プラウドフラット上大岡
PROUD FLAT Tsurumi Ⅱ

NOMURA REAL ESTATE RESIDENTIAL FUND

17 th Analyst Meeting Presentation Material

2015.Jul.15

Contents of the 17th Fiscal Period (December 1, 2014 to May 31, 2015) Analyst Meeting Presentation Material

Digest of the 17th Fiscal Period

APPENDIX

・Digest of the 17th Fiscal Period ①・Digest of the 17th Fiscal Period ②・Digest of the 17th Fiscal Period ③

2
3
4

Overview of the 17th Fiscal Period

・Promotion of Replacement Strategy
・Management Results
・Changes in Rent
・Appraisal Value Status at End of the 17th Fiscal Period・Financial Status
・Confirmation of NRF’s Mid- to Long-Term Strategy

6
7
8
9

Development

July 15, 2015

・Frequently Asked Questions ①
・Frequently Asked Questions ②
・Impact Goodwill
・Income Statement
・Balance Sheet・Forecasts for the 18th Fiscal Period
・Unitholders
・Changes in Investment Unit Price and Cash Distribution

17
18
19
20
21
22
23
24

10
11

Overview of the Merger

・The Significance of the Merger
・Growth through Collaboration with Nomura Real Estate

Details of Financial Results for the 17th Fiscal Period

13
14

Characteristics of NRF

・Characteristics of NRF
・Support from the Nomura Real Estate Group・Priority Investment in Key Segments
・Rental Housing Market
・Utilization of Diverse Sourcing Routes
・Portfolio Status
・Portfolio Map (Greater Tokyo Area)
・Portfolio Map (Other Areas)
・Portfolio
・Interest-Bearing Debts
・Changes in Financial Indicators

26
27
28
29
30
31
32
33
34～38
39
40

Digest of the 17th Fiscal Period1Digest of the 17th Fiscal Period ①

Comparison of Various Indices with the 16th Fiscal Period

16th FP End(as of November 30, 2014)

17th FP End(as of May 31, 2015)

Difference(Comparison with previous period)
Acquisition: 3

Number of Properties

150

148

Acquisition Price Total¥159,310 million¥163,792 million

Leasable Units

9,054 units

9,063 units+ 9 units

Average Building Age

10.8 years

11.1 years+ 0.3 years

NOI Yield

5.2%

5.1%

- 0.1%

Average Occupancy Rate

96.0%

96.8%

+ 0.8%

Asset Total¥164,852 million¥169,316 million+ ¥4,464 million

Interest-bearing Debts¥86,820 million¥91,130 million+ ¥4,310 million

LTV

52.7%

53.8%

+ 1.1%

Average Interest Rate

1.18%

1.11%

- 0.07%

3.10 years

3.14 years+ 0.04 years

Average Remaining Duration ofInterest-bearing Debt

-2

properties
Sale: 5properties+ ¥4,482 millon

2Digest of the 17th Fiscal Period ②
Difference with Previous Forecast
Forecast Announced on January 15, 2015

17th FP Forecasts(ending May 31, 2015)

17th FP Result(ending May 31, 2015)

Operating Revenues¥5,606 million¥5,678 million＋ 1.3 %

Operating Profits¥2,429 million¥2,424 million- 0.2 %Net Income¥1,865 million¥1,872 million＋ 0.4 %Net Income Per Unit

¥11,600¥11,641＋ 0.4 %Cash Distribution Per Unit

¥11,600¥11,642＋ 0.4 %

+¥356

-¥373

-¥10

Difference(Comparison with the forecast)+¥69(Major factors)
・ Decrease of revenue

・ Gain on sale

-¥28

+¥17

・ Key money+¥119

・ Rental operation expenses-¥24

・ Renewal fees+¥57

・ Repair expenses-¥241

・ Other+¥180

・ Other・ Interest expenses+¥33

・ Other

+¥36

-¥108

3

Digest of the 17th Fiscal Period ③
Difference with the 16th Fiscal Period
16th Fiscal Period(ended Nov. 30, 2014)

17th Fiscal Period(ending May 31, 2015)

Operating Revenues¥5,480 million¥5,678 million＋ 3.6 %

Operating Profits¥2,423 million¥2,424 million＋ 0.1 %Net Income¥1,877 million¥1,872 million- 0.3 %Net Income Per Unit

¥11,674¥11,641- 0.3 %Cash Distribution Per Unit

¥11,600¥11,642＋ 0.4 %

Difference(Comparison with previous period)

+¥480

-¥50

-¥1,057
+¥626
+¥74

-¥41

(Major factors)
・ PU Nakameguro II +¥300

・ Decrease in revenue -¥21

・ Rent and common+¥124
area fees

・ PU Nagahara
Kamiikedai・ Decrease in gain-¥29
on sale・ Key money
・ Renewal fees
・ Other

+¥73

+¥160

・ PU Nishi Ogikubo II +¥166(Gain on sale inthe 16th period: ¥47）
(Gain on sale inthe 17th period: ¥18）

・ Rental operation-¥410
expenses・ Loan RelatedExpense, etc.

-¥67

+¥206

・ Repair expenses -¥422

・ Other

+¥26

+¥87

・ Other-¥225

・No provision forreserve for
reduction entry +¥74
(Provision for reserve for
reduction entry in the 16th-¥74)
period:(Provision for reserve
for reduction entry in¥0）
the 17th period:※ PU stands for PRIME URBAN

4

Overview of the 17th Fiscal Period5Promotion of Replacement Strategy① Acquired 3 properties situated within 5-minute walking distance from nearest stations in the popular Jonan/Josai area
② Sold 5 properties with an average building age of 26.0 years① Acquisition• High profitability• Close to stations• Relatively new•Decrease in competitiveness• Aging＜17th FP results＞＜17th FP results＞
Number of Properties:② Sale3

5¥1,827 million

Number of Properties:

Acquisition
price¥6,300 million
Average NOI yield
4.7%
Average
9.5 Years
Building Age

Sale price:※2¥43 million
Average NOI yield
4.1 %Average26.0 years
Building Age
Gain/loss on sale:※1

As of the end of the
17th Fiscal Period

※3
※4

※5
※6

PU Nakameguro II
2-minute walk tostationPU Nagahara Kamiikedai
3-minute walk to station

PU Nishi Ogikubo II
4-minute walk to station*1 Average NOI yield is the total NOI indicated in the appraisal report at the time ofacquisition by the total acquisition price.
*2 Average building age is the building age at the point of acquisition weighted by theacquisition price.

Number of
Properties:

148

Portfolio NOI
Yield:

5.1 %Average
Building Age

11.1 years
PU Hino15-minute walk to station

PU Minami Gyotoku III
18-minute walk to station*3 The total appraisal value as of the sale is 1,720 million yen.
*4 Gain/loss on sale is the total amount where the book value as of the sale isdeducted from the sale price.
*5 Average NOI yield is the total NOI (annualized) in the period of the sale
divided by the total acquisition price.
*6 Average building age is the building age at the date of sale weighted by theacquisition price.

Improvement of the portfolio’s quality6

1,500

1,314Management Results
1,000

1,179
861

500
78
39
① Move-ins exceeded move-outs
by 68 units
0-358 days less than the previous period → Increase of operating days of replaced units② The average vacancy period was 61 days,-500③ Both the average and monthly occupancy rate recorded highest levels since listing-1,000-896-1,236-1,500① Number of Move-ins
and Move-outs
11期-1,140Move-in
12期
Move-out 13期
Increase
andDecrease
新規
解約
純増減数

（cases）

1,500② Average Vacancy Period
14期（Days）

90

1,000
1,303
985

500

931
19

-31

0

1,274

80

68

70
69

5

60

-926

-500

-8days

65

-966

61

60

-1,206-1,33450-1,00040-1,50014th FP End(Nov. 30, 2013)

15th FP End(May 31, 2014)

16th FP End(Nov. 30, 2014)

17th FP End(May 31, 2015)

14th FP End(Nov. 30, 2013)

15th FP End(May 31, 2014)

16th FP End(Nov. 30, 2014)

17th FP End(May 31, 2015)③ Portfolio Occupancy Rate

Total Portfolio

（％）

100
96.7

96.4

96.2

96.1

95.9

96.2

95.7

96.0

96.3

97.3

96.6

95.8

95.6

95.6

95.7

96.4

96.3

96.2

96.2

96.3

97.0

97.8
97.8

97.1

96.6

95
Highest levels sincelisting90

15th Fiscal Period
Average: 96.3%

14th Fiscal Period
Average: 96.2%

85

16th Fiscal Period
Average: 96.0%

17h Fiscal Period

Average:：
96.0%
Average
96.8％

80
Jun
2013

Jul

Aug

Sep

Oct

Nov

Dec

Jan
2014

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan
2015

Feb

Mar

Apr

May

*The average period from the departure of the previous resident to the contracting of the new resident is indicated.

7

Changes in Rent
① The ratio of rent increase for tenant replacements was 44.0%, the highest since the 5th Fiscal Period (ended May 31, 2009)② The rate of increase for contract renewals rose to 1.6%
③ The rate of change of the period-end rent unit for the entire portfolio made a turnaround to positive with an increase of 0.09%
from the previous period① Rent Change Before Move-out and After Move-in
Increase

Flat② Rent Change at Lease Renewals

Decrease

（％）

100%
100

100%
100

1.1

5.7

Increase
1.1

50%
50

98.0

94.1

98.8

0%0

0.9
14th FP End(Nov. 30, 2013)

0.2
15th FP End(May 31, 2014)

0.1
16th FP End(Nov. 30, 2014)

（％）

38.6

46.6

17.5
16.8

20.8
43.7

32.6

15th FP End(May 31, 2014)

97.9

44.0

36.8

0
0%

14th FP End(Nov. 30, 2013)

Decrease
0.4

38.5

46.4

17.7

50%
50

Flat

16th FP End(Nov. 30, 2014)

17th FP End(May 31, 2015)

1.6

東京圏

③ Rate of Change in Rent per Property

17th FP End(May 31, 2015)

その他

全体

（％）

0.50

+0.13
0.00

0.50

0.00

東京圏

-0.06

-0.04

0.50

-0.15

Turnaroundto positive

-0.11
-0.35

0.50
-0.50
0.00

-0.40
0.00
-0.00
14th FP End(Nov. 30, 2013)

0.13
-0.00

-0.35

0.13

-0.06

-0.21

-0.04

+0.19
地方
+0.09

東京圏
Greater Tokyo Area 地方
全体
Total

東京圏
-0.28

その他
Other Areas

0.19
+0.09
17th FP End(May. 31, 2015)

全体
0.19
+0.09

-0.04
-0.06
15th FP End
16th FP End-0.15(May 31, 2014)
(Nov.
-0.11
-0.15 30, 2014)+0.13
of change of rent per property based on properties owned-0.21
as of the end of the previous fiscal period
is indicated.
-0.11※ The rate
+0.19
-0.28

8

Appraisal Value Status at End of the 17th Fiscal Period① Unrealized gain grew to 4,152 million yen with the increase of the appraisal value in the 17th Fiscal Period② The number of properties for which the appraisal value increased grew due to the decrease of cap rates and the improvement of cash flow

（million）① Unrealized gain / loss

+4,152

5,000

+ 563

0
- 1,471-5,000-10,000- 8,136

Appraisal value
Book value

141,836
149,972- 6,587

143,063
149,650- 4,747

155,472
160,219

156,322
157,793

156,590
156,026

上昇 Flat
維持 Down
下落
Up

（％）

100
100%
100%

② Appraisal value trends

27.0
27.0

45.8
45.8
50

163,987
159,834

17.4
17.4
12.3
12.3

24.3
24.3

36.2
36.2
19.1
19.1

9.2
9.2

76.0
76.0

70.3
70.3
45.1
45.1

48.7
48.7

14.0
14.0
10.0
10.0

8.1
8.1
7.4
7.4

84.5

44.7
44.7

0%0
0%
（12th FP）

（13th FP）

（14th FP）

（15th FP）

（16th FP）

（17th FP）

Average appraisal
CAP (NCF)

5.41 ％

5.34 ％

5.29 ％

5.17 ％

5.08 ％

4.91 ％

NAV per unit

¥ 415,411¥ 425,639¥ 438,056¥ 458,678¥ 470,826¥ 493,207
BPS ¥ 467,382

9Financial Status① The repayment dates of interest-bearing debts were diversified with an upper limit of about 10 billion yen for each fiscal period② The weighted average interest rate decreased 0.07% from the previous fiscal period, and the average remaining duration was maintained at over
3 years① Maturity Diversification（billion）

Debt

120

Refinance

Borrowings for acquisition of
new properties: ¥4.4 billion

80

Interest-bearing Debt

Bonds

Refinance: ¥7.7
billion

3.14 years￥91,130 million

5.0
10.5 5.0

9.7

3.3

Weighted Average Interest Rate

1.5

4.7

3.1

4.6

5.4

6.0

5.4
1.1

0

1.6

4.5
2.7

93.9 ％

1.3

1.0

Agency(year)

2.0

JCR
Average Remaining Duration of nterest-bearing Debt

5.0

1.5

1.24

1.17

1.16

1.18

1.11
(-0.07）

3.20

3.10

3.14

＃15

＃16

＃17

S&P

1.0

2.62

2.78

2.92

＃13

＃14

0.0

3.0

1.0
＃12

53.8 ％

Credit Rating

Duration of Interest-bearing Debt(%)

LTV Level

Fixed-rate Interest-bearing Debt Ratio

2.9② Weighted Average Interest Rate and Average Remaining

1.27

78.5 ％

6.5#18 #19 #20 #21 #22 #23 #24 #25 #26 #27 #28 #29 #30 #31 #32 #33

Weighted Average Interest Rate

Long-term Interest-bearing Debt Ratio

1.11 ％

4.9

40

0.5

Average Remaining Duration ofInterest-bearing Debt

Interest-bearing Debt Total

RatingOutlookLong-term Senior：
Debt RatinsAA＊4Long-term
Corporate Credit
Ratins：A

Stable ＊5

Short-term
Corporate Credit
Ratins：A-1*1 Interest-bearing debts include investment corporation bonds.
*2 The long-term ratio, when including long-term loans due within a year, is 100.0%.
*3 Fixed-rate interest bearing debts include borrowings with variable interest rates
whose interest rates were fixed through interest rate swap agreements.
*4 Designation to credit monitor (direction: negative) was announced in a press release
dated May 27, 2015.
*5 Credit rating with continued “stable” outlook was announced in a press released
dated May 27, 2015.

10

Confirmation of NRF’s Mid- to Long-Term Strategy

Confirmation of NRF’s Mid- to Long-Term Strategy

Enhance the portfolio
Accelerate thereplacement strategy✓ Property acquisitions
centering on sponsor
support✓ Active sales ofproperties

Pursuit of internal growth

Creation of capacity
for acquisitions✓ Renewals to increase
competitiveness✓ Maintain highoccupancy rate byincreasing tenantsatisfaction✓ Control the LTV
level

Aim to improve the portfolio with a 5-year target

11Overview of the Merger

12The Significance of the Merger① Pursue sustainable growth by transforming from “Specialized type REIT” into “Diversified type REIT”② Strengthen stability and enhance growth strategy through benefit of a large scale REIT
③ Accelerate mutual growth with Nomura Real Estate Group by establishing “Leasing Business Value Chain”

Overview of the Fund Pre- and Post-Merger
NRF(as of May 31, 2015)

New REIT

Investment target

Residences

Diversified type which does not limit
its sectors

Number of properties

148

Asset total¥169,316 million¥924,504 million

LTV

53.8%

42.7%

Number ofinvestment units

1 unitCash distributions

11,642 yen/unit

257

4.45 units
12,059 yen/unit

Effects
・Increase of investment opportunities through the expansion of sectors
targeted for investment
・This, in turn, enables sustained and stable growth
Promotion of the following strategies will become possible with the asset
size growing by about five times, increasing risk tolerance
・Large-scale replacement strategy
・Large-scale renewal of owned properties
・Acquisition of large properties developed by the sponsor
・Further increase of financial stability
・Fractional investment units will be settled with cash
・Increase of cash distributions*1 Estimated figures following the merger are indicated. Assets
scheduled for acquisition in October 2015 and March 2016 are notincluded.
*2 The figure includes the ¥80,116 million of goodwill (expected).
Please see page 19 for more information on goodwill.
*3 The figure is the ¥2,710 of forecast cash distribution of the new
REIT for its 2nd Fiscal Period multiplied by the merger ratio (4.45).

Realization of the foundation for targeting
further stability and growth13Growth through Collaboration with Nomura Real Estate Development✓ Realize sustainable external growth through the full cooperation of the sponsor✓ Aim to be the no. 1 REIT in Japan not only in asset size but also portfolio quality and all other aspects

Core Brands of Nomura Real Estate Development’s Profitable
Real Estate
OfficeLogistics facilities● Balance of Assets of Nomura Real Estate
Development’s Profitable Real Estate

Residential
facilities

Retail facilitiesFYE Mar. 2016

FYE Mar. 2017 toFYE Mar. 2019

FYE Mar. 2020 toFYE Mar. 2022

Source: Prepared by Nomura Real Estate Asset Management Co., Ltd. based on Nomura Real Estate Holdings’
presentation materials for the fiscal period ended March 2015.

Aim to be the no. 1 REIT in Japan

Asset size

Quality of portfolio Strategy

Performance

Financialstanding

Reliability

14

Ａ Ｐ Ｐ Ｅ Ｎ Ｄ Ｉ Ｘ

15Details of Financial Results for the 17th Fiscal Period

16

Frequently Asked Questions ①
Acquisition-related
Answer
How is the current rental housingtransaction market?

The transaction market continues to be overheated.
The search for yields is trending downwards along with the overheated market, and prime properties
are being transacted with yields even lower than the period prior to the global financial crisis.

What are the prospects for therental housing transaction market
going forward?

The supply of new properties are decreasing with the surge of land costs and construction costs.
On the other hand, since the demand for rental housing is expected to continue strong, the market isthought to continue to be overheated as it is now.

Though competition for acquisitions is severe, we plan to carefully select properties, primarily prime
What will be your acquisition policy
properties that are open for negotiations at arm's length and limited transactions, using our network ofgoing forward?
prior sellers and brokers while centering on cases that utilize the sponsor pipeline.

Management-related
AnswerWhat are the prospects for theoccupancy rate going forward?

With the impact of late marriages and the declining birth rate in addition to the continued flow of
populations into the Tokyo area as well as core regional cities, the demand from rental housing forsingles and small families continues to be stable.
On the other hand, rental housing construction starts for rental housing units are at a lower level thanthe peak in 2006, and the supply/demand for rental housing continues to be tight. As such, we believethat the occupancy rate will continue to be stable at a high level.

What are the prospects for rents
going forward?

As the supply/demand of rental housing is tight, the upward trends of rents is gaining momentum,
particularly in the Tokyo area.
Given this impact, the rent unit price in the 17th Fiscal Period made a turnaround to positive period-onperiod growth of 0.09%.
The degree of increase going forward is believed to depend on corporate performance and thechanges that will appear in wages.

How is the situation of acquiring
key money?

The situation of acquiring key money is improving since the bottom in the 8th Fiscal Period (June 1,2010 to November 30, 2010).
The amount of key money acquired in the 17th Fiscal Period was higher in comparison with the budget
and the same period last year.

17Frequently Asked Questions ②

Merger-related
AnswerWhat is the future schedule?

The schedule is as follows:
May 27, 2015: Conclusion of merger agreement and determination of the merger ratio
June 12, 2015: Record date for general meetings of unitholders of NMF and NRF (April 30 for NOF)
July 30, 2015: General meetings of unitholders of NMF and NOF
July 31, 2015: General meeting of unitholders of NRF
September 28, 2015: Date of delisting of NRF, NMF and NOF
October 1, 2015: Date of incorporation of the new REIT
October 2, 2015: Date of listing of the new REIT
Mid November, 2015: Final announcement of financial results of NRF
Mid to late December, 2015: Payments of cash distributions on merger
February 29, 2016: End of 1st fiscal period of the new REIT

What are fractional investment
units?

The fractions of investment units are investment units of a fraction of one unit that will be generated asa result of the allotment of the investment units of the new REIT.
For example those who own 5 NRF investment units will be allotted 22.25 investment units of the new
REIT (4.45 × 5), and the 0.25 units which below one unit will be the fractional investment units.
Pursuant to legal provisions, fractions of one investment unit generated by all unitholders will be addedup, the number of investment units equivalent to the total will be sold on the market and the amountobtained will be issued to unitholders with fractions of investment units according to their fractions.
For those who own investment units of multiple investment funds, the fractional investment units may
not be tallied as fractional investment units will be calculated for eat investment fund.

What are the distributions inexcess of net income of the new
REIT?

Distribution in excess of net income is the issuance of the amount in excess of the investment
corporation’s net income during the period under review to unitholders as cash distributions.
The difference is that, while in other REITs the distribution in excess of net income is based on“depreciation and amortization,” the new REIT’s distribution in excess of net income for the 2nd fiscal
period onwards will be based on amortization costs, etc. of “goodwill”.
* Please see page 19 for more information on goodwill.

18

Impact Goodwill

By distributing excess of income that corresponds to amortization of goodwill,
the level of dividends for unitholders is not affected by goodwill.

19

Income statement

Operating Revenue
Real Estate Rental Business Revenues*1

Rental Business Revenues
Other Rental Business Revenues

16th Fiscal Period

17th Fiscal Period

Difference from

From Jun. 1, 2014

From Dec. 1, 2014

Previous Period

To Nov. 30, 2014
Amount(￥000)
5,480,818

To May. 31, 2015
Amount(￥000)
5,678,204(17th FP - 16th FP)
Difference
Difference(￥000)(%)
197,385
3.6

5,427,985

5,659,317

231,33122.7

5,068,066

5,229,052

160,985

3.2

359,918

430,265

70,346

19.5*Reference [17th Fiscal Period]

124,611

129,563

4,951

4.0

Incidental Revenue*2

160,332

215,395

55,062

34.3

Other Real Estate Rental Revenues*374,97485,306

10,332

13.8

Parking Lot Revenue

52,833

18,886-33,946-64.3

3,057,633

3,253,483

195,8496.4*12,353,783

2,543,528

189,745

8.1

Repair Expenses*4257,382

328,354

70,971

27.6

Tax and Public Dues

*5

-0.1

Real Estate Disposition Revenue
Operating Expense
Real Estate Rental Business Expenses

Depreciation and Amortization
Other Rental Business Expenses
Asset Management Fees

292,327

291,945-382

1,052,023

1,071,654

19,6311.9

752,049

851,574

99,524

13.2

397,390

397,803

412

0.1
13.4

261,177

296,154

34,9772,423,184

2,424,721

1,536

0.1

Non-Operating Revenues

4,603

6,180

1,576

34.3

Non-Operating Expenses

549,671557,877

8,206

1.5

Interest Expenses

458,480

456,899-1,581-0.3

Investment Corporation Bond Interest

55,92856,189260

0.535,26144,788

9,527

27.0

Ordinary Income

1,878,116

1,873,023-5,093-0.3

Net Income Before Tax

1,878,116

1,873,023-5,093

-0.3

890

1,014

124

14.0

1,877,226

1,872,008-5,217

-0.3

98

45

-53

-54.2

Retained Earnings at Fiscal Period End

1,877,325

1,872,053-5,271-0.3

Total Cash Distribution

1,865,280

1,872,033

6,753

0.4

Other Operating Expenses*6

Operating Profits

Other Non-Operating Expenses

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

1. Real Estate Rental Business Revenues:(from previous FP :2. Incidental Revenues
2. Key Money
2. Renewal Fee::¥3,115,788 thousand¥41,586 thousand)¥91,176 thousand¥108,125 thousand

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

:
:
:

5. Tax and Public Dues (153 properties at FP End)
5．Subject Property:
5．Excluded Property
:
Total
:

¥328,354 thousand¥76,255 thousand¥404,609 thousand

150 properties
3 properties
153 properties

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

::

¥38,394 thousand¥7,200 thousand

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

:

¥34,642 thousand(Note) The amount of total cash distributions in the 16th Fiscal Period is the amount where the provision of reserve for reducti on entry (¥12 million) is
deducted from unappropriated retained earnings.

20

Balance Sheet
Liabilities and Net Assets

Assets16th Fiscal Period
as of Nov. 30, 2014

17th Fiscal Period
as of May. 31, 2015

16th Fiscal Period
as of Nov. 30, 2014

17th Fiscal Period
as of May. 31, 2015

Amount(￥000)

Amount(￥000)

Amount(￥000)

Amount(￥000)

Current Assets

Ratio
(%)

Ratio
(%)

8,773,642

5.3

9,447,514

5.6

8,186,505

5.0

8,915,409

5.3

Trade Accounts Payable

Cash and Cash Equivalent in Trust

491,5220.3

377,1930.2

Current portion of investment corporation bonds＊

Other Current Assets

95,6130.1

154,9110.1

Long-term Loan Due Within One Year＊

156,052,970

94.7

159,850,449

94.4

Other Accounts Payable

156,029,544

94.6

159,834,379

94.4

Taxes Payable

134,483,407

81.6

145,474,237

85.9

Building

60,552,944

36.7

62,820,675

Land

73,930,463

44.8

82,653,562

Cash and Cash Equivalents

Fixed Assets＊

Tangible Fixed Assets

1

Real Estate

Real Estate in Trust
Building in TrustLand in Trust

11.5

21,140,030

12.5

267,5930.2

357,631

0.2

2

-

-

5,000,000

3.0

2

17,580,000

10.7

14,580,000

8.6

341,7260.2

310,505

0.2

9,712

0.0

16,3490.0

Accrued Expenses

115,149

0.1

108,9880.1

37.1

Rent Received in Advance702,508

0.4

754,692

0.4

48.8

Deposits Payable

6,777

0.0

11,8620.0

70,680,198

42.9

73,020,987

43.1

13.1

14,360,142

8.4

6,991,812

4.2

5,005,543

2.9

14,551,280

8.8

9,354,599

5.5

3,045

0.0

-

0.0

Construction in Progress
Intangible Fixed Assets

1,016

Other Intangible Fixed Assets

0.0

495

0.0

1,016

0.0

495

0.0

Investment and Other Assets

22,4080.0

15,5740.0

Security Deposits

10,8790.0

10,756

0.0

Long-term Repaid Expenses

11,529

0.0

4,818

0.0

25,4320.0

18,1610.0

25,4320.0

18,1610.0

164,852,044

100.0

169,316,126

100.0

Deferred Assets
Investment Corporation Bond Issuing Expenses

Total Assets*(unit : million of yen)

1 Tangible Fixed Asset
Acqisition Accumulated
Price Depreciation

Real Estate, etc.
173,042
Building
74,581
Land
82,653
Building in Trust
6,452
Land in Trust
9,354
Construction in Progress－

13,207
11,760－1,447－－(Depreciation for
current FP)(1,072)
(981)
－
(90)
－
－

Book value
at FP end

159,834
62,821
82,654
5,006
9,355
－

Ratio
(%)

19,023,467

21,543,092

Current Liabilities

Ratio
(%)

Fixed Liabilities
Investment Corporation Bonds＊

2

10,000,000

6.1

5,000,000

3.0Long-term Loans＊2

59,240,000

35.9

66,550,000

39.3

1,231,288

0.7

1,329,163

0.8

208,9090.1

141,824

0.1

89,703,665

54.4

94,161,018

55.6

Security Deposits
Security Deposits in Trust
Total Liabilities
Unitholders Equity

75,148,378

45.6

75,155,107

44.4

Unitholders Capital

73,231,053

44.4

73,231,053

43.3

Retained Earnings

1,917,325

1.2

1,924,053

1.1

Total Net Assets

75,148,378

45.6

75,155,107

44.4

Total Liabilities and Net Assets

164,852,044

100.0

169,316,126

100.0*2 Loans (long-term loans due whithin a year are included in the short-term loans)
Balance of interest-bearing debts (millions of yen)

91,130Total asset interest-bearing debt ratio

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

53.8％

Long-term interest-bearing debt ratio

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

78.5％

21

Forecasts for the 18th Fiscal Period

Operating Revenue
Real Estate Rental Business Revenues
Real Estate Disposition Revenue
Operating Expense
Real Estate Rental Business Expenses
Repair Expenses
Tax and Public Dues

17th FP Forecast
From Dec. 1, 2014
To May 31, 2015

18th FP Forecast
From Jun. 1, 2015
To Nov. 30, 2015

Difference

Amount(millions of yen)Amount(millions of yen)Amount(millions of yen)

18th FP Forecast(announced July. 2015)Assumptions

5,678

5,482

-196

【Properties】
Number of Properties

：

5,659

5,436

-223

Total Amount of Acquisition Price： ¥162,237 million

18

45

27

3,253

3,062

-191

2,543

2,349

-194

328

258

-70

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

PU Shinjuku Ochiai (large-scale renovation)：¥56 million

146 properties【Repair Expenses】\393 million for 16th Fiscal Period(\136 million of which is capital expenditure)

291

311

20

1,071

1,054

-17

Asset Management Fees

397

394

-3

Other Operating Expenses

296

318

22

Operating Profits

2,424

2,420

-4

Example)PU Tsutsumidori Amamiya (large-scale renovation)：¥18 million

Non-Operating Expenses

557

554

-3

PU Azabu Juban (large-scale renovation)：¥14 million

Interest Expenses：¥87,830 million

Depreciation and Amortization

513

510

-3

Ordinary Income

1,873

1,866

-7

Net Income

1,872

1,865

-7
0

Number of Investment Units Issued(units)160,800

160,800

Cash Distribution Per Unit(yen)

11,642

11,600-42

Number of Properties(properties)

148

146

-2

Leasable Floor Area(sqm)

272,627.52

279,528.92

6,901

(%)

96.0

96.2

0.2

Average Occupancy Rate

\374 million for 16th Fiscal Period(\117 million of which is capital expenditure)【Lorns】
Total Interest-bearing Debt
(as of Jan. 19, 2015)

Interest-Bearing Debt Repayment Due During 17th FP(after Jan. 19, 2015)
Repayment through loans (Feb. 2015)：¥9,700 million

Agreed Repayment(Feb. 2015)：¥90 million※1 Cash distribution per unit for the 18th fiscal period (ending November 2015) shown in the chart is the forecast as of July 15, 2015. Actual figures may change due to the acquisition or sales ofproperties, changes in real estate markets, and other conditions surrounding NRF. NRF does not guarantee the cash distribution per unit predicted in this forecast.
※2 PU stands for PRIME URBAN.

22

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

120,000

160,800units
19.5%

18.3%

16.7%

15.0%

8.4%

6.1%

5.7%

6.3%

13.1%

12.9%

13.2%

64.7%

65.5%

13.1%

Individuals/Others( 24,154 unit 8,673 unitholders )Foreign Corporations, etc.
( 10,141 unit
132 unitholders )80,000
58.9%

62.5%

14th FP

15th FP

Domestic Corporation (excluding Financial Institutions)( 21,147 unit
160 unitholders )Financial Institutions (including Securities Companies)( 105,358 unit
105 unitholders )40,0000
16th FP

17th FP[Financial Institutions]Total

94,734 units

58.9%

100,494 units

62.5%

103,974 units

64.7%

105,358 units

65.5%

Banks

15,348 units

9.5%

17,616 units

11.0%

18,285 units

11.4%

20,060 units

12.5%

Trust Banks

65,650 units

40.8%

68,606 units

42.7%

70,168 units

43.6%

69,505 units

43.2%

3,627 units

2.3%

3,610 units

2.2%

3,722 units

2.3%

3,530 units

2.2%

3,801 units

2.4%

4,984 units

3.1%

4,807 units

3.0%

4,955 units

3.1%

1,160 units

0.7%

680 units

0.4%

2,112 units

1.3%

2,395 units

1.5%

5,148 units

3.2%

4,998 units

3.1%

4,880 units

3.0%

4,913 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

46,30628.80

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 Master Trust Bank of Japan, Ltd.

7,308

4.54

8

The Joyo Bank, Ltd.

2,502

1.56

4

Trust & Custody Services Bank, Ltd.

5,792

3.60

9

The Ashikaga Bank, Ltd.

1,984

1.23

5

The Nomura Trust and Banking Co., Ltd.

4,952

3.08

10 The Fukui Bank,Ltd.

1,908

1.19

Total
92,21457.35(Note) The Ratio is calculated as the percentage of Total Number of Owned Investment Units divided by Total Number of Issued Investment Units.

23

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

TSE REIT Index

800,000

3,000
Oct. 31, 2014
BOJ Announces
Additional Purchase of J-REIT

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

2,100

Feb. 14, 2012
Enhancement of Monetary
EasingOct. 5, 2010
BOJ Announces
Purchase of JREITs

Jul. 10, 2015
¥ 617,000

2,400

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

Mar. 11, 2011
Great Eastern Japan
Earthquake

600,000

2,700

1,800

400,000

1,500
1,200
4th PO¥4.2 billion

900

200,000
600

3rd PO¥7.1 billion

3000Nov. 30
2009

May. 312010

Nov. 30
2010

May. 312011

Nov. 30
2011

May. 312012

Nov. 30
2012

May. 312013

Nov. 30
2013

May. 312014

Nov. 30
2014

May. 312015

0Changes in Cash Distribution（yen）
20,00016,00014,14414,005

13,91013,631

12,127

11,046

12,00012,068

11,674

11,77012,302

12,424

12,17012,221

12,161

11,60011,642

8th FP

9th FP

10th FP

11th FP

12th FP

13th FP

14th FP

15th FP

16th FP

17th FP

8,102
8,000
4,000

0
1st FP

2nd FP

3rd FP

4th FP

5th FP

6th FP

7th FP

24

Characteristics of NRF

25

Characteristics of NRF

Specializing in rental housing

Acquisition Price

163,792 million

Average Rent Per Unit

Number of Properties 148 properties

approx. 97thousand

Average Leasable
Floor Area Per Unit

Leasable Units

9,063 units

approx. 30.4 sqm※ (17th Fiscal Period End)

Foundation for stableprofitPriority investment in 「core units」(rent ¥150,000 or less and floor area below 50 sqm)

Build portfolio centering on single and compact types

Highly-effective property management throughmanagement companies affiliated withreal estate companies

Stable finances

Measures for stable performance andmaintenance/improvement of competitivenessPromote elongation/fixation of loans based on solid
financial policies

Paying out stable cash distributions26

Support from the Nomura Real Estate Group
Property acquisitions throughthe sponsor’s information route(based on acquisition price)

Ratio of commissioning to
Nomura Real Estate Partners(based on number of cases)

56.7％

77.0％

Acquisition

Management

Property development

General developer thatdevelops PROUD, PMO, etc.
Properties planned/developedby Nomura Real Estate
Development Co., Ltd.

Provision of property information

Real estate broker with ample
experience
Primarily properties
planned/developed bycompanies other than Nomura
Real Estate Development Co.,Ltd.

Property management

General real estate managementcompany with know-how cultivatedon various matters・Management company satisfaction
ranking: 1st (6 consecutive years) ※※: From “Home Surfing” by Attractors Lab Co., Ltd. (currently Style
Act Co., Ltd.).

Asset Management Company(Listed REITs)

One of Japan’s largest real estate asset management company withmore than ¥1 trillion balance of assets under management(Non-listed REIT)・Nomura Real Estate Private REIT, Inc.
・Nomura Real Estate Residential Fund, Inc.
・Nomura Real Estate Office Fund, Inc.
(Other)・Nomura Real Estate Master Fund, Inc.
・Private real estate funds
・Private securities funds, etc.

27Priority Investment in Key SegmentsCore Units (rent ¥150,000 or less, floor area under 50 sqm)
At 17th Fiscal Period End
Core Units
Unit Ratio
86.2 ％(Occupancy Rate 96.7 ％）Characteristics Single/DINKs units in Greater Tokyo Area
Number of subject
housing units

7,772 units

Units with rent ¥150,000 or less and floor area under 50 sqm

Small Area

(Occupancy Rate

4.6 ％94.3 ％）

Characteristics

Expensive units

Unit Ratio

Number of subject
housing units

Unit Ratio(Occupancy Rate
Characteristics

6.6 ％97.1 ％）
Family unitsin Major Regional Cities

Number of subject
housing units

595 unit

418unitHigh Rent¥150,000
50 sq. meters

Low Rentin Central Tokyo

Unit Ratio(Occupancy Rate
Characteristics

2.6 ％96.1 ％）

Family units

in Central Tokyo/Suburbs

Number of subject
housing units

Large Area

232 unit

Target Tenant Level
Target・Students and employees of general companies
in their 20s and 30s
・ Emphasizes convenience of commuting and rent

Features・ Impact of economy on annual income(disposable earnings) is low

Rent ¥150,000 or less and floor area below 50 sqm
Stable demand is expected to continue going forward28

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 J-REIT Real Estate Acquisition andSale Amount(billions of yen)

Acquisition amountSale amount

Change in Expected Yield
Net change

4,000
400

Transaction yield of single-room apartments (Jonan area (Meguro and Setagaya wards))
Transaction yield of single-room apartments(Joto area (Sumida and Koto wards))

（％）

6.5

High point 6.0

3,500
350
3,000
300

LehmanShock
Sep. 2008

6.0

2,500
250

5.5

2,000
200

Low point

1,500
150

5.0

5.0

1,000
100

5.8

4.8

500
50

4.5

00

4.6

4.5

-500
-50
-1,000-100
2008/04
2008/104.0
2009/04
2009/102010/04
2010/10

2011/04
2011/10

2012/04
2012/102013/04
2013/10

2014/04
2014/10Source: Created by NREAM based on the Investment Trust Association, Japan’s Statistics on Real Estate Investment Corporations and public
documents of listed J-REITs.

2006/10

2007/10

2008/10

2009/102010/10

2011/10

2012/102013/10

2014/10Source: Japan Real Estate Institute’s Real Estate Investor’s Survey

Projections on Number of Households

Supply of New Properties (Number of Building Starts)（unit）（thousandhouseholds）

160,000

18,000

Number of single and DINKS households

Number of households with parents and children

Number of other general households

Total number of households

144,060
140,000

120,000
96,817100,000

9,630,000
households

12,0008,730,000
households

92,66780,00070,52557,01360,00057,36773,87973,20954,0296,000

40,00020,000
0

0

2006

2007

2008

2009

2010

2011

2012

2013

2014

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.

2010

2015

2020

2025

2030

2035

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 April 2014).

29

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

22.9％

43.3％

Properties acquired throughinformation from or with brokerageof Nomura Real Estate
Development

33.8％

PRIME URBAN
Meguro Ohashi Hills

Sponsor Pipeline

56.7 ％PRIME URBAN
Shibaura LOFT

30

Portfolio Status
Diversification Within Assets

Building Age
Top 5 Properties¥17.43 billion

Over 10 years

Improve portfolio stability
through promotion ofdiversification

Considering the combinationof various building age to
avoid the bias of large-scale
repair expenses⇒ Top 10 Properties 19.2％⇒ Average Building Age
11.1 Years
Other 138 Properties¥132.37 billion

Top 10 Properties¥31.42 billion

Investment Area

5-10 years

Floor Area Per Unit
Over 70 sqm

Other Areas

Greater Tokyo Area 70% ormore Other Areas 30% or
less

Investing in properties
targetingsingle/DINKS/young family
households for theforeseeable future⇒ Under 50 sqm 90.4％

Other Areas(Kanagawa,Chiba, Saitama)⇒ Greater Tokyo Area 81.4％

Retail & Office50-70 sqm

Tokyo (excluding
the 23 wards)
Tokyo (23 wards)

Nearest Station on FootOver 10 min.

Within 5 min.

30-50 sqm

Under 30 sqm

Units Per Property
Over 100 Units

Selection focusing onaccessibility to the nearest
railway stations

Investing in properties withstrong lease-up potential in ashort timeframe⇒Within 10 min. 94.5％⇒ Average Unit Per Property

Under 30 Units

61 Units
5-10 min.

50-100 Units

30-50 Units※. In the above graphs, “floor area per unit” as of the end of May 2015 is based on the number units while other figures are based on acquisition price.

31

Portfolio Map ( Greater Tokyo Area )Greater Tokyo Area

114Properties

1

PROUD FLAT Shirokane Takanawa

58

PRIME URBAN Kamiuma

2

PROUD FLAT Yoyogi Uehara

59

PRIME URBAN Sangen JayaⅢ

3

PROUD FLAT Hatsudai

60

PRIME URBAN Chitose Karasuyama

4

PROUD FLAT Shibuya Sakuragaoka

61

PRIME URBAN Sangen Jaya II

5

PROUD FLAT Gakugei Daigaku

62

PRIME URBAN Sangen Jaya

6

PROUD FLAT Meguro Gyoninzaka

63

PRIME URBAN Minami Karasuyama

7

PROUD FLAT Sumida Riverside

64

PRIME URBAN Karasuyama Galleria

8

PROUD FLAT Kagurazaka

65

PRIME URBAN Karasuyama Court

9

PROUD FLAT Waseda

66

PRIME URBAN Kamikitazawa

10

PROUD FLAT Shinjuku Kawadacho

67

PRIME URBAN Chitose Funabashi

11

PROUD FLAT Sangen Jaya

68

PRIME URBAN Yoga

12

PROUD FLAT Kamata

69

PRIME URBAN Shinagawa Nishi

13

PROUD FLAT Kamata II

70

PRIME URBAN Osaki

14

PROUD FLAT Shinotsuka

71

PRIME URBAN Oimachi II

15

PROUD FLAT Kiyosumi Shirakawa

72

PRIME URBAN Yukigaya

16

PROUD FLAT Monzen Nakacho II

73

PRIME URBAN Omori

17

PROUD FLAT Monzen Nakacho I

74

PRIME URBAN Denenchofu Minami

18

PROUD FLAT Fujimidai

75

PRIME URBAN Nagahara Kamiikedai

19

PROUD FLAT Asakusa Komagata

76

PRIME URBAN Nakano

20

PROUD FLAT Yokohama

77

PRIME URBAN Nakano Kamitakada

21

PROUD FLAT Kamioooka

78

PRIME URBAN Takaido

22

PROUD FLAT Tsurumi II

79

PRIME URBAN Nishi Ogikubo

23

PRIME URBAN Azabu Juban

80

PRIME URBAN Nishi Ogikubo II

24

PRIME URBAN Akasaka

81

PRIME URBAN Otsuka

25

PRIME URBAN Tamachi

82

PRIME URBAN Komagome

26

PRIME URBAN Shibaura LOFT

83

PRIME URBAN Ikebukuro

27

PRIME URBAN Hatagaya

84

PRIME URBAN Monzen Nakacho

28

PRIME URBAN Yoyogi

85

PRIME URBAN Kameido

29

PRIME URBAN EbisuⅡ

86

PRIME URBAN Sumiyoshi

30

PRIME URBAN Bancho

87

PRIME URBAN Mukojima

31

PRIME URBAN Chiyoda Fujimi

88

PRIME URBAN Kinshi Koen

32

PRIME URBAN Iidabashi

89

PRIME URBAN Kinshicho

33

PRIME URBAN Ebisu

90

PRIME URBAN Hirai

34

PRIME URBAN Naka Meguro

91

PRIME URBAN Kasai

35

PRIME URBAN Gakugei Daigaku

92

PRIME URBAN Kasai II

36

PRIME URBAN Senzoku

93

PRIME URBAN Kasai East

37

PRIME URBAN Meguro Riverside

94

PRIME URBAN Ekoda

38

PRIME URBAN Meguro Ohashi Hills

95

PRIME URBAN Itabashi Kuyakushomae

39

PRIME URBAN Meguro Aobadai

96

PRIME URBAN Asakusa

40

PRIME URBAN Gakugei DaigakuⅡ

97

PRIME URBAN Machiya South Court

41

PRIME URBAN Naka Meguro II

98

PRIME URBAN Musashi Koganei

42

PRIME URBAN Kachidoki

99

PRIME URBAN Musashino Hills

43

PRIME URBAN Shinkawa

100 PRIME URBAN Koganei Honcho

44

PRIME URBAN Nihonbashi Yokoyamacho

101 PRIME URBAN Kumegawa

45

PRIME URBAN Nihonbashi Hamacho

102 PRIME URBAN Musashi Kosugi comodo

46

PRIME URBAN Hongo Ikizaka

103 PRIME URBAN Kawasaki

47

PRIME URBAN Hakusan

104 PRIME URBAN Shinyurigaoka

48

PRIME URBAN Yotsuya Gaien Higashi

105 PRIME URBAN Tsurumi Teraya

49

PRIME URBAN Naka Ochiai

106 PRIME URBAN Urayasu II

50

PRIME URBAN Ochiai

107 PRIME URBAN Urayasu

51

PRIME URBAN Nishi Shinjuku I

108 PRIME URBAN Gyotoku I

52

PRIME URBAN Nishi Shinjuku II

109 PRIME URBAN Gyotoku II

53

PRIME URBAN Shinjuku Naitomachi

110 PRIME URBAN Gyotoku Ekimae

54

PRIME URBAN Nishi Waseda

111 PRIME URBAN Gyotoku EkimaeⅡ

55

PRIME URBAN Shinjuku Ochiai

112 PRIME URBAN GyotokuⅢ

56

PRIME URBAN Mejiro

113 PRIME URBAN Nishi Funabashi

57

PRIME URBAN Kagurazaka

114 PRIME URBAN Kawaguchi

32

Portfolio Map ( Other Areas )Osaka

6 Properties

118 PRIME URBAN Yamahana

117 PROUD FLAT Shin Osaka

Sapporo13 Properties
119 PRIME URBAN Kita Juyo Jo

139 PRIME URBAN Esaka I

120 PRIME URBAN Odori Koen I

140 PRIME URBAN Esaka II

121 PRIME URBAN Odori Koen II

141 PRIME URBAN Esaka III

122 PRIME URBAN Kita Juichi Jo

142 PRIME URBAN Tamatsukuri

123 PRIME URBAN Miyanosawa

143 PRIME URBAN Sakaisuji Honmachi

124 PRIME URBAN Odori Higashi
125 PRIME URBAN Chiji Koukan
126 PRIME URBAN Maruyama
127 PRIME URBAN Kita Nijuyo Jo
128 PRIME URBAN Sapporo Idaimae
129 PRIME URBAN Sapporo Riverfront
130 PRIME URBAN Kita Sanjo DoriSendai5 Properties

115 PROUD FLAT Itsutsubashi
116 PROUD FLAT Kawaramachi
131 PRIME URBAN Nagamachi Icchome
132 PRIME URBAN Yaotome Chuo
133 PRIME URBAN Tsutsumidori Amamiya

Fukuoka

5 Properties

Nagoya5 Properties

144 PRIME URBAN Hakata

134 PRIME URBAN Aoi

145 PRIME URBAN Yakuin Minami

135 PRIME URBAN Kanayama

146 PRIME URBAN Kashii

136 PRIME URBAN Tsurumai

147 PRIME URBAN Hakata Higashi

137 PRIME URBAN Kamimaezu

148 PRIME URBAN Chihaya

138 PRIME URBAN Izumi

33

Portfolio
#
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

Name of Property
PROUD FLAT Shirokane Takanawa
PROUD FLAT Yoyogi Uehara
PROUD FLAT Hatsudai
PROUD FLAT Shibuya Sakuragaoka
PROUD FLAT Gakugei Daigaku
PROUD FLAT Meguro 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 Monzen Nakacho II
PROUD FLAT Monzen Nakacho I
PROUD FLAT Fujimidai
PROUD FLAT Asakusa Komagata
PROUD FLAT Yokohama
PROUD FLAT Kamioooka
PROUD FLAT Tsurumi II
PRIME URBAN Azabu Juban
PRIME URBAN Akasaka
PRIME URBAN Tamachi
PRIME URBAN Shibaura LOFTPRIME URBAN Hatagaya
PRIME URBAN Yoyogi
PRIME URBAN EbisuⅡ
PRIME URBAN Bancho
PRIME URBAN Chiyoda Fujimi
PRIME URBAN Iidabashi
PRIME URBAN Ebisu
PRIME URBAN Naka Meguro
PRIME URBAN Gakugei Daigaku
PRIME URBAN Senzoku

Location
Minato-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
Meguro-ku, Tokyo
Meguro-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
Minato-ku, Tokyo
Minato-ku, Tokyo
Minato-ku, Tokyo
Minato-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
Chiyoda-ku, Tokyo
Chiyoda-ku, Tokyo
Chiyoda-ku, Tokyo
Meguro-ku, Tokyo
Meguro-ku, Tokyo
Meguro-ku, Tokyo
Meguro-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
1,030,000
1,170,000
707,000
2,030,000
1,200,000
1,320,000
886,000
536,000

Percentage of Leasable Floor Area Leasable Units
Total (%)
(sqm)
(units)
2.1
0.7
0.5
0.5
0.5
0.5
1.4
0.9
0.7
0.6
0.8
0.7
1.8
0.4
0.5
0.4
0.7
0.8
1.2
1.4
1.7
0.9
0.6
0.6
0.6
0.9
0.3
0.2
0.6
0.7
0.4
1.2
0.7
0.8
0.5
0.3

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
1,184.81
1,277.04
793.872,087.70
1,444.40
1,302.42
1,008.39
655.27

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
35
52
32
90
29
49
32
22

Occupancy Rate
(May 2015)(%)
99.1
97.8
94.4
96.7
100.0
100.0
93.7
97.5
100.0
96.3
96.2
100.0
97.4
86.0
100.0
97.5
98.2
100.0
98.8
95.5
100.0
98.0
94.8
100.0
93.8
94.6
100.0
96.0
100.0
98.2
100.0
95.8
100.0
93.9
100.0
92.5

34

Portfolio#

Name of Property

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

PRIME URBAN Meguro Riverside
PRIME URBAN Meguro Ohashi Hills
PRIME URBAN Meguro Aobadai
PRIME URBAN Gakugei DaigakuⅡ
PRIME URBAN Naka Meguro II
PRIME URBAN Kachidoki
PRIME URBAN Shinkawa
PRIME URBAN Nihonbashi Yokoyamacho
PRIME URBAN Nihonbashi Hamacho
PRIME URBAN Hongo Ikizaka
PRIME URBAN Hakusan
PRIME URBAN Yotsuya Gaien Higashi
PRIME URBAN Naka Ochiai
PRIME URBAN Ochiai
PRIME URBAN Nishi Shinjuku I
PRIME URBAN Nishi Shinjuku II
PRIME URBAN Shinjuku Naitomachi
PRIME URBAN Nishi Waseda
PRIME URBAN Shinjuku Ochiai
PRIME URBAN Mejiro
PRIME URBAN Kagurazaka
PRIME URBAN Kamiuma
PRIME URBAN Sangen JayaⅢ
PRIME URBAN Chitose Karasuyama
PRIME URBAN Sangen Jaya II
PRIME URBAN Sangen Jaya
PRIME URBAN Minami Karasuyama
PRIME URBAN Karasuyama Galleria
PRIME URBAN Karasuyama Court
PRIME URBAN Kamikitazawa
PRIME URBAN Chitose Funabashi
PRIME URBAN Yoga
PRIME URBAN Shinagawa Nishi
PRIME URBAN Osaki
PRIME URBAN Oimachi II
PRIME URBAN Yukigaya

Location
Meguro-ku, Tokyo
Meguro-ku, Tokyo
Meguro-ku, Tokyo
Meguro-ku, Tokyo
Meguro-ku, Tokyo
Chuo-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
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
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Shinagawa-ku, Tokyo
Shinagawa-ku, Tokyo
Shinagawa-ku, Tokyo
Ota-ku, Tokyo

Acquisition Price(thousands of yen)
464,000
3,580,000
1,190,000
916,000
2,800,000
2,290,000
2,250,000
3,530,000
1,470,000
647,000
893,000
1,700,000
655,000
324,000
1,290,000
1,000,000
512,000
503,000
635,000
1,260,000
2,640,000
900,000
755,000
730,000
539,000
835,000
840,000
645,000
413,000
738,000
885,000
1,150,000
624,000
1,700,000
1,100,000
970,000

Percentage of Leasable Floor Area Leasable Units
Total (%)
(sqm)
(units)
0.3
2.2
0.7
0.6
1.7
1.4
1.4
2.2
0.9
0.4
0.5
1.0
0.4
0.2
0.8
0.6
0.3
0.3
0.4
0.8
1.6
0.5
0.5
0.4
0.3
0.5
0.5
0.4
0.3
0.5
0.5
0.7
0.4
1.0
0.7
0.6

453.772,955.74
1,464.14
1,109.87
2,393.45
4,524.00
3,600.61
5,926.17
2,026.44
662.581,069.82
1,759.11
1,237.98
517.53
1,459.86
1,162.55
578.18507.11
1,053.39
1,755.52
2,853.82
1,739.86
1,018.72
1,774.01
810.98874.15
1,049.73
835.05576.201,384.45
1,027.44
1,773.05
961.252,106.16
1,794.85
1,536.59

24
99
40
41
66
145
46
124
52
27
42
51
18
32
60
46
14
28
28
65
100
37
47
27
17
33
41
33
23
29
38
54
46
99
93
94

Occupancy Rate
(May 2015)(%)
100.0
94.9
100.0
100.0
100.0
95.1
94.9
95.4
94.3
100.0
100.0
89.8
94.0
94.1
95.2
95.6
100.0
100.0
100.0
96.9
97.9
96.9
93.0
96.2
100.0
94.2
100.0
97.0
100.0
100.0
97.2
100.0
95.9
96.9
97.7
95.8

35

Portfolio#

Name of Property

Location

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

PRIME URBAN Omori
PRIME URBAN Denenchofu Minami
PRIME URBAN Nagahara Kamiikedai
PRIME URBAN Nakano
PRIME URBAN Nakano Kamitakada
PRIME URBAN Takaido
PRIME URBAN Nishi Ogikubo
PRIME URBAN Nishi Ogikubo II
PRIME URBAN Otsuka
PRIME URBAN Komagome
PRIME URBAN Ikebukuro
PRIME URBAN Monzen Nakacho
PRIME URBAN Kameido
PRIME URBAN Sumiyoshi
PRIME URBAN Mukojima
PRIME URBAN Kinshi Koen
PRIME URBAN Kinshicho
PRIME URBAN Hirai
PRIME URBAN Kasai
PRIME URBAN Kasai II
PRIME URBAN Kasai East
PRIME URBAN Ekoda
PRIME URBAN Itabashi Kuyakushomae
PRIME URBAN Asakusa
PRIME URBAN Machiya South Court
PRIME URBAN Musashi Koganei
PRIME URBAN Musashino Hills
PRIME URBAN Koganei Honcho
PRIME URBAN Kumegawa
PRIME URBAN Musashi Kosugi comodo
PRIME URBAN Kawasaki
PRIME URBAN Shinyurigaoka
PRIME URBAN Tsurumi Teraya
PRIME URBAN Urayasu II
PRIME URBAN Urayasu
PRIME URBAN Gyotoku I

Ota-ku, Tokyo
Ota-ku, Tokyo
Ota-ku, Tokyo
Nakano-ku, Tokyo
Nakano-ku, Tokyo
Suginami-ku, Tokyo
Suginami-ku, Tokyo
Suginami-ku, Tokyo
Toshima-ku, Tokyo
Toshima-ku, Tokyo
Toshima-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
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
Kawasaki-shi, Kanagawa
Yokohama-shi, Kanagawa
Urayasu-shi, Chiba
Urayasu-shi, Chiba
Ichikawa-shi, Chiba

Acquisition Price(thousands of yen)
824,000
900,000
1,720,000
472,000
640,000
1,080,000
435,000
1,780,000
794,000
412,000
3,310,000
2,200,000
705,000
552,000
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
1,150,000
1,210,000
457,000
277,000
840,000
635,000

Percentage of Leasable Floor Area Leasable Units
Total (%)
(sqm)
(units)
0.5
0.5
1.1
0.3
0.4
0.7
0.3
1.1
0.5
0.3
2.0
1.3
0.4
0.3
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
0.4
0.8
1.3
0.7
0.7
0.3
0.2
0.5
0.4

1,190.70
1,100.17
2,282.62
801.30818.75
1,746.20
543.092,225.33
944.99991.94
4,376.95
3,207.92
1,117.34
813.52
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
1,706.46
1,708.19
952.06437.94
1,264.84
1,151.36

54
44
61
51
33
107
24
76
46
22
131
118
52
40
55
77
49
53
45
68
78
35
68
22
77
98
80
43
91
56
80
64
50
27
60
52

Occupancy Rate
(May 2015)(%)
96.3
95.9
84.3
98.3
95.0
99.1
95.9
90.0
97.9
95.5
97.6
99.2
98.1
100.0
100.0
97.4
100.0
98.1
97.8
92.6
100.0
94.3
98.3
95.4
97.7
95.9
100.0
93.1
96.6
96.8
98.0
100.0
98.3
100.0
98.3
100.0

36

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
PRIME URBAN Gyotoku II
PRIME URBAN Gyotoku Ekimae
PRIME URBAN Gyotoku EkimaeⅡ
PRIME URBAN GyotokuⅢ
PRIME URBAN Nishi Funabashi
PRIME URBAN Kawaguchi
Greater Tokyo Area
PROUD FLAT Itsutsubashi
PROUD FLAT Kawaramachi
PROUD FLAT Shin Osaka
PRIME URBAN Yamahana
PRIME URBAN Kita Juyo Jo
PRIME URBAN Odori Koen I
PRIME URBAN Odori Koen II
PRIME URBAN Kita Juichi Jo
PRIME URBAN Miyanosawa
PRIME URBAN Odori Higashi
PRIME URBAN Chiji Koukan
PRIME URBAN Maruyama
PRIME URBAN Kita Nijuyo Jo
PRIME URBAN Sapporo Idaimae
PRIME URBAN Sapporo Riverfront
PRIME URBAN Kita Sanjo DoriPRIME URBAN Nagamachi Icchome
PRIME URBAN Yaotome Chuo
PRIME URBAN Tsutsumidori Amamiya
PRIME URBAN Aoi
PRIME URBAN Kanayama
PRIME URBAN Tsurumai
PRIME URBAN Kamimaezu
PRIME URBAN Izumi
PRIME URBAN Esaka I
PRIME URBAN Esaka II
PRIME URBAN Esaka III
PRIME URBAN Tamatsukuri
PRIME URBAN Sakaisuji Honmachi

Location
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Funabashi-shi, Chiba
Kawaguchi-shi, Saitama
Sendai-shi, Miyagi
Sendai-shi, Miyagi
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
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sendai-shi, Miyagi
Sendai-shi, Miyagi
Sendai-shi, Miyagi
Nagoya-shi, Aichi
Nagoya-shi, Aichi
Nagoya-shi, Aichi
Nagoya-shi, Aichi
Nagoya-shi, Aichi
Suita-shi, Osaka
Suita-shi, Osaka
Suita-shi, Osaka
Osaka-shi, Osaka
Osaka-shi, Osaka

Acquisition Price(thousands of yen)
741,000
476,000
561,000
948,000
772,000
2,170,000
133,385,000
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
3,500,000
1,450,000
1,110,000
428,000
969,000
724,000
632,000
1,189,096
1,250,000
2,800,000
672,000
790,000
1,535,000
906,000
1,780,000

Percentage of Leasable Floor Area Leasable Units
Total (%)
(sqm)
(units)
0.5
0.3
0.3
0.6
0.5
1.3
82.1
0.4
0.4
0.9
0.2
0.2
0.3
0.2
0.4
0.4
0.3
0.2
0.2
0.3
0.4
2.1
0.9
0.7
0.3
0.6
0.4
0.4
0.7
0.8
1.7
0.4
0.5
0.9
0.6
1.1

1,244.00
778.19927.33
1,766.47
1,237.80
2,477.11
186,962.79
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
15,552.59
5,094.29
3,411.24
1,380.21
4,251.91
1,571.04
1,391.02
2,502.11
3,541.43
7,543.10
1,189.12
1,392.00
2,151.67
2,373.10
3,909.90

58
37
46
77
60
98
6,605
60
64
112
33
36
53
36
60
54
36
42
27
36
58
311
114
60
43
65
46
58
104
101
250
48
57
79
80
82

Occupancy Rate
(May 2015)(%)
100.0
97.3
100.0
98.7
98.3
98.4
97.0
100.0
100.0
93.9
97.5
93.6
100.0
100.0
95.0
98.4
89.7
97.6
96.3
91.6
95.7
97.6
97.0
97.3
100.0
98.2
96.2
100.0
97.1
90.6
96.7
89.5
93.1
85.9
94.7
84.7

37

Portfolio#

Name of Property

144
145
146
147
148

PRIME URBAN Hakata
PRIME URBAN Yakuin Minami
PRIME URBAN Kashii
PRIME URBAN Hakata Higashi
PRIME URBAN Chihaya
Other Areas
Total

Location
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka

Acquisition Price(thousands of yen)
830,000
351,000
396,000
693,000
545,000
29,001,696
162,386,696

Percentage of Leasable Floor Area Leasable Units
Total (%)
(sqm)
(units)
0.5
0.2
0.2
0.4
0.3
17.9
100.0

2,176.23
897.84
1,222.34
1,854.13
1,740.70
85,402.20
272,364.99

67
34
39
65
48
2,334
8,939

Occupancy Rate
(May 2015)(%)
97.3
91.7
91.7
94.3
96.1
95.6
96.6

38

Interest-bearing Debts
Lender Diversification

Maturity Diversification
FP of Repayment
18th Fiscal Period(ending Nov. 30, 2015)

19th Fiscal Period(ending May 31, 2016)

Amount of Repayment¥9,790 million¥4,790 million

20th Fiscal Period(ending Nov. 30, 2016)¥10,530 million

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

22th Fiscal Period(ending Nov. 30, 2017)¥7,970 million

23th Fiscal Period(ending May 31, 2018)¥6,920 million

24th Fiscal Period(ending Nov. 30, 2018)¥5,400 million(20 Lenders)AmountInterest Rate

Date of Loan

Date of Repayment

5 Lenders¥9,700 million

1.00900%

Feb. 27, 2012

Aug. 27, 2015

1 Lender¥40 million

2.10000%

Aug. 27, 2009

（Note2）

1 Lender¥50 million

2.03000%

Feb. 26, 2010

（Note3）

1 Lender¥4,700 million

1.00000%

Dec. 26, 2011

Dec. 26, 2015

1 Lender¥40 million

2.10000%

Aug. 27, 2009

（Note2）

Lender

1 Lender¥50 million

2.03000%

Feb. 26, 2010

（Note3）

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

（Note3）

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

1 Lender¥750 million

0.55091%

Aug. 27, 2014

Aug. 26, 2017

3 Lender¥3,920 million

1.08500%

Aug. 27, 2012

Aug. 27, 2017

5 Lender¥3,300 million

0.51000%

Dec. 18, 2014

Nov. 26, 2017

6 Lender¥5,420 million

1.12013%

Aug. 27, 2012

Feb. 27, 2018

2 Lender¥1,500 million

0.55091%

Feb. 27, 2015

Feb. 26, 2018

3 Lender¥5,400 million

0.99000%

Sep. 30, 2013

Aug. 26, 2018

24th Fiscal Period(ending Nov. 30, 2018)¥1,100 million

1 Lender¥1,100 million

0.69894%

Dec. 18, 2014

May. 26, 2019

26th Fiscal Period(ending Nov. 30, 2019)¥1,600 million

4 Lender¥1,600 million

1.16500%

Dec. 03, 2012

Nov. 26, 201927th Fiscal Period(ending Nov. 31, 2019)¥1,000 million

1 Lender¥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 Lender¥4,900 million

0.97410%

Feb 27, 2015

Nov. 26, 2021

28th Fiscal Period(ending Nov. 30, 2020)¥6,000 million

29th Fiscal Period(ending May 31, 2021)¥6,500 million

30th Fiscal Period(ending Nov. 30, 2021)¥7,600 million

31th Fiscal Period(ending May 31, 2022)¥4,500 million

5 Lender¥4,500 million

1.31850%

Feb. 27, 2014

Feb. 26, 2022

32th Fiscal Period(ending Nov. 30, 2022)¥2,980 million

4 Lender¥2,980 million

1.19700%

Sep. 05, 2014

Aug. 26, 2022

32th Fiscal Period(ending Nov. 30, 2022)¥1,300 million

1 Lender¥1,300 million

1.13250%

Feb. 27, 2015

Feb. 26, 2023

¥81,130 million

20 Lenders

－

－

－

19th Fiscal Period(ending May 31, 2016)¥5,000 million

Investment
Corporation Bond

¥5,000 million

1.21000%

Feb. 25, 2011

Feb. 25, 2016

21st Fiscal Period(ending May 31, 2017)¥5,000 million

Investment
Corporation Bond

¥5,000 million

1.03000%

Feb. 24, 2012

Feb. 24, 2017

¥91,130 million

－

－

－

－

－

－

Category

LenderThe Bank of Tokyo-Mitsubishi UFJ

12,850Sumitomo Mitsui Banking

12,850Mizuho Corporate Bank

7,450

Resona Bank

2,400

Mitsubishi UFJ Trust and Banking

12,850Sumitomo Mitsui Trust Bank

5,700

The Nomura Trust and Banking

3,700

Mizuho Trust & Banking

1,500

The Iyo Bank

1,000

Regional The Bank of Fukuoka
Banks
(4)
The Chiba Bank

1,000

Major
Banks
(4)

Trust
Banks
(4)

Long-term Loan￥81,130 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 16th Fiscal Period is stated.

Amount(millions of yen)

The Tokyo Tomin Bank

500

Taiyo Life Insurance

3,000

Mitsui Sumitomo Insurance

2,200

Insurance
Companies Daido Life Insurance(5)

Others(3)

1,100Dai-ichi Life Insurance Co., Ltd.

800

Nippon Life Insurance Company

500

Development Bank of Japan

7,460

Shinkin Central Bank

2,520

Aozora Bank

1,000

Total
（20）

Bond

750

81,130First Series Unsecured
Investment Corporation
Bonds
Second Series Unsecured
Investment Corporation
Bonds
Total

5,000
5,000
10,00039Changes in Financial Performance
11th FP

12th FP

13th FP

14th FP

15th FP

16th FP

17th FP

Operating Revenues

million yen

5,250

5,174

5,257

5,406

5,594

5,480

5,678

Operating Profits

million yen

2,507

2,452

2,433

2,558

2,513

2,423

2,424

Net Income

million yen

1,856

1,875

1,876

1,965

1,955

1,877

1,872

Asset Total

million yen

156,780

156,703

156,576

168,019

167,940

164,852

169,316

Interest-bearing Debt Total

million yen

83,182

83,092

83,002

89,84089,75086,82091,130Net Asset

million yen

70,81870,836

70,83875,23675,22675,14875,155Return on Assets (ROA)

%

2.4

2.4

2.4

2.4

2.3

2.3

2.2

Return on Equity (ROE)

%

5.2

5.3

5.3

5.4

5.2

5.0

5.0

FP End Capital Adequacy Ratio

%

45.2

45.2

45.2

44.8

44.8

45.6

44.4

LTV

%

53.1

53.0

53.0

53.5

53.4

52.7

53.8

times

4.3

4.5

4.6

4.8

4.8

4.6

4.6

%

1.28

1.27

1.24

1.17

1.16

1.18

1.11

years

3.0

3.0

3.3

3.5

3.7

3.7

3.8

million yen

4,016

4,010

3,953

4,118

4,156

4,126

4,187

%

5.34

5.31

5.25

5.03

5.20

5.17

5.13

FFO

million yen

2,817

2,850

2,833

2,934

2,979

2,929

2,948

Portfolio

properties

152

153

152

155

153

150

148

Acquisition Price Total

million yen

149,862

150,587

150,966

161,917160,247

159,310

163,792

Book Value Total

million yen

150,099

149,972

149,650

160,219

157,793

156,026

159,834

Appraisal Value Total

million yen

141,011

141,836

143,063

155,472

156,322

156,590

163,987

NAV per Unit

thousand yen

408

415

425

438

458

470

493

Interest Coverage Ratio
Weighted Average Interest Rate
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

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.