Notice Regarding Acquisition of Domestic Real Estate Trust Beneficiary Interests (2 Properties) and Transfer of Domestic Real Estate Trust Beneficiary Interest (Daiwa Azabudai Building)

Transaction Overview

Daiwa Office Investment Corporation has decided to acquire domestic real estate trust beneficiary interests in Hamamatsucho PREX (JPY 7,150 million) and Prime Sendagaya Building (JPY 19,400 million) in March 2026, and concurrently transfer the Daiwa Azabudai Building (JPY 2,240 million). The acquired properties are all located in highly convenient areas and are relatively new, high-functionality office buildings aimed at strengthening portfolio profitability. The transferred property, approximately 40 years old, is expected to incur increased repair costs; therefore, realizing latent gains is a strategic decision to maximize investor value.

Outlook and Financing

Following this transaction, we have revised upwards the operational status and distribution forecast for the fiscal year ending May 2026. Forecasts for the fiscal year ending November 2026 are currently under review and will be announced once finalized. Acquisition funds will be covered by cash on hand and borrowings (including green loans), with settlement to be made in a lump sum at property delivery. The counterparties are three domestic corporations with no capital or interest relationships.