-070 Castalia Kita Ueno 2,641 2,379 500 2,820 2,880 60 4.4 4.5 4.6 4.3 4.4 4.5 -0.1 -0.1 -0.1 Tanizawa RE-071 Castalia Morishita II 686 611 221 816 833 17 4.4 4.5 4.6 4.3 4.4 4.5 -0.1 -0.1 -0.1 Tanizawa RE-072 Castalia Minowa 1,430 1,288 291 1,560 1,580 20 4.4 4.5 4.6 4.3 4.4 4.5 -0.1 -0.1 -0.1 Tanizawa RE-073 Castalia Oyamadai 533 515 97 599 613 14 4.3 4.4 4.5 4.2 4.3 4.4 -0.1 -0.1 -0.1 Tanizawa RE-074 Castalia Nakano 1,060 965 314 1,250 1,280 30 4.2 4.0 4.4 4.1 3.9 4.3 -0.1 -0.1 -0.1 JREI RE-075 Castalia Yoga 923 864 305 1,140 1,170 30 4.2 4.4 4.4 4.1 4.3 4.3 -0.1 -0.1 -0.1 Tanizawa RE-076 Castalia Sumiyoshi 948 840 219 1,030 1,060 30 4.4 4.5 4.6 4.3 4.4 4.5 -0.1 -0.1 -0.1 Tanizawa RE-077 Castalia Monzennakacho II 2,160 1,974 785 2,700 2,760 60 4.2 4.0 4.4 4.1 3.9 4.3 -0.1 -0.1 -0.1 JREI RE-078 Castalia Oshiage 1,100 977 172 1,150 1,150 0 4.5 4.8/4.6 4.7 4.4 4.7/4.5 4.6 -0.1 -0.1 -0.1 Tanizawa RE-079 Castalia Kuramae 1,260 1,131 368 1,500 1,500 0 4.4 4.6/4.5 4.6 4.3 4.5/4.4 4.5 -0.1 -0.1 -0.1 Tanizawa RE-080 Castalia Nakanobu 1,790 1,640 949 2,580 2,590 10 4.2 4.0 4.4 4.2 4.0 4.4 0.0 0.0 0.0 Chuo RE-081 Royal Parks Toyosu 7,360 6,143 3,806 9,870 9,950 80 4.6 4.3 4.9 4.6 4.3 4.9 0.0 0.0 0.0 Chuo RE-082 Castalia Togoshi 1,770 1,580 939 2,510 2,520 10 4.3 4.1 4.5 4.3 4.1 4.5 0.0 0.0 0.0 Chuo RE-083 Castalia Ooimachi 1,181 1,147 392 1,510 1,540 30 3.9 3.7 4.1 3.8 3.6 4.0 -0.1 -0.1 -0.1 Morii RE-084 Castalia Omori RE-085 Castalia Mishuku 1,500 1,412 397 1,800 1,810 10 4.3 4.1 4.5 4.3 4.1 4.5 0.0 0.0 0.0 Chuo 1,900 1,830 489 2,300 2,320 20 4.3 4.1 4.5 4.3 4.1 4.5 0.0 0.0 0.0 Chuo RE-086 Castalia Arakawa 1,660 1,583 606 2,190 2,190 0 4.5 4.3 4.7 4.5 4.3 4.7 0.0 0.0 0.0 Chuo RE-087 Castalia Omori II 2,370 2,257 752 2,920 3,010 90 4.0 3.8 4.2 3.9 3.7 4.1 -0.1 -0.1 -0.1 Morii RE-088 Castalia Nakameguro 3,800 3,778 751 4,410 4,530 120 3.9 3.7 4.1 3.8 3.6 4.0 -0.1 -0.1 -0.1 Morii RE-089 Castalia Meguro Chojyamaru 2,030 1,996 403 2,340 2,400 60 3.9 3.7 4.1 3.8 3.6 4.0 -0.1 -0.1 -0.1 Morii RE-090 Castalia Meguro Takaban 1,750 1,744 155 1,850 1,900 50 4.1 3.9 4.3 4.0 3.8 4.2 -0.1 -0.1 -0.1 Morii RE-091 Castalia Omori III 1,520 1,469 270 1,710 1,740 30 4.1 3.9 4.3 4.0 3.8 4.2 -0.1 -0.1 -0.1 Morii RE-093 Castalia Meguro Tairamachi 1,165 1,201 118 1,280 1,320 40 3.8 3.6 4.0 3.7 3.5 3.9 -0.1 -0.1 -0.1 Morii RE-094 Royal Parks SEASIR 4,350 4,085 894 4,960 4,980 20 5.3 5.1/5.5 - 5.2 5.0/5.4 -0.1 -0.1 - Morii RE-095 Castalia Honkomagome 1,520 1,515 314 1,780 1,830 50 4.2 4.0 4.4 4.1 3.9 4.3 -0.1 -0.1 -0.1 Morii RE-096 Cosmo Heim Musashikosugi 1,674 1,654 365 1,990 2,020 30 4.8 4.6 5.0 4.8 4.6 5.0 0.0 0.0 0.0 Chuo RE-097 Castalia Tsurumi 666 586 167 742 754 12 5.1 4.9 5.3 5.1 4.9 5.3 0.0 0.0 0.0 Chuo RE-098 Castalia Funabashi 704 694 99 794 794 0 4.9 4.9/4.7 5.1 4.9 4.9/4.7 5.1 0.0 0.0 0.0 Tanizawa RE-099 Castalia Nishi Funabashi 783 741 212 936 954 18 5.2 5.0 5.4 5.1 4.9 5.3 -0.1 -0.1 -0.1 JREI RE-105 Castalia Nogeyama 325 296 31 328 328 0 5.1 4.9 5.3 5.0 4.8 5.2 -0.1 -0.1 -0.1 JREI RE-106 Castalia Ichikawa 461 404 144 538 549 11 5.0 4.9 5.3 4.9 4.8 5.2 -0.1 -0.1 -0.1 JREI RE-107 Royal Parks Hanakoganei 5,300 4,791 1,488 6,160 6,280 120 5.1 4.9/5.3 5.0 4.8/5.2 -0.1 -0.1 - Daiwa RE-108 Castalia Musashikosugi 1,680 1,641 248 1,850 1,890 40 4.4 4.2 4.6 4.3 4.1 4.5 -0.1 -0.1 -0.1 Morii 57#59Appraisal Value Changes Comparison (6) O Daiwa House REIT Investment Corporation (mil yen) (%) Appraisal value (Note 1) Aug. 2018 Feb. 2019 Change Property number Property name Acquisition Book value Unrealized price Feb. 2019 gain (loss) Aug. 2018 Feb. 2019 Change Direct cap DCF Direct cap DCF Direct cap DCF Appraiser (Note 2) CR DR TCR CR DR TCR CR DR TCR RE-109 Royal Parks Wakabadai 4,360 3,895 894 4,720 4,790 70 5.2 5.0/5.4 5.1 4.9/5.3 -0.1 -0.1 Daiwa RE-110 Pacific Royal Court Minatomirai Urban Tower 9,100 8,444 2,455 10,800 10,900 100 4.9 4.7/5.1 - 4.8 4.6/5.0 -0.1 -0.1 - Morii RE-111 L-Place Shinkoyasu 1,720 1,699 410 2,070 2,110 40 4.9 4.7 5.1 4.8 4.6 5.0 -0.1 -0.1 -0.1 JREI RE-112 Royal Parks Musashikosugi 1,060 991 318 1,300 1,310 10 4.8 4.6/5.0 4.7 4.5/4.9 - -0.1 -0.1 ― Morii RE-116 Castalia Sakaisuji Honmachi 1,490 1,307 512 1,780 1,820 40 4.6 4.7 4.8 4.5 4.6 4.7 -0.1 -0.1 -0.1 Tanizawa RE-117 Castalia Shin-Umeda 1,376 1,211 378 1,580 1,590 10 4.7 4.8 4.9 4.6 4.7 4.8 -0.1 -0.1 -0.1 Tanizawa RE-118 Castalia Abeno 4,368 3,986 1,323 5,180 5,310 130 4.6 4.7 4.8 4.5 4.6 4.7 -0.1 -0.1 -0.1 Tanizawa RE-119 Castalia Sakae 1,010 909 310 1,220 1,220 0 4.8 4.6 5.0 4.8 4.6 5.0 0.0 0.0 0.0 Chuo RE-121 Castalia Maruyama Urasando 411 361 146 498 508 10 4.9 4.9 5.1 4.8 4.8 5.0 -0.1 -0.1 -0.1 Tanizawa RE-122 Castalia Maruyama Omotesando 1,740 1,535 474 2,010 2,010 0 4.9 4.9 5.1 4.8 4.8 5.0 -0.1 -0.1 -0.1 Tanizawa RE-123 Castalia Higashi Hie 960 837 212 1,020 1,050 30 4.9 5.1 5.1 4.8 5.0 5.0 -0.1 -0.1 -0.1 Tanizawa RE-124 Castalia Tower Nagahoribashi 3,400 2,933 1,686 4,610 4,620 10 4.7 4.5 4.9 4.7 4.5 4.9 0.0 0.0 0.0 Chuo RE-125 Castalia Sannomiya 1,230 1,066 433 1,490 1,500 10 5.0 4.8 5.2 4.9 4.7 5.1 -0.1 -0.1 -0.1 Daiwa RE-126 Castalia Kotodaikoen 481 413 144 555 558 3 5.3 5.3 5.5 5.2 5.2 5.4 -0.1 -0.1 -0.1 Daiwa RE-127 Castalia Ichibancho 783 690 247 934 938 4 5.3 5.3 5.5 5.2 5.2 5.4 -0.1 -0.1 -0.1 Daiwa RE-128 Castalia Omachi 656 603 216 813 820 7 5.3 5.3 5.5 5.2 5.2 5.4 -0.1 -0.1 -0.1 Daiwa RE-129 Castalia Uemachidai 2,190 1,950 819 2,710 2,770 60 4.7 4.5 4.9 4.6 4.4 4.8 -0.1 -0.1 -0.1 Daiwa RE-130 Castalia Tower Higobashi 2,670 2,369 1,220 3,570 3,590 20 4.7 4.5 4.9 4.7 4.5 4.9 0.0 0.0 0.0 Chuo RE-131 Big Tower Minami Sanjo 1,740 1,313 1,336 2,640 2,650 10 5.2 5.0 5.4 5.1 4.9 5.3 -0.1 -0.1 -0.1 Daiwa RE-132 Castalia Fushimi 2,260 1,958 1,151 3,040 3,110 70 4.7 4.5 4.9 4.6 4.4 4.8 -0.1 -0.1 -0.1 JREI RE-133 Castalia Meieki Minami 720 657 306 938 964 26 4.4 4.2 4.6 4.3 4.1 4.5 -0.1 -0.1 -0.1 Morii RE-134 Castalia Yakuin 930 886 293 1,180 1,180 0 4.5 4.3 4.7 4.4 4.2 4.6 -0.1 -0.1 -0.1 Morii RE-135 Castalia Mibu 1,193 1,100 389 1,470 1,490 20 4.8 4.6 5.0 4.7 4.5 4.9 -0.1 -0.1 -0.1 JREI RE-136 Castalia Tsutsujigaoka 1,208 1,179 570 1,750 1,750 0 4.8 4.6 5.0 4.8 4.6 5.0 0.0 0.0 0.0 Morii RE-137 Castalia Ohori Bay Tower 2,910 2,589 1,080 3,560 3,670 110 5.2 5.0 5.4 5.2 5.0 5.4 0.0 0.0 0.0 Morii RE-138 Royal Parks Namba 2,830 2,512 457 2,940 2,970 30 5.5 5.4/5.8 5.4 5.3/5.7 - -0.1 -0.1 Daiwa RE-139 Castalia Shigahondori 1,730 1,590 499 2,090 2,090 0 4.9 4.7 5.1 4.8 4.6 5.0 -0.1 -0.1 -0.1 JREI RE-140 Castalia Kyoto Nishioji 973 1,006 73 1,070 1,080 10 4.5 4.3 4.7 4.4 4.2 4.6 -0.1 -0.1 -0.1 Morii RE-141 Castalia Ningyocho III 2,000 1,997 442 2,360 2,440 80 4.1 3.9 4.3 4.0 3.8 4.2 -0.1 -0.1 -0.1 JREI RE-142 Royal Parks Umejima RE-143 Castalia Shinsakae II 2,020 1,980 219 2,180 2,200 20 5.3 5.1/5.5 5.2 5.0/5.4 -0.1 -0.1 Morii 1,800 1,841 118 1,920 1,960 40 5.0 4.8 5.2 4.9 4.7 5.1 -0.1 -0.1 -0.1 Daiwa Residential Properties Total 246,424 228,762 59,096 282,933 287,859 4,926 I 58#60Appraisal Value Changes Comparison (7) O Daiwa House REIT Investment Corporation (mil yen) (%) Appraisal value (Note 1) Aug. 2018 Feb. 2019 Change Property number Acquisition Book value Unrealized Property name price Feb. 2019 gain (loss) Aug. 2018 Feb. 2019 Change Direct cap DCF Direct cap DCF Direct cap DCF Appraiser (Note 2) CR DR TCR CR DR TCR CR DR TCR RM-001 ACROSSMALL Shinkamagaya 7,770 7,511 828 8,060 8,340 280 5.6 5.3 5.8 5.5 5.2 5.7 -0.1 -0.1 -0.1 JREI RM-002 FOLEO Hirakata 4,580 4,503 166 4,660 4,670 10 6.1 5.6 6.2 6.0 5.5 6.1 -0.1 -0.1 -0.1 JREI RM-003 QiZ GATE URAWA 4,270 4,233 96 4,310 4,330 20 5.5 5.1 5.6 5.5 5.1 5.6 0.0 0.0 0.0 JREI RM-004 UNICUS Takasaki 3,000 2,947 162 3,070 3,110 40 6.2 5.9 6.4 6.1 5.8 6.3 -0.1 -0.1 -0.1 JREI RM-005 ACROSSPLAZA Miyoshi (Land) 3,740 3,740 210 3,930 3,950 20 4.3 4.2 -0.1 Tanizawa RM-006 DREAM TOWN ALi 8,100 7,931 578 8,330 8,510 180 5.7 5.5 6.0 5.6 5.4 5.9 -0.1 -0.1 -0.1 JREI RM-007 ASOBOX (Land) 1,600 1,617 282 1,860 1,900 40 - 5.0 - 4.9 - -0.1 JREI RM-008 FOLEO Ome Imai 3,800 3,770 179 3,950 3,950 0 5.1 4.6 5.4 5.1 4.6 5.4 0.0 0.0 0.0 JREI RM-009 FOLEO Otsu Ichiriyama 8,100 8,105 344 8,420 8,450 30 5.5 5.3 5.8 5.5 5.3 5.8 0.0 0.0 0.0 JREI RM-010 FOLEO Hakata 3,200 3,203 476 3,610 3,680 70 4.9 4.7 5.2 4.8 4.6 5.1 -0.1 -0.1 -0.1 JREI RM-011 ACROSSMALL Semboku (Land) 3,250 3,383 496 3,880 3,880 0 - 4.3 - - 4.3 - 0.0 - Tanizawa RR-001 LIFE Sagamihara Wakamatsu 1,670 1,655 144 1,760 1,800 40 4.8 4.4 4.9 4.7 4.3 4.8 -0.1 -0.1 -0.1 JREI RR-002 FOLEO Sendai Miyanomori 6,960 6,858 521 7,380 7,380 0 5.6 5.3 5.8 5.6 5.3 5.8 0.0 0.0 0.0 JREI RR-003 ACROSSPLAZA Inazawa (Land) 2,390 2,390 130 2,490 2,520 30 = 5.2 5.1 -0.1 JREI Sports Depo and GOLF5 RR-004 2,230 2,182 217 2,360 2,400 40 6.1 6.2 6.3 6.0 6.1 6.2 -0.1 -0.1 -0.1 Tanizawa Kokurahigashi IC Store RR-005 Hiratsuka Retail Property (Land) 5,620 5,857 782 6,640 6,640 0 4.0 4.0 0.0 Tanizawa RR-006 Royal Home Center Morinomiya (Land) 4,500 4,541 678 5,190 5,220 30 4.0 4.0 0.0 Tanizawa RU-001 COMBOX310 4,480 4,489 110 4,600 4,600 0 5.6 5.4 5.8 5.6 5.4 5.8 0.0 0.0 90 0.0 Daiwa Retail Properties Total 79,260 78,921 6,408 84,500 85,330 830 HO-001 Daiwa Roynet Hotel Yokohama Kannai 4,800 4,803 136 4,940 4,940 0 4.7 4.5 4.9 4.7 4.5 4.9 0.0 0.0 0.0 Daiwa HO-002 Super Hotel JR Nara Station Sanjo Street 1,470 1,476 13 1,490 1,490 0 4.8 4.6 5.0 4.8 4.6 5.0 0.0 0.0 0.0 Daiwa Hotel Properties Total 6,270 6,279 150 6,430 6,430 0 - I OT-001 Urban Living Inage 930 848 431 1,300 1,280 -20 5.2 5.0 5.4 5.3 5.1 5.5 0.1 0.1 0.1 Daiwa OT-002 Aburatsubo Marina HILLS 1,100 1,070 189 1,260 1,260 0 6.1 5.9 6.3 6.1 5.9 6.3 0.0 0.0 0.0 JREI OT-003 Naha Shin-Toshin Center Building (Daiwa Roynet Hotel Naha-Omoromachi) 7,600 7,379 630 7,980 8,010 30 30 5.5 5.3 57 5.7 5.5 5.3 5.7 0.0 0.0 0.0 Daiwa OT-004 Sharp Hiroshima Building 1,850 1,838 111 1,950 1,950 0 5.3 5.1 5.5 5.3 5.1 5.5 0.0 0.0 0.0 JREI Other Assets Total 11,480 11,136 1,363 12,490 12,500 10 - - I - Portfolio Total 683,443 660,496 93,224 743,402 753,721 10,319 I - - - I 59#61Appraisal Value Changes Comparison (8) O Daiwa House REIT Investment Corporation (mil yen) (%) Appraisal value (Note 1) Aug. 2018 Property number Property name Acquisition Book value Unrealized price Feb. 2019 gain (loss) Aug. 2018 Feb. 2019 Change Direct cap DCF CR DR Feb. 2019 Change Direct cap DCF Direct cap DCF TCR CR DR TCR CR DR TCR Appraiser (Note 2) Acquisitions in March and April 2019 LB-057 D Project Kitahachioji | 4,300 LB-058 D Project Kitahachioji II 5,700 LB-059 D Project Kitahachioji III 7,300 LB-060 D Project Itabashi Shingashi 12,300 LB-061 D Project Sagamihara 3,900 LB-062 D Project Kuki VIII 6,100 LB-063 D Project Yokkaichi 1,490 4,360 5,760 7,450 12,400 3,940 6,110 1,500 LB-064 D Project Ibaraki Ishioka 4,050 - RM-012 iias Tsukuba 10,320 RR-007 Aoyama Tailor Bunkyo Sengoku Ekimae Store 750 I I 4,090 10,320 762 - RR-008 FOLEO Shobu 5,000 Daiwa Roynet Hotel Nagoya HO-003 4,500 I Shinkansenguchi OT-005 1,380 I I I I 5,050 4,540 1,380 67,090 I I Total 750,533 I Nursery Room Berry Bear Omori Nishi Welcia Ota Omori Nishi Store Acquisitions in March and April 2019 Portfolio Grand Total 67,662 821,383 I | I I I I | (Note 1) "Appraisal value" of the period ended Aug. 2018 for the properties acquired in the period ended Feb. 2019 and "Appraisal value" of the period ended Feb. 2019 for the properties acquired in March and April 2019 are based on the appraisal value at the time of the acquisition. (Note 2) "Tanizawa": The Tanizawa Sogo Appraisal Co., Ltd., "Chuo": Chuo Real Estate Appraisal Co., Ltd., "JREI": Japan Real Estate Institute, "Daiwa": Daiwa Real Estate Appraisal Co., Ltd., "Morii": JLL Morii Valuation & Advisory K.K. I || 1 I T I | I 4.6 4.2 4.8 JREI 4.6 4.3 4.8 JREI 4.6 4.2 4.8 JREI 4.2 4.2 4.4 Tanizawa 4.3 4.3 4.5 Tanizawa 4.7 4.6 4.9 Tanizawa 5.4 5.3/5.4 5.6 Tanizawa 5.1 5.1 5.3 Tanizawa 5.1 4.9 5.4 JREI 4.4 4.0 4.5 JREI 5.2 4.9 5.4 JREI 4.0 3.8 4.2 4.3 4.1 4.5 I I Daiwa - Daiwa I I I I I 60#62Unitholder Status Number of Unitholders and Units by Unitholder Type Period ended Aug. 2018 // Major Unitholders O Daiwa House REIT Investment Corporation Unitholder type Number of unitholders Number of units Period ended Feb. 2019 Number of unitholders Period ended Feb. 2019 Number of units Name Unitholders (%) Units (%) Unitholders (%) Units (%) Number of Ownership units owned (%) Individuals and others 15,983 94.2 98,739 5.1 15,900 94.1 98,822 5.1 Japan Trustee Services Bank, Ltd. (Trust Account) 359,999 18.7 Financial institutions 194 1.1 1,090,944 56.6 202 1.2 1,059,700 55.0 Banks / trust banks 67 0.4 994,005 51.6 74 0.4 963,665 50.0 The Master Trust Bank of Japan, Ltd. (Trust Account) 262,423 13.6 City banks I - I Daiwa House Industry Co., Ltd. 185,200 9.6 Regional banks 52 0.3 148,478 7.7 59 0.3 156,920 8.1 The Nomura Trust and Banking Co., Ltd. (Investment Trust Account) 69,107 3.6 Trust banks 15 0.1 845,527 43.9 15 0.1 806,745 41.9 Life insurance 9 10 State Street Bank West Client - Treaty 505234 68,170 3.5 0.1 32,239 1.7 9 0.1 25,162 1.3 companies Non-life insurance 2 0.0 7,442 0.4 3 0.0 5,920 0.3 companies Trust & Custody Services Bank, Ltd. (Securities Investment Trust Account) 49,640 2.6 Other financial 116 0.7 57,258 3.0 116 0.7 64,953 3.4 institutions Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. 34,716 1.8 Shinkin banks 62 39 0.4 28,545 1.5 62 62 0.4 31,412 1.6 Others 54 0.3 28,713 1.5 54 Nomura Bank (Luxembourg) S.A. 31,306 1.6 54 0.3 33,541 1.7 Other domestic 318 1.9 221,275 11.5 316 1.9 corporations 119 220,926 11.5 Mizuho Trust & Banking Co., Ltd. 19,025 1.0 10 Foreign corporations 448 2.6 446,016 23.1 463 2.7 460,442 23.9 and individuals State Street Bank and Trust Company 505103 18,337 1.0 Securities firms 19 10 0.1 70,026 3.6 22 0.1 87,110 4.5 Total 16,962 100.0 1,927,000 100.0 Total 16,903 100.0 1,927,000 100.0 1,097,923 57.0 61#63REIT Structure Parent Company of Asset Manager Sponsor Daiwa House Industry Co., Ltd. Pipeline Supporting Company Investment Corporation (4) Daiwa House REIT Investment Corporation (2) Unitholders' Meeting Cosmos Initia Co., Ltd. Daiwa Lease Co., Ltd. (4) Daiwa Information Service Co., Ltd. Daiwa Royal Co., Ltd. Fujita Corporation Daiwa Logistics Co., Ltd. Board of Directors Executive Director : Jiro Kawanishi Supervisory Director : Tetsuya Iwasaki Supervisory Director : Hiroshi Ishikawa (3) Independent Auditor Ernst & Young ShinNihon LLC (1) O Daiwa House REIT Investment Corporation Asset Custodian, General Administrator, Transfer Agent and Special Account Administrator Sumitomo Mitsui Trust Bank, Limited Administrator of Investment Corporation Bonds Sumitomo Mitsui Trust Bank, Limited MUFG Bank, Ltd. Asset Manager Daiwa House Asset Management Co., Ltd. (1) Asset management agreement (2) Asset custody agreement / General administration agreement Transfer agency agreement / Special account administration agreement (3) Fiscal agent agreement (4) Basic agreement on pipeline support, etc. 62#64Disclaimer This document is provided for information purposes only and is not intended as a solicitation to invest or a recommendation to trade in a specific security. Please contact a financial product brokerage company if you are interested in purchasing the investment units of Daiwa House REIT Investment Corporation ("DHR"). This document is not a disclosure document or investment report required under and made in accordance with the Financial Instruments and Exchange Act, the Act on Investment Trusts and Investment Corporations and related cabinet orders and cabinet office ordinances, or under the Tokyo Stock Exchange's securities listing rules or any other related rules. The contents of this document include forward-looking statements based on certain assumptions and judgments using information currently available to DHR. These forward-looking statements are not a guarantee of DHR's future results, business performance and financial position. • DHR endeavors to ensure the contents of this document are as accurate as possible. However, DHR cannot guarantee the accuracy, reliability, adequacy or the accessibility of the information herein. DHR reserves the right to change or delete information without prior notice. Duplication or reproduction of any item presented as information herein without the prior consent of DHR is strictly prohibited.