For Immediate Release

June 15, 2015
Nomura Real Estate Office Fund, Inc.
Yoshiyuki Ito, Executive Director(Securities Code: 8959)
Asset Management Company:
Nomura Real Estate Asset Management Co., Ltd.
Norio Ambe, President and Chief Executive Officer
Inquiries:
Shoji Yoshihara, General Manager, NOF Investment Management
TEL: +81-3-3365-0507
EMAIL:nreof8959@nomura-re.co.jp

Nomura Office Fund Announces Financial Results for the Fiscal Period Ended April 30, 2015

Nomura Real Estate Office Fund, Inc. (“Nomura Office Fund”, “NOF” or the “Fund” hereafter) (TSE: 8959) (URL:
http://www.nre-of.co.jp/english/), announces its financial results for the twenty-third fiscal period (November 1,
2014 to April 30, 2015).
1. Outline of Financial Results for the Fiscal Period Ending October 31, 2014
(Omit fractions under one million yen)
(Ratio of increases and decreases in comparison with the previous period)(1) Operating Results
Operating Revenues
Period Ended
April 30, 2015
October 31, 2014

Millions of

yen

(%)

13,025
13,105

Millions of yen

3,613
3,941

Millions of yen(-0.6)
(6.9)

5,150
5,441

Net Income
per Unit

Net Income
Period Ended
April 30, 2015
October 31, 2014

Operating Profits(%)(-8.3)(8.6)

Ordinary Income(%)

Millions of yen(%)(-5.3)
(6.6)

3,614
3,942

(-8.3)(8.6)

ROE(Return on
Equity)(Note 1)

ROA(Return on
Assets) (Note 2)

Ordinary Income
to Operating
Revenues Ratio

%

%

%

yen

9,699
10,579

1.7
1.8

0.8
0.9

27.7
30.1

(Note 1)ROE is equal to a fiscal period's Net Income/{(Net Assets at the beginning of the period + Net Assets at the end of the period)/2 } × 100.
(Note 2)ROA is equal to a fiscal period's Ordinary Income/{(Total Assets at the beginning of the period + Total Assets at the end of the period)/2 } × 100.

(2) Distributions
Cash
Distributions
per Unit

Total CashDistributions(Note1)

Period Ended
April 30, 2015
October 31, 2014

yen

9,699
10,579Distributions in
Excess of Net
Income per
Unit

Distributions
in Excess of
Net IncomeyenMillions of yen

Millions of yen

3,613
3,941

0
0

0
0

(Note 1) Payout ratio = Total Cash Distributions (excluding distribution in excess of earnings) ÷ Net income ×100

－1－

Distributions
to Net Asset
Ratio

PayoutRatio(Note2)

%

99.9
99.9

%

1.7
1.8

(3) Financial Position
Total Assets
Period Ended
April 30, 2015
October 31, 2014

Capital Adequacy
Ratio

Net Assets

Millions of yen

Millions of yen

439,861435,644

Net Assets per Unit%

215,198
215,525

yen

48.9
49.5

577,630
578,510(4) Cash Flows
Cash Flows fromOperating
Activities
Period Ended
April 30, 2015
October 31, 2014

Cash Flows from
Investing Activities

Millions of yen

Cash Flows from
Financing Activities

Millions of yen

4,598
6,967

Cash and Cash
Equivalents
at End of Period

Millions of yen-5,931-1,303

Millions of yen

887-3,971

31,74832,193

2. Forecasts of Financial Results for the Fiscal Period Ending October 31, 2015 (From May 1, 2015 to
October 31, 2015)
Operating
Revenues
Period Ending
October 31, 2015

Operating
Profits

Ordinary
IncomeNet Income

Millionsof yen(%)

Millionsof yen(%)

Millionsof yen(%)

Millionsof yen(%)

13,030

(0.0)

4,909

(-4.7)

3,398(-6.0)

3,339(-6.0)Cash
Distributions
per Unit

Distributions
in Excess of
Net Income
per Unit

yen

yen

9,120

0

(Reference) Forecast Net Income per Unit: JPY9,120

3. Others(1) Changes in Accounting Policies
a. Changes in accounting policies due to revisions in accounting standards: Noneb. Changes not mentioned in a. above: Nonec. Changes in accounting estimate: None
d. Retrospective restatement: None
(2) Number of investment units issued
a. The number of investment units issued (including treasury investment units)
As of April 30, 2015
372,553
As of October 31, 2014
372,553b. The number of treasury investment units
As of April 30, 20150
As of October 31, 2014
0(Note) Net income per unit is calculated by dividing net income by the weighted-average number of units outstanding
for the respective six-month period.
Forecast Statements
The forecasts above are based on information currently available to NOF and on a certain condition deemed tobe reasonable. The actual results may vary due to many factors. Accordingly, NOF does not guarantee the cash
distribution amount identified above.

－2－

Assumptions for Forecasts of Financial Results for the Fiscal Period Ending October 31, 2015
Item
Assumptions
Period・ Twenty-forth fiscal period: May 1, 2015 through October 31, 2015
・ The Fund assumes that the investment portfolio consisting of 55 properties owned by the Fund
Investment
as of the end of the 23rd fiscal period will remain unchanged up to the end of the 24th fiscal
Portfolio
period (October 31, 2015).
・ In practice, the investment portfolio is subject to potential change.
・ The forecast of operating revenues for the 24th fiscal period is based upon the operating
revenues from 55 properties owned by the Fund as of end of the 23rd fiscal period.
Operating・The forecasts of the level of the rent and vacancy rates are based on the trend of tenants,
Revenues
competing buildings in the neighborhood, and the recent real estate market trend, etc.
・ Assumed that there is no rent in arrears and nonpayment of the rent.
・ In general, the fixed asset taxes and urban planning taxes imposed on the properties in the tax
year (including the date) of transaction are distributed to the seller and the purchaser on a daily
pro-rata basis and settled at the time of acquisition, and such taxes are deemed as the acquisition
costs, not expenses.
・ However, as to the 54 out of the 55 properties currently owned, of the estimated amount ofannual tax, ¥1,227 million will be allocated as rental business expenses.
・ Outsourcing expenses are estimated at ¥1,578 million.
・ As for the repair and maintenance, the Asset Management Company (Nomura Real Estate AssetManagement Co., Ltd.) estimates the required amounts for the respective properties for each ofOperatingthe fiscal periods based on the medium- and long-term repair plans. However, it is possible thatExpenses
the actual repair expenses for the fiscal periods may differ significantly from the estimates since(i) an unforeseeable event might cause serious damage to a building requiring emergent repair
expenditure, (ii) amounts might vary year by year, and (iii) certain types of repair expenses are
not required every year.
・ Rental revenues after deducting the rental expenses (including depreciation costs) is estimated at¥6,840 million (excluding profits on sale of real estate, etc.). Depreciation costs are estimated at¥1,894 million.
・ The operating expenses other than the rental expenses (including asset custody fees and generaladministration fees) are estimated at ¥1,280 million.
Non-Operating ・ Interest payable is estimated at ¥1,282 million.
Expenses・ Loan-related expenses are estimated at ¥101 million.
・ The amount of the Fund’s interest-bearing debts outstanding as of today is ¥162,450 million ofloan and ¥34,500 million of investment corporation bonds.
Interest-Bearing ・ Concerning the borrowings of ¥11,750 million which will mature by the last business day of the
Debts
24th fiscal period (October 31, 2015), the Fund assumes that the entire amount will be
refinanced excluding the scheduled repayment of ¥250 million.
・ The Fund assumes that there will be no changes in debt amounts other than the above.
Investment Units ・ The Fund assumes that the number of investment units is 372,553 units outstanding as of today.
・ Cash distribution per unit is calculated according to the Fund’s distribution policy outlined in its
Cash
Articles of Incorporation.
Distribution per・Cash distribution per unit may vary due to various factors, including changes in the investment
Unit
portfolio, changes in rent income caused by the tenant replacements, and unforeseen repairs.
Distribution in
Excess of Net
・ The Fund does not currently plan any distribution in excess of net income per unit.
Income per Unit
・ The Fund assumes that there will be no amendments in legislation, taxation, Japanese GAAP,
listing requirements and Investment Trusts Association regulations, which affect the above
Othersforecasts.
・ The Fund assumes that there will be no material changes in general economic conditions andreal estate markets.

－3－4. Financial Statements(1) Balance Sheets
22nd Period
As of Oct. 31, 2014(¥000)

AssetsCurrent assets
Cash and bank deposits
Cash and bank deposits in trust
Rental Receivables
Prepaid expenses
Deferred tax assets
Consumption taxes receivable
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Lease assets in trust
Accumulated depreciation
Lease assets in trust, net
OthersTotal property, plant and equipment
Intangible assets
Leasehold rights
Leasehold rights in trust
Other intangible assets in trust
Total intangible assets
Investments and other assets
Long-term prepaid expenses
Security deposits
Total investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets－4－

23rd Period
As of Apr. 30, 2015(¥000)

14,811,727
17,382,219
232,071
84,47036367,030
32,877,557

14,860,960
16,887,746
203,951
125,098
15
6,850
322,420
32,407,043

40,114,670(5,498,287)
34,616,382
97,422(50,233)
47,189713,821(292,044)
421,777
35,223(11,237)
23,986
83,320,976
98,752,439(25,235,480)
73,516,959
262,941(198,312)
64,6281,018,792(638,280)
380,512410,113(223,759)
186,354
204,369,361
43,691(11,828)
31,862
42,693397,022,683

41,933,805(5,997,834)
35,935,971
109,682(54,951)
54,731
797,865(315,017)
482,848
47,393(13,748)
33,64586,784,496
99,750,133(26,464,212)
73,285,921
264,016(202,929)
61,087
1,039,553(667,270)
372,283
434,251(240,494)
193,757
204,369,361
43,691(15,847)
27,843
106,540
401,708,488

1,900,904
3,232,022
741
5,133,669

1,900,904
3,232,022
725
5,133,653

143,652
410,890554,542
402,710,894

110,492
410,890
521,382
407,363,523

56,20356,203435,644,655

90,45690,456439,861,023

22nd Period
As of Oct. 31, 2014(¥000)

Liabilities
Current liabilities
Trade accounts payable
Current portion of investment corporation bonds
Current portion of long-term debt
Lease obligations in trust
Other accounts payable
Accrued expenses
Accrued income taxes
Accrued consumption taxes
Rent received in advance
Deposits received
Total current liabilities
Non-current liabilities
Investment corporation bonds
Long-term debt
Lease obligations in trust
Security deposits from tenants
Security deposits in trust from tenants
Total non-current liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Surplus
Voluntary reserve
Reserve for reduction entry
Total voluntary reserve
Unappropriated retained earnings (undisposed
loss)
Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets－5－

23rd Period
As of Apr. 30, 2015(¥000)

894,436
11,000,000
24,350,000
8,651
1,250,248
606,337751
596,342
1,917,534
331,584
40,955,886

935,980
10,000,000
18,000,000
8,651
1,380,260
557,803290
1,898,264
76,24832,857,498

28,500,000
128,230,000
25,5816,750,508
15,656,745
179,162,836
220,118,723

24,500,000
144,450,000
21,256
7,022,702
15,811,409
191,805,368
224,662,866

211,430,494

211,430,494

154,176
154,176

154,176
154,176

3,941,262

3,613,486

4,095,438
215,525,932
215,525,932
435,644,655

3,767,662
215,198,156
215,198,156
439,861,023

(2) Statements of Income and Retained Earnings
22nd Period
from May 1, 2014
to Oct. 31, 2014(¥000)

23rd Period
from Nov. 1, 2014
to Apr. 30, 2015(¥000)

Operating revenues
Real estate rental revenues
Other rental revenues

Total operating revenues
Operating expenses
Real estate rental expenses

Asset management fees
Asset custody fees
Administrative service fees
Directors' compensations
Other operating expenses
Total operating expenses
Operating profit
Non-operating revenues
Interest Income

Insurance Income
Reversal of cash distributions payable

OthersTotal non-operating revenues
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bond issuance
costs
Loan arrangement fees
OthersTotal non-operating expenses
Ordinary income
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)－6－

11,747,350
1,358,379
13,105,730

11,601,464
1,423,559
13,025,024

6,403,535
1,070,098
30,051
70,565
7,200
82,9537,664,406
5,441,323

6,597,380
1,043,927
30,08679,9267,200
116,252
7,874,773
5,150,250

2,927
4,288
2,847
1,402
11,466

3,173
10,415
3,272
63
16,925

951,320392,608

929,997377,792

9,808

8,954

96,36260,101
1,510,202
3,942,588
3,942,588
1,346
(20)
1,325
3,941,262－
3,941,262

109,391
126,621
1,552,757
3,614,418
3,614,418
934
21
956
3,613,462
23
3,613,486

(3) Statements of Changes in Net Assets
Previous period(from May 1, 2014 to October 31, 2014)(¥000)
Unitholders' equity
SurplusReserve for
reduction
entry

Voluntary
retainedearnings

Unappropri
ated
retainedearnings(undisposed
loss)

211,430,494

249,697249,697

3,630,008

3,879,706－(95,521)(95,521)

95,521－－－Dividends of surplus

－

－

－

(3,725,530) (3,725,530)(3,725,530)(3,725,530)

Net income

－

－

－

3,941,262

3,941,262

3,941,262

3,941,262－(95,521)(95,521)311,253

215,732

215,732

215,732

211,430,494

154,176

154,176

3,941,262

4,095,438

Unitholders' capital

Balance at beginning ofcurrent period
Changes of items
during period
Reversal of reserve
for reduction entry

Total changes of items
during period
Balance at end ofcurrent period

Voluntary retained
earnings

Total net
assetsTotal
surplusTotal
unitholders'equity215,310,200 215,310,200

215,525,932 215,525,932

Current period(from November. 1, 2013 to April 30, 2014)(¥000)
Unitholders' equity
Surplus
Unitholders' capital

Voluntary retained
earnings

Unappropri
ated
retainedearnings(undisposed
loss)

Total
surplusTotal
unitholders'equity3,941,262

4,095,438

215,525,932 215,525,932

Total net
assetsReserve for
reduction
entry

Voluntary
retainedearnings

211,430,494

154,176

154,176

Dividends of surplus

－

－

－

(3,941,238) (3,941,238)(3,941,238)(3,941,238)

Net income

－

－

－

3,613,462

3,613,462

3,613,462

3,613,462－－－(327,775)(327,775)(327,775)(327,775)

211,430,494

154,176

154,176

3,613,486

3,767,662

Balance at beginning ofcurrent period
Changes of items
during period

Total changes of items
during period
Balance at end ofcurrent period－7－215,198,156 215,198,156

(4) Statements of Cash Distributions

Ⅰ. Unappropriated retained earnings
Ⅱ. Total cash distributions(cash distributions per unit)
Ⅲ.Retained earnings brought forward
Method for calculating distribution amount22nd Period
from May 1, 2014
to Oct. 31, 2014(¥)
3,941,262,129
3,941,238,187(10,579)
23,94223rd Period
from Nov. 1, 2014
to Apr. 30, 2015(¥)
3,613,486,500
3,613,391,547(9,699)94,953In order to qualify for special tax
treatment under Article 67-15 of Special
Taxation Measures Law (Law No. 26 of
1957) , the Fund decided to havemaximum cash distribution amounttreated as deductible dividends, theFunddistributed
theentireunappropriated retained earnings except
for fractional amounts smaller than one
yen per each investment unit. As aresult, the total amount of cash
distribution for this fiscal period was¥3,941,238,187.
Furthermore, the Fund shall not
distribute cash in excess of earnings as
stipulated in Article 34 Item 2 of its
articles of incorporation.

In order to qualify for special tax
treatment under Article 67-15 ofSpecial Taxation Measures Law (Law
No. 26 of 1957) , the Fund decided
to have maximum cash distribution
amount treated as deductible
dividends, the Fund distributed theentireunappropriatedretainedearnings except for fractionalamounts smaller than one yen pereach investment unit. As a result, thetotal amount of cash distribution for
thisfiscalperiodwas¥3,613,391,547.
Furthermore, the Fund shall not
distribute cash in excess of earnings
as stipulated in Article 34 Item 2 ofits articles of incorporation.

－8－(5) Statements of Cash Flows
22nd Period
from May 1, 2014
to Oct. 31, 2014(¥000)Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of long-term prepaid expenses
Amortization of investment corporation bond issuance
costs
Interest income
Interest expenses
Loss on disposal of property and equipment(Increase)Decrease in rental receivables
Decrease in consumption taxes receivable
Increase (Decrease) in trade accounts payable(Decrease) Increse in other accounts payable

Increase (decrease) in accrued consumption taxes(Decrease) in rent received in advance

Increase (decrease) in deposits received
Other, net
SubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Payments for purchases of property, plant and equipment
Payments for purchases of property, plant and equipmentin trust
Reimbursement of security deposits to tenants
Proceeds from security deposits from tenants
Reimbursement of security deposits in trust to tenants
Proceeds from security deposits in trust from tenants

Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term debt
Repayment of long-term debt
Proceeds from investment corporation bonds
Redemption of investment corporation bonds
Payment of investment corporation bonds issuance costs
Distributions to unitholders
Net cash used in financing activities

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period－9－23rd Period
from Nov. 1, 2014
to Apr. 30, 2015(¥000)

3,942,588
1,806,384
10,862

3,614,418
1,845,127
10,918

9,808

8,954

(2,927)
1,343,928
3,129(18,807)
135,535
194,793
57,167596,342(1,590)214,887(19,854)
8,272,247
2,927(1,306,627)(1,017)
6,967,529(3,173)
1,307,789
25,094
28,120(6,850)41,457(74,739)(596,342)(19,270)(255,335)
26,961
5,953,132
3,173(1,356,077)(1,396)
4,598,831(391,303)(5,406,157)(680,978)(952,568)(161,680)
109,595(604,402)
425,377(1,303,392)(132,809)
405,003(584,048)
738,712(5,931,868)

11,700,000(11,950,000)－－－(3,721,940)(3,971,940)
1,692,196
30,501,750
32,193,947

22,470,000(12,600,000)
6,000,000(11,000,000)(43,207)(3,938,995)
887,796(445,240)
32,193,947
31,748,707

Disclaimer
The information above is excerpt of and translated from Brief Report on Closing of Accounting Report (“Kessan
Tanshin”) in Japanese released on June 15, 2015. This report was prepared in English solely for the convenience of andreference by readers outside Japan and should not be considered to be a disclosure statement. The original Japanese
documents always govern the meaning and interpretation. To confirm complete information, please refer to the original.
(Japanese version) http://www.nre-of.co.jp/site/file/tmp-XxPRq.pdf
In general, accounting principles and practices used by real estate investment corporations in Japan (“J-REITs”) in
preparing its financial statements conform to accounting principles generally accepted in Japan (“Japanese GAAP”).
However, they may differ from generally accepted accounting principles applied in certain other countries. Potential
investors should consult their own professional advisors for an understanding of the differences between Japanese
GAAP and generally accepted accounting principles in the United States (“U.S. GAAP”) or other jurisdictions and how
those differences might affect the financial information contained herein.
Estimates for Nomura Office Fund’s future operating results contained in this report are forward-looking statements andare based on information currently available to Nomura Office Fund and its asset management company and are subject
to risks and uncertainties. Consequently, these projections should not be relied upon as the sole basis for evaluating
NOF. Actual results may differ substantially from the projections depending on a number of factors.
This document has been prepared for the purpose of provision of information only, and should not be construed as anoffer, solicitation or commercial conduct of any nature associated with any specific products. Investors wishing topurchase the investment units of Nomura Real Estate Office Fund, Inc. should contact their own securities brokers or
dealers.
It is prohibited to make duplication, reproduction, distribution or use of any part or whole of the information containedin this document without express prior written consent.

－10－