Notice Concerning Divestment of Trust Beneficiary Interest in Domestic Real Estate (Daiwa Sarugakucho)

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.

October 10, 2025

REIT Issuer: Daiwa Office Investment Corporation (Stock Code No.: 8976) Representative: Toshisuke Tanaka, Executive Director

Asset Manager: Daiwa Real Estate Asset Management Co. Ltd. Representative: Yoshiki Nishigaki, President and Representative Director

Inquiries to: Kentaro Azumi, General Manager, Acquisition and Asset Management Division (Tel: +81-3-6215-9649)

Notice Concerning Divestment of Trust Beneficiary Interest in Domestic Real Estate (Daiwa Sarugakucho)

Daiwa Office Investment Corporation (the "Investment Corporation") hereby announces that Daiwa Real Estate Asset Management Co. Ltd., to which the Investment Corporation entrusts management of its assets (the "Asset Manager"), has decided today to divest trust beneficial interest in real estate (the "Divestment") as follows.

1. Summary of the Divestment

   Asset Name	Daiwa Sarugakucho (the "Property")
   Type of Asset	Trust beneficial interest in domestic real estate
   Sale Price (Note 1)	5,100 million yen
   	(1) 2,550 million yen (50% of quasi co-ownership interest)	(2) 2,550 million yen (50% of quasi co-ownership interest)
   Book Value	2,984 million yen (As of May 31, 2025)
   Capital Gain or Loss from Divestment (Note 2)	1,691 million yen
   Date of Conclusion of Sales Agreement	October 10, 2025
   Scheduled Delivery Date	(1) November 28, 2025	(2) May 29, 2026
   Purchaser (Note 3)	Not disclosed
   Intermediary (Note 4)	Yes
   Payment Method	To be received on each of the scheduled delivery dates

   (Note 1) "Sale Price" does not include expenses related to the sale, settlement amounts of fixed asset tax and city planning tax, and consumption tax and local consumption tax.

   (Note 2) The figure may differ from the actual capital gain or loss from divestment. It is a simple calculation of difference between the sale price and the book value as well as expenses related to the sale as of the date of this document for reference.

   (Note 3) The purchaser is not disclosed as no consent for disclosure has been obtained. The purchaser is neither an interested person, etc. as stipulated in the Order for Enforcement of the Act on Investment Trusts and Investment Corporations nor a related party as stipulated in the "rules on prevention of conflicts of interest," the Asset Manager's internal regulations.

   (Note 4) The intermediary of the Divestment does not correspond to an interested person, etc.

2. Reason for the Divestment

   The Investment Corporation believes that the acceleration of internal growth, strengthening of portfolio through property replacements, and steady promotion of the return of unrealized gains would lead to the improvement of unitholder value as well as the increase in investment unit price.

   The Property has maintained a high occupancy rate by taking in rental demand mainly from education-related businesses and secured profitability. However, as approximately 40 years have passed since completion, the Investment Corporation recognized that considerable repairs and capital expenditures are necessary to maintain the competitiveness of the Property.

   As a result of the main tenant's intention to cancel the lease contract recently confirmed and consideration based on the future outlook for leasing and the costs that will be necessary in the future, the Investment Corporation decided to divest the Property after comprehensively taking into account the Property's potential for growth as well as the Investment Corporation's current and future portfolio strategy.

   Upon the Divestment, as a result of sales activities aiming for the "sale to players with different investment perspectives" based on the replacement strategy disclosed upon the announcement of the financial results for the fiscal period ended May 2025, the purchaser showed its intent to purchase the property at a sale price far exceeding the appraisal value. Therefore, although certain costs will be incurred in connection with the sale, the Investment Corporation decided on the Divestment by judging that the realization of unrealized gains on this occasion would contribute to the maximization of unitholder value.

   Note that the delivery of the Divestment is divided into two periods (the fiscal period ending November 2025, and the fiscal period ending May 2026) to stabilize the distribution over a longer term by returning the proceeds of the sale to unitholders in installments over the two periods while reserving some of them internally in preparation for environmental changes. The Investment Corporation will flexibly use the amount equivalent to sale book value for the acquisition of new properties, acquisition of own investment units, repayment of borrowings, etc., and lead such effort to the improvement of unitholder value.

3. Details of the Asset to Be Divested

   Asset Name		Daiwa Sarugakucho
   Type of Specified Asset		Trust beneficial interest in domestic real estate
   Trustee		Sumitomo Mitsui Trust Bank, Limited
   Maturity of Trust Period		April 25, 2032
   Location (Address)		2-6-10 Kanda-Sarugakucho, Chiyoda-ku, Tokyo
   Use (Real Property Registry)		Office
   Ownership Form		Ownership
   Site Area (Real Property Registry)		858.47 m2
   Total Floor Area (Real Property Registry)		4,303.97 m2
   Structure (Real Property Registry)		Steel-framed reinforced concrete structure flat roof, 8 stories above ground
   Construction Date (Real Property Registry)		June 28, 1985
   Book Value		2,984 million yen (May 31, 2025)
   Appraisal Value (Date of Valuation)		4,120 million yen (as of May 31, 2025)
   Appraiser		JLL Morii Valuation & Advisory K.K.
   Date of Delivery		(1) November 28, 2025, (2) May 29, 2026
   Summary of Tenants (as of May 31, 2025)
   	Total Number of Tenants	2
   	Rent Revenue	Not disclosed (Note)
   	Security Deposit and Guaranty	Not disclosed (Note)
   	Total Leased Floor Space	3,657.43 m2
   	Total Leasable Floor Space	3,657.43 m2
   	Occupancy Rate	100.0%

   (Note) Not disclosed for such reasons as consent was not obtained from major tenants to disclose the rent revenue, etc.

4. Details of the Purchaser

   The purchaser is a domestic corporation. However, it is not disclosed as consent for disclosure has not been obtained. There are no capital, human and business relationships between the Investment Corporation/Asset Manager and the purchaser, and the purchaser is not a related party of the Investment Corporation/Asset Manager.

   In addition, the purchaser is neither an interested person, etc. as stipulated in the Order for Enforcement of the Act on Investment Trusts and Investment Corporations nor a related party as stipulated in the "rules on prevention of conflicts of interest," the Asset Manager's internal regulations.

5. Future Prospects

   Due to the Divestment, the forecasts of management status and distribution for the fiscal period ending November 2025 (from June 1, 2025 to November 30, 2025) have been revised. For details, please refer to "Notice Concerning Revision (Upward Revision) to Forecasts of Management Status and Distribution for the Fiscal Period Ending November 2025 (40th Fiscal Period)" announced today.

   The forecasts of management status and distribution for the fiscal period ending May 2026 (from December 1, 2025 to May 31, 2026) are currently being examined as internal reserves for the stabilization of returns to unitholders, property acquisitions using the funds from divestment as the source of funds, acquisition of own investment units, repayment of borrowings, etc. are under consideration. They will be announced when the preconditions including such matters are determined.

6. Summary of Appraisal Report

(Note 1) The above revenue and expenses are based on the appraisal report and are not the figures forecasted by the Investment Corporation or the Asset Manager.

(Note 2) With no PM's permission given for a specific disclosure of the PM fees, there is no disclosure of the breakdown of the fees. Disclosure of the PM fee figures in a specific manner may cause adverse effects on other business operations of the PM, resulting in a negative impact on the planned efficient operation based on the maintenance policy of the investment-target property of the Investment Corporation that the Investment Corporation is to contract with the PM. This may in turn further cause adverse effects on unitholders' interests. Therefore, the figure presented in this column is calculated together with maintenance and operation costs.