August 15, 2024
To All Concerned Parties
Name of REIT Issuer:
Nippon Building Fund Inc.
Koichi Nishiyama, Executive Director(TSE Code: 8951)
Contact:
Asset Management Company
Nippon Building Fund Management Ltd.
Daisuke Yamashita, President and CEO
Contact:
Yukio Handa, General Manager(TEL. +81-3-3516-3370)

NIPPON BUILDING FUND INC.
ANNOUNCES 46th PERIOD (FIRST-HALF 2024) RESULTS

1. Financial Results for the Fiscal Period Ended June 30, 2024
(from January 1, 2024 to June 30, 2024)(Values are rounded down to the nearest million yen)
(Percentages indicate a rate of increase/decrease from the previous period)(1) Operating Results
Period ended

Total Operating
Revenues

Operating Income

Ordinary Income

Yen in Millions%

Yen in Millions%

Yen in Millions

June 30, 2024

50,254

6.1

24,64318.7

23,345

19.6

23,344

19.6

December 31, 2023

47,3490.7

20,7670.6

19,5130.9

19,5130.9

Period ended

Net Income per unit

Return on(Note)

unitholders’ equity
yen%

Net Income

Ratio of Ordinary
income to total
assets%Yen in Millions%

Ratio of Ordinary
Incometo Operating
Revenues%%

June 30, 2024

13,724

3.3

1.7

46.5

December 31, 2023

11,471

2.8

1.4

41.2

(Note) Net Income per unit = Net Income ÷ Weighted average number of units issued and outstanding
during the period.

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1

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(2) Distributions

Period ended

Distribution
per unit

Total amountof distributions(excluding
distributions inexcess of
earnings)(excluding
distributions inexcess of
earnings)

Yen

Yen in Millions

Distributions
in excess ofearnings per
unit

Total ofdistributions
in excess ofearnings

Payoutratio

Ratio ofdistributions
to net assets

Yen

Yen in Millions%%

June 30, 2024

13,082

22,252

-

-

95.3

3.1

December 31, 2023

11,50019,561

-

-

100.2

2.8

(Note 1) The payout ratio is rounded down to the first decimal place.
(Note 2) Distribution per unit for the fiscal period ended December 31, 2023, is calculated by dividing
the amount (¥19,561 million), which is arrived at by deducting provision of reserve for tax
purpose reduction entry (¥485 million) from the sum of retained earnings (¥19,513 million) andreversal of reserve for tax purpose reduction entry (¥533 million), by the total number ofinvestment units issued and outstanding. The difference between distribution per unit and net
income per unit is due to this calculation.
*Net reversal of reserve for tax purpose reduction entry is ¥48 million.
(Note 3) Distribution per unit for the fiscal period ended June 30, 2024, is calculated by dividing theamount (¥22,252 million), which is arrived at by deducting provision of reserve for tax purpose
reduction entry (¥1,635 million) from the sum of retained earnings (¥23,344 million) andreversal of reserve for tax purpose reduction entry (¥543 million), by the total number ofinvestment units issued and outstanding. The difference between distribution per unit and net
income per unit is due to this calculation.
* Net provision of reserve for tax purpose reduction entry is ¥1,092 million.

(3) Financial Position
Period ended

Total Assets

Net Assets

Yen in Millions

Ratio of unitholders’equity to Total
AssetsNet Assets per unit%

Yen

Yen in Millions

June 30, 2024

1,383,883

710,03051.3

417,421

December 31, 2023

1,385,619

706,24751.0

415,197(4) Cash Flow
Period ended

Cash flow fromoperating activities

Cash flow frominvesting activities

Cash flow fromfinancing activities

Cash and cash
equivalents at theend of period

Yen in Millions

Yen in Millions

Yen in Millions

Yen in Millions

June 30, 2024

72,113(47,935)(25,159)

17,903

December 31, 2023

36,486(5,997)(21,561)

18,884－2－

2. Forecasts for the 47th Fiscal Period (from July 1, 2024 to December 31, 2024) and the 48th Fiscal
Period(from January 1, 2025 to June 30, 2025)

Period ending(Percentages indicates rate of increase/decrease from the previous period)
Distributions
per unit
Distributions
Operating
Ordinary(excluding
Net Income
in excess of
IncomeIncomedistribution inearnings
excess of

Total
Operating
Revenues

earnings)
Yen inMillions

December 31, 2024 50,568
June 30, 2025

45,640%

Yen in%Millions

Yen in%Millions

0.6

23,599(4.2)

22,084(9.7)

19,485(17.4) 17,880(5.4)

Yen inMillions

%

Yen

Yen

22,084

(5.4)

2,400

-

(19.0) 17,880(19.0)

2,400-(Reference) Net income per unit (expected net income / expected weighted average number of units
issued and outstanding during the period)
・The 47th Fiscal Period (from July 1, 2024 to December 31, 2024): ¥2,597
・The 48th Fiscal Period (from January 1, 2025 to June 30, 2025): ¥2,102(Note1) At the board of directors' meeting held on August 15, 2024, it was determined to be divided afive-for-one basis with an effective date of October 1, 2024.
(Note2) Distribution per unit for the fiscal period ending December 31, 2024, is derived at by deducting
provision of reserve for tax purpose reduction entry ¥1,664 million from expected Net Income
and then dividing it by the total number of investment units issued and outstanding.
(Note3) Distribution per unit for the fiscal period ending June 30, 2025, is derived at by adding reversalof reserve for tax purpose reduction entry ¥2,531 million to expected net income and thendividing it by the total number of investment units issued and outstanding.
3. Others(1) Changes in Accounting Policies, Accounting Estimates or Restatements(i) Changes in accounting policies due to revisions to accounting standards and other regulations : None(ii) Changes in accounting policies due to reasons other than (i) above(iii) Changes in accounting estimates: None: None(iv) Restatements: None(2) Number of Investment Units Issued and Outstanding(i) Number of investment units issued and outstanding at the end of the fiscal period including treasury units:
As of June 30, 2024
As of December 31, 2023

1,700,991 units
1,700,991 units(ii) Number of treasury units at end of period:
As of June 30, 2024
As of December 31, 2023

None
None

* This financial report has not undergone any audit performed by a certified public accountant or auditing firm.
* Special Consideration
The forward-looking statements concerning performance results in these materials are based on information
currently available to NBF and certain assumptions which NBF believes are reasonable. Actual operating
performance may differ substantially due to various factors. Furthermore, these forecasts are not intended toguarantee the amount of cash distribution.

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3

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NBF Portfolio Profile:
As of June 30, 2024, NBF owned or had beneficiary interests in 68 office properties with an aggregatedacquisition value ¥1.4667 trillion and 1,209,996 rentable square meters of office space respectively.
NBF executes leasing activities carefully factoring in market trends from a medium- to long-term
perspective. As a result of the activities, with in the period under review, NBF leased office space to1,564 tenants (including sub leases), the occupancy rate as of the end of the period was 98.0%(including sub leases), and the average occupancy rate during the period was 97.8% (including subleases).

Performance Results:
During the period under review, the Japanese economy continued to recover moderately, despite theimpact of rising prices, with firm increases in capital investment by companies, a recovery in consumer
spending due to higher wages and expanding inbound demand.
On the other hand, the Bank of Japan's removal of YCC (yield curve control), lifting of negative interest
rates, and other monetary policy changes had limited impact on the Japanese economy due to higher
interest rates.
In the office building rental market in Tokyo CBD, demand continued to recover as companies
reassessed their office functions, with a recovery in attendance rates and further momentum to review
office space requirements in line with new employment and continued promotion of positive relocations
to increase floor space within buildings and improve locations. The market vacancy rate in Tokyo CBD,
which had been in the 6% range in the previous period, has dropped to the low 5% range.
With regard to the office building trading market, despite the impact of domestic and foreign monetary
policies, institutional investors in Japan and overseas are highly motivated to acquire properties.
Demand from overseas investors remained strong, especially due to the difference in interest rates
between Japan and other countries and the weak yen. The competitive property acquisition environment
continues to be intense, as information on the sale of prime properties remains limited.
Even under this environment, NBF enhanced its quarity of portfolio in March 2024 by acquiring "Toyosu
Bayside Cross Tower" (acquisition price: ¥43.8 billion (additional acquisition)), and disposition of"GranTokyo South Tower" (disposition price: ¥41.2 billion (part of sectional ownership)) and "PanasonicTokyo Shiodome Bldg." (disposition price: ¥6.7 billion).
The occupancy rate of the existing portfolio NBF own has recovered to the upper 97% range, and NBF
is engaged in leasing activities from a medium- to long-term perspective that accurately takes market
trends into account with the aim of achieving further internal growth. With existing tenants, NBF strives
to retain and improve rent levels, prevent cancellations based on the fundamental policy of maintaining
favorable relationships and enhancing tenant satisfaction．As a result of these activities, occupancy
rates and rental revenues remains stable.
In addition, NBF’s pursuit to enhance competitiveness of its properties by implementing continuous cost
reduction measures through timely renovations will continue.

Financing:
NBF has conducted its financial management in a conservative manner with the targeted interestbearing debt to value ratio (ratio of interest-bearing debt to total value, hereinafter the LTV) being
between 36% and 46%, with 56% set as the maximum.
As of the end of the period under review, NBF’s LTV was 42.4% and its long-term fixed interest-bearing
debt ratio was 88.4%.
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The status of interest-bearing debt as of the end of the previous period and period under review is asfollows.
(Million in yen)
Balance as of theend of theprevious period

Balance as of theend of the period
under review

Increase/decrease

Short-term borrowings

5,000

5,000

－

Long-term borrowings(Floating interest rate)

51,00063,00012,000Long-term borrowings(Fixed interest rate)

489,500

478,900(10,600)

Investment Corporation
Bonds

47,00040,000(7,000)Total interest-bearing debt

592,500

586,900(5,600)*The balance of green finance at the end of the period was ¥65,000 million.

Commitment lines:
NBF also established long-term commitment lines of 60 billion yen with financial institutions in order tostabilize its fund-raising capacity reducing refinancing risks.
Outline of the commitment lines
Maximum amount ofborrowing

40 billion yen

20 billion yen

Expiration dateAugust 29, 2025

March 31, 2027

Collateral

Unsecured/non-guaranteed

Unsecured/non-guaranteed

Investment corporation bonds:
NBF submitted a shelf registration statement of investment corporation bonds (excluding short-term
investment corporation bonds) in January 2023, and the outline is as follows. At the end of the period,
the outstanding balance of the issuance limit was 200 billion yen.
Amount to be issued

200 billion yen

Scheduled period of
issuancefrom February 8, 2023 through February 7, 2025

Use of funds

acquisition of specified assets (within the meaning of
Paragraph 1, Article 2 of the Act on Investment Trusts andInvestment Corporations), repayment of loans, redemption of
investment corporation bonds, refund of lease deposits,
payment for renovations, working capital etc.

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5

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Credit Ratings:
NBF was awarded the following issuer credit ratings as a J-REIT (opinions of the respective credit rating
agencies on NBF's creditability).
Credit Rating Agency
JCR
R&I
Standard & Poor’s

Rating Summary
Issuer Rating: AA+, Outlook: stable
Issuer Rating: AA, Outlook: stable
Long-term: A+, Short-term: A-1, Outlook: stable

Sustainability Initiatives:
NBF is implementing the following ESG-conscious initiatives in accordance with the Group
Environmental Policy and Social Contribution Activities Policy established by the Mitsui Fudosan Group.
Regarding environmental initiatives, one of the main KPIs is to address climate-related issues (reductionof environmental impact), with the following numerical targets: 90% reduction of total GHG emissions(Scope 1+2+3) by 2050 (2021 baseline, certified by SBT as net zero target), 42% reduction of total GHG
emissions (Scope 1+2) by 2030 (2021 baseline, SBT certification as near-term target), CO2 emissions
intensity by 46% by 2030 (2013 baseline), water consumption intensity by 5% by 2030 (2019 baseline),
and waste recycling rate of 65%. NBF is reducing our environmental impact by introducing renewableenergy, promoting LED lighting, installing water-saving devices, and actively reducing waste, etc. As ofthe end of this fiscal period, 63% of our entire portfolio had been converted to LEDs.
With regard to social initiatives, in our relationship with local communities, NBF is conscious ofcontributing to community development and revitalizing local communities, etc. In addition, for tenants,
NBF has set up a PDCA cycle to reflect various issues and improvements obtained from daily
management and customer satisfaction surveys in our operations, and NBF sincerely strive to resolve
and improve NBF is also working diligently to provide a safe, secure, and comfortable environment forour tenants.
With regard to governance initiatives, NBF considers thorough compliance to be one of our top
management priorities, and NBF regularly conducts training for all employees and directors oncompliance with laws and regulations, and strive to improve individual and organizational capabilities.
NBF is actively working to obtain evaluations and certifications from external organizations, and in the
GRESB Real Estate Evaluation, in which it continuously participates, NBF received a 4-star overall score(out of 5 levels) in 2023, and the acquisition rate of green building certification was 98.8% (based on
total floor area) as of the end of the fiscal period. The acquisition rate of green building certification was
98.8% (based on total floor area) as of the end of the fiscal period.
The Asset Manager has endorsed the Task Force on Climate-related Financial Disclosures (TCFD) in
2021 to promote disclosure of information on climate-related issues. Based on the four areas
recommended in the TCFD recommendations (governance, strategy, risk management, and indicatorsand targets), NBF has analyzed the risks and opportunities of climate change impacting our businessand finances, and disclosed this information on our website.
(Note) The green building certifications that NBF has obtained are DBJ Green Building Certification, CASBEE Building Evaluation Certification,
and CASBEE Real Estate Evaluation Certification.

Overview of Performance and Distribution:
As the result of above operations, NBF's performance results during the period under review consistedof total operating revenues of ¥50,254 million (a increase of ¥2,904 million, or 6.1%, compared with theprevious period), operating revenues excluding profits from dispositions of ¥45,016 million (a decrease－6－

of ¥618 million, or 1.4%, compared with the previous period), operating income from leasing activities of¥21,643 million (a increase of ¥509 million, or 2.4%, compared with the previous period), operating
income of ¥24,643 million (a increase of ¥3,876 million, or 18.7% compared with the previous period),
ordinary income of ¥23,345 million (a increase of ¥3,831 million, or 19.6%, compared with the previous
period), and net income of ¥23,344 (a increase of ¥3,831 million, or 19.6%, compared with the previous
period).
In accordance with the distribution policy prescribed in its Articles of Incorporation, NBF determined to
distribute ¥22,252 million, the entire amount arrived at by deducting provision of reserve for tax purpose
reduction entry (¥1,635 million) from the sum of retained earnings (¥23,344 million) and reversal ofreserve for tax purpose reduction entry (¥543 million), so that it will be able to deduct the maximum
amount of cash distribution of profit from its taxable income through the application of preferential tax
measures to investment corporations (Article 67-15 of the Act on Special Measures Concerning
Taxation) (Net provision of reserve for tax purpose reduction entry is ¥1,092 million). As a result, thedistribution per unit was ¥13,082 (a increase of ¥1,582, or 13.8%, compared with the previous period ).

NBF’s Management Policy and Issues to Be Dealt with for the Future:
NBF expects the Japanese economy to continue its gradual recovery, partly due to rising wages,
increasing inbound demand, and the government's fiscal policy, but the impact of the Bank of Japan's
monetary policy on the J-REIT market needs to be closely monitored.
In the office building rental market, although the impact of the start of leasing activities for the large supply
of office buildings scheduled in 2025 will continue to require close monitoring, demand is expected to be
firm as companies re-recognize office functions, and office buildings, especially those in highly
competitive locations, are expected to be valued more highly.
In the office building trading market, although rising interest rates and other market trends require closemonitoring, the demand to acquire properties by domestic and foreign investors remains high, andinformation on sales of prime properties is limited, so the environment for property acquisitions is
expected to remain severe.
In this environment, NBF aims to achieve steady growth of assets under management and secure stable
income from a medium- to long-term perspective, and will conduct proper management based on thefollowing management policy.

(a) Investment Policies for Acquisition
Fierce competition to acquire quality assets remain yet increasing domestic interest rates casts
concern over the economy. With this in mind, NBF will focus its attention to acquire properties that
contribute to the entire portfolio in the mid-to-long term, which will to further enhance its portfolio
quality.
NBF will also make prudent investment decisions, taking into full consideration the status of its
financial management as well as keeping an eye on changes in economic circumstances andtrends in the real estate markets, and the financial markets.
In addition, NBF will implement asset replacement as needed by taking into consideration growthpotential, stability, scale, location and portfolio composition of each property, while taking into
account the progress of new property acquisitions and their impact on the overall portfolio's profit
and loss.
－7－

This time, the building portion of the NBF Toranomon Bldg. (“Building”) was transferred to its
sponsor, Mitsui Fudosan Co., Ltd.
Meanwhile, by conclusion of general fixed-term leasehold contract with Mitsui Fudosan Co., Ltd.
for the land, Mitsui Fudosan Co., Ltd. bears the development risk, and NBF has obtained
preferential negotiation rights for the acquisition of the building after the redevelopment, thereby
achieving external growth and other measures to expand its portfolio.

(b) Management Policies for Existing Properties
NBF intends to continuously increase rental revenues by carefully monitoring trends in the officebuilding rental market and responding flexibly to the changes in the environment. NBF will maintainand improve occupancy rates through flexible responses based on accurate consideration ofmarket trends in new leasing and maintain close relationships with its existing tenants for customer
satisfaction, in order to maintain and increase rent levels while mitigating lease cancellations. As
for capital investments in existing buildings, NBF will strive to curb increases in building
management costs and energy costs while appropriately and effectively implementing renovation
work, environmental response work, and other work that contributes to maintaining and improving
the competitiveness of the building as a rental building.

(c) Financial Strategies, Etc.
Regarding financing through debt financing, interest rates are expected to rise in the future, andthe financial market is entering an adjustment phase. NBF will continue to use long-term, fixedrate financing as in the past from the viewpoint of long-term asset management, stability infinancing, and response to future interest rate rises, but will endeavor to reduce interest paymentsby flexibly utilizing financing period and long-term floating-rate borrowings. In addition, from theviewpoint of maintaining a diverse funding base, NBF will also issue investment corporation bonds
while keeping a close eye on the financial market. The targeted LTV, being between 36% and 46%,
will be maintained for the time being, with 56% as the maximum. NBF will continue to conduct its
financial management with the targeted long-term fixed interest-bearing debt ratio for the time
being of over 80%. In light of the launch of the Small Investment Tax Exemption Scheme (NewNISA), NBF has determined to reduce the amount per unit of investment units, with a record dateof September 30, 2024, in order to create an environment in which investors can more easily invest
and to further expand its investor base and investment units. NBF determined to be divided a fivefor-one basis with a record date of September 30, 2024. In addition, NBF will conduct IR activities
based on its policy to proactively conduct accurate, fair and timely disclosure from the viewpointof appropriately disclosing information and securing transparency.

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8

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Significant Subsequent Events:(a) NBF resolved adopted at its Board of Directors meeting held on August 15, 2024 to split its
investment units ("the Split") as follows.
(1) Purpose of the Split
Based on the introduction of the new Nippon Individual Savings Account ("New NISA") startingfrom January 2024, NBF will implement the Split, aiming to create a more accessible
investment environment for investors by lowering the amount per investment unit, thereby
expanding investors base and improving the liquidity of our investment units.
(2) Method of the Split
As of September 30, 2024 as the record date, each of the investment units owned by theunitholders who are registered or recorded in the latest register of unitholders will be divided
on a five-for-one basis.
(3) Number of investment units to be increased through the Split(i) number of issued and outstanding investment units before the Split : 1,700,991 units(ii) number of investment units to be increased through the Split : 6,803,964 units(iii) number of issued and outstanding investment units following the Split : 8,504,955 units(iv) total number of issuable investment units following the Split: 20,000,000 units(4) Schedule of the Split(i) date of public announcement of record date : September 13, 2024 (anticipated)(ii) record date : September 30, 2024(iii) effective date : October 1, 2024
(5) Effect on per unit information
The per unit information, assuming the split had taken place at the beginning of the current
fiscal period, is as follows(i) Net Assets per unit: 83,484 yen(ii) Net Income per unit : 2,744 yen

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9

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(Reference information)(a) On January 5, 2024, NBF entered into a sale and purchase agreement for the transfer of thefollowing asset, which is scheduled to be transferred on September 30, 2024.
The agreement for the asset to be transferred falls under the category of forward commitments,
etc. (where settlement and delivery shall be made one month or more following the date ofcontract). NBF shall pay to the buyer a penalty equivalent to disposition price in the event of thetermination of a contract due to a breach of its contractual obligations.
Name of Asset
Tsukuba Mitsui Bldg.
Type of Specified Asset
Beneficiary interest in trust
Location(Street Address) 6-1, Takezono 1-chome, Tsukuba, Ibaraki
Area(Description in Real
Site area 6,280.82 m2
Property Registry)
Land
Land Use Zones
Commercial zone
Type of Ownership
100% ownership
Structure
Steel-framed structure with flat roof; 19 floors above ground(Description in Realand 2 floors below ground
Property Registry)
Area(Description in Real
Total floor space 26,266.10 m2
Property Registry)
Type of Ownership
100% ownership
Building
Completion ofConstruction
March 14, 1990
(Description in Real
Property Registry)Use (Primary use
listed in Real Property Office, retail store, parking
Registry)
Date of Disposition (planned)
September 30, 2024
Disposition Price (planned)¥10.9 billion
Trustee
Sumitomo Mitsui Trust Bank, Limited
Property manager
TOKYO BISO KOGYO CORPORATION

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10

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(b) On July 12, 2024, NBF entered into a sale and purchase agreement for the disposition of thefollowing asset, which is scheduled to be disposed on January 6, 2025.
The agreement for the asset to be disposed falls under the category of forward commitments,
etc. (where settlement and delivery shall be made one month or more following the date ofcontract). NBF shall pay to the buyer a penalty equivalent to 10% of the disposition price in theevent of the termination of a contract due to a breach of its contractual obligations.
Name of Asset
NBF Toranomon Bldg. (Building)Type of Specified Asset
Beneficiary interest in trust
Location(Street Address) 6-21, Nishi-Shinbashi 1-chome, Minato-ku, Tokyo
Structure
Steel frame reinforced concrete structure, flat roof, 9 floors above(Description in Realground and 5 floors below ground
Property Registry)
Area(Description in Real
18,082.47 m2
Property Registry)
Type of Ownership
100% ownership
Building
Completion ofConstruction
April 17, 1963
(Description in Real
Extension on April 25, 1971
Property Registry)Use(primary use listed in
Office, warehouse, and night duty room
Real Property
Registry)
Date of Disposition (planned)
January 6, 2025
Disposition Price (planned)¥860 million
Trustee
Mitsubishi UFJ Trust and Banking Corporation
Property manager
Mitsui Fudosan Facilities Co.,Ltd.

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11

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Outline of Forecasts for the 47th and the 48th Periods
In view of rent trends of the office building rental market, NBF announced its forecasts for the 47th fiscal
period commencing July 1, 2024, and ending December 31, 2024, and for the 48th fiscal period
commencing January 1, 2025, and ending June 30, 2025.

Performance Forecasts:
The forecast for the 47th fiscal period is as follows:
Total operating revenues:¥50,568 million
Operating income:¥23,599 million
Ordinary income:¥22,084 million
Net income:¥22,084 million
Cash distribution per unit:¥2,400The forecast for the 48th fiscal period is as follows:
Total operating revenues:¥45,640 million
Operating income:¥19,485 million
Ordinary income:¥17,880 million
Net income:¥17,880 million
Cash distribution per unit:¥2,400(Note) The above-forecasted figures are calculated based on certain conditions as of the date ofsuch calculation, and the actual amount of net income or cash distribution may change
subject to changes of circumstances. Furthermore, these forecasts are not intended toguarantee the amount of cash distribution.

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12

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Assumptions underlying the Forecasts of Operating Results for the Periods Ending December 31, 2024 (July 1, 2024 –December 31, 2024) and June 30, 2025 (January 1, 2025 –June 30, 2025)
Item

Assumptions
・NBF’s portfolio of 68 properties as of June 30, 2024, adjusted for the following dispositions,
resulting in 67 properties for the period ending December 31, 2024 and June 30, 2025.
Disposition Price(scheduled)

Dispositions (scheduled)

Assets owned

Date (scheduled)

Tsukuba Mitsui Bldg.

10,920 million yen

September 30, 2024

NBF Toranomon Bldg. (Building)

860 million yen

January 6, 2025

・The forecasted total interim average occupancy rate*1 of the total portfolio is 98.0% for theperiod ending December 31, 2024 and 98.7% for the period ending June 30, 2025.
*1 The weighted average (by floor area) of the occupancy rates at the end of each month.
・The figures in this table may change due to changes in portfolio assets or other factors.
Number of issued andoutstanding investment
units
Interest-bearing
liabilities

Total Operating
Revenues

・The total number of investment units issued and outstanding as of the date of this document is
1,700,991 units, plus 6,803,964 units, which is the number of investment units to be increased bybeing divided a five-for-one basis scheduled to take effect on October 1, 2024, for a total numberof 8,504,955 units.
・In the fiscal period ending December 31, 2024 and June 30, 2025, short-term borrowings of 5billion yen , long-term borrowings of 14 billion yen, and investment corporation bonds of 5 billion
yen will become due for repayment, and it is assumed that funds for the repayment of suchinterest-bearing liabilities will be procured through borrowings, etc.
・NBF is assumed to record 4,695 million yen in gain on sale of “Tsukuba Mitsui Bldg.” in the
period ending December 31, 2024, included in total operating revenues, and 1 million yen in gainon sale of “NBF Toranomon Bldg. (Building)” in the period ending June 30, 2025, (see“Distribution per Unit” below as well).
・In the event that fixed assets taxes and city planning taxes with respect to the properties
acquired are prorated and settled between NBF and the former property owner based on thenumber of days owned until the closing date, such settlement amounts will not be included in
expenses as they are included in the relevant acquisition price. Accordingly, the settlement
amounts consisting of fixed assets taxes and city planning taxes with respect to “Toyosu Bayside
Cross Tower (Additional Acquisition)” acquired on March 29, 2024 are not included in expenses
for the periods ending December 31, 2024, but will be included in expenses for the period
ending June 30, 2025 and thereafter. The amount of real estate taxes with respect to the above

Operating Expenses

property for the period ending June 30, 2025 is expected to be 101 million yen (for the six-month
period).
・Real estate taxes are expected to be 4,665 million yen for the period ending December 31, 2024
and 4,923 million yen for the period ending June 30, 2025.
・Depreciation and amortization are expected to be 7,862 million yen for the period ending
December 31, 2024 and 7,857 million yen for the period ending June 30, 2025.
・Repairs and maintenance are expected to be 1,147 million yen for the period ending December
31, 2024 and 1,200 million yen for the period ending June 30, 2025.
・Assumptions regarding outsourcing costs are made by taking past results into consideration.

Non-operating
Expenses・Non-operating expenses (interest expenses, interest payments on investment corporation
bonds, etc.) are assumed to be 1,517 million yen for the period ending December 31, 2024 and
1,607 million yen for the period ending June 30, 2025.

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13

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Item

Assumptions

Distribution per Unit

・In the period ending December 31, 2024, 1,664 million yen is assumed to be held as reserve forretained earnings (tax purpose reduction entry ) from the anticipated gain of 4,695 million yen
from the disposition of “Tsukuba Mitsui Bldg.”.
・In the period ending June 30, 2025, reversal of reserve for tax purpose reduction entry 2,531
million yen is to be assumed to be occurred.
・The actual amount of distribution per unit may vary due to changes in rental revenue as a resultof tenant changes, changes in properties, interest rates, or issuance of new investment units.
・Actual amounts transferred from and to as reserves (reserves for reduction entry) may change.

Distributions in Excess ・NBF currently has no plans to make distributions in excess of earnings (distributions in excess ofof Earnings per Unitearnings per unit).

Others・The above estimates are based on the premise that there will be no amendments of laws or
regulations, taxation systems, accounting standards, rules of Tokyo Stock Exchange, rules of
The Investment Trusts Association, Japan or otherwise which would impact such estimates.
・The above estimates are also premised on the absence of unexpected substantial changes ingeneral economic trends or real estate market conditions.

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NIPPON BUILDING FUND INC.
Balance Sheets
As of June 30, 2024 and As of December 31, 2023

As ofJune 30,
2024

As of
December 31,
2023(Yen in millions)
AssetsCurrent Assets:
Cash and cash equivalents¥17,903¥18,884

Tenant receivables

336

266

Prepaid expenses

337

371

Other current assets

624

263

19,201

19,785

1,024,380

1,031,812

Buildings and improvements including trust accounts

485,240

473,098

Other tangible assets

17,893

17,052(205,837)(199,035)

35,66335,677

1,357,340

1,358,606

Total current assets
Investment Properties:
Land including trust accounts

Less: accumulated depreciation
Leasehold rights in trust accounts and other intangible assets
Total investment properties, net
Long-term Prepaid Expenses

7

5

7,333

7,221

¥1,383,883¥1,385,619

Short-term loans¥5,000¥5,000Long-term debt due within one year

25,00051,000Accounts payable

8,496

8,278

Rents received in advance

4,314

4,336

891

2,190

Other Assets
Total Assets
Liabilities
Current Liabilities:

Accrued expenses and other liabilities

43,70170,805Long-term debt

Total current liabilities

556,900

536,500

Tenant Security Deposits Including Trust Accounts

73,167

71,942Other Liabilities

83

124

Total Liabilities

673,852

679,372

673,047

673,047

36,98333,200710,030

706,247¥1,383,883¥1,385,619

Net Assets
Unitholders' Equity
Unitholders' capital
Units authorized: 4,000,000 units
Units issued and outstanding: 1,700,991 units
Retained earnings
Total Net Assets
Total Liabilities and Net Assets

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15

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NIPPON BUILDING FUND INC.
Statements of Income
For the six months ended June 30, 2024 and December 31, 2023

For the six months
ended June 30,2024

For the six months
ended December 31,
2023(Yen in millions)Operating Revenues and Expenses
Operating Revenues:
Rental¥42,004¥42,126

Other revenues related to property leasing

3,012

3,508

Gains on sales of investment properties

5,237

1,714

50,25447,349Property management fees

6,154

6,678

Real estate taxes

4,766

4,536

Repairs and maintenance

1,014

1,344

42

43

Other rental expenses

3,458

3,925

Depreciation and amortization

7,937

7,973

Asset management fees

1,847

1,744

Other operating expenses

389

336

Total Operating Expenses

25,61026,582

Operating Income

24,643

20,767

Interest income

00

Property tax refund and interest on tax refund—

0

Other non-operating revenues

14(1,239)(1,210)

Amortization of bond issuance costs

(14)

(17)

Other non-operating expenses

(46)

(29)

Ordinary Income

23,345

19,513

Income before Income Taxes

23,345

19,51300¥23,344¥19,513

Total Operating Revenues
Operating Expenses:

Insurance

Non-Operating Revenues and Expenses
Non-Operating Revenues:

Non-Operating Expenses:
Interest expense

Current and deferred income taxes
Net Income

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16

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NIPPON BUILDING FUND INC.
Distribution for the Period Under Review
For the six months
ended
June 30, 2024

For the six months
ended
December 31, 2023

(Yen)
Retained earnings
Undistributed earnings
Reserve for tax purpose reduction entry
Reversal of reserve for tax purpose reduction
entry
Total cash distribution（Cash distribution per unit）
Distribution of accumulated earnings（Distribution of accumulated earnings per unit）
Cash distribution in excess of accumulated
earnings（Per unit）¥23,344,619,772¥19,513,116,231——

1,635,477,731

485,676,503

543,222,221

533,956,772

22,252,364,262

19,561,396,500

13,082

11,50022,252,364,262

19,561,396,500

13,082

11,500————Disclaimer
This news release contains translations of selected information described in the Japanese original
document (“Kessan-Tanshin (earnings summary)”). “Kessan-Tanshin (earnings summary)” has been
prepared in accordance with Japanese accounting standards and Japanese laws.
Figures have been rounded down to eliminate amounts of less than one million yen.
Please note that this English translation of the Japanese original document is provided solely for
informational purposes. In the event of any discrepancy between the Japanese original and this English
translation, the Japanese original shall prevail.

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