14th Fiscal Period(Ended November 30, 2013)

Analyst Meeting Presentation Material

January 16, 2014

Contents
1. 14th FP Perform anc e

・14th FP Financial Statement Overview
・Highlights of the 14th Fiscal Period

APPENDIX
2
3

2 . Perform anc e and Future M anagem ent Policy・ 4th Public Offerring
・ Strategy for Replacing Properties
・ Changes in Asset Size・ Portfolio Occupancy Rateg in Leased Units and Rent Level
・ Changes
・ Renovating for Increasing Property

56・ Income statement
・ Balance Sheet・ Unitholders
・ Changes in Investment Unit Price and Cash

16
17
18
19

Distribution

・ Overview of 4th Public Offerring

20

7
8
9
10

Competitiveness・ Financial Status
・ Forecasts for the 15th Fiscal Period
・ Management Strategies

3 . De tails of th e Fin an c ial Re su lts

11
12
13

January 16, 2014

4 . Ch arac te ristic s of NRF
cc of NRF
・ Characteristics
・ Rental Housing Investment Characteristics
・ Priority Investment in Key Segments
・ Rental Housing Investment Characteristics
・ Utilization of Diverse Sourcing Routes
・ Portfolio Status
・ Appraisal Value Status
・ Changes in Revenue
・ Portfolio Map
・ Portfolio
・ Changes in Financial Performance・ Interest-bearing Debts
・ Fund Profile
・ Asset Management Company Overview

22
23
24
25
26
27
28
29
30
31～35
36
37
38
39

14th FP Performance1

14th FP Financial Statement Overview
Financial Statement Overview
13th Fiscal Period(ended May 31, 2013)

14th Fiscal Period(ended Nov. 30, 2013)

Difference(previous period)

Operating Revenues¥5,257 million¥5,406 million+ 2.8 %

Operating Profits¥2,433 million¥2,558 million+ 5.1 %Net Income¥1,876 million¥1,965 million+ 4.7 %

¥12,170¥12,221+ 0.4 %

15th FP Forecasts(ending May 31, 2014)

Difference to14th FP Results(Forecast)¥5,531 million+ 2.3 %

¥2,462 million- 3.7 %

¥1,897 million- 3.4 %

¥12,050- 1.4 %

(Forecast)(Forecast)(Forecast)

Cash Distribution Per Unit

(Forecast Announced in Aug. 2013: ¥12,100/unit)(Forecast Announced in Aug. 2013: ¥12,250/unit)

Difference in Cash Distribution(yen/unit)+ ¥77313,000¥12,170+ ¥329- ¥1,206+ ¥1,146¥12,050¥12,221+ ¥202+ ¥92812,000(Forecast)

11,000・ Rent and Common - ・ Expenses on
・ Revenues fromarea Fees
Commission Fees,
Commission Fee,etc.
- ¥868etc.
+ ¥431・ Key Money and+ ¥77
Renewal Fees
・ Repair and・ Interest Expense &Maintenance- ¥463Loan-related Fee,+ ¥428・ Disposition revenueetc.
+ ¥194・ Management Fees,+ ¥148etc.
・ Non-rental Revenues,
・ Other+ ¥69
etc.
+ ¥104- ¥69

10,0009,000

・ Rent and Commonarea Fees
+ ¥938・ Key Money and
Renewal Fees
+ ¥150・ Disposition revenue- ¥315・ Revenues from・ Expenses on
Commission Fee, etc.
Commission Fees,etc.
- ¥109- ¥521・ Interest Expense &Loan-related Fee, etc.
・ Repair andMaintenance+ ¥199- ¥437
・ Provision for reserve
for reduction entry
・ Management Fees,etc.
+ ¥249- ¥188・ Other- ¥1378,000
13th FPCash Distribution

Profit

Cost

Other

14th FPCash Distribution

Profit

Cost

Other

15th FPCash Distribution* Cash distribution per unit for the 15th fiscal period (ending May 2014) shown in the chart is the forecast as of January 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.

2

Highlights of the 14th Fiscal Period
Acquisition

Management

 Improving portfolio quality

 Maintain high occupancy rate（％） Changes in Leased Units and Rent Level

Public Offering100

8 Properties acquisition

96.7

96.4

96.2

Total Portfolio

96.1

96.2

95.9

[Period average occupancy rate]

95

96.2 %

Total Portfolio

Acquisition PriceNOI Yield
Building Age：90¥12.33 billion

：

5.2 %

：

End-13th FP : 96.4％ → End-14th FP : 96.2％

85

Greater Tokyo Area 95.7 %97.4 %

Other Areas80

6.8 years

Jun.

ＵＳ Kagurazaka

Jul.

Aug.

Sep.

Oct.

Nov.

 Increasing property competitiveness through renovation

ＵＳ Ikebukuro

Renovated common areas and units
US Kamiuma: Rents increased approx. 9.2% after renovation

Strategy for Replacing Properties
4 Properties disposition

Finance

Disposition Price：¥1.38 billion

NOI Yield

：

3.6 %

 Refinancing approx. ¥13.7 billion（

Building Age：ＵＳ Minami GyotokuⅤ

22.6 years

16
14

ＰＵ Kitasenzoku

Average Remaining Durationof Interest-bearing Debt

(billions of yen)

¥13.2billion （※ 1）121.19％ → 1.04％ （※2）

10[Portfolio at Nov. 30, 2013 (155 properties)]
Asset Size：

¥161.91 billion

Portfolio NOI Yield

：

5.3 %

6

0

10.0 years

2.9years

Weighted Average Interest Rate

4

14th…

：

（ 14th FP ）2.7years

82

Building Age（ 13th FP ）

16th…

18th…

20th…

22nd…

24th…

26th…

（ 13th FP ）（ 14th FP ）

1.24％

1.17％

28ｔｈ…

※1 Of the approx. ¥13.7 billion refinanced, approx. ¥0.5 billion was repaid with cash on hand.
※2 The average interest rate of the refinanced portion is indicated.

Improving Portfolio Quality ＋ Maintain High Occupancy Rate

＋ Effective Refinancing

Continuing Stable Cash Distribution*1

For acquisitions, the NOI yield is sought by dividing the total annual NOI indicated in the real estate appraisal reports of each property at the time of their acquisition by the total acquisition price of each acquired asset. For sales, the NOI yield is sought bydividing the total rent NOI annualized based on the number of operating days by the total acquisition price of each of NRF’s assets in the period in which each asset was sold. *2 The building age is as of the point of acquisition or sale of each property.

3Performance and Future Management Policy

44th Public Offerring✓ Increase the asset size (8.2% increase)✓ Increase ratio for Greater Tokyo Area (0.3 point increase)✓ Improve portfolio quality (decrease average building age by 0.2 years)
Existing Portfolio

Total（September 3）

New ly Acquired Properties

Number of Properties

151

7

158

Total Acquisition Price¥150.39 billion¥12.33 billion¥162.72 billion

Ratio of Tokyo
Metropolitan Area

81.0 %

85.6 %

81.3 %

EffectExpansion of Assets＋

Enhancement of Tokyo
Metropolitan Area Ratio

Portfilio NOI Yield

5.36 %

5.21 %

5.35 %

Building Age

10.1 years

6.8 years

9.9 years

US Ebisu

US Meguro Aobadai

Acquisition Price ：Acquisition Price ： ¥1,190 million

NOI Yield

NOI Yield ： 4.98 ％Location ： Meguro-ku, Tokyo

Location¥1,030 million：
5.10 ％： Shibuya-ku, Tokyo

US Gakugei Daigaku

Acquisition Price ：1¥916 million
NOI Yield ： 5.05 ％Location ： Meguro-ku, Tokyo

US Nihonbashi Hamacho

US Kagurazaka

US Ikebukuro

Enhancement ofPortfoilio Quality

US Sakaisuji Honmachi

Acquisition Price ： ¥1,470 million

Acquisition Price ： ¥2,640 million

Acquisition Price ： ¥3,310 million

Acquisition Price ： ¥1,780 million

NOI Yield ： 5.08 ％Location ： Chuo-ku, Tokyo

NOI Yield ：4.96 ％
Location ： Shinjuku-ku, Tokyo

NOI Yield ： 5.43 ％Location ： Toshima-ku, Tokyo

NOI Yield ： 5.62 ％Location ： Osaka-shi, Osaka*1 For assets already acquired, the NOI yield is sought by dividing the total rent NOI annualized based on the number of operating days in the 13th Fiscal Period by the total acquisition price of each of NRF’s assets. For newly acquired properties, the NOI yield issought by dividing the total annual NOI indicated in the real estate appraisal reports of each property at the time of their acquisition by the total acquisition price of each acquired asset.
*2 The average building age is as of September 3, 2013.

5

Strategy for Replacing Properties✓ Property replacements have been ongoing since the 8th Fiscal Period (4 properties were transferred in the 14th
Fiscal Period (total of 1.38 billion yen))✓ Replace with highly competitive properties considering building age, merchantability and other factors→Increase of the portfolio’s quality and profitability
Disposition

・Aging of buildings
・Decrease ofprofitability

PU Kitasenzoku

Number of
Properties
Property Price

US Takinogawa

10 Properties
4.14 Billion yen

US Koganei

US Minami GyotokuⅤ

4.3 ％Average Building Age 19.4 Years
Average NOI Yield※1※2

Portfolio at 14th Fiscal Period End*1: The average NOI yield is the NOI in the appraisal report weighted by the acquisition price.
*2: The average building age is weighted by acquisition price.

Number of
Properties

Reinvestment withfunds from sale

Acquisition

Property Price・Low building age
・High profitability

US Mejiro

Number of
Properties
Property Price

US Koganei
HonchoUS Kamimaezu

7 Properties
7.17 Billion yen

US Kasai East

US Yoga

Average NOI Yield
Average Building Age

US Itabashi
Kuyakushomae

6.2 ％4.7 Years※3

155

Properties

161.91

Billion yen

Portfolio NOI Yield

5.3

Average Building Age

10.0 Years％

Increase of the portfolio’s
quality and profitability※4*3: The average NOI yield 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.

6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 (14th Fiscal Period End)
Acquisition Price¥ 161,917

Total Leasable Floor Area

277,166.5 ㎡

155 properties

Number of Properties

million9,269 units

Leasable Units
Average Leasable

approx. ¥97 thousand

Average Rent Per Unit

approx.

Floor Area Per Unit

29.9 sqm

Stable Growth of Portfolio(billionsof yen)1,800

155 properties

180.0

152 properties¥149.86 billion

1,600

160.0
1,400

140.0
131 properties¥110.33 billion

1,200

120.0

134 properties¥115.93 billion

139 properties¥121.48 billion

139 properties¥121.48 billion

143 properties 144 properties 143 properties¥131.46 billion ¥133.41 billion ¥132.89 billion

153 properties

152 properties¥150.58 billion¥150.96 billion¥161.91 billion

145 properties¥135.04 billion

1,000

100.0
800

80.0

97 properties
89 properties¥75.42 billion¥67.03 billion

600

60.0
400
40.0

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

20.0
200

Greater Tokyo Area: 81.2%
Other Areas: 18.8%

0.0
0
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*The graph is based on the total acquisition price as of each fiscal period end (rounded down to the nearest 10 million).

7

Portfolio Occupancy Rate
✓ Maintained high occupancy rate (average occupancy rate in the 14th fiscal period: 96.2%)✓ Stability of the occupancy rate is backed by our leasing abilities (average vacancy period in the 14th Fiscal Period: 65 days)

Portfolio Occupancy Rate

Total Portfolio（％）

Other Area

Greater Tokyo Area

100

95

96.0

96.6

96.2

90

97.0

97.5
96.7

11th Fiscal1,500
PeriodAverage: 96.5%

96.2

95.7

95.4

95.8

95.9

95.7

12th Fiscal Period
Average: 95.8%
1,179

1,314

1,000

85

96.0

95.8

96.2

96.7

96.4

95.8

96.7

96.4

13th Fiscal Period
Average: 96.3%

96.2

96.1

95.9

96.2

Oct

Nov

14th Fiscal Period
Average: 96.2%

861

500
78

80
Dec
2011

Jan
2012

Feb

Mar 0

Apr

May

39
Jun

Jul

-35

Aug

Sep

Oct

Nov

Dec

Jan
2013

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

-500

-1,000-896-1,140-1,236-1,500 Number of Move-ins and11期
Move-outs 12期
新規（cases）

1,500

1,314

1,000

1,179
861

解約

13期

14期

純増減数

（Days） Average Vacancy Period

80

931

60

65

500
78

39

0

5

40

69

65

52

-35

-500

20

-1,000-1,500-896-1,23611th FP End(May 31, 2012)

12th FP End(Nov. 30, 2012)-1,14013th FP End(May 31, 2013)-926
14th FP End(Nov. 30, 2013)

0
11th FP End(May 31, 2012)

12th FP End(Nov. 30, 2012)

13th FP End(May 31, 2013)

14th FP End(Nov. 30, 2013)* The average vacancy period is the average period between the moving out of tenants and the contracting of new
tenants.

8

Changes in Leased Units and Rent Level
1.0

0.0

-1.0-0.19-0.15✓ Average rent per property continues to be stable (rate of change in the 14th Fiscal Period: -0.40%)
-0.02
-0.15
-0.26
✓ The ratio-0.19
of rents remaining
flat upon contract renewal or tenant turnoverincreased
-0.40
-0.02

-0.26


-2.0

-0.40

Rate of Change in Rent per Property

系列1

系列1
Performance (*1)（％）

Performance excluding store section
系列2of PRIME URBAN Kawaguchi (*2)

系列2

0.5

-3.0
第11期
（2012年5月期）

第11期0.0（2012年5月期）

第12期（2012年11月期）

第12期（2012年11月期）

第13期（2013年5月期）

第13期-0.02 （2013年5月期）

第14期（2013年11月期）

-0.19

第14期
（2013年11月期）

-0.15

-0.26

-0.5

-0.40

-1.0
11th FP End(May 31, 2012)

12th FP End(Nov. 30, 2012)

13th FP End(May 31, 2013)

14th FP End(Nov. 30, 2013)*1 The rate of change of rent per property based on properties owned as of the end of
the previous fiscal period is indicated.
*2 The rate of change excluding the store section of PRIME URBAN Kawaguchi at which
there was a move-out in the 14th Fiscal Period is indicated.

Rent Change at Lease Renewals

（％）

1.0
100

Increase 0.2

0.0

1.4

0.9

Rent Change Before Move-out and After Move-in

（％）

100%
100
Increase 30.5

50
0.5

Flat

Flat

94.8

97.4

95.7

98.0

16.5

50
50%

Decrease 53.00
0.0

Decrease

5.0

2.6

2.9

11th FP End(May 31, 2012)

12th FP End(Nov. 30, 2012)

13th FP End(May 31, 2013)

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

34.7

34.7

32.6

15.3

19.4

20.8

49.9

45.9

46.6

12th FP End(Nov. 30, 2012)

13th FP End(May 31, 2013)

14th FP End(Nov. 30, 2013)0%
0
11th FP End(May 31, 2012)9

Renovating for Increasing Property CompetitivenessRenovation of Common Areas

Renovation of Unit SpaceURBAN STAGE Ekoda

URBAN STAGE Kamiuma

Improved the image of the property such as by renovating theentrance and changing the floor tiles of common area hallways

Increased profitability by redoing the walls and renovating kitchens,bathrooms and such

Rent
Before：¥119,000 per monthrenovation

Afterrenovation ：¥130,000 per month (+9.2%)

BeforeBeforeAfter

BeforeAfter

Before

After

After

10

Financial Status
Interest-bearing Debt

Maturity Diversification（（billion）

Interest-bearing Debt Total¥89,840 million

Average Remaining Duration ofInterest-bearing Debt

2.9 years

150

Bonds

100

¥9.2
billion1.17 %

Weighted Average Interest Rate

Debts
¥10.5
¥9.7 ¥9.7 billion
billion billion¥8.1
billion¥7.7¥6.6 billion

billionLong-term Interest-bearing Debt Ratio

82.2 %

Fixed-rate Interest-bearing Debt Ratio

90.7 %

LTV Level

53.5 %

RatingOutlook¥4.5
billion¥3.9
billion50¥1.6
billion ¥1.0
billion
0

15th
FP

Credit Rating
Agency¥6.0
billion¥5.4 ¥5.4
billionbillion

(%)
2.0

17th
FP

19th
FP

21st
FP

23rd
FP

25th
FP

27th
FP

29th
FP

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

(year)
5.0

Weighted Average Interest Rate

JCR

S&P

Long-term issuer rating:AA

StableLong-Term
Corporate Credit Ratings:

A

StableShort-Term
Corporate Credit Ratings:

A-1

Average Remaining Duration of Interest-bearing Debt

1.5

1.61
1.47
1.28

1.27

1.24

1.0

1.17

3.0

（▲0.07）0.5
2.4*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.

0.0

1.5

1.4

9th
FP

10th
FP

2.6

2.7

12th
FP

13th
FP

2.9
（＋0.2）

1.0
11th
FP

14th
FP

11

Forecasts for the 15th Fiscal Period
Initial Forecast
Revised Forecast(announced Aug. 2013) (announced Jan. 2014)

14th Result
From Jun. 1, 2013

15th FP Forecast
From Dec. 1, 2013

15th FP Forecast
From Dec. 1, 2013

To Nov. 30, 2013

To May 31, 2014

To May 31, 2014

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

Operating Revenue

5,571

5,531

-40

5,356

5,571

5,531

-40

50

0

0

0

2,848

3,010

3,068

58

2,250

2,366

2,434

68

Repair Expenses

225

267

282

15

Tax and Public Dues

260

263

264

1

1,012

1,058

1,059

1

Asset Management Fees

383

405

400

-5

Other Operating Expenses

215

238

234

-4

Operating Profits

2,558

2,561

2,462

-99

Non-Operating Profit and Loss

592

590

564

-26

Interest Expenses

521

544

525

-19

Ordinary Income

1,966

1,971

1,898

-73

Net Income

1,965

1,969

1,897

-72

Number of Investment Units Issued(units)

160,800

160,800

160,800

0

Cash Distribution Per Unit(yen)

12,221

12,25012,050-200

Number of Properties(properties)

155

158

155

-3

Leasable Floor Area(sqm)

277,166

279,057

277,166-1,891

(%)

96.2

95.8

96.2

0.4

Real Estate Disposition Revenue
Operating Expense
Real Estate Rental Business Expenses

Depreciation and Amortization(announced Jan. 2014)Assumptions

Amount(millions of yen)

5,406Real Estate Rental Business Revenues

15th FP Forecast

Difference【 Number of properties and total acquisition price 】
Number of properties: 155 properties
Total acquisition price: ¥161,917 million【 Repair work 】¥320 million for the 14th period （ of this, ¥94 million capital expenditure ）Ex.) US Ekoda (large-scale renovation)： ¥17 million¥414 million for the 15th period (of this, ¥132 million capital expenditure)Ex.) US Musashi Koganei (large-scale renovation) ： ¥27 million
US Kachidoki (update of water supply pipes： ¥21 million【 Loans 】
Total interest-bearing debt (as of the date of this document)： ¥89,840 million
Interest-bearing debt repayment due during 15th FP (after the date of this document)
Refinancing (Feb. 2014)： ¥9,200million
Repayment (Feb. 2014)： ¥90 million(yen/unit)

Average Occupancy Rate

13,000￥12,250

-￥115

-￥269

12,000＋￥249￥12,050

Reserve for
reduction entry

Revised forecast
announced Jan.
2014

-￥65
・ US Takinogawa-￥40 ●・ PF Kamioooka-￥ 212 ●・ US Koganei
・ PU Nishi Waseda-￥ 33 ●-￥ 57 ●

11,000・ US Minami Gyotoku Ⅴ-￥ 42 ●

10,000Initial forecast
announced Aug.
2013

Decrease in
number ofproperties

Move-out of soletenantOther* Cash distribution per unit for the 15th fiscal period (ending May 2014) shown in the chart is the forecast as of January 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.

12

Management Strategies
Acquisition

Management

Finance

Real Estate Investment Market

Rental Market

Financial Market

Increasing property transactions

Continuation of tight supply-demand

Downward trend of yields

environment

Improving Portfolio Quality

Enhancing Portfolio Profitability✓ Maintain high occupancy✓ Promoting property
replacement continuously

Early leasing up of property vacated by sole

取得

Promote the continuation of monetary easing policy
Risk of rising interest rates

Improving Borrowing Conditions✓ Refinancing approx. 9.2 billion
yen in the 15th FP

tenant✓ Improving lease conditions

Selling properties that are aged, or
whose profitability is lowered

Increasing new asking rent in period with

Looking for properties using a variety

frequent turnoverof routes

Increasing property competitiveness throughLonger duration
Control interest costs

renovations

Maintaining a Stable Level of Cash Distribution

13

Ａ Ｐ Ｐ Ｅ Ｎ Ｄ Ｉ Ｘ

14Details of the Financial Results

15

Income statement

Operating Revenue
Real Estate Rental Business Revenues*1

Rental Business Revenues
Other Rental Business Revenues

13th Fiscal Period

14th Fiscal Period

Difference from

From Dec. 1, 2012

From Jun. 1, 2013

Previous Period

To May 31, 2013
Amount(￥000)
5,257,115

To Nov. 30, 2013
Amount(￥000)
5,406,759(14th FP - 13th FP)
Difference
Difference(￥000)(%)
149,6432.8

5,238,904

5,356,185

117,280

2.2

4,836,942

5,013,520

176,5773.7

401,962

342,665-59,296-14.8*Reference [14th Fiscal Period]

132,230

134,455

2,225

1.7

Incidental Revenue*2

201,809140,643-61,166-30.3

Other Real Estate Rental Revenues*3

67,921

67,566-355-0.5

18,21050,57332,363

177.7

Parking Lot Revenue

Real Estate Disposition Revenue

2,823,675

2,848,657

24,9820.9*12,252,269

2,250,171-2,098-0.1

Repair Expenses*4

251,156

225,277-25,878-10.3

Tax and Public Dues

*5

Operating Expense
Real Estate Rental Business Expenses

259,940

260,682741

0.3

Depreciation and Amortization

967,193

1,012,451

45,257

4.7

Other Rental Business Expenses

773,978

751,760-22,218-2.9

375,947

383,288

7,340

2.0

195,458

215,198

19,74010.1

2,433,439

2,558,101

124,661

5.1

Asset Management Fees
Other Operating Expenses*6

Operating Profits
Non-Operating Revenues

3,602

4,052

450

12.5

Non-Operating Expenses

558,985

596,069

37,083

6.6

Interest Expenses

465,391

465,349-42

0.0

Investment Corporation Bond Interest

56,24855,751-497-0.9

37,34574,96837,622

100.7

Ordinary Income

1,878,056

1,966,085

88,028

4.7

Net Income Before Tax

1,878,056

1,966,085

88,028

4.7

1,216

951

-265

-21.8

1,876,840

1,965,133

88,293

4.7

118

67

-50

-42.9

Retained Earnings at Fiscal Period End

1,876,958

1,965,201

88,242

4.7

Total Cash Distribution

1,836,891

1,965,136

128,245

7.0

Other Non-Operating Expenses

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

1. Real Estate Rental Business Revenues: ¥3,106,014 thousand(from previous FP :

¥119,378 thousand)::¥60,770 thousand¥62,781 thousand

4. Renovation Expenses
4．Repair Expenses
4．Capital Expenditure
Total

:
:
:

¥225,277 thousand¥94,760 thousand¥320,038 thousand

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

:
:
:

147 properties
8 properties
155 properties

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

::

¥38,462 thousand¥4,800 thousand

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

:

¥40,356 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.

(Figures are rounded down to the nearest thousand)(Note) The amount of total cash distributions in the 13th Fiscal Period is the amount where the provision of reserve for reducti on entry (¥40 million) is
deducted from unappropriated retained earnings.

16

Balance Sheet
Liabilities and Net Assets

Assets13th Fiscal Period
as of May 31, 2013

14th Fiscal Period
as of Nov. 30, 2013

13th Fiscal Period
as of May 31, 2013

14th Fiscal Period
as of Nov. 30, 2013

Amount(￥000)

Amount(￥000)

Amount(￥000)

Amount(￥000)

Current Assets

Ratio
(%)

Ratio
(%)

6,857,193

4.4

7,711,933

4.6

5,945,171

3.8

6,791,327

4.0

Cash and Cash Equivalent in Trust

811,9800.5

802,795

0.5

Other Current Assets

100,0410.1

117,8100.1

Cash and Cash Equivalents

Fixed Assets

149,671,583＊

Tangible Fixed Assets
Real Estate

1

149,656,963
115,078,206

Building

54,509,622

95.6
95.6
73.5
34.8

160,267,808
160,228,831
126,536,617
59,364,412

Ratio
(%)

16,979,054

10.8

17,410,010

10.4

218,477

0.1

259,584

0.2

15,652,000

10.0

15,950,000

9.5

Other Accounts Payable292,165

0.2

342,7140.2

Taxes Payable

15,782

0.0

753

0.0

75.3

Accrued Expenses

137,3010.1

129,601

0.1

35.3

Rent Received in Advance

660,2630.4

722,407

0.4

Deposits Payable

3,063

0.0

4,949

0.0

68,758,683

43.9

75,373,449

44.9

95.4
95.4

Land

60,568,584

38.7

67,172,205

40.0Real Estate in Trust

34,572,444

22.1

33,683,356

20.0

Current Liabilities

Ratio
(%)

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

2

Fixed Liabilities

Building in Trust

11,105,042

7.1

10,762,391

6.4

Investment Corporation Bonds＊

2

10,000,000

6.4

10,000,000

6.0Land in Trust

23,467,401

15.0

22,920,964

13.6

Long-term Loans＊

2

57,350,000

36.6

63,890,000

38.0

6,312

0.0

8,857

0.0

Security Deposits

0.7

2,579

0.0

2,058

0.0

2,579

0.0

2,058

0.0

Investment and Other Assets

12,0400.0

36,9180.0

Security Deposits

10,8790.0

10,8190.0

Construction in Progress
Intangible Fixed Assets
Other Intangible Fixed Assets

Long-term Repaid Expenses

1,161

Deferred Assets

47,243*0.0

39,972

170,636
67,247
67,172
13,28622,9208

0.0

382,100

0.2

Total Liabilities

85,737,738

54.8

92,783,459

55.2

Unitholders Equity

70,838,281

45.2

75,236,255

44.8

Unitholders Capital

68,961,322

44.0

73,231,053

43.6

Retained Earnings

1,876,958

1.2

2,005,201

1.2

70,838,281

45.2

75,236,255

44.8

156,576,020

100.0

168,019,715

100.0

47,2430.0

39,9720.0

100.0

168,019,715

100.0

Total Liabilities and Net Assets(unit : million of yen)
Acqisition
Price

0.0

1,101,348

0.2

156,576,020

1 Tangible Fixed Asset

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

26,0980.7

390,280

Total Net Assets

Investment Corporation Bond Issuing Expenses

Total Assets

0.0

1,018,403

Security Deposits in Trust

Accumulated
Depreciation

10,407
7,883
－
2,524
－
－

(Depreciation for
current FP)

Book value
at FP end

(1,012)
(834)
－
(177)
－
－

160,228
59,364
67,172
10,762
22,9208*2 Loans (long-term loans due whithin a year are included in the short-term loans)
Balance of interest-bearing debts (millions of yen)

89,840Total asset interest-bearing debt ratio

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

53.5％

Long-term interest-bearing debt ratio

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

82.2％

17

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

120,000

160,800units
150,936units
17.5%

20.4%

12.9%

12.2%

10.4%

8.4%

13.4%

13.3%

Individuals/Others( 31,405 unit

19.5%

16.4%

Foreign Corporations, etc.
( 13,549 unit
133 unitholders )

13.1%

13.6%

Domestic Corporation (excluding Financial Institutions)( 21,112 unit
200 unitholders )80,00040,00010,698 unitholders )

56.3%

58.0%

55.5%

58.9%

11th FP

12th FP

13th FP

14th FP

Financial Institutions (including Securities Companies)( 94,734 unit
108 unitholders )0[Financial Institutions]Total

84,986 units

56.3%

87,600 units

58.0%

83,769 units

55.5%

94,734 units

58.9%

Banks

10,282 units

6.8%

15,222 units

10.1%

15,155 units

10.0%

15,348 units

9.5%

Trust Banks

63,816 units

42.3%

61,213 units

40.6%

56,422 units

37.4%

65,650 units

40.8%

2,248 units

1.5%

2,991 units

2.0%

3,397 units

2.3%

3,627 units

2.3%

830 units

0.5%

830 units

0.5%

1,595 units

1.1%

3,801 units

2.4%

1,965 units

1.3%

1,539 units

1.0%

1,401 units

0.9%

1,160 units

0.7%

5,845 units

3.9%

5,805 units

3.8%

5,799 units

3.8%

5,148 units

3.2%

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

39,231

24.40

6

Trust & Custody Services Bank, Ltd.

Unitholders

3,030

1.88

2

Nomura Real Estate Development Co., Ltd.

15,240

9.48

7

The Joyo Bank, Ltd.

2,502

1.56

3

The Nomura Trust and Banking Co., Ltd.

8,807

5.48

8

The Fuji Fire and Marine Insurance Co., Ltd.

2,206

1.37

4

The Master Trust Bank of Japan, Ltd.

7,168

4.46

9

The Chase Manhattan Bank, N. A. London Secs Lending Omnibus Account

2,043

1.27

5

Trust & Custody Services Bank, Ltd.

5,693

3.54

10 Nomura Bank (Luxembourg) S.A.

2,031

1.26

Total

87,951

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

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

1,000,000

TSE REIT Index
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

Mar. 11, 2011
Great Eastern Japan Earthquake

2,100

Feb. 14, 2012
Enhancement of Monetary
EasingOct. 5, 2010
BOJ Announces
Purchase of J-REITs

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

2,400

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

400,000

1,800

Nov. 29, 2013
¥539,000

1,500

BPS ¥467,887

1,200
900

4th PO¥4.2 billion

1st PO¥12.5 billion

200,000

600

3rd PO¥7.1 billion

2nd PO¥8.0 billion

Jan. 15, 2009
Lowest Price:¥287,600

300

0

0

2013/10/14

2013/08/14

2013/06/14

2013/04/14

2013/02/14

2012/12/14

2012/10/14

2012/08/14

2012/06/14

2012/04/14

2012/02/14

2011/12/14

2011/10/14

2011/08/14

2011/06/14

2011/04/14

2011/02/14

2010/12/14

2010/10/14

2010/08/14

2010/06/14

2010/04/14

2010/02/14

2009/12/14

2009/10/14

2009/08/14

2009/06/14

Changes in Cash Distribution

2009/04/14

2009/02/14

2008/12/14

2008/10/14

2008/08/14

2008/06/14

2008/04/14

2008/02/14

2007/12/14

2007/10/14

2007/08/14

2007/06/14

2007/04/14

2007/02/14

Feb. 14 May. 31
Nov. 30
May. 31
Nov. 30
May. 31
Nov. 30
May. 31
Nov. 30
May. 31
Nov. 30
May. 31
Nov. 30
May. 31
Nov. 30
2007 2007
2007
2008
2008
2009
2009
2010
2010
2011
2011
2012
2012
2013
2013
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（yen）
20,000Stability and Growth of Cash Distribution

16,00013,910[Forecast]

13,631

12,127

12,0008,000

14,14414,005

11,046

12,068

11,674

11,77012,302

12,424

12,17012,221

12,0508th FP

9th FP

10th FP

11th FP

12th FP

13th FP

14th FP

15th FP

8,102

4,000

0
1st FP

2nd FP

3rd FP

4th FP

5th FP

6th FP

7th FP

19

Overview of 4th Public Offerring
Overview of Third Public Offering

Schedule

Number of Units Issued (before PO):

150,936 units

Number of Newly Issued Units:

9,864 units (6.5% of total issued units before PO)

Public Offering:

9,306 units

Over Allotment:

558 units

Issuance Resolution Date

: Aug. 9(Fri)

Condition Determination Date

: Aug. 19 (Mon)

Payment Date (Public Offering): Aug. 26 (Mon)Constant Value:¥460,000

Offer Price:¥448,500 (discount of 2.5%)

Delivery/Settlement Date (Public Offering) : Aug. 27 (Tue)Issue Price:¥432,860

Payment Date (Third-party Allotment)

Proceeds (including OA):¥4,269 million: Sep. 25(Wed)Changes in Unit Price and Trade Value
Trade Volume（％）

TSE REIT index

NRF Unit Price（unit）

120

9,000

Aug. 9Sep. 30

Aug. 19￥570,000

Issuance

Condition
Resoletion Date Determination Date
￥487,500￥460,000

110

Jul.9

8,000

7,000

6,000

TSE REIT Index￥504,000

1,510.10

5,000

100
4,000

TSE REIT Index
1,377.87

3,000

90

TSE REIT Index

1,346.55

80

Jul-13

Jul-13

Jul-13

Jul-13Aug-13

Aug.9
Aug-132,000

TSE REIT Index
1,347.75

Aug-13 Aug.19Aug-13

1,000

0

Aug-13

Sep-13

Sep-13

Sep-13

Sep-13

Sep-13*TSE REIT Index and NRF’s unit price are indicated with the closing price of July 9 stated as 100.

20

Characteristics of NRF

21

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

22

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

130StoresHotelsWarehouses

120

110
100
90

80
1990

1995

2000

2005

2013

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

Rental Housing Owned by J-REITs

Properties Owned by NRF

120.0

100.0

102.7

 Changes in Occupancy Rate

[Tokyo’s 23 Wards]

100.3

100.6

100.6

99.7
96.6

100.0

99.0

(%)
110

104.0
100.9

100.0
100.3

99.6

99.0

99.2

96.6

98.3

96.5

88.2

89.7

[Nationwide]

Properties Owned by NRF

Rental Housing Owned by J-REITs

Average of Properties Owned by NRF 95.4%

100

96.4

92.8

90.5

90.2

88.8

89.0

80.0

90
Average of Rental Housing Owned by J-REITs 94.5%

60.0

80

40.0

70
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.

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 statistical data provided by ARES.

23

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

15,253200

15,415180
Singles/
DINKs 160
(158%)

13,157140
Total
Number ofHouseholds(124%) 120

Over 50% of the total
number of households

12,318（％）
16

15,268Peak of Numberof Households

13,757

14,000[Nationwide]

12,000Main target tenant classes⇒Annual Income ¥4 million～¥9 million（ approx. 50% of total household）

12

8

4

100

10,000

80

1995

2000

2005

2010

2015

2020

2025

2030

0

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)

Aｔ 14th Fiscal Period End
Core Units
Unit Ratio(Occupancy Rate
Characteristics：：

96.6 %)： Single/DINKs units
in Greater Tokyo Area

8,016 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 %97.4 %)： Family unitsin Major Regional Cities

596 units Changes in Occupancy Rate of Core Units

Small
Area

（％）
Unit Ratio：(Occupancy Rate
Characteristics

：

4.1 %
92.2 %)

100： Expensive units
in Central Tokyo

96.9

380 units

Number of subject
housing units

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

80
¥150,000
50 sq. meters
Unit Ratio：(Occupancy Rate
Characteristics

：

Large
Area Number of subject
housing units

2.5 %
92.0 %)High
Rent： Family units
in Central Tokyo/Suburbs

Average 96.1 ％60

232 units* Figures do not include data on stores.

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

approx. ¥97 thousand

・Leasable Units

9,269 units

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
End
End
End
End
End
End
End
End
End
End
End
End
End
End

・Average Leasable Floor Area Per Unit approx. 29 sqm

24

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 amountNet change

Change in Expected Yield
Expected yield of single-room apartments(Jonan area (Meguro and Setagaya wards))

（％）

6.5

4,000

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

3,500

6.0

3,000
2,500

5.5

2,000
1,500

5.0

1,000
500

4.5

0
-500
-1,0002007/10

2008/10

2009/102010/10

2011/10

2012/102013/104.0
2007/10Source: Created by NREAM based on the Investment Trust Association, Japan’s Statistics on Real Estate Investment Corporations and public
documents of listed J-REITs.

（unit）

2009/102010/10

2011/10

2012/102013/10

Projections on Number of Households

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

18,000160,000

2008/10Source: Japan Real Estate Institute’s Real Estate Investor’s Survey

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

127,402

120,000
96,817100,000

12,00092,66780,00070,52557,01360,00057,36754,0298,730,000
households

7,500,000
households
6,000

40,00020,000
0

0

2005

2006

2007

2008

2009

2010

2011

2012

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).

25

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

23.1%

40.0%
Properties acquired throughinformation from or withbrokerage of Nomura Real Estate
Development

36.9%

PRIME URBAN
Meguro Ohashi Hills

Sponsor Pipeline
60.0%

URBAN STAGE
Shibaura LOFT

26

Portfolio Status
Building Age

Diversification Within Assets
Top 5 Properties¥17.43 billion

Over 10 years

Improve portfolio stability
through promotion ofdiversification

Considering the combination ofvarious building age to avoid thebias of large-scale repair
expenses⇒Top 10 Properties 19.2%⇒Average Building Age
10.0 Years
Other 145 Properties¥130.90 billion

Investment Area

Top 10 Properties¥31.01 billion

5-10 years

Floor Area Per Unit

Other Areas

3-5 years

Over 70 sqm

Retail & Office50-70 sqm

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 81.2%

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

Nearest Station on FootOver 10 min.

90.6%

Tokyo (23 wards)

Within 5 min.

Units Per Property

Selection focusing onaccessibility to the nearest
railway stations

Investing in properties withstrong lease-up potential in ashort timeframe⇒Within 10 min. 93.8 %⇒Average Unit Per Property
59 Units
5-10 min.

30-50 sqm

Under 30 sqm

Over 100 Units

Under 30 Units

50-100 Units

30-50 Units*In the above graphs, “floor area per unit” as of the end of November 2013 is based on the number units while other figures are based on acquisition price.

27

Appraisal Value Status
Appraisal Value
Appraisal Value Details
13th FP End Appraisal Value (A)*¥154,483 million

14th FP End Appraisal Value (B)¥155,472 million

 Increase 109 properties ( 070.3 %) Flat19 properties ( 012.3 %) Decrease 27 properties ( 017.4 %)+ ¥989 million

Difference (B)-(A)Total

155 properties ( 100.0 %)[Reference]
 BPS

：

¥467,887

 NAV per Unit：

¥438,056

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

5.70

Average Cap Rate
5.58

5.57

5.55

5.50

5.47

5.46

5.41

（ - 0.05）

Book-to-Market Ratio

5.34（ - 0.07）

5.30
5.10

0.94
4.90

0.90

0.90

0.91

0.92

0.95
（ + 0.01）

0.96（ + 0.01）

（x )

1.10
1.05

5.29

（ - 0.05）

1.00

0.97

0.95

（ + 0.01）

0.90
0.85

4.70

7th FP

8th FP

9th FP

10th FP

11th FP

12th FP

13th FP

14th FP*13th FP End Appraisal Value” includes the appraisal value at the time of acquisition of the 7 properties acquired during the 14th FP.
It also excludes the appraisal value of 4 property disposed during the 13th FP.

28

Changes in Revenue
Changes in Rent per Tsubo and Occupancy Rate (11th FP End-15th FP End (forecast))[Rent per Tsubo](Rent per Tsubo)

Rent/Tsubo (Greater Tokyo Area)

Rent/Tsubo (Other Areas)

Rent
per Tsubo

12,500Total（Forecast）¥10,662¥10,653¥10,644¥10,737¥10,704

15th FP End[forecast](May 31, 2014)

11th FP End(May 31, 2012)

12th FP End(Nov. 30, 2012)

13th FP End(May 31, 2013)

14th FP End(Nov. 30, 2013)

Total¥10,662¥10,653¥10,644¥10,737¥10,704

GreaterTokyo¥12,325¥12,280¥12,264¥12,349

－

Other
Areas

¥7,302¥7,306¥7,302¥7,360－11th FP End(May 31, 2012)

12th FP End(Nov. 30, 2012)

13th FP End(May 31, 2013)

14th FP End(Nov. 30, 2013)

15th FP End[forecast](May 31, 2014)

Total

96.2%

96.2%

96.4%

96.2%

96.4%

Greater
Tokyo

95.5%

95.7%

96.1%

95.9%

－

Other
Areas

97.7%

97.0%

97.2%

96.6%

－

11th FP End(May 31, 2012)

12th FP End(Nov. 30, 2012)

13th FP End(May 31, 2013)

14th FP End(Nov. 30, 2013)

15th FP End[forecast](May 31, 2014)

14.8％

9.7％

13.2％

10.0％

14.6％

Rent/Tsubo (Total)

15,000Details

10,000

7,500

5,000
11th FP End(May 31, 2012)

12th FP End(Nov. 30, 2012)

13th FP End(May 31, 2013)

14th FP End(Nov. 30, 2013)

15th FP End [forecast](May 31, 2014)[Occupancy Rate]（％）

Occupancy Rate (Greater Tokyo Area)

100.0

97.5

Occupancy Rate (Other Areas)

Occupancy Rate (Total)

Occupancy
Rate（Forecast）

Total

96.2%

96.2%

96.4%

96.2%

96.4%

Details

95.0(Reference)

92.5
Turnover
Ratio

Total

90.0
11th FP End(May 31, 2012)

12th FP End(Nov. 30, 2012)

13th FP End(May 31, 2013)

14th FP End(Nov. 30, 2013)

15th FP End [forecast](May 31, 2014)29

Portfolio Map
Saitama
Kawaguchi

Greater Tokyo Area

121 Properties

Chiba

Ikebukuro
Takadanobaba
Ueno

Nishi
Funabashi

Kichijoji
Shinjuku

Tokyo
Shibuya

Urayasu

Shinagawa

Other Areas 34 Properties
Sapporo13 properties

Sendai5 properties

Kanagawa

Osaka
6 properties

Haneda Airport

Nagoya5 properties
Yokohama

Fukuoka
5 properties

30

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 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 Akasaka
PRIM E URBAN Tamachi
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
PRIM E URBAN M eguro Ohashi Hills
PRIM E URBAN Hakusan
PRIM E URBAN Yotsuya Gaien Higashi

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
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
M eguro-ku, Tokyo
Bunkyo-ku, Tokyo
Shinjuku-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
956,000
941,000
408,000
1,170,000
707,000
2,030,000
1,200,000
1,320,000
886,000
536,000
464,000
3,580,000
893,000
1,700,000

Percentage ofTotal (%)
2.2
0.7
0.5
0.5
0.5
0.5
1.4
1.0
0.7
0.6
0.8
0.7
1.8
0.4
0.6
0.4
0.7
0.8
1.2
1.4
1.7
0.9
0.6
0.6
0.3
0.7
0.4
1.3
0.7
0.8
0.5
0.3
0.3
2.2
0.6
1.0

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
1,062.05
1,107.36
439.56
1,277.04
793.872,087.70
1,444.40
1,302.42
1,008.39
655.27453.772,955.74
1,069.82
1,759.11

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
25
48
19
52
32
90
29
49
32
22
24
99
42
51

Occupancy Rate
(M ay 2013)(%)
96.9
100.0
96.9
100.0
100.0
97.5
99.3
100.0
98.5
95.4
100.0
97.4
96.9
94.4
100.0
94.8
100.0
100.0
97.1
97.2
100.0
98.1
100.0
100.0
88.6
96.1
97.2
94.7
94.0
95.9
100.0
84.2
100.0
100.0
96.4
98.0

31

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 Nishi Shinjuku I
PRIM E URBAN Nishi Shinjuku II
PRIM E URBAN Shinjuku Naitomachi
PRIM E URBAN Nishi Waseda
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 Shinagawa Nishi
PRIM E URBAN Osaki
PRIM E URBAN Omori
PRIM E URBAN Denenchofu M inami
PRIM E URBAN Nakano Kamitakada
PRIM E URBAN Nishi Ogikubo
PRIM E URBAN Otsuka
PRIM E URBAN M onzen Nakacho
PRIM E URBAN Kameido
PRIM E URBAN Sumiyoshi
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 Shinyurigaoka
PRIM E URBAN Urayasu
PRIM E URBAN Gyotoku I
PRIM E URBAN Gyotoku II
PRIM E URBAN Gyotoku Ekimae
PRIM E URBAN Nishi Funabashi
PRIM E URBAN Kawaguchi
URBAN STAGE Azabu Juban
URBAN STAGE Shibaura LOFTURBAN STAGE Hatagaya
URBAN STAGE Ebisu
URBAN STAGE M eguro Aobadai

Location
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
Shinagawa-ku, Tokyo
Shinagawa-ku, Tokyo
Ota-ku, Tokyo
Ota-ku, Tokyo
Nakano-ku, Tokyo
Suginami-ku, Tokyo
Toshima-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Sumida-ku, Tokyo
Sumida-ku, Tokyo
Edogawa-ku, Tokyo
Edogawa-ku, Tokyo
Edogawa-ku, Tokyo
Kawasaki-shi, Kanagawa
Urayasu-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Funabashi-shi, Chiba
Kawaguchi-shi, Saitama
M inato-ku, Tokyo
M inato-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
M eguro-ku, Tokyo

Acquisition Price(thousands of yen)
1,290,000
1,000,000
512,000
503,000
835,000
840,000
645,000
413,000
885,000
624,000
1,700,000
824,000
900,000
640,000
435,000
794,000
2,200,000
705,000
552,000
1,180,000
668,000
700,000
637,000
958,000
1,210,000
840,000
635,000
741,000
476,000
772,000
2,170,000
991,000
1,510,000
452,000
1,030,000
1,190,000

Percentage ofTotal (%)
0.8
0.6
0.3
0.3
0.5
0.5
0.4
0.3
0.5
0.4
1.0
0.5
0.6
0.4
0.3
0.5
1.4
0.4
0.3
0.7
0.4
0.4
0.4
0.6
0.7
0.5
0.4
0.5
0.3
0.5
1.3
0.6
0.9
0.3
0.6
0.7

Leasable Floor Area(sqm)
1,459.86
1,162.55
578.18507.11
874.15
1,049.73
835.05576.201,027.44
961.252,106.16
1,190.70
1,100.17
818.75543.09944.993,207.92
1,117.34
813.52
1,886.50
991.62
1,095.91
905.81
1,437.84
1,708.19
1,264.84
1,151.36
1,244.00
778.191,237.80
2,477.11
1,222.13
1,905.39
650.601,184.98
1,464.14

Leasable Units(units)
60
46
14
28
33
41
33
23
38
46
99
54
44
33
24
46
118
52
40
77
49
53
45
68
64
60
52
58
37
60
98
40
68
38
35
40

Occupancy Rate
(M ay 2013)(%)
98.4
100.0
100.0
100.0
94.2
87.7
93.9
100.0
90.1
93.8
97.0
98.1
96.0
96.1
100.0
90.4
95.8
100.0
100.0
97.4
100.0
98.1
97.8
89.7
100.0
96.7
94.2
100.0
91.9
96.7
89.3
97.5
93.9
100.0
94.9
85.7

32

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
URBAN STAGE Gakugei Daigaku
URBAN STAGE Kachidoki
URBAN STAGE Shinkawa
URBAN STAGE Nihonbashi Yokoyamacho
URBAN STAGE Nihonbashi Hamacho
URBAN STAGE Hongo Ikizaka
URBAN STAGE Naka Ochiai
URBAN STAGE Ochiai
URBAN STAGE Shinjuku Ochiai
URBAN STAGE M ejiro
URBAN STAGE Kagurazaka
URBAN STAGE Roka Koen
URBAN STAGE Kamiuma
URBAN STAGE Sangen Jaya
URBAN STAGE Chitose Karasuyama
URBAN STAGE Sangen Jaya II
URBAN STAGE Komazawa
URBAN STAGE Karasuyama
URBAN STAGE Kamikitazawa
URBAN STAGE Yoga
URBAN STAGE Oimachi
URBAN STAGE Oimachi II
URBAN STAGE Yukigaya
URBAN STAGE Ikegami
URBAN STAGE Nakano
URBAN STAGE Takaido
URBAN STAGE Komagome
URBAN STAGE Ikebukuro
URBAN STAGE M ukojima
URBAN STAGE Kasai East
URBAN STAGE Ekoda
URBAN STAGE Itabashi Kuyakushomae
URBAN STAGE Asakusa
URBAN STAGE M achiya
URBAN STAGE M achiya South Court
URBAN STAGE M usashi Koganei

Location
M eguro-ku, Tokyo
Chuo-ku, Tokyo
Chuo-ku, Tokyo
Chuo-ku, Tokyo
Chuo-ku, Tokyo
Bunkyo-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
Ota-ku, Tokyo
Ota-ku, Tokyo
Nakano-ku, Tokyo
Suginami-ku, Tokyo
Toshima-ku, Tokyo
Toshima-ku, Tokyo
Sumida-ku, Tokyo
Edogawa-ku, Tokyo
Nerima-ku, Tokyo
Itabashi-ku, Tokyo
Taito-ku, Tokyo
Arakawa-ku, Tokyo
Arakawa-ku, Tokyo
Koganei-shi, Tokyo

Acquisition Price(thousands of yen)
916,000
2,290,000
2,250,000
3,530,000
1,470,000
647,000
655,000
324,000
635,000
1,260,000
2,640,000
362,000
900,000
755,000
730,000
539,000
396,000
344,000
738,000
1,150,000
530,000
1,100,000
970,000
1,460,000
472,000
1,080,000
412,000
3,310,000
487,000
940,000
385,000
940,000
350,000
210,000
1,740,000
2,390,000

Percentage ofTotal (%)
0.6
1.4
1.4
2.2
0.9
0.4
0.4
0.2
0.4
0.8
1.6
0.2
0.6
0.5
0.5
0.3
0.2
0.2
0.5
0.7
0.3
0.7
0.6
0.9
0.3
0.7
0.3
2.0
0.3
0.6
0.2
0.6
0.2
0.1
1.1
1.5

Leasable Floor Area(sqm)
1,109.87
4,524.00
3,600.61
5,926.17
2,026.44
662.581,237.98
517.53
1,053.39
1,755.52
2,854.96
567.201,739.86
1,018.72
1,774.01
810.98572.41507.52
1,384.45
1,773.05
722.701,794.85
1,536.59
2,456.48
801.301,746.20
991.94
4,376.95
1,108.91
1,884.62
872.491,742.64
876.70455.194,141.56
5,999.80

Leasable Units(units)
41
145
46
124
52
27
18
32
28
65
100
34
37
47
27
17
26
28
29
54
45
93
94
95
51
107
22
131
55
78
35
68
22
26
77
98

Occupancy Rate
(M ay 2013)(%)
85.9
96.0
89.0
92.7
97.6
100.0
94.0
90.9
89.2
85.1
93.6
94.2
100.0
96.5
96.2
100.0
88.8
92.7
86.2
98.5
91.1
100.0
100.0
95.4
90.8
92.6
100.0
93.4
98.1
100.0
100.0
92.7
100.0
95.9
97.6
98.0

33

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
144

Name of Property
URBAN STAGE M usashino Hills
URBAN STAGE Koganei Honcho
URBAN STAGE Hino
URBAN STAGE Kumegawa
URBAN STAGE M usashi Kosugi comodo
URBAN STAGE Kawasaki
URBAN STAGE Tsurumi Teraya
URBAN STAGE Urayasu
URBAN STAGE M inami Gyotoku II
URBAN STAGE M inami Gyotoku III
URBAN STAGE M inami Gyotoku IV
URBAN STAGE Gyotoku Ekimae
URBAN STAGE Gyotoku
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

Location
Koganei-shi, Tokyo
Koganei-shi, Tokyo
Hino-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
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

Acquisition Price(thousands of yen)
1,590,000
725,000
319,000
1,370,000
2,150,000
1,150,000
457,000
277,000
285,000
263,000
256,000
561,000
948,000
131,510,000
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

Percentage ofTotal (%)
1.0
0.4
0.2
0.8
1.3
0.7
0.3
0.2
0.2
0.2
0.2
0.3
0.6
81.2
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
0.5
0.7
0.3
0.4
0.4
0.7
0.4
0.5
0.9
2.2

Leasable Floor Area(sqm)
2,961.06
1,604.72
994.682,610.05
3,692.44
1,706.46
952.06437.94611.61
542.69535.08927.33
1,766.47
188,028.26
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
15,459.57

Leasable Units(units)
80
43
54
91
56
80
50
27
37
33
32
46
77
6,812
60
64
112
33
36
53
36
60
54
36
42
27
36
58
60
43
46
58
104
48
57
79
310

Occupancy Rate
(M ay 2013)(%)
91.5
95.0
92.6
98.5
96.8
97.8
98.0
96.3
78.4
93.9
84.6
91.3
93.5
95.9
100.0
100.0
95.7
97.4
96.8
100.0
100.0
96.7
95.7
94.4
97.6
92.6
97.2
92.1
100.0
100.0
100.0
93.1
90.4
97.9
91.4
93.8
96.0

34

Portfolio

#
145
146
147
148
149
150
151
152
153
154
155

Name of Property
URBAN STAGE Kita 3 Jo DoriURBAN 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
Sapporo-shi, Hokkaido
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)
1,450,000
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
161,917,696

Percentage ofTotal (%)
0.9
0.6
0.8
1.7
0.6
1.1
0.5
0.2
0.2
0.4
0.3
18.8
100.0

Leasable Floor Area(sqm)
5,094.29
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
89,138.28
277,166.54

Leasable Units(units)
114
65
101
250
80
82
67
34
39
65
48
2,457
9,269

Occupancy Rate
(M ay 2013)(%)
100.0
100.0
100.0
99.2
96.2
88.3
96.9
94.5
89.3
98.7
93.9
96.6
96.2

35

Changes in Financial Performance
9th FP

10th FP

11th FP

12th FP

13th FP

14th FP

Operating Revenues

million y en

4,510

4,445

5,250

5,174

5,257

5,406

Operating Profits

million y en

2,177

2,098

2,507

2,452

2,433

2,558

Net Income

million y en

1,465

1,477

1,856

1,875

1,876

1,965

Asset Total

million y en

140,534

140,152

156,780

156,703

156,576

168,019

Interest-bearing Debt Total

million y en

74,606

74,216

83,182

83,092

83,002

89,840Net Asset

million y en

63,26563,27770,81870,836

70,83875,236Return on Assets (ROA)

%

2.2

2.1

2.4

2.4

2.4

2.4

Return on Equity (ROE)

%

4.6

4.7

5.2

5.3

5.3

5.4

FP End Capital Adequacy Ratio

%

45.0

45.1

45.2

45.2

45.2

44.8

LTV

%

53.1

53.0

53.1

53.0

53.0

53.5

times

3.4

3.6

4.3

4.5

4.6

4.8

%

1.61

1.47

1.28

1.27

1.24

1.17

y ears

2.8

2.5

3.0

3.0

3.3

3.5

million y en

3,452

3,424

4,016

4,010

3,953

4,118

%

5.20

5.06

5.34

5.31

5.25

5.03

FFO

million y en

2,251

2,285

2,817

2,850

2,833

2,934

Portfolio

properties

143

145

152

153

152

155

Acquisition Price Total

million y en

132,890135,046

149,862

150,587

150,966

163,302

Book Value Total

million y en

133,564

135,196

150,099

149,972

149,650

160,219

Appraisal Value Total

million y en

121,042

124,512141,011

141,836

143,063

155,472

NAV per Unit

thousand y en

404

418

408

415

425

438

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/[(Total Asset Value at FP Start+Total Asset Value 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

36Interest-bearing Debts
Lender Diversification

Maturity Diversification
FP of Repayment

15th Fiscal Period(ending May 31, 2014)

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)
21st Fiscal Period(ending May 31, 2017)22th Fiscal Period(ending Nov. 30, 2017)23th Fiscal Period(ending May 31, 2018)
24th Fiscal Period(ending Nov. 30, 2018)
26th Fiscal Period(ending Nov. 30, 2019)27th Fiscal Period(ending Nov. 31, 2019)28th Fiscal Period(ending Nov. 30, 2020)
29th Fiscal Period(ending May 31, 2021)

Amount of Repayment¥9,290 million¥6,660 million¥7,790 million

LenderAmountInterest Rate

Date of Loan

Date of Repayment

2 Lenders¥2,000 million

2.14360%

Feb. 27, 2007

Feb. 27, 2014

1 Lender¥2,000 million

2.13625%

Feb. 27, 2007

Feb. 27, 2014

¥1,700 million

0.78591% （注4）

Aug. 26, 2011

Feb. 27, 2014

6 Lenders¥3,500 million

0.78591% （注4）Sep. 30, 2011

Feb. 27, 2014

1 Lender¥40 million

2.10000%

Aug. 27, 2009

（注2）

Short-term Loan
￥15,950 million

1 Lender¥50 million

2.03000%

Feb. 26, 2010

（注3）

6 Lenders¥3,170 million

0.72091%

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

（注2）

1 Lender¥50 million

2.03000%

Feb. 26, 2010

（注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

（注2）

1 Lender¥50 million

2.03000%

Feb. 26, 2010

（注3）

¥9,700 million

1.00900%

Feb. 27, 2012

Aug. 27, 2015

1 Lender¥40 million

2.10000%

Aug. 27, 2009

（注2）

1 Lender¥50 million

2.03000%

Feb. 26, 2010

（注3）

1 Lender¥4,700 million

1.00000%

Dec. 26, 2011

Dec. 26, 2015

1 Lender¥40 million

2.10000%

Aug. 27, 2009

（注2）

1 Lender¥50 million

2.03000%

Feb. 26, 2010

（注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

（注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

¥3,920 million

3 Lender¥3,920 million

1.08500%

Aug. 27, 2012

Aug. 27, 2017

¥5,420 million

6 Lender¥5,420 million

1.12013%

Aug. 27, 2012

Feb. 27, 2018

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, 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¥1,000 million

1.68200%

May. 23, 2013

May. 27, 2021

1 Lender¥3,500 million

1.62500%

May. 23, 2013

May. 27, 2021

－

－

－

¥5,000 million

1.21000%

Feb. 25, 2011

Feb. 25, 2016

¥5,000 million

1.03000%

Feb. 24, 2012

Feb. 24, 2017

－

－

－

¥9,790 million¥4,790 million¥10,530 million¥3,150 million¥5,400 million¥6,000 million¥4,500 million¥5,000 million¥5,000 million¥89,840 million

Category

3 Lenders

5 Lenders¥79,840 million
19th Fiscal Period(ending May 31, 2016)
21st Fiscal Period(ending May 31, 2017)(20 Lenders)

19 Lenders
Investment
Corporation Bond
Investment
Corporation Bond

－

－

－

Lender

Major
Banks
(4)

Trust
Banks
(4)

The Bank of Tokyo-Mitsubishi UFJ

12,500Sumitomo Mitsui Banking

12,500Mizuho Corporate Bank

12,500Resona Bank

1,000

Mitsubishi UFJ Trust and Banking

7,220

Sumitomo Mitsui Trust Bank

5,520

The Nomura Trust and Banking

3,700

Mizuho Trust & Banking

RegionalBanks(4)￥83,890 million

The Iyo Bank
The Bank of Fukuoka

1,100

The Chiba Bank

7,730

The Tokyo Tomin Bank

2,520

Taiyo Life Insurance

1,500(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.

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

Others
(3)

750
3,000
500

Nippon Life Insurance Company

1,000

Development Bank of Japan

2,400

Shinkin Central Bank

1,000

Aozora Bank
Total
（20）

Bond

500
2,100

Mitsui Sumitomo InsuranceLong-term Loan

Amount(millions of yen)

800
79,840First Series Unsecured
Investment Corporation
Bonds
Second Series Unsecured
Investment Corporation
Bonds
Total

5,000
5,000
10,00037

Fund Profile
Structure

History
July 28, 2006

Asset Custodian

General Administration(Financial Agent)

The FundGeneral Administration

Financial Agent
Agreement

Administration ofUnitholders Register
Management ofSpecial Accounts
Mitsubishi UFJ
Trust and Banking Corporation

Asset Custody
Agreement

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

Administration
Agreement, etc.

General Administration(Accounting, etc.)

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.

Nomura Real Estate Residential Fund, Inc.
Accounting Service
Agreement

August 4, 2006
Applied for registration under Article 188 of the Investment
Trust Law.

Unitholders Meeting

Heiseikaikeisha Tax
Corporation

Board of Directors Meeting
Financial Institutions, etc.

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).

AuditorErnst & Young ShinNihon LLC

Repaymentof Principal& Interest

Debt
Finance
Debt

Investment
Residential Properties(Real Estate Related Assets)
Property
Management
Property Management
Companies

Select the best property
management companies
for each property

CapitalInvestment

Asset

Trade

February 14, 2007
Listing on the Tokyo Stock Exchange.

Unitholders

EquityRent, etc.

Unitholders

Distribution
Property Management
Agreement

Instructions for
Rent &
Management
Rental Strategies,
Plans for
Repairs, etc.

Asset Management
Services Agreement
Information & ResearchService Providers

Asset Management Company
Property
Information

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

38

Asset Management Company Overview
Organization Chart (as of November 2013)■

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

39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.