daVinci Select K.K. Business Results for the Third Fiscal Period, … · Third period ended May 31, 2007 17 acquisitions at time of IPO** 5.2% 5.3% 5.5% 11 acquisitions in first period

daVinci Select K.K.

September 3, 2007

Business Results for the Third Fiscal Period, Ended May 31, 2007

1

Disclaimer: This presentation includes forward-looking statements about DA Office Investment Corporation, daVinci Select and daVinci Advisors and affiliated companies (the Group). To the extent that statements in this presentation do not relate to historical or current facts, they constitute forward-looking statements. These forward-looking statements are based on the current assumptions and beliefs of the Group in light of current information and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause actual performance to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements.

This document is not intended as an inducement or invitation to purchase or invest in the products or investment share of the Group. Nor is the document intended to provide comprehensive information about the business performance and strategies of the Group. Each investment decision requires the independent exercise of judgment in fully reviewing the merits and risks. Investment decisions should not rely solely on the information contained herein and should consider multiple factors utilizing various sources of information.

The Group undertakes no obligation to publicly update any forward-looking statements after the date of this presentation.

2

1. Third Fiscal Period Highlights

■Business Results for the Third Fiscal Period (December 1, 2006 – May 31, 2007)

(Announced March 28, 2007)

Operating RevenueOperating Revenue

Operating IncomeOperating Income

Net IncomeNet Income

Dividend per UnitDividend per Unit

Results (34 Properties)Results (34 Properties)

¥6,151 million¥6,151 million



¥29,374¥29,374

Change from Previous PeriodChange from Previous Period

+ ¥1,241 million+ ¥1,241 million


+ ¥917 million+ ¥917 million

+ ¥9,178+ ¥9,178

+25.3％+25.3％

+52.3％+52.3％

+45.4％+45.4％

+45.4％+45.4％

Initial Forecast (35 Properties)





¥28,999¥28,999

Difference between Actual Results and Forecast





+ ¥375+ ¥375

+0.7％+0.7％

+2.1％+2.1％

+1.3％+1.3％

+1.3％+1.3％

■Recent Key Activities ■ Forecasts Fourth Period Fifth Period

Operating Revenue

Operating Revenue

Operating Income

Operating Income






¥19,716¥19,716




¥13,022¥13,022

(Note 4)

(Note 1) Total acquisition price of portfolio(Note 2) On the assumption that 205,000 investment units are issued (Note 3) LTV is calculated by dividing interest-bearing debt by the appraisal value of the portfolio at the period-end, or in this case, at the time of public offering.(Note 4) Forecasts include capital gains from selling daVinci Kayabacho 376, daVinci Yushima, daVinci Nishi-Gotanda I, and daVinci Shin-Yokohama 131.

Number of unitsNumber of units

100,000100,000 205,000205,000

LTVLTV56.456.4%% 35.335.3%%

(Note 2)

(Note 3)

(Note 2)

Approx. 78.7 Billion

(Note 1）

Third period-end After public offering

Expansion of asset scale through public offeringExpansion of asset scale through public offering

3

1. Third Fiscal Period Highlights

■Business Results for the Third Fiscal Period (December 1, 2006 – May 31, 2007)

(Announced March 28, 2007)

Operating RevenueOperating Revenue

Operating IncomeOperating Income



Results (34 Properties)Results (34 Properties)




¥29,374¥29,374

Change from Previous PeriodChange from Previous Period




+ ¥9,178+ ¥9,178

+25.3％+25.3％

+52.3％+52.3％

+45.4％+45.4％

+45.4％+45.4％






¥28,999¥28,999






+ ¥375+ ¥375

+0.7％+0.7％

+2.1％+2.1％

+1.3％+1.3％

+1.3％+1.3％

■Recent Key Activities ■ Forecasts Fourth Period Fifth Period

Operating Revenue

Operating Revenue

Operating Income

Operating Income






¥19,716¥19,716




¥13,022¥13,022

(Note 4)

(Note 1) Total acquisition price of portfolio(Note 2) On the assumption that 205,000 investment units are issued (Note 3) LTV is calculated by dividing interest-bearing debt by the appraisal value of the portfolio at the period-end, or in this case, at the time of public offering.(Note 4) Forecasts include capital gains from selling daVinci Kayabacho 376, daVinci Yushima, daVinci Nishi-Gotanda I, and daVinci Shin-Yokohama 131.

Number of unitsNumber of units

100,000100,000 205,000205,000

LTVLTV56.456.4%% 35.335.3%%

(Note 2)

(Note 3)

(Note 2)

Approx. 78.7 Billion

(Note 1）

Third period-end After public offering

Expansion of asset scale through public offeringExpansion of asset scale through public offering

finance highlights

4

2. External Growth (1) Third Fiscal Period Highlights

22 Properties at time of 22 Properties at time of public listingpublic listing

33 Properties at end of 33 Properties at end of first fiscal periodfirst fiscal period

34 Properties at end of 34 Properties at end of third fiscal periodthird fiscal period

Acquisition price approx. ¥79.5 billion

Ratio of properties located in the Tokyo

metropolitan area

93.5%


metropolitan area

95.3%


metropolitan area

99.099.0%%

Acquisition price approx. 110.8 billion


* NOI: Annualized net operating income (before property repair expenses) / Total acquisition price

37 Properties at end of 37 Properties at end of second fiscal periodsecond fiscal period


metropolitan area

95.9%


5

2. External Growth (2) Performance Results

Starting with an asset scale of ¥79.5 billion at the time of listing on the Tokyo Stock Exchange on October 19, 2005, DA Office REIT has attained solid growth in its portfolio. With the acquisitions of the Shinjuku Maynds Tower, SHIBUYA EDGE, and the daVinci Shinagawa II on July 13, 2007, the value of its portfolio has expanded to ¥211.0 billion in just one year and nine months since public listing.

Continuing its external growth strategy, DA Office REIT is aiming to reach an asset scale of ¥300 billion by the end of 2008.

■ Changes in Value of Property Acquisitions since Public Listing

6

■ daVinci Advisors Performance Results

2. External Growth (3) Next Growth Strategy

■ Portfolio Composition Strategy

Continue investment focus on Continue investment focus on TokyoTokyo’’s five central wardss five central wards

Invest in office buildings that have Invest in office buildings that have potential for internal growthpotential for internal growth

■ Property Acquisition Pipeline

●As of December 31, 2006, daVinci Advisors acquired six properties utilizing its private fund (using approximately ¥858.5 billion).

●An investment fund on the scale of ¥1 trillion (the “¥1 trillion fund”) was put in place in February 2006.

daVinci Iidabashi daVinci Takada 3-chome daVinci Shinjuku

Kokusai Akasaka Bldg. daVinci Fukuoka Tenjin daVinci Sakurabashi

* The properties identified above form a part of a real estate private fund managed by daVinci Advisors. As of July 23, 2007, DA Office REIT had no plans to aquire the subject properties.

■ Examples of daVinci Advisors’ investment assets

7

3. Internal Growth (1) Third Fiscal Period Highlights

* daVinci Shinjuku Gyoen-mae is not included in the second fiscal period, and daVinci Shimbashi 620, daVinci koishikawa, daVinci Okayama, and daVinci Hakata are not included in the third fiscal period.

** The base for the annualized NOI yield is before property repair expenses.

Second fiscal period

5.6%5.65.6%

Increased earnings

through rent

revisions

In the third fiscal period,

of the total of 53

contract renewal tenants,

42 tenants (79.2%)accepted rent increases

Increased earnings

through rent

revisions

In the third fiscal period,

of the total of 53

contract renewal tenants,

42 tenants (79.2%)accepted rent increases

Third fiscal period5.7%5.7%

**Increased NOIIncreased NOIMaintaining high

occupancy rateOccupancy rate: 99.0%

(As of May 31, 2007)

Maintaining high

occupancy rateOccupancy rate: 99.0%

(As of May 31, 2007)

Increased NOI (based on 34 properties at the end of the third fiscal period*)

8

85.7％

3. Internal Growth (2) Implementation of Increased Rent Revisions

■Rent Revisions (34 properties with 273 tenants at the third period-end)

■Rate of Rental Increase for Targeted Tenants

■Total Rent IncreaseTenants subject to

rent revisions

■Higher Rent Revision Success Rate

53

42 (7 tenants renegotiated new contracts)(1 tenant renegotiated new

contract)

(2 tenants negotiated new contracts)

Achieved third fiscal period target of increasing Achieved third fiscal period target of increasing total rent revenues above second fiscal period total rent revenues above second fiscal period annual rate of 4%annual rate of 4%

49 (10 tenants renegotiated new contracts)

15.615.6％％

2.42.4％％19.4％

(10 tenants renegotiated new contracts)

Tenants not subject to rent revisions

220

80.6％

Rent increase by type of tenant

Tenants in rent revision negotiations92.5％

Tenants continuing previous contract

terms

4

7.5％

85.7％

Tenants accepting rent increase

Tenants continuing previous contract

terms

5

10.2％

Tenants negotiating rent

decrease4.1%

2

For its 34 properties held as of the third period-end, DA Office REIT has been implementing rent revisions to increase rent since December 1, 2006.

（（Annual 4.8Annual 4.8％）％）

Tenant type Rent increase

Contract renewal 16.0%Original contract 11.9%

9

90.0

91.0

92.0

93.0

94.0

95.0

96.0

97.0

98.0

99.0

100.0

Oct

.31

Jan.

31

Mar

. 31

May

31

Jul. 3

1

Sep.

30

Nov.

30

Jan.

31

Mar

. 31

May

31

2005 2006 2007

3. Internal Growth (3) Management Indicators

* The base for the annualized NOI yield is before property repair expenses.** daVinci Shinjuku Gyoen-mae is not included in the second fiscal period, and daVinci Shimbashi 620, daVinci

Koishikawa, daVinci Okayama, and daVinci Hakata are not included in the third fiscal period.

First period endedMay 31, 2006

Second period endedNov. 30, 2006

Third period endedMay 31, 2007

17 acquisitionsat time of IPO** 5.2% 5.3% 5.5%11 acquisitionsin first period 5.6% 6.1% 6.3%5 acquisitions

in second period - 5.5% 5.7%1 acquisition

in third period - - 5.4%

■Changes in Occupancy Rate■Changes in Annualized NOI Yield*

Occupancy Rate as of May 31, 2007

99.099.0％％

■Changes in Rent Levels from the Time of Acquisition by period

(Note 1) The graph above is based on data for DA Office REIT’s properties as of June 15, 2007. Contracted rent amounts are calculated as of the month-end and set at 100% from the month of property acquisition. Rent amounts are adjusted thereafter based on changes in rental contracts.

(Note 2) Monthly rental amounts are from rental agreements for offices, shops and warehouses (excluding master lease contracts), and include subletting and subleasing contracts (including rental fees for common areas of properties but excluding those for adjunct facilities such parking spaces).

(Note 3) Data corresponding to acquisition dates in the graph above are for all properties acquired at that time. Regarding data for properties acquired on October 21, 2005, however, five properties sold in the second and third fiscal periods have been excluded.

(%)

10

3. Internal Growth (4) Next Growth Strategy

賃料のギャップを埋める戦略賃料増額改定の推進Strategy for Bridging the Rent Gap Pushing ahead with Increased Rent Revisions

※

* NOI (Rent cash flows) = Earnings from rental operations - Expenditures from rental operations + Depreciation for the fiscal period

Push ahead with increased rent revisions

Raise property rental levels in line with market rates Maximize NOI

2.52.5％％ increase in rental income increase in rental income （（55％％ annual increase above previous periodannual increase above previous period））

daVinci Nihonbashi Honcho

賃料増額改定の推進

Major tenant switch planned

■Increased Rent Revision Outline■Fourth Fiscal Period

Property Notice

Fourth fiscal period target: Fourth fiscal period target:

11

Are

a

Property name Current rent Market rent Rent gap

Shibuya SS Bldg.

Atlantic Bldg. 23.4%35.3%

34.6%27.3%10.3%27.8%

23.5%11.1%

8.7%

-0.5%

32.4%42.7%29.8%

9.2%

18.9%4.4%

13.8%

19.5%

15,647

20,111

20,000

32,000

21,000

21,00021,000

19,000

22,000

18,083

19,00015,500

17,000

22,176

14,926

16,205

Nihonbashi MS Bldg.

Shuwa Tsukishima Bldg.

daVinci Tsukiji 616

14,047

12,628

22,00024,000

22.2%daVinci Shibaura

daVinci Minami Aoyama 26,192daVinci Mita 17,577

daVinci Ginza

daVinci Kamiyacho

daVinci Ginza Annex

17,855

35,00029,50031,00019,500

daVinci Misakicho

daVinci A Hamamatsucho

BPS Square

daVinci Jingumae

daVinci Tsukiji

daVinci Shibadaimon

19,806

daVinci Shinbashi 510

26,42620,67523,874

22,082

16,691

18,500

18,000

30,00020,000

Five

cen

tral

war

ds o

f Tok

yo

daVinci Sarugakucho 17,000

3. Internal Growth (5) Closing the Rent Gap

Comparison of Current Rent and Market-Level Rent (for 33 properties as of July 31, 2007)

Current rent levels for DA Office REIT properties are below accepted market levels. DA Office REIT anticipates the importance of closing this “rent gap,” and has therefore positioned increased rental revisions as a management priority.

* Current rent is calculated based on the rent level on April 30 for offices above the second floor.

** Market rent is based on an assessment prepared in a market report by Tokyu Livable, Inc. (April 30, 2007).

*** Rent gap = (Market rent – Current rent) / Current rent

Are

a

Property name Current rent Market rent Rent gap*** ***

Subtotal 22,816 31,967 40.1%

Subtotal 16,223 17.5%20,955 28,714 37.0%

Five

cen

tral

war

ds o

f Tok

yo

16,000

19,391

17,999

13,810Total

14,651

30,000

27,000

27,000

daVinci Kinshicho

15,00016,914

Tok

yo m

etro

polit

an a

rea

and

regi

onal

maj

or c

ities

Bennex S-3

Believe Omori

daVinci Shin-Yokohama214

12,210

22,45416,646

31,132

22,00026,000

14,00016,000

19,000

21,391

62.2%

30.9%

33.6%22.2%21.5%39.2%

Sunline 7 Bldg.

daVinci Onarimon

daVinci Kyobashi

daVinci Ginza 1-chome

daVinci NihonbashiHoncho

daVinci Higashi-Ikebukuro

daVinci Shinagawa Ⅱ 16,082

13,94210,698

30.6%21,000

32,500

13,000

Shinjuku Maynds Tower 28,924 45,000SHIBUYA EDGE

Sapporo Chiyoda Bldg. 12,076 7.7%

55.6%4.4%

2.4%12.3%

31.0%14.8%

* ** ***

12

4. Financial Strategy (1) External Growth BackupDA Office REIT is building a flexible financial system that reaps the benefits of external growth by conducting public offerings and lowering the LTV ratio.

Acquire bond rating Extend repayment of debt by issuing bonds

Build a flexible system for loans based on a stable financial structure

Optimize external growth backup function that provides ample funds for acquisitions

(Note 1) Based on assessed value of total investment assets at the period-end

(Note 2) Total interest-bearing liabilities

(Note 3) The diagram is based on data of projected property acquisitions

(Note 4) Based on acquisition price of total assets

●Balance sheets after public offering (as of July 23, 2007)

●Projected balance sheets that optimize greater capacity for acquisitions (Note 3)

¥228.7 billion

(Note 1)

¥300.0 billion

range

(Note 4)

Equity

¥80.8 billion

(Note 2)

Equity

Debt

(Note 2)

Approx. 55% LTV based on acquisition price of assets35.3％ LTV

based on assessed value of assets at period-end

13

Long-term

¥56.1 billion

72.1%

Diversification of Debt Repayment

7 .2

3 0 .4 0 6

1 7 .5 1 4 .5 56 .1 6 85 .0

0

5

10

15

20

25

30

35

40

Nov.

2007

May

2008

Nov.

2008

May

2009

Nov.

2009

May

2010

Nov.

2010

May

2011

Nov.

2011

May

2012

Nov.

2012

Fixed

Floating

（Billions of y en）

37.606 As the repayment date for debt of ¥30,406 million falls in December 2007, refinancing of long-term debt is being considered.

Long-term refinancing (planned)

Short-term refinancing (planned)

Short-term

¥21.7 billion

27.9%

Breakdown of debt after refinancing in December 2007 (planned)

Breakdown of short- and long-term debt as of July 23, 2007

Long-term

¥25.7 billion

31.8%

Short-term

¥55.1 billion

68.2%

Purchase of Interest Rate CapThe purchase of an interest rate cap eliminates the risk of sudden jumps in interest rates while providing the benefits of low interest rates.

Details:

① Interest rate target：3-month Tibor ② Strike：1.2％ ③ Assumed principal interest rate spread：0.8％ ④ Payment premium：0.49％ (approx. 3-year period)

→①–④ After consideration of interest rate expense, the annual interest rate was capped at approximately 2.16%. Forecasts are based on the assumption of a long-term fixed rate of interest.

Long-term refinancing

4. Financial Strategy (2) Protecting Against Rising Interest Rates

Year of Repayment

Am

ount

of R

epay

men

t

As of July 23, 2007

Reference MaterialReference Material

daVinci Select K.K.

September 3, 2007

15

Third Period Acquisitions

(Note 1) Assumed NOI Yield (before property repair expenses) is calculated based on a market report by Tokyo Livable, Inc.

(Note 2) Current rent is based on the rent level on April 30 for offices above the second floor.

(Note 3) Market rent is based on an assessment prepared in a market report by Tokyo Livable, Inc. (April 30, 2007).

(Note 4) Rent gap ratio ＝ (Market rent – Current rent) / Current rent

Third period NOI yield

Projected fourth period NOI yield

5.4%5.6%

7.3%

■Overview of Property

daVinci OnarimondaVinci Onarimon■Extensive Renovations Conducted to Raise Competitiveness

■High Occupancy Rate Contributes to Steady Internal Growth

Seismic reinforcement work and large-scale renovations were carried out at the property in 2004. The property’s competitiveness has been significantly raised with the installation of individual air conditioning units and OA floors throughout the entire building, as well as a 24-hour security system at the building’s entranceways.

As the current level of rent from existing tenants is lower than the market rental rate, DA Office REIT will work to bridge this difference based on its strategy for steady internal growth through increasing rent revisions.

Current rent (Note 2)

Market rent (Note 3)

Most recent rental lease

Rent gap ratio (Note 4)

¥19,391¥27,000¥30,00039.2%

Location: 6-1-11 Shimbashi, Minato-ku, Tokyo

Land area: 1,990.40㎡

Structure: SRC

Number of floors: 9

Floor area: 13,805.18㎡

Leasable floor area: 11,883.66㎡

Construction completion: April 30, 1973

Acquisition price: ¥13.86 billion

Occupancy rate: 100％ (As of May 31, 2007)

Conducted seismic reinforcement work and large-scale renovations in 2004

Assumed NOI yield based on

market report (Note 1)

16

Fourth Period Acquisitions

Location: 2-1-1 Yoyogi, Shibuya-ku, Tokyo

Land area: 11,500.48m2

Structure: S, SRC

Number of floors: 3 below ground, 34 above ground

Floor area: 97,978.74m2

Leasable floor area: 53,165.58m2

Construction completion: September 26, 1995


Occupancy rate: 98.1% (As of May 31, 2007)(Note) DA Office REIT plans to acquire trust beneficiary rights in real estate for co-ownership corresponding to a ratio of 3:7 of the entire building. The above figures for land area, floor area and leasable floor space refer to the entire property.

Shinjuku Shinjuku MayndsMaynds TowerTower

■Next to Shinjuku Station—the Busiest Train Station in JapanThe property is a five-minute walk from Shinjuku Station, which services JR East Japan Railway lines, the Odakyu, Keio, and Seibu lines, as well as Tokyo Metro subway lines.

■High Potential for Steady Internal Growth AnticipatedGiven that the current level of rent from existing tenants is lower than the market rental rate, DA Office REIT will close the “rent gap” with the aim of attaining steady internal growth.

■Overview of Property

Projected fourth period NOI yield 3.2%

5.1%

¥28,924¥45,000¥50,00055.6%

Assumed NOI yield based on

market report

(Note 1) Assumed NOI Yield (before property repair expenses) is calculated based on a market report by Tokyo Livable, Inc.



(Note 4) Rent gap ratio= (Market rent – Current rent) / Current rent





17

Fourth Period Acquisitions

Location: 10-3 Udagawa-cho, Shibuya-ku, Tokyo

Land area: 527.65m2

Structure: RC




Construction completion: August 30, 2006


Occupancy rate: 100% (As of May 31, 2007)

Location: 1-8-11 Kita-Shinagawa, Shinagawa-ku, Tokyo

Land area: 2,345.20m2

Structure: SRC




Construction completion: July 3, 1991


Occupancy rate: 99.5% (As of May 31, 2007)

—First property acquired through the Sponsor CompanySHIBUYA EDGESHIBUYA EDGE

—Neighboring a redevelopment site that is part of the remarkable development of the area surrounding Shinagawa Station

daVincidaVinci Shinagawa IIShinagawa II■Overview of Properties





Fourth period NOI yield

¥31,132¥32,500¥32,000

4.4％4.5％4.6％





Fourth period NOI yield

¥16,082¥21,000¥21,000

30.5％5.0％5.6％Assumed NOI yield based

on market report (Note 4)



(Note 3) Rent gap ratio = (Market rent – Current rent) / Current rent(Note 4) Assumed NOI Yield (before property repair expenses) is

calculated based on a market report by Tokyo Livable, Inc.



(Note 3) Rent gap ratio = (Market rent – Current rent) / Current rent(Note 4) Assumed NOI Yield (before property repair expenses) is

calculated based on a market report by Tokyo Livable, Inc.

Assumed NOI yield based on market report (Note 4)

18

■Overview of Four Properties Sold in Third Period

daVinci Shimbashi 620 daVinci Koishikawa daVinci Okayama daVinci Hakata

Property Disposition in the Third and Fourth Fiscal Periods

daVinci Kayabacho 376 daVinci Shin-Yokohama 131daVinci Nishi-Gotanda IdaVinci Yushima

■Overview of Four Properties Sold in Fourth Period

Floor area: 962.66m2

Acquisition price: ¥660 million Selling price: ¥790 million Gain on sale: ¥121 million Capital gain: 19.6%


Acquisition price: ¥1,460 million Selling price: ¥1,500 million Gain on sale: ¥38 million Capital gain: 2.7%













Acquisition price: ¥5,906 million

(Note) Capital gain = (Selling price – Acquisition price) / Acquisition price

Selling price: ¥6,980 million

Gain on sales: ¥1,074 million

Capital gain: 18.2％

Third Period TotalThird Period Total

Acquisition price: ¥6,090 million

Selling price: ¥8,271 million

Gain on sales: ¥2,181 million

Capital gain: 35.8％

Fourth Period TotalFourth Period Total

* As of July 23, 2007

19

Fourth Fiscal Period EPS Interest Sensitivity

0.00% 0.15% 0.30% 0.45% 0.60% 0.75%0% 121 0 -121 -243 -365 -487

Rate of rent 1% 388 267 145 23 -98 -220increase 2% 655 534 412 290 168 46

3% 922 801 679 557 435 313(six-month period) 4% 1,190 1,068 946 824 702 580

5% 1,457 1,335 1,213 1,091 969 847

Impact on dividend per unit Interest rate spread (annual rate)

0.00% 0.15% 0.30% 0.45% 0.60% 0.75%0% 19,838 19,716 19,594 19,472 19,350 19,228

Rate of rent 1% 20,105 19,983 19,861 19,739 19,617 19,495increase 2% 20,372 20,250 20,128 20,006 19,884 19,762

3% 20,639 20,517 20,395 20,273 20,151 20,029(six-month period) 4% 20,906 20,784 20,662 20,540 20,418 20,296

5% 21,173 21,051 20,929 20,807 20,685 20,563

Forecast dividend per unit Interest rate spread (annual rate)

The above impact on dividend per unit is factored in to recalculate the forecast dividend based on the publicly announced amount of ¥19,716

A 0.15% interest rate increase is factored in on the basis of current short-term variable interest rate levels

(Unit: Yen)

Since interest rate revisions are planned during the fourth fiscal period on August 31, interest cost has been calculated over a three-month period

*The above sensitivity analysis is based solely on the forecast dividend per unit and is provided for simulation purposes only. Accordingly, there is no guarantee of the accuracy of predicted amounts.

The dividend per unit is based on the assumption that a total of 205,000 units have been issued

Sensitivity Analysis

(Unit: Yen)

20

Portfolio Performance Summary (Third Fiscal Period Results by Property)

(*1) Figures in the statements of income above are rounded down to the nearest 1,000 yen, (excluding other income and property-related taxes).(*2) Other income does not include restoration and renovation work or deferred security deposits.(*3) Property-related taxes for properties acquired in 2006 are calculated according to the number of operating days in the third fiscal period, which overlaps with 2007.(*4) The NOI yield in ③ NOI is calculated by dividing annualized NOI by total acquisition price.

(Note) The above third period-end data does not include investment assets sold during the period, namely daVinci Shinbashi 620, daVinci Koishikawa, daVinci Okayama, and daVinci Hakata.

daVinciGinza

daVinciGinzaAnnex

daVinciKamiyacho

daVinciShibaura

daVinciMinamiAoyama

daVinciMita

daVinciSarugakucho

daVinci AHamamatsucho

daVinciJingumae

daVinciShibadaimon

daVinciMisakicho

daVinciShinbashi

510

daVinciKaya-

bacho 376

BPSSquare

daVinciTsukiji

daVinciTsukiji 616

ShuwaTsuki-

shima Bldg.

14,100 3,050 12,000 8,265 4,550 3,250 3,000 2,865 2,800 2,578 2,346 2,080 2,020 1,560 1,240 2,440 7,84014,083 3,037 12,080 8,261 4,540 3,221 3,024 2,849 2,803 2,558 2,341 2,094 2,078 1,535 1,282 2,413 7,75417,100 3,140 14,000 9,135 4,990 4,220 3,240 3,158 2,890 2,757 2,436 2,350 2,220 1,650 1,420 2,440 7,840

99.5 98.2 100 97.6 100 100 100 100 100 100 100 95.2 100 100 100 100 10012.5 12.7 13.8 14.5 13.8 9.5 14.6 14.6 13.9 12.5 13.1 13.4 14.8 12.5 14.0 13.0 14.4182 182 182 182 182 182 182 182 182 182 182 182 182 182 182 182 182

① Operating revenues (thousands of yen) 427,071 89,226 341,412 311,566 147,339 133,613 122,712 144,253 89,481 96,033 85,799 81,484 70,898 54,900 54,417 86,626 256,812Revenues from property leasing 418,123 89,226 341,412 309,239 147,339 133,613 122,712 144,119 89,481 96,033 85,799 81,484 70,898 54,900 54,417 86,626 256,812Other income (*2) 8,948 0 0 2,327 0 0 0 133 0 0 0 0 0 0 0 0 0

94,318 19,755 78,931 58,952 25,111 32,637 26,381 58,825 20,273 18,893 16,074 20,073 11,993 6,203 11,137 20,998 46,242Property management fees 25,976 3,938 17,544 11,821 4,212 9,105 5,387 9,329 4,086 5,691 2,880 7,335 2,530 0 2,536 4,937 8,383Utilities 22,783 6,831 14,313 18,599 7,239 9,917 8,391 8,529 7,550 5,995 6,280 3,798 3,657 0 3,311 6,693 20,759PM fees 10,103 1,589 13,960 9,082 2,646 2,965 1,821 2,522 2,546 1,443 1,285 3,316 1,280 790 1,293 1,959 3,820Property-related taxes (*3) 22,552 7,203 32,566 18,875 10,814 10,321 3,031 8,784 5,974 5,599 5,440 5,449 4,421 5,260 3,904 7,202 12,842Insurance 838 192 546 574 199 327 195 260 109 164 187 172 104 152 91 205 436Other 12,064 0 0 0 0 0 7,553 29,400 6 0 0 0 0 0 0 0 0

332,753 69,470 262,481 252,613 122,227 100,975 96,331 85,427 69,207 77,140 69,724 61,411 58,905 48,696 43,279 65,627 210,5704.7% 4.6% 4.4% 6.1% 5.4% 6.2% 6.4% 6.0% 5.0% 6.0% 6.0% 5.9% 5.8% 6.3% 7.0% 5.4% 5.4%

Repair expenses (thousands of yen) 13,727 615 7,390 9,705 495 4,049 4,016 8,415 5,746 3,446 2,616 228 637 651 833 21,381 2,834NOI yield before repair expenses 0.2% 0.0% 0.1% 0.2% 0.0% 0.2% 0.3% 0.6% 0.4% 0.3% 0.2% 0.0% 0.1% 0.1% 0.1% 1.8% 0.1%NOI yield after repair expenses 4.5% 4.5% 4.3% 5.9% 5.4% 6.0% 6.2% 5.4% 4.5% 5.7% 5.7% 5.9% 5.8% 6.2% 6.9% 3.6% 5.3%Depreciation and amortization (thousands of yen) 64,691 16,464 43,126 30,106 18,206 21,860 13,315 14,364 9,344 14,384 13,825 3,650 6,376 17,519 9,779 25,010 65,000Restoration and renovation work (thousands of yen) 6,350 0 4,600 531 0 2,800 0 1,100 0 0 0 0 0 0 0 0 0Deferred security deposits (thousands of yen) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

NihonbashiMS Bldg.

AtlancticBldg.

Shibuya SSBldg.

daVinciNihonbashi

Honcho

daVinciGinza 1-chome

daVinciKyobashi

Sunline 7Bldg.

daVinciOnarimon

daVinciKinshicho

daVinciHigashi-

Ikebukuro

daVinciYushima

daVinciNishi-

Gotanda I

daVinciShin-

Yokohama214

daVinciShin-

Yokohama131

BennexS-3

BelieveOmori

SapporoChiyoda

Bldg.

Total of 34Properties

2,520 1,600 3,930 7,420 4,620 3,460 2,680 13,860 3,653 2,958 1,080 1,640 2,180 1,350 4,950 3,160 1,384 138,4292,536 1,607 3,934 7,419 4,654 3,471 2,699 13,927 3,589 2,921 1,102 1,634 2,116 1,330 4,892 3,172 1,367 138,3423,200 1,860 4,480 9,090 5,090 3,750 3,000 16,200 3,811 3,386 1,210 1,790 2,730 1,510 5,700 3,440 1,584 156,817

100 100 97.6 100 87.3 100 100 100 100 100 100 100 100 98.1 97.3 100 98.6 99.011.8 13.7 14.7 12.0 13.6 13.4 14.1 14.8 14.9 13.9 14.7 10.2 13.0 14.6 12.9 12.8 10.5 11.0182 182 182 182 182 182 182 182 182 182 182 182 182 182 182 182 182 182

① Operating revenues (thousands of yen) 96,381 61,998 136,165 246,422 149,609 118,510 102,045 447,004 165,766 143,547 45,595 73,356 110,947 89,344 223,299 131,422 89,509 5,024,577Revenues from property leasing 96,381 61,635 133,767 246,422 145,675 118,510 102,045 447,004 165,766 143,470 45,595 73,356 110,947 88,732 221,379 131,422 89,509 5,003,865Other income (*2) 0 362 2,398 0 3,933 0 0 0 0 77 0 0 0 611 1,920 0 0 20,712

18,789 11,573 31,018 37,247 28,366 19,671 25,055 74,605 43,730 38,871 11,063 16,636 22,057 26,299 54,765 29,975 29,361 1,085,895Property management fees 4,218 2,625 6,862 6,094 9,049 4,645 5,505 17,915 15,053 10,139 3,030 4,776 5,163 6,335 16,406 9,209 11,342 264,068Utilities 5,817 2,397 10,552 15,589 7,704 6,755 5,067 18,859 12,415 15,992 3,135 4,600 7,653 7,896 17,682 9,610 9,147 315,533PM fees 1,788 1,562 3,386 3,697 4,515 1,781 1,671 5,606 2,632 2,150 1,200 1,283 1,677 2,512 3,740 2,077 1,741 105,456Property-related taxes (*3) 6,754 4,864 9,957 11,413 6,796 6,288 12,632 31,559 13,280 10,239 3,593 5,782 7,246 9,200 16,366 8,763 6,625 341,607Insurance 210 123 259 440 226 199 177 664 348 350 104 193 316 354 569 314 505 10,119Other 0 0 0 11 74 0 0 0 0 0 0 0 0 0 0 0 0 49,109

77,592 50,425 105,147 209,175 121,242 98,839 76,989 372,399 122,036 104,675 34,531 56,719 88,889 63,044 168,533 101,446 60,147 3,938,6826.2% 6.3% 5.4% 5.7% 5.3% 5.7% 5.8% 5.4% 6.7% 7.1% 6.4% 6.9% 8.2% 9.4% 6.8% 6.4% 8.7% 5.7%

Repair expenses (thousands of yen) 1,602 2,726 4,731 0 11,912 1,229 1,288 2,160 1,813 2,341 5 1,593 5,125 2,996 3,899 7,938 1,545 139,698NOI yield before repair expenses 0.1% 0.3% 0.2% 0.0% 0.5% 0.1% 0.1% 0.0% 0.1% 0.2% 0.0% 0.2% 0.5% 0.4% 0.2% 0.5% 0.2% 0.2%NOI yield after repair expenses 6.0% 6.0% 5.1% 5.7% 4.7% 5.7% 5.7% 5.4% 6.6% 6.9% 6.4% 6.7% 7.7% 8.9% 6.7% 5.9% 8.5% 5.5%Depreciation and amortization (thousands of yen) 15,610 7,842 15,891 28,547 24,210 15,775 11,521 28,762 37,070 25,168 8,857 15,371 33,694 20,111 56,297 21,444 18,725 771,928Restoration and renovation work (thousands of yen) 0 1,599 2,680 0 8,950 0 0 0 0 0 0 0 0 800 0 3,800 0 33,210Deferred security deposits (thousands of yen) 0 42 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 42

Building

Acquisition price (millions of yen)Book price (millions of yen)

Appraisal value (millions of yen)Occupancy rate (%)

PML

Ope

ratin

g in

com

e fr

om p

rope

rtyle

asin

g ac

tiviti

es (*

1)

#days worked (for 3rd FP)

② Total property-related expenses (thousands of yen)

③ NOI（=①-②）

NOI Yield（*4）

(Reference)

Building

Acquisition price (millions of yen)Book price (millions of yen)

Appraisal value (millions of yen)Occupancy rate (%)

PML

NOI Yield（*4）

(Reference)

Ope

ratin

g in

com

e fr

om p

rope

rtyle

asin

g ac

tiviti

es (*

1)

#days worked (for 3rd FP)

② Total property-related expenses (thousands of yen)

③ NOI（=①-②）

21

daVinci NihonbashiHoncho

daVinci Kyobashi daVinci Ginza 1-chome Sunline 7 Bldg. Believe Omori daVinci Ginza daVinci Ginza Annex

daVinci Kamiyacho daVinci Shibaura daVinci Minami Aoyama daVinci Mita daVinci Sarugakucho daVinci A Hamamatsucho daVinci Jingumae

daVinci Shibadaimon daVinci Misakicho daVinci Shimbashi 510 daVinci Kayabacho 376 daVinci Onarimon BPS Square daVinci Tsukiji

Portfolio Property Photographs (1)

22

daVinci Tsukiji 616 Shuwa Tsukishima Bldg. Nihonbashi MS Bldg. Atlantic Bldg. Shibuya SS Bldg. daVinci Kinshicho daVinci Higashi-Ikebukuro

daVinci Yushima daVinci Nishi-Gotanda I daVinci Shin-Yokohama 214

daVinci Shin-Yokohama 131

Bennex S-3 Sapporo Chiyoda Bldg.

Portfolio Property Photographs (2)

23

Sapporo Chiyoda Bldg.

投資可能エリア・地方主要都市

Possible Areas for Investment:

Major Regional Cities

Map of Portfolio

daVinci MisakichodaVinci Sarugakucho

Nihonbashi MS Bldg.

daVinci Kayabacho 376

daVinci Tsukiji 616daVinci Ginza

ShuwaTsukishima Bldg.

daVinci Shibaura

daVinci Mita

daVinci Shibadaimon

Atlantic Bldg.daVinci A Hamamatsucho

daVinci KamiyachodaVinci

Shimbashi510

daVinci Ginza Annex

daVinci TsukijiBPS Square

daVinci Jingumae

daVinci Minami Aoyama

Shibuya SS Bldg.

Main Target Area for Investment: Five Central Wards of Tokyo

daVinci Nihonbashi Honcho

daVinci Kyobashi

daVinci Ginza 1-chomeSunline 7 Bldg.

daVinci Onarimon

Shibuya EDGE

daVinci Shinagawa Ⅱ

Shinjuku Maynds Tower

Shinjuku Ward

Chiyoda Ward

Shibuya Station

Minato Ward

Tokyo

Shibuya Ward

Shinagawa Station

Chuo Ward

Tokyo Station

YokosukaLine/SobuExpress Line

Chuo Line

Saikyo Line

Yamanote Line

Shinjuku Station

daVinci Higashi-Ikebukuro

daVinci Yushima

daVinci Kinshicho

Da Vinci Nishi-Gotanda Ⅰ

Bennex S-3daVinci Shin-Yokohama 214

daVinci Shin-Yokohama 131

Believe Omori

Target Area for Investment:

Tokyo Metropolitan Area

24

■Organization Chart

Organization of the Asset Management Company

■Company Overview

Company Name: daVinci Select Kabushiki Gaisha

Address: 6-2-1 Ginza, Chuo-ku, Tokyo

Established: October 21, 2004

Capitalization: 200 million yen

Representative Director: Takashi Abe

Directors: 7 (4 executive, 2 non-executive, 1 auditor)

Employees: 20(Including 3 concurrent directors, as of July 31, 2007)

Investment trust management business transaction authorization: Office of the Prime Minister (No. 45)

Real estate brokerage license: Governor of Tokyo (1) No. 3920Discretionary transaction agent approval: Ministry of Land, Infrastructure and Transport (No. 34)

Representative Director

Director

Director

Director

Outside Director

Outside Director

Auditor

Board of Directors and Auditors

・Determining and revising practical guidelines

・Determining and changing annual and mid-term management plans and related documents

IR & Planning Team

Asset Management Team

Finance & Accounting Team

Research & Acquisitions Team

Personnel & General Affairs Team

Board of Directors

Shareholders’ Meeting

Auditors

Compliance Committee

Investment Committee

Representative DirectorCompliance Officer

Finance DepartmentInvestment Management Department

General Administrative Department

・Disclosure-related matters

・Investment Corporation IR

・Real estate market surveys and analysis

・Matters related to Investment Corporation unitholders （excluding the Unitholders’Meeting）

・Determining and revising practical guidelines

・Matters related to acquisition and disposal of assets

・Surveys and analysis of real estate and commercial industry trends

・Matters related to asset procurement for the Investment Corporation

・Determining and revising guidelines

・Matters related to the Investment Corporation’s performance forecasts, balance sheets, and disclosure

・Administration of Shareholders’ Meetings and Board of Officer meetings of the Investment Corporation, the General Meeting of Shareholders, Board of Directors meetings, and committee meetings

・Compliance Officer support

・Matters related to personnel and general affairs

IR & Planning Department

Internal Control Office

Takashi Abe

Jinmoo Kim （Administrative Manager）

Kazuhiro Tadano （Chief Financial Officer）

Kotaro Matsuoka （Chief Investment Officer）

Masayoshi Ogawa （CPA）

Sigeru Takagi （Attorney of Law）

Koichi Yokoyama （CPA）

Documents

daVinci Select K.K. Business Results for the Third Fiscal Period, … · Third period ended May 31, 2007 17 acquisitions at time of IPO** 5.2% 5.3% 5.5% 11 acquisitions in first period