Connecting Hearts Daiwa House Asset Management Co., Ltd. is an asset manager of Daiwa House REIT Investment Corporation.

MESSAGE

Daiwa House Asset Management Co., Ltd. (the “Asset Manager”), which was established in September 2004, is an asset manager of J-REIT. Daiwa House Residential Investment Corporation, which entrusts its asset management to the Asset Manager, was listed on the Tokyo Stock Exchange in March 2006 and has grown by targeting investments in residential properties. Effective September 1, 2016, Daiwa House Residential Investment Corporation merged with Daiwa House REIT Investment Corporation, which targets investments in logistics properties and retail properties, and changed its name to Daiwa House REIT Investment (securities code: 8984) to make a new start as a “diversified REIT.” At the same time as the merger of the investment corporations, the Asset Manager merged with Daiwa House REIT Management Co., Ltd., which was entrusted with the asset management of the former Daiwa House REIT Investment Corporation.

Daiwa House REIT Investment Corporation will leverage to the maximum possible extent the know-how that its sponsor, the Daiwa House Group, possesses in planning, development, construction, tenant leasing, administration and management. In addition to the existing investment target assets of the two investment corporations, namely logistics properties, residential properties and retail properties, Daiwa House REIT Investment Corporation will also make hotels another core asset class, investing in and managing real estate located throughout Japan, but primarily in the three major metropolitan areas. Furthermore, in order to meet society's demands and achieve healthy growth, the Asset Manager will make a thorough adherence to compliance a fundamental principle of management, establishing a compliance structure that emphasizes effectiveness, while working towards appropriate and timely disclosure that emphasizes transparency.

In our operational management going forward, by carefully paying attention to changes in the market environment and with the cooperation of the Daiwa House Group, we aim to secure steady growth in assets under management and stable profits over the medium- to long-term. In order to meet expectations including those of our unitholders, as well as to contribute to the development of the J-REIT industry as a whole, we will make every effort for the development of our business. We sincerely ask for your continued warm support and encouragement in the future.

Koichi TsuchidaPresident and CEO

Daiwa House Asset Management Co., Ltd.

CONCEPT

We carry out investment in and management of real estate over a wide range of fields,
aiming for our ideal of continuous expansion in unitholder value by securing stable profits over the medium- to long-term and growing assets steadily.


As a diversified REIT, we position logistics properties, residential properties, retail properties and hotels as our core asset classes, but in the course of our asset management we may also target offices, healthcare properties and the like for investment.
We focus our investments geographically on the three major metropolitan areas of the greater Tokyo, the greater Nagoya, and the greater Osaka areas, managing assets with due consideration given to the regional characteristics of building use and to their future prospects, while taking an approach that gives us confidence in stable rental income over the medium- to long-term.

Leveraging the integrated capabilities of the Daiwa House Group, we aim to maximize unitholder value by securing profit through steady growth in assets under management and through stable and rising earnings distributions.

PROFILE

Company Name Daiwa House Asset Management Co., Ltd.
Address 7th Floor, Nissei Nagatacho Building, 2-4-8 Nagatacho, Chiyoda-ku, Tokyo 100-0014 MAP
One minute walk from Tameike-sanno Station (Exit 8)
TEL : +81-3-3595-1151
Founded September 1, 2004
Paid-in Capital 300,000,000 yen
Shareholders Daiwa House Industry Co., Ltd. 100%
Representative Koichi Tsuchida, President and CEO
Registrations, licenses
Building Lots and Building Transaction Business License: No. (3) 83758, issued by Governor of Tokyo
Discretionary Transaction Agent: No.32, issued by the Minister of Land, Infrastructure and Transport
Financial Instruments Firm, Kanto Finance Bureau (registration): No. 409
As of September 1, 2016

ORGANIZATION

Department Allocation of Duties
President and CEO General management of the performance of all businesses of the Asset Manager
Director Oversighting
Investment Management Division
General management of performance of the businesses of the Asset Management Department and the Investment Department
Director with responsibility for Human Resources / General Affairs / Accounting Department General management of performance of the businesses of the Administration and Accounting Department
Director with responsibility for Finance /
IR / Planning Department
General management of performance of the businesses of the Finance and Corporate Planning Department
Compliance Officer
  1. Planning, drafting and promotion of general compliance
  2. Verification of compliance with laws and regulations and risk management with respect to all businesses of the Asset Manager
  3. Verification of appropriateness of handling of complaints, etc.
  4. Verification of appropriateness of management of information
  5. General management of internal auditing
  6. General management of performance of businesses of the Compliance Department
  7. Other matters attendant upon or related to the above items
Compliance Department
  1. Verification and supervisory guidance of the state of observance of laws and regulations and of internal company rules
  2. Drawing up policies and plans for internal auditing, and carrying out internal auditing
  3. Matters related to compliance policy
  4. Businesses related to laying out and revising compliance manuals
  5. Businesses related to implementation of internal training related to compliance
  6. Businesses related to drawing up and enforcing a structure to exclude antisocial forces
  7. Businesses related to litigation actions and execution and preservation actions
  8. Businesses related to verification of the state of risk management
  9. Other matters attendant upon or related to the above items
Investment Department
  1. Businesses related to acquisitions and disposition of property related to the investment management business
  2. Investigations and analysis of real estate markets
  3. Collection and analysis of investment information
  4. Other matters attendant upon or related to the above items
Asset Management Department
  1. Businesses related to management of assets of DHR*
  2. Investigations and analysis of trends on real estate lease markets and industries such as the retail industry
  3. Analysis of investment information
  4. Management of credit of tenants
  5. Other matters attendant upon or related to the above items
Administration and Accounting Department
  1. Businesses related to management planning
  2. Businesses related to general affairs, human resources, advertising, and accounting
  3. Businesses related to accounting of DHR
  4. Businesses related to information security
  5. Managing corporate-related information to prevent insider trading
  6. Businesses related to information systems
  7. Businesses related to personal information
  8. Receipt of complaints, etc.
  9. Businesses related to filings with public authorities
  10. Businesses related to dealing with unitholders and general unitholders meetings
  11. Businesses related to running of general shareholders meetings and board of directors meetings
  12. Businesses related to the execution, termination, and amendment of the asset management agreement
  13. Acting as a contact point for industry groups and other parties
  14. Other matters attendant upon or related to the above items
Finance and Corporate Planning Department
  1. Businesses related to DHR's management planning and strategy
  2. Businesses related to DHR's capital policy, finance strategy, and fund raising
  3. Businesses related to advertising, marketing, and public relations activities
  4. Matters related to DHR's dividend policy and earnings distribution
  5. Businesses related to timely disclosure
  6. Investigations and analysis of financial and capital markets
  7. Investigations and analysis of real estate investment trust markets
  8. Other matters attendant upon or related to the above items
Compliance Committee
  1. Deliberations and resolutions on transactions with interested parties in the investment management business (defined in the "Interested - Party Transaction Rules")
  2. Deliberations or resolutions on compliance with respect to matters for resolutions at board of directors meetings other than those matters set out in the preceding item
  3. Deliberations or resolutions on compliance of other matters that the Compliance Officer requires deliberations or resolutions at meetings of the Compliance Committee
  4. Verification of risks and risk management concerning asset management pertaining to the investment management business
  5. Other deliberations or resolutions related to matters attendant upon or related to the above items
Investment Management Committee
  1. Deliberations and resolutions regarding investment policies pertaining to the investment management business
  2. Deliberations and resolutions regarding the acquisition, disposition, and investment management of assets pertaining to the investment management business
  3. Other deliberations or resolutions related to matters attendant upon or related to the above items
Management Finance Committee
  1. Deliberations, resolutions on basic matters of DHR
  2. Deliberations, resolutions, etc. on important matters concerning management planning, human resources, and general affairs
  3. Deliberations, resolutions, etc. on important matters concerning DHR's management planning, finance, accounting, and IR
  4. Other deliberations or resolutions related to matters attendant upon or related to the above items

*“DHR” shall mean Daiwa House REIT Investment Corporation, with which the Asset Manager has an asset management agreement. The same hereinafter.

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