Daiwa House REIT Investment : Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units

1. The issue price (offer price), the amount to be paid in (issue value) and any other matters necessary for this issuance of new investment units shall be determined at a future meeting of the board of directors of DHR.
2. The above items shall be subject to the condition that the registration under the Financial Instruments and Exchange Act takes effect.

Disclaimer: This announcement is prepared for the public disclosure of the issuance of new investment units and secondary offering of investment units of DHR and has not been prepared for the purpose of soliciting investment within or outside of Japan. This announcement does not constitute any offer of securities in the United States. The securities referred to have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"). The securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. The securities referred to above will not be offered in the United States.

- 2 -

2. Secondary offering (secondary offering through over-allotment)

1. The selling price and any other matters necessary for this secondary offering of investment units shall be determined at future meetings of the board of directors of DHR.
2. The above items shall be subject to the conditions that the registration under the Financial Instruments and Exchange Act takes effect.

3. Issuance of new investment units through third-party allotment

1. Total amount to be Undetermined paid in (issue value)

Disclaimer: This announcement is prepared for the public disclosure of the issuance of new investment units and secondary offering of investment units of DHR and has not been prepared for the purpose of soliciting investment within or outside of Japan. This announcement does not constitute any offer of securities in the United States. The securities referred to have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"). The securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. The securities referred to above will not be offered in the United States.

- 3 -

1. The DHR investment units not subscribed by the subscription period (subscription date) stated in
   (6) above shall not be issued.
2. The amount to be paid in (issue value) and any other matters necessary for this issuance of new investment units shall be determined at future meetings of the board of directors of DHR.
3. The above items shall be subject to the condition that the registration under the Financial Instruments and Exchange Act takes effect.

1. Secondary offering through over-allotment, etc.

In connection with the Offering, an Underwriter, the bookrunner of the Offering, may conduct a secondary offering through over-allotment of up to 3,000 units of DHR investment units which will be borrowed from Daiwa House Industry Co., Ltd., taking into account demand conditions, among other factors. The number of investment units to be sold in the secondary offering through over-allotment is planned to be 3,000 units; however, the number of investment units to be sold indicates the maximum number of investment units to be sold. The number may decrease, or the secondary offering through over-allotment itself may not take place at all, depending on demand conditions and other factors.

In connection with the secondary offering through over-allotment, DHR adopted a resolution at a meeting of the board of directors of DHR held on Thursday, August 18, 2022 to conduct an issuance of new investment units through third-party allotment of 3,000 units of DHR investment units with an Underwriter as the allottee (the "Third-Party Allotment"), setting Tuesday, September 27, 2022 as the payment date, for the purpose of having the Underwriter acquire the DHR investment units necessary to return the DHR investment units which will be borrowed from Daiwa House Industry Co., Ltd. (the "Borrowed Investment Units").

In addition, during the period from the day following the date on which the subscription period for the Offering and secondary offering through over-allotment ends to Tuesday, September 20, 2022 (the "Syndicate Covering Transaction Period"), the Underwriter may purchase DHR investment units on the Tokyo Stock Exchange, Inc. up to the number of investment units of the secondary offering through over-allotment (the "Syndicate Covering Transactions") for the purpose of returning the Borrowed Investment Units. All DHR investment units that the Underwriter acquires through the Syndicate Covering Transactions will be used to return the Borrowed Investment Units. During the Syndicate Covering Transaction Period, the Underwriter may, at its discretion, not conduct the Syndicate Covering Transactions at all, or terminate the Syndicate Covering Transactions before the number of investment units reaches the number of investment units of the secondary offering through over-allotment.

Moreover, the Underwriter may conduct stabilizing transactions in conjunction with the Offering and secondary offering through over-allotment.

The DHR investment units acquired through the stabilizing transactions may, in whole or in part, be used to return the Borrowed Investment Units. The Underwriter plans to acquire DHR investment units by accepting the allotment of the Third-Party Allotment for the number of investment units corresponding to the number of investment units acquired through stabilizing transactions and the Syndicate Covering Transactions that are to be used to return the Borrowed Investment Units is deducted from the number of investments units of the secondary offering through over-allotment. For this reason, the number of investment units to be issued through the Third-Party Allotment may not be subscribed in whole or in part and, as a result, the final number of investment units to be issued through the Third-Party Allotment may decrease by the same extent, or the

Disclaimer: This announcement is prepared for the public disclosure of the issuance of new investment units and secondary offering of investment units of DHR and has not been prepared for the purpose of soliciting investment within or outside of Japan. This announcement does not constitute any offer of securities in the United States. The securities referred to have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"). The securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. The securities referred to above will not be offered in the United States.

- 4 -

issuance itself may not take place at all, due to forfeiture.

The transactions above shall be conducted by the Underwriter in consultation with the other Joint Lead Managers.

2. Changes in total number of investment units issued after the issuance of new investment units

(Note) The number of investment units in the event that the Underwriter subscribes to all investment units to be issued through the Third-Party Allotment, and the issuance takes place.

3. Purpose and reason for the issuance

DHR believes that acquiring the specified assets (as defined in Article 2, Paragraph 1 of the Act on Investment Trusts and Investment Corporations; the same shall apply hereafter) (Note) would further enhance the growth of distribution per unit and improvement in quality of the portfolio. DHR decided to issue new investment

units considering market trends, financial stability, level of distributions per unit and other factors.

(Note) For details of the specified assets, please refer to the press release "Notice Concerning Acquisition of Trust Beneficiary Interests in Domestic Real Estate" dated today.

4. Amount of funds to be procured, use of the funds and scheduled outlay period

(1) Amount of funds to be procured (approximate net proceeds)

13,461,885,000 yen (maximum)

(Note) The sum total amount of 12,564,426,000 yen in proceeds from the Offering, and 897,459,000 yen in maximum proceeds from the issuance of new investment units through the Third-Party Allotment. The above amount is the estimated amount calculated based on the closing price in regular trading of DHR investment units on the Tokyo Stock Exchange, Inc. as of Friday, July 29, 2022.

(2) Specific use of the funds to be procured and scheduled outlay period

Net proceeds to be procured through the Offering will be used to fund part of the acquisition of specified assets listed in the press release "Notice Concerning Acquisition of Trust Beneficiary Interests in Domestic Real Estate" dated today. Net proceeds to be procured through the Third-Party Allotment will be used to reserve as cash to fund part of acquisition of specified assets or fund part of repayment of loans in the future.

(Note) The proceeds will be deposited with financial institutions until the funds are to be expensed.

5. Future prospects

Please refer to the press release "Notice Concerning Revision to Forecast of Results for the Fiscal Period

Ending February 28, 2023 and Announcement of Forecast of Results for the Fiscal Period Ending August 31, 2023" dated today.

Disclaimer: This announcement is prepared for the public disclosure of the issuance of new investment units and secondary offering of investment units of DHR and has not been prepared for the purpose of soliciting investment within or outside of Japan. This announcement does not constitute any offer of securities in the United States. The securities referred to have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"). The securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. The securities referred to above will not be offered in the United States.

- 5 -