15th Fiscal Period(Ended May 31, 2014)

Analyst Meeting Presentation Material

PROUD FLAT Kawaramachi

PROUD FLAT Shinotsuka

PROUD FLAT Tsurumi II

July 17, 2014
PROUD FLAT Kamata II

Contents
1. 15th FP Performance・15th FP Financial Statement Overview
・Highlights of the 15th Fiscal Period

4. Characteristics of NRF
23

2. Performance and Future Management Policy

・ Continuing Implementation of Strategy for

5

Replacing Properties

・ Portfolio Occupancy Rate・ Changes in Leased Units and Rent Level
・ Changes in Rent per Tsubo: Map by Area ①・ Changes in Rent per Tsubo: Map by Area ②・ Unification of Property Names and Merger of

6
7
8
9
10

Property Management Companies

・ Financial Status
・ Management Strategies

11・ Characteristics of NRF
・ Rental Housing Investment Characteristics
・ Priority Investment in Key Segments
・ Rental Housing Investment Characteristics
・ Utilization of Diverse Sourcing Routes
・ Portfolio Status
・ Changes in Revenue
・ Portfolio Map（Greater Tokyo Area）
・ Portfolio Map（Other Areas）
・ Portfolio
・ Changes in Financial Performance・ Interest-bearing Debts
・ Fund Profile
・ Asset Management Company Overview

23
24
25
26
27
28
29
30
31
32～36
37
38
39
40

12

APPENDIX
3. Details of the Financial Results

・ Income statement
・ Balance Sheet・ Forecasts for the 16th Fiscal Period
・ Changes in Asset Size・ Unitholders
・ Appraisal Value Status
・ Changes in Investment Unit Price and CashDistribution

15
16
17
18
19
20
21

July 17, 2014

15th FP Performance

PROUD FLAT Kamata II1

15th FP Financial Statement Overview
Financial Statement Overview
14th Fiscal Period(ended Nov. 30, 2013)

15th FP Forecasts(ending May 31, 2014)

Difference(previous period)

Operating Revenues¥5,406 million¥5,594 million

＋ 3.5

％

Operating Profits¥2,558 million¥2,513 million

- 1.7

％

Net Income¥1,965 million¥1,955 million

- 0.5

％

¥12,221¥12,161- 0.5％

16th FP Forecasts(ending Nov. 30, 2014)

Difference to15th FP Results(Forecast)¥5,406 million

- 3.3

％

¥2,382 million

- 5.2

％

¥1,825 million

- 6.7

％

¥11,600- 4.6％(Forecast)(Forecast)(Forecast)

Cash Distribution Per Unit

(Forecast Announced in Jan. 2014: ¥12,050/unit)

Difference in Cash Distribution(円/口)（yen/unit)+ ¥492

13,000- ¥345- ¥246¥12,221
12,00011,000+ ¥40
・ Rent and Common–area Fees
- ¥ 51・ PROUD FLAT
Kamioooka- ¥ 296

・ Key Money and
Renewal Fees
+ ¥ 304

・ PRIME URBAN
Nishi Waseda- ¥ 49・ Expenses on
Commission Fees,etc.
- ¥ 209

10,000

9,000

8,000

・ Repair andMaintenance- ¥ 315・Other- ¥ 53・ 4th PO acquisition
properties full-period
contribution ※2.
+ ¥ 816¥12,161- ¥263+ ¥125- ¥381- ¥291・ Rent and Common–area Fees
- ¥ 32・ Periodic revenue- ¥ 164・ Consumption tax
increase- ¥ 110・ Disposition revenue
Difference(previous period)- ¥ 82 ※（）※15FP Disposition
revenue¥ 232

・ Other+ ¥ 150・ Key Money and
Renewal Fees
- ¥ 352

・ PROUD FLAT
Kamioooka+ ¥ 119・ Periodic revenue- ¥ 187

・ Consumption tax
increase- ¥ 166

・ Expenses on
Commission Fees,etc.
+ ¥ 371

・ PRIME URBAN
Nishi Waseda+¥ 6・ Disposition revenue
Difference(previous period)- ¥ 194 ※・ Other+ ¥ 125（

・ Repair andMaintenance+ ¥ 108+ ¥249¥11,600(Forecast)・ Provision for reserve
for reduction entry+ ¥ 249）※16FP Disposition
revenue¥ 38

・ Tax and publicdues- ¥ 193・Other- ¥ 164

Move-out by sole

14th FP
Move-out by sole
16th FP
15th FP
Provision for reserve
Property
Disposition
Disposition
Property
第14期分配金
保有物件
一棟貸テナント
物件売却
その他
第15期分配金
保有物件
一棟貸
物件売却
その他
圧縮積立金
第16期分配金
Other
Other
for reduction entry
tenantCash Distribution
tenantCash Distribution
Cash Distribution（2013年11月期）
退去（2014年5月期）
リテナント（2014年11月期）※1. Cash distribution per unit for the 15th fiscal period (ending May 2014) shown in the chart is the forecast as of July 15, 2014. Actual figures may change due to the acquisition or sales of properties, changes in real estate markets, and otherconditions surrounding NRF. NRF does not guarantee the cash distribution per unit predicted in this forecast.
※2. 4th PO acquisition properties refer to “URBAN STAGE Ebisu,” “URBAN STAGE Meguro Aobadai,” “URBAN STAGE Gakugei Daigaku,” “URBAN STAGE Nihonbashi Hamacho,” “URBAN STAGE Kagurazaka,” “URBAN STAGE Ikebukuro” and“URBAN STAGE Sakaisuji Honmachi” that were acquired in September 2014.

2

Highlights of the 15th Fiscal Period
Acquisition

Management

 Continuing strategy for replacing properties

Finance Refinancing approx. ¥9.2 billion

 Maintain high occupancy rate（％）

Total Portfolio

100

Properties disposition

95.7

・ Disposition Price ： ¥1,445 million
：

96.3

97.3

96.6

（

20.2 years

140
14

90

・ Building Age：

26.1 years

85

End-14th FP : 96.2％ → End-15th FP : 95.8％

URBAN STAGE Minami Gyotoku IV

Feb.

Mar.

Apr.

May

：

21.2 years[Portfolio at May 31, 2014 (153 properties)]
Asset Size：

¥160.24 billion

Portfolio NOI Yield

：

5.2 %

Building Age：

10.4 years

100
10

6
60
4
40

 Unification of Property Names

2200

Properties planned/developed by companies
other than Nomura Real Estate Development＜Age of Building: Approx. 1 year or less＞

PRIME URBAN
URBAN STAGE

・ Disposition Price ： ¥ 256 million
・ Building Age

1.37％ → 1.27％¥9.2billion

8
80

Jan.

PRIME URBAN
16th

Refinance

120
12

Dec.

・ Disposition Price ： ¥ 230 million

Bonds

160
16

80

URBAN STAGE Machiya

Debts

95.8

95

URBAN STAGE Ikegami

・ Building Age

96.0

Properties planned/developed by companies
other than Nomura Real Estate Development＜Age of Building: Approx.1 year or more＞

Primarily properties planned/
developed by companies
Other than Nomura Real
Estate Development

15th
15th…

17th
17th…

19th
19th…

21th
21st…

23th
23rd…

25th
25th…

27th 29ｔｈ…
29th 31ｔｈ…
31th
27th…

・Elongation/fixation of debt financing
・Diversification of repayment date・Lower interest costs[Period average occupancy rate]（14th FP）

（14th FP）

（15th FP）

Total Portfolio

96.2％ →

96.3％ （＋0.1pt）

Greater Tokyo Area

95.7％ →

95.9％ （＋0.2pt）

Other Areas

97.4％ →

97.0％（- 0.4pt）

Improving Portfolio Quality ＋ Maintain High Occupancy Rate

Weighted Average
Interest Rate
Average Remaining
Duration of Interestbearing Debt

1.17％

（15th FP）

→ 1.16％（-0.01pt）

2.9years → 3.2years （+0.3years）＋ Effective Refinancing

Continuing Stable Cash Distribution※. The building age is as of the point of acquisition or sale of each property.

3Performance and Future Management Policy

PROUD FLAT Kamata II

4

Continuing Implementation of Strategy for Replacing Properties✓ Have been transferring properties, taking building age, merchantability, etc. into consideration,
since the 8th Fiscal Period (transfer of 2 properties (total: 1,670 million yen) in the 15th Fiscal Period)✓ Create acquisition capacity with funds from the transfers
Disposition
15th

・Aging of buildings
・Decrease ofprofitability

16th

URBAN STAGE Ikegami

URBAN STAGE Machiya

URBAN STAGE Minami Gyotoku IV・ Disposition Price ： ¥1,445 million

・ Disposition Price ： ¥ 230 million

・ Disposition Price ： ¥ 256 million

・ Building Age

・ Building Age

・ Building Age：

20.2 years：

26.1 years：

Portfolio at 15th Fiscal Period End

21.2 years

Cumulative results (as of the date of this document)
Number of
Properties

13

Properties

Average
NOI Yield

Property
Price

6.06

Billion yen

Average
Building Age

Property
Price

19.9

％

※1.

153

Property Price

160.24 Billion yen
5.2 ％10.4 Years

Portfolio NOI Yield
Years ※2.

Average Building Age

Properties

Reinvestment with funds from sale

Acquisition
Cumulative results
Number of
Properties

4.3

Number of
Properties

7 Properties

Average
NOI Yield

7.17Billion yen

Average
Building Age

・Low building age
・High profitability

6.2 ％

※3.

Creation of
4.7 Years ※4. acquisition capacity

Increase of the portfolio’s
quality and profitability※1. The average NOI yield is the NOI in the appraisal report weighted by the acquisition price. ※3. The average NOI yield is weighted by acquisition price.
※2. The average building age is weighted by acquisition price.
※4. The average building age is weighted by acquisition price.
※5. Properties acquired with the 3rd and 4th public offerings are not included as they are not part of the strategy for replacing properties.

5Portfolio Occupancy Rate
✓ Maintained high occupancy rate (average occupancy rate in the 15th fiscal period: 96.3%)✓ Occupancy rate of the 7 properties acquired upon previous year’s public offering increased to 94.7%(+4.7pt from that at time of acquisition)

Portfolio Occupancy Rate

Total Portfolio

Greater Tokyo Area

Other Area

4th PO acquisition properties ※1.

（％）

100

97.5
95.7

96.0

95.4

95.8

95.8

96.2

95.9

95.7

95.8

96.7

96.4

96.7

96.4

96.2

96.1

95.9

96.2

95.7

96.3

96.0

97.3

96.6

95.8

95
94.7

90
90.0

12th Fiscal Period
Average: 95.8%

85

13th Fiscal Period
Average: 96.3%

15th Fiscal Period
Average: 96.3%

14th Fiscal Period
Average: 96.2%

80
Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan
2013

Feb

Mar

Apr

Move-inMove-out
Increase and Decrease Number of Move-ins and Move-outs（cases）

1,500

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan
2014

Feb

Mar

Apr

May

 Average Vacancy Period ※2.
（Days）

80

1,000
500

861

1,179

931

39

5

0
-896

-1,140-926

12th FP End(Nov. 30, 2012)

13th FP End(May 31, 2013)

14th FP End(Nov. 30, 2013)

70

69
-31

-35
-500

1,303

-1,334

60

65

65

60
50

-1,000-1,50040
15th FP End(May 31, 2014)

12th FP End(Nov. 30, 2012)

13th FP End(May 31, 2013)

14th FP End(Nov. 30, 2013)

15th FP End(May 31, 2014)※1. 4th PO acquisition properties refer to “URBAN STAGE Ebisu,” “URBAN STAGE Meguro Aobadai,” “URBAN STAGE Gakugei Daigaku,” “URBAN STAGE Nihonbashi Hamacho,” “URBAN STAGE Kagurazaka,” “URBAN STAGE Ikebukuro” and“URBAN STAGE Sakaisuji Honmachi” that were acquired in September 2014.
※2. The average vacancy period is the average period between the moving out of tenants and the contracting of new tenants.

6

Changes in Leased Units and Rent Level✓ Rate of decline in rent per tsubo largely improved✓ Ratio of increase in rent in new tenant turnover also significantly upRate of Change in Rent per Property ※1.

Performance

（％）

1.0

0.5
0.0
-0.02
-0.26

-0.5

-0.06

-0.40

Rate of decline
improved-1.0-1.5
12th FP End(Nov. 30, 2012)

13th FP End(May 31, 2013)50



Rent Change at Lease Renewals
Increase（％）

100

14th FP End(Nov. 30, 2013)

0.0

97.4

1.4

95.7

0.9

98.0

Flat

Decrease

（％）

0.2

100

94.1

Rent Change Before Move-out and After Move-in
Increase

34.7

34.7

32.6

15.3

19.4

20.8

50

2.6

2.9

12th FP End(Nov. 30, 2012)

13th FP End(May 31, 2013)

1.1
14th FP End(Nov. 30, 2013)

5.7
15th FP End(May 31, 2014)

Flat

Decrease

43.7

Ratio ofincrease up

17.7

49.9

0

15th FP End(May 31, 2014)

45.9

46.6

13th FP End(May 31, 2013)

14th FP End(Nov. 30, 2013)38.6

012th FP End(Nov. 30, 2012)

15th FP End(May 31, 2014)※1. The rate of change of rent per property based on properties owned as of the end of the previous fiscal period is indicated.

7

Changes in Rent per Tsubo: Map by Area ①
 Performance of frequent turnover season in previous year (2013)98

stable turnover season(end of Nov. 2012)

Comparison of rent per tsubo at end of 12th FP

at end of 13th FP frequent turnover season(end of May 2013)

81
87

Legend83

100

Increase

100

Flat / Decrease

18

80

14

44
85

86

55

53

47

28

39

109
49 52
108
110

23

4

17

93

117 119
116 91

70
78

94
96

95

92

79

1
25

32

11

26

6

34
5

36
60

35
59

58

61

Number of properties with increase

62
63

88
64

120 121134 135

12

144

48 / 152 Properties（

31.6％）

13

141 147

Trend90
136 137 13820

145 146

149 150 151

97
118

72

38

33

89

7

15

77

24
37
56

71

75

16

123 124 125 126 127 128 129

122 139 140

40

29

2

57

130 131 132 133 142 143

43

107
50

30

3

111

76
74

31
10

46
27

51

82

8

9

45
66

19

41

48

104

67

54

42

103 105

112 65

84
114

73

69

68

152 153
21

22

115

Rent increasing in southern part of Tokyoand along lines with high convenience,
mainly along the JR Keihin-Tohoku Line.
※1.Please check with page 30-31 for property numbers.
※2.Properties acquired after the end of May 2013 andproperties transferred by the end of May 2014 are
not plotted on the map.
※3.Frequent turnover season refers to a period that includes
January to March when there is active tenant turnover.
Stable turnover season refers to a period that does notinclude the abovementioned period.

8

Changes in Rent per Tsubo: Map by Area ②
 Performance of frequent turnover season in current year (2014)98

stable turnover season(end of Nov. 2013)

Comparison of rent per tsubo at end of 14th FP

at end of 15th FP frequent turnover season(end of May 2014)

81
87

Legend83

100

Increase

100

Flat / Decrease

18

113
80

14

44
85

86

67

114

66

104

48 106

45
46

10

54

55

53

47

43

39

56

49 52
108
110

37

4

97

17

118

72

11
101

116 91

70
78

60
59

61

Number of properties with increase

62
63

88
64

120 12156 / 153 Properties

134 135

12

144

On the previous year13

141 147 14890

145 146152 153
21

79

38

36

58

20

95

92

25

35

136 137 138

94
96

26

6

34

93

117 1191

32

5

149 150 151

7

15

77
23

99

33

89

71

75

16

123 124 125 126 127 128 129

122 139 140

40 10229

24

57

130 131 132 133 142 14330

2
109 100

76

31

107
50

82
74

3

111

19

41
8

9

28

27

51

42

103 105

112 65

84

73

69

68

115

（

36.6％）（＋5.0pt）

Trend

22

Larger number of properties with increase thanthe previous year. In terms of area, expanding
overall, mainly in central Tokyo (Minato Ward,
Meguro Ward, Shinjuku Ward, etc.).
※1.Please check with page 30-31 for property numbers.
※2.Properties transferred by the end of May 2014 are
not plotted on the map.
※3.Frequent turnover season refers to a period that includes
January to March when there is active tenant turnover.
Stable turnover season refers to a period that does notinclude the abovementioned period.

9Unification of Property Names and Merger of Property Management Companies✓ Names of properties planned/developed by companies other than Nomura Real Estate Development will be
unified to “PRIME URBAN”✓ Sponsor group property management companies “Nomura Living Support” and “Nomura Building Management”
merged to form “Nomura Real Estate Partners”

Unification of Property Names

Expected effect in the
futureUnification

PRIME URBAN

PRIME URBAN

Properties planned/developed by companies
other than Nomura Real Estate Development＜Age of Building: Approx. 1 year or less＞

Primarily properties planned/developed by companies
Other than Nomura Real Estate Development

Enhancement ofmarket recognition of
portfolio properties

Major properties

URBAN STAGE
Properties planned/developed by companies
other than Nomura Real Estate Development＜Age of Building: Approx.1 year or more＞

PRIME URBAN Shibaura LOFTPRIME URBAN Yoga

PRIME URBAN Shinkawa

Merger of Sponsor Group Property Management Companies
Merger・ Management of housing, mainly PROUD
・ Property management services forrental condominiums

Real estate management company withcapability to perform overall management
・Building management business・Condominium management business・ Facility management, repair work andproperty management services foroffice buildings, etc.

Property management
utilizing operational know-how
accumulated bycomprehensive real estate
management company

・Building interior business・Property management business … etc.

10

Financial Status
Interest-bearing Debt

Maturity Diversification￥89,750 million

Interest-bearing Debt Total（（billion）

150
15

Bonds

Average Remaining Duration ofInterest-bearing Debt

Debts

3.2 years
1.16 ％

Weighted Average Interest Rate
Long-term Interest-bearing Debt Ratio
Fixed-rate Interest-bearing Debt Ratio

83.9 ％¥10.5¥9.7 ¥9.7 billion
billion billion

100
10

¥7.7
¥6.6 billion
billion¥8.1
billion¥3.9
billion

50
5

¥6.5
¥6.0
billionbillion¥5.4 ¥5.4
billion billion¥2.7
billion¥1.6
billion ¥1.0
billion96.5 ％¥4.5
billion

00

16th
FP

53.4 ％

LTV Level

18th
FP

20th
FP

22nd
FP

24th
FP

26th
FP

28th
FP

30th
FP

Weighted Average Interest Rate and Average
Remaining Duration of Interest-bearing Debt

Credit Rating(%)
2.0
AgencyRating(year)
5.0

Outlook

Weighted Average Interest Rate
Average Remaining Duration of Interest-bearing Debt

JCR

S&P

Long-term issuer rating:AA

StableLong-Term
Corporate Credit Ratings:

A

StableShort-Term
Corporate Credit Ratings:

1.5
1.47

1.28

1.27

1.24

1.0

1.17

A-1

3.0

3.2

0.5

*Investment Corporation Bonds are included in the “Interest-bearing Debt.”*Long-term Ratio, when including “long-term loans due within a year” in long-term loans, is 100.0%.
*“Loan Interest Rate Fixed Ratio” includes floating rate loans which have been fixed through interest rate swaps.

1.16（▲0.01）

0.0

2.4

2.6

2.7

2.9

11th
FP

12th
FP

13th
FP

14th
FP

（＋0.3）

15th
FP

1.4

10th
FP

1.0

11

Management Strategies
Acquisition

Management

Finance

Real Estate Investment Market

Rental Market

Financial Market

Increasing property transactions

Continuation of tight supply-demand

Promote the continuation of monetary

Downward trend of yields

environment

easing policy Risk of rising interest rates

Improving Portfolio Quality

Enhancing Portfolio Profitability

Improving Borrowing Conditions✓ Maintain high occupancy✓ Continuous implementation ofconservative financial strategy✓ Promoting property
replacement continuously

Shortening of vacancy period
Selling properties that are aged, or

Early leasing up of property vacated by solewhose profitability is lowered

tenantRetention of favorable relationships

Acquiring properties utilizing acquisition
capacity

Elongation/fixation of debt financing✓ Improving lease conditions
Proactive management considering situations

Control interest costsof each area and property

Maintaining a Stable Level of Cash Distribution

12

Ａ Ｐ Ｐ Ｅ Ｎ Ｄ Ｉ Ｘ

PROUD FLAT Kamata II

13

Details of the Financial Results

PROUD FLAT Kamata II

14

Income statement

Operating Revenue
Real Estate Rental Business Revenues*1

Rental Business Revenues
Other Rental Business Revenues*Reference [15th Fiscal Period]

14th Fiscal Period

15th Fiscal Period

Difference from

From Jun. 1, 2013

From Dec. 1, 2013

Previous Period

To Nov. 30, 2013
Amount(￥000)
5,406,759

To May 31, 2014
Amount(￥000)
5,594,013(14th FP - 15th FP)
Difference
Difference(￥000)(%)
187,2543.5

5,356,185

5,556,649

200,4633.7

5,013,520

5,143,831

130,3112.6

342,665

412,81770,152

20.5

134,455

134,802346

0.3

Incidental Revenue*2

140,643

199,126

58,483

41.6

Other Real Estate Rental Revenues*367,56678,88911,322

16.8

50,57337,364-13,208-26.1

2,848,657

3,080,309

231,652

8.1

Parking Lot Revenue

Real Estate Disposition Revenue
Operating Expense*12,250,171

2,453,509

203,337

9.0

Repair Expenses*4

225,277

300,32575,04733.3

Tax and Public Dues

*5

260,682

263,900

3,218

1.2

Depreciation and Amortization

1,012,451

1,053,355

40,904

4.0

Other Rental Business Expenses

751,760

835,927

84,16711.2

383,288399,676

16,3884.3

215,198

227,124

11,926

5.5

2,558,101

2,513,704-44,397-1.7

Non-Operating Revenues

4,052

4,173

120

3.0

Non-Operating Expenses

596,069

561,381-34,687-5.8

Interest Expenses

465,349464,894

-454

-0.1

Investment Corporation Bond Interest

55,751

56,071319

0.6

74,96840,415-34,553-46.1

Ordinary Income

1,966,085

1,956,496-9,588-0.5

Net Income Before Tax

1,966,085

1,956,496-9,588

-0.5

951

974

22

2.4

1,965,133

1,955,522-9,611

-0.5

67

64

-2

-4.3

Retained Earnings at Fiscal Period End

1,965,201

1,955,587-9,614-0.5

Total Cash Distribution

1,965,136

1,955,488-9,648-0.5

Real Estate Rental Business Expenses

Asset Management Fees
Other Operating Expenses*6

Operating Profits

Other Non-Operating Expenses

Corporate Income Tax, etc.
Net Income
Retained Earnings Brought Forw ard*7

1. Real Estate Rental Business Revenues : ¥3,103,140 thousand(from previous FP :¥-2,874 thousand)::¥79,221 thousand¥103,355 thousand

2. Incidental Revenues
2. Key Money
2. Renewal Fee
3. Other Real Estate Rental Revenues

3．Revenue from reversal of provision for loss on disaster,
cellphone antennae, vending machines, etc.
4. Renovation Expenses
4．Repair Expenses
4．Capital Expenditure
Total

:
:
:

¥300,325 thousand¥95,742 thousand¥396,067 thousand

5. Tax and Public Dues (152 properties at FP End)
5．Subject Property:
5．Excluded Property
:
Total
:

146 properties
7 properties
153 properties

6. Other Operating Expenses
6．Duty Entrustment Fee
6．Directors Fee, etc.

::

¥40,023 thousand¥4,800 thousand

7. Other Non-Operating Expenses
7．Loan Related Expense, etc.

:

¥30,523 thousand(Figures are rounded down to the nearest thousand)15Balance Sheet
Liabilities and Net Assets

Assets14th Fiscal Period
as of Nov. 30, 2013

15th Fiscal Period
as of May 31, 2014

14th Fiscal Period
as of Nov. 30, 2013

15th Fiscal Period
as of May 31, 2014

Amount(￥000)

Amount(￥000)

Amount(￥000)

Amount(￥000)

Current Assets
Cash and Cash Equivalents
Cash and Cash Equivalent in Trust
Other Current Assets

4.6

10,083,755

6.0

6,791,327

4.0

9,400,388

5.6

802,795

0.5

565,0370.3

160,267,808＊

Tangible Fixed Assets

1

Ratio
(%)

7,711,933

117,810

Fixed Assets

Ratio
(%)

0.1
95.4

118,3290.1

157,824,052

94.0

Current Liabilities
Trade Accounts Payable
Long-term Loan Due Within One Year＊

2

Other Accounts Payable

160,228,831

95.4

157,793,123

94.0

Taxes Payable

Ratio
(%)

Ratio
(%)

17,410,010

10.4

15,966,300

9.5

259,5840.2

313,873

0.2

15,950,000

9.5

14,450,000

8.6

342,7140.2

295,373

0.2

753

0.0

51,8930.0

126,536,617

75.3

135,258,525

80.5

Accrued Expenses

129,601

0.1

115,670

0.1

Building

59,364,412

35.3

61,457,903

36.6

Rent Received in Advance722,4070.4

725,084

0.4

Land67,172,205

40.0

73,800,621

43.9

Deposits Payable

4,949

0.0

14,403

0.0

Real Estate in Trust

33,683,356

20.0

22,534,598

13.4

75,373,449

44.9

76,747,569

45.7

Real Estate

Fixed Liabilities

Building in Trust

10,762,391

6.4

7,324,455

4.4

Investment Corporation Bonds＊

2

10,000,000

6.0

10,000,000

6.0Land in Trust

22,920,964

13.6

15,210,142

9.1

Long-term Loans＊

2

63,890,000

38.0

65,300,000

38.9

8,857

0.0

-

-

1,101,348

0.7

1,175,682

0.7

2,058

0.0

1,537

0.0

2,058

0.0

1,537

0.0

Investment and Other Assets

36,9180.0

29,391

0.0

Security Deposits

10,8190.0

10,8790.0

Construction in Progress
Intangible Fixed Assets
Other Intangible Fixed Assets

Long-term Repaid Expenses

26,098Deferred Assets

39,972*0.0

32,702

169,119
70,98273,8009,126
15,2108

0.2

271,886

0.2

92,783,459

55.2

92,713,869

55.2

Unitholders Equity

75,236,255

44.8

75,226,641

44.8

0.0

Unitholders Capital

73,231,053

43.6

73,231,053

43.6

0.0

Retained Earnings

2,005,201

1.2

1,995,587

1.2

75,236,255

44.8

75,226,641

44.8

168,019,715

100.0

167,940,510

100.0

39,9720.0

32,7020.0

100.0

167,940,510

100.0

Total Liabilities and Net Assets(unit : million of yen)
AcqisitionPrice382,100

Total Liabilities

168,019,715

1 Tangible Fixed Asset

Real Estate, etc.
Building
Land
Building in TrustLand in Trust
Construction in Progress

18,512

Security Deposits in Trust

Total Net Assets

Investment Corporation Bond Issuing Expenses

Total Assets

0.0

Security Deposits

Accumulated
Depreciation

11,326
9,524
－
1,801
－
－

(Depreciation for
current FP)

Book value
at FP end

(1,053)
(925)
－
(127)
－
－

157,793
61,45773,8007,324
15,2108*2 Loans (long-term loans due whithin a year are included in the short-term loans)
Balance of interest-bearing debts (millions of yen)

89,750Total asset interest-bearing debt ratio

Short-term loans+bonds＋Long-term loans
total assets

53.4％

Long-term interest-bearing debt ratio

Bonds＋Long-term loans
Short-term loans+bonds＋Long-term loans

83.9％

16

Forecasts for the 16th Fiscal Period
15th FP Forecast
From Dec. 1, 2013
To May 31, 2014
Amount(millions of yen)
Operating Revenue
Real Estate Rental Business Revenues
Real Estate Disposition Revenue
Operating Expense
Real Estate Rental Business Expenses

16th FP Forecast
From Jun. 1, 2014
To Nov. 30, 2014
Amount(millions of yen)

16th FP Forecast

Difference(announced Jul. 2014)Assumptions
Amount(millions of yen)

【Properties】
Number of Properties：：¥159,991 million

PU Musashi Koganei (large-scale renovation)：¥62 million

PU Kachidoki (Water supply pipe rehabilitation)：¥17 million

5,594

5,406

-188

Total Amount of Acquisition Price

5,556

5,400

-156

【Repair Expenses 】

37

6

-31

\396 million for 15th Fiscal Period(\95 million of which is capital expenditure)

3,080

3,024

-56

2,453

2,349

-104

152 properties

Example)Repair Expenses

300

257

-43

Tax and Public Dues

263

292

29

1,053

1,057

4

Asset Management Fees

399

393

-6

Example)PU Musashi Koganei (Entrance renewal)：¥19 million

Other Operating Expenses

227

282

55

US Shinjuku Ochiai (large-scale renovation)：¥22 million

2,513

2,382

-131

Non-Operating Expenses

561

555

-6

：

¥87,910 million

Interest Expenses

520

519

-1

Ordinary Income

1,956

1,826

-130

Interest-Bearing Debt Repayment Due During 16th FP(after Jul. 17, 2014)

Net Income

1,955

1,825

-130

Repayment through loans (Aug. , Sep. 2014)：¥4,730 million

Agreed Repayment (Aug. 2014)：¥90 million

Depreciation and Amortization

Operating Profits

Number of Investment Units Issued(units)160,800

160,800

0

Cash Distribution Per Unit(yen)

12,161

11,600-561

Number of Properties(properties)

153

152

-1

Leasable Floor Area(sqm)

274,346.62

273,811.54

-535

(%)

96.3

95.9

-0.4

Average Occupancy Rate

\374 million for 16th Fiscal Period(\117 million of which is capital expenditure)【Lorns】
Total Interest-bearing Debt
(as of Jul. 17, 2014)* Cash distribution per unit for the 16th fiscal period (ending Nov. 2014) shown in the chart is the forecast as of July 15, 2014. Actual figures may change due to the acquisition or sales of properties,changes in real estate markets, and other conditions surrounding NRF. NRF does not guarantee the cash distribution per unit predicted in this forecast.

17

Changes in Asset Size
✓ Focused investment in properties targeting single and DINKs households✓ The portfolio has grown steadily to approx. 2.4 times the size at the time of listing

Portfolio Overview (15th Fiscal Period End)
160,247

Acquisition Price

274,346.62

Total Leasable Floor Area

millionNumber of Properties㎡

Leasable Units

153

properties

9,149

units

29.9

sqm

Average Leasable

approx.

Average Rent Per Unit

97 thousandapprox.

Floor Area Per Unit

Stable Growth of Portfolio(billions of yen)

180.0
1,800

153 properties

160.0

1,600

140.0

1,400

131 properties¥110.33 billion

120.0

1,200

139 properties
134 properties ¥121.48 billion¥115.93 billion

139 properties¥121.48 billion

143 properties 144 properties¥131.46 billion ¥133.41 billion

143 properties¥132.89 billion

145 properties¥135.04 billion

152 properties ¥150.58 billion¥149.86 billion

152 properties¥150.96 billion

155 properties 153 properties¥161.91 billion ¥160.24 billion

100.0
1,000
97 properties

80.0
800

89 properties¥75.42 billion¥67.03 billion

60.0
600
40.0
400

IPO
¥30,257 million#1 PO¥12,514 million#2 PO¥8,029 million#3 PO¥7,161 million#4 PO¥4,269 million

20.0
200

Greater Tokyo Area: 81.0%
Other Areas: 19.0%

0.00
1st FP End

2nd FP End

3rd FP End

4th FP End

5th FP End

6th FP End

7th FP End

8th FP End

9th FP End

10th FP End

11th FP End

12th FP End

13th FP End

14th FP End

15th FP End*The graph is based on the total acquisition price as of each fiscal period end (rounded down to the nearest 10 million).

18

Unitholders
Changes in Ratio of Units Held by Unitholders（Units）
160,000

160,800units
150,936units
16.4%

120,000

20.4%

12.2%

10.4%

13.4%

19.5%

18.3%

8.4%

6.1%

13.1%

13.1%

Individuals/Others( 29,409 unit

10,180 unitholders )Foreign Corporations, etc.
( 9,826 unit
124 unitholders )13.6%
Domestic Corporation (excluding Financial Institutions)( 21,071 unit
190 unitholders )80,00040,000

58.0%

55.5%

12th FP

13th FP

58.9%

62.5%

14th FP

15th FP

Financial Institutions (including Securities Companies)( 100,494 unit
101 unitholders )0[Financial Institutions]Total

87,600 units

58.0%

83,769 units

55.5%

94,734 units

58.9%

100,494 units

62.5%

Banks

15,222 units

10.1%

15,155 units

10.0%

15,348 units

9.5%

17,616 units

11.0%

Trust Banks

61,213 units

40.6%

56,422 units

37.4%

65,650 units

40.8%

68,606 units

42.7%

2,991 units

2.0%

3,397 units

2.3%

3,627 units

2.3%

3,610 units

2.2%

830 units

0.5%

1,595 units

1.1%

3,801 units

2.4%

4,984 units

3.1%

1,539 units

1.0%

1,401 units

0.9%

1,160 units

0.7%

680 units

0.4%

5,805 units

3.8%

5,799 units

3.8%

5,148 units

3.2%

4,998 units

3.1%

Life Insurance
Companies
Non-Life Insurance
Companies
Securities
Companies, etc.

Other

Top 10 Unitholders
#

Units

Ratio (%)

#

Units

Ratio (%)

1

Japan Trustee Services Bank, Ltd.

Unitholders

45,54028.32

6The Fuji Fire and Marine Insurance Co., Ltd.

Unitholders

3,212

2.00

2

Nomura Real Estate Development Co., Ltd.

15,240

9.48

7

Trust & Custody Services Bank, Ltd.

3,010

1.87

3

The Nomura Trust and Banking Co., Ltd.

8,049

5.01

8

The Joyo Bank, Ltd.

2,502

1.56

4

The Master Trust Bank of Japan, Ltd.

5,076

3.16

9

The Fukui Bank,Ltd.

1,987

1.24

5

Trust & Custody Services Bank, Ltd.

5,036

3.13

10 The Hokuriku Bank, Ltd.

1,867

1.16

91,519

56.91

Total

(Note) The Ratio is calculated as the percentage of Total Number of Owned Investment Units divided by Total Number of Issued Investment Units.

19

Appraisal Value Status
Appraisal Value
14th FP End Appraisal Value (A)*Appraisal Value Details¥154,018 million

15th FP End Appraisal Value (B)¥156,322 million

Difference (B)-(A)+ ¥2,304 million

 Increase 136 properties( 088.9 %) Flat4 properties( 0 2.6 %) Decrease 13 properties( 0 8.5 %)Total

153 properties( 100.0 %)[Reference]
 BPS

：

¥467,827

 NAV per Unit：

¥458,678

Range of Cap Rate and Book-to-Market Ratio
（％）

5.70

Average Cap Rate

5.57

Book-to-Market Ratio

5.55
5.47

5.50

5.46

5.41

5.34

（ - 0.07）

1.20
1.15

5.29

（ - 0.05）

5.30

（x )

5.17

（ - 0.12）

5.10

1.10

1.05
1.00

4.90
4.70
4.50

0.90

0.91

8th FP

9th FP

0.92

0.94

0.95

0.96
（ + 0.01）

0.97

0.99
（ + 0.02）（ + 0.01）

0.95

0.90
0.85

10th FP

11th FP

12th FP

13th FP

14th FP

15th FP*14th FP End Appraisal Value” excludes the appraisal value of 2 property disposed during the 15th FP.

20

Changes in Investment Unit Price and Cash Distribution
Changes in Investment Unit Price
Investment Unit Price (yen)Investment Unit Price

TSE REIT Index

1,000,000

3,000
Mar. 29, 2007
Highest Price:¥979,000

2,700
Mar. 14, 2011
BOJ Announces
Additional Purchase of J-REIT

800,000
Septermber 2008
Lehman Brothers
Bankruptcy

600,000

2,400

Apr. 27, 2012
BOJ Announces
Additional Purchase of J-REIT

Mar. 11, 2011
Great Eastern Japan Earthquake

2,100

Feb. 14, 2012
Enhancement of Monetary Easing

1,800

Oct. 5, 2010
BOJ Announces
Purchase of J-REITs

Nikkei Stock
AverageMar. 10, 2009
Lowest: 7,054.98

1,500

400,000

May 30, 2014
¥570,000
BPS ¥467,827

1,200
900

4th PO¥4.2 billion

1st PO¥12.5 billion

200,000
Jan. 15, 2009
Lowest Price:¥287,600

600

3rd PO¥7.1 billion

2nd PO¥8.0 billion

300

014th FP

2014/04/14

Nov. 3020132014/02/14

2013/12/14

13th FP

2013/10/14

May. 312013

2013/08/14

2013/06/14

12th FP

2013/04/14

Nov. 302012

2013/02/14

2012/12/14

11th FP

2012/10/14

May. 312012

2012/08/14

2012/06/14

2012/04/14

Nov. 3020112012/02/14

10th FP

2011/12/14

9th FP

2011/10/14

May. 312011

2011/08/14

2011/06/14

8th FP

2011/04/14

Nov. 302010

2011/02/14

2010/12/14

7th FP

2010/10/14

May. 312010

2010/08/14

2010/06/14

6th FP

2010/04/14

Nov. 3020092010/02/14

2009/12/14

5th FP

2009/10/14

May. 312009

2009/08/14

2009/06/14

4th FP

2009/04/14

Nov. 302008

2009/02/14

2008/12/14

3rd FP

2008/10/14

May. 312008

2008/08/14

2008/06/14

2nd FP

2008/04/14

Nov. 302007

2008/02/14

2007/12/14

2007/10/14

1st FP

2007/08/14

2007/06/14

2007/04/14

2007/02/14

0Feb. 14 May. 31
2007
2007

May. 312014

15th FP

Changes in Cash Distribution（yen）Stability and Growth of Cash Distribution

20,00016,00014,14414,005

13,910[Forecast]

13,631

12,127

11,046

12,00012,068

11,6748th FP

9th FP

11,77012,302

12,424

12,17012,221

12,161

10th FP

11th FP

12th FP

13th FP

14th FP

15th FP

11,600

8,102
8,000

4,000

0
1st FP

2nd FP

3rd FP

4th FP

5th FP

6th FP

7th FP

16th FP

21

Characteristics of NRF

PROUD FLAT Shirokane Takanawa

PRIME URBAN Naka Meguro

PRIME URBAN Chitose Funabashi

22

Characteristics of NRF
Structure for Generating Stable Profit

Priority Investment in Core Units

Foundation for
Stable Profit
Highly-effective Property Management

Stable Financial Foundation

 Priority Investment in Core Units： Units with rents ¥150,000 or less, and areas under 50sqm

 Highly-effective Property Management： Taking measures for increasing property competitivenessand occupancy rate Stable Financial Foundation： Maintaining conservative financial policy

23

Rental Housing Investment Characteristics✓ Rent index for rental housing is relatively stable compared to other sectors✓ Rent index and occupancy rate of NRF’s properties are stable compared to J-REIT-owned rental housing properties

Changes in Rent Index by Purpose [Nationwide]

Offices

Housing

StoresHotelsWarehouses

130
120
110
100

90
80
1990

1995

2000

2005

2014

2010

Source: Created by NREAM based on the Ministry of Internal Affairs and Communications “Consumer Price Index Annual Report (1990-2013)” and the Bank of Japan “Service Price Index for Companies (1990-2013)”* The line graph shows the index of each year with 1990 set as 100.

Projections on Number of Households → Ongoing demand expected from small households
 Changes in Rent Index

 Changes in Occupancy Rate

[Tokyo’s 23 Wards]

Rental Housing Owned by J-REITs

Properties Owned by NRF

(%)
110

120.0

100.0

102.7

104.0
100.9

100.3

100.6

100.6

100.0

99.7
96.6

100.0

99.0

100.3

99.6

99.0

99.2

96.6

98.3

96.7

99.4

100

[Nationwide]

Properties Owned by NRF

Rental Housing Owned by J-REITs

Average of Properties Owned by NRF 95.4%

96.4
92.8

90.5

90.2

88.8

89.0

80.0

88.2

89.1

89.1

90

Average of Rental Housing Owned by J-REITs 94.5%
60.0

80

40.0
1st FP End(May 31, 2012)

3rd FP End(May 31, 2012)

5th FP End(May 31, 2012)

7th FP End(May 31, 2012)

9th FP End(May 31, 2012)

11th FP End(May 31, 2012)

13th FP End(May 31, 2013)

Source: Created by NREAM based on the Association for Real Estate Securitization (ARES) “ARES Japan Property Index (AJPI).”
Source: Number of rental housing units owned by J-REITs at the end of May 2013 is based on a flash reportand may differ from actual figures updated later.
* Index of each period is calculated with the average rent at the end of May 2007 set as 100.

70
1st FP End
3rd FP End
5th FP End
7th FP End
9th FP End
11th FP End
13th FP End(May 31, 2012) (May 31, 2012) (May 31, 2012) (May 31, 2012) (May 31, 2012) (May 31, 2012) (May 31, 2013)
Source: Created by NREAM based on statistical data provided by ARES.

24

Priority Investment in Key Segments
Investment in the segments with high demand for rental properties
 Changes in Number of Households (“Total ””Singles””DINKs”)

 Relative Frequency Distribution of Number of Households by Income[Greater Tokyo Area](Thousand Households)(％)

16,00014,91815,414

15,253

15,268Peak of Numberof Households

12Singles/
DINKs 160
(158%)

13,157140
Total
Number ofHouseholds(124%) 120

Over 50% of the total
number of households

12,31812,0008

4100

10,000

80

1995

2000

2005

2010

2015

2020

Main target tenant classes⇒Annual Income ¥4 million～¥9 million（ approx. 50% of total household）

180

13,757

14,000

（％）
16

200

15,4152025[Nationwide]

0

2030

Source: Created by NREAM based on the National Institute of Population and Social Security Research (IPSS) “Number of Households by Family Type,
Source: Age (five-year groups), and Sex group.”* The line graph shows changes in number of single or couple-only households and total number of households with 1995 set as 100.

（income）

Source: The Ministry of Health, Labour and Welfare (MHLW) “Overview of National Livelihood Survey 2012”

Core Units(rent ¥150,000 or less, floor area under 50 sqm)
 Changes in Occupancy Rate of Core Units

Aｔ 15th Fiscal Period End
Core Units
Unit Ratio(Occupancy Rate
Characteristics：：

96.1 %)： Single/DINKs units
in Greater Tokyo Area

7,909 units

Number of subject
housing units

Low
Rent

86.9 %

Units with rent ¥150,000 or less and floor area under 50 sqm
Unit Ratio：(Occupancy Rate
Characteristics：

Number of subject
housing units

6.5 %95.4 %)： Family unitsin Major Regional Cities

592 units

（％）

Small
Area
Unit Ratio：(Occupancy Rate
Characteristics

：

96.9

373 units¥150,000
50 sq. meters
Unit Ratio：(Occupancy Rate
Characteristics：

housing units

100： Expensive units
in Central Tokyo

Number of subject
housing units

Large
Area Number of subject

4.1 %92.8 %)

2.5 %

96.2

96.4

96.4

94.4

93.6

95.8

96.5

96.3

96.7

96.7

96.0

96.4

96.6

96.1

80

Average 96.1 ％

High
Rent

96.0 %)

60： Family units
in Central Tokyo/Suburbs

230 units
40* Figures do not include data on stores.

1st FP 2nd FP 3rd FP 4th FP 5th FP 6th FP 7th FP 8th FP 9th FP 10th FP 11th FP 12th FP 13th FP 14th FP 15th FP
End
End
End
End
End
End
End
End
End
End
End
End
End
End
End

(For reference) Total NRF portfolio
・Average Rent Per Unit

approx. ¥97 thousand

・Leasable Units

9,149 units

・Average Leasable Floor Area Per Unit approx. 29.9 sqm

25

Rental Housing Investment Characteristics✓ Real estate acquisition and sale amounts increased in 2013 and expected yields have decreased✓ The supply of new properties continues to be at a low level and demand from single and DINKs households is expected to be stable

Change in Expected Yield

Change in J-REIT Real Estate Acquisition and Sale Amount(billions of yen)

Acquisition amountSale amountNet change

4,000

Expected yield of single-room apartments(Jonan area (Meguro and Setagaya wards))（％）

Expected yield of single-room apartments(Joto area (Sumida and Koto wards))

6.5

3,500
3,000

6.0

2,500
2,000

5.5

1,500
1,000

5.0

500

4.5

0
-500
-1,0002008/04

2009/04

2010/04

2011/04

2012/04

2013/04

2014/04

4.0
2008/04

Source: Created by NREAM based on the Investment Trust Association, Japan’s Statistics on Real Estate Investment Corporations and public
documents of listed J-REITs.

2009/04

2010/04

2011/04

2012/04

2013/04

2014/04

Source: Japan Real Estate Institute’s Real Estate Investor’s Survey

Projections on Number of Households

Supply of New Properties (Number of Building Starts)（unit）(thousand households)

160,000

18,000

Number of single and DINKS households
Number of other general households

Number of households with parents and children
Total number of households

144,060
140,000
120,000
96,817100,000

12,00092,66780,00070,52557,01360,00057,36754,0292010

2011

8,730,000
households

7,500,000
households

73,8796,000

40,00020,000
0

0
2006

2007

2008

2009

2012

2013

Source: Created by NREAM based on the MLIT’s “Housing Start Statistics. The above are the totals of building starts of residences for rent
classified as apartment buildings of steel-framed reinforced concrete or reinforced concrete structure in the Housing Start Statistics
from January to December of each year.

2005

2010

2015

2020

Source: Created by NREAM based on the National Institute of Population and Social Security Research (IPPS)“Household Projections for Japan (by Prefecture)” (projections as of December 2009).

26

Utilization of Diverse Sourcing Routes
Breakdown of Acquired Properties by Sourcing Route

Properties acquired
through informationfrom outside

Properties owned by
Nomura Real Estate
Development

PROUD FLAT
Shirokane Takanawa

PROUD FLAT
Asakusa Komagata

23.4%

40.4%
Properties acquired throughinformation from or withbrokerage of Nomura Real Estate
Development

36.3%

PRIME URBAN
Meguro Ohashi Hills

Sponsor Pipeline
59.6%

PRIME URBAN
URBAN
STAGE
Shibaura LOFT

27

Portfolio Status
Building Age

Diversification Within Assets

Over 10 years

Top 5 Properties¥17.43 billion

Improve portfolio stability
through promotion ofdiversification

Considering the combination ofvarious building age to avoid thebias of large-scale repair
expenses⇒Top 10 Properties 19.4%⇒Average Building Age
10.4 Years
Other 143 Properties¥129.23 billion

5-10 years

Top 10 Properties¥31.01 billion

Investment Area

3-5 years

Floor Area Per Unit
Over 70 sqm

Other Areas

Investing in properties targeting
single/DINKS/young family
households for theforeseeable future

Greater Tokyo Area 70% or more
Other Areas 30% or less⇒Greater Tokyo Area 81.0%

Other Areas(Kanagawa,Chiba, Saitama)⇒Under 50 sqm
Tokyo (excluding the 23 wards)

Tokyo (23 wards)

Over 10 min.

Within 5 min.

Retail & Office50-70 sqm

90.5%
30-50 sqm

Under 30 sqm

Over 100 Units

Under 30 Units

50-100 Units

30-50 Units

Units Per Property

Nearest Station on Foot

Selection focusing onaccessibility to the nearest
railway stations

Investing in properties withstrong lease-up potential in ashort timeframe⇒Within 10 min. 93.7 %⇒Average Unit Per Property
59 Units
5-10 min.

*In the above graphs, “floor area per unit” as of the end of May 2014 is based on the number units while other figures are based on acquisition price.

28

Changes in Revenue
Changes in Rent per Tsubo and Occupancy Rate (12th FP End-16th FP End (forecast))[Rent per Tsubo](Rent per Tsubo)

Rent/Tsubo (Greater Tokyo Area)

Rent/Tsubo (Other Areas)

Rent/Tsubo (Total)

15,00012,500Total（Forecast）¥10,653¥10,644¥10,737¥10,736¥10,694

Rent
per Tsubo

10,00012th FP End(Nov. 30, 2012)

13th FP End(May 31, 2013)

14th FP End(Nov. 30, 2013)

15th FP End(May 31, 2014)

15th FP End(May 31, 2014)

Total¥10,653¥10,644¥10,737¥10,736¥10,694

GreaterTokyo¥12,280¥12,264¥12,349¥12,366

－

Other
Areas

¥7,306¥7,302¥7,360¥7,366－12th FP End(Nov. 30, 2012)

13th FP End(May 31, 2013)

14th FP End(Nov. 30, 2013)

15th FP End(May 31, 2014)

15th FP End(May 31, 2014)

Total

96.2%

96.4%

96.2%

95.8%

95.7%

Greater
Tokyo

95.7%

96.1%

95.9%

95.7%

－

Other
Areas

97.0%

97.2%

96.6%

96.1%

－

12th FP End(Nov. 30, 2012)

13th FP End(May 31, 2013)

14th FP End(Nov. 30, 2013)

15th FP End(May 31, 2014)

15th FP End(May 31, 2014)

9.7％

13.2％

10.0％

14.2％

11.1％

Details

7,500

5,000
12th FP End(Nov. 30, 2012)

13th FP End(May 31, 2013)

14th FP End(Nov. 30, 2013)

15th FP End(May 31, 2014)

16th FP End [forecast](Nov 30, 2014)[Occupancy Rate]（％）

Occupancy Rate (Greater Tokyo Area)

100.0

97.5

Total

96.2%

96.4%

Occupancy Rate (Other Areas)

Occupancy Rate (Total)（Forecast）
96.2%

95.8%

Occupancy
Rate

95.7%

95.0

Details

92.5(Reference)

90.0
12th FP End(Nov. 30, 2012)

13th FP End(May 31, 2013)

14th FP End(Nov. 30, 2013)

15th FP End(May 31, 2014)

16th FP End [forecast](Nov 30, 2014)

Turnover
Ratio

Total

29

Portfolio Map ( Greater Tokyo Area )Greater Tokyo Area

121 Properties

1

PROUD FLAT Shirokane Takanaw a

61

PRIME URBAN Oimachi II

2PROUD FLAT Yoyogi Uehara

62

PRIME URBAN Yukigaya

3

PROUD FLAT Hatsudai

63

PRIME URBAN Omori

4

PROUD FLAT Shibuya Sakuragaoka

64

PRIME URBAN Denenchofu Minami

5

PROUD FLAT Gakugei Daigaku

65

PRIME URBAN Nakano Kamitakada

6

PROUD FLAT Meguro Gyoninzaka

66

PRIME URBAN Takaido

7

PROUD FLAT Sumida Riverside

67

PRIME URBAN Nishi Ogikubo

8

PROUD FLAT Kagurazaka

68

PRIME URBAN Otsuka

9

PROUD FLAT Waseda

69

PRIME URBAN Komagome

10

PROUD FLAT Shinjuku Kaw adacho

70

PRIME URBAN Monzen Nakacho

11

PROUD FLAT Sangen Jaya

71

PRIME URBAN Kameido

12

PROUD FLAT Kamata

72

PRIME URBAN Sumiyoshi

13

PROUD FLAT Kamata II

73

PRIME URBAN Mukojima

14

PROUD FLAT Shinotsuka

74

PRIME URBAN Kinshi Koen

15

PROUD FLAT Kiyosumi Shirakaw a

75

PRIME URBAN Kinshicho

16

PROUD FLAT Monzen Nakacho II

76

PRIME URBAN Hirai

17

PROUD FLAT Monzen Nakacho I

77

PRIME URBAN Kasai

18

PROUD FLAT Fujimidai

78

PRIME URBAN Kasai II

19

PROUD FLAT Asakusa Komagata

79

PRIME URBAN Kasai East

20

PROUD FLAT Yokohama

80

PRIME URBAN Ekoda

21

PROUD FLAT Kamioooka

81

PRIME URBAN Itabashi Kuyakushomae

22

PROUD FLAT Tsurumi II

82

PRIME URBAN Asakusa

23

PRIME URBAN Azabu Juban

83

PRIME URBAN Machiya South Court

24

PRIME URBAN Akasaka

84

PRIME URBAN Musashi Koganei

25

PRIME URBAN Tamachi

85

PRIME URBAN Musashino Hills

26

PRIME URBAN Shibaura LOFT

86

PRIME URBAN Koganei Honcho

27

PRIME URBAN Hatagaya

87

PRIME URBAN Kumegaw a

28

PRIME URBAN Yoyogi

88

PRIME URBAN Musashi Kosugi comodo

29

PRIME URBAN Bancho

89

PRIME URBAN Shinyurigaoka

30

PRIME URBAN Chiyoda Fujimi

90

PRIME URBAN Tsurumi Teraya

31

PRIME URBAN Iidabashi

91

PRIME URBAN Urayasu

32

PRIME URBAN Ebisu

92

PRIME URBAN Gyotoku I

33

PRIME URBAN Naka Meguro

93

PRIME URBAN Gyotoku II

34

PRIME URBAN Gakugei Daigaku

94

PRIME URBAN Gyotoku Ekimae

35

PRIME URBAN Senzoku

95

PRIME URBAN Gyotoku EkimaeⅡ36

PRIME URBAN Meguro Riverside

96

PRIME URBAN GyotokuⅢ

37

PRIME URBAN Meguro Ohashi Hills

97

PRIME URBAN Nishi Funabashi

38

PRIME URBAN Kachidoki

98

PRIME URBAN Kaw aguchi

39

PRIME URBAN Shinkaw a

99

URBAN STAGE Ebisu

40

PRIME URBAN Nihonbashi Yokoyamacho

100

URBAN STAGE Meguro Aobadai

41

PRIME URBAN Hongo Ikizaka

101

URBAN STAGE Gakugei Daigaku

42

PRIME URBAN Hakusan

102

URBAN STAGE Nihonbashi Hamacho

43

PRIME URBAN Yotsuya Gaien Higashi

103

URBAN STAGE Naka Ochiai

44

PRIME URBAN Ochiai

104

URBAN STAGE Shinjuku Ochiai

45

PRIME URBAN Nishi Shinjuku I

105

URBAN STAGE Mejiro

46

PRIME URBAN Nishi Shinjuku II

106

URBAN STAGE Kagurazaka

47

PRIME URBAN Shinjuku Naitomachi

107

URBAN STAGE Roka Koen

48

PRIME URBAN Nishi Waseda

108

URBAN STAGE Kamiuma

49

PRIME URBAN Sangen JayaⅢ

109

URBAN STAGE Sangen Jaya II

50

PRIME URBAN Chitose Karasuyama

110

URBAN STAGE Komazaw a

51

PRIME URBAN Karasuyama

111

URBAN STAGE Kamikitazaw a

52

PRIME URBAN Sangen Jaya

112

URBAN STAGE Nakano

53

PRIME URBAN Minami Karasuyama

113

URBAN STAGE Ikebukuro

54

PRIME URBAN Karasuyama Galleria

114

URBAN STAGE Hino

55

PRIME URBAN Karasuyama Court

115

URBAN STAGE Kaw asaki

56

PRIME URBAN Chitose Funabashi

116

URBAN STAGE Urayasu

57

PRIME URBAN Yoga

117

URBAN STAGE Minami Gyotoku II

58

PRIME URBAN Shinagaw a Nishi

118

URBAN STAGE Minami Gyotoku III

59

PRIME URBAN Oimachi

119

URBAN STAGE Minami Gyotoku IV

60

PRIME URBAN Osaki

30

Portfolio Map ( Other Areas )Osaka

6 Properties

122

PROUD FLAT Shin Osaka

139

PRIME URBAN Esaka I

140

PRIME URBAN Esaka II

141

PRIME URBAN Esaka III

147

URBAN STAGE Tamatsukuri

148

Sapporo13 Properties

123

PRIME URBAN Yamahana

124

PRIME URBAN Kita Juyo Jo

125

PRIME URBAN Odori Koen I

126

PRIME URBAN Odori Koen II

127

PRIME URBAN Kita Juichi Jo

128

PRIME URBAN Miyanosaw a

129

PRIME URBAN Odori Higashi

130

PRIME URBAN Chiji Koukan

131

PRIME URBAN Maruyama

132

PRIME URBAN Kita Nijuyo Jo

133

PRIME URBAN Sapporo Idaimae

142

URBAN STAGE Sapporo Riverfront

143

URBAN STAGE Kita 3 Jo Dori120

PROUD FLAT Itsutsubashi

121

PROUD FLAT Kaw aramachi

134

PRIME URBAN Nagamachi Icchome

135

PRIME URBAN Yaotome Chuo

URBAN STAGE Sakaisuji Honmachi

Sendai5 Properties

144 URBAN STAGE Tsutsumidori Amamiya

Fukuoka

5 Properties

Nagoya5 Properties

149

Benefis Hakata Grand Suite

136

PRIME URBAN Aoi

150

Benefis Yakuin Minami

137

PRIME URBAN Kanayama

151

Benefis Kashii Verbena

138

PRIME URBAN Tsurumai

152

Benefis Hakata Higashi Grand Suite

145

URBAN STAGE Kamimaezu

153

Benefis Chihaya Grand Suite

146

URBAN STAGE Izumi

31

Portfolio#

Name of Property

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36

PROUD FLAT Shirokane Takanawa
PROUD FLAT Yoyogi Uehara
PROUD FLAT Hatsudai
PROUD FLAT Shibuya Sakuragaoka
PROUD FLAT Gakugei Daigaku
PROUD FLAT M eguro Gyoninzaka
PROUD FLAT Sumida Riverside
PROUD FLAT Kagurazaka
PROUD FLAT Waseda
PROUD FLAT Shinjuku Kawadacho
PROUD FLAT Sangen Jaya
PROUD FLAT Kamata
PROUD FLAT Kamata II
PROUD FLAT Shinotsuka
PROUD FLAT Kiyosumi Shirakawa
PROUD FLAT M onzen Nakacho II
PROUD FLAT M onzen Nakacho I
PROUD FLAT Fujimidai
PROUD FLAT Asakusa Komagata
PROUD FLAT Yokohama
PROUD FLAT Kamioooka
PROUD FLAT Tsurumi II
PRIM E URBAN Azabu Juban
PRIM E URBAN Akasaka
PRIM E URBAN Tamachi
PRIM E URBAN Shibaura LOFT
PRIM E URBAN Hatagaya
PRIM E URBAN Yoyogi
PRIM E URBAN Bancho
PRIM E URBAN Chiyoda Fujimi
PRIM E URBAN Iidabashi
PRIM E URBAN Ebisu
PRIM E URBAN Naka M eguro
PRIM E URBAN Gakugei Daigaku
PRIM E URBAN Senzoku
PRIM E URBAN M eguro Riverside

Location
M inato-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
M eguro-ku, Tokyo
M eguro-ku, Tokyo
Chuo-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Setagaya-ku, Tokyo
Ota-ku, Tokyo
Ota-ku, Tokyo
Toshima-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Nerima-ku, Tokyo
Taito-ku, Tokyo
Yokohama-shi, Kanagawa
Yokohama-shi, Kanagawa
Yokohama-shi, Kanagawa
M inato-ku, Tokyo
M inato-ku, Tokyo
M inato-ku, Tokyo
M inato-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
Chiyoda-ku, Tokyo
Chiyoda-ku, Tokyo
Chiyoda-ku, Tokyo
M eguro-ku, Tokyo
M eguro-ku, Tokyo
M eguro-ku, Tokyo
M eguro-ku, Tokyo
M eguro-ku, Tokyo

Acquisition Price(thousands of yen)
3,510,000
1,100,000
865,000
800,000
812,000
882,000
2,260,000
1,540,000
1,110,000
1,010,000
1,350,000
1,140,000
2,980,000
695,000
900,000
650,000
1,130,000
1,370,000
1,960,000
2,340,000
2,770,000
1,430,000
991,000
956,000
941,000
1,510,000
452,000
408,000
1,170,000
707,000
2,030,000
1,200,000
1,320,000
886,000
536,000
464,000

Percentage ofTotal (%)
2.2
0.7
0.5
0.5
0.5
0.6
1.4
1.0
0.7
0.6
0.8
0.7
1.9
0.4
0.6
0.4
0.7
0.9
1.2
1.5
1.7
0.9
0.6
0.6
0.6
0.9
0.3
0.3
0.7
0.4
1.3
0.7
0.8
0.6
0.3
0.3

Leasable Floor Area(sqm)
2,950.11
1,151.34
958.98638.70934.39855.23
3,055.21
1,793.43
1,450.91
1,102.20
1,277.82
1,541.64
4,051.72
752.091,209.56
830.55
1,191.08
2,222.05
2,685.39
3,118.12
4,872.17
2,219.74
1,222.13
1,062.05
1,107.36
1,905.39
650.60439.56
1,277.04
793.872,087.70
1,444.40
1,302.42
1,008.39
655.27453.77

Leasable Units(units)
106
44
31
30
41
40
110
70
60
41
48
67
169
35
55
35
55
94
79
113
200
81
40
25
48
68
38
19
52
32
90
29
49
32
22
24

Occupancy Rate
(M ay 2014)(%)
92.6
100.0
100.0
100.0
97.1
92.6
98.6
100.0
96.9
100.0
88.3
97.1
98.6
97.2
100.0
89.5
100.0
100.0
96.7
95.9
87.5
100.0
89.9
96.6
90.0
95.9
100.0
100.0
94.4
90.8
95.7
86.8
93.9
90.8
91.5
91.5

32

Portfolio

#
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72

Name of Property
PRIM E URBAN M eguro Ohashi Hills
PRIM E URBAN Kachidoki
PRIM E URBAN Shinkawa
PRIM E URBAN Nihonbashi Yokoyamacho
PRIM E URBAN Hongo Ikizaka
PRIM E URBAN Hakusan
PRIM E URBAN Yotsuya Gaien Higashi
PRIM E URBAN Ochiai
PRIM E URBAN Nishi Shinjuku I
PRIM E URBAN Nishi Shinjuku II
PRIM E URBAN Shinjuku Naitomachi
PRIM E URBAN Nishi Waseda
PRIM E URBAN Sangen JayaⅢ
PRIM E URBAN Chitose Karasuyama
PRIM E URBAN Karasuyama
PRIM E URBAN Sangen Jaya
PRIM E URBAN M inami Karasuyama
PRIM E URBAN Karasuyama Galleria
PRIM E URBAN Karasuyama Court
PRIM E URBAN Chitose Funabashi
PRIM E URBAN Yoga
PRIM E URBAN Shinagawa Nishi
PRIM E URBAN Oimachi
PRIM E URBAN Osaki
PRIM E URBAN Oimachi II
PRIM E URBAN Yukigaya
PRIM E URBAN Omori
PRIM E URBAN Denenchofu M inami
PRIM E URBAN Nakano Kamitakada
PRIM E URBAN Takaido
PRIM E URBAN Nishi Ogikubo
PRIM E URBAN Otsuka
PRIM E URBAN Komagome
PRIM E URBAN M onzen Nakacho
PRIM E URBAN Kameido
PRIM E URBAN Sumiyoshi

Location
M eguro-ku, Tokyo
Chuo-ku, Tokyo
Chuo-ku, Tokyo
Chuo-ku, Tokyo
Bunkyo-ku, Tokyo
Bunkyo-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Shinagawa-ku, Tokyo
Shinagawa-ku, Tokyo
Shinagawa-ku, Tokyo
Shinagawa-ku, Tokyo
Ota-ku, Tokyo
Ota-ku, Tokyo
Ota-ku, Tokyo
Nakano-ku, Tokyo
Suginami-ku, Tokyo
Suginami-ku, Tokyo
Toshima-ku, Tokyo
Toshima-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo

Acquisition Price(thousands of yen)
3,580,000
2,290,000
2,250,000
3,530,000
647,000
893,000
1,700,000
324,000
1,290,000
1,000,000
512,000
503,000
755,000
730,000
344,000
835,000
840,000
645,000
413,000
885,000
1,150,000
624,000
530,000
1,700,000
1,100,000
970,000
824,000
900,000
640,000
1,080,000
435,000
794,000
412,000
2,200,000
705,000
552,000

Percentage ofTotal (%)
2.2
1.4
1.4
2.2
0.4
0.6
1.1
0.2
0.8
0.6
0.3
0.3
0.5
0.5
0.2
0.5
0.5
0.4
0.3
0.6
0.7
0.4
0.3
1.1
0.7
0.6
0.5
0.6
0.4
0.7
0.3
0.5
0.3
1.4
0.4
0.3

Leasable Floor Area(sqm)
2,955.74
4,524.00
3,600.61
5,926.17
662.581,069.82
1,759.11
517.53
1,459.86
1,162.55
578.18507.11
1,018.72
1,774.01
507.52874.15
1,049.73
835.05576.201,027.44
1,773.05
961.25722.702,106.16
1,794.85
1,536.59
1,190.70
1,100.17
818.75
1,746.20
543.09944.99991.94
3,207.92
1,117.34
813.52

Leasable Units(units)
99
145
46
124
27
42
51
32
60
46
14
28
47
27
28
33
41
33
23
38
54
46
45
99
93
94
54
44
33
107
24
46
22
118
52
40

Occupancy Rate
(M ay 2014)(%)
95.6
91.6
93.0
99.5
92.6
96.4
89.8
93.7
92.2
95.9
100.0
3.5
96.6
89.1
96.3
100.0
95.2
97.0
100.0
97.3
100.0
95.9
97.8
98.0
96.2
100.0
100.0
95.5
100.0
95.4
96.1
97.9
95.0
99.2
94.3
100.0

33

Portfolio

#
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108

Name of Property
PRIM E URBAN M ukojima
PRIM E URBAN Kinshi Koen
PRIM E URBAN Kinshicho
PRIM E URBAN Hirai
PRIM E URBAN Kasai
PRIM E URBAN Kasai II
PRIM E URBAN Kasai East
PRIM E URBAN Ekoda
PRIM E URBAN Itabashi Kuyakushomae
PRIM E URBAN Asakusa
PRIM E URBAN M achiya South Court
PRIM E URBAN M usashi Koganei
PRIM E URBAN M usashino Hills
PRIM E URBAN Koganei Honcho
PRIM E URBAN Kumegawa
PRIM E URBAN M usashi Kosugi comodo
PRIM E URBAN Shinyurigaoka
PRIM E URBAN Tsurumi Teraya
PRIM E URBAN Urayasu
PRIM E URBAN Gyotoku I
PRIM E URBAN Gyotoku II
PRIM E URBAN Gyotoku Ekimae
PRIM E URBAN Gyotoku EkimaeⅡ
PRIM E URBAN GyotokuⅢ
PRIM E URBAN Nishi Funabashi
PRIM E URBAN Kawaguchi
URBAN STAGE Ebisu
URBAN STAGE M eguro Aobadai
URBAN STAGE Gakugei Daigaku
URBAN STAGE Nihonbashi Hamacho
URBAN STAGE Naka Ochiai
URBAN STAGE Shinjuku Ochiai
URBAN STAGE M ejiro
URBAN STAGE Kagurazaka
URBAN STAGE Roka Koen
URBAN STAGE Kamiuma

Location
Sumida-ku, Tokyo
Sumida-ku, Tokyo
Sumida-ku, Tokyo
Edogawa-ku, Tokyo
Edogawa-ku, Tokyo
Edogawa-ku, Tokyo
Edogawa-ku, Tokyo
Nerima-ku, Tokyo
Itabashi-ku, Tokyo
Taito-ku, Tokyo
Arakawa-ku, Tokyo
Koganei-shi, Tokyo
Koganei-shi, Tokyo
Koganei-shi, Tokyo
Higashimurayama-shi, Tokyo
Kawasaki-shi, Kanagawa
Kawasaki-shi, Kanagawa
Yokohama-shi, Kanagawa
Urayasu-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Funabashi-shi, Chiba
Kawaguchi-shi, Saitama
Shibuya-ku, Tokyo
M eguro-ku, Tokyo
M eguro-ku, Tokyo
Chuo-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo

Acquisition Price(thousands of yen)
487,000
1,180,000
668,000
700,000
637,000
958,000
940,000
385,000
940,000
350,000
1,740,000
2,390,000
1,590,000
725,000
1,370,000
2,150,000
1,210,000
457,000
840,000
635,000
741,000
476,000
561,000
948,000
772,000
2,170,000
1,030,000
1,190,000
916,000
1,470,000
655,000
635,000
1,260,000
2,640,000
362,000
900,000

Percentage ofTotal (%)
0.3
0.7
0.4
0.4
0.4
0.6
0.6
0.2
0.6
0.2
1.1
1.5
1.0
0.5
0.9
1.3
0.8
0.3
0.5
0.4
0.5
0.3
0.4
0.6
0.5
1.4
0.6
0.7
0.6
0.9
0.4
0.4
0.8
1.6
0.2
0.6

Leasable Floor Area(sqm)
1,108.91
1,886.50
991.62
1,095.91
905.81
1,437.84
1,884.62
872.491,742.64
876.704,141.56
5,999.80
2,961.06
1,604.72
2,610.05
3,692.44
1,708.19
952.06
1,264.84
1,151.36
1,244.00
778.19927.33
1,766.47
1,237.80
2,477.11
1,184.85
1,464.14
1,109.87
2,026.44
1,237.98
1,053.39
1,755.52
2,853.82
567.201,739.86

Leasable Units(units)
55
77
49
53
45
68
78
35
68
22
77
98
80
43
91
56
64
50
60
52
58
37
46
77
60
98
35
40
41
52
18
28
65
100
34
37

Occupancy Rate
(M ay 2014)(%)
100.0
98.7
100.0
100.0
97.8
100.0
100.0
97.4
91.2
100.0
97.6
93.9
93.3
97.4
97.4
100.0
100.0
100.0
93.3
96.2
100.0
97.3
97.8
98.7
98.3
86.9
93.7
100.0
98.2
94.9
100.0
91.8
95.6
99.3
91.3
95.5

34

Portfolio

#
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143

Name of Property
URBAN STAGE Sangen Jaya II
URBAN STAGE Komazawa
URBAN STAGE Kamikitazawa
URBAN STAGE Nakano
URBAN STAGE Ikebukuro
URBAN STAGE Hino
URBAN STAGE Kawasaki
URBAN STAGE Urayasu
URBAN STAGE M inami Gyotoku II
URBAN STAGE M inami Gyotoku III
URBAN STAGE M inami Gyotoku IV
Greater Tokyo Area
PROUD FLAT Itsutsubashi
PROUD FLAT Kawaramachi
PROUD FLAT Shin Osaka
PRIM E URBAN Yamahana
PRIM E URBAN Kita Juyo Jo
PRIM E URBAN Odori Koen I
PRIM E URBAN Odori Koen II
PRIM E URBAN Kita Juichi Jo
PRIM E URBAN M iyanosawa
PRIM E URBAN Odori Higashi
PRIM E URBAN Chiji Koukan
PRIM E URBAN M aruyama
PRIM E URBAN Kita Nijuyo Jo
PRIM E URBAN Sapporo Idaimae
PRIM E URBAN Nagamachi Icchome
PRIM E URBAN Yaotome Chuo
PRIM E URBAN Aoi
PRIM E URBAN Kanayama
PRIM E URBAN Tsurumai
PRIM E URBAN Esaka I
PRIM E URBAN Esaka II
PRIM E URBAN Esaka III
URBAN STAGE Sapporo Riverfront
URBAN STAGE Kita 3 Jo Dori

Location
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Nakano-ku, Tokyo
Toshima-ku, Tokyo
Hino-shi, Tokyo
Kawasaki-shi, Kanagawa
Urayasu-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Sendai-shi, M iyagi
Sendai-shi, M iyagi
Osaka-shi, Osaka
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sendai-shi, M iyagi
Sendai-shi, M iyagi
Nagoya-shi, Aichi
Nagoya-shi, Aichi
Nagoya-shi, Aichi
Suita-shi, Osaka
Suita-shi, Osaka
Suita-shi, Osaka
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido

Acquisition Price(thousands of yen)
539,000
396,000
738,000
472,000
3,310,000
319,000
1,150,000
277,000
285,000
263,000
256,000
129,840,000
682,000
724,000
1,430,000
377,000
336,000
530,000
322,000
600,000
576,200
424,000
337,900
283,200
503,700
731,600
1,110,000
428,000
724,000
632,000
1,189,096
672,000
790,000
1,535,000
3,500,000
1,450,000

Percentage ofTotal (%)
0.3
0.2
0.5
0.3
2.1
0.2
0.7
0.2
0.2
0.2
0.2
81.0
0.4
0.5
0.9
0.2
0.2
0.3
0.2
0.4
0.4
0.3
0.2
0.2
0.3
0.5
0.7
0.3
0.5
0.4
0.7
0.4
0.5
1.0
2.2
0.9

Leasable Floor Area(sqm)
810.98572.41
1,384.45
801.304,376.95
994.68
1,706.46
437.94611.61
542.69535.08185,115.32
1,861.56
1,967.54
2,990.68
1,518.58
1,155.60
1,850.20
1,148.72
1,851.39
2,114.53
1,494.36
1,007.30
911.07
1,773.90
2,439.90
3,411.24
1,380.21
1,571.04
1,391.02
2,502.11
1,189.12
1,392.00
2,151.67
15,552.59
5,094.29

Leasable Units(units)
17
26
29
51
131
54
80
27
37
33
32
6,691
60
64
112
33
36
53
36
60
54
36
42
27
36
58
60
43
46
58
104
48
57
79
311
114

Occupancy Rate
(M ay 2014)(%)
91.2
100.0
96.3
96.2
93.0
85.2
100.0
96.3
94.6
93.9
90.4
95.7
97.8
96.1
96.6
96.5
93.6
100.0
100.0
100.0
98.4
100.0
100.0
100.0
91.6
93.5
94.4
97.8
88.5
96.5
93.3
85.5
98.3
91.5
96.4
100.0

35

Portfolio

#
144
145
146
147
148
149
150
151
152
153

Name of Property
URBAN STAGE Tsutsumidori Amamiya
URBAN STAGE Kamimaezu
URBAN STAGE Izumi
URBAN STAGE Tamatsukuri
URBAN STAGE Sakaisuji Honmachi
Benefis Hakata Grand Suite
Benefis Yakuin M inami
Benefis Kashii Verbena
Benefis Hakata Higashi Grand Suite
Benefis Chihaya Grand Suite
Other Areas
Total

Location
Sendai-shi, M iyagi
Nagoya-shi, Aichi
Nagoya-shi, Aichi
Osaka-shi, Osaka
Osaka-shi, Osaka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka

Acquisition Price(thousands of yen)
969,000
1,250,000
2,800,000
906,000
1,780,000
830,000
351,000
396,000
693,000
545,000
30,407,696
160,247,696

Percentage ofTotal (%)
0.6
0.8
1.7
0.6
1.1
0.5
0.2
0.2
0.4
0.3
19.0
100.0

Leasable Floor Area(sqm)
4,251.91
3,541.43
7,543.10
2,373.10
3,909.90
2,176.23
897.84
1,222.34
1,854.13
1,740.70
89,231.30
274,346.62

Leasable Units(units)
65
101
250
80
82
67
34
39
65
48
2,458
9,149

Occupancy Rate
(M ay 2014)(%)
96.8
100.0
95.9
95.4
90.7
96.2
100.0
92.3
97.4
94.0
96.1
95.8

36

Changes in Financial Performance
10th FP

11th FP

12th FP

13th FP

14th FP

15th FP

Operating Revenues

million y en

4,445

5,250

5,174

5,257

5,406

5,594

Operating Profits

million y en

2,098

2,507

2,452

2,433

2,558

2,513

Net Income

million y en

1,477

1,856

1,875

1,876

1,965

1,955

Asset Total

million y en

140,152

156,780

156,703

156,576

168,019

167,940

Interest-bearing Debt Total

million y en

74,216

83,182

83,092

83,002

89,84089,750Net Asset

million y en

63,27770,81870,836

70,83875,23675,226Return on Assets (ROA)

%

2.1

2.4

2.4

2.4

2.4

2.3

Return on Equity (ROE)

%

4.7

5.2

5.3

5.3

5.4

5.2

FP End Capital Adequacy Ratio

%

45.1

45.2

45.2

45.2

44.8

44.8

LTV

%

53.0

53.1

53.0

53.0

53.5

53.4

times

3.6

4.3

4.5

4.6

4.8

4.8

%

1.47

1.28

1.27

1.24

1.17

1.16

y earsInterest Coverage Ratio
Weighted Average Interest Rate

2.5

3.0

3.0

3.3

3.5

3.7

million y en

3,424

4,016

4,010

3,953

4,118

4,156

%

5.06

5.34

5.31

5.25

5.03

5.20

FFO

million y en

2,285

2,817

2,850

2,833

2,934

2,979

Portfolio

properties

145

152

153

152

155

153

Acquisition Price Total

million y en

135,046

149,862

150,587

150,966

161,917160,247

Book Value Total

million y en

135,196

150,099

149,972

149,650

160,219

157,793

Appraisal Value Total

million y en

124,512141,011

141,836

143,063

155,472

156,322

NAV per Unit

thousand y en

418

408

415

425

438

458

Long-term Debt Average Remaining Duration

Rent NOINOI Yield (acquisition price base)

ROA=Current Profits/[(Total Asset Value at Start of FP+Total Asset Value at FP End)÷2]x100 *annual basis
ROE=Net Income/[(Net Asset at FP Start+Net Asset at FP End)÷2]x100 *annual basis
Capital Adequacy Ratio at FP End=Net Asset at FP End/Total Asset at FP End x 100
LTV=Total Interest-bearing Debt at FP End/Total Asset at FP End x 100
Interest Coverage Ratio=Net Income Before Interest Depreciation/(Interest Expenses+Investment Coroporation Bond Interest)

Rent NOI=Real Estate Rental Business Revenues-Real Estate Rental Business Income+Current FP Depreciation and Amortization
NOI Yield (Acquisition Price Base)=Rent NOI/Total Acquisition Price x 100 *annual basis
FFO=Net Income+Current FP Depreciation and Amortization+Investment Corporation Bond Issuance Ammortization-Real Estate Disposition Profit & Loss
NAV per Unit=[Net Asset Total-(Income Statement Total-Appraisal Value Total)]/Total Number of Investment Units Issued

37

Interest-bearing Debts
Lender Diversification

Maturity Diversification
FP of Repayment

16th Fiscal Period(ending Nov. 30, 2014)

17th Fiscal Period(ending May 31, 2015)

18th Fiscal Period(ending Nov. 30, 2015)

19th Fiscal Period(ending May 31, 2016)

20th Fiscal Period(ending Nov. 30, 2016)

Amount of Repayment¥6,660 million¥7,790 million¥9,790 million¥4,790 million¥10,530 million(20 Lenders)

LenderAmountInterest Rate

Date of Loan

Date of Repayment

6 Lenders¥3,170 million

0.71000%

Aug. 27, 2012

Aug. 27, 2014

3 Lenders¥3,400 million

0.94700%

Sep. 05, 2011

Sep. 05, 2014

1 Lender¥40 million

2.10000%

Aug. 27, 2009

(Note 2)

1 Lender¥50 million

2.03000%

Feb. 26, 2010

(Note 3)

1 Lender¥1,000 million

1.79200%

Feb. 26, 2010

Feb. 26, 2015

1 Lender¥1,300 million

2.23500%

May. 15, 2007

Feb. 27, 2015

5 Lenders¥5,400 million

0.96365%

Feb. 27, 2012

Feb. 27, 2015

1 Lender¥40 million

2.10000%

Aug. 27, 2009

(Note 2)

1 Lender¥50 million

2.03000%

Feb. 26, 2010

(Note 3)

5 Lenders¥9,700 million

1.00900%

Feb. 27, 2012

Aug. 27, 2015

1 Lender¥40 million

2.10000%

Aug. 27, 2009

(Note 2)

1 Lender¥50 million

2.03000%

Feb. 26, 2010

(Note 3)

1 Lender¥4,700 million

1.00000%

Dec. 26, 2011

Dec. 26, 2015

1 Lender¥40 million

2.10000%

Aug. 27, 2009

(Note 2)

1 Lender¥50 million

2.03000%

Feb. 26, 2010

(Note 3)

2 Lenders¥9,400 million

1.11700%

Dec. 26, 2011

Jun. 26, 2016

1 Lender¥1,080 million

2.10000%

Aug. 27, 2009

Aug. 27, 2016

1 Lender¥50 million

2.03000%

Feb. 26, 2010

(Note 3)

3 Lender¥1,800 million

0.69000%

Oct. 25, 2013

Feb. 26, 2017

1 Lender¥1,350 million

2.03000%

Feb. 26, 2010

Feb. 26, 2017

21st Fiscal Period(ending May 31, 2017)¥3,150 million

22th Fiscal Period(ending Nov. 30, 2017)¥3,920 million

3 Lender¥3,920 million

1.08500%

Aug. 27, 2012

Aug. 27, 201723th Fiscal Period(ending May 31, 2018)¥5,420 million

6 Lender¥5,420 million

1.12013%

Aug. 27, 2012

Feb. 27, 2018

¥5,400 million

3 Lender¥5,400 million

0.99000%

Sep. 30, 2013

Aug. 26, 2018

¥1,600 million

4 Lender¥1,600 million

1.16500%

Dec. 03, 2012

Nov. 26, 201924th Fiscal Period(ending Nov. 30, 2018)
26th Fiscal Period(ending Nov. 30, 2019)27th Fiscal Period(ending May 31, 2020)
28th Fiscal Period(ending Nov. 30, 2020)
29th Fiscal Period(ending May 31, 2021)
30th Fiscal Period(ending Nov. 30, 2021)
31th Fiscal Period(ending May 31, 2022)

19th Fiscal Period(ending May 31, 2016)
21st Fiscal Period(ending May 31, 2017)¥1,000 million¥1,000 million

1.48625%

May. 23, 2013

May. 27, 2020

1 Lender¥800 million

1.28277%

Sep. 30, 2013

Aug. 26, 2020

6 Lender¥4,700 million

1.18000%

Oct. 25, 2013

Aug. 26, 2020

1 Lender¥500 million

1.15566%

Oct. 25, 2013

Aug. 26, 2020

1 Lender¥2,000 million

1.17750%

Feb. 27, 2014

Feb. 26, 2021

1 Lender¥1,000 million

1.68200%

May. 23, 2013

May. 27, 2021

1 Lender¥3,500 million

1.62500%

May. 23, 2013

May. 27, 2021

1 Lender¥2,700 million

1.24100%

Feb. 27, 2014

Aug. 26, 2021

¥4,500 million

5 Lender¥4,500 million

1.31850%

Feb. 27, 2014

Feb. 26, 2022

¥79,750 million

20 Lenders

－

－

－

¥5,000 million

1.21000%

Feb. 25, 2011

Feb. 25, 2016

¥5,000 million

1.03000%

Feb. 24, 2012

Feb. 24, 2017

－

－

－

¥6,000 million¥6,500 million¥2,700 million¥5,000 million¥5,000 million¥89,750 million

1 LenderInvestment
Corporation Bond
Investment
Corporation Bond

－

－

－

Category

Short-term Loan
￥14,450 million

Lender

Major
Banks
(4)

Trust
Banks
(4)

RegionalBanks(4)Long-term Loan
￥65,300 million(Note 1) The interest rate stated regarding this loan takes into consideration the Interest Rate Swap transaction.
(Note 2) The amount of ￥40 million to be repayed on February 27, 2010, the first repayment date, and every August 27 and February 27 thereafter, until the last repayment of ￥1,080 million on August 27, 2016.
(Note 3) The amount of ￥50 million to be repayed on August 26, 2010, the first repayment date, and every February 26 and August 26 thereafter, until the last repayment of ￥1,350 million on February 26, 2017.
(Note 4) Regarding the Floating Rate, the interest rate as of the end of the 11th Fiscal Period is stated.

The Bank of Tokyo-Mitsubishi UFJ

12,500Sumitomo Mitsui Banking

12,500Mizuho Corporate Bank

7,220

Resona Bank

2,400

Mitsubishi UFJ Trust and Banking

12,500Sumitomo Mitsui Trust Bank

5,520

The Nomura Trust and Banking

3,700

Mizuho Trust & Banking

1,500

The Iyo Bank

1,000

The Bank of Fukuoka

1,000

The Chiba Bank

500

Taiyo Life Insurance

3,000

Mitsui Sumitomo Insurance

2,100
1,100
800

Nippon Life Insurance Company

500

Development Bank of Japan

7,640

Shinkin Central Bank

2,520

Aozora Bank

1,000

Total
（20）

Bond

750

The Tokyo Tomin Bank

Insurance
Companies Daido Life Insurance(5)
Dai-ichi Life Insurance Co., Ltd.

Others(3)

Amount(millions of yen)

79,750First Series Unsecured
Investment Corporation
Bonds
Second Series Unsecured
Investment Corporation
Bonds
Total

5,000
5,000
10,00038

Fund Profile
Structure
Asset Management
Company

History
Asset Custodian
General Administration

The FundAsset
Management
Services
Agreement

Asset Custody
Agreement

Administration ofUnitholders Register
Management ofSpecial Accounts

Administration
Agreement, etc.

Mitsubishi UFJ
Trust and Banking
Corporation

Property
Information

Information & ResearchService Providers

Nomura Real Estate Residential Fund, Inc.

Nomura Real Estate
Development Co., Ltd.
Nomura Real Estate
Urban Net Co., Ltd.

Accounting
Service
Agreement

General Administration(Accounting, etc.)

Heiseikaikeisha Tax
Corporation

July 28, 2006
Notification of incorporation by the founder (Nomura Real
Estate Asset Management Co., Ltd.) under Article 69 of theInvestment Trust Law.
August 3, 2006
Registration of incorporation under Article 166 of theInvestment Trust Law. Incorporation of the Nomura Real
Estate Residential Fund, Inc.
August 4, 2006
Applied for registration under Article 188 of the Investment
Trust Law.

Unitholders Meeting

Specified Related Party

Board of Directors Meeting

Nomura Real Estate
Holdings, Inc.
Nomura Real Estate
Development Co., Ltd.

Financial Agent
Agreement

AuditorErnst & Young ShinNihon LLC

Nomura Real Estate
Partners Co., Ltd.

General Administration(Financial Agent)

The Bank ofTokyo- Mitsubishi UFJ, Ltd.
Sumitomo Mitsui
Banking Corporation

August 24, 2006
Registration approved by the Prime Minister of Japan under
Article 187 of the Investment Trust Law (Registration number
56, filed with the Director of the Kanto Local Finance Bureau).
February 14, 2007
Listing on the Tokyo Stock Exchange.

Debt
FinanceFinancial Institutions, etc.

Investment

Debt
Rent, etc.

Residential Properties(Real Estate Related Assets)

Asset
CapitalInvestment

Property Management
Instructions for
Rent &
Management

Rental Strategies,
Plans for
Repairs, etc.

Property Management
Companies
Select the best property
management companies
for each property

Repaymentof Principal& Interest

Unitholders

EquityDistribution

Unitholders

39

Asset Management Company Overview
Organization Chart (as of May 2014)■

Overview

Company name

Nomura Real Estate Asset Management Co., Ltd.

Shareholder

Nomura Real Estate Holdings, Inc. (100%)

Location

8-5-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo

Contact Information+81-3-3365-7729

Registration,
License, etc.

・Financial instruments business operator registration:
Commissioner of the Kanto Local Finance Bureau(Financial Instruments) No. 374
・Licensed for discretionary proxy in realty trading:
Minister of Land, Infrastructure and Transport
Permit No.18
・Licensed for real estate trading: Governor of Tokyo (3)No. 81679

Memberships

・The Investment Trusts Association, Japan; The Japan
Investment Advisers Association, The Association
for Real Estate Securitization, etc.

nrf3240@nomura-re.co.jp

40This document has been prepared for the purpose of provision of information only, and should not be construed
as an offer, solicitation or commercial conduct of any nature associated with any specific products. Investors
wishing to purchase the investment units of Nomura Real Estate Residential Fund, Inc. should contact their own
securities brokers or dealers. A fee may be charged by your financial instruments business operator in relation
to the sale or purchase of investment units.
For management fees that the Fund pays to Nomura Real Estate Asset Management Co., Ltd., please refer tothe terms and conditions of the Fund, asset management reports, etc.
The forward-looking statements with respect to the future financial results contained in this document are basedon the current facts about the investment policy of the Fund, applicable laws and regulations, the market
environment, business practice, etc., as of the preparation date of this document and do not reflect or consider
any changes in the circumstances after the preparation date. These forward-looking statements inherently
reflect uncertainty about known risks as well as unknown risks and other factors and may deviate from theactual operating and management results, financial conditions, etc., of the Fund.

Investment in real estate investment securities may result in a loss due to a decline in the transaction pricecaused by, for example, changes in the price or the revenue-generating capability of the underlying properties
or deterioration of the financial conditions of the issuer.
Although the information contained in this document is intended to be complete and thorough, there is no
assurance of precision and safety of the same. Please note that the contents of this document is subject tochange or cancellation without prior notice.
It is prohibited to make duplication, reproduction, distribution or use of any part or whole of the information
contained in this document without express prior written consent.