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Investor Presentaiton

Balance Sheet for February 2019 Period Daiwa House REIT Investment Corporation Increase in appraisal value from the compression of the cap rate (+14.3 Bn yen vs Aug. 2018) LTV (excluding goodwill) 45.4% (+0.5 p.p. vs Aug. 2018) Period ended Aug. 2018 Period ended Feb. 2019 (mil yen) Period-on-period change Major Variation Factors (period-on-period) Increase in total assets 6,445 mil yen Total Assets 771,281 777,727 6,445 ⚫Acquisition of 4 properties in Sep. and Dec. 2018 Disposition of 1 property in Dec. 2018 Current assets 41,805 42,135 329 Increase in interest-bearing debt 7,000 mil yen Non-current assets 729,377 735,501 6,124 ■New loans Investment properties 646,194 654,523 8,328 Decrease in net assets -1,373 mil yen Intangible assets 77,398 75,368 -2,030 ⚫Decrease in reserve for temporary difference adjustments Goodwill 71,360 69,377 -1,982 Total Liabilities 340,685 348,504 7,818 Unrealized Gain by Asset Class (mil yen) Current liabilities 17,948 47,108 29,159 Asset class Book value Interest-bearing debt 11,600 40,510 28,910 Logistics 335,395 Appraisal value 361,602 Unrealized gain 26,206 Non-current liabilities 322,737 301,396 -21,340 Residential 228,762 287,859 59,096 Interest-bearing debt 302,668 280,758 -21,910 Retail 78,921 85,330 6,408 Net Assets 430,596 429,223 -1,373 Hotel 6,279 6,430 150 Reserve for temporary 10,785 8,804 -1,980 difference adjustments (Note 1) Other 11,136 12,500 1,363 Reserve for distribution (Note 2) 1,964 1,986 22 Total 660,496 753,721 93,224 LTV (excluding goodwill) 44.9 % 45.4 % 0.5 p.p. Trend of Unrealized Gain LTV (including goodwill) 40.7 % 41.3 % 0.6 p.p. (mil yen) Logistics 93,224 100,000 Number of investment units issued 1,927,000 units Net Assets per unit NAV per unit (Note 3) 223,454 yen 254,168 yen 1,927,000 units 222,741 yen 261,610 yen 78,885 Residential 80,000 59,410 63,322 -713 yen 60,000 Retail 47,179 35,048 7,442 yen 40,000 Hotel 20,000 (Note 1) Reserve for temporary difference adjustments for the period ended Feb. 2019 represents the amount before reversal and the amount after reversal is 6,823 mil yen. (Note 2) Reserve for distribution for the period ended Feb. 2019 represents the amount before accumulation and the amount after accumulation is 2,106 mil yen. (Note 3) NAV per unit: (Unitholders' capital + capital surplus + unrealized gain or loss) / number of investment units issued Other 0 Sep. 1, Feb. 2017 Aug. 2017 Feb. 2018 Aug. 2018 Feb. 2019 2016 (Merger) 6
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