Daiwa House Residential Investment : (Reference)JCR News Release

JCR News Release

14-D-0835

January 16, 2015

JCR Assigned AA- Rating to Bonds of Daiwa House Residential Investment

Japan Credit Rating Agency, Ltd. (JCR) announces the following credit rating.

Rationale

Daiwa House Residential Investment Corporation (DHI) is a J-REIT (Japanese real estate investment

trust) primarily investing in residential properties (rental housing). Its asset management company, Daiwa House Asset Management Co., Ltd., is owned by DAIWA HOUSE INDUSTRY CO., LTD. DHI's current portfolio consists of 136 properties with the total acquisition price of 237.6 billion yen and has been performing stably thanks to collaboration with the Daiwa House Group. JCR announced on December 10, 2014 the affirmation of the AA- long-term issuer rating on DHI with Stable outlook. Since then there have been no major changes in JCR's view on DHI's creditworthiness. The funds to be raised by the bond issue will be appropriated for the redemption of existing rehabilitation obligations, i.e. borrowings and investment corporation bonds, and the bond issue will not have any particular impact on the financial structure.

Rating

Shigeo Sugiyama, Takanori Akiyama

Issuer: Daiwa House Residential Investment Corporation (security code: 8984)

Issue Amount (bn) Issue Date Due Date Coupon Rating

bonds no.2 Y3 Jan. 22, 2015 Jan. 22, 2021 0.350% AA- bonds no.3 Y3 Jan. 22, 2015 Jan. 22, 2025 0.670% AA-

Negative Pledge: Covers other domestic unsecured investment corporation bonds DHI issued or may issue in the future, except those with a change of security status clause.

Other Covenants: Not Attached Bond Administrator: Not Appointed Shelf Registration:

Maximum: Y100 billion

Valid: two years effective from December 20, 2013

Long-term Issuer Rating: AA- Outlook: Stable

Rating Assignment Date: January 16, 2015

The criteria used for identifying matters which serve as assumptions for the assessment of the credit status, and the criteria used for setting of grades indicating the results of the assessments of the credit status are published as "Types of Credit Ratings and Definitions of Rating Symbols" (January 6, 2014) in Rating Policies on JCR's website (http://www.jcr.co.jp/english/).

Outline of methodology for determination of the credit rating is shown as "J-REIT" (June 2, 2014) in Structured Finance, Rating Methodology on JCR's website (http://www.jcr.co.jp/english/).

Japan Credit Rating Agency, Ltd.

Jiji Press Building, 5-15-8 Ginza, Chuo-ku, Tokyo 104-0061, Japan

Tel. [phone], Fax. [phone]

Information herein has been obtained by JCR from the issuers and other sources believed to be accurate and reliab le. However, because of the possibility of human or mechanical error as well as other factors, JCR makes no representation or warranty, express or implied, as to accuracy, results, adequacy, timeliness, completeness or merchantability, or fitness for any particular purpose, with respect to any such information, and is not responsible for any errors or omissions, or for results obtained from the use of such information. Under no circumstances will JCR be liable for any special, indirect, incidental or consequential damages of any kind caused by the use of any such information, including but not limited to, lost opportunity or lost money, whether in contract, tort, strict liability or otherwise, and whether such damages are foreseeable or unforeseeable. JCR's ratings and credit assessments are statements of JCR's current and comprehensive opinion regard ing redemption possibility, etc. of financial obligations assumed by the issuers or financial pro ducts, and not statements of opinion regarding any risk other than credit risk, such as market liquidity ris k or price fluctuation risk. JCR's ratings and credit assessments are statements of opinion, and not statements of fact as to credit risk decisions or recommendations regarding decisions to purchase, sell or hold any securities such as individual bonds or commercial paper. The ratings and credit assessments may be changed, suspended or withdrawn as a result of changes in or unavailability of information as well as other factors. JCR retains all rights pertaining to this document, including JCR's rating data. Any reproduction, adaptation, alteration, etc. of this document, including such rating data, is prohibited, whether or not wholly or partly, without prior consent of JCR.
JCR is registered as a "Nationally Recognized Statistical Rating Organ ization" with the U.S. Securities and Exchange Commission with respect to the following four classes. (1) Financia l institutions, brokers and dealers, (2) Insurance Companies, (3) Corporate Issuers, (4) Issuers of government securities, municipal securities and foreign government securities.

Copyright © Japan Credit Rating Agency, Ltd. All rights reserved.

1 / 1

http://www.jcr.co.jp