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To Our Investors

We would like to express our deep gratitude to all our unitholders for your support of Daiwa Office Investment Corporation (DOI). In the 21st Fiscal Period, DOI posted operating revenues of 12,363 million yen and operating income of 6,108 million yen. Our distribution per unit for the 21st Fiscal Period is 10,508 yen, an increase by 820 yen from the 20th Fiscal Period.

Average contract rent at the end of the 21st Fiscal Period increased 367 yen from the end of the previous fiscal period to 19,105 yen, indicating an increase for the third consecutive fiscal period. Rent revisions contributed to 13 million yen increase in monthly contracted rents from the end of the previous fiscal period, which was a 7.2% rate of increase for average monthly rent. Tenants moving in/out led to 9 million yen of net increase in monthly contracted rents from the end of the previous fiscal period, and the rate of increase for average monthly rent increased 2.6% due to replacement of tenants. Occupancy rate improved 0.4 percentage points from the end of the previous fiscal period to 98.7%. We will realize sustainable internal growth through the thorough implementation of the hands-on approach that continuously applies “Bonji-Tettei” as the code of conduct.

During the 21st Fiscal Period, DOI acquired 2 properties of Nikko Building, Kirin Nihonbashi Building (total acquisition price: 21,890 million yen) and sold 2 properties of Daiwa Shibuya Dougenzaka and Daiwa Minami-Senba (total sale price: 9,720 million yen). Through such asset replacement, DOI improved the quality of its portfolio. In addition, DOI acquired Heiwa Higashi-nihonbashi Building, Square Daikanyama Building, Shinjuku West Building and Ogikubo TM Building (total acquisition price: 13,392 million yen) using funds obtained through the public offering conducted in July 2016. DOI will continue to selectively acquire office properties centering on the five central wards of Tokyo in an effort to further improve the value of its portfolio.

In financial matters, DOI promoted diversification of repayment dates by taking out long-term borrowings. DOI will continue striving to further strengthen financial structure while working to reduce future refinancing risks.

DOI will continue to increase the competitiveness of its properties and aim to achieve its medium- to long-term goal of continuous growth through the utilization of investment capacity from capital increase, etc., while increasing long-term EPS (net income after deducting gain on sales of properties). We wish for the continued success of our unitholders and ask for your continued support of DOI.

August 2016
Executive Director of Daiwa Office Investment Corporation
Yoshimi Murakami