Investor Presentaiton

Statements 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

View entire presentation