Q.Which assets you will invest in?

A.Please refer to the Investment Policy.

Q.What are the reasons for using integrated funds?

A.It is important to diversify risks to secure steady growth in assets under management and stable earnings over the medium-to-long term. Real estate by its nature is an investment instrument that varies depending on how it is used. We therefore believe that diversified investment in multiple uses will better reduce the risk of any downturn in future profitability compared with concentrated investment in properties for a single use. We also believe that, if investment is made in real estate for multiple uses, the opportunity to acquire real estate will grow, leading to a steady expansion of asset size.
Based on the above, OJR believes that diversified funds are appropriate for achieving stable distribution and for increasing asset value over the medium to long terms, and invests in diverse properties such as offices, distribution facilities, commercial retail properties, hotels and others.

Q.How do you deal with earthquake risk?

A.OJR conducts an analysis of earthquake risk at the time of the acquisition of a property.
In addition, we take measures such as purchasing earthquake insurance for properties with high PML (20% or more). The PML of the total portfolio of OJR was 7.4% as of the end of February 2010.

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Q.How you will achieve external growth?

A.Please refer to the Growth Strategy.

Q.What is your target asset size?

A.OJR has aimed for a medium-to-long term target for asset size of ¥400 billion. OJR will invest in pru selected blue-chip properties and has therefore not set a date for achieving this target. Asset size was ¥296 billion as of April 16, 2010.

Q.How will you achieve internal growth?

A.Please refer to the Growth Strategy.

Q.What is your financial strategy?

A.Please refer to the Growth Strategy.

Q.What progress have you made with the acquisition of ratings?

A.Refer to Ratings and Bonds.

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Q.Please tell us about the asset management company.

A.The asset management company of OJR is ORIX Asset Management Corporation. ORIX Asset Management Corporation was established in September 2000 to manage the assets of real estate investment trust as a wholly owned subsidiary of ORIX Corporation. ORIX Asset Management Corporation manages assets for OJR using the accumulated expertise of the ORIX Group in the financial and real estate sectors. Refer to ORIX Asset Management for details of ORIX Asset Management Corporation.

Q.Please describe the compliance system of the asset management company.

A. The asset management company operates in compliance with Japan’s Financial Instruments and Exchange Law (hereafter, the “Financial Instruments Law”), Law Concerning Investment Trust and Investment Corporation (hereafter the “Investment Trust Law”), Building Lots and Buildings Transaction Business Law, and other related legislation, as well as its own articles of incorporation, the regulations of The Investment Trusts Association, Japan, and the asset management contracts and real estate management contracts into which it has entered. Further, the company ensures the fulfillment of compliant operations based on internal rules, general social ethics, and common practices and standards. Its Compliance Manual, which specifies such internal rules, outlines the meaning and importance of compliance issues, defines basic policies on compliant practices, and also specifies the role of each of the asset management company’s organizations in the practice of compliance, along with procedures for the compliant conduct and practice of officers and staff. In this way, the asset management company strives for thoroughness in compliance.
More specifically, the asset management company has established the Risk Management and Compliance Department to handle risk management and compliance issues and initiatives, which are overseen by an appointed Risk Management and Compliance Department Officer. In addition, the Risk Management and Compliance Department Officer and Risk Management and Compliance Committee, which is chaired by the President, meet regularly to deliberate on important matters pertaining to ensuring compliance, including acquisitions and sales of assets and other related transactions with affiliated companies.
The Risk Management and Compliance Department also hosts various activities such as a monthly training session for officers and staff whose job responsibilities require an understanding of the Financial Instruments Law, Investment Trust Law, Building Lots and Buildings Transaction Business Law and other real estate transaction related legislation. In this way, the asset management company not only works to raise internal awareness of compliance, but also strives to maintain a vigilant compliance system. (As of November 25, 2009)

Q.How have you dealt with transactions with related-parties?

A.Related-parties, affiliated companies and other such entities of the asset management company are defined as “affiliated companies” under an internally established Regulation Concerning Transactions with Affiliated Companies. With respect to conflict of interest issues, certain transactions with affiliated companies are reviewed and approved by the asset management company’s Risk Management and Compliance Committee and by meetings of the Board of Directors of OAM and OJR. Further, the asset management company continually strives for the highest level of transparency through the timely disclosure of fixed-amount transactions via press releases and other announcements. (As of May 26, 2010)

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Q.What is your securities code?

A.It is 8954.

Q.What are the distributions for the term under review?

A.Please refer to the Information on Distributions.

Q.What is the schedule for the announcement of financial results and the payment of distributions.

A.Please refer to the IR Calendar.

Q.What is the schedule for the general meeting of unitholders?

A.Please refer to the IR Calendar.