197cb84c-7907-4270-a8f2-7e0c809f08f8.pdf


Investor Presentation for the Merger



0

April 18, 2016

Rationale of the Merger


Enhanced external growth potential and further internal growth opportunities

1 through the shift to a "diversified REIT"


Improvement of the position in the J-REIT market and more flexible asset management

2 through "scale enhancement"



3

Acceleration of growth leveraging the value chain of "Daiwa House Group's

integrated capabilities"


"Creating Dreams, Building Hearts"



Maximizing unitholder value based on secured cash flow and improved and stable distribution through solid growth of portfolio


1

Merger scheme and Schedule


Merger Overview



REIT


Asset management

agreement

Merger


Daiwa House Residential Investment Corporation

re-named as:


Daiwa House REIT Investment Corporation


New asset manager:


Asset management agreement

The Merged REIT:



Asset manager

Asset management

agreement


Daiwa House Asset Management Co., Ltd.

Merger




Merger ratio


1 : 2.2

Merger scheme (REIT)

Daiwa House REIT Investment Corporation unitholders' meeting (planned)

May 27

Merger schedule



Merger method

The merger will be an absorption-type merger wherein Daiwa House Residential is to be the surviving corporation;

Daiwa House REIT is to be the absorbed corporation.

Execution of the merger agreements

(between corresponding REITs and the asset managers)

April 15, 2016



Unitholders' meeting resolution

Requirement: Approval (Note 2) (by extraordinary resolution (Note 1)) of the merger agreement at unitholders' meetings of the respective REITs

(The unitholders' meeting resolutions of Daiwa House Residential and Daiwa House REIT, respectively, are required for the merger to be effective.)

Daiwa House REIT Investment Corporation delisting date (planned)

August 29

Daiwa House Residential Investment Corporation unitholders' meeting (planned)

June 17

Effective date of the merger (planned)

September 1

(Note 1) Attendance by the unitholders who hold a majority of the issued units and approval by two-thirds or more of the voting rights represented by the unitholders present at the meeting are required.

When there is no contradictory agenda item, the unitholder will be deemed to have approved the proposals submitted to the general meeting of unitholders.

(Note 2) For the surviving corporation, approval of the agenda item regarding the article changes (extraordinary resolution) shall be required; for the absorbed corporation, approval of the agenda item

(Note 2) regarding termination of the asset management agreement (ordinary resolution (Note 3)) shall be required.


(Note 3) Approval by a majority of the voting rights represented by the unitholders present at the meeting.

When there is no contradictory agenda item, the unitholder will be deemed to have approved the proposals submitted to the general meeting of unitholders.

(Note 4) The unitholders' meeting record date for Daiwa House REIT Investment Corporation is Feb. 29, 2016.

The unitholders' meeting record date for Daiwa House Residential Investment Corporation is scheduled

on May 6, 2016. 2

Positioning in the J-REIT market in terms of asset size


Daiwa House Residential (Note)

Daiwa House REIT (Note)



(Bn yen)

1,200


1,101.9

(Bn yen)

500

400

300

200

100

0


433.6

No. 3 of 9 residential J-REITs


298.7 256.3

220.2


200.7

(Bn yen)

500

400

300

200

100

0


447.1

No. 4 of 5 logistics J-REITs


384.6


212.6 206.3


161.4

Advance

Nippon

Daiwa

Japan

Sekisui

Nippon

GLP Japan

Daiwa House

LaSalle

1,000


800


923.6


859.0

Residence Accommodations

Fund


807.3

House Residentia

Rental Housing

House

SI Residential

Prologis REIT

Logistics Fund

REIT

LOGIPORT



600 575.4574.8

No.7

506.8


447.1


400


200


No.19 256.3


No. 27

206.3


0

Nippon

Building Fund


Japan Real Estate


Japan Retail Fund


Nomura Real Estate Master Fund


United Urban


ORIX JREIT


The Merged REIT Nippon Prologis

REIT


Daiwa House Residential


Daiwa House REIT

(Note) The total value of acquisition prices as of Mar. 31, 2016 for each corporation's portfolio (including properties for anticipated acquisition or disposition) is presented.

The figure for Daiwa House REIT includes anticipated acquisition of D Project Tosu extension in Jun. 2016.

The Merged REIT's asset size is the sum of "Daiwa House Residential's acquisition price as of the end of the period ending Feb. 2016" , "Daiwa House REIT's appraisal value as of the end of the period ending Feb. 2016" and "anticipated acquisition price of six anticipated acquisitions"

Digits below one hundred million yen are truncated for the amounts of each corporation's asset size. 3

Growth record and future target


Stand-alone growth of the investment corporations



  • Mainly acquire properties developed by Daiwa House Group, and aim 800 billion yen in asset size

Further accelerated growth as the Merged REIT



(Bn yen)

800


Asset size (acquisition price) BLife

Daiwa House Residential Daiwa House REIT


IPO of Daiwa House REIT

Merger of the investment corporations


800

Bn yen


600


400


Merger of BLife and New City Residence

Renamed to

Daiwa House Residential


327.1 338.1348.9

114.5 117.0119.0


379.5385.1


144.1147.5


451.3 460.1 462.7


195.9 203.7 206.3


506.8


Steady growth


200


32.051.1

192.6 192.1 192.1 210.2211.0


212.6 221.0 229.9 235.3 237.6 255.3 256.3 256.3


0

end of


end of


end of


end of


end of


end of


end of


end of


end of


end of


end of


end of


end of


end of


end of


after

Nov. 2006

Nov.2009

Aug. 2010 Feb. 2011

Aug. 2011 Feb. 2012

Aug. 2012

Feb. 2013

Aug. 2013

Feb. 2014

Aug. 2014

Feb. 2015

Aug. 2015

Feb. 2016

Aug. 2016 acquisition

of six new

(planned)

properties (planned)


(Note) Since digits below one hundred million yen are truncated for the asset size of Daiwa House Residential and Daiwa House REIT, the total amount of each total asset size displayed may not fit in the sum of above figures.

The Merged REIT's asset size is the sum of "Daiwa House Residential's acquisition price as of the end of the period ending Feb. 2016", "Daiwa House REIT's appraisal value as of the end of Feb. 2016" and "anticipated acquisition price of six anticipated acquisitions"

4

Enlarged opportunities of property acquisitions and more flexible asset management


  • The Merged REIT will expand its target asset types in line with Daiwa House Group's broad-based development initiatives

  • Furthermore, it will be able to take various measures to improve portfolio quality such as asset reshuffle, etc.



R&D properties

(Note)

Ariake Central Tower


Daiwa Royal Ariake Project


Residential properties


Healthcare facilities


Office buildings

Factories


Commercial properties


Logistics properties


Hotels


Enlarged opportunities to acquire multi-use complex properties whose components are hotels, office buildings, commercial properties, etc.

Hiroshima Futaba no Sato Project


(Note) As of the date of this documentation, neither Daiwa House Residential nor Daiwa House REIT is in specific negotiations with Daiwa House Group, etc., regarding the above assets in example of new investment targets.

Currently, there are no planned acquisitions. 5

Investment policies of the Merged REIT

Investment targets


Portfolio post merger

Asset type diversity (acquisition price basis) (Note)

Logistics properties (BTS type and multi-tenant type)

Residential properties (compact / family)

Commercial properties (mall / roadside / urban)

Hotels

  • Logistics properties (34 properties) 194,108 mil yen 38.3%

Core Assets

Other assets

Office buildings

20% or less Healthcare facilities, etc.

98.1%

Core assets

80% or more
  • Residential properties (142 properties) 258,339 mil yen

    51.0%

  • Commercial properties (10 properties)

    44,810 mil yen

    8.8%


    Investment areas Portfolio post merger

  • Others

    (3 properties)

    9,630 mil yen

    1.9%

    The three major metropolitan areas

    Area diversity (acquisition price basis) (Note)


    • Greater Tokyo area

70% or more

The three major metropolitan Areas

86.9%

72.4%

  • Greater Nagoya area

    4.6%

  • Greater Osaka area

    9.9%

  • Others

13.1%


The three major metropolitan areas: Greater Tokyo area, Greater Nagoya area and Greater Osaka area Greater Tokyo area: Tokyo, Kanagawa, Saitama and Chiba Prefecture

Greater Nagoya area: Aichi, Gifu and Mie Prefecture

Greater Osaka area: Osaka, Kyoto, Hyogo, Nara and Shiga Prefecture


(Note) Pro Forma figures in consideration of the six anticipated acquisitions announced on April 15, 2016


6

Overview of new anticipated acquisitions


  • The Merged REIT plans to acquire six properties consisting of logistics, residential, commercial facilities and hotel, etc.

(Note 1), from Daiwa House Group



Property name

Naha Shin-Toshin Center Building (Daiwa Roynet Hotel Naha-Omoromachi)


D Project Hibiki Nada


D Project Morioka II


Castalia Ningyocho III


Royal Parks Umejima


Sports Depo and GOLF5 Kokurahigashi IC Store

Total anticipated acquisition price 17,210mil yen


Use

Multi-use complex (Note1)

(office/hotel/commercial)


Logistics


Logistics


Residential


Residential


Commercial

Anticipated acquisition price


7,600 mil yen


2,080 mil yen


1,280 mil yen


2,000 mil yen


2,020 mil yen


2,230 mil yen

Total appraisal value

17,580mil yen

Appraisal value

7,600 mil yen

2,100 mil yen

1,300 mil yen

2,170 mil yen

2,150 mil yen

2,260 mil yen

Acquisition date (planned)

Sep. 2016

Sep. 2016

Sep. 2016

Sep. 2016

Sep. 2016

Sep. 2016

Appraisal NOI yield (Note2)

5.9%

6.3%

6.3%

4.9%

6.9%

6.8%

Average Appraisal

NOI yield

6.1%


Location

Naha City, Okinawa

Kitakyushu City, Fukuoka

Takizawa City, Iwate

Chuo Ward, Tokyo

Adachi Ward, Tokyo

Kitakyushu City, Fukuoka


Access

5-min. walk from Okinawa urban monorail "Omoromachi" Sta.

8.5km from Shinwakato Expressway

"Kitahama" IC

6km from Tohoku Expressway

"Morioka" IC

3-min. walk from Tokyo Metro "Ningyocho" Sta.

5-min. walk from Tobu Skytree line "Umejima" Sta.

0.5km from Kyusyu Expressway "Kokurahigashi" IC

Construction date

Jul. 2011

Sep. 2008

Oct. 2015

Oct. 2014

Sep. 2010

Oct. 2007

Occupancy rate

100.0%

Occupancy rate (Note3)

100.0%

100.0%

100.0%

99.0%

100.0%

100.0%

Land area

7,880.42(Note4)

39,659.00

14,355.00

529.80

4,217.10

6,789.55

Gross floor area

34,180.43(Note4)

19,967.90

4,289.89

3,754.28

7,913.65

6,506.99

(Note 1) The property includes office and commercial facilities as well as hotel rooms; its use is categorized as "other." The merged REIT will acquire 50% quasi-co-ownership interest of the trust beneficial interest in real estate. (Note 2) "Net operating income" (direct capitalization method) in the real estate appraisal reports divided by "anticipated acquisition price".

(Note 3) Occupancy rate as of Feb. 29, 2016. (Note 4) The figure of the entire property is shown.


Naha Shin-Toshin Center Building

Sports Depo and GOLF5

(Daiwa Roynet Hotel Naha-Omoromachi) > <Castalia Ningyocho III> <Royal Parks UmejimaKokurahigashi IC Store


D Project Hibiki Nada> <D Project Morioka II


7

Location

  • Naha Shin-Toshin area is a multi-purpose complex city suited for government, office, commercial and residential functions.

  • Located in 5-minutes walking distance from Omoromachi station on Yui Rail (a monorail running through

    Okinawa-city), the property provides good accessibility to Kokusai Street in central Naha-city.


    Property characteristics

  • The property is a multi-use complex mainly for office and hotel uses.

  • The property is highly appealing to IT related companies including for call-center use which typically need large floor space, high level equipment and employment of workers (especially female workers) and also appealing to companies with frequent use of cars for business.

  • Hotel floors offer large-sized rooms. Located somewhat away from the downtown, the hotel floors provide a calm environment, convenience and comfort. With high-grade appearance, the property is particularly popular in Naha City.

Naha Shin-Toshin Center Building (Daiwa Roynet Hotel Naha-Omoromachi)




Private elevator for each of hotel and office floors


  • Hotel floors

  • Office floors

  • Commercial floor

  • Private elevator for hotel floors

  • Private elevator for office floors


9F-18F

Hotel floors (243 rooms)


  • Number of call center companies newly Trendin the number of tourists to Okinawa

located in Okinawa(calendar year basis) (Companies) 79

80 76

(calendar year basis)


(10 K visitors)

800


776


2F-8F

Office floors


1F

Commercial floor

80


60 49

40

40 2933

20


5657

6569


700


600


500


515


550564


587605


565


586


542


584


641


706

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015


Source: "Trend of newly located corporations by industry" (Okinawa)


Source: "Overview of tourists to Okinawa statistics"


8

Overview of the Merged REIT



Daiwa House REIT (Note 1)

Anticipated acquisitions (Note 1)

(as of Apr. 15, 2016)


Daiwa House Residential (Note 1)

Portfolio

Asset size

(acquisition price basis)


256,349 mil yen


Number of properties

142 properties


Total assets

258,590 mil yen


NOI yield

5.5%


Average age

10.3 years


Occupancy rate

96.0%

Finance


LTV


54.8%


Interest-bearing debt


141,663 mil yen


Rating

AA- (JCR) A+ (R&I)

Unitholder value

NAV per unit

191,454 yen

Net assets per unit

148,707 yen

Forecast

period ending Aug. 2016


Forecast DPU (Note 8)


4,510 yen


Forecast DPU after the merger-ratio adjustment (Note 9)


4,510 yen

The Merged REIT (Note2)

(outlook as of Sep. 28, 2016)


206,363 mil yen 17,210 mil yen


506,887 mil yen (Note3)



41 properties 6 properties 189 properties



Logistics Properties


194,108 mil yen

34 properties


Residential Properties


258,339 mil yen

142 properties


Commercial

Properties


44,810 mil yen

10 properties


Others


9,630 mil yen

3 properties


506,887 mil yen

189 properties

Asset size (Note 3)

222,081 mil yen - 569,230 mil yen (Note4)


5.9% 6.1% (Note 5) 5.4% (Note 6)


6.8 years 4.9 years 8.5 years


99.95% 100.0% 98.7%


45.9% 44.6%

(48.4%) (Note 7)


102,000 mil yen 253,663 mil yen


AA- (JCR) -


394,784 yen 213,643 yen


310,353 yen 195,610 yen


Forecast

period ending Aug. 2016

Forecast

period ending Aug. 2017



4,700 yen


Increase Rate

(Note 10)


for Daiwa House for Daiwa House Residential REIT

+4.2% +14.9%

9,000 yen

Adjusted by merger ratio (1 : 2.2)

4,090 yen



* Notes on this page are listed at the bottom of the next page.

9

Forecasts of the Merged REIT


23rd period (ending Aug. 2017) Forecasts

Variation vs 22nd period

(ending Feb. 2017)

22nd period (ending Feb. 2017) Forecasts

17,386 mil yen 17,501 mil yen + 114 mil yen


Operating revenues

Operating income

Amortization of Goodwill

Operating income

Ordinary income

Net income

Reversal of retained earnings

Total distribution

11,184 mil yen 10,328 mil yen - 855 mil yen


1,113 mil yen 1,113 mil yen 0 mil yen


6,202 mil yen 7,172 mil yen + 970 mil yen


5,018 mil yen 6,027 mil yen + 1,009 mil yen


5,017 mil yen

6,027 mil yen

+ 1,009 mil yen

2,046 mil yen 1,113 mil yen - 933 mil yen


7,064 mil yen

7,140 mil yen

+ 75 mil yen


Net income per unit (A)

Reversal of retained earnings per unit (B)

DPU (A)+(B)

3,302 yen 3,967 yen + 665 yen


1,347 yen 732 yen - 615 yen

4,650 yen

4,700 yen

+ 50 yen


Number of properties held

189 properties 189 properties

  • Notes of the previous page

    (Note 1) Financial figures for the period ended Feb. 2016 or those as of Feb. 29, 2016 of Daiwa House Residential and Daiwa House REIT. (The figure for Daiwa House REIT includes anticipated acquisition of D Project Tosu extension in Jun. 2016) (Note 2) Pro forma figures, including borrowing and repayment, in consideration of the six anticipated acquisitions announced on April 15, 2016.

    (Note 3) Based on the purchase method, with Daiwa House Residential being the acquiring entity, Daiwa House REIT's assets are to be obtained at appraisal value. Therefore, the total amount of Daiwa House Residential acquisition price plus Daiwa House REIT's appraisal value in the period ended Feb. 2016 as well as the total amount of the anticipated acquisitions is presented.

    (Note 4) Total assets include goodwill of 44,544 mil yen (forecast).

    (Note 5) NOI yield of the anticipated acquisitions are based on appraisal NOI yields.

    (Note 6) NOI yield is calculated based on actual NOI in the period ending Feb.2016 and appraisal NOI.

    (Note 7) The figure inside the parentheses presents a trial calculation figure: The Merged REIT's "total assets" minus "positive goodwill of 44,544 mil yen (forecast)." (Note 8) Forecast DPU represent the forecast figures of Daiwa House Residential and Daiwa House REIT announced on April 15, 2016.

    (Note 9) Forecast DPU (4,510 yen for Daiwa House Residential and 9,000 yen for Daiwa House REIT) announced on April 15, 2016 adjusted by the merger ratio.

    (Note 10) Figures are calculated as follows: "Forecast DPU in the period ending August 2017 of the Merged REIT" divided by "Forecast DPU after the merger-ratio adjustment in the period ending Aug 2016."

    10


    Intentionally Blank


    RATIONALE OF THE MERGER AND


    12

    POLICY OF THE MERGED REIT

    Existing Two REITs at Glance




    Investment targets



    specialty commercial complexes



    Portfolio (Note1)


    Position (Note1)




    Cash flow




    External growth




    from third parties


    Performance of asset management






    Challenges




    properties with long-term fixed contracts

    • Residential properties and senior housing properties

    • Portfolio of assets mainly in the central wards of Tokyo

    • Competitive high performance logistics properties and

    • Portfolio of assets mainly in the Greater Tokyo Area

    • 142 properties; 256.3 Bn yen

    • 41 properties; 206.3 Bn yen(Note2)

    • Asset size: No. 3 of residential J-REITs

    • Market capitalization: No. 3 of residential J-REITs

    • Asset size: No. 4 of logistics J-REITs(Note2)

    • Market capitalization: No. 4 of logistics J-REITs

    • Steady cash flow based on the effect of its diversified residence portfolio

    • Steady cash flow based on long-term fixed contracts

    • Merged with New City Residence in April 2010

    • Constant acquisition of properties from Daiwa House Group

    • Constant acquisition of properties from third parties

    • Acquisition track record of logistics properties from Daiwa House Group's abundant pipeline

    • Successful track records of acquiring commercial properties

    • Asset management track records for over 10 years since its listing

    • Daiwa House Industry Co., Ltd. became the main sponsor in December 2008, which propelled the subsequent growth

    • Asset management track records for over 8 years since its founding

    • Achieved its target asset size for the first-stage of 200 billion yen within the three-year period since its listing

    • Limited opportunities for internal growth due to slow pace of rent-rates hike

    • Slowdown of external growth and new acquisitions due to severe competition in residential property transaction market

    • LTV remaining at relatively high level

    • Limited opportunities for internal growth given the BTS-type logistics

    • No. 4 of the five logistics REITs in terms of asset size (Notes 1 and2)


    (Note 1) As of Mar. 31, 2016

    (Note 2) Including anticipated acquisition of D Project Tosu extension in Jun. 2016

    Rationale of the merger 1

    Enhanced external growth potential and further internal growth opportunities through the shift to

    a "di vers ifie d REIT"


    Enhance external growth potential through enlarged acquisition opportunities


    • In addition to existing logistics, residential and commercial properties, investment targets will be further expanded to hotels, office buildings, etc. Accordingly, various types of asset acquisitions including multi-use complex properties will be realized and enhance continuous external growth potential



    Maintain stability of revenues


    • The Merged REIT will continue to invest in stable assets (logistics, residential and commercial properties) which are being categorized as the core assets.

    • The Merged REIT will build a diversified portfolio to achieve excellent revenue stability through investment in various asset types with diversified risk and return profile



    Acquire assets with upside potential for rent


    • In addition to revenue stability, the Merged REIT aims to acquire assets with upside potential for rent (multi-tenant type logistics properties, urban-type commercial properties, hotels, office buildings, etc.)



    Maximize unitholder value through enhanced external growth potential and further internal growth opportunities through the shift to a "diversified REIT"

    Rationale of the merger 2

    Improvement of the position in the J-REIT market and more flexible asset management through

    "scal e enhanc ement"



    Improve presence in the capital market

    • The Merged REIT's asset size (acquisition price basis) will be over 500 billion yen, which greatly improves the positioning and presence in the J-REIT market

    • Market capitalization increase will improve the liquidity of the units, which would potentially lead to inclusion in a stock index such as the MSCI Global Standard Indices in the future



    Improve flexibility of portfolio asset management

    and finance strategy


    • Utilization of retained earnings and tax-loss carry-forwards will allow the Merged REIT to implement measures to improve the portfolio value (e.g. asset reshuffle) flexibly and proactively

    • Acquisition of large-scale properties, and deals including M&A can be handled more easily



    Improve portfolio cash flow stability


    • Cash flow stability will be maintained through portfolio diversification including increase in number of properties and tenants, increase in asset size and enhanced geographical distribution




    Maximize unitholder value by improved positioning in the J-REIT market and

    more flexible portfolio management and financial strategy through "scale enhancement"

    Improved stability from further diversified portfolio base


    Asset type diversification (leasable area basis) Note 1 Ratio of top 10 properties (acquisition price basis)Note 2


    Core Assets

    97.8%


    • Logistics properties (BTS type)

      53.9%

    • Residential properties

      32.1%

    • Commercial properties (mall type)

      7.8%

    • Commercial properties (roadside type)

      4.0%

    • Others (office buildings)

      1.7%

    • Others (healthcare facilities)

      0.5%


      Top 10 Properties

      22.0%
      • D Project Urayasu II 5.0%

      • D Project Hachioji 3.0%

      • D Project Nishiyodogawa 2.0%

      • D Project Machida 1.8%

      • Pacific Royal Court Minatomirai

        Urban Tower 1.8%

      • D Project Urayasu I 1.8%

      • D Project Inuyama 1.7%

      • D Project Kuki V 1.6%

      • DREAM TOWN ALi 1.6%

      • D Project Kuki II 1.6%

        • Other


By age of property (acquisition price basis) Note 2 Ratio of top 10 tenants (leased area basis) Note 1

78.0%



Less than 10 years

69.9%


  • Less than 5 years

    18.0%

  • 5 to less than 10 years

    52.0%

  • More than 10 years

    30.1%


    Top 10 Tenants

    45.9%
    • Hitachi Capital Corporation 7.9%

    • Daiwa Living 6.6%

    • Daiwa Information Service 6.3%

    • Mitsubishi Shokuhin 5.8%

    • Nakano Shokai 4.6%

    • Sagawa Global Logistics 3.3

    • Seven & i Holdings 3.2%

    • Hitachi Transport System 3.0%

    • Takihyo 2.8%

    • VANTEC CORPORATION 2.5%

      • Other

54.1%


(Note 1) The percentages shown are based on the size of total leasable area or leased area of Daiwa House Residential and Daiwa House REIT (as of the of Feb. 29, 2016) and those of the six anticipated acquisitions. (Ratios are calculated based on leasable area or leased area of the entire property for Naha Shin-Toshin Center Building (Daiwa Roynet Hotel Naha-Omoromachi).)

(Note 2) The percentages shown are based on the size of total acquisition price of Daiwa House Residential and appraisal value of Daiwa House REIT (as of Feb. 29, 2016) and the six anticipated acquisitions price. (The figure for Daiwa House REIT includes anticipated acquisition of D Project Tosu extension in Jun. 2016)

Rationale of the merger 3

Acceleration of growth leveraging the value chain of "Daiwa House Group's integrated capabilities"


  • Daiwa House Group's integrated capabilities-from planning, development and construction to tenant-leasing, administration and operation-will thoroughly and consistently support the Merged REIT.



Disposition

Acquisition


Redevelop properties

disposed by the REIT


Real estate development

Construction

contract


Selection / acquisition of land

Proposal to land owners regarding idle land


Management /


Feedback

operation of the properties


Merged REIT

Synergy-effect strategy


Selling


Planning/ design


Acquisition of developed properties to enhance unitholder value

Acquisition

Utilize the fund for

investment in new development / acquisition


Disposition


Tenant-leasing


Construction


Skillful selection of land locations and successful construction/operation record Tenants with great attraction for customers in various business types/styles Long-term trust with various firms and nationwide network


Other Businesses 11.5%


No. of Group firms


145

No. of Group employees

34,903

Single-Family Houses 13.2%


Logistics-related business: developed land area (Note 2)


5,002,672

Commercial properties administration: leasable area (Note 4)


4,835,502

Logistics, Business &

Corporate Facilities 20.6%


Daiwa House Group


Rental Housing 27.5%

Residential properties management:

Total number of residences managed (Note 3)

435,515 units

City-type hotels: ownership/operation properties (Note 5)


39 properties

Total no. of rooms: 8,755


Medical and nursing care facilities constructed (Note 6)



4,424 properties

Consolidated sales 2,810.7 Bn. yen (for the fiscal year

Commercial Facilities ended Mar.2015)

15.8%Condominiums

8.2%

Existing Home Business 3.2%

(Source) Annual Report of Daiwa House Industry Co., Ltd. for the fiscal year ended Mar. 2015

(Note 1) Figures are as of Mar. 31, 2015, excluding those of Group firms and Group employees (as of Apr. 1, 2015).

(Note 2) Including ones that are now being planned/developed (Note 3) Total of Daiwa Living, Daiwa Living Management,

and Nihon Jyutaku Ryutsu

(Note 4) Total leasable area of sub-lease buildings of Daiwa Lease,

Daiwa Information Service, and Daiwa Royal (Note 5) Including Royton Sapporo and Osaka Marubiru (Note 6) Number of properties constructed

by Daiwa House Industry Co., Ltd. 17

Further development in line with the growth of Daiwa House Group


  • The Merged REIT will acquire properties developed by Daiwa House Group based on Group's pipeline support, including preferential negotiation rights

Mid-term management plans of Daiwa House Group

Leased real estate of Daiwa House Group

Investment plans for real estate development of

1st plan

2nd plan


Improve

3rd plan


Achieve

4th plan


Accelerate

5th plan


(Bn yen)

Daiwa House Group


(Bn yen)

Expand sales


Sales


Operating Income Net Income


ROE


(Bn yen)

profit structure

new growth


9.5%


growth To beannounced

on May 13, 2016


10% or more


3,180.0

(forecast)


240.0

(forecast)


Liquidated real-estate

418.7

171.8

7.2

Real estates available for sale

Rental Housing

Commercial facilities

52.3

Logistics, Business & Corporate facilities

97.3

Overseas Business

15.0

297.6

256.0

29.5

Profit-earning real estates

Being rented

Rental Housing

Commercial facilities

180.9

Logistics, Business & Corporate facilities

41.6

Total of Real estate being rented

717.1

274.0


338.0


160.3

500.0

(forecast)

430.5

(Actual)


Logistics, Business & Corporate facilities 288.5


Commercial facilities 98.0

1st plan

2nd plan

3rd plan

4th plan

5th plan

FY2005-

FY2008-

FY2011-

FY2013-

FY2016-

2007

2010

2012

2015

2018

(Actual)

(Actual)

(Actual)

(Actual /

(Forecast)

(Source) Financial report overview of Daiwa House

Forecast)

Industry Co., Ltd. for 3Q of period ended

Rental Housing 43.9



1,709.2 1,690.1

4.4%


89.187.6


2,007.9


128.0


154.0

(forecast)


Mar. 2016

(Note) As of Dec. 2015


(Note) As of Dec. 2015

2.0%


13.0


27.2

66.2


(Note )

Investment by Daiwa House Industry in the Merged REIT

  • In order to align with its own profit and the benefit of the Merged REIT's unitholders,

    Daiwa House Industry will continue to hold units of the Merged REIT.


    Daiwa House Industry's ownership of the investment units (%):

    FY2007 FY2010 FY2012 FY2015 FY2018


    (Source) Fourth mid-term business management plan and financial report overview at the 3Q of the period ended Mar. 2016 of Daiwa House Industry Co., Ltd.

    (Note) Projected performance of Daiwa House Group at the 3Q of the period ended Mar. 2016

    169,600 units (11.2%) (Note)

    (Note) Based on the number of units of the investment Corporations held by Daiwa House Industry as of February 29, 2016, in consideration of the merger-ratio adjustment

    Pipeline of Daiwa House Group


    Logistics properties

    D Project Kitahachioji Annex A

    BTS-type

    Hachioji City, Tokyo

    Feb. 2011

    5

    15,352m2

    D Project Kitahachioji Annex B

    BTS-type

    Hachioji City, Tokyo

    Nov. 2011

    4

    18,762m2

    D Project Kitahachioji Annex C

    BTS-type

    Hachioji City, Tokyo

    Jun. 2014

    4

    26,311m2

    D Project Jonanjima

    BTS-type

    Ota Ward, Tokyo

    May 2014

    8

    49,739m2

    D Project Itabashi Shingashi

    BTS-type

    Itabashi Ward, Tokyo

    Dec. 2014

    7

    31,094m2

    D Project Kuki Shoubu Annex B

    BTS-type

    Kuki City, Saitama

    Jan. 2010

    1

    2,941m2

    D Project Kawagoe Annex A

    BTS-type

    Kawagoe City, Saitama

    Jan. 2011

    3

    24,684m2

    D Project Kawagoe

    BTS-type

    Kawagoe City, Saitama

    Jul. 2014

    4

    39,704m2

    D Project Wako Annex A

    BTS-type

    Wako City, Saitama

    Apr. 2015

    6

    57,199m2

    D Project Matsudo Annex A

    BTS-type

    Matsudo City, Chiba

    Apr. 2011

    5

    19,838m2

    D Project Tomisato

    BTS-type

    Tomisato City, Chiba

    Apr. 2015

    6

    36,335m2

    D Project Sendaiizumi A

    BTS-type

    Sendai City, Miyagi

    Apr. 2014

    3

    12,062m2

    D Project Fuji

    BTS-type

    Fuji City, Shizuoka

    Oct. 2013

    2

    24,176m2

    D Project Kakegawa

    BTS-type

    Kakegawa City, Shizuoka

    Aug. 2014

    5

    33,893m2

    D Project Hiroshima Seifu

    BTS-type

    Hiroshima City, Hiroshima

    Dec. 2014

    2

    19,058m2

    DPL Misato

    Multi-tenant -type

    Misato City, Saitama

    Jul. 2013

    5

    49,440m2

    DPL Sagamihara

    Multi-tenant -type

    Sagamihara City, Kanagawa

    Dec. 2013

    5

    82,685m2

    DPL Yokohama Daikoku

    Multi-tenant -type

    Yokohama City, Kanagawa

    Feb. 2014

    6

    121,818m2

    DPL Fukuoka Kasuya

    Multi-tenant -type

    Kasuya Gun, Fukuoka

    Apr. 2014

    7

    87,683m2

    Property name Category Location


    Commercial properties

    Property name Category Location


    Construction date


    Construction date


    No. of floors


    No. of floors


    Gross floor area


    Gross floor area














    FOLEO Shoubu

    Roadside-type

    Kuki City, Saitama

    Apr. 2010

    1

    19,287m2

    FOLEO Hakata

    Mall-type

    Fukuoka City, Fukuoka

    Jan. 2008

    3

    29,023m2


    FOLEO Otsu Ichiriyama


    Mall-type

    Ootsu City, Shiga


    Oct. 2008

    2, and

    1 basement

    66,038m2

    iias Tsukuba

    Mall-type

    Tsukuba City, Ibaraki

    Sep. 2008

    4

    125,249m2


    (Source) Daiwa House Industry Co., Ltd.

    (Note) As of the date of this documentation, neither Daiwa House Residential nor Daiwa House REIT is in specific negotiations with Daiwa House Group, etc., regarding the above assets. Currently, there are no planned acquisitions.

    Pipeline of Daiwa House Group (including properties under development)


    Residential properties


    Property name Category Location


    Construction

    date No. of residential units


    Royal Parks Ogikubo

    Compact/ family

    Suginami Ward, Tokyo


    Mar. 2005


    condominium: 157 units


    Royal Parks Riverside

    Compact/ family

    Adachi Ward, Tokyo


    Dec. 2010


    condominium: 200 units


    Royal Parks ER Sasashima

    Compact/ family/

    Private nursing homes/ Nursery school


    Nagoya City, Aichi


    Mar. 2015

    condominium: 430 units, nursery homes: 66 units, nursery school, day- service, convenience store, shared house


    Nagoya city Naka ward Project

    Compact/ family

    Nagoya City, Aichi


    Jan. 2016


    condominium: 99 units


    Shinjuku ward Yotsuya Project

    Compact/ family

    Shinjuku Ward, Tokyo

    Feb. 2017

    (planned)

    condominium: 91 units,

    store: 1 unit

    Minato ward Akasaka 9 chome Project

    Compact/ family

    Minato Ward, Tokyo

    Feb. 2017

    (planned)

    condominium: 116 units,

    store: 1 unit






    Hotels / Multi-use complexes


    Property name Category Location


    Construction date


    No. of floors


    Gross floor area


    Daiwa Royal Ariake Project

    Hotel/commercial/ Convention

    Koto Ward, Tokyo

    Mar. 2018

    (planned)

    17, and 1 basement

    22,500

    Hiroshima Futaba no Sato Project

    Hotel/office/ commercial

    Hiroshima City, Hiroshima

    Mar. 2019

    (planned)


    23

    47,123


    Office / Healthcare facilities

    Property name Category Location


    Construction date


    Gross floor area / No. of residential units





    Ariake Central Tower


    Office

    Koto Ward, Tokyo


    Jan. 2011

    71,281


    Nerima Takamatsu Project

    Assisted-living pay nursing homes

    Nerima Ward, Tokyo


    Feb. 2015


    100 units


    Utsunomiya Project

    Serviced senior housing

    Utsunomiya City, Tochigi


    Sep. 2015


    77 units


    Shibuya Honmachi Project

    Assisted-living pay nursing homes

    Shibuya Ward, Tokyo


    Oct. 2015


    57 units


    (Source) Daiwa House Industry Co., Ltd.

    (Note) As of the date of this documentation, neither Daiwa House Residential nor Daiwa House REIT is in specific negotiations with Daiwa House Group, etc., regarding the above assets. Currently, there are no planned acquisitions.


    20

    Solid pipeline support from Daiwa House Group


    • The current pipeline support for the existing two REITs will remain (Note 1), and Daiwa House Group will continue to support the Merged REIT

    Partners of support agreements


    Daiwa House Group


    Merged REIT

    Other business partners


    Daiwa House Industry Co., Ltd.


    Logistics Residential Commercial


    Hotels


    Others



    Residential


    Commercial


    Logistics Commercial

    Residential


    Morimoto Co., Ltd.

    Cosmos Initia Co., Ltd.


    Daiwa Lease Co., Ltd. Daiwa Information

    Service Co., Ltd.



    Logistics

    information on properties for sale>


    Commercial

    Hotels

    Logistics Residential Commercial

    Sumitomo Mitsui

    Daiwa Royal Co., Ltd. FujitaCorporation

    Daiwa Logistics Co., Ltd.

    Trust Bank, Limited


    (Note 1) As of Apr. 15, 2016, whether and how to amend agreements with each Daiwa House Group companies other than Daiwa House Industry has not been determined yet. (Note 2) Investment-target assets are shown which are subject to the preferential negotiating rights of the Merged REIT with each of the above companies.

    (Note 3) Daiwa House Industry's "hotels" and "others," represent preferential negotiating rights investment-target assets that will be added, subject to the Merger taking effect. (Note 4) Daiwa Royal's "hotels" will become object of the preferential negotiating rights which will be additional investment target of the Merged REIT after the merger.


    Overview of the sponsor-support agreement with Daiwa House Industry


    Preferential negotiating rights

    Information on properties for sale

    Warehousing

    Re-development support

    Property management advisory


    Leasing support

    Temporary staffing service

    Acquisition and holding of investment units

    Advice on renewal and construction-process-control

    Entrustment of PM tasks

    Financial strategy and financial status


    • Control LTV within a range from 40% to 50% (with respect to total assets including positive goodwill) and maintain stable financial operation

    • Focus on lengthening and diversifying debt maturities, fixing interest rates and reducing debt costs

    Status of Interest-bearing debt (Note1)

    Details of Interest-bearing debt (Note1)


    Total debt

    Total borrowings


    Total of investment corporation bonds

    243,663 mil yen

    232,663 mil yen


    11,000 mil yen

    Long-term debt ratio (Note 2)

    94.3%

    Fixed interest ratio

    90.7%

    Average interest rate

    0.87%

    Average remaining maturity

    3.7 years

    Commitment line

    20,000 mil yen

    Lender

    Balance (mil yen)

    Ratio

    Sumitomo Mitsui Trust Bank

    45,289

    18.6%

    Sumitomo Mitsui Banking Corporation

    41,280

    16.9%

    Mizuho Bank

    39,780

    16.3%

    The Bank of Tokyo-Mitsubishi UFJ

    38,387

    15.8%

    Mitsubishi UFJ Trust and Banking

    13,827

    5.7%

    Aozora Bank

    13,061

    5.4%

    Development Bank of Japan

    11,400

    4.7%

    The Norinchukin Bank

    9,610

    3.9%

    Resona Bank

    7,995

    3.3%

    Lender/ Investment corporation bonds

    Balance (mil yen)

    Ratio

    Mizuho Trust & Banking

    3,808

    1.6%

    Nippon Life Insurance

    2,500

    1.0%

    Shinsei Bank

    1,500

    0.6%

    Mitsui Sumitomo Insurance

    1,000

    0.4%

    Shinkin Central Bank

    1,000

    0.4%

    The Chiba Bank

    965

    0.4%

    The Shizuoka Bank

    760

    0.3%

    The Bank of Fukuoka

    500

    0.2%

    Investment corporation bonds

    11,000

    4.5%

    Total

    243,663

    100.0%



    (mil yen)

    50,000

    借入金

    Diversified maturity ladder (Note1)


    投資法人債

    40,000


    借入金

    投資法人債

    Daiwa House Residential


    Daiwa House REIT

    Borrowings

    Investment corporation bonds

    Borrowings

    Investment corporation bonds

    15,000


    30,000


    20,000


    10,000


    0


    4,000 10,000


    31,800


    3,000


    27,495


    16,000


    11,600


    10,000


    18,910


    1,000


    3,000

    3,500


    3,000


    7,000


    6,858


    7,000

    3,500


    10,000 10,500


    6,000


    5,000 2,000


    3,000


    2,000

    1,000

    3,000


    4,000


    7,000 6,000 1,500

    2016

    8月期

    Aug.

    2016

    2月期

    8月期

    Feb. Aug.

    2017

    2017

    2月期

    8月期

    2月期

    8月期

    2月期

    8月期

    2月期

    8月期

    2月期

    8月期

    2月期

    8月期

    2月期

    8月期

    2月期

    8月期

    2月期

    8月期

    2月期

    8月期

    Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug.

    2018

    2019

    2020

    2021

    2022

    2023

    2024

    2025

    2026

    2027

    2018 2019 2020 2021 2022 2023 2024 2025 2026 2027


    (Note 1) Trial calculation figures based on financial values as of Mar. 31, 2016 are presented.

    (Note 2) Long-term debt includes the long-term debt with repayment date or redemption date due within one year.

    Treatment of positive goodwill and distribution policy


    Treatment of positive goodwill

    Net income

    per unit

    DPU

    10% of the amount equivalent to

    depreciation cost

    Distribution in excess of earnings per unit

    Expected positive

    goodwill after the merger

    Distribution policy of the Merged REIT


    Reversal of retained earnings per unit



    44.5 Bn yen

    Goodwill will be booked as intangible fixed assets on the B/S.

    * In terms of accounting, regularly

    amortized over 20 years using the straight-line method.

    • The goodwill amortization cost will be booked as operating expenses on the P/L statement.


    Outlook as of Apr. 8, 2016


    Effective date of the merger



    The amount equivalent to 10% of depreciation will be distributed

    Utilizing the internal reserves, the portion equivalent to goodwill amortization will be covered and be distributed

    Upon completion of the reversal of retained earnings


    Distribution in excess of earnings as allowance for adjustment of temporary differences

    Completed amortization of positive goodwill


    In the case of sell-off profit from real

    estate, etc., tax-loss carry-forwards will be applied, and the profit can be deemed as internal reserves.

    Treatment of retained earnings


    Distribution level will not be affected by the goodwill amortization cost



    Tax-Loss Carry-

    Forwards

    44.5 Bn yen

    Daiwa House REIT

    Daiwa House Residential

    as of Feb. 29, 2016


    Period ending Aug. 2016

    Merged REIT

    ~ ~

    Period ending Feb. 2017

    Retained earnings

    (reserved for distribution)

    17.8 Bn yen

    This will be used to cover losses, etc.,

    when distribution equivalent to positive goodwill amortization, property disposition loss accrues, or dilution as a result of issuance of units occurs.

    Revenue recognition by unitholder (Note 2) of the Merged REIT



    as of Feb.29, 2016 (Note 1)


    Realize stable distributions

    Taxation

    Accounting

    Utilizing part of the internal reserves


    Recognition as dividend


    Distribution as earnings

    Excess distribution

    as allowance for

    adjustment of temporary differences (Note 3)

    Recognition as dividend

    Depend on the accounting policies of

    the beneficial investors

    Distribution of the Merged REIT


    Excess distribution from reversal of retained earnings


    Return of capital from tax standpoint

    Return of capital (Reduction of book value)

    Reference

    Excess distribution in general


    (Note 1) This presents the amount after a reversal of internal reserves; the amount before a reversal was 18.0 Bn yen. (Note 2) Unitholders who hold as available for sale securities.

    (Note 3) This distribution is for preventing double taxation due to inconsistency between accounting and taxation of goodwill amortization cost.


    23

    Asset management fee structure of the Merged REIT



    • Among the asset management fees of the Merged REIT, the NOI-linked fee will decrease by 0.5% to 4.5% as the applicable rate


    Period

    ended Feb. 2016

    Real estate appraisal value × 0.4%

    Asset management (AM) fee I

    Merger fee


    Appraisal value of properties succeeded at the merger × 0.8%

    Asset management fee structure



    AM fee II

    Income before income taxes × 3.0%


    Acquisition and disposition fees

    Acquisition or disposition price × 0.8% (0.4%) (Note1)


    Period

    ending Aug. 2016

    Change


    Total assets × 0.2%

    NOI × 5.0%

    Total assets × 0.3%

    Net income × 4.0%


    Acquisition and disposition fees

    Acquisition or disposition price

    × 0.8% (0.4%) (Note1)

    Merger fee


    Appraisal value of properties succeeded at the merger × 0.8%

    Acquisition and disposition fees


    Acquisition or disposition price × 0.5% (0.25%) (Note1)


    AM fee I

    AM fee II

    Period

    ending Aug. 2016

    AM fee I

    AM fee II

    Asset management fee structure (post-merger)



    AM fee I

    Total assets× 0.2% (Note 2)

    AM fee II

    NOI × 4.5% (Note 2)


    Acquisition and disposition fees Merger fee


    Acquisition or disposition price × 0.5% (0.25%) (Note 1, 3) Appraisal value of properties

    succeeded at the merger × 0.8%

    Merged REIT

    Period ending Feb. 2017



    (Note 1) Figures in parentheses shows the fee rate applicable for related party transactions (Note 2) The maximum fee rate is 0.4% for AM fee I and 5.0% for AM fee II

    (Note 3) Asset management fee structure will be effective by resolution of Daiwa House Residential unitholders' meeting which is planned to be held on Jun. 17, 2016


    24



    25

    APPENDIX

    Philosophy of the Merged REIT



    "We seek to continuously enhance unitholder value by carrying out investment and asset management in diversified categories of real estate to meet social needs and by securing medium-to-long-term revenue stability and steady asset growth."


    Daiwa House Group, the sponsor, has set its management vision of "Endless Heart" and as "Daiwa House Group-working to co-create value for individuals, communities and peoples' lifestyles," has committed itself to "contributing to society" through business development in diversified categories to meet social needs and through proactive innovation and the development of new categories. Daiwa House Group has realized the "creation of shareholders' value" that generates greater economic value than the capital cost, steadily over the medium-to-long-term. The Merged REIT will follow this Daiwa House Group's philosophy.


    The Merged REIT will shift to a "diversified REIT" that invests in new types of properties, such as hotels, office buildings, in addition to those that the Investment Corporations have dealt in to date. Its policy will be to leverage Daiwa House Group's integrated capabilities to enhance its growth potential, improve the profitability and quality of its portfolio, and achieve sustainable external growth and stable distributions.

    Organization chart of the Merged REIT


    Parent Company of Asset Manager Pipeline Supporting Company


    Unitholders' Meeting

    Daiwa House Industry Co., Ltd.


    Investment Corporation

    Asset Custodian, General Administrator,

    Administrator of Unitholders' Register and

    Special Account Administrator

    Daiwa House REIT

    Investment Corporation



    Pipeline Supporting Companies


    Daiwa Lease Co., Ltd.

    Fujita Co., Ltd.

    Daiwa Logistics Co., Ltd.

    Daiwa information Service Co., Ltd. Daiwa Royal Co., Ltd.

    Cosmos Initia Co., Ltd. Morimoto Co., Ltd.


    Provider of Brokerage Information (on properties, etc.)


    Sumitomo Mitsui Trust Bank, Limited


    Board of Directors

    Executive Director : Jiro Kawanishi Supervisory Director : Tetsuya Iwasaki Supervisory Director : Hiroshi Ishikawa


    Independent Auditor


    Ernst & Young ShinNihon LLC


    Sumitomo Mitsui Trust Bank, Limited


    Administrator of Investment Corporation Bonds


    Sumitomo Mitsui Trust Bank, Limited The Bank of Tokyo-Mitsubishi UFJ, Ltd.



    Asset Manager

    Asset management consignment agreement

    Asset custodian consignment agreement General administration consignment agreement

    Unitholder registration operator / Special account management agreement

    Fiscal agent agreement

    Basic agreement on new pipeline support

    Basic agreement on pipeline support Pipeline supporting agreements

    Basic agreement on provision of brokerage information on properties, etc.

    Daiwa House Asset Management Co., Ltd.

    Property portfolio of the Merged REIT after Anticipated Acquisitions



    Type


    Property Name


    Location

    Anticipated

    Acquisition Price

    (million yen) (Note 1)

    Anticipated

    Investment Ratio

    (Note 2)

    Leasable Area

    Occupancy Rate

    Logistics

    D Project Machida

    Machida City, Tokyo

    9,200

    1.8%

    50,490.39

    100.0%

    D Project Hachioji

    Hachioji City, Tokyo

    15,400

    3.0%

    62,394.17

    100.0%

    D Project Aikawa-Machi

    Aiko District, Kanagawa

    3,320

    0.7%

    14,240.84

    100.0%

    D Project Shin-Misato

    Misato City, Saitama

    5,720

    1.1%

    11,289.91

    100.0%

    D Project Urayasu I

    Urayasu City, Chiba

    9,080

    1.8%

    36,515.81

    100.0%

    D Project Urayasu II

    Urayasu City, Chiba

    25,400

    5.0%

    72,320.01

    100.0%

    D Project Akanehama

    Narashino City, Chiba

    2,890

    0.6%

    11,663.39

    100.0%

    D Project Noda

    Noda City, Chiba

    6,200

    1.2%

    29,232.53

    100.0%

    D Project Inuyama

    Inuyama City, Aichi

    8,520

    1.7%

    43,723.70

    100.0%

    D Project Gifu

    Anpachi District, Gifu

    1,100

    0.2%

    7,669.91

    100.0%

    D Project Neyagawa

    Neyagawa City, Osaka

    5,830

    1.2%

    11,151.51

    100.0%

    D Project Sapporo Minami

    Kitahiroshima City, Hokkaido

    818

    0.2%

    6,749.10

    100.0%

    D Project Morioka

    Takizawa City, Iwate

    1,200

    0.2%

    9,558.32

    100.0%

    D Project Sendai Minami

    Iwanuma City, Miyagi

    1,520

    0.3%

    11,052.27

    100.0%

    D Project Tsuchiura

    Tsuchiura City, Ibaraki

    3,390

    0.7%

    17,448.86

    100.0%

    D Project Gotenba

    Gotenba City, Shizuoka

    1,140

    0.2%

    6,737.53

    100.0%

    D Project Nishi-Hiroshima

    Hiroshima City, Hiroshima

    1,210

    0.2%

    5,093.51

    100.0%

    D Project Fukuoka Umi

    Kasuya District, Fukuoka

    4,150

    0.8%

    24,729.56

    100.0%

    D Project Tosu

    Tosu City, Saga

    5,730

    1.1%

    8,826.00

    100.0%

    D Project Kuki I

    Kuki City, Saitama

    3,910

    0.8%

    22,708.72

    100.0%

    D Project Kuki II

    Kuki City, Saitama

    8,100

    1.6%

    50,490.00

    100.0%

    D Project Kawagoe I

    Kawagoe City, Saitama

    3,480

    0.7%

    16,150.88

    100.0%

    D Project Kawagoe II

    Kawagoe City, Saitama

    4,730

    0.9%

    19,872.00

    100.0%

    DPL Inuyama

    Inuyama City, Aichi

    3,850

    0.8%

    21,628.50

    100.0%

    D Project Fukuoka Hakozaki

    Fukuoka City, Fukuoka

    4,250

    0.8%

    34,710.80

    100.0%

    D Project Kuki III

    Kuki City, Saitama

    7,640

    1.5%

    26,937.41

    100.0%

    D Project Kuki IV

    Kuki City, Saitama

    5,490

    1.1%

    26,460.00

    100.0%

    D Project Kuki V

    Kuki City, Saitama

    8,280

    1.6%

    47,320.89

    100.0%

    D Project Kuki VI

    Kuki City, Saitama

    5,130

    1.0%

    29,244.66

    100.0%

    D Project Yashio

    Yashio City, Saitama

    6,400

    1.3%

    21,965.04

    100.0%

    D Project Nishiyodogawa

    Osaka City, Osaka

    10,300

    2.0%

    39,584.80

    100.0%

    D Project Matsudo

    Matsudo City, Chiba

    7,370

    1.5%

    26,776.67

    100.0%

    Residential

    Qiz Ebisu

    Shibuya Ward, Tokyo

    7,650

    1.5%

    5,230.39

    96.1%

    Castalia Azabujuban Shichimenzaka

    Minato Ward, Tokyo

    4,500

    0.9%

    3,492.93

    96.9%

    Castalia Shibakoen

    Minato Ward, Tokyo

    2,630

    0.5%

    2,707.51

    96.4%

    Castalia Ginza

    Chuo Ward, Tokyo

    2,520

    0.5%

    2,226.42

    93.3%

    Castalia Hiroo

    Minato Ward, Tokyo

    2,220

    0.4%

    1,621.59

    97.5%

    Castalia Nihonbashi

    Chuo Ward, Tokyo

    1,200

    0.2%

    1,458.73

    98.3%

    Castalia Hacchobori

    Chuo Ward, Tokyo

    2,300

    0.5%

    2,969.57

    96.8%

    Castalia Azabujuban

    Minato Ward, Tokyo

    2,910

    0.6%

    2,400.00

    96.4%

    Castalia Azabujuban II

    Minato Ward, Tokyo

    2,690

    0.5%

    2,094.58

    91.4%

    Castalia Shinjuku Natsumezaka

    Shinjuku Ward, Tokyo

    1,865

    0.4%

    1,917.62

    90.3%

    Castalia Ginza II

    Chuo Ward, Tokyo

    1,800

    0.4%

    1,817.56

    96.0%

    Castalia Shibuya Sakuragaoka

    Shibuya Ward, Tokyo

    1,400

    0.3%

    1,123.80

    100.0%

    Castalia Nishi Azabu Kasumicho

    Minato Ward, Tokyo

    2,143

    0.4%

    2,779.77

    91.7%

    Castalia Ochanomizu

    Chiyoda Ward, Tokyo

    1,770

    0.3%

    2,559.21

    100.0%

    Castalia Sangubashi

    Shibuya Ward, Tokyo

    1,393

    0.3%

    1,898.47

    100.0%

    Castalia Suitengu

    Chuo Ward, Tokyo

    1,279

    0.3%

    1,940.94

    95.6%

    Castalia Suitengu II

    Chuo Ward, Tokyo

    1,138

    0.2%

    1,858.34

    96.6%

    Castalia Shintomicho

    Chuo Ward, Tokyo

    932

    0.2%

    1,444.52

    100.0%

    Castalia Shintomicho II

    Chuo Ward, Tokyo

    825

    0.2%

    1,244.54

    96.5%

    Castalia Harajuku

    Shibuya Ward, Tokyo

    887

    0.2%

    1,225.26

    100.0%

    Castalia Yoyogi Uehara

    Shibuya Ward, Tokyo

    608

    0.1%

    811.95

    92.3%

    Castalia Sendagaya

    Shibuya Ward, Tokyo

    555

    0.1%

    803.03

    88.2%


    Type


    Property Name


    Location

    Anticipated

    Acquisition Price

    (million yen) (Note 1)

    Anticipated

    Investment Ratio

    (Note 2)

    Leasable Area

    Occupancy Rate

    Residential

    Castalia Shinjuku 7 chome

    Shinjuku Ward, Tokyo

    464

    0.1%

    957.60

    100.0%

    Castalia Ningyocho

    Chuo Ward, Tokyo

    947

    0.2%

    1,747.90

    100.0%

    Castalia Ningyocho II

    Chuo Ward, Tokyo

    1,070

    0.2%

    1,826.80

    95.8%

    Castalia Shin-Ochanomizu

    Chiyoda Ward, Tokyo

    914

    0.2%

    1,308.38

    100.0%

    Castalia Higashi Nihonbashi II

    Chuo Ward, Tokyo

    1,370

    0.3%

    2,117.46

    100.0%

    Castalia Jinbocho

    Chiyoda Ward, Tokyo

    1,160

    0.2%

    1,628.80

    100.0%

    Castalia Shintomicho III

    Chuo Ward, Tokyo

    675

    0.1%

    972.51

    95.3%

    Castalia Shinjuku Gyoen

    Shinjuku Ward, Tokyo

    2,720

    0.5%

    3,594.16

    100.0%

    Castalia Takanawadai

    Minato Ward, Tokyo

    860

    0.2%

    1,147.44

    94.6%

    Castalia Higashi Nihonbashi III

    Chuo Ward, Tokyo

    666

    0.1%

    1,105.20

    100.0%

    Castalia Shinjuku Gyoen II

    Shinjuku Ward, Tokyo

    486

    0.1%

    668.79

    96.3%

    Castalia Shintomicho IV

    Chuo Ward, Tokyo

    400

    0.1%

    681.00

    95.0%

    Castalia Takanawadai II

    Minato Ward, Tokyo

    1,190

    0.2%

    1,567.84

    95.1%

    Castalia Minami Azabu

    Minato Ward, Tokyo

    642

    0.1%

    882.67

    94.2%

    Castalia Ginza III

    Chuo Ward, Tokyo

    2,880

    0.6%

    3,494.42

    95.9%

    Castalia Kayabacho

    Chuo Ward, Tokyo

    2,707

    0.5%

    4,602.95

    99.0%

    Castalia Takanawa

    Minato Ward, Tokyo

    7,430

    1.5%

    10,408.26

    96.4%

    Castalia Higashi Nihonbashi

    Chuo Ward, Tokyo

    3,520

    0.7%

    6,442.28

    98.3%

    Castalia Shinjuku

    Shinjuku Ward, Tokyo

    2,950

    0.6%

    3,150.80

    100.0%

    Castalia Ichigaya

    Shinjuku Ward, Tokyo

    940

    0.2%

    1,546.34

    97.4%

    Shibaura Island Bloom Tower

    Minato Ward, Tokyo

    7,580

    1.5%

    16,849.50

    98.3%

    Castalia Hatsudai

    Shibuya Ward, Tokyo

    2,030

    0.4%

    3,077.05

    95.7%

    Castalia Hatsudai II

    Shibuya Ward, Tokyo

    1,900

    0.4%

    2,339.42

    100.0%

    Castalia Ebisu

    Shibuya Ward, Tokyo

    1,420

    0.3%

    1,659.71

    100.0%

    Castalia Meguro Kamurozaka

    Shinagawa Ward, Tokyo

    4,500

    0.9%

    4,967.97

    98.5%

    Castalia Toritsudaigaku

    Meguro Ward, Tokyo

    648

    0.1%

    863.70

    93.8%

    Castalia Yukigaya

    Ota Ward, Tokyo

    1,110

    0.2%

    1,542.30

    98.6%

    Castalia Yutenji

    Meguro Ward, Tokyo

    1,450

    0.3%

    1,380.35

    97.7%

    Castalia Otsuka

    Toshima Ward, Tokyo

    1,480

    0.3%

    1,871.70

    93.2%

    Castalia Kikukawa

    Sumida Ward, Tokyo

    817

    0.2%

    1,168.18

    98.0%

    Castalia Meguro

    Meguro Ward, Tokyo

    844

    0.2%

    1,414.73

    100.0%

    Castalia Otsuka II

    Toshima Ward, Tokyo

    1,040

    0.2%

    1,784.50

    100.0%

    Castalia Jiyugaoka

    Meguro Ward, Tokyo

    1,200

    0.2%

    1,472.47

    95.6%

    Castalia Mejiro

    Toshima Ward, Tokyo

    988

    0.2%

    1,658.90

    96.7%

    Castalia Ikebukuro

    Toshima Ward, Tokyo

    2,570

    0.5%

    3,644.35

    96.9%

    Castalia Kaname-cho

    Toshima Ward, Tokyo

    1,140

    0.2%

    1,624.06

    95.9%

    Castalia Tower Shinagawa Seaside

    Shinagawa Ward, Tokyo

    7,380

    1.5%

    12,732.35

    98.1%

    Castalia Yakumo

    Meguro Ward, Tokyo

    857

    0.2%

    1,276.91

    100.0%

    Castalia Togoshiekimae

    Shinagawa Ward, Tokyo

    1,560

    0.3%

    2,014.12

    100.0%

    Castalia Honjo Azumabashi

    Sumida Ward, Tokyo

    996

    0.2%

    2,255.88

    97.0%

    Castalia Kitazawa

    Setagaya Ward, Tokyo

    742

    0.1%

    1,220.16

    93.0%

    Castalia Monzennakacho

    Koto Ward, Tokyo

    503

    0.1%

    887.94

    100.0%

    Castalia Kamiikedai

    Ota Ward, Tokyo

    198

    0.0%

    414.45

    100.0%

    Castalia Morishita

    Koto Ward, Tokyo

    832

    0.2%

    1,383.90

    93.8%

    Castalia Wakabayashi koen

    Setagaya Ward, Tokyo

    776

    0.2%

    1,425.43

    94.7%

    Castalia Asakusabashi

    Taito Ward, Tokyo

    792

    0.2%

    1,537.84

    89.2%

    Castalia Iriya

    Taito Ward, Tokyo

    546

    0.1%

    1,415.15

    90.9%

    Castalia Kita Ueno

    Taito Ward, Tokyo

    2,641

    0.5%

    4,197.66

    91.7%

    Castalia Morishita II

    Koto Ward, Tokyo

    686

    0.1%

    1,275.60

    97.6%

    Castalia Minowa

    Taito Ward, Tokyo

    1,430

    0.3%

    2,406.41

    93.6%

    Castalia Oyamadai

    Setagaya Ward, Tokyo

    533

    0.1%

    857.32

    95.0%

    Castalia Nakano

    Nakano Ward, Tokyo

    1,060

    0.2%

    1,613.86

    97.2%

    Castalia Yoga

    Setagaya Ward, Tokyo

    923

    0.2%

    1,472.38

    100.0%

    Castalia Sumiyoshi

    Koto Ward, Tokyo

    948

    0.2%

    1,362.60

    100.0%


    Type


    Property Name


    Location

    Anticipated

    Acquisition Price

    (million yen) (Note 1)

    Anticipated

    Investment Ratio

    (Note 2)

    Leasable Area

    Occupancy Rate

    Residential

    Castalia Monzennakacho II

    Koto Ward, Tokyo

    2,160

    0.4%

    3,038.98

    100.0%

    Castalia Oshiage

    Sumida Ward, Tokyo

    1,100

    0.2%

    1,785.24

    100.0%

    Castalia Kuramae

    Taito Ward, Tokyo

    1,260

    0.2%

    1,994.93

    100.0%

    Castalia Nakanobu

    Shinagawa Ward, Tokyo

    1,790

    0.4%

    2,421.82

    98.8%

    Royal Parks Toyosu

    Koto Ward, Tokyo

    7,360

    1.5%

    18,112.03

    100.0%

    Castalia Togoshi

    Shinagawa Ward, Tokyo

    1,770

    0.3%

    2,629.59

    94.9%

    Castalia Ooimachi

    Shinagawa Ward, Tokyo

    1,181

    0.2%

    1,413.75

    100.0%

    Castalia Omori

    Ota Ward, Tokyo

    1,500

    0.3%

    2,046.36

    91.3%

    Castalia Mishuku

    Setagaya Ward, Toyko

    1,900

    0.4%

    2,640.86

    98.0%

    Castalia Arakawa

    Arakawa Ward, Tokyo

    1,660

    0.3%

    3,797.92

    94.5%

    Castalia Omori II

    Ota Ward, Tokyo

    2,370

    0.5%

    2,818.70

    97.1%

    Castalia Nakameguro

    Meguro Ward, Tokyo

    3,800

    0.7%

    3,166.71

    95.5%

    Castalia Meguro Chojyamaru

    Shinagawa Ward, Tokyo

    2,030

    0.4%

    2,123.77

    92.9%

    Castalia Meguro Takaban

    Meguro Ward, Tokyo

    1,750

    0.3%

    1,961.52

    92.9%

    Castalia Omori III

    Shinagawa Ward, Tokyo

    1,520

    0.3%

    2,004.80

    95.4%

    Morino Tonari

    Shinagawa Ward, Tokyo

    1,020

    0.2%

    1,668.24

    93.9%

    Castalia Meguro Tairamachi

    Meguro Ward, Tokyo

    1,165

    0.2%

    1,278.52

    96.7%

    Royal Parks SEASIR

    Adachi Ward, Tokyo

    4,350

    0.9%

    17,269.74

    100.0%

    Castalia Honkomagome

    Bunkyo Ward, Tokyo

    1,520

    0.3%

    2,224.41

    91.4%

    Cosmo Heim Musashikosugi

    Kawasaki City, Kanagawa

    1,674

    0.3%

    4,208.83

    100.0%

    Castalia Tsurumi

    Yokohama City, Kanagawa

    666

    0.1%

    1,452.09

    96.9%

    Castalia Funabashi

    Funabashi City, Chiba

    704

    0.1%

    1,552.01

    100.0%

    Castalia Nishi Funabashi

    Funabashi City, Chiba

    783

    0.2%

    1,597.32

    100.0%

    Castalia Maihama

    Urayasu City, Chiba

    670

    0.1%

    1,287.72

    91.8%

    Castalia Ichikawamyoden

    Ichikawa City, Chiba

    671

    0.1%

    1,218.00

    100.0%

    Castalia Urayasu

    Ichikawa City, Chiba

    592

    0.1%

    1,074.53

    100.0%

    Castalia Minamigyotoku

    Ichikawa City, Chiba

    543

    0.1%

    1,031.81

    93.9%

    Castalia Minamigyotoku II

    Ichikawa City, Chiba

    385

    0.1%

    724.63

    100.0%

    Castalia Nogeyama

    Yokohama City, Kanagawa

    325

    0.1%

    744.90

    100.0%

    Castalia Ichikawa

    Ichikawa City, Chiba

    461

    0.1%

    876.89

    100.0%

    Royal Parks Hanakoganei

    Kodaira City, Tokyo

    5,300

    1.0%

    18,153.57

    100.0%

    Castalia Musashikosugi

    Kawasaki City, Kanagawa

    1,680

    0.3%

    2,179.80

    98.7%

    Royal Parks Wakabadai

    Inagi City, Tokyo

    4,360

    0.9%

    21,367.93

    100.0%

    Pacific Royal Court Minatomirai

    Urban Tower

    Yokohama City, Kanagawa

    9,100

    1.8%

    26,294.49

    100.0%

    L-Place Shinkoyasu

    Yokohama City, Kanagawa

    1,720

    0.3%

    3,009.74

    100.0%

    Royal Parks Musasikosugi

    Kawasaki City, Kanagawa

    1,060

    0.2%

    3,808.97

    100.0%

    Castalia Shinsakae

    Nagoya City, Aichi

    1,920

    0.4%

    3,548.48

    95.0%

    Aprile Tarumi

    Kobe City, Hyogo

    1,340

    0.3%

    6,545.25

    100.0%

    Crest Kusatsu

    Kusatsu City, Shiga

    3,004

    0.6%

    13,452.80

    49.2%

    Castalia Sakaisuji Honmachi

    Osaka City, Osaka

    1,490

    0.3%

    3,471.39

    95.8%

    Castalia Shin-Umeda

    Osaka City, Osaka

    1,376

    0.3%

    3,279.90

    97.7%

    Castalia Abeno

    Osaka City, Osaka

    4,368

    0.9%

    10,920.75

    95.8%

    Castalia Sakae

    Nagoya City, Aichi

    1,010

    0.2%

    2,836.00

    96.0%

    Castalia Nipponbashi Kouzu

    Osaka City, Osaka

    3,570

    0.7%

    9,334.47

    98.3%

    Castalia Maruyama Urasando

    Sapporo City, Hokkaido

    411

    0.1%

    1,522.89

    100.0%

    Castalia Maruyama Omotesando

    Sapporo City, Hokkaido

    1,740

    0.3%

    6,100.31

    93.1%

    Castalia Higashi Hie

    Fukuoka City, Fukuoka

    960

    0.2%

    3,061.60

    95.6%

    Castalia Tower Nagahoribashi

    Osaka City, Osaka

    3,400

    0.7%

    8,747.40

    99.4%

    Castalia Sannomiya

    Kobe City, Hyogo

    1,230

    0.2%

    3,071.60

    98.3%

    Castalia Kotodaikoen

    Sendai City, Miyagi

    481

    0.1%

    1,684.10

    100.0%

    Castalia Ichibancho

    Sendai City, Miyagi

    783

    0.2%

    2,800.32

    100.0%

    Castalia Omachi

    Sendai City, Miyagi

    656

    0.1%

    2,149.08

    98.6%

    Castalia Uemachidai

    Osaka City, Osaka

    2,190

    0.4%

    5,415.39

    98.4%

    Property portfolio of the Merged REIT after Anticipated Acquisitions



    Type


    Property Name


    Location

    Anticipated

    Acquisition Price

    (million yen) (Note 1)

    Anticipated

    Investment Ratio

    (Note 2)

    Leasable Area

    Occupancy Rate

    Residential

    Castalia Tower Higobashi

    Osaka City, Osaka

    2,670

    0.5%

    6,230.20

    96.4%

    Big Tower Minami Sanjo

    Sapporo City, Hokkaido

    1,740

    0.3%

    8,661.19

    98.5%

    Castalia Fushimi

    Nagoya City, Aichi

    2,260

    0.4%

    7,022.69

    95.7%

    Castalia Meieki Minami

    Nagoya City, Aichi

    720

    0.1%

    1,822.10

    94.2%

    Castalia Yakuin

    Fukuoka City, Fukuoka

    930

    0.2%

    2,784.83

    97.0%

    Castalia Mibu

    Koyto City, Kyoto

    1,193

    0.2%

    2,828.39

    95.0%

    Castalia Tsutsujigaoka

    Sendai City, Miyagi

    1,208

    0.2%

    4,471.11

    100.0%

    Castalia Ohori Bay Tower

    Fukuoka City, Fukuoka

    2,910

    0.6%

    11,089.75

    73.5%

    Royal Parks Namba

    Osaka City, Osaka

    2,830

    0.6%

    10,354.15

    100.0%

    Castalia Shigahondori

    Nagoya City, Aichi

    1,730

    0.3%

    5,086.69

    98.3%

    Castalia Kyoto Nishioji

    Kyoto City, Kyoto

    973

    0.2%

    2,035.37

    91.5%

    Commercial

    ACROSSMALL Shinkamagaya

    Kamagaya City, Chiba

    7,640

    1.5%

    41,742.84

    100.0%

    FOLEO Hirakata

    Hirakata City, Osaka

    4,580

    0.9%

    16,380.78

    100.0%

    QiZ GATE URAWA

    Saitama City, Saitama

    4,740

    0.9%

    9,705.31

    98.1%

    UNICUS Takasaki

    Takasaki City, Gunma

    2,950

    0.6%

    9,277.08

    100.0%

    ACROSSPLAZA Miyoshi (land)

    Iruma District, Saitama

    3,710

    0.7%

    24,018.00

    100.0%

    DREAM TOWN ALi

    Aomori City, Aomori

    8,100

    1.6%

    22,196.81

    98.7%

    LIFE Sagamihara Wakamatsu

    Sagamihara City, Kanagawa

    1,640

    0.3%

    2,973.44

    100.0%

    FOLEO Sendai Miyanomori

    Sendai City, Miyagi

    6,840

    1.3%

    19,845.72

    100.0%

    ACROSSPLAZA Inazawa (land)

    Inazawa City, Aichi

    2,380

    0.5%

    31,981.70

    100.0%

    Other

    Urban Living Inage

    Chiba City, Chiba

    930

    0.2%

    4,177.52

    100.0%

    Aburatsubo Marina HILLS

    Miura City, Kanagawa

    1,100

    0.2%

    3,901.14

    100.0%

    Total

    489,677

    96.6%

    1,508,794.53

    98.6%

    • Anticipated Acquisitions



      Type


      Property Name


      Location

      Anticipated

      Acquisition Price

      (million yen) (Note 1)

      Anticipated

      Investment Ratio

      (Note 2)

      Leasable Area

      Occupancy Rate


      Logistics

      D Project Hibiki Nada

      Kitakyushu City,Fukuoka

      2,080

      0.4%

      23,933.75

      100.0%

      D Project Morioka II

      Takizawa City, Iwate

      1,280

      0.3%

      4,481.00

      100.0%


      Residential

      Castalia Ningyocho III

      Chuo Ward, Tokyo

      2,000

      0.4%

      2,897.06

      99.0%

      Royal Parks Umejima

      Adachi Ward, Tokyo

      2,020

      0.4%

      6,828.78

      100.0%


      Commercial

      Sports Depo and GOLF5

      Kokurahigashi IC Store

      Kitakyushu City, Fukuoka

      2,230

      0.4%

      8,899.89

      100.0%

      Other

      Naha Shin-Toshin Center Building

      (Daiwa Roynet Hotel Naha- Omoromachi)


      Naha City, Okinawa


      7,600


      1.5%


      (Note3)

      26,959.99


      100.0%

      Total of Anticipated Acquisitions

      17,210

      3.4%

      74,000.47

      100.0%

    • Portfolio after the Anticipated Acquisitions (As of September 28, 2016)

Type

Number of Properties

Anticipated

Acquisition Price

(million yen) (Note 1)

Anticipated

Investment Ratio

(Note 2)

Leasable Area

Occupancy Rate

Logistics

34

194,108

38.3%

853,152.44

100.0%

Residential

142

258,339

51.0%

507,582.34

96.0%

Commercial

10

44,810

8.8%

187,021.57

99.7%

Other

3

9,630

1.9%

35,038.65

100.0%

Total of Portfolio after the Anticipated Acquisitions

189

506,887

100.0%

1,582,795.00

98.7%

(Note 1) Anticipated Acquisition Price is based on acquisition price for Daiwa House Residential's assets and appraisal value as of February 29, 2016 for Daiwa House REIT's assets. The figures are the anticipated acquisition prices for the anticipated acquisitions. Digits below JPY million have been truncated.

(Note 2) Anticipated Investment Ratio indicates the ratio of the anticipated acquisition price of each asset and has been rounded to the nearest tenth.

(Note 3) The figure of the entire property is shown regarding the leasable area of Naha Shin-Toshin Center Building

(Daiwa Roynet Hotel Naha-Omoromachi)

29

Overview of the existing REITs



Name

Daiwa House Residential Investment Corporation

Daiwa House REIT Investment Corporation

Representative (Executive Director)

Jiro Kawanishi

Masazumi Kakei

Supervisory Director

Tetsuya Iwasaki

Hiroshi Ishikawa

Shuichi Sasaki

Tatsuro Sasaki

Ticker code

8984

3263

Listing date

March 22, 2006

November 28, 2012

Fiscal period

February and August

February and August

Total number of units issued

747,740

350,700

Total unitholders' capital

61,703 mil yen

105,459 mil yen

Asset Manager

Daiwa House Asset Management Co., Ltd.

Daiwa House REIT Management Co., Ltd.

Asset custodian

Sumitomo Mitsui Trust Bank, Limited

Sumitomo Mitsui Trust Bank, Limited

Transfer agent

Sumitomo Mitsui Trust Bank, Limited

Sumitomo Mitsui Trust Bank, Limited

Accounting administrator

Sumitomo Mitsui Trust Bank, Limited

Sumitomo Mitsui Trust Bank, Limited

Administrator for investment

corporation bonds

Sumitomo Mitsui Trust Bank, Limited

The Bank of Tokyo-Mitsubishi UFJ, Ltd.


(Note) Data regarding the total number of investment units issued and the total unitholders' capital is presented, as of the period ended Feb. 2016.

Disclaimer



  • This document is provided for information purposes only and is not intended as a solicitation to invest or a recommendation to trade in a specific security. Please contact a financial product brokerage company if you are interested in purchasing the investment units of Daiwa House Residential Investment Corporation ("DHI") and Daiwa House REIT Investment Corporation ("DHR") .

  • This document is not a disclosure document or investment report required under and made in accordance with the Financial Instruments and Exchange Act, the Act on Investment Trusts and Investment Corporations and related cabinet orders and cabinet office ordinances, or under the Tokyo Stock Exchange's securities listing rules or any other related rules.

  • The contents of this document include forward-looking statements based on certain assumptions and judgments using information currently available to DHI and DHR. These forward-looking statements are not a guarantee of DHI's or DHR's future results, business performance and financial position.

  • DHI and DHR endeavor to ensure the contents of this document are as accurate as possible. However, DHI and DHR cannot guarantee the accuracy, reliability, adequacy or the accessibility of the information herein. DHI and DHR reserve the right to change or delete information without prior notice.

  • Duplication or reproduction of any item presented as information herein without the prior consent of DHI and DHR is strictly prohibited.

Daiwa House Residential Investment Corporation issued this content on 18 April 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 18 April 2016 08:20:12 UTC

Original Document: http://www.daiwahouse-resi-reit.co.jp/file/en-ir_news-17940c7ee1aead11a0fe203bd1ccfbd8f2104e1d.pdf