Nippon Building Fund, Inc. 1H 2024 (46th Period) Financial Summary

0CONTENTS

1. Financial Highlights

2

2. Financial Results

8

3. Forecast

14

Disclaimer

11.

Financial Highlights

2

1-1

Financial Highlights (1/4)
Key Points of Financial Forecasts

Occupancy rate

Real estate rental
revenues

EPU

High level in the
98% range

Increase after
bottoming out in 1H/’24

Increase after
bottoming out in 2H/’24

(%)

＊EPU：
Net income (excl. profits and losses from dispositions)/Number of units issued and outstanding（millions of yen）

43,300

100.0

（yen）

10,800Real estate rental revenues (left axis)
Avg. occupancy rate during period (right axis)

EPU
98.7

99.0

10,645

10,60042,90097.8

98.0
42,683

97.4

Increase due to
one-time decreasein expenses

10,46398.0

10,51010,40042,52242,50097.0

10,222
10,20096.0

42,126
42,10042,00495.0

041,7000
94.0
2H/'23

1H/'24

2H/'24

1H/'25

45th

46th

47th

48th

PeriodPeriodPeriodPeriod（Forecast）（Forecast）

3

10,0009,800
0'23.12'24.6'24.12

'25.6

第45期

第46期

第47期

第48期

*The bar graphs of EPU for 2H 2024 and 1H 2025 show approximate figures
assuming that the Split is not made, for comparison with 1H 2024.

1-1 Financial Highlights (2/4)

ActualForecast

1H/2024

2H/2024

1H/2025(46th Period)(47th Period)(48th Period)

PoP change
Total operating revenue

50,254 million yen +2,904 million yen+6.1%

50,568 million yen

45,640 million yen

Operating income

24,643 million yen +3,876 million yen+18.7%

23,599 million yen

19,485 million yen+354 million yen+1.9%

18,903 million yen

19,483 million yen

23,344 million yen +3,831 million yen+19.6%

22,084 million yen

17,880 million yen

Operating income(excl. profits (losses) from disposition)

Net income
Net income(excl. profits (losses) from disposition)

DPU

19,406 million yen

18,107 million yen+308 million yen+1.7%

17,388 million yen

17,878 million yen

13,082 yen+1,582 yen+13.8%

2,400 yen

2,400 yen

DPU：Forecast（Announced February 2024）\12,500 +\582
Number of investment units
issued and outstanding

1,700,991 units-

8,504,955 units

8,504,955 units

Occupancy rate
(Average for the period)

97.8%+0.4pt

98.0%

98.7%

*Distribution per unit and number of units issued and outstanding for the 47th and 48th fiscal periods are after the Split.

41-1 Financial Highlights (3/4)(as of June 30, 2024)

Asset

Debt

EquityTotal assets

Unrealized gains
on appraisal value

1,466.7 billion yen

345.6 billion yen

LTVLong-term fixedinterest rate ratio

Average interest rate

Average maturity

42.4%

88.4%

0.45%

5.30 years

Market cap

NAV per unit *2

957.6

billion yen

607,556

5

yen

Location

23 Wards of Tokyo:

83.2%

Central 5 Wards of Tokyo: 56.8%

Occupancy rate
(Average for the period)*1

97.8%*1 Occupancy rate is the weighted average of the occupancy rate at the end ofeach month on an area basis.
*2 (Unitholders‘ capital at the end of period + reserve for reduction entry at the endof period + reserve for reduction entry for next period (reserve amount –reversal amount)+ unrealized gains on appraisal at the end of period) /number of investment units issued and outstanding at the end of period

1-1Financial Highlights (4/4)

Through stable growth of DPU over the medium to long term andan increase in NAV per unit, we aim to increase unitholder value.

Distributions per Unit (DPU)

NAV per Unit

6

《MEMO》

7

2.

Financial Results82-1 1H/2024 (46th Period) Income Statement (P/L)(millions of yen)

CourseTotal operating revenues
Operating revenues
Real estate lease revenues
Other lease revenues

Profits from dispositions

Total operating expenses
Operating expenses
Lease expenses(excl. depreciation and amortization)
Depreciation and amortization

Asset management fees
Selling, general and administrative expenses

Operating income
Net non-operating income and expenses
Non-operating income
Non-operating expenses

Ordinary income
Extraordinary income (loss)
Income before income taxes
Income taxes

Net income

2H/2023

1H/2024( 45th Period )( 46th Period )Summary of PoP change

PoP Change

47,34950,25445,63542,1263,508
1,714

45,01642,004
3,012
5,237

26,582

AmountPercentage
2,904
6.1%

(millions of yen)

Total operating revenues

-1.4%
-0.3%
-14.1%-3.7%

Real estate rental revenues

25,610

-618
-122
-496
3,522
-972

24,501

23,373-1,128-4.6%

Other rental revenues

16,52815,436-1,092

-6.6%

7,973
1,744
336

7,937
1,847
389

20,767

24,643-1,253
4
1,258-1,2981
1,300

19,513

23,345

19,513
023,3450

19,513

23,344

-35
103
52
3,876
-45
-2
42
3,831
3,831
0
3,831

-0.5%
5.9%
15.7%
18.7%
3.6%
3.4%
19.6%
19.6%
19.6%

-24

Existing properties

-98

-496

Cancellation charge-99

Incidental income-422

Profits from dispositions+3,522

Total operating expenses-972

Operating expenses-1,128

Taxes and public dues

+229

Repair expense-329

Utilities-384

Building management expenses

-470

-48

1,092

1,140

-

19,561

22,252Distribution per unit (JPY)

11,50013,082

2,690
1,582

13.8%
13.8%

97.4
1,700,991

97.8
1,700,991

0.4-

Existing properties--

Profits from dispositions

Units issued and outstanding at the period end-122

Replacement (properties acquired/disposed of)Reserve(+) or reversal(-) fortax purpose reduction entry
Payment of distribution

Occupancy rate(Average for the Period)(%)+2,904

Operating income
Replacement (properties acquired/disposed of)+3,876+23+486+3,522

Asset management fees and SG&A expenses-155【Reference】
NOI from property leasing activities

29,106

29,580473

1.6%

Net non-operating income and expenses-45

Operating income

19,052

19,406354

1.9%

Non-operating expenses+42

17,798

18,107308

1.7%Interest expense+28(excl. profits and losses from dispositions)

Net income(excl. profits and losses from dispositions)92-2 1H/2024 (46th Period) Balance Sheet（B/S）
Assets(millions of yen)
CourseCurrent assets
Cash and cash equivalents
Other current assets

Fixed assets
Tangible fixed assets
Intangible fixed assets
Investments and other assets

Deferred assets
Total assets

2H/2023

1H/2024( 45th Period end )( 46th Period end )Summary of PoP change

PoP Change
AmountPercentage

19,785

19,201

-584

-3.0%

18,884901

17,903
1,298

-981
397

-5.2%
44.1%

1,365,713

1,364,575-1,137-0.1%

1,322,929
35,6777,106

1,321,677
35,663
7,234-1,251
-13
128

-0.1%
-0.0%
1.8%

120
1,385,619

105
1,383,883-14-12.1%-1,736-0.1%

Liabilities and Net Assets
CourseCurrent liabilities
Short-term borrowings
Current portion of
long-term borrowings
Current portion of
investment corporation bonds
Other

2H/2023

1H/2024( 45th Period end )( 46th Period end )PoP Change
AmountPercentage

2 properties disposed-42,662

CAPEX+4,962

Depreciation and amortization, etc.

-7,937

Others+331-

44,00020,000-24,000-54.5%

Liabilities-5,519

7,000

5,000

-2,000-28.6%

Interest-bearing debt

-5,600Long-term borrowings＋1,400Investment corporation bonds-7,0003.5%

Investment corporation bonds

40,00035,000-5,000-12.5%

Long-term borrowings

496,500

521,900

25,400

5.1%

Security deposits received

72,06673,250

1,184

1.6%

(592,500)(586,900)(-5,600)(-0.9%)

679,372
706,247

673,852
710,030-5,519

-0.8%

3,783

0.5%

Unitholders’ capital

673,047

673,047--

Retained earnings

33,20013,687
19,51336,983
13,63823,344

3,783
-48
3,831

11.4%
-0.4%
19.6%

706,247
1,385,619

710,030
1,383,883

3,783

0.5%

-1,736-0.1%

Total liabilities and net assets+44,168--7.5%

Total net assets

1 property acquired

5,000-1,103

Undistributed earnings-1,137

5,000

21,584

Reserve for tax purpose reduction entry

Fixed assets-981-38.3%

13,701

Net assets

Cash and cash equivalents-584-27,103

630,150

Total liabilities

Current assets-1,73643,70114,805(Interest-bearing debt)

Assets70,805608,566

Fixed liabilities(millions of yen)

10

Total net assets+3,783Retained earnings+3,783

Undistributed earnings+3,831

2-3 Financial Performance
46th period Long-term loans payable

Maintain solid financial strategy

Date ofFinance Data
Item

2024/1/25

June 30, 2024
(46th Period end)

2024/3/1

42.4%-0.4ptLong-term fixedinterest rate ratio

90.5%

88.4%

-2.1ptAverage interest rate

0.40%

0.45%

5.23years

5.30years

Average remaining life
(Long-term interestbearing debt)

Shinkin Central Bank

2024/4/26

Sumitomo Mitsui Banking Corporation+0.05pt

2024/5/30

Development Bank of Japan Inc.

+0.07years

2024/5/31(millions of yen)

Short-term debt

5,000

5,000

-

Long-term debt
(floating rate)Long-term debt
(fixed interest rate)
Investment corporation
bonds

51,00063,000+12,000

489,500

478,900-10,600

47,00040,000-7,000Total amount

592,500

586,900-5,60063,00065,000Sumitomo Mitsui Trust Bank, Limited

2,000

5.0 years

3,000

6.0 years

Fixed/

Interest

Floating

rates
0.583%
0.688%

Fixed

2,000

7.0 years

2,000

12.0 years

1.277%

4,000

10.0 years Floating*1

0.340%

3,000

5.0 years

0.741%

3,000

7.0 years

5,400

7.0 years

1.009%

3,000

8.0 years

0.326%

7,000

9.0 years Floating*2

0.344%
0.362%THE BANK OF FUKUOKA., LTD.

2,000

10.0 years

2024/6/28

Daishi Hokuetsu Bank, Ltd.

2,000

5.0 years

Total amount-

0.837%

Fixed

0.934%

Fixed

38,400 7.7 years

0.775%-

0.650%*1 Base interest rate: JBA 3-month Japanese Yen TIBOR (The interest rate at the beginning of the loan is shown)*2 Base interest rate: JBA 1-month Japanese Yen TIBOR (The interest rate at the beginning of the loan is shown)

Rating Status

June 30, 2024
(46th Period end)

Green FinanceGreen Loan

2024/3/29

December 31, 2023
(45th Period end)

Item

Daishi Hokuetsu Bank, Ltd.
TAIJU LIFE INSURANCECOMPANY LIMITED

2024/3/28*Debt capacity up to LTV46.0% Approx. 92 billion yen

Interest-bearing debt

Sumitomo Mitsui Trust Bank, Limited(millions of yen)

Periodmoney

PoP Change

42.8%

LTV

Lenderborrowing

December 31, 2023
(45th Period end)

Amount of

PoP Change+2,000

JCR

R&I

S&P

AA+

AA

A+

Diversification of repayment dates(billions of yen)

80
0.27

60

0

0.41

46th Fiscal Period Procurement Results

0.36 0.43 0.47 0.54 0.50

Investment corporation bonds

Long-term borrowings

0.68

40
20

0.25

(As of June 30, 2024)

0.66
0.17

0.93

0.80

0.91

0.89

'24 '25 '26 '27 '28 '29 '30 '31 '32 '33 '34 '35 '36 '37 '38*The figures at the top of the graph are average interest rates (unit: %)

11

1.00

'46

2-4 Continuing Appraisal
Continuing appraisal value was flatContinuing appraisal value
Item
Number ofproperties
Continuing
appraisal value
Book value
Unrealized gain

Changes in appraisal value and book value

December 31, 2023

June 30, 2024

(45th Period end)

(46th Period end)

69 properties

PoP Change

68 properties-1 property

1,703.6 billion yen 1,702.8 billion yen-0.8 billion yen

1,358.4 billion yen 1,357.2 billion yen-1.2 billion yen

345.1 billion yen

345.6 billion yen+0.5 billion yen

Changes by property (compared to the previous period)
Capitalization rate
Item(number of property)

December 31, 2023
June 30, 2024
(45th Period end) (46th Period end)

Appraisal value
Item(number of property)

December 31, 2023
June 30, 2024
(45th Period end) (46th Period end)

Decrease

41

16

Increase

10

24

Same

28

50

Same

46

32

Increase

01

Decrease

13

12＊NBF Toranomon Bldg. is excluded because the direct
capitalization method is not applied.

12

《MEMO》

13

3.

Forecast

14

3-1 2H/2024 (47th Period), 1H/2025 (48th Period)Forecasts(millions of yen)

1H/2024

2H/2024(Actual)( 46th Period )(Forecast)( 47th Period )50,25445,01642,004
3,012
5,237
25,61023,37350,56845,872
42,522
3,350
4,695
26,96924,833

Rental expenses(excl. depreciation and amortization)

15,436

Depreciation and amortization

CourseTotal operating revenues
Operating revenues
Real estate lease revenues
Other lease revenues

Profits from dispositions

Total operating expenses
Operating expenses

Asset management fees
Selling, general and administrative expenses

Operating income
Net non-operating income andexpensesNon-operating income
Non-operating expenses

Ordinary income
Extraordinary income (loss)
Income before income taxes
Income taxes

Net income
Provision of reserve(+) and reversal
for Advanced depreciation(-)
Payment of dividends

1H/2025

PoP Change
AmountPercentage(Forecast)( 48th Period )-541-10.3%

1,358

5.3%

1,459

6.2%

45,64045,63842,6832,955
126,15524,161

16,970

1,534

9.9%

7,937
1,847
389
24,643

7,862
1,829
306
23,599-74-0.9%-1,2981
1,300
23,34523,3450
23,344

314

0.6%

855

1.9%

517

1.2%

337

11.2%

PoP Change
AmountPercentage-4,928

-9.7%

-233

-0.5%

161

0.4%

-394

-11.8%-4,694

-

-814

-3.0%

-671

-2.7%

16,304

-666

-3.9%

-5

-0.1%

-135

-7.4%

-6

-2.1%

-4,113-17.4%

-17

-1.0%

-83

-21.4%-1,044-4.2%-1,515

-216

16.7%

-1,605

-89

5.9%

2
1,517
22,08422,0840
22,084

0

-

-

-

216

16.7%

2
1,607
17,88017,880017,880

89

5.9%

-5.4%

-

-

-1,261

-5.4%

0

-

-1,260-5.4%-4,203-19.0%---4,203-19.0%---4,203-19.0%

1,092

1,664

572

-

-2,531-4,196-22,252
13,082

20,4112,400-1,840

-8.3%

-

-

-

-

20,411
2,400

-

-

97.8
1,700,991

98.0
8,504,955

0.2

-

0.7

-

-

-

98.7
8,504,955--

NOI from property leasing activities

29,58028,902

-678

-2.3%

29,334432

1.5%Operating income(excluding profits and losses from dispositions)

19,406

18,903

-503

-2.6%

19,483580

3.1%

Net income

18,107

17,388

-719

-4.0%

17,878490

2.8%Distribution per unit (yen)Average occupancy rate during the Period(%)
Units issued and outstanding at period end(millions of yen)
47th period

7,857
1,693
299
19,485-1,261

Summary of PoP change

48th period

Total operating revenues+314-4,928

Real estate rental revenues

+517

+161

Replacement(properties acquired/disposed of)

+73

-202

Existing Properties

+444

+363

Other rental revenues

+337

-394

Cancellation charge+5+0Ancillary revenues

+380

-393

Profits from dispositions-541-4,694

Total operating expenses+1,358-814

Operating expenses+1,459-671

Utilities

+551

-535

Taxes and public dues

-100

+257

Repair expenses

+132

+53

Building management expenses

+764

-372

-1,044-4,113Replacement (properties acquired/disposed of)

+137

-64

Existing Properties

-741

+502

Profits from dispositions-541-4,694

Asset management fees and SG&A expenses

100

142

Net non-operating income and expenses

-216

-89

Non-operating expenses

+216

+89

Interest expense

+210

+100

Operating income【 Reference 】(excluding profits and losses from dispositions)15

The forecast figures for the period ending December 31, 2024 (47thperiod) and the period ending June 30, 2025 (48th period) are thecurrent figures calculated based on certain assumptions, and the actual
figures may vary from these figures due to changes in circumstances.
The amount of distributions is not guaranteed.
Distribution per unit and number of units issued and outstanding for the
47th and 48th fiscal periods are after the Split.

(Reference) Business Outlook
DPU
Aiming for stable growth in DPU by utilizing retained earnings and gains from dispositions(Yen per unit)

13,0822,400＊（12,000）

Internal
growthExternal
growthInternal
growth2,400＊（12,000）

Other
External
growthOther

0

1H/’2446th Period

2H/’2447th Period(Actual)(Forecast)16

1H/’2548th Period(Forecast)*The bar graphs of DPU for 2H 2024 and 1H 2025 show approximate figures
assuming that the Split is not made, for comparison with 1H 2024.

Disclaimer
This English language notice is a translation of the Japanese language Investor Presentation dated August 15, 2024 and was
prepared solely for the convenience of, and reference by, overseas investors.
Neither NBF nor Nippon Building Fund Management, Ltd. makes any warranties as to its accuracy or completeness.
These materials are intended to provide information and are not a solicitation or recommendation to purchase securities orfinancial instruments or engage in transactions of any kind. Please consult with a securities company regarding the purchaseof NBF units or investment corporation bonds. The information provided in these materials does not constitute the disclosure
or asset management reports required under the Financial Instruments and Exchange Act or laws relevant to investment trusts
or investment corporations.
Nippon Building Fund Inc. and Nippon Building Fund Management Ltd. have exercised due care in providing these materials
but do not guarantee the accuracy, validity, or completeness of information, whether created by Nippon Building Fund Inc.,
Nippon Building Fund Management Ltd., or third parties.
This document contains forward-looking statements and information that are not historical or current facts. Forward-looking
statements and information are assumptions and judgments based on information available to Nippon Building Fund Inc. andNippon Building Fund Management Ltd. when preparing this document or as of the date otherwise stated. Forward-looking
statements and information are premised on the Nippon Building Fund Inc.’s investment plan, applicable laws and regulations,market environment, interest rate environment, operating realities and the other facts as of the document date, and do notreflect or take into consideration subsequent change. These statements and information involve known and unknown risks,
uncertainties and assumptions. Our future performance could materially differ from those set out in these forward-looking
statements.
The content of these materials is subject to change without notice. Nippon Building Fund Inc. and Nippon Building FundManagement Ltd. do not undertake and will not undertake to release revisions of forward-looking statements to reflect future
events or circumstances or of any other statements or information contained herein.
Duplication or use for other purposes of these materials without the prior consent of Nippon Building Fund Inc. and Nippon
Building Fund Management Ltd. is prohibited.

17