Basic Policy

The Investment Corporation aims for securing of stable long-term EPS (*) and sustainable growth of investment assets into the future through investment management that is selective in terms of region, size, etc. based on the characteristics of office buildings and through flexible management that is responsive to changes in real estate market conditions.
The Asset Manager shall engage in management that makes the best use of Daiwa Securities Group's management resources, as well as engage in highly-transparent management that places importance on compliance.

• "Long-term EPS" is EPS (net income per unit) after deducting gain on sales of properties.

Portfolio Development Policy

1.Use of Investment Target Assets

The Investment Corporation shall target investment in real estate used primarily as offices and specified assets backed by such real estate.
Furthermore, even in such cases as use by an incorporated educational institution or use mainly as a data center, in cases where use is recognized to be equivalent or similar to offices, such properties may be set as a target of investment as those used as offices. In addition, in the case of those intended for other uses but readily convertible to offices, such properties may be set as a target of investment as those used as offices.
In cases where there are non-office-use portions of the investment target real estate, properties with the leasable floor area of the office portion (including portions that are readily convertible to offices; hereinafter the same) accounting for over 50% of the total leasable floor area shall be set as a target of investment; provided, however, that in cases where several real estate can be used in an integrated manner in socioeconomic terms, in cases where an assessment of these in an integrated manner deems that these are primarily used as offices, on the condition that the leasable floor area of the office portion of the real estate, etc. that the Investment Corporation is to hold in relation to this accounts for over 50% of the total leasable floor area, the Investment Corporation may acquire the concerned real estate, etc.

2.Ratio of Investment in Investment Target Areas

The Investment Corporation conducts selective investment in regions where office demand can be anticipated. In the selection of investment target assets, investment is made with the "Five Central Wards of Tokyo" (Chiyoda, Chuo, Minato, Shinjuku and Shibuya Wards) as a top priority investment area, the "Tokyo Metropolitan Area" (Tokyo excluding the Five Central Wards of Tokyo, and the Kanagawa, Chiba and Saitama Prefectures) as a focused investment area and "Regional Major Cities" (Osaka metropolitan area (Osaka, Kyoto and Hyogo Prefectures), Nagoya metropolitan area (Aichi, Mie and Gifu Prefectures), and ordinance-designated cities and core cities set forth in the Local Autonomy Act) as a potential investment area.
Furthermore, investments may temporarily deviate from the above ratios of investment based on asset size (the "investment ratios") for such reasons as acquisition of highly-competitive large-scale properties in view of securing stable revenues and sustainable growth of investment assets into the future.

Investment Target Areas	Investment Priority	Ratio（ Note 1 ）
Five Central Wards of Tokyo（ Note 2 ）	Top Priority Investmen Area	60% or more
Tokyo metropolitan Area（ Note 3 ）	Investment Area	40% or less
Regional Cities（ Note 4 ）	Potential Investment Area	20% or less

• based on acquisition price
• The Five Central Wards of Tokyo are Chiyoda, Chuo, Minato, Shinjuku and Shibuya Wards.
• Tokyo Metropolitan Area is Tokyo, Kanagawa, Chiba and Saitama Prefectures (excluding the Five Central Wards of Tokyo).
• Regional Major Cities are the Osaka metropolitan area (Osaka, Kyoto and Hyogo Prefectures), Nagoya metropolitan area (Aichi, Mie and Gifu Prefectures), and ordinance-designated cities and core cities set forth in the Local Autonomy Act

3.Size

The Investment Corporation shall target investment in office buildings with a total floor area of 2,000㎡ or more.

4.Diversification of building age

The Investment Corporation aims to get a stable profit by diversifying building ages of the properties that the Investment Corporation will acquire.