#1Daiwa House REIT Investment Corporation (TSE code: 8984) Investor Presentation Other Retail Logistics Residential April 20, 2017 The 22nd Period Ended Feb. 2017 Daiwa Asset Mgt... Das House Group Daiwa House Asset Management Co., Ltd.#2Table of Contents Executive Summary 1. Financial Results February 2017 Financial Results Financial Results (Statements of Income) Financial Results (Balance Sheets) 2. Equity Offering Overview of Equity Offering ☐ Overview of Acquisitions in April 2017 ◉ Portfolio Summary (as of April 11, 2017) 3. Initiatives to Pursue Growth Growth Track Record and Asset Size Target Pipeline of Daiwa House Group Future Growth Strategy 4. Operation and Financial Status Operation Status of Logistics Properties Operation Status of Residential Properties ■ Operation Status of Retail Properties Sustainability Initiatives Financial Status 5. Financial Forecasts Financial Forecasts Distribution Policy O Daiwa House REIT Investment Corporation Page Appendix Acquisitions in April 2017 ☐ Historical Financial Data Page 27-30 31 456 9 860 10 ◉ Historical Portfolio Data ◉ 32 Balance Sheets Statements of Income Market Environment for Logistics Properties ■ Market Environment for Residential Properties 33 34 35 ◉ Market Environment for Retail and Hotel Properties Portfolio List as of April 11, 2017 330 36 37 38-40 Appraisal Value Changes Comparison ☐ Rent Revision Schedule of Logistics Properties Rent Revision Schedule of Retail Properties Unit Price Performance Unitholders REIT Structure 41-42 43 44-50 51 52 53 12 13-14 15 17 18 19 20 21-22 224 24 25 1#3Executive Summary 1. Financial Results 2. Equity Offering Feb. 2017 DPU 4,800 yen (previous forecast 4,700 yen) Daiwa House REIT Investment Corporation Acquired 6 properties for 17.2 bn yen through Daiwa House Group pipeline in Sep. 2016 Raised 46.4 bn yen from the first equity offering after the merger Acquired 15 properties for 67.9 bn yen through Daiwa House Group pipeline in Apr. 2017 3. Initiatives to Pursue Growth Acquired 22 properties for 90.7 bn yen since the transition to a diversified REIT upon the merger Aim 800 bn yen in asset size leveraging Daiwa House Group pipeline 4. Operation and Financial Status Feb. 2017 occupancy remained stable at a high level of 99.0 % (+0.3 p.p.) ◆ Further lengthening and diversifying debt maturities and fixing interest rates 5. Financial Forecasts Aug. 2017 Forecast DPU 4,800 yen (forecast as of Oct. 2016 4,720 yen) Feb. 2018 Forecast DPU 5,050 yen 2#41. Financial Results#5February 2017 Financial Results DPU 4,800 yen +100 yen vs forecast due to high occupancy at residential properties, acquisition of one retail property (land), etc. Increase in assets upon the merger as of Sep. 1 Daiwa House REIT Investment Corporation NOI yield Asset class NOI (mil yen) Acquisition price NOI yield (mil yen) Logistics 4,850 195,858 5.0% Asset class Number of properties Acquisition price Goodwill Residential 6,888 257,954 5.4% Logistics Residential 32 properties 9 properties Total 41 properties 192,498 mil yen 42,480 mil yen 234,978 mil yen 79,289 mil yen Retail 1,361 50,330 5.5% Other 298 9,630 6.3% Portfolio 13,398 513,772 5.3% Property Acquisitions Property name Period end occupancy Asset class Acquisition price Appraisal Acquisition NOI yield Asset class Aug. 2016 Feb. 2017 Change date (mil yen) Logistics 100.0 % 100.0 % Naha Shin-Toshin Center Other (office, Building (Daiwa Roynet Hotel Naha-Omoromachi) 7,600 5.9% Residential 96.0% 97.0% +1.0 p.p. hotel and retail) Retail 99.6% 99.4 % -0.2 p.p. D Project Hibiki Nada D Project Morioka II Logistics 2,080 6.3% Other 100.0 % 99.5% -0.5 p.p. Logistics 1,280 6.3% Sep. 28, 2016 Castalia Ningyocho III Residential 2,000 5.0% Portfolio 98.7% 99.0% +0.3 p.p. Royal Parks Umejima Sports Depo and GOLF Kokurahigachi IC Store Hiratsuka Retail Property (Land) Residential 2,020 6.9% Retail 2,230 6.9% Capex, repairs and maintenance and restoration costs Capex and planned repairs and maintenance in place on a long-term view Retail 5,620 4.2% Jan. 31, 2017 Total 22,830 5.6% Aug. 2016 Feb. 2017 Former DHI + Former DHR Property Sale Property name Asset class Sale price (mil yen) Appraisal value (mil yen) Capex Repairs and maintenance expenses 717 mil yen 843 mil yen 345 mil yen 569 mil yen Loss on sale (mil yen) Sale date Restoration costs 298 mil yen 293 mil yen Castalia Minamigyotoku II Feb 23, Total 1,360 mil yen 1,706 mil yen Residential 370 338 4 2017#6Financial Results (Statements of Income) Daiwa House REIT Investment Corporation The merger and acquisition of 7 properties contributed to 8 consecutive periods with income growth and 4,800 yen of DPU Statements of Income for the Period ended Feb. 2017 Major Variation Factors (vs Forecast) (million yen) Aug. 2016 Feb. 2017 Feb. 2017 Former DHI Result Former DHR Former DHI + Result Former DHR vs Aug. 2016 Forecast Result Former DHI +Former DHR as of 2016/10/19 Result vs Forecast Increase in operating revenue +170 mil yen Operating Revenue 9,691 7,142 16,833 17,531 697 17,360 170 Total Rental Revenue 9,691 7,142 16,833 17,531 697 17,360 170 ☐ Rental Revenue 9,020 6,938 15,958 16,606 647 16,491 115 Other rental revenue 670 204 874 924 49 869 55 ⚫Favorable occupancy at residential properties • Acquisition of one retail property (land) Increase in property operating expenses • Increase in repairs and maintenance expenses and restoration costs -36 mil yen Operating Expenses 5,731 3,261 8,992 11,963 2,970 12,005 -42 Loss on sale of property -4 mil yen Property operating expenses 4,746 2,667 7,414 7,493 79 7,457 36 •Sale of Castalia Minamigyotoku II Property operating expenses 2,713 1,160 3,873 4,132 258 4,091 41 (excluding depreciation) Depreciation 2,033 1,507 3,540 3,361 -179 3,366 -5 Other operating expenses 984 593 1,578 4,465 2,887 4,547 -82 Decrease in other operating expenses •Expenses related to D Project Shin-Misato litigation recorded as extraordinary loss +82 mil yen Amortization of goodwill 1,982 1,982 1,982 Operating Income 3,959 3,880 7,840 5,567 -2,273 5,354 212 Increase in non-operating +26 mil yen income Non-operating income 10 2 13 32 19 5 26 Refunded consumption taxes Non-operating expenses 756 601 1,358 1,125 -232 1,140 -14 Interest and borrowing 730 600 1,331 1,123 -208 1,138 -14 related expenses Decrease in interest and borrowing related expenses +14 mil yen Ordinary Income 3,214 3,281 6,495 4,474 -2,021 4,219 254 Extraordinary loss. -80 mil yen Net Income 3,213 3,280 6,494 4,393 -2,101 4,219 174 Reversal of retained earnings 178 178 2,899 2,720 2,921 -22 (Note) Total distribution 3,392 3,281 6,673 7,292 618 7,140 151 DPU 4,537 yen 4,800 yen 263 yen 4,700 yen 100 yen (Note) Reversal of retained earnings of former DHI for the period ended Aug. 2016: Amount of retained earnings equivalent to 10% of depreciation (202 mil yen) and netting the amount retained for distribution (23 mil yen) Reversal of retained earnings for the period ended Feb. 2017: Reversal of retained earnings (2,920 mil yen) and netting the amount retained for distribution (21 mil yen) 5#7Financial Results (Balance Sheets) O Daiwa House REIT Investment Corporation Increase in assets due to the merger and acquisition of 7 properties (acquisition price 257,808 mil yen) Recognition of goodwill of 79,289 mil yen due to the merger Balance Sheets for the Period ended Feb. 2017 Major Variation Factors (period-on-period) Period ended Aug. 2016 Period ended Feb. 2017 (million yen) Period-on-period change Total Assets 258,266 604,142 345,875 Current assets 9,753 21,630 11,876 Non-current assets 248,478 582,418 333,940 Period-on- period Increase in total assets •Assets acquired at the merger •Acquisition of 7 properties • Recognition of goodwill +345,875 mil yen Increase in interest-bearing debt +111,500 mil yen Investment properties 239,518 494,701 255,182 change ⚫Liabilities assumed at the merger Intangible assets 5,284 82,811 77,526 - New loans Goodwill 77,306 77,306 ■Increase in net assets +219,262 mil yen Total Liabilities 147,223 273,837 126,613 Current liabilities 75,081 57,428 -17,653 • Increase in capital surplus due to the merger Interest-bearing debt 72,295 52,495 -19,800 Non-current liabilities 72,142 216,409 144,267 Interest-bearing debt 69,368 200,668 131,300 Net Assets 111,042 330,304 219,262 Unrealized Gain by Asset Class Increase in appraisal value on compression in the cap rate Reserve for distribution (Note 1) 17,884 17,705 -178 Asset class Book value Appraisal value (million yen) Unrealized gain LTV (including goodwill) 54.9 % 41.9 % -13.0 p.p. Logistics 195,030 199,738 4,707 LTV (excluding goodwill) 48.1% Residential 245,129 285,738 40,608 Number of investment units issued 747,740 units Net Assets per unit NAV per unit (Note 2) 148,504 yen 195,377 yen 1,519,280 units 217,408 yen 248,462 yen 771,540 units Retail 50,445 51,650 1,204 68,904 yen Other 9,590 10,250 659 53,085 yen Total 500,196 547,376 47,179 (Note 1) Reserve for distribution for the period ended Feb. 2017 represents the amount before a reversal and the amount after a reversal is 14,806 mil yen. (Note 2) NAV per unit: (Net Assets + unrealized gain or loss) / number of investment units issued 6#82. Equity Offering#9Overview of Equity Offering O Daiwa House REIT Investment Corporation Raised 46.4 bn yen of equity from the first global equity offering after the merger Acquired 15 properties, 67.9 bn yen (5.1% appraisal NOI yield) through Daiwa House Group pipeline Overview of Equity Offering // Impact of Equity Offering DPU Offering structure Global offering (Regulation S +144 A) (yen) +1.7% vs Previous Forecast +5.2% vs Forecast for Aug. 2017 5,500 Launch date March 1, 2017 5,000 5,050 4,500 Pricing date March 13, 2017 4,700 4,800 4,720 4,800 4,000 Issue price 280,868 yen 3,500 3,000 Amount paid-in 271,983 yen Period ended Feb. 2017 Period ending Aug. 2017 Period ending Feb. 2018 Japanese tranche Previous Forecast (as of Oct. 2016) Actual Forecast 94,672 units Number of units newly issued Greenshoe option International tranche 14,000 units 62,048 units (Reference) Property taxes for the properties acquired in 2017 will be expensed starting from the period ending Aug. 2018. Total 170,720 units Net proceeds 46,432 million yen Same boat investment by Daiwa House 15,600 units Period ended Feb. 2017 Post offering NAV per unit 248,462 yen as of Apr. 14, 2017 251,394 yen Impact of offering, etc. +2,932 yen LTV (incl. goodwill) 41.9% -0.3 p.p. LTV (excl. goodwill) 48.1 % 46.9 % 41.6 % -1.2 p.p. 80#10Overview of Acquisitions in April 2017 O Daiwa House REIT Investment Corporation Property name Location Asset class Acquisition price (mill yen) Appraisal value (mil yen) Appraisal NOI yield Occupancy Property rate age Lessee (Average) lease term (Average) remaining lease term Acquisitions on April 11, 2017 DPL Misato Misato, Saitama Logistics 16,831 16,900 4.5% 100% 3.8 years D Project Kawagoe III Kawagoe, Saitama Logistics 7,200 7,260 5.0% 100% 2.8 years Kokubu Group, ARATA, Kato Sangyo, Nitori, etc. Hitachi Transport System Kanto 8.7 years 6.3 years 10.0 years 7.2 years D Project Kazo D Project Urayasu III D Project Tomisato D Project Kyotanabe Kazo, Saitama Logistics 3,300 3,350 5.1% 100% 2.7 years Itochu Logistics 10.6 years 7.9 years Urayasu, Chiba Logistics 8,500 8,880 4.8% 100% 11.4 years Daiwa Logistics 19.8 years 8.4 years Tomisato, Chiba Logistics 5,000 5,030 5.1% 100% 2.0 years Tokyo Nohin Daiko 10.8 years 8.8 years Kyotanabe, Kyoto Logistics 3,520 3,550 5.8% 100% 4.5 years D Project Sendai Izumi Sendai, Miyagi Logistics 1,510 1,560 5.7% 100% 3.0 years D Project Oyama D Project Sano D Project Tatebayashi D Project Kakegawa Oyama, Tochigi Logistics 2,000 2,010 5.8% 100% 7.1 years Hutech norin Mitsubishi Shokuhin Mitsubishi Shokuhin 20.1 years 15.6 years Not disclosed Not disclosed Not disclosed Not disclosed Sano, Tochigi Logistics 1,780 1,780 5.8% 100% 2.9 years Toryusha 15.0 years 12.2 years Tatebayashi, Gunma Logistics 3,100 3,120 5.7% 100% 1.6 years Hitachi Transport System Kanto 15.0 years 13.4 years Kakegawa, Shizuoka Logistics 6,000 6,070 5.8% 100% 2.7 years Hitachi Transport System Chubu 20.0 years 17.3 years D Project Hiroshima Seifu Hiroshima, Hiroshima Logistics 3,820 3,860 5.8% 100% 2.3 years D Project Tosu II Tosu, Saga Logistics 1,700 1,740 5.5% 100% 0.3 years MITSUI FOODS Marukyo Transportation Not disclosed Not disclosed Logistics Sub-total / Average 64,261 65,110 5.1% 100% 4.2 years 7.0 years 13.5 years 6.7 years 9.7 years Castalia Shinsakae II Nagoya, Aichi Residential 1,800 1,850 5.5% 100% 1.2 years Daiwa Living Management Sharp Hiroshima Building Hiroshima, Hiroshima Other 1,850 1,890 5.7% 100% 1.2 years Sharp Total Average 67,911 68,850 5.1% 100% 4.0 years Not disclosed 13.7 years Not disclosed 10.0 years DPL Misato Logistics D Project Kawagoe III |Logistics D Project Kazo D Project Urayasu III Logistics Logistics D Project Tomisato Logistics D Project Kyotanabe Logistics D Project Sendai Izumi Logistics D Project Oyama Logistics D Project Sano Logistics 17 D Project Tatebayashi D Project Kakegawa D Project Hiroshima Seifu D Project Tosu II Logistics Logistics Logistics TORYU Logistics Castalia Shinsakae II Residential Sharp Hiroshima Building Other 9#11Portfolio Summary (as of April 11, 2017) O Daiwa House REIT Investment Corporation Portfolio Logistics Residential Retail Acquisition price 581,683 mil yen 260,119 mil yen 259,754 mil yen 50,330 mil yen Number of properties NOI yield (Note) Average property age 5.2% 204 properties 47 properties 142 properties 11 properties 5.0% 5.4 % 5.5 % Other 11,480 mil yen 4 properties 6.2% 9.0 years 6.8 years 11.2 years 9.4 years 5.5 years Occupancy rate 99.2% 100.0 % 97.1 % 99.4 % 99.6% Greater Tokyo 71.1% Greater Tokyo 74.8% Greater Tokyo 80.4% Greater Tokyo 45.8% Greater Nagoya 4.4% Area breakdown Greater Osaka 9.3% Other 15.2% Greater Nagoya Greater Osaka Other 5.7% 8.2% Greater Nagoya Greater Osaka 3.6% Greater Nagoya 4.7% Greater Tokyo 11.2% Other 11.4% 4.6% Greater Osaka 9.1% Other 17.7% 82.3% Other 40.3% (Note) NOI yield is based on actual NOI for the period ended Feb. 2017 and appraisal NOI for the new acquisitions in Apr. 2017. Portfolio by Asset Class (acquisition price basis) // Portfolio by Area Portfolio by Property Age (acquisition price basis) (acquisition price basis) Logistics 260,119 mil yen 44.7% Greater Tokyo area 71.1% Less than 5 years 18.8% Residential Core Three Greater Nagoya 259,754 mil yen Assets 98.0% major metropolitan area 44.7% areas Retail 50,330 mil yen 84.8% 8.7% Other 11,480 mil yen 4.4% Greater Osaka area 9.3% Other areas 15.2% Less than 10 years 55.0% 5 to less than 10 years 36.2% 10 years or more 45.0% 2.0% 10#123. Initiatives to Pursue Growth#13Empty#14Pipeline of Daiwa House Group (1) Logistics Properties Property Name D Project Kitahachioji Daiwa House REIT Investment Corporation Type Location Completion No. of Floors Gross Floor Area Annex A, B and C DPL Sagamihara D Project Kita Hachioji Annex A BTS Hachioji City, Tokyo Feb. 2011 5 15,352 m² D Project Kita Hachioji Annex B BTS Hachioji City, Tokyo Nov. 2011 4 18,762 m² D Project Kita Hachioji Annex C BTS Hachioji City, Tokyo Jun. 2014 4 26,310 m² D Project Jonanjima BTS Ota Ward, Tokyo May 2014 8 49,739 m2 D Project Itabashi Shingashi BTS Itabashi Ward, Tokyo Dec. 2014 7 31,094 m2 D Project Sagamihara II BTS Sagamihara City, Kanagawa Apr. 2015 2 17,576 m² D Project Jonanjima DPL Yokohama Daikoku D Project Kuki Shoubu I Annex B BTS Kuki City, Saitama Jan. 2010 1 2,940 m² О D Project Kuki III Annex K BTS Kuki City, Saitama Sep. 2016 5 29,090 m² D Project Kawagoe Annex A BTS Kawagoe City, Saitama Jan. 2011 3 24,684 m² D Project Wako Annex A BTS Wako City, Saitama Apr. 2015 6 57,198 m² D Project Matsudo Annex A BTS Matsudo City, Chiba Apr. 2011 5 19,837 m² D Project Chibakita BTS Chiba City, Chiba Jun. 2016 2 25,123 m² D Project Itabashi Shingashi DPL Ichikawa D Project Tomisato II BTS Tomisato City, Chiba Mar. 2016 4 42,125 m² D Project Sendai Izumi II BTS Sendai City, Miyagi Oct. 2015 2 39,531 m² D Project Ibaraki Ishioka BTS Ishioka City, Ibaraki Jul. 2015 2 24,524 m² D Project Fuji BTS Fuji City, Shizuoka Oct. 2013 2 24,176 m² D Project Shikoku Sakaide Annex A BTS Sakaide City, Kagawa Aug. 2015 1 27,995 m² DPL Sagamihara Multi-tenant Sagamihara City, Kanagawa Dec. 2013 50 82,685 m² D Project Wako Annex A DPL Fukuoka Kasuya DPL Yokohama Daikoku Multi-tenant Yokohama City, Kanagawa Feb. 2014 6 121,818 m² DPL Kawasaki Yakou Multi-tenant DPL Ichikawa Multi-tenant Kawasaki City, Kanagawa Ichikawa City, Chibal Mar. 2017 5 92,924 m² Jun. 2016 5 88,050 m² DPL Sendai Port Multi-tenant Sendai City, Miyagi Mar. 2017 2 63,098 m² DPL Fukuoka Kasuya Multi-tenant Kasuya District, Fukuoka Apr. 2014 7 87,683 m² (Source) Daiwa House Industry Co., Ltd. (Note) As of the date of this document, there are no planned acquisitions. 13#15Pipeline of Daiwa House Group (2) Residential Properties Property Name Type Location Royal Parks Ogikubo Royal Parks Riverside Compact/family Compact/family Suginami Ward, Tokyo Adachi Ward, Tokyo Completion (Planned) Mar. 2005 Dec. 2010 No. of Residential Units Royal Parks ER Sasashima Compact/family/ shared house/ pay nursing homes/ nursery school/retail Nagoya City, Aichi Mar. 2015 Roygent Higashi Kanda Roygent Kudanshita Roygent Shinsakae III Compact Compact Royal Parks ER Bandai Compact/family Compact/family/ medical mall Chiyoda Ward, Tokyo May 2018 Chiyoda Ward, Tokyo Aug. 2017 Nagoya City, Aichi Condominium: 157 units Condominium: 200 units Condominium: 430 units, shared house: 136 units, pay nursing homes: 66 units (annexed by senior day service), nursery school, retail: 2 sections Condominium: 134 units Condominium: 48 units Sep. 2017 Niigata City, Niigata Feb. 2018 Condominium: 111 units. Condominium: 427 units, medical mall Royal Parks ER Sasashima O Daiwa House REIT Investment Corporation Roygent Higashi Kanda FOLEO Otsu Ichiriyama iias Tsukuba 1103 Retail Properties Property Name Type Location iias Takao Mall FOLEO Otsu Ichiriyama Mall iias Tsukuba Mall Hachioji City, Tokyo Otsu City, Shiga Tsukuba City, Ibaraki Completion (Planned) Jun. 2017 Gross Floor FOLLD No. of Floors 4 Oct. 2008 2+1 basement Sep. 2008 5 Area 80,758 m² 62,918 m² 112,509 m² Daiwa Royal Ariake Project Hiroshima Futaba no Sato Project COMBOX Mito Mall/hotel Mito City, Ibaraki Apr. 2006 13 18,498 m² FOLEO Hakata Mall Fukuoka City, Fukuoka Jan. 2008 3 23,230 m² FOLEO Shoubu Roadside Kuki City, Saitama Mar. 2010 1 19,089 m² Hotel Properties Property Name Type Location Daiwa Royal Ariake Project Hotel/retail/convention Daiwa Roynet Hotel Hotel Yokohama Kannai Koto Ward, Tokyo Yokohama City, Kanagawa Completion (Planned) Mar. 2018 No. of Floors 171 basement Gross Floor Area 22,500 m² Aug. 2009 101 basement 8,567 m² Nerima Takamatsu Project Shibuya Honmachi Project Other Assets Property Name Hiroshima Futaba no Sato Project Type Office/hotel/retail Location Completion (Planned) Gross Floor Area/ No. of Floors Hiroshima City, Hiroshima Mar. 2019 47,123 m² Feb. 2015 100 units Nerima Takamatsu Project Assisted-living pay nursing homes Nerima Ward, Tokyo Jan. 2017 40 units Shibuya Honmachi Project Assisted-living pay nursing homes Utsunomiya Project Serviced senior housing Shibuya Ward, Tokyo Utsunomiya City, Tochigi Oct. 2015 57 units (Source) Daiwa House Industry Co., Ltd. Sep. 2015 77 units (Note) As of the date of this document, there are no planned acquisitions. 14#16Future Growth Strategy Daiwa House REIT Investment Corporation Accelerate growth by leveraging Daiwa House Group's comprehensive and integrated capabilities Acquire properties developed by Daiwa House Group based on the Group's pipeline support Value Chain of Daiwa House Group Comprehensive and integrated capabilities from acquisition of land, design and construction, to management and operation 5th Medium-Term Management Plan of Daiwa House Group Daiwa House Group intends to invest 700 bn yen in aggregate in the property development business according to its 5th Medium-Term Plan covering the fiscal year ending March 2017 through the fiscal year ending March 2019. Disposition Acquisition Redevelop properties disposed by the REIT Daiwa House REIT Investment Corporation Synergy-effect strategy Real estate development Construction contract Selection/ acquisition of land Proposal to land owners regarding idle land Management / operation of the properties Feedback Real Estate Development Investment plan 700 Logistics, Business and Corporate Facilities 360 100 140 Rental Commercial Overseas Housing Facilities Business 100 Capex 150 M&A 50 Selling Acquisition Utilize the fund for investment in new development / acquisition Daiwa House Group Planning/ design Capital plan Acquisition of developed properties to enhance unitholder value Disposition Tenant-leasing Construction Operating C/F 460 Total 900 billion yen Real Estate Sales 300 Interest- bearing Debt 140 0 100 200 300 400 500 600 700 800 900 (billion yen) (Source) Daiwa House Industry Co., Ltd. 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 Daiwa House REIT (% of ownership) As of April 14, 2017 185,200 units (11.0%) Real Estates Available for Sale of Daiwa House Group (billion yen) December 31, 2016 Being rented Not being rented Total Logistics, business & 109.5 230.4 340.0 corporate facilities Rental housing 4.3 13.1 17.4 Commercial facilities 52.8 30.5 83.4 (Source) Daiwa House Industry Co., Ltd. 15 5#174. Operation and Financial Status#18Operation Status of Logistics Properties Operation Status 100% occupancy since acquisitions unchanged Installed LED light for 4 properties including D Project Machida, D Project Aikawa-Machi, D Project Akanehama and D Project Kuki V ← Increased rental revenue Installed solar power generation system on roof for rent for DPL Inuyama → Increased rental revenue Rent Revision / Lease Contract Renewal Rent revision: D Project Nishi-Hiroshima Bldg. A and D Project Kuki I → Revised rent on equal terms D Project Shin-Misato in ongoing litigation Recorded provision for loss on litigation of 80 mil yen comprehensively taking account the current status of the litigation Daiwa House REIT Investment Corporation Remaining Lease Term (annual rent basis) Average Remaining Lease Term 10.3 years 15 years or more 11.2% 10 to less than 15 years 42.9% 5 to less than 10 years 38.7% Less than 5 years 7.2% Lease Term (annual rent basis) Average Lease Term 16.2 years 10 years or more 86.1% Less than 10 years 13.9% Future Plans for Internal Growth Aim to increase revenue by investing in properties suited for tenant needs D Project Gifu D Project Kuki I Installation of LED light D Project Kuki I → Increase rental revenue D Project Kakegawa D Project Aikawa-Machi Installation of freezing and refrigeration facility → Increase rental revenue Installation of solar power generation system on roof D Project Inuyama → Increase rental revenue % of Top 10 Tenants (leased area basis) Hitachi Capital 10.3% Mitsubishi Shokuhin 9.7% Daiwa Logistics 6.4% NAKANO SHOKAI 6.0% D Project Inuyama Top 10 Tenants 56.4% Hitachi Transport System Kanto 4.5% Sagawa Global Logistics 4.3% Seven & i Holdings 4.3% Hitachi Transport System 4.0% Takihyo Vantec Corporation Other 3.7% 3.3% 43.6% As of April 11, 2017 17#19Operation Status of Residential Properties Daiwa House REIT Investment Corporation Operation Status Period average occupancy at 96.4%, above forecast of 95.0% Performed major renovations for 5 properties Rents Monthly rents at tenant replacement increased for 4 consecutive periods Performed upgrade work for 21 residence units of 13 properties → Contracts were signed for 17 residence units at end of period with 8.1% increase in rents Monthly Rent at Tenant Replacement (Ratio of number of tenant replacement) ■Rent increase No change Period ended Rent decrease 40.2% 33.1% 26.7% Feb. 2017 Period ended 37.2% Aug. 2016 43.4% 19.4% Period ended 46.8% 26.7% 26.6% 51.5% 21.2% 27.3% 46.7% 23.7% 29.6% 0% 20% 40% 60% 80% 100% Feb. 2016 Period ended Aug. 2015 Period ended Feb. 2015 // Performing Upgrade Work Performed upgrade work considering the characteristics of each property in order to maintain competitiveness Before After Amount of Monthly Rent Increase and Decrease (thousand yen) 4,000 3,000 2,000 1,000 0 (1,000) (2,000) ■Rent increase amount ■Rent decrease amount (3,000) Net amount Period ended Period ended Period ended Period ended Period ended Feb. 2015 (50) Aug. 2015 +1,580 Feb. 2016 +764 Aug. 2016 +1,421 Feb. 2017 +856 Monthly Occupancy Rate Residential Properties 100% 99% 98% 97.0% 96.5% 97% 96.4% 96.5% 95.8% 95.6% 95.7% 95.8% 96.0% 96.2% 96.2% 96.1% 96% 95% 16/3 16/4 16/5 16/6 16/7 16/8 16/9 16/1016/1116/12 17/1 17/2 18#20Operation Status of Retail Properties Operation Status Occupancy remained at a high level of 99.4% . . . Move-ins: units iQiz GATE Urawa LO DEP 食生活 ♥♥ ロピア Daiwa House REIT Investment Corporation Remaining Lease Term (annual rent basis) Average Remaining Lease Term 7.7 years 15 years or more 9.8% 10 to less than 15 years 35.1% 5 to less than 10 years 23.3% Less than 5 years 31.8% Lease Term (annual rent basis) • Move-outs: 9 units < QIZ GATE URAWA > Replacing tenant with a competitive food supermarket → LOPIA will newly open in late May 2017 Renewal construction work in time with opening of LOPIA • Currently leasing 5 vacant units < FOLEO Hirakata > Planning renewal construction work in time with contract renewal of 7 units in Sep. 2017 Rent Revision / Lease Contract Renewal of Major Tenants Rent revision: ACROSSMALL Shinkamagaya and ACROSSPLAZA Miyoshi → Revised rent on equal terms Average Lease Term 14.3 years 10 years or more 75.2% Less than 10 years 24.8% // Monthly Occupancy Rate Rent Type (leased area basis) Retail Properties Fixed rent 94.6% Ratio of Fixed Rent Fixed rent + variable rent 99.4% 99.4% 5.2% 99.3% 99.8% 100.0% 99.8% 99.8% 99.6% 99.4% 99.6% 99.6% 99.6% 99.6% 99.6% 99.6% 99.6% 99.6% 99.2% 99.0% 16/3 16/4 16/5 16/6 16/7 16/8 16/9 16/10 16/1116/12 17/1 17/2 Variable rent 0.2% As of April 11, 2017 19#21Sustainability Initiatives Established Sustainability Policy 3 properties newly received DBJ Green Building Certification Establishment of 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. shares the Daiwa House Group's basic approach as DHR's asset manager, and considers that including consideration for environment, society, and governance 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. DBJ Green Building Certification DHR has received the certification for logistics, residential and retail properties Newly Certified Royal Parks Toyosu D Project Machida Logistics Residential Prevention of global warming Harmony with the natural environment Conservation of natural resources Prevention of chemical pollution Daiwa House REIT Investment Corporation Establishment of an internal framework and initiatives for employees Building of trust relationships with external stakeholders Promotion of communication through information disclosure Compliance with laws and regulations, and risk management Certified ACROSSMALL Shinkamagaya D Project Hachioji Retail Logistics Pacific Royal Court Minato Mirai Urban Tower Residential DBJ Green Building DBJ Green Building DBJ Green Building DBJ Green Building DBJ Green Building 2016 23 2016 COO 2016 CO 2016 လာသ 2016 CO 20 20#22Financial Status (1) Control LTV within 40% to 50% range and maintain stable financial operation O Daiwa House REIT Investment Corporation DHR currently has 38 bn yen of debt capacity for acquisition of up to 50% of LTV (excluding goodwill) // Financial Status // Lender Formation As of Sep. 30, 2016 As of Apr. 14, 2017 Change Sumitomo Mitsui Trust Bank (mil yen) 49,139 Sumitomo Mitsui Banking 47,130 Corporation Interest-bearing debt 253,163 mil yen 282,568 mil yen +29,405 mil yen Mizuho Bank 42,630 266,568 mil yen Bank of Tokyo-Mitsubishi 42,537 UFJ Loans 242,163 mil yen 266,568 mil yen +24,405 mil yen Mitsubishi UFJ Trust and 15,927 Banking Corporation Bonds 11,000 mil yen 16,000 mil yen +5,000 mil yen Development Bank of 14,400 Japan Aozora Bank 12,561 LTV 41.8% 41.6 % -0.2 p.p. Norinchukin Bank 11,610 (including goodwill) Resona Bank 9,500 LTV 48.1% 46.9 % -1.2 p.p. Mizuho Trust & Banking 5,908 (excluding goodwill) Nippon Life Insurance 3,500 Long-term interest- Shinsei Bank 3,000 76.5% 89.9% +13.4 p.p. bearing debt ratio Shinkin Central Bank 2,500 Mitsui Sumitomo 2,000 Fixed interest ratio 87.1 % 93.8 % +6.7 p.p. Insurance Bank of Fukuoka 2,000 Chiba Bank 1,465 Average interest rate 0.77 % 0.76 % -0.01 p.p. Shizuoka Bank 760 Average remaining 4.3 years 5.6 years +1.3 years Credit Rating maturity JCR R&I Commitment line 20,000 mil yen 20,000 mil yen AA- (Positive) A+ (Stable) 21#23Financial Status (2) Further lengthening and diversifying debt maturities and fixing interest rates Issued 5-year and 10-year investment corporation bonds in Dec. 2016 //Debt Financing Period ended Feb. 2017 New Financing (as of financing) Repayment (as of repayment) Repayment amount Daiwa House REIT Investment Corporation Financing amount 10,000 mil yen 54,800 mil yen Refinancing Average interest rate 0.64 % Average interest rate Average maturity 9.1 years Average maturity 0.89 % 4.1 years Average interest rate Refinancing (as of financing) Financing amount 54,300 mil yen 0.51 % Average maturity 7.3 years Period ending Aug. 2017 (as of April 14, 2017) New Financing (as of financing) Repayment (as of repayment) Refinancing (as of financing) Financing amount 29,500 mil yen Repayment amount 24,095 mil yen Financing amount 24,000 mil yen Refinancing Average interest rate 0.73 % Average maturity 8.1 years Average interest rate Average maturity 0.82 % Average interest rate 0.65 % 4.0 years Average maturity 7.5 years // Diversified Maturity Ladder (million yen) 30,000 25,000 20,000 15,000 10,000 5,000 0 Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. 2017 2018 2019 2020 2021 2022 ■Long-term loans Bonds Feb. Aug. 2023 Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. 2024 2025 2026 2027 2028 22#245. Financial Forecasts#25Daiwa House REIT Investment Corporation Financial Forecasts Aug. 2017 DPU Forecast 4,800 yen from earnings contribution of new acquisitions Feb. 2018 DPU Forecast 5,050 yen Periods ending Aug. 2017 and Feb. 2018 Forecasts Major Variation Factors for Period ended Feb. 2017 Result Forecast Period ending Period-on- Aug. 2017 period change Period ending Feb. 2018 Forecast (million yen) Period-on- period change Aug. 2017 Forecast vs Feb. 2017 Result Increase in operating revenue +1,809 mil yen Operating revenue 17,531 19,341 1,809 19,650 309 *Full period contribution of 7 properties acquired in Feb. 2017 period ■Contribution of 15 property acquired in Apr. 2017 ⚫Lease cancellation penalty from tenants Operating expenses 11,963 11,670 -293 11,773 103 Decrease in operating expenses +293 mil yen Amortization of goodwill 1,982 1,982 1,982 • Expenses for 7 properties acquired in Feb. 2017 period •Expenses for 15 property acquired in Apr. 2017 Property taxes 1,175 1,226 51 1,226 0 • Property taxes for the properties acquired in 2016 • Absence of merger fees Depreciation 3,361 3,713 352 3,788 74 Increase in non-operating expenses -403 mil yen Operating income 5,567 7,670 2,102 7,876 206 Interest and borrowing ⚫Investment unit issuance expenses • Increase in interest expenses related to new loans 1,123 1,272 148 1,309 37 related expenses Ordinary income 4,474 6,146 1,672 6,569 423 /Major Variation Factors for Extraordinary loss 80 15 -64 16 0 Feb. 2018 Forecast vs Aug. 2017 Forecast Net income 4,393 6,129 1,736 6,552 422 Reversal of retained earnings 2,899 1,982 -917 1,982 Increase in operating revenue +309 mil yen Total distribution 7,292 8,112 819 8,534 422 <Per unit information> *Full period contribution of 15 properties acquired in Apr. 2017 ⚫Absence of lease cancellation penalty from tenants Increase in operating expenses -103 mil yen Net income per unit Reversal of retained earnings per unit (A) 2,891 yen 3,627 yen 736 yen 3,877 yen 250 yen *Full period expenses for 15 properties acquired in Apr. 2017 (B) 1,908 yen 1,172 yen -736 yen 1,172 yen Decrease in non-operating expenses +216 mil yen DPU (A)+(B) 4,800 yen 4,800 yen 5,050 yen 250 yen ⚫Absence of investment unit issuance expenses incurred in the previous period • Increase in interest expenses [forecast as of Oct. 2016] [4,700 yen] [4,720 yen] 24#26Distribution Policy Treatment of Goodwill Goodwill recognized from the merger 79,289 million yen Goodwill is recorded as intangible non-current assets on B/S * Amortized over 20 years using the straight-line method Use of Retained Earnings Retained earnings 14,806 million yen (after a reversal for the period ended Feb. 2017) To pay distribution equivalent to goodwill amortization Reversal of retained earnings To cover loss on sale of property, etc. To address dilution as a result of issuance of units Reversal of retained earnings Tax-loss carry-forwards Distribution policy Net income Distributions After the merger Daiwa House REIT Investment Corporation Reversal of retained earnings Distribution in excess of earnings After completion of reversal of retained earnings After completion of goodwill amortization Utilizing retained earnings, the portion equivalent to goodwill amortization will be covered and be distributed Distribution in excess of earnings as allowance for adjustment of temporary differences Distribution level will not be affected by goodwill amortization 45,031 million yen (Note) Goodwill to be amortized over 20 years (Note) 44,524 million yen can be applied to offset taxable income through August 31, 2018 and 507 million yen can be applied to offset taxable income through February 28, 2021. When gain on sale of property, etc. is realized or other factors Accumulate retained earnings Realize stable distributions 25#27PORTS Tastefu Life Stage EPO FG GOLFS FOLED О Daina House Built by Daha House Appendix FOLED スシロー Fa SPORTS DEPO GOLFS SHOE PLAZA P- 12-1#28Acquisitions in April 2017 (1) LM-001 DPL Misato OPL Daiwa House REIT Investment Corporation Logistics (Multi-tenant-type) LB-035 D Project Kawagoe III Location Kawagoe City, Saitama Construction date Jul. 1, 2014 Logistics (BTS-type) Acquisition price Appraisal value Appraisal NOI yield 7,200 mil yen 7,260 mil yen 5.0% Lease term Remaining lease 10.0 years 7.2 years term 39,572.32 m² Kosuge JCT Located approx. 30 km from central Tokyo, excellent accessibility to National Route 16, Kawagoe IC of Kanetsu Expressway and Kawajima IC of Ken-O Expressway ■GFA of approx. 12,010 tsubo, 4-story property (3- story for the warehouse), solar panels on the roof Kawaguchi JCT Misato JCTA Bijogi JCT Dizumi JCT Ichikane Takaido IC Tukya Sta. Urayasu IC Tokyo IC Tatsum JCT Kasai IC LB-036 D Project Kazo Logistics (BTS-type) Adjacent to Misato JCT, an intersection of Metropolitan Expressway, Joban Expressway and Tokyo Gaikan Expressway, a strategic location for logistics in terms of access within inland greater Tokyo area Location Construction date Acquisition price Appraisal value Misato City, Saitama Jul. 8, 2013 16,831 mil yen 16,900 mil yen Location in industrial area allows 24-hour operation. Appraisal NOI yield 4.5% Nearby population provides advantages for employee hiring GFA of approx. 14,955 tsubo, 5-story multi-tenant type facility. Solar panels on the roof Two-sided car berths on 1st floor, 2-way ramp way allows trucks direct access to each floor for efficient delivery ■Ceiling height 5.5m (1st to 4th floor) and 5.75m (5th floor), floor weight capacity 1.5t/sqm, pillar interval spacing of 11.5m x 11.5m Average lease term 8.7 years Average remaining lease term 6.3 years Total leasable area 55,864.93 m² Tenants Kokubu Group, ARATA, Kato Sangyo, Nitori, etc. Located 50 km from central Tokyo, access to central Saitama and central Tokyo using National Route 4 or 122, and Tohoku area and surrounding areas by using Kazo IC of Tohoku Expressway ■GFA of approx. 5,537 tsubo, 4-story property Total leasable area Tenant Hitachi Transport System Kanto kehna Kish saks Ukogowakitometo 10 Kewajima 10 Tchru Lxpressway Tsur castima L Elna Exp No 10 miya Sra kbar ta Kiwighei Location Construction date Acquisition price Appraisal value Appraisal NOI yield Lease term Remaining lease term Total leasable area Tenant Kazo City, Saitama Jul. 14, 2014 3,300 mil yen 3,350 mil yen 5.1% 10.6 years 7.9 years 18,371.10 m² Itochu Logistics Tohoku ExorcsGWAY Kaza IC gast mar Neww.item Inte: Sky Bony Ken Co Ksh roka JCT Drawa IC Kawaguchi JCT 27#29Acquisitions in April 2017 (2) Daiwa House REIT Investment Corporation LB-037 D Project Urayasu III Location Construction date Urayasu City, Chiba Nov. 1, 2005 LB-039 D Project Kyotanabe Location Kyotanabe City, Kyoto Construction date Sep. 28, 2012 Logistics (BTS-type) Acquisition price Appraisal value Appraisal NOI yield Lease term Remaining lease 19.8 years 8,500 mil yen 8,880 mil yen Logistics (BTS-type) 4.8% Acquisition price Appraisal value Appraisal NOI yield 3,520 mil yen 3,550 mil yen 5.8% 8.4 years term Total leasable area Tenant Lease term 20.1 years 39,441.32 m² Daiwa Logistics Remaining lease 15.6 years term Total leasable area 10,965.68 m² Kawaguchi JCT Tenant Hutech norin Misato CI Located 2 to 3 km from National Route 357 along the Metropolitan Expressway Wangan Route with the closest interchanges being Maihama and Urayasu, a major distribution base adjacent to a large-scale consumer area. Located approx. 20 km from the Tokyo port, well-suited for importing logistics and large-scale distribution base for the greater Tokyo area ■GFA of approx. 11,828 tsubo, 5-story property D Project Tomisato LB-038 Kosuge JBT Tokyo Sta Ichikawa IC Hanawa D Urayasu IC Kasai IC Tutson JCT Mahama IC Veveta 1120011Cd can Expressway tele Mature b semite Hi akela Ira cata Gakker IC Teb Nah CN Lani Keiha Located 30 km from central Osaka city and 20 km from central Kyoto city, enabling delivery to surrounding areas and longer-distance transportation by accessing the Daini Keihan St. or the Tanabe Nishi IC of the Keinawa Expressway ■GFA of approx. 3,317 tsubo, 2-story property consisting of a freezing and refrigeration facility Saishin-acressway Tekatzuk Ota Keinawa Expressway Location Logistics (BTS-type) Construction date Acquisition price Appraisal value Appraisal NOI yield Lease term Remaining lease term Tomisato City, Chiba Apr. 23, 2015 5,000 mil yen LB-040 D Project Sendai Izumi Location Sendai City, Miyagi Construction date Logistics (BTS-type) Acquisition price Apr. 1, 2014. 1,510 mil yen 5,030 mil yen 5.1% 10.8 years 0 Appraisal value Appraisal NOI yield Total leasable area Tenant 1,560 mil yen 5.7% Total leasable area Tenant 8.8 years 36,113.25 m² Tokyo Nohin Daiko Road 10,764.05 m² Mitsubishi Shokuhin Toriya lot of Sendel Hokubu Tomiya JOT Located 50 km from central Tokyo, coverage area of central Chiba and east Tokyo by National Route 296, central Saitama by National Route 16, and surrounding area by Tomisato IC of Higashi Kanto Expressway, a transit center for air cargo nearby Narita Airport ■GFA of approx. 10,991 tsubo, 6-story property beligula nesil tow Tie C Narita Neito Sta Narita Shisul Airnort Higashi-Kartel Cincy Sakura IC vance CT Chibs Sta. Redcat Exy expressed Tohaku Expressway ■Located approx. 16 km from central Sendai City, providing access to central Sendai, and to Tohoku area through Tohoku Expressway's Izumi IC ■GFA of approx. 3,648 tsubo, 3-story property, well-suited for operating trucks on the premises, with a parking lot with 84 parking spaces Sendai Sta Serce Mycel C Izumi IC 28#30Acquisitions in April 2017 (3) LB-041 D Project Oyama Location Daiwa House REIT Investment Corporation Construction date Logistics (BTS-type) Acquisition price Oyama City, Tochigi Mar. 1, 2010 (Extension) Mar. 1, 2014 2,000 mil yen LB-043 D Project Tatebayashi Location Tatebayashi City, Gunma Construction date Sep. 1, 2015 Logistics (BTS-type) Acquisition price Appraisal value 3,100 mil yen 3,120 mil yen Appraisal value 2,010 mil yen Appraisal NOI yield 5.7% Appraisal NOI yield 5.8% Lease term 15.0 years Total leasable area 14,106.91 m² Tenant Mitsubishi Shokuhin Kar clawa 3 Remaining lease term 13.4 years Total leasable area Tenant Hitachi Transport System Kanto 13,521.56 m² Kizu Kunte Expressway Oyama Sta ■Located approx. 80 km from central Tokyo, coverage area of Maebashi city, central Saitama through Kita-Kanto Expressway and National Routes 4 and 50, and Tohoku area through Tohoku Expressway ■GFA of approx. 3,960 tsubo, 2-story property Sano Sto ant Fulkka Telesyas i C Kne Tohoku Expressway Coverage area of Maebashi City and central Saitama by National Route 122, and Tohoku area by accessing Tohoku Expressway's Tatebayashi IC and Sano Fujioka IC ■GFA of approx. 4,105 tsubo, 2-story property, solar panels on the roof Kay cka 3 Kizu kynte Expressway! Sano St Oyama Sta Sant Hallka Telesyas IC Клеп бута Tohoku Expressway LB-042 D Project Sano Location Logistics (BTS-type) TORYU 11 Construction date Acquisition price Appraisal value Appraisal NOI yield Sano City, Tochigi May 12, 2014 1,780 mil yen 1,780 mil yen 5.8% LB-044 D Project Kakegawa Location Logistics (BTS-type) Construction date Acquisition price Kakegawa City, Shizuoka Aug. 1, 2014 6,000 mil yen 0 Lease term Remaining lease term 15.0 years 12.2 years Total leasable area Tenant 15,668.44 m² Toryusha Tenant Lite a site Kay ckawa 3 Appraisal value Appraisal NOI yield Lease term Remaining lease term Total leasable area 20.0 years 17.3 years 39,341.44 m² Hitachi Transport System Chubu 6,070 mil yen 5.8% Kiukyntc Expre ■Located approx. 80 km from central Tokyo, coverage area of Kita Kanto area, Maebashi and surrounding areas by National Route 50 and Tohoku area from Tohoku Expressway's Sano Fujioka IC (approx. 3 km away) ■GFA of approx. 4,733 tsubo, 2-story property, solar panels on the roof Sana Sta Oyama Sta Bent Hallosa Telesyas C Клед була Tohoku Expresswest Coverage area of Shizuoka City and central Hamamatsu City by National Route 1, and Tokyo, Chubu and Kansai areas by accessing Tomei Expressway's Kakegawa IC =mareiteiu ---- jn- Tornei C ama Expresswa GFA of approx. 10,252 tsubo, 5-story property aka amama Kakegawa Sa Colossa し Arart lamamatau Sta 29#31Acquisitions in April 2017 (4) Construction date Hiroshima City, Hiroshima Dec. 19, 2014 3,820 mil yen LB-045 D Project Hiroshima Seifu Location Logistics (BTS-type) Acquisition price Appraisal value Appraisal NOI yield 5.9% Enable delivery to Yamaguchi and Okayama areas via Hiroshima Seifushinto IC, connecting Chugoku Expressway running inland and the Sanyo Expressway running along the coast of the Chugoku area, and access to central Hiroshima City via Hiroshima Expressway 4 ■GFA of approx. 5,764 tsubo, 2-story property Total leasable area Tenant 3,860 mil yen 19,004.72 m² MITSUI FOODS Hircer maki Chugoku Expressway OHiroshima cits IC Hiushre Expretoway Hiroshima seifushinto ICQ Himost ma JC sukaich IC Sarvo Expressway Viyajima Smart C Эта Hrasnima Niho C Location RE-143 Castalia Shinsakae II Residential (Compact/Family) Daiwa House Group Sublease Located 9 minutes walking distance to Yabacho Station and also accessible to Sakae Station Walking distance to the commercial center Sakae and various stores and restaurants located along the main road, making this property convenient for everyday life The variety of apartment types can meet the various needs of end- tenants OT-004 Sharp Hiroshima Building Daiwa House REIT Investment Corporation Location Construction date Acquisition price Appraisal value Appraisal NOI yield Structure/floors Leasable units Total leasable area Tenant Nagoya City, Aichi Jan. 25, 2016 1,800 mil yen 1,850 mil yen 5.5% RC, 12-storied 99 units 4,425.46 m² Daiwa Living Management erent vaches" Salac Sa Sasana Frater kate Tostesoo Entrance Naruci Haga tr Metzing Wasage 30% Yetoch: Sta -aduser ایا این ابل acy Expressvid's Hay Chia Hiroshima City, Hiroshima LB-046 D Project Tosu || Tosu City, Saga Construction date Dec. 21, 2016 Logistics (BTS-type) Acquisition price Appraisal value Appraisal NOI yield Lease term 1,700 mil yen Remaining lease term Total leasable area Tenant 1,740 mil yen 5.5% 7.0 years 6.7 years 13,012.50 m² Marukyo Transportation Located 1.5 km from Tosu IC, the inland point where Kyushu Expressway runs north-south, Nagasaki Expressway runs east-west, and the Oita Expressway in the Kyushu area intersects Having the advantage of covering all areas of Kyushu, primarily the northern area of Kyushu, and easy access to local roads such as National Routes 3, 34 and 500 ■GFA of approx. 3,902 tsubo, 4-story property Hakata Sta. Jazailu (2 Kyushi Expressway Kyushu Sfinkansen Ilaruda Sta Tesu c Oita Expressway Nagasaki Expressway Shin Tosu Sta sunume IC SHARP Location Other (Office) Construction date Acquisition price Appraisal value Appraisal NOI yield Total leasable area Jan. 29, 2016 1,850 mil yen 1,890 mil yen 5.7% Tenant 3,064.89 m² Sharp Located on a main street of National Route that connects to JR Hiroshima Station and Sanyo Expressway's Hiroshima IC. Area with high convenience and visibility, suitable as a sales office for manufacturers hub for covering the surrounding area Standard floor area of approx. 300 tsubo, 3-story property consists of an office with storage, and has a parking lot with approx. 48 parking spaces AHMARHUR-OFC Orarista Shimogion Sca Kate Line Trashi Exce Saryusha Hiustina 1 Gersitat - 63 Jasan I g (Babi_re rachm S By Line Hnox S Teza Sta 30#32Historical Financial Data Daiwa House REIT Investment Corporation Feb. 2015 Aug. 2015 Feb. 2016 Aug. 2016 (A) Feb. 2017 Operating days 181 days 184 days 182 days 184 days (B) 181 days Change (B-A) -3 days Operating Revenue 8,693 mil yen 9,356 mil yen 9,662 mil yen 9,691 mil yen 17,531 mil yen 7,840 mil yen Operating Income 3,881 mil yen 3,925 mil yen 3,947 mil yen 3,959 mil yen 5,567 mil yen 1,607 mil yen -4 mil yen Gain/loss on sale of property Ordinary Income 3,081 mil yen 3,146 mil yen 3,177 mil yen 3,214 mil yen 4,474 mil yen -4 mil yen 1,259 mil yen Net Income 3,080 mil yen 3,145 mil yen 3,177 mil yen 3,213 mil yen 4,393 mil yen 1,179 mil yen DPU 8,691 yen Number of investment units issued 373,870 units 4,460 yen 747,740 units 4,501 yen 747,740 units 4,537 yen 747,740 units 4,800 yen 1,519,280 units Payout ratio 105.5% 106.0% 106.0% 105.6% 166.0% 263 yen 771,540 units 60.4 p.p. Total Assets 238,730 mil yen 258,400 mil yen 258,590 mil yen 258,266 mil yen 604,142 mil yen 345,875 mil yen Net Assets 111,455 mil yen 111,352 mil yen 111,194 mil yen 111,042 mil yen 330,304 mil yen 219,262 mil yen Unitholders' Capital 61,703 mil yen 61,703 mil yen 61,703 mil yen 61,703 mil yen 61,703 mil yen Capital Surplus 28,241 mil yen 28,241 mil yen 28,241 mil yen 28,241 mil yen Interest-bearing debt 122,463 mil yen 141,663 mil yen 141,663 mil yen 141,663 mil yen 247,667 mil yen 253,163 mil yen 219,425 mil yen 111,500 mil yen LTV (Including goodwill) 51.3% 54.8% 54.8% 54.9% 41.9% -13.0 p.p. 48.1% LTV (Excluding goodwill) Net Assets per unit (Note 1) 149,056 yen 148,918 yen 148,707 yen 148,504 yen 217,408 yen 68,904 yen NAV per unit (Note 1) 177,581 yen 185,450 yen 191,454 yen 195,377 yen 248,462 yen 53,085 yen FFO per unit (Note 1) (Note 2) 6,385 yen 6,752 yen 6,948 yen 7,024 yen 6,469 yen -555 yen (Note 1) "Net Assets per unit", "NAV per unit" and "FFO per unit" for the period ended February 2015 are stated using the per unit figures divided by two, factoring the impact of two-for-one unit split effective as of March 1, 2015. (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 property +/- extraordinary loss or gain) / number of investment units issued 31#33Historical Portfolio Data Daiwa House REIT Investment Corporation Feb. 2015 Aug. 2015 Feb. 2016 Aug. 2016 (A) Feb. 2017 (B) Change (B-A) Number of properties 136 properties 141 properties 142 properties 142 properties 189 properties 47 properties Total acquisition price 237,626 mil yen 255,376 mil yen 256,349 mil yen 256,349 mil yen 513,772 mil yen 257,423 mil yen 38.1 % 38.1 p.p. Ratio of logistics properties Ratio of residential properties 99.1% 99.2% 99.2% 99.2% 50.2% -49.0 p.p. 9.8% 9.8 p.p. Ratio of retail properties Ratio of hotel properties Ratio of other assets 0.9% 0.8% 0.8% 0.8% 1.9% Unrealized gain / loss 21,328 mil yen 27,316 mil yen 31,963 mil yen 35,048 mil yen 47,179 mil yen Leasable area 451,292.44 m² 503,899.79 m² 505,935.16 m² 505,935.16 m² 1,605,625.31 m² 1.1 p.p. 12,130 mil yen 1,099,690.15 m² Properties acquired during the period 2 properties / 2,265 mil yen 5 properties / 17,750 mil yen 1 property / 973 mil yen 7 properties/22,830 mil yen 7 properties / 22,830 mil yen 1 property / 370 mil yen 1 property / 370 mil yen Properties sold during the period Occupancy rate 97.1% 95.9% 96.0% 96.1% 99.0% 2.9 p.p. Real estate rental revenue 8,693 mil yen 9,356 mil yen 9,662 mil yen 9,691 mil yen 17,531 mil yen 7,840 mil yen Real estate rental expenses 3,875 mil yen 4,438 mil yen 4,688 mil yen 4,746 mil yen 7,493 mil yen 2,747 mil yen Real estate rental income 4,817 mil yen 4,917 mil yen 4,974 mil yen 4,944 mil yen 10,037 mil yen 5,092 mil yen Depreciation NOI (Note) 1,689 mil yen 1,897 mil yen 2,012 mil yen 2,033 mil yen 3,361 mil yen 1,328 mil yen 6,507 mil yen 6,814 mil yen 6,986 mil yen 6,977 mil yen 13,398 mil yen 6,420 mil yen NOI yield 5.5% 5.4% 5.5% 5.4% 5.3% -0.1 p.p. (Note) NOI: Real estate rental business revenue - real estate rental business expenses + depreciation 32#34Balance Sheets Daiwa House REIT Investment Corporation (thousand yen) Period ended Aug. 2016 Period ended Feb. 2017 Liabilities Period ended Aug. 2016 Period ended Feb. 2017 25,446,827 25,199,993 222,317 219,669 Machinery and equipment, net 384,354 389,326 Tools, furniture and fixtures, net 389,715 375,707 Land 22,453,490 22,453,490 Buildings in trust, net 103,228,969 214,004,771 Structures in trust, net 831,554 3,389,114 Machinery and equipment in trust, net 1,218,678 1,631,215 Tools, furniture and fixtures in trust, net Land in trust 340,288 369,510 85,002,219 226,663,386 Construction in progress in trust 380 239,518,795 5,022 494,701,208 77,306,836 5,279,705 5,500,051 1,740 3,092 5,284,538 1,448 2,825 82,811,162 Assets Current assets Cash and deposits Cash and deposits in trust Operating accounts receivable Prepaid expenses Consumption taxes receivable Other Current liabilities 4,960,930 4,427,398 110,856 11,110,819 Operating accounts payable 789,782 1,210,266 9,416,246 Short-term loans 10,000,000 6,000,000 169,018 Current portion of investment corporation bonds 3,000,000 3,000,000 255,842 447,439 Current portion of long-term loans 59,295,000 43,495,000 487,928 Accounts payable - other Allowance for doubtful accounts 3,034 (4,078) 4,946 Accrued expenses Total current assets 9,753,983 (5,521) 21,630,877 Non-current assets Property, plant and equipment Income taxes payable Consumption taxes payable Advances received Unearned revenue 99,151 638,221 605 75,311 1,089,119 605 22,971 901,603 1,935,780 221,735 Buildings, net Structures, net 334,234 356,801 43,852 Total current liabilities Non-current liabilities Long-term loans 75,081,569 57,428,471 6,000,000 16,000,000 63,368,000 184,668,000 1,262,357 277,602 288,912 Tenant leasehold and security deposits in trust 2,072,139 12,515,805 424,558 80,147 429,379 Total property, plant and equipment Intangible assets Goodwill Leasehold rights in trust Software Trademark rights Total intangible assets Investments and other assets 1,164,700 Total non-current liabilities Total liabilities 72,142,301 147,223,870 216,409,303 273,837,775 Deposits received Other Investment corporation bonds Long-term unearned revenue Tenant leasehold and security deposits Provision for loss in litigation Asset retirement obligations Derivatives liabilities Net assets Investment securities Long-term prepaid expenses Guarantee deposits 396,454 10,261 9,291 1,453,688 Unitholders' equity Unitholders' capital Surplus Capital surplus 61,703,224 61,703,224 28,241,587 247,667,563 Reserve for distribution 17,884,290 17,705,349 Lease and guarantee deposits in trust 3,250,134 10,261 3,414,720 Unappropriated retained earnings 3,213,554 4,393,259 Total surplus 49,339,433 269,766,172 Other Allowance for doubtful accounts 42,488 (24,058) 42,488 Total unitholders' equity 111,042,657 331,469,396 Total investments and other assets 3,675,279 (24,058) 4,906,390 Deferred gains or losses on hedges (1,164,700) Total net assets 111,042,657 330,304,696 Total non-current assets 248,478,614 582,418,762 Deferred assets Total liabilities and net assets 258,266,528 604,142,471 Investment corporation bond issuance costs Total deferred assets 33,930 33,930 Total assets 258,266,528 92,831 92,831 604,142,471 33#35Statements of Income Daiwa House REIT Investment Corporation Feb. 2017 Period ended Aug. 2016 (thousand yen) Period ended Statements of Cash Distributions Operating revenue Rental business revenue Other rental business revenue Total operating revenue 9,020,350 16,606,592 670,787 924,550 | Unappropriated retained earnings 9,691,138 17,531,143 || Reversal of reserve for distribution Operating expenses III Distributions Expenses related to rent business 4,746,584 7,493,903 [Distributions per unit] Loss on sale of real estate properties Asset management fees Asset custody fees 609,840 23,083 4,207 983,471 26,204 IV Retention of reserve for distribution Retention of retained earnings for temporary difference adjustment [4,537] 23,874,535 (yen) Period ended Aug. 2016 3,213,554,837 Period ended Feb. 2017 202,816,078 4,393,259,342 17,669,020,696 3,392,496,380 7,292,544,000 [4,800] 21,388,890 14,748,347,148 Administrative service fees 65,557 Directors' remuneration 6,600 Merger expenses Amortization of goodwill Provision of allowance for doubtful accounts 373 Other operating expenses 279,286 Total operating expenses 5,731,326 Operating Income 3,959,811 72,780 6,600 1,042,059 1,982,226 1,974 350,360 11,963,787 5,567,356 V Retained earnings carried forward Rental Revenue and Expenses Period ended Aug. 2016 (thousand yen) Period ended Feb. 2017 A. Real estate rental revenue Rental revenue Rent 8,711,310 Non-operating income Common area charges 309,039 Interest income 43 109 Total real estate rental revenue 9,020,350 16,184,156 422,436 16,606,592 Gain on forfeiture of unclaimed distributions 4,046 Refunded consumption taxes 5,180 21,388 Other rental revenue Facility charges 287,364 338,545 Gain on adjustment of liabilities 6,853 8 Incidental revenue 56,177 253,928 Gain on donation of non-current assets 5,433 Other 327,245 332,076 Other 3 19 Total other rental revenue 670,787 924,550 Total non-recurring income 10,947 32,138 Total real estate rental revenue 9,691,138 17,531,143 Non-operating expenses Interest expenses 539,652 827,814 B. Real estate rental expenses Rental expenses Interest expenses on investment corporation bonds 32,451 45,953 Management fees 956,941 1,233,882 Amortization of investment corporation bond 5,025 7,898 Utilities 121,597 285,590 issuance costs Borrowing related expenses 153,724 241,696 Taxes and public dues 552,179 1,175,602 Provision of allowance for doubtful accounts 24,058 Repairs and maintenance expenses 251,273 569,404 Other 1,686 2,119 Restoration costs 298,033 293,588 Total non-recurring expenses 756,599 Ordinary Income 3,214,159 Extraordinary losses Income before income taxes 3,214,159 1,125,483 4,474,011 80,147 4,393,864 Insurance expenses 14,511 25,089 Custodian fees 43,667 61,639 Depreciation 2,033,025 3,361,190 Other operating expenses 475,353 487,914 Total income taxes 605 605 Total real estate rental expenses 4,746,584 Net income 3,213,554 Unappropriated retained earnings 3,213,554 4,393,259 4,393,259 C. Income from real estate rental business (A-B) 4,944,553 7,493,903 10,037,240 34#36Market Environment for Logistics Properties Supply and Demand of Logistics Properties for Lease in the Three Major Metropolitan Areas Daiwa House REIT Investment Corporation Development of Medium-to-Large Scale Logistics Properties in the Three Major Metropolitan Areas (thousand m²) (thousand m²) 2,400 2,000 1,600 1,200 800 400 0 12% 4,000 3,500 10% 3,000 8% 2,500 6% 2,000 4% 1,500 1,000 2% 0% 500 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 New supply (LHS) New demand (LHS) Vacancy rate (RHS) Average Offered Rent for Logistics Properties in the Three Major Metropolitan Areas (yen/tsubo/per month) 6,000 5,000 4,000 3,000 2,000 1,000 Source: CBRE (planned) (planned) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 ■Greater Tokyo area ■Greater Nagoya area ■Greater Osaka area Other areas Source: CBRE // Proportion of Advanced Large-scale Logistics Properties Japan Greater Tokyo area 2008 2009 2010 2011 2012 2013 2014 2015 2016 Greater Tokyo area Greater Nagoya area Greater Osaka area Three major metropolitan areas Source: CBRE Advanced large-scale logistics properties 3.3% Other logistics properties 96.7% Advanced large-scale logistics properties 7.9% Other logistics properties 92.1% Source: CBRE 35#37Market Environment for Residential Properties Estimated Number of Households in Tokyo (including Forecasts) // Rent Per Tsubo for Apartments in Tokyo (yen/tsubo/per month) (thousand households) 8,000 15,000 14,000 6,000 6,637 6,762 6,828 6,856 6,382 13,000 4,000 4,532 4,728 4,826 4,889 4,927 12,000 11,000 2,000 10,000 0 9,000 2010 2015 2020 2025 2030 Number of households in Tokyo Number of households in Tokyo 23 Wards Source: "Forecast of Number of Households in Tokyo" statistical data (March 2014), Tokyo Metropolitan Government 10-1H 510-2H 11-1H 11-2H Daiwa House REIT Investment Corporation 12-1H 12-2H 13-1H 13-2H 14-1H 14-2H 15-1H 15-2H 16-1H 16-2H 5 central wards (40 to less than 80 m²) 23 wards (40 to less than 80 m²) 5 central wards (less than 40 m²) 23 central wards (less than 40 m²) Source: Compiled by the Asset Manager from data published by Japan Real Estate Institute in "Housing Market Index, Second Half 2016". Estimated Number of Households (including Forecasts) Estimated Population (Including Forecasts) (thousand households) (thousand people) 60,000 140,000 50,000 120,000 51,842 52,904 53,053 52,439 128,057 127,110 40,000 51,231 100,000 124,100 120,659 116,618 80,000 30,000 60,000 20,000 27,053 28,498 29,307 29,621 29,500 29,484 33,952 36,124 36,573 36,849 40,000 10,000 20,000 0 0 2010 2015 2020 2025 2030 2010 2015 2020 2025 2030 Number of households Single + DINKS households Source: National Institute of Population and Social Security Research, Ministry of Internal Affairs and Communications -Population -Population aged 65 and over Source: National Institute of Population and Social Security Research 36#38Daiwa House REIT Investment Corporation Market Environment for Retail and Hotel Properties Retail Sales (YoY Change) Number of Overseas Visitors to Japan 15% 10% 5% 0% -5% -10% -15% 14/7 14/10 15/1 15/4 15/7 15/10 16/1 16/4 Retail sales 16/7 16/10 17/1 Supermarket sales -Shopping center sales (same-store basis) 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, "Report on the Monthly Sales Statistical Survey of Shopping Centers", The Japan Council of Shopping Centers Basic Expenditure and Selective Expenditure (YoY Change) 10% (thousand visitors) 30,000 24,039 25,000 19,737 20,000 15,000 13,413 10,364 8,611 10,000 8,358 6,790 6,219 5,000 2009 2010 2011 2012 2013 2014 2015 ■ Asia ■North America Europe ■ Other 2016 Source: Japan National Tourism Organization (JNTO) Overseas Visitors in 2016 by Country and Region 5% 0% -5% -10% -15% 14/7 14/10 15/1 15/4 15/7 15/10 16/1 16/4 16/7 16/10 17/1 Basic expenditure Selective expenditure Source: "Family Income and Expenditure Survey", Ministry of Internal Affairs and Communications 0 China 26.5% Korea 21.2% Taiwan 17.3% Hong Kong 7.7% Thailand 3.7% Other Asia Outside Asia 8.6% 15.0% Source: Japan National Tourism Organization (JNTO) 37#39Portfolio List as of April 11, 2017 (1) Daiwa House REIT Investment Corporation Property number Property name Location Acquisition price (million yen) Occupan Acquisition Investme nt ratio Leasable area (m²) cy rate (Note) Property number LB-001 D Project Machida Machida City, Tokyo 9,200 1.6% 50,490.39 100.0% LB-037 D Project Urayasu III LB-002 D Project Hachioji Hachioji City, Tokyo 15,400 2.6% 62,394.17 100.0% LB-038 D Project Tomisato LB-003 D Project Aikawa-Machi Aiko District, Kanagawa 3,390 0.6% 14,240.84 100.0% LB-039 D Project Kyotanabe LB-004 D Project Shin-Misato Misato City, Saitama 5,710 1.0% LB-005 D Project Urayasu | Urayasu City, Chiba 9,280 1.6% LB-006 D Project Urayasu II Urayasu City, Chiba 26,000 4.5% LB-007 D Project Akanehama Narashino City, Chiba 2,950 0.5% 11,663.39 100.0% LB-008 D Project Noda Noda City, Chiba 6,210 1.1% LB-009 D Project Inuyama Inuyama City, Aichi 8,690 1.5% LB-010 D Project Gifu Anpachi District, Gifu 1,100 0.2% 29,232.53 100.0% 43,723.70 100.0% 7,669.91 100.0% 11,289.91 100.0% 36,515.81 100.0% LB-041 72,320.01 100.0% LB-042 D Project Sano LB-043 D Project Tatebayashi LB-044 D Project Kakegawa LB-045 LB-046 LB-040 D Project Sendai Izumi D Project Oyama Property name Urayasu City, Chiba Tomisato City, Chiba Kyotanabe City, Kyoto Sendai City, Miyagi Oyama City, Tochigi Sano City, Tochigi price (million yen) Location Investme nt ratio Leasable area (m²) Occupan cy rate (Note) 8,500 1.5% 5,000 0.9% 3,520 0.6% 1,510 0.3% 2,000 0.3% 1,780 0.3% Tatebayashi City, Gunma 3,100 Kakegawa City, Shizuoka 6,000 0.5% 1.0% 39,441.32 100.0% 36,113.25 100.0% 10,965.68 100.0% 10,764.05 100.0% 14,106.91 100.0% 15,668.44 100.0% 13,521.56 100.0% 39,341.44 100.0% D Project Hiroshima Seifu Hiroshima City, Hiroshima 3,820 0.7% 19,004.72 100.0% D Project Tosu II Tosu City, Saga 1,700 LB-011 D Project Neyagawa Neyagawa City, Osaka 5,980 1.0% 11,151.51 100.0% LM-001 DPL Misato LB-012 Kitahiroshima City, D Project Sapporo Minami 818 0.1% 6,749.10 100.0% RE-001 Qiz Ebisu Misato City, Saitama Shibuya Ward, Tokyo Hokkaido LB-013 D Project Morioka Takizawa City, Iwate 1,200 0.2% 9,558.32 100.0% RE-002 Castalia Azabujuban Shichimenzaka Minato Ward, Tokyo LB-014 D Project Sendai Minami Iwanuma City, Miyagi 1,530 0.3% 11,052.27 100.0% RE-003 Castalia Shibakoen LB-015 D Project Tsuchiura LB-016 D Project Gotenba LB-017 D Project Nishi-Hiroshima LB-018 D Project Fukuoka Umi LB-019 D Project Tosu Tsuchiura City, Ibaraki Gotenba City, Shizuoka Hiroshima City, Hiroshima Kasuya District, Fukuoka Tosu City, Saga 3,390 0.6% 1,140 0.2% 1,210 0.2% 4,240 0.7% 17,448.86 100.0% 6,737.53 100.0% 5,093.51 100.0% RE-004 RE-005 Castalia Ginza Castalia Hiroo Minato Ward, Tokyo Chuo Ward, Tokyo 0.3% 16,831 2.9% 7,650 1.3% 0.8% 4,500 2,630 0.5% 2,520 0.4% 13,012.50 100.0% 55,864.93 100.0% 98.8% 5,230.39 3,492.93 95.2% 2,707.51 97.5% 2,226.42 93.7% Minato Ward, Tokyo 2,220 24,729.56 100.0% 5,740 1.0% LB-020 D Project Kuki I Kuki City, Saitama LB-021 D Project Kuki II Kuki City, Saitama 8,120 3,900 0.7% 1.4% 17,858.01 100.0% 22,708.72 100.0% 50,490.00 100.0% LB-022 D Project Kawagoe | Kawagoe City, Saitama 3,530 0.6% 16,150.88 100.0% RE-006 RE-007 RE-008 RE-009 RE-010 RE-011 Castalia Nihonbashi Chuo Ward, Tokyo Castalia Hacchobori Chuo Ward, Tokyo Castalia Azabujuban Castalia Azabujuban II Castalia Shinjuku Natsumezaka Castalia Ginza II Minato Ward, Tokyo Minato Ward, Tokyo Shinjuku Ward, Tokyo Chuo Ward, Tokyo LB-023 D Project Kawagoe II Kawagoe City, Saitama 4,850 0.8% 19,872.00 100.0% RE-012 Castalia Shibuya Sakuragaoka Shibuya Ward, Tokyo 0.4% 1,200 0.2% 2,300 0.4% 2,910 0.5% 2,690 0.5% 1,865 0.3% 1,800 0.3% 1,400 0.2% 1,621.59 100.0% 1,458.73 100.0% 2,969.57 96.9% 2,400.00 96.7% 2,094.58 94.8% 79.4% 1,917.62 1,817.56 96.0% 1,123.80 97.1% LB-024 DPL Inuyama Inuyama City, Aichi 3,940 0.7% 21,628.50 100.0% RE-013 Castalia Nishi Azabu Kasumicho Minato Ward, Tokyo 2,143 0.4% 2,779.77 91.3% LB-025 D Project Fukuoka Hakozaki Fukuoka City, Fukuoka 4,340 0.7% LB-026 D Project Kuki III Kuki City, Saitama 7,630 1.3% LB-027 D Project Kuki IV Kuki City, Saitama 5,520 0.9% 34,710.80 100.0% 26,937.41 100.0% 26,460.00 100.0% RE-014 Castalia Ochanomizu Chiyoda Ward, Tokyo 1,770 0.3% 2,559.21 100.0% RE-015 Castalia Sangubashi Shibuya Ward, Tokyo 1,393 0.2% 1,898.47 100.0% RE-016 Castalia Suitengu Chuo Ward, Tokyo 1,279 0.2% 1,940.94 100.0% LB-028 D Project Kuki V Kuki City, Saitama 8,280 1.4% 47,320.89 100.0% RE-017 Castalia Suitengu II Chuo Ward, Tokyo 1,138 0.2% 1,858.34 100.0% LB-029 D Project Kuki VI Kuki City, Saitama 5,140 0.9% LB-030 D Project Yashio Yashio City, Saitama LB-031 D Project Nishiyodogawa Osaka City, Osaka LB-032 D Project Matsudo Matsudo City, Chiba LB-033 D Project Hibiki Nada LB-034 D Project Morioka II LB-035 D Project Kawagoe III Kitakyushu City, Fukuoka Takizawa City, Iwate Kawagoe City, Saitama LB-036 D Project Kazo Kazo City, Saitama 6,400 1.1% 10,300 1.8% 7,370 1.3% 2,080 0.4% 1,280 0.2% 7,200 1.2% 3,300 0.6% 29,244.66 100.0% 21,965.04 100.0% 39,584.80 100.0% 26,776.67 100.0% 23,933.75 100.0% 4,481.00 100.0% 39,572.32 100.0% 18,371.10 100.0% RE-018 RE-019 RE-020 RE-021 RE-022 Castalia Shintomicho Chuo Ward, Tokyo 932 0.2% 1,444.52 97.5% Castalia Shintomicho II Castalia Harajuku Chuo Ward, Tokyo 825 0.1% 1,244.54 97.1% Shibuya Ward, Tokyo 887 0.2% 1,225.26 100.0% Castalia Yoyogi Uehara Castalia Sendagaya Shibuya Ward, Tokyo 608 0.1% 811.95 93.2% Shibuya Ward, Tokyo 555 0.1% 803.03 100.0% RE-023 Castalia Shinjuku 7 chome RE-024 RE-025 Shinjuku Ward, Tokyo 464 0.1% 957.60 100.0% Castalia Ningyocho Chuo Ward, Tokyo 947 0.2% 1,747.90 100.0% Castalia Ningyocho II Chuo Ward, Tokyo 1,070 0.2% 1,826.80 97.4% 38#40Portfolio List as of April 11, 2017 (2) Daiwa House REIT Investment Corporation Property number Property name Location Acquisition price (million yen) Investme nt ratio Leasable area (m²) RE-026 Castalia Shin-Ochanomizu RE-027 Castalia Higashi Nihonbashi II RE-028 Castalia Jinbocho Chiyoda Ward, Tokyo Chuo Ward, Tokyo 914 1,370 Chiyoda Ward, Tokyo 1,160 0.2% 0.2% 0.2% RE-029 Castalia Shintomicho III Chuo Ward, Tokyo RE-030 Castalia Shinjuku Gyoen Shinjuku Ward, Tokyo RE-031 Castalia Takanawadai Minato Ward, Tokyo 2,720 860 675 0.1% 0.5% 0.1% RE-032 Castalia Higashi Nihonbashi III RE-033 Castalia Shinjuku Gyoen II RE-034 Castalia Shintomicho IV RE-035 Castalia Takanawadai II RE-036 Castalia Minami Azabu Chuo Ward, Tokyo 666 0.1% Occupan cy rate (Note) 1,308.38 100.0% 2,117.46 100.0% 1,628.80 98.4% 972.51 97.8% 3,594.16 100.0% 1,147.44 94.0% 1,105.20 100.0% Acquisition Property number Property name Location price (million yen) Investme nt ratio Leasable area (m²) Occupan cy rate (Note) RE-062 Castalia Honjo Azumabashi RE-063 Castalia Kitazawa RE-064 Castalia Monzennakacho Sumida Ward, Tokyo Setagaya Ward, Tokyo Koto Ward, Tokyo 996 0.2% 2,255.88 94.4% 742 0.1% 1,220.16 93.4% 503 0.1% 887.94 100.0% RE-065 Castalia Kamiikedai Ota Ward, Tokyo 198 0.0% 414.45 92.9% Shinjuku Ward, Tokyo 486 0.1% 668.79 100.0% Chuo Ward, Tokyo 400 Minato Ward, Tokyo 1,190 Minato Ward, Tokyo RE-037 Castalia Ginza III Chuo Ward, Tokyo 2,880 0.1% 0.2% 642 0.1% 0.5% RE-038 Castalia Kayabacho Chuo Ward, Tokyo 2,707 0.5% RE-039 Castalia Takanawa Minato Ward, Tokyo 7,430 1.3% 681.00 100.0% 1,567.84 100.0% 882.67 100.0% 3,494.42 96.9% 4,602.95 100.0% 10,408.26 97.0% RE-066 Castalia Morishita RE-067 Castalia Wakabayashi koen RE-068 Castalia Asakusabashi RE-069 Castalia Iriya RE-070 Castalia Kita Ueno RE-071 Castalia Morishita II Koto Ward, Tokyo 832 0.1% 1,383.90 100.0% Setagaya Ward, Tokyo 776 0.1% 1,425.43 100.0% Taito Ward, Tokyo 792 0.1% 1,537.84 98.0% Taito Ward, Tokyo 546 0.1% 1,415.15 92.1% Taito Ward, Tokyo 2,641 0.5% 4,197.66 97.8% Koto Ward, Tokyo 686 0.1% 1,275.60 100.0% RE-072 Castalia Minowa RE-073 Castalia Oyamadai RE-074 Castalia Nakano Taito Ward, Tokyo 1,430 0.2% 2,406.41 94.8% Setagaya Ward, Tokyo 533 0.1% 857.32 97.1% Nakano Ward, Tokyo 1,060 0.2% 1,613.86 97.7% RE-075 Castalia Yoga Setagaya Ward, Tokyo 923 0.2% 1,472.38 94.9% RE-040 Castalia Higashi Nihonbashi Chuo Ward, Tokyo 3,520 0.6% RE-041 Castalia Shinjuku Shinjuku Ward, Tokyo 2,950 0.5% RE-042 Castalia Ichigaya Shinjuku Ward, Tokyo RE-043 Shibaura Island Bloom Tower Minato Ward, Tokyo 7,580 940 0.2% 1.3% RE-044 Castalia Hatsudai Shibuya Ward, Tokyo 2,030 0.3% RE-045 Castalia Hatsudai II RE-046 Castalia Ebisu Shibuya Ward, Tokyo 1,900 0.3% Shibuya Ward, Tokyo 1,420 0.2% RE-047 Castalia Meguro Kamurozaka RE-048 Castalia Toritsudaigaku Shinagawa Ward, Tokyo Meguro Ward, Tokyo RE-049 Castalia Yukigaya Ota Ward, Tokyo RE-050 Castalia Yutenji Meguro Ward, Tokyo 1,450 4,500 0.8% 648 0.1% 1,110 0.2% 0.2% RE-051 Castalia Otsuka Toshima Ward, Tokyo 1,480 0.3% 6,442.28 99.1% 3,150.80 100.0% 1,546.34 96.1% 16,849.50 97.8% 3,077.05 98.5% 2,339.42 98.9% 1,659.71 95.1% 4,967.97 94.7% 863.70 97.4% 1,542.30 100.0% 1,380.35 97.8% 1,871.70 98.3% RE-076 Castalia Sumiyoshi Koto Ward, Tokyo 948 0.2% 1,362.60 98.1% RE-077 RE-078 Castalia Oshiage RE-079 Castalia Kuramae RE-080 Castalia Nakanobu RE-081 Royal Parks Toyosu RE-082 Castalia Togoshi RE-083 Castalia Ooimachi RE-084 Castalia Omori RE-085 RE-086 Castalia Monzennakacho II Koto Ward, Tokyo 2,160 0.4% 3,038.98 100.0% Sumida Ward, Tokyo 1,100 0.2% 1,785.24 97.1% Taito Ward, Tokyo 1,260 0.2% 1,994.93 100.0% Shinagawa Ward, Tokyo 1,790 0.3% 2,421.82 98.8% Koto Ward, Tokyo 7,360 1.3% 18,112.03 100.0% Shinagawa Ward, Tokyo Shinagawa Ward, Tokyo 1,770 0.3% Ota Ward, Tokyo Castalia Mishuku Castalia Arakawa Setagaya Ward, Tokyo 1,181 0.2% 1,500 0.3% 1,900 0.3% Arakawa Ward, Tokyo 1,660 0.3% 2,629.59 96.7% 1,413.75 100.0% 2,046.36 100.0% 2,640.86 96.7% 3,797.92 100.0% RE-087 Castalia Omori II Ota Ward, Tokyo 2,370 0.4% 2,818.70 96.3% RE-052 Castalia Kikukawa Sumida Ward, Tokyo 817 0.1% 1,168.18 98.0% RE-088 Castalia Nakameguro RE-053 Castalia Meguro Meguro Ward, Tokyo 844 0.1% 1,414.73 100.0% RE-089 Castalia Meguro Chojyamaru RE-054 Castalia Otsuka II Toshima Ward, Tokyo 1,040 0.2% 1,784.50 94.9% RE-090 Castalia Meguro Takaban Meguro Ward, Tokyo Shinagawa Ward, Tokyo Meguro Ward, Tokyo 3,800 0.7% 3,166.71 94.2% 2,030 0.3% 2,123.77 92.6% 1,750 0.3% 1,961.52 91.9% RE-055 Castalia Jiyugaoka Meguro Ward, Tokyo 1,200 0.2% 1,472.47 93.9% RE-091 Castalia Omori III Shinagawa Ward, Tokyo 1,520 0.3% 2,004.80 100.0% RE-056 Castalia Mejiro Toshima Ward, Tokyo 988 0.2% 1,658.90 92.3% RE-092 Morino Tonari Shinagawa Ward, Tokyo 1,020 0.2% 1,668.24 100.0% RE-057 Castalia Ikebukuro Toshima Ward, Tokyo 2,570 0.4% 3,644.35 98.8% RE-093 Castalia Meguro Tairamachi Meguro Ward, Tokyo 1,165 0.2% 1,278.52 96.7% RE-058 Castalia Kaname-cho Toshima Ward, Tokyo 1,140 0.2% 1,624.06 98.6% RE-094 Royal Parks SEASIR Adachi Ward, Tokyo 4,350 0.7% 17,269.74 100.0% RE-059 Castalia Tower Shinagawa Seaside Shinagawa Ward, Tokyo 7,380 1.3% 12,732.35 97.9% RE-095 Castalia Honkomagome Bunkyo Ward, Tokyo RE-060 Castalia Yakumo Meguro Ward, Tokyo RE-061 Castalia Togoshiekimae Shinagawa Ward, Tokyo 857 0.1% 1,560 0.3% 1,276.91 100.0% 2,014.12 100.0% RE-096 Cosmo Heim Musashikosugi Kawasaki City, Kanagawa Yokohama City, RE-097 Castalia Tsurumi 1,520 0.3% 1,674 0.3% 666 0.1% 2,224.41 92.1% 4,208.83 100.0% 1,452.09 100.0% Kanagawa 39#41Portfolio List as of April 11, 2017 (3) Daiwa House REIT Investment Corporation Property number Property name Location Acquisition price (million yen) Occupan Acquisition Investme nt ratio Leasable area (m²) RE-098 Castalia Funabashi RE-099 Castalia Nishi Funabashi RE-100 Castalia Maihama Funabashi City, Chiba Funabashi City, Chiba 704 0.1% 783 0.1% 1,552.01 1,597.32 98.8% Urayasu City, Chiba 670 0.1% 1,287.72 100.0% cy rate (Note) 96.6% RE-135 RE-136 RE-137 Property number Property name Location price (million yen) Investme nt ratio Leasable area (m²) Occupan cy rate (Note) Castalia Mibu Castalia Tsutsujigaoka Koyto City, Kyoto Sendai City, Miyagi 1,193 0.2% 2,828.39 94.5% 1,208 0.2% 4,471.11 97.9% Castalia Ohori Bay Tower RE-101 Castalia Ichikawamyoden Ichikawa City, Chiba 671 0.1% 1,218.00 100.0% RE-138 Royal Parks Namba Fukuoka City, Fukuoka Osaka City, Osaka 2,910 0.5% 11,089.75 59.8% 2,830 0.5% RE-102 Castalia Urayasu Ichikawa City, Chiba 592 0.1% 1,074.53 100.0% RE-139 Castalia Shigahondori RE-103 Castalia Minamigyotoku Ichikawa City, Chiba 543 0.1% 1,031.81 89.8% RE-140 Castalia Kyoto Nishioji Yokohama City, RE-105 Castalia Nogeyama RE-106 Castalia Ichikawa 325 0.1% 744.90 100.0% RE-141 Castalia Ningyocho III Nagoya City, Aichi Kyoto City, Kyoto Chuo Ward, Tokyo 1,730 0.3% 973 2,000 Kanagawa RE-142 Ichikawa City, Chiba 461 0.1% 876.89 100.0% RE-107 Royal Parks Hanakoganei Kodaira City, Tokyo 5,300 0.9% 18,153.57 100.0% RE-143 Royal Parks Umejima Castalia Shinsakae II Adachi Ward, Tokyo 0.2% 0.3% 2,020 0.3% Nagoya City, Aichi 1,800 0.3% RM-001 ACROSSMALL Shinkamagaya RE-108 RE-109 Castalia Musashikosugi Royal Parks Wakabadai Kawasaki City, Kanagawa 1,680 0.3% Inagi City, Tokyo 4,360 0.7% RE-110 Pacific Royal Court Minatomirai Urban Tower Yokohama City, Kanagawa Yokohama City, RE-111 L-Place Shinkoyasu Kanagawa RE-112 Royal Parks Musashikosugi Kawasaki City, Kanagawa 1,060 RE-113 Castalia Shinsakae Nagoya City, Aichi 1,920 RE-114 Aprile Tarumi Kobe City, Hyogo RE-115 Crest Kusatsu Kusatsu City, Shiga 3,004 RE-116 Castalia Sakaisuji Honmachi Osaka City, Osaka 1,490 9,100 1.6% 1,720 0.3% 0.2% 0.3% 1,340 0.2% 0.5% 0.3% 2,179.80 100.0% 21,367.93 100.0% 26,294.49 100.0% RM-002 FOLEO Hirakata RM-003 QİZ GATE URAWA RM-004 UNICUS Takasaki RE-117 Castalia Shin-Umeda Osaka City, Osaka 1,376 0.2% RE-118 Castalia Abeno Osaka City, Osaka 4,368 RE-119 Castalia Sakae Nagoya City, Aichi RE-120 Castalia Nipponbashi Kouzu RE-121 Castalia Maruyama Urasando RE-122 Castalia Maruyama Omotesando RE-123 Castalia Higashi Hie Osaka City, Osaka Sapporo City, Hokkaido Sapporo City, Hokkaido Fukuoka City, Fukuoka RE-124 RE-125 Castalia Tower Nagahoribashi Castalia Sannomiya RE-126 Castalia Kotodaikoen RE-127 Castalia Ichibancho RE-128 Castalia Omachi Osaka City, Osaka Kobe City, Hyogo Sendai City, Miyagi Sendai City, Miyagi Sendai City, Miyagi RE-129 Castalia Uemachidai RE-130 Castalia Tower Higobashi RE-131 Big Tower Minami Sanjo Osaka City, Osaka 0.8% 1,010 0.2% 3,570 0.6% 411 0.1% 1,740 0.3% 960 0.2% 3,400 0.6% 1,230 0.2% 481 0.1% 783 0.1% 656 0.1% 2,190 0.4% Osaka City, Osaka 2,670 0.5% Sapporo City, Hokkaido 1,740 0.3% 3,009.74 100.0% 3,808.97 100.0% 3,548.48 98.0% 6,545.25 100.0% 13,452.80 85.9% 3,471.39 95.8% 3,279.90 97.2% 10,920.75 97.9% 2,836.00 94.5% 9,334.47 95.8% 1,522.89 100.0% OT-003 6,100.31 100.0% 3,061.60 98.4% 8,747.40 98.0% 3,071.60 97.4% 1,684.10 100.0% 2,800.32 96.8% 2,149.08 98.6% 5,415.39 100.0% 6,230.20 97.0% 8,661.19 98.3% RM-005 ACROSSPLAZA Miyoshi (Land) RM-006 RR-001 LIFE Sagamihara Wakamatsu RR-002 FOLEO Sendai Miyanomori RR-003 DREAM TOWN ALI Kamagaya City, Chiba Hirakata City, Osaka Saitama City, Saitama Takasaki City, Gunma Iruma District, Saitama Aomori City, Aomori Sagamihara City, Kanagawa 7,770 1.3% 4,580 0.8% 4,270 0.7% 3,000 0.5% 3,740 0.6% 8,100 1.4% 1,670 0.3% Sendai City, Miyagi 6,960 1.2% 10,354.15 100.0% 5,086.69 98.1% 2,035.37 94.0% 2,897.06 100.0% 6,828.78 100.0% 4,425.46 41,742.84 100.0% 16,380.78 96.7% 9,705.31 97.1% 9,277.08 100.0% 24,018.00 100.0% 22,196.81 98.4% 2,973.44 100.0% 19,845.72 100.0% 100.0% RR-004 ACROSSPLAZA Inazawa (Land) Sports Depo and GOLF5 Kokurahigashi IC Store Inazawa City, Aichi 2,390 0.4% 31,981.70 100.0% Kitakyushu City, Fukuoka 2,230 0.4% 8,899.89 100.0% RR-005 OT-001 OT-002 Hiratsuka Retail Property (Land) Urban Living Inage Hiratsuka City, Kanagawa 5,620 1.0% 28,002.92 100.0% Chiba City, Chiba 930 0.2% 4,177.52 100.0% OT-004 Aburatsubo Marina HILLS Naha Shin-Toshin Center Building (Daiwa Roynet Hotel Naha-Omoromachi) Sharp Hiroshima Building Miura City, Kanagawa 1,100 0.2% 3,901.14 100.0% Naha City, Okinawa 7,600 1.3% 13,480.00 99.2% Hiroshima City, Hiroshima 1,850 0.3% 3,064.89 100.0% Asset class Number of properties Acquisition price Investme Leasable Logistics Residential 47 properties 142 properties Retail Other 11 properties RE-132 Castalia Fushimi RE-133 Castalia Meieki Minami RE-134 Castalia Yakuin Nagoya City, Aichi 2,260 0.4% Nagoya City, Aichi 720 0.1% Fukuoka City, Fukuoka 930 0.2% 7,022.69 94.1% 1,822.10 97.3% 2,784.83 96.7% Portfolio Total (Note) Occupancy rate as of February 28, 2017. Occupancy rate of the properties acquired in April 2017 is as of the 4 properties 204 properties (million yen) 260,119 259,754 44.7% 511,283.17 97.1% 50,330 8.7% 215,024.49 99.4% 11,480 2.0% 24,623.55 99.6% 581,683 100.0% 1,938,863.88 99.2% nt ratio area (m²) Occupan cy rate (Note) 44.7% 1,187,932.67 100.0% time of acquisition. 40#42Rent Revision Schedule of Logistics Properties (1) Property Property name number Logistics Properties LB-001 D Project Machida O Daiwa House REIT Investment Corporation 2017 2018 2019 2020 2021 2022 Rent Rent revision Tenant Expiry type Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Hitachi Capital Corporation Fixed LB-011 D Project Morioka 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 LB-010 D Project Gifu D Project Neyagawa LB-012 D Project Sapporo Minami LB-013 LB-014 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 LB-020 D Project Kuki I LB-021 D Project Kuki II Mitsubishi Shokuhin Co., Ltd. Fixed Tokyo Logistics Factory CO. LTD Fixed Nojima Corporation Fixed Asahi Security Co., Ltd. Fixed * In ongoing litigation Nakano Shokai Co., Ltd. Fixed Hitachi Capital Corporation Fixed DAICHI wo MAMORU KAI Co., Ltd. Fixed Mitsubishi Shokuhin Co., Ltd. Fixed Takihyo Co., Ltd. Fixed GOTSU Co., Ltd. Fixed NH Foods, Ltd. Fixed Mitsubishi Shokuhin Co., Ltd. Fixed Mitsubishi Shokuhin Co., Ltd. Fixed Mitsubishi Shokuhin Co., Ltd. Fixed YAMATO MULTI-MAINTENANCE Fixed SOLUTIONS CO., LTD. HOKKOH Transportation, Inc. Fixed No revision 2027/2/28 2019/2/27 Not disclosed 2019/2/27 2029/2/28 2026/6/30 2019/5/1 2029/4/30 No revision 2026/2/28 Not disclosed 2027/5/31 2020/10/11 2025/10/10 2017/10/1 2020/1/1 2019/3/23 2018/8/1 2017/12/1 Not disclosed Not disclosed Not disclosed 2021/4/1 2018/4/1 Not disclosed 2029/4/14 2019/1/15 2029/1/14 Not disclosed 2029/12/31 2024/3/22 UCC FOODS CO., LTD. Fixed HOKKOH Transportation, Inc. Fixed 2019/12/25 2023/1/31 2018/11/1 2028/10/31 Nippon Express Co., Ltd Fixed Expiry No revision 2021/1/20 CREATE CORPORATION Fixed No revision 2022/4/15 Fuji Logitech Co., Ltd. Fixed Expiry 2021/5/31 Japan Beverage Holdings Inc. Fixed NH Foods, Ltd. Fixed TRANCOM Co., Ltd. Fixed 2019/4/1 2018/4/1 2021/10/5 2026/8/31 Not disclosed 2031/10/4 Seven & i Holdings Co., Ltd. Fixed 2018/6/21 2023/6/30 LB-022 D Project Kawagoe I Daiwa Logistics Co., Ltd. Fixed 2021/5/1 2026/4/30 LB-023 D Project Kawagoe II LB-024 DPL Inuyama LB-025 D Project Fukuoka Hakozaki D Project Kuki III LB-026 Daiwa Logistics Co., Ltd. Fixed 2017/9/3 2027/9/2 Sagawa Global Logistics Co., Ltd. Fixed 2018/10/1 2028/9/30 Nakano Shokai Co., Ltd. Fixed No revision 2032/9/30 S.D.Logi CO., LTD. Fixed 2018/6/28 2033/6/30 41#43Rent Revision Schedule of Logistics Properties (2) Property number O Daiwa House REIT Investment Corporation Tenant Rent 2017 type Aug. 2018 2019 2020 2021 2022 Rent revision Expiry Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Property name Logistics Properties LB-027 D Project Kuki IV LB-028 D Project Kuki V Chuo Bussan Corporation Fixed Hitachi Transport System, Ltd. Fixed LB-029 D Project Kuki VI Sagawa Global Logistics Co., Ltd. Fixed 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 LB-036 D Project Kazo LB-037 D Project Urayasu III LB-038 D Project Tomisato LB-039 D Project Kyotanabe LB-040 D Project Sendai Izumi LB-041 D Project Oyama 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 Asahi Logistics Corp. Nippon Express Co., Ltd Tohto CO-OP Fixed Ryutsu Service Co., Ltd. VANTEC CORPORATION Fixed Fixed Fixed Fixed Nichirei Logistics Group Inc. Fixed Hitachi Transport System Kanto Co., Fixed Ltd. Itochu Logistics Corp. Fixed Daiwa Logistics Co., Ltd. Fixed Tokyo Nohin Daiko Co., Ltd. Fixed Hutech norin Co., Ltd. Fixed Mitsubishi Shokuhin Co., Ltd. Fixed Mitsubishi Shokuhin Co., Ltd. Fixed Toryusha Co., Ltd. Fixed Hitachi Transport System Kanto Co., Fixed Ltd. Hitachi Transport System Central Fixed Japan Co., Ltd. MITSUI FOODS Co., Ltd. Fixed Marukyo Transportation Co., Ltd. Fixed LM-001 DPL Misato LM-001 DPL Misato LM-001 DPL Misato LM-001 DPL Misato Kokubu Group Corp. Fixed ARATA CORPORATION Fixed Kato Sangyo Co., Ltd. Fixed Nitori Co., Ltd. Fixed // Rent Revision / Lease Contract Renewal of Logistics Properties Period ending Aug. 2017 Period ending Feb. 2018 Rent revision of 2 tenants Rent revision of 4 tenants → 1 tenant revised rent on equal terms Expiry Expiry No revision 2029/6/30 2017/7/1 2022/6/30 2018/8/9 2024/2/9 2021/8/1 2031/7/31 2021/8/1 2031/7/31 2021/4/15 2026/8/15 2020/4/9 2031/4/30 Expiry No revision 2021/9/30 2035/10/31 2019/4/1 2024/6/30 2020/3/1 2025/2/28 2022/6/1 2025/8/31 No revision 2026/1/31 2017/9/28 2032/10/31 2019/4/1 2020/3/1 Not disclosed No revision 2020/9/1 2019/8/1 Not disclosed 2029/6/30 2030/8/31 2034/7/31 Not disclosed Not disclosed 2018/10/15 No revision 2024/1/2 2033/11/14 2020/12/31 Not disclosed Not disclosed No revision 2018/10/31 42#44Rent Revision Schedule of Retail Properties Property number Retail Properties Property name Tenant O Daiwa House REIT Investment Corporation 2018 Rent 2017 type Aug. Feb. Aug. Feb. Aug. 2019 2020 2021 2022 Rent revision Expiry Feb. Aug. Feb. Aug. Feb. RM-001 ACROSSMALL Shinkamagaya Daiwa Information Service Co., Ltd. Fixed Expiry 2017/12/11 RM-002 FOLEO Hirakata Core tenant A Fixed 2019/1/1 2026/12/8 RM-002 FOLEO Hirakata RM-003 QiZ GATE URAWA RM-003 QiZ GATE URAWA Core tenant B Fixed 2019/1/1 2026/12/14 Core tenant A Fixed No revision 2027/5/31 Core tenant B Fixed 2020/3/27 2028/3/26 RM-004 UNICUS Takasaki RM-005 ACROSSPLAZA Miyoshi (Land) RM-006 DREAM TOWN ALİ Mizuho Trust & Banking Co., Ltd. (Daiwa Information Service Co., Ltd.) P&D Consulting Co., Ltd. Fixed 2017/12/9 2028/11/19 Fixed 2017/10/1 2034/9/29 Fixed + RM-006 DREAM TOWN ALİ Core tenant A Core tenant B Variable Fixed Fixed + Expiry RM-006 DREAM TOWN ALI RR-001 | LIFE Sagamihara Wakamatsu RR-002 FOLEO Sendai Miyanomori RR-003 ACROSSPLAZA Inazawa (Land) Sports Depo and GOLF5 RR-004 Kokurahigashi IC Store RR-005 Hiratsuka Retail Property (Land) Rent Revision / Lease Contract Renewal of Retail Properties Period ending Aug. 2017 Rent revision of 1 tenant → 1 tenant revised rent on equal terms Period ending Feb. 2018 Rent revision of 2 tenants Contract expiry of 2 tenants Core tenant C LIFE CORPORATION Expiry No revision No revision No revision Variable Fixed Daiwa House Industry Co., Ltd. Daiwa Information Service Co., Ltd. Alpen Co., Ltd. Fixed Fixed Fixed Not Not disclosed disclosed 2019/5/22 No revision No revision 2027/12/21 2017/11/1 2021/6/30 2027/5/21 2022/11/30 2034/2/24 Not disclosed 2027/11/28 Not disclosed Not disclosed 43#45Appraisal Value Changes Comparison (1) Daiwa House REIT Investment Corporation (million yen) (%) Appraisal value (Note 1) Aug. 2016 Feb. 2017 Change Property number Acquisition Book value Unrealized Property name price Feb. 2017 gain/loss Aug. 2016 Feb. 2017 Direct cap DCF Direct cap DCF Direct cap DCF Appraiser (Note 2) Change CR DR TCR CR DR TCR CR DR TCR LB-001 D Project Machida 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 LB-007 9,200 9,246 163 9,200 9,410 210 4.7 4.6 4.9 4.6 4.5/4.6 4.8 -0.1 - -0.1 Tanizawa 15,400 15,318 381 15,400 15,700 300 4.6 4.5/4.6 4.8 4.5 4.4/4.5 4.7 -0.1 -0.1 -0.1 Tanizawa 3,390 3,377 52 3,390 3,430 40 4.8 4.8 5.0 4.7 4.7 4.9 -0.1 -0.1 -0.1 Tanizawa 5,710 5,689 70 5,710 5,760 50 5.3 5.3 5.5 5.2 5.2 5.4 -0.1 -0.1 -0.1 Tanizawa 9,280 9,255 204 9,280 9,460 180 4.3 4.4 4.5 4.2 4.3 4.4 -0.1 -0.1 -0.1 Tanizawa D Project Urayasu II D Project Akanehama 26,000 25,914 285 26,000 26,200 200 4.2 4.2 4.4 4.1 4.1/4.2 4.3 -0.1 -0.1 Tanizawa 2,950 2,940 39 2,950 2,980 30 4.7 4.8 4.9 4.6 4.7 4.8 -0.1 -0.1 -0.1 Tanizawa LB-008 D Project Noda 6,210 6,175 164 6,210 6,340 130 4.9 4.8 5.1 4.8 4.7 5.0 -0.1 -0.1 -0.1 Tanizawa LB-009 D Project Inuyama 8,690 8,636 183 8,690 8,820 130 5.1 5.0/5.1 5.3 5.0 4.9/5.0 5.2 -0.1 -0.1 -0.1 Tanizawa LB-010 D Project Gifu 1,100 1,092 17 1,100 1,110 10 5.7 5.6/5.7 5.9 5.6 5.5/5.6 5.8 -0.1 -0.1 -0.1 Tanizawa LB-011 D Project Neyagawa 5,980 5,956 123 5,980 6,080 100 4.8 4.8 5.0 4.7 4.7 4.9 -0.1 -0.1 -0.1 Tanizawa LB-012 D Project Sapporo Minami 818 810 27 818 838 20 6.2 6.0/6.1 6.4 6.1 5.9/6.0 6.3 -0.1 -0.1 -0.1 Tanizawa LB-013 D Project Morioka 1,200 1,190 29 1,200 1,220 20 6.1 6.0 6.3 6.0 5.9 6.2 -0.1 -0.1 -0.1 Tanizawa LB-014 D Project Sendai Minami 1,530 1,517 32 1,530 1,550 20 5.4 5.2/5.3 5.6 5.3 5.1/5.2 5.5 -0.1 -0.1 -0.1 Tanizawa LB-015 D Project Tsuchiura LB-016 D Project Gotenba LB-017 3,390 3,365 64 3,390 3,430 40 5.4 5.3 5.6 5.3 5.2 5.5 -0.1 -0.1 -0.1 Tanizawa 1,140 1,133 26 1,140 1,160 20 5.6 5.5 5.8 5.5 5.4 5.7 -0.1 -0.1 -0.1 Tanizawa D Project Nishi-Hiroshima 1,210 1,204 15 1,210 1,220 10 5.6 5.6/5.7 5.8 5.5 5.5/5.6 5.7 -0.1 -0.1 -0.1 Tanizawa 5.0/5.1 4.9/5.0 LB-018 D Project Fukuoka Umi 4,240 4,214 85 4,240 4,300 60 5.3 5.5 5.2 5.4 -0.1 -0.1 -0.1 Tanizawa 15.2 /5.1 LB-019 D Project Tosu 5,740 5,694 105 5,740 5,800 60 5.3 5.3/5.4 5.5 5.2 5.2/5.3 5.4 -0.1 -0.1 -0.1 Tanizawa LB-020 D Project Kuki I 3,900 3,879 140 3,900 4,020 120 5.1 5.1/5.2 5.3 4.9 4.9/5.0 5.1 -0.2 -0.2 -0.2 Tanizawa LB-021 D Project Kuki II 8,120 8,063 336 8,120 8,400 280 5.1 5.1/5.2 5.3 4.9 4.9/5.0 5.1 -0.2 -0.2 -0.2 Tanizawa LB-022 D Project Kawagoe I 3,530 3,513 126 3,530 3,640 110 5.1 5.1/5.2 5.3 4.9 4.9/5.0 5.1 -0.2 -0.2 -0.2 Tanizawa LB-023 D Project Kawagoe II 4,850 4,827 242 4,850 5,070 220 5.1 5.1 5.3 4.9 4.9 5.1 -0.2 -0.2 -0.2 Tanizawa LB-024 DPL Inuyama 3,940 3,918 51 3,940 3,970 30 5.1 5.0 5.3 5.0 4.9 5.2 -0.1 -0.1 -0.1 Tanizawa LB-025 D Project Fukuoka Hakozaki 4,340 4,316 113 4,340 4,430 90 5.0 4.9 5.2 4.9 4.8 5.1 -0.1 -0.1 -0.1 Tanizawa LB-026 D Project Kuki III 7,630 7,585 304 7,630 7,890 260 5.1 5.1/5.2 5.3 4.9 4.9/5.0 5.1 -0.2 -0.2 -0.2 Tanizawa LB-027 D Project Kuki IV 5,520 5,485 204 5,520 5,690 170 5.1 5.1/5.2 5.3 4.9 4.9/5.0 5.1 -0.2 -0.2 -0.2 Tanizawa LB-028 D Project Kuki V 8,280 8,289 320 8,280 8,610 330 LB-029 D Project Kuki VI 5,140 5,104 195 5,140 5,300 160 655 5.1 5.1/5.2 5.3 4.9 4.9/5.0 5.1 -0.2 -0.2 -0.2 Tanizawa 5.1 5.1/5.2 5.3 4.9 4.9/5.0 5.1 -0.2 -0.2 -0.2 Tanizawa LB-030 D Project Yashio 6,400 6,365 114 6,400 6,480 80 4.8 4.3 5.1 4.7 4.2 5.0 -0.1 -0.1 -0.1 JREI LB-031 D Project Nishiyodogawa LB-032 D Project Matsudo 10,300 10,239 260 10,300 10,500 200 5.0 4.7 5.2 4.9 4.6 5.1 -0.1 -0.1 -0.1 JREI 7,370 7,339 120 7,370 7,460 90 4.8 4.5 4.9 4.7 4.4 4.8 -0.1 -0.1 -0.1 JREI 44#46Appraisal Value Changes Comparison (2) Daiwa House REIT Investment Corporation (million yen) (%) Appraisal value (Note 1) Aug. 2016 Feb. 2017 Change Property number Property name Acquisition Book value Unrealized price Feb. 2017 gain/loss Aug. 2016 Feb. 2017 Change Direct cap DCF Direct cap DCF Direct cap DCF Appraiser (Note 2) CR DR TCR CR DR TCR CR DR TCR LB-033 D Project Hibiki Nada LB-034 D Project Morioka II 2,080 1,280 2,083 66 1,283 36 2,110 1,300 2,150 40 6.0 5.9/6.1 6.2 5.9 5.8/6.0 6.1 -0.1 -0.1 -0.1 Tanizawa 1,320 20 6.1 5.8/5.9 6.3 6.0 5.7/5.8 6.2 -0.1 -0.1 -0.1 Tanizawa Logistics Properties Total 195,858 195,030 4,707 195,908 199,738 3,830 RE-001 Qiz Ebisu 7,650 7,263 1,026 8,170 8,290 120 4.1 4.3 4.3 4.0 4.2 4.2 -0.1 -0.1 -0.1 Tanizawa RE-002 Castalia Azabujuban Shichimenzaka 4,500 4,193 16 4,140 4,210 70 00 4.3 4.1 4.5 4.2 4.0 4.4 -0.1 -0.1 -0.1 Chuo RE-003 Castalia Shibakoen 2,630 2,423 -283 2,090 2,140 50 4.5 4.6 4.7 4.4 4.5 4.6 -0.1 -0.1 -0.1 Tanizawa RE-004 Castalia Ginza 2,520 2,364 -194 2,120 2,170 50 4.4 4.5 4.6 4.3 4.4 4.5 -0.1 -0.1 -0.1 Tanizawa RE-005 Castalia Hiroo 2,220 2,089 -289 1,810 1,800 -10 4.3 4.4 4.5 4.2 4.3 4.4 -0.1 -0.1 -0.1 Tanizawa RE-006 Castalia Nihonbashi 1,200 1,080 59 1,120 1,140 20 4.5 4.6 4.7 4.4 4.5 4.6 -0.1 -0.1 -0.1 Tanizawa RE-007 Castalia Hacchobori 2,300 2,127 62 2,150 2,190 40 4.5 4.6 4.7 4.4 4.5 4.6 -0.1 -0.1 -0.1 Tanizawa RE-008 Castalia Azabujuban 2,910 2,803 -153 2,620 2,650 30 4.3 4.1 4.5 4.2 4.0 4.4 -0.1 -0.1 -0.1 Chuo RE-009 Castalia Azabujuban II 2,690 2,542 -52 2,450 2,490 40 4.2 4.0 4.4 4.1 3.9 4.3 -0.1 -0.1 -0.1 Chuo RE-010 Castalia Shinjuku Natsumezaka 1,865 1,777 -107 1,650 1,670 20 4.4 4.2 4.6 4.3 4.1 4.5 -0.1 -0.1 -0.1 Chuo RE-011 Castalia Ginza II 1,800 1,676 -6 1,640 1,670 30 4.4 4.5 4.6 4.3 4.4 4.5 -0.1 -0.1 -0.1 Tanizawa RE-012 Castalia Shibuya Sakuragaoka 1,400 1,343 -263 1,130 1,080 -50 4.2 4.4 4.4 4.2 4.4 4.4 0.0 0.0 0.0 Tanizawa RE-013 Castalia Nishi Azabu Kasumicho 2,143 2,307 -97 2,150 2,210 60 4.4 4.5 4.6 4.3 4.4 4.5 -0.1 -0.1 -0.1 Tanizawa RE-014 Castalia Ochanomizu 1,770 1,712 337 2,050 2,050 0 4.4 4.2 4.6 4.4 4.2 4.6 0.0 0.0 0.0 JREI RE-015 Castalia Sangubashi 1,393 1,475 44 1,470 1,520 50 4.4 4.6 4.6 4.3 4.5 4.5 -0.1 -0.1 -0.1 Tanizawa RE-016 Castalia Suitengu 1,279 1,205 154 1,330 1,360 30 4.6 4.6 4.8 4.5 4.5 4.7 -0.1 -0.1 -0.1 Tanizawa RE-017 Castalia Suitengu II 1,138 1,071 148 1,190 1,220 30 4.5 4.6 4.7 4.4 4.5 4.6 -0.1 -0.1 -0.1 Tanizawa RE-018 Castalia Shintomicho 932 885 112 981 998 17 4.6 4.6 4.8 4.5 4.5 4.7 -0.1 -0.1 -0.1 Tanizawa RE-019 Castalia Shintomicho II 825 781 100 866 882 16 4.6 4.6 4.8 4.5 4.5 4.7 -0.1 -0.1 -0.1 Tanizawa RE-020 Castalia Harajuku 887 861 48 888 910 22 4.3 4.1 4.5 4.2 4.0 4.4 -0.1 -0.1 -0.1 JREI RE-021 Castalia Yoyogi Uehara 608 642 52 685 695 10 4.4 4.2 4.6 4.3 4.1 4.5 -0.1 -0.1 -0.1 JREI RE-022 Castalia Sendagaya 555 560 35 580 596 16 4.4 4.2 4.6 4.3 4.1 4.5 -0.1 -0.1 -0.1 JREI RE-023 Castalia Shinjuku 7 chome 464 442 75 503 518 15 4.7 4.5 4.9 4.6 4.4 4.8 -0.1 -0.1 -0.1 JREI RE-024 Castalia Ningyocho 947 870 319 1,160 1,190 30 4.4 4.2 4.6 4.3 4.1 4.5 -0.1 -0.1 -0.1 JREI RE-025 Castalia Ningyocho II 1,070 986 343 1,310 1,330 20 4.4 4.2 4.6 4.3 4.1 4.5 -0.1 -0.1 -0.1 JREI RE-026 Castalia Shin-Ochanomizu 914 862 197 1,030 1,060 30 4.4 4.2 4.6 4.3 4.1 4.5 -0.1 -0.1 -0.1 JREI RE-027 Castalia Higashi Nihonbashi II 1,370 1,271 388 1,610 1,660 50 4.4 4.2 4.6 4.3 4.1 4.5 -0.1 -0.1 -0.1 JREI RE-028 Castalia Jinbocho 1,160 1,089 330 1,390 1,420 30 4.4 4.2 4.6 4.3 4.1 4.5 -0.1 -0.1 -0.1 JREI RE-029 Castalia Shintomicho III 675 620 118 728 739 11 4.5 4.2 4.8 4.4 4.1 4.7 -0.1 -0.1 -0.1 JREI RE-030 Castalia Shinjuku Gyoen 2,720 2,633 396 2,950 3,030 80 4.5 4.7 4.7 4.4 4.6 4.6 -0.1 -0.1 -0.1 Tanizawa 45#47Appraisal Value Changes Comparison (3) Daiwa House REIT Investment Corporation (million yen) (%) Appraisal value (Note 1) Aug. 2016 Feb. 2017 Change Property number Property name Acquisition Book value Unrealized price Feb. 2017 gain/loss Aug. 2016 Feb. 2017 Direct cap DCF Direct cap DCF Direct cap DCF Appraiser (Note 2) Change CR DR TCR CR DR TCR CR DR TCR RE-031 Castalia Takanawadai 860 819 190 985 1,010 25 4.3 4.1 4.5 4.2 4.0 4.4 -0.1 -0.1 -0.1 JREI RE-032 Castalia Higashi Nihonbashi III RE-033 Castalia Shinjuku Gyoen II 666 616 174 765 791 26 4.4 4.2 4.6 4.3 4.1 4.5 -0.1 -0.1 -0.1 Daiwa 486 478 20 487 499 12 4.5 4.7 4.7 4.4 4.6 4.6 -0.1 -0.1 -0.1 Tanizawa RE-034 Castalia Shintomicho IV 400 378 80 444 459 15 4.4 4.2 4.6 4.3 4.1 4.5 -0.1 -0.1 -0.1 Daiwa RE-035 Castalia Takanawadai II RE-036 Castalia Minami Azabu 1,190 1,166 153 1,300 1,320 20 4.3 4.1 4.5 4.2 4.0 4.4 -0.1 -0.1 -0.1 JREI 642 614 65 671 680 9 4.3 4.1 4.5 4.2 4.0 4.4 -0.1 -0.1 -0.1 JREI RE-037 Castalia Ginza III 2,880 2,746 153 2,840 2,900 60 4.4 4.5 4.6 4.3 4.4 4.5 -0.1 -0.1 -0.1 Tanizawa RE-038 Castalia Kayabacho 2,707 2,534 495 2,960 3,030 70 4.6 4.6 4.8 4.5 4.5 4.7 -0.1 -0.1 -0.1 Tanizawa RE-039 Castalia Takanawa 7,430 7,166 443 7,520 7,610 90 4.5 4.8 4.7 4.4 4.7 4.6 -0.1 -0.1 -0.1 Tanizawa RE-040 Castalia Higashi Nihonbashi 3,520 3,286 713 3,960 4,000 40 4.6 4.4 4.8 4.5 4.3 4.7 -0.1 -0.1 -0.1 Chuo RE-041 Castalia Shinjuku 2,950 2,858 511 3,280 3,370 90 4.4 4.6 4.6 4.3 4.5 4.5 -0.1 -0.1 -0.1 Tanizawa RE-042 Castalia Ichigaya 940 886 443 1,330 1,330 0 4.4 4.2 4.6 4.4 4.2 4.6 0.0 0.0 0.0 Chuo RE-043 Shibaura Island Bloom Tower 7,580 6,999 1,760 8,540 8,760 220 4.1 6.2 4.0 6.1 -0.1 -0.1 JREI RE-044 Castalia Hatsudai 2,030 1,999 300 2,240 2,300 60 4.4 4.2 4.6 4.3 4.1 4.5 -0.1 -0.1 -0.1 Daiwa RE-045 Castalia Hatsudai II 1,900 1,892 177 2,070 2,070 0 4.2 4.0 4.4 4.2 4.0 4.4 0.0 0.0 0.0 Morii RE-046 Castalia Ebisu 1,420 1,424 175 1,600 1,600 0 4.1 3.9 4.3 4.1 3.9 4.3 0.0 0.0 0.0 Morii RE-047 Castalia Meguro Kamurozaka 4,500 4,086 143 4,140 4,230 90 4.3 4.1 4.5 4.2 4.0 4.4 -0.1 -0.1 -0.1 Daiwa RE-048 Castalia Toritsudaigaku 648 601 -43 555 558 3 5.2 5.0 5.5 5.1 4.9 5.4 -0.1 -0.1 -0.1 Chuo RE-049 Castalia Yukigaya 1,110 1,013 76 1,070 1,090 20 4.6 4.7 4.8 4.5 4.6 4.7 -0.1 -0.1 -0.1 Tanizawa RE-050 Castalia Yutenji RE-051 Castalia Otsuka RE-052 Castalia Kikukawa 1,450 1,341 -81 1,240 1,260 20 4.3 4.1 4.5 4.2 4.0 4.4 -0.1 -0.1 -0.1 Chuo 1,480 1,344 275 1,590 1,620 30 4.4 4.2 4.6 4.3 4.1 4.5 -0.1 -0.1 -0.1 Chuo 817 738 16 737 755 18 4.7 4.8 4.9 4.6 4.7 4.8 -0.1 -0.1 -0.1 Tanizawa RE-053 Castalia Meguro 844 850 121 932 972 40 4.6 4.3 4.8 4.5 4.2 4.7 -0.1 -0.1 -0.1 JREI RE-054 Castalia Otsuka II 1,040 997 232 1,200 1,230 30 4.5 4.3 4.7 4.4 4.2 4.6 -0.1 -0.1 -0.1 JREI RE-055 Castalia Jiyugaoka 1,200 1,171 198 1,340 1,370 30 4.3 4.1 4.5 4.2 4.0 4.4 -0.1 -0.1 -0.1 JREI RE-056 Castalia Mejiro 988 936 133 1,050 1,070 20 4.7 4.5 4.9 4.6 4.4 4.8 -0.1 -0.1 -0.1 Chuo RE-057 Castalia Ikebukuro 2,570 2,473 276 2,690 2,750 60 4.4 4.2 4.6 4.3 4.1 4.5 -0.1 -0.1 -0.1 Daiwa RE-058 Castalia Kaname-cho 1,140 1,071 148 1,200 1,220 20 4.6 4.8 4.8 4.5 4.7 4.7 -0.1 -0.1 -0.1 Tanizawa RE-059 Castalia Tower Shinagawa Seaside 7,380 6,876 1,663 8,370 8,540 170 4.6 4.6 4.8 4.5 4.5 4.7 -0.1 -0.1 -0.1 Tanizawa RE-060 Castalia Yakumo 857 835 -74 744 761 17 4.5 4.7 4.7 4.4 4.6 4.6 -0.1 -0.1 -0.1 Tanizawa RE-061 Castalia Togoshiekimae 1,560 1,478 411 1,890 1,890 0 4.5 4.3 4.7 4.5 4.3 4.7 0.0 0.0 0.0 JREI RE-062 Castalia Honjo Azumabashi 996 987 102 1,060 1,090 30 4.8 4.9 5.0 4.7 4.8 4.9 -0.1 -0.1 -0.1 Tanizawa 46#48Appraisal Value Changes Comparison (4) Daiwa House REIT Investment Corporation (million yen) (%) Appraisal value (Note 1) Aug. 2016 Feb. 2017 Change Property number Property name Acquisition Book value Unrealized price Feb. 2017 gain/loss Aug. 2016 Feb. 2017 Change Direct cap DCF Direct cap DCF Direct cap DCF Appraiser (Note 2) CR DR TCR CR DR TCR CR DR TCR RE-063 Castalia Kitazawa 742 764 32 796 797 1 4.4 4.2 4.6 4.4 4.2 4.6 0.0 0.0 0.0 JREI RE-064 Castalia Monzennakacho 503 462 62 510 525 15 4.9 5.0 5.1 4.8 4.9 5.0 -0.1 -0.1 -0.1 Tanizawa RE-065 Castalia Kamiikedai 198 183 28 212 212 0 5.1 4.7 5.3 5.1 4.7 5.3 0.0 0.0 0.0 JREI RE-066 Castalia Morishita 832 810 187 985 998 13 4.5 4.3 4.7 4.4 4.2 4.6 -0.1 -0.1 -0.1 JREI RE-067 Castalia Wakabayashi koen 776 751 78 809 830 21 4.4 4.2 4.6 4.3 4.1 4.5 -0.1 -0.1 -0.1 Daiwa RE-068 Castalia Asakusabashi 792 740 191 913 932 19 4.6 4.4 4.8 4.5 4.3 4.7 -0.1 -0.1 -0.1 Chuo RE-069 Castalia Iriya 546 508 144 641 653 12 5.0 4.8 5.2 4.9 4.7 5.1 -0.1 -0.1 -0.1 Chuo RE-070 Castalia Kita Ueno 2,641 2,434 235 2,590 2,670 80 4.7 4.8 4.9 4.6 4.7 4.8 -0.1 -0.1 -0.1 Tanizawa RE-071 Castalia Morishita II 686 627 146 771 774 3 4.6 4.7 4.8 4.6 4.7 4.8 0.0 0.0 0.0 Tanizawa RE-072 Castalia Minowa 1,430 1,309 200 1,510 1,510 0 4.6 4.7 4.8 4.6 4.7 4.8 0.0 0.0 0.0 Tanizawa RE-073 Castalia Oyamadai 533 504 78 583 583 0 4.5 4.6 4.7 4.5 4.6 4.7 0.0 0.0 0.0 Tanizawa RE-074 Castalia Nakano 1,060 983 216 1,200 1,200 0 4.4 4.2 4.6 4.4 4.2 4.6 0.0 0.0 0.0 JREI RE-075 Castalia Yoga 923 875 234 1,110 1,110 0 4.4 4.6 4.6 4.4 4.6 4.6 0.0 0.0 0.0 Tanizawa RE-076 Castalia Sumiyoshi 948 863 146 983 1,010 27 4.6 4.7 4.8 4.5 4.6 4.7 -0.1 -0.1 -0.1 Tanizawa RE-077 Castalia Monzennakacho II 2,160 2,010 599 2,600 2,610 10 4.4 4.2 4.6 4.4 4.2 4.6 0.0 0.0 0.0 JREI RE-078 Castalia Oshiage 1,100 1,003 96 1,100 1,100 0 4.7 5.0/4.8 4.9 4.7 5.0/4.8 4.9 0.0 0.0 0.0 Tanizawa RE-079 Castalia Kuramae 1,260 1,158 301 1,430 1,460 30 4.6 4.8/4.7 4.8 4.5 4.7/4.6 4.7 -0.1 -0.1 -0.1 Tanizawa RE-080 Castalia Nakanobu 1,790 1,686 893 2,560 2,580 20 4.4 4.2 4.6 4.3 4.1 4.5 -0.1 -0.1 -0.1 Chuo RE-081 Royal Parks Toyosu 7,360 6,506 3,203 9,190 9,710 520 4.8 4.5 5.1 4.7 4.4 5.0 -0.1 -0.1 -0.1 Chuo RE-082 Castalia Togoshi 1,770 1,632 877 2,500 2,510 10 4.5 4.3 4.7 4.4 4.2 4.6 -0.1 -0.1 -0.1 Chuo RE-083 Castalia Ooimachi 1,181 1,178 271 1,450 1,450 0 4.2 4.1 4.4 4.2 4.1 4.4 0.0 0.0 0.0 Morii RE-084 Castalia Omori 1,500 1,459 320 1,760 1,780 20 4.5 4.3 4.7 4.4 4.2 4.6 -0.1 -0.1 -0.1 Chuo RE-085 Castalia Mishuku 1,900 1,867 422 2,280 2,290 10 4.5 4.3 4.7 4.4 4.2 4.6 -0.1 -0.1 -0.1 Chuo RE-086 Castalia Arakawa 1,660 1,590 549 2,100 2,140 40 4.7 4.5 4.9 4.6 4.4 4.8 -0.1 -0.1 -0.1 Chuo RE-087 Castalia Omori II 2,370 2,306 453 2,760 2,760 0 4.3 4.1 4.5 4.3 4.1 4.5 0.0 0.0 0.0 Morii RE-088 Castalia Nakameguro 3,800 3,797 472 4,400 4,270 -130 4.1 3.9 4.3 4.1 3.9 4.3 0.0 0.0 0.0 Morii RE-089 Castalia Meguro Chojyamaru 2,030 2,027 272 2,300 2,300 0 4.1 3.9 4.3 4.1 3.9 4.3 0.0 0.0 0.0 Morii RE-090 Castalia Meguro Takaban 1,750 1,767 112 1,880 1,880 0 4.4 4.2 4.6 4.4 4.2 4.6 0.0 0.0 0.0 Morii RE-091 Castalia Omori III 1,520 1,504 185 1,690 1,690 4.3 4.1 4.5 4.3 4.1 4.5 0.0 0.0 0.0 Morii RE-092 Morino Tonari 1,020 1,061 108 1,170 1,170 0 4.3 4.1 4.5 4.3 4.1 4.5 0.0 0.0 0.0 JREI RE-093 Castalia Meguro Tairamachi 1,165 1,220 19 1,240 1,240 0 4.1 3.9 4.3 4.1 3.9 4.3 0.0 0.0 0.0 Morii RE-094 Royal Parks SEASIR 4,350 4,387 492 4,830 4,880 50 5.6 5.4/5.8 5.6 5.4/5.8 - 0.0 0.0 Morii 47#49Appraisal Value Changes Comparison (5) Daiwa House REIT Investment Corporation (million yen) (%) Appraisal value (Note 1) Aug. 2016 Feb. 2017 Change Property number Property name Acquisition Book value Unrealized price Feb. 2017 gain/loss Aug. 2016 Feb. 2017 Change Direct cap DCF Direct cap DCF Direct cap DCF Appraiser (Note 2) CR DR TCR CR DR TCR CR DR TCR RE-095 Castalia Honkomagome 1,520 1,549 120 1,670 1,670 0 4.5 4.3 4.7 4.5 4.3 4.7 0.0 0.0 0.0 Morii RE-096 Cosmo Heim Musashikosugi 1,674 1,609 360 1,940 1,970 30 5.0 4.8 5.2 4.9 4.7 5.1 -0.1 -0.1 -0.1 Chuo RE-097 Castalia Tsurumi 666 605 124 720 730 10 5.3 5.1 5.5 5.2 5.0 5.4 -0.1 -0.1 -0.1 Chuo RE-098 Castalia Funabashi 704 689 85 770 775 5 5.2 5.2/5.0 5.4 5.1 5.1/4.9 5.3 -0.1 -0.1 -0.1 Tanizawa RE-099 Castalia Nishi Funabashi 783 758 129 887 888 1 5.4 5.2 5.6 5.4 5.2 5.6 0.0 0.0 0.0 JREI RE-100 Castalia Maihama 670 617 27 635 645 10 RE-101 Castalia Ichikawamyoden 671 628 86 703 715 12 12 5.4 5.4 5.6 5.3 5.3 5.5 -0.1 -0.1 -0.1 Tanizawa 5.3 5.5 5.6 5.2 5.4 5.5 -0.1 -0.1 -0.1 Tanizawa RE-102 Castalia Urayasu 592 574 48 614 623 9 5.3 5.3 5.6 5.2 5.2 5.5 -0.1 -0.1 -0.1 Tanizawa RE-103 Castalia Minamigyotoku 543 509 -6 493 503 10 5.2 5.2 5.4 5.1 5.1 5.3 -0.1 -0.1 -0.1 Tanizawa RE-105 Castalia Nogeyama 325 302 15 317 318 1 5.4 5.2 5.6 5.3 5.1 5.5 -0.1 -0.1 -0.1 JREI RE-106 Castalia Ichikawa 461 415 105 513 521 8 5.4 5.2 5.6 5.3 5.1 5.5 -0.1 -0.1 -0.1 JREI RE-107 Royal Parks Hanakoganei RE-108 Castalia Musashikosugi 5,300 4,971 1,098 5,900 6,070 170 5.3 5.1/5.5 5.2 5.0/5.4 - -0.1 -0.1 Daiwa 1,680 1,673 226 1,900 1,900 0 4.6 4.4 4.8 4.6 4.4 4.8 0.0 0.0 0.0 Morii RE-109 Royal Parks Wakabadai 4,360 4,185 724 4,750 4,910 160 5.4 5.2/5.6 5.3 5.1/5.5 -0.1 -0.1 Daiwa RE-110 Pacific Royal Court Minatomirai Urban Tower 9,100 9,145 1,554 10,600 10,700 100 5.1 4.9/5.3 - 5.1 4.9/5.3 0.0 0.0 Morii RE-111 L-Place Shinkoyasu 1,720 1,770 199 1,940 1,970 30 5.2 5.0 5.4 5.1 4.9 5.3 -0.1 -0.1 -0.1 JREI RE-112 Royal Parks Musashikosugi 1,060 1,064 205 1,270 1,270 0 5.1 4.9/5.3 5.1 4.9/5.3 0.0 0.0 - Morii RE-113 Castalia Shinsakae 1,920 1,683 -103 1,580 1,580 0 5.1 4.9 5.3 5.0 4.8 5.2 -0.1 -0.1 -0.1 Chuo RE-114 Aprile Tarumi 1,340 1,209 360 1,550 1,570 20 5.7 5.5 5.9 5.6 5.4 5.8 -0.1 -0.1 -0.1 JREI RE-115 Crest Kusatsu 3,004 2,922 -962 1,940 1,960 20 7.1 7.2 7.3 7.0 7.1 7.2 -0.1 -0.1 -0.1 Tanizawa RE-116 Castalia Sakaisuji Honmachi 1,490 1,350 319 1,600 1,670 70 5.1 5.2 5.3 4.9 5.0 5.1 -0.2 -0.2 -0.2 Tanizawa RE-117 Castalia Shin-Umeda 1,376 1,236 253 1,420 1,490 70 5.2 5.3 5.4 5.0 5.1 5.2 -0.2 -0.2 -0.2 Tanizawa RE-118 Castalia Abeno 4,368 4,085 724 4,620 4,810 190 5.1 5.2 5.3 4.9 5.0 5.1 -0.2 -0.2 -0.2 Tanizawa RE-119 Castalia Sakae 1,010 931 278 1,190 1,210 20 5.0 4.8 5.2 4.9 4.7 5.1 -0.1 -0.1 -0.1 Chuo RE-120 Castalia Nipponbashi Kouzu 3,570 3,180 709 3,740 3,890 150 5.2 5.3 5.4 5.0 5.1 5.2 -0.2 -0.2 -0.2 Tanizawa RE-121 Castalia Maruyama Urasando 411 372 126 494 499 5 5.3 5.3 5.5 5.2 5.2 5.4 -0.1 -0.1 -0.1 Tanizawa RE-122 Castalia Maruyama Omotesando 1,740 1,583 436 1,940 2,020 80 5.3 5.3 5.5 5.1 5.1 5.3 -0.2 -0.2 -0.2 Tanizawa RE-123 Castalia Higashi Hie 960 865 134 985 1,000 15 5.2 5.4 5.4 5.1 5.3 5.3 -0.1 -0.1 -0.1 Tanizawa RE-124 Castalia Tower Nagahoribashi 3,400 3,041 1,408 4,370 4,450 80 4.9 4.7 5.1 4.8 4.6 5.0 -0.1 -0.1 -0.1 Chuo RE-125 Castalia Sannomiya 1,230 1,102 387 1,470 1,490 20 5.2 5.0 5.4 5.1 4.9 5.3 -0.1 -0.1 -0.1 Daiwa RE-126 Castalia Kotodaikoen 481 428 117 536 546 10 5.5 5.5 5.7 5.4 5.4 5.6 -0.1 -0.1 -0.1 Daiwa RE-127 Castalia Ichibancho 783 711 220 915 932 17 5.5 5.5 5.7 5.4 5.4 5.6 -0.1 -0.1 -0.1 Daiwa 48#50Appraisal Value Changes Comparison (6) Daiwa House REIT Investment Corporation (million yen) (%) Appraisal value (Note 1) Aug. 2016 Feb. 2017 Change Property number Property name Acquisition Book value Unrealized price Feb. 2017 gain/loss Aug. 2016 Feb. 2017 Direct cap DCF Direct cap DCF Direct cap DCF Appraiser (Note 2) Change CR DR TCR CR DR TCR CR DR TCR RE-128 Castalia Omachi 656 625 113 726 739 13 5.5 5.5 5.7 5.4 5.4 5.6 -0.1 -0.1 -0.1 Daiwa RE-129 Castalia Uemachidai 2,190 2,000 629 2,590 2,630 40 4.9 4.7 5.1 4.8 4.6 5.0 -0.1 -0.1 -0.1 Daiwa RE-130 Castalia Tower Higobashi 2,670 2,443 1,086 3,490 3,530 40 4.9 4.7 5.1 4.8 4.6 5.0 -0.1 -0.1 -0.1 Chuo RE-131 Big Tower Minami Sanjo 1,740 1,410 1,159 2,490 2,570 80 5.4 5.2 5.6 5.3 5.1 5.5 -0.1 -0.1 -0.1 Daiwa RE-132 Castalia Fushimi 2,260 2,055 954 2,980 3,010 30 5.0 4.8 5.2 4.9 4.7 5.1 -0.1 -0.1 -0.1 JREI RE-133 Castalia Meieki Minami 720 684 212 897 897 0 4.7 4.5 4.9 4.7 4.5 4.9 0.0 0.0 0.0 Morii RE-134 Castalia Yakuin 930 910 209 1,110 1,120 10 4.8 4.6 5.0 4.8 4.6 5.0 0.0 0.0 0.0 Morii RE-135 Castalia Mibu 1,193 1,147 292 1,440 1,440 0 5.0 4.8 5.2 5.0 4.8 5.2 0.0 0.0 0.0 JREI RE-136 Castalia Tsutsujigaoka 1,208 1,187 472 1,690 1,660 -30 5.1 4.9 5.3 5.1 4.9 5.3 0.0 0.0 0.0 Morii RE-137 Castalia Ohori Bay Tower 2,910 2,756 993 3,750 3,750 0 5.3 5.1 5.5 5.3 5.1 5.5 0.0 0.0 0.0 Morii RE-138 Royal Parks Namba 2,830 2,667 262 3,080 2,930 -150 5.7 5.6/6.0 -- 5.6 5.5/5.9 - -0.1 -0.1 - Daiwa RE-139 Castalia Shigahondori 1,730 1,667 402 2,140 2,070 -70 5.2 5.0 5.4 5.1 4.9 5.3 -0.1 -0.1 -0.1 JREI RE-140 Castalia Kyoto Nishioji 973 1,037 2 1,030 1,040 10 4.9 4.7 5.1 4.8 4.6 5.0 -0.1 -0.1 -0.1 Morii RE-141 Castalia Ningyocho III 2,000 2,042 207 2,180 2,250 70 4.4 4.2 4.6 4.3 4.1 4.5 -0.1 -0.1 -0.1 JREI RE-142 Royal Parks Umejima 2,020 2,084 75 2,150 2,160 10 5.6 5.4/5.8 5.6 5.4/5.8 0.0 0.0 Morii Residential Properties Total 257,954 245,129 40,608 281,329 285,738 4,409 RM-001 ACROSSMALL Shinkamagaya 7,770 7,716 93 7,770 7,810 40 6.0 5.7 6.2 5.9 5.6 6.1 -0.1 -0.1 -0.1 JREI RM-002 FOLEO Hirakata 4,580 4,552 27 4,580 4,580 0 6.4 5.8 6.4 6.2 5.7 6.3 -0.2 -0.1 -0.1 JREI RM-003 QIZ GATE URAWA 4,270 4,300 -30 4,270 4,270 0 5.6 5.2 5.7 5.5 5.1 5.6 -0.1 -0.1 -0.1 JREI RM-004 UNICUS Takasaki 3,000 2,989 30 3,000 3,020 20 6.5 6.2 6.7 6.4 6.1 6.6 -0.1 -0.1 -0.1 JREI RM-005 ACROSSPLAZA Miyoshi (Land) 3,740 3,740 60 3,740 3,800 60 - 4.6 4.5 - -0.1 Tanizawa RM-006 DREAM TOWN ALI 8,100 8,061 38 8,100 8,100 0 6.0 5.8 6.3 RR-001 LIFE Sagamihara Wakamatsu 1,670 1,667 22 1,670 1,690 20 5.2 4.8 5.3 RR-002 FOLEO Sendai Miyanomori 6,960 6,938 101 6,960 7,040 80 6.0 5.7 6.2 555 5.9 5.7 6.2 -0.1 -0.1 -0.1 JREI 5.1 4.7 5.2 -0.1 -0.1 -0.1 JREI 5.9 5.6 6.1 -0.1 -0.1 -0.1 JREI RR-003 ACROSSPLAZA Inazawa (Land) Sports Depo and GOLF5 2,390 2,390 20 2,390 2,410 RR-004 2,230 2,231 68 2,280 2,300 Kokurahigashi IC Store RR-005 Hiratsuka Retail Property (Land) 5,620 5,857 772 6,630 6,630 220 5.5 - 5.4 - -0.1 JREI 6.4 6.4/6.5 6.6 6.3 6.3/6.4 6.5 -0.1 -0.1 -0.1 Tanizawa 4.0 4.0 0.0 - Tanizawa Retail Properties Total 50,330 50,445 1,204 51,390 51,650 260 OT-001 Urban Living Inage 930 897 382 1,260 1,280 20 5.4 5.2 5.6 5.3 5.1 5.5 -0.1 -0.1 -0.1 Daiwa OT-002 Aburatsubo Marina HILLS 1,100 1,106 153 1,250 1,260 10 6.2 6.0 6.4 6.1 5.9 6.3 -0.1 -0.1 -0.1 JREI Naha Shin-Toshin Center Building OT-003 7,600 7,586 123 7,630 7,710 80 5.8 5.6 6.0 5.7 5.5 5.9 -0.1 -0.1 -0.1 Daiwa (Daiwa Roynet Hotel Naha-Omoromachi) Other Assets Total 9,630 9,590 659 10,140 10,250 110 T 49#51Appraisal Value Changes Comparison (7) Daiwa House REIT Investment Corporation (million yen) (%) Appraisal value (Note 1) Aug. 2016 Feb. 2017 Change Property number Property name Acquisition Book value Unrealized price Feb. 2017 gain/loss Aug. 2016 Feb. 2017 Change Direct cap DCF Direct cap DCF Direct cap DCF Appraiser (Note 2) CR DR TCR CR DR TCR CR DR TCR Portfolio Total 513,772 500,196 47,179 538,767 547,376 8,609 I - - Acquisitions in April 2017 LB-035 D Project Kawagoe III 7,200 7,260 LB-036 D Project Kazo 3,300 - LB-037 D Project Urayasu III 8,500 I LB-038 D Project Tomisato 5,000 - LB-039 D Project Kyotanabe 3,520 3,350 8,880 5,030 3,550 | | | | | 4.8 4.8/4.9 5.0 5.0 5.0/5.1 5.2 4.2/4.3 - 4.3 4.5 /4.4 - ||| 5.0 5.0/5.1 5.2 5.7 5.3 6.0 LB-040 D Project Sendai Izumi 1,510 1,560 - 5.5 5.2 5.7 LB-041 D Project Oyama 2,000 - 2,010 - LB-042 D Project Sano 1,780 - 1,780 - LB-043 D Project Tatebayashi 3,100 - LB-044 D Project Kakegawa 6,000 3,120 6,070 LB-045 D Project Hiroshima Seifu 3,820 - 3,860 - - LB-046 D Project Tosu II 1,700 - 1,740 ― LM-001 DPL Misato 16,831 16,900 RE-143 Castalia Shinsakae II 1,800 1,850 OT-004 Sharp Hiroshima Building 1,850 1,890 Total of Acquisitions in April 2017 67,911 Portfolio Grand Total 581,683 I I - 68,850 - I | || | ||||||| 5.6 5.7 5.8 - 5.6 5.6 5.8 5.6 5.6 5.8 - 5.7 5.5 5.9 - 5.7 5.2 6.1 - 5.3 5.3/5.4 5.5 - 4.3 4.3/4.4 4.5 5.1 4.9 5.3 5.5 5.3 5.7 - - - - 616,226 1 I I | | | | I I I I | | | | 1 | | Tanizawa Tanizawa Tanizawa Tanizawa JREI JREI - Tanizawa - Tanizawa Tanizawa JREI ― JREI Tanizawa - Tanizawa Daiwa - JREI I (Note 1) For the properties acquired in the period ended February 2017 (LB-033, LB-034, RE-141, RE-142, RR-004, RR-005 and OT-003), "Appraisal value" as of the period ended Aug. 2016 is based on the appraisal value at the time of 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": Morii Appraisal & Investment Consulting Inc. 50#52Unit Price Performance // Unit Price and Trading Volume (yen) 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 Daiwa House REIT Investment Corporation 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 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. // Relative Unit Price Performance Since Announcement of the Merger on April 15, 2016 140 130 120 110 100 90 80 16/4/15 16/5/15 16/6/14 16/7/14 16/8/13 16/9/12 16/10/12 16/11/11 16/12/11 17/1/10 17/2/9 17/3/11 17/4/10 Daiwa House REIT TSE REIT Index (Note) Indexed with the April 15, 2016 (announcement date of the merger) closing prices of DHR's unit and TSE REIT Index. (units) 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 51#53Unitholders Number of Unitholders and Units by Unitholder Type Period ended Aug. 2016 // Major Unitholders O Daiwa House REIT Investment Corporation Unitholder type Number of unitholders Number of units Period ended Feb. 2017 Number of unitholders Period ended Feb. 2017 Number of units Name Unitholders (%) Units (%) Unitholders (%) Units Individuals and others 5,966 92.8 39,753 5.3 10,077 92.9 (%) 77,264 5.1 Number of Ownership units owned (%) Japan Trustee Services Bank, Ltd. (Trust Account) 335,526 22.1 Financial institutions 96 96 1.5 491,438 65.7 141 1.3 917,313 60.4 Daiwa House Industry Co., Ltd. 169,600 11.2 Banks / trust banks 49 0.8 436,004 58.3 63 63 0.6 823,499 54.2 City banks 0 0.0 0 0.0 0 0.0 0 0.0 The Master Trust Bank of Japan, Ltd. (Trust Account) 154,040 10.1 Regional banks 35 0.5 76,427 10.2 48 188 0.4 130,805 8.6 Trust & Custody Services Bank, Ltd. (Securities Investment Trust Account) 103,934 6.8 Trust banks 14 0.2 359,577 48.1 15 0.1 692,694 45.6 Life insurance 8 0.1 21,523 2.9 7 0.1 31,950 2.1 The Nomura Trust and Banking Co., Ltd. (Investment Trust Account) 52,026 3.4 companies Non-life insurance 2 0.0 14,474 1.9 3 0.0 23,395 1.5 companies State Street Bank West Client - Treaty 505234 25,250 1.7 Other financial 37 0.6 19,437 2.6 68 0.6 38,469 2.5 institutions - State Street Bank - West Pension Fund Clients Exempt 505233 23,617 1.6 Shinkin banks 27 0.4 11,070 1.5 15 445 0.4 22,374 1.5 Others 10 10 0.2 8,367 1.1 23 0.2 16,095 1.1 State Street Bank and Trust Company 505012 23,372 1.5 Other domestic 121 1.9 88,841 11.9 232 2.1 199,103 13.1 corporations The Fuji Fire and Marine Insurance Co., Ltd. 21,236 1.4 Foreign corporations 237 3.7 125,976 16.8 382 3.5 293,557 19.3 and individuals Securities firms 11 Trust & Custody Services Bank, Ltd. (Money Trust Taxable Account) 15,264 1.0 11 0.2 1,732 0.2 19 0.2 32,043 2.1 Total 6,431 100.0 747,740 100.0 Total 10,851 100.0 1,519,280 100.0 923,865 60.8 52#54REIT 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 Co., Ltd. Daiwa Logistics Co., Ltd. Board of Directors Executive Director : Jiro Kawanishi Supervisory Director : Tetsuya Iwasaki Supervisory Director : Hiroshi Ishikawa Independent Auditor Ernst & Young ShinNihon LLC (1) (3) 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 The Bank of Tokyo-Mitsubishi UFJ, 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. 53#55Disclaimer 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.