Daiwa Office Investment : Notice Concerning Partial Amendments to Asset Management Guidelines of the Asset Manager

This translation of the original Japanese notice is provided solely for information purposes. Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.

July 19, 2021

REIT Issuer: Daiwa Office Investment Corporation (Stock Code No.: 8976)

Representative: Seiya Miyamoto, Executive Director

Asset Manager: Daiwa Real Estate Asset Management Co. Ltd.

Representative: Toshio Fukushima, President and Representative Director

Inquiries to: Takashi Chiba, General Manager, Corporate Division (Tel: [phone])

Notice Concerning Partial Amendments to Asset Management Guidelines of the Asset Manager

Daiwa Office Investment Corporation (the "Investment Corporation") hereby gives notice that Daiwa Real Estate Asset Management Co. Ltd. (the "Asset Manager"), to which the Investment Corporation entrusts the management of its assets, resolved at its board of directors' meeting held today to partially amend the asset management guidelines that are its internal rules.

1. Reasons for Amendments
   The Investment Corporation has been striving to enhance unitholder value by mainly focusing on acquiring highly competitive office properties centering on the five central wards of Tokyo, along with aiming to maintain and enhance stable revenue of the portfolio over the medium to long term. Amid an increasingly harsh property acquisition environment, the Investment Corporation and the Asset Manager decided to seek to acquire quality properties through "investment in development properties based on appropriate risk management" as part of proactive external growth strategies. To that end, the Asset Manager's asset management guidelines are being amended to set specific investment criteria for development properties, namely the investment criteria for the case of investment in the form of the Asset Manager itself becoming the party ordering contract work and the investment criteria for the case of reconstruction and such of portfolio assets, and also to make other required amendments.
2. Date of Amendments July 19, 2021
3. Overview of Amendments Please refer to the attachment.
4. Other
   For the amendments, an extraordinary report was submitted today to the Kanto Local Finance Bureau pursuant to the provisions of the Financial Instruments and Exchange Act.
5. • • End -
   • Website URL of the Investment Corporation:http://www.daiwa-office.co.jp/en/

[Attachment]

The content of "Part I: Fund Information; Section 1: Fund Status; 2. Investment Policy; 2.1. Investment Policy" set out in the periodic securities report (yuka shoken hokokusho) submitted by the Investment Corporation on February 17, 2021, will be amended as follows.

The following presents only the details of the main amendments thereof. The terms defined in the periodic securities report submitted on February 17, 2021, shall have the same meaning also in this document.

The amended portions are underlined. The deleted portions are not shown.

Part I: Fund Information

Section 1: Fund Status

1. Investment Policy

1. Investment Policy

(Preceding text omitted)

2.1.4. Policy for Acquisition of Investment Target Assets

(a) Investment Criteria for Investment Target Real Estate

1. Investment Criteria for Development Properties
   The Investment Corporation invests in real estate generating stable revenue in principle, but may invest in development properties up to an investment amount of 20% of the Investment Corporation's asset size at the time of the investment decisionwith a view to securing quality real estate.
   When investing in development properties, investment shall be limited to those meeting the following criteria from (i) through (iii) in principle.
2. 1. Building construction confirmation has already been obtained or, even if building construction confirmation is yet to obtained, is highly likely to be obtained.
   2. Measures against construction completion risks are sufficiently in place.
   3. There is certainty in securing of tenants after the construction completion or, even if not certain, tenants are highly likely to be secured.

Furthermore, if necessary for building or improving the portfolio, investment may be made in development properties that are reasonably deemed to have future potential in terms of profitability in the form of the Investment Corporation or the trustee of trust beneficiary interest in real estate held by the Investment Corporation entering into a contract agreement as the party ordering contract work. In this case, investment may be made, regardless of whether or not the abovementioned criteria from (i) through (iii) are met, up to an investment amount of 10% of the Investment Corporation's asset size at the time of the investment decision to the extent that it does not have excessive impact on the entire portfolio after comprehensive and careful consideration of the factors such as investment amount, construction period and impact on cash distributions. However, when investing in development properties in this case, investment shall be limited to those meeting the following criteria from (iv) through (viii). In addition, this amount limit (10%) shall be included in the abovementioned amount limit (20%) set for total amount of investment in development properties.

1. Building construction confirmation can be reasonably expected to be obtained in due consideration of the factors such as laws and regulations based on the design drawings and such.

1. An architectural plan with which conclusion of a contract agreement would be feasible has been drawn.
2. If investing in development premised on reconstruction, the reconstruction plan can be shown to be feasible considering the factors such as the probability of tenant exits and building demolition.
3. Securing of tenants after the construction completion can be reasonably expected to be likely.
4. Financing can be reasonably expected to be feasible and the financing terms and conditions can be reasonably expected to be economical after having duly examined the financing means and the feasibility thereof as well as the impact of such (including factors such as interest rate fluctuation risks during development).

(Following text omitted)

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