平成18年4月●日 For Immediate Release

May 27, 2015
Investment Corporation: Daiwa House Residential Investment Corporation
7th Floor, Nissei Nagatacho Building
2-4-8 Nagatacho, Chiyoda-ku, Tokyo Tetsuji Tada, Executive Director (Code Number: 8984)
Asset Manager: Daiwa House Asset Management Co., Ltd.
Koichi Tsuchida, CEO & President
Inquiries: Hirotaka Uruma, CFO & Director Finance & Corporate Planning Department TEL: +81-3-3595-1265

Notice Concerning Signing of Interest Rate Swap Agreement

Daiwa House Residential Investment Corporation ("DHI") announces its decision to enter into interest rate swap agreement. The details are as follows:
1. Reason for entering into Interest Rate Swap Agreements
To hedge the risk of interest rate fluctuations of variable rate loan (Note) (Term Loan XI) that executed on
May 1, 2015.

(Note) Please refer to the press release "Notice Concerning Debt Financing" announced on April 9, 2015 and "Notice

Concerning Debt Financing Lenders" announced on April 22, 2015.

2. Overview of Interest Rate Swap Agreement

Counterparty

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Notional principal

¥10,000,000,000

Interest rate

Fixed interest payable 0.361%

Variable interest receivable 1 month Japanese Yen TIBOR

Effective date

May 29, 2015

Termination date

April 28, 2022

Interest payment dates

First payment on the last day of June 2015 (or last business day of the months).

Subsequent payment on the last day of respective months (or last business day of the respective months) and the end of the contract which is April 28, 2022.

Because of the aforementioned agreements, the interest rates applicable from May 29, 2015 and thereafter for the Term Loan XI will be in effect fixed at 0.661%.

This English language notice is a translation of the Japanese language notice issued on the same day and was prepared solely for the convenience of, and reference by, overseas investors. DHI makes no warranties as to its accuracy or completeness.

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* This press release is to be distributed to the Kabuto Club (the press club of the Tokyo Stock Exchange); the Ministry of Land, Infrastructure, Transport and Tourism Press Club; and the Ministry of Land, Infrastructure, Transport and Tourism Press Club for Construction Publications.

* URL of the DHI's website: http://daiwahouse-resi-reit.co.jp/eng/

This English language notice is a translation of the Japanese language notice issued on the same day and was prepared solely for the convenience of,

and reference by, overseas investors. DHI makes no warranties as to its accuracy or completeness.

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