December 1, 2020
To All Concerned Parties
Issuer of Real Estate Investment Trust Securities:
Nippon Accommodations Fund Inc.
Takashi Ikeda, Executive Director(TSE Code: 3226)
Investment Trust Management Company:
Mitsui Fudosan Accommodations
Fund Management Co., Ltd.
Tateyuki Ikura, President and CEO
Inquiries: Tetsuji Kawakami, CFO and Director(TEL: +81-3-3246-3677)

Notification Concerning Revision to Financial Results Forecasts
for the Periods Ending February 28, 2021 and August 31, 2021
Nippon Accommodations Fund Inc. (“NAF”) revised its financial results forecasts for the period ending February
28, 2021 (30th Period: September 1, 2020 to February 28, 2021) and for the period ending August 31, 2021 (31stPeriod: March 1, 2021 to August 31, 2021) that were announced on October 19, 2020 as follows.

1. Revision to financial results forecast for the 30th period (September 1, 2020 to February 28,
2021)

Net income

Distribution
per unit (notincluding
distributions
in excess ofearnings)

Distribution
in excess ofearnings per
unit

Yen

Yen

Total
revenues

OperatingincomeIncomebeforeincometaxes

Million yen

Million yen

Million yen

Million yen

Previous forecast(A)
Current revised forecast(B)
Change(B-A)

11,577

5,335

4,885

4,884

10,080―11,577

5,335

4,882

4,881

10,080

―

0

0

(2)

(2)

―

―

Change0.0%

0.0%(0.1)%(0.1)%――

Projected number of investment units issued as of the end of the 30th period: 503,472 units<Caution> This document is a press release intended for general publication regarding revision to financial results forecast for theperiods ending February 28, 2021 and August 31, 2021 and is not for purposes of soliciting investment. When investing, we ask thatinvestors exercise their own judgment taking full responsibility after having read carefully the new investment unit issuance andsecondary offering prospectus, or any corrections thereof (if made), prepared by NAF.

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2. Revision to financial results forecast for the 31st period (March 1, 2021 to August 31, 2021)

Net income

Distribution
per unit (notincluding
distributions
in excess ofearnings)

Distribution
in excess ofearnings per
unit

Yen

Yen

Total
revenues

OperatingincomeIncomebeforeincometaxes

Million yen

Million yen

Million yen

Million yen

Previous forecast(A)
Current revised forecast(B)
Change(B-A)

11,711

5,272

4,802

4,801

9,910

―

11,943

5,391

4,915

4,914

9,910

―

231

119

113

113

―

―

Change

2.0%

2.3%

2.4%

2.4%

―

―

Projected number of investment units issued as of the end of the 31st period: 503,472 units
Notes
1. The above forecasted figures are represented by figures as of the date of this document and calculated under assumptions describedin “Underlying assumptions of forecasts for the 30th period and 31st period.” Therefore, actual total revenues, operating income,income before income taxes, net income and distribution per unit may change due to future acquisition or sale of investment assets,fluctuation in the real estate market or other changes in the environment in which NAF operates. Accordingly, the forecasts are nota guarantee of any cash distribution amount.
2. Distribution per unit for the 30th period has been calculated assuming that ¥5,074 million that is the sum of ¥193 million in reversalof reserves for reduction entry and ¥4,881 million in net income will be distributed. Furthermore, distribution per unit for the 31st
period has been calculated assuming that ¥4,989 million that is the sum of ¥74 million in reversal of reserves for reduction entry and¥4,914 million in net income will be distributed.
3. A forecast revision shall be performed if a large deviation from above forecast is expected.
4. All amounts less than a single unit have been disregarded.

3. Reason for revision
As there have been changes to the underlying assumptions of forecasts for the 30th period and 31st periodannounced on October 19, 2020 in the “Financial Results for the Fiscal Period from March 1, 2020 to August 31,
2020” due to the acquisition of the properties to be acquired that was announced today in “Notification
Concerning Acquisition of Domestic Real Estate Properties (Park Cube Oimachi Residence and other 3
properties)” and new investment unit issuance that was announced today in “Notification Concerning Issuanceof New Investment Units and Secondary Offering of Investment Units,” NAF has revised its financial results
forecasts for the 30th period and 31st period.

NAF’s website: https://www.naf-r.jp/english/<Caution> This document is a press release intended for general publication regarding revision to financial results forecast for theperiods ending February 28, 2021 and August 31, 2021 and is not for purposes of soliciting investment. When investing, we ask thatinvestors exercise their own judgment taking full responsibility after having read carefully the new investment unit issuance andsecondary offering prospectus, or any corrections thereof (if made), prepared by NAF.

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[Reference] Underlying assumptions of forecasts for the 30th period and 31st period
Item
Number of operating
days

Underlying assumptions- 30th period: From September 1, 2020 to February 28, 2021 (181 days)- 31st period: From March 1, 2021 to August 31, 2021 (184 days)- NAF holds 129 properties (hereinafter, “properties acquired”) as of the date ofthis document.
- NAF has concluded a real estate sales contract with condition precedent for
the following 4 properties (hereinafter, “properties to be acquired”). The namesof the properties to be acquired and the planned date of handover are as
follows.
<April 5, 2021 handover (planned)>
Park Axis Toyocho Shinsui Koen (65% co-ownership), Park Cube Oimachi
Residence (30% co-ownership), Park Axis Ofuna, Campus Terrace
WasedaInvestment assets/
Total revenues(Note) Regarding the properties with planned handovers of April 5, 2021, the condition forthe sale and purchase of each property is dependent on the completion of the
procurement of funds reserved as the trading value for the properties to beacquired by NAF through the issuance of new investment units or loans etc. The
planned handover date for these properties may be changed to a date separately
agreed by the buyer and seller (a day up to April 5, 2021) in accordance with a realestate sales contract with condition precedent.

- In the financial results forecasts, it is assumed that no transfer of properties(such as acquisition of new properties, sale of properties acquired, etc.) shalloccur until August 31, 2021 other than for the above properties to be acquired.
- The average month-end occupancy rates for total properties for the 30th
period and 31st period are expected to be 96.5% and 96.3%, respectively.
- The actual figures may change due to factors such as transfer of properties.
- The fixed property taxes and urban planning taxes recognized as expenses are
expected to be ¥618 million for the 30th period and ¥630 million for the 31st
period. However, when an investment asset is acquired, the fixed property
taxes and urban planning taxes that are settled with the previous owneraccording to the number of days the asset is owned are not recognized as
expenses because they are included in the acquisition price.
- The amounts recognized for the repairs and maintenance expenses andoutsourcing expenses of buildings are the required amounts forecast for the
Operating expenses

number of operating days. However, because repairs and maintenanceexpenses and outsourcing expenses may arise suddenly due to some
unexpected cause (building damage, etc.), amounts usually vary depending on
the year, some expenses arise occasionally, etc., the repair and maintenanceexpenses and outsourcing expenses for the number of operation days may bedifferent from the amounts forecast.
- We calculate depreciation and amortization expenses (including ancillary
expenses upon initial acquisition) using the straight-line method, and theexpenses are expected to be ¥1,982 million for the 30th period and ¥2,037
million for the 31st period.

<Caution> This document is a press release intended for general publication regarding revision to financial results forecast for theperiods ending February 28, 2021 and August 31, 2021 and is not for purposes of soliciting investment. When investing, we ask thatinvestors exercise their own judgment taking full responsibility after having read carefully the new investment unit issuance andsecondary offering prospectus, or any corrections thereof (if made), prepared by NAF.

3

Item

Underlying assumptions- The proceeds from the issuance of new units decided at the Board of Directors’
meeting held on December 1, 2020 shall be applied to the purchase of properties
to be acquired.

Interest-bearing debt/
Non-operating
expenses- It is assumed that NAF’s balance of interest-bearing debt, which is ¥159,500 million
as of the date of this document, shall not change until August 31, 2021. In addition,
it is assumed that loans that become due during the period will be fully refinanced.
- Interest expense and interest expenses on investment corporation bonds, etc. are
expected to be ¥450 million for the 30th period and ¥469 million for the 31st period.
- Amortization of costs related to the issuance of new units, etc. is expected to be ¥3
million for the 30th period and ¥6 million for the 31st period.
- It is assumed that a total of 18,950 new units through the issuance of new units by
public offering (18,000 units) and third-party allocation (a maximum of 950 units) to

Number of units
issuedbe completely issued in addition to the 484,522 units outstanding as of the date ofthis document.
- It is assumed that subsequent to the issuance of new units, there shall be no
issuance of new units until August 31, 2021.
- Distribution (distribution per unit) is calculated assuming it will be in accordancewith the Distribution Policy set forth in the Articles of Incorporation of NAF.

Distribution per unit
(not including
distributions in excessof earnings)- NAF has assumed ¥193 million for the 30th period and ¥74 million for the 31st
period as reversal of internal reserves (reserve for reduction entry).
- The actual amount of distribution per unit may change due to factors such as
fluctuations in rent revenues owing to changes in tenants, transfer of properties,
interest rate fluctuations, and additional issuance of investment units.
- The actual amount of reversal of internal reserves (reserve for reduction entry)
may change.

Distribution in excessof earnings per unit

- There is no distribution in excess of earnings planned as of the date of thisdocument.
- NAF has assumed no enforcement of such revisions to laws and regulations, tax
systems, accounting standards, regulations of the Tokyo Stock Exchange andOtherrules of The Investment Trusts Association, Japan, etc. that may affect the above
forecasts.
- NAF’s forecasts assume no unforeseen significant changes in general economic
trends or conditions in the real estate market.

<Caution> This document is a press release intended for general publication regarding revision to financial results forecast for theperiods ending February 28, 2021 and August 31, 2021 and is not for purposes of soliciting investment. When investing, we ask thatinvestors exercise their own judgment taking full responsibility after having read carefully the new investment unit issuance andsecondary offering prospectus, or any corrections thereof (if made), prepared by NAF.

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(Reference) Effects of external growth from the Offerings1 and the acquisition or the New
Properties Acquired2<Changes in LTV7 and acquisition capacity8>

Notes
1.

The “Offerings” refers to the issuance of new investment units and third-party allocation as stated in “Notification Concerning

2.

“Properties acquired in the 29th and 30th periods” are properties acquired in the 29th period (March 1, 2020 to August 31, 2020),

Issuance of New Investment Units and Secondary Offering of Investment Units” released today. The same shall apply hereinafter.

<Caution> This document is a press release intended for general publication regarding revision to financial results forecast for theperiods ending February 28, 2021 and August 31, 2021 and is not for purposes of soliciting investment. When investing, we ask thatinvestors exercise their own judgment taking full responsibility after having read carefully the new investment unit issuance andsecondary offering prospectus, or any corrections thereof (if made), prepared by NAF.

5

including Park Axis Akatsuka (55% co-ownership) and Park Cube Oimachi Residence (70% co-ownership), as well as properties
acquired in the 30th period, including Park Axis Toyocho Shinsui Koen (35% co-ownership) (together with properties to be acquired,collectively referred to as the “New Properties Acquired”; the same applies hereinafter).
3.

The calculation of the “impact on DPU from the properties acquired in the 29th and 30th periods included in the previous forecast”
uses the amount obtained by deducting rental expenses and asset management fees arisen thereto from revenues from property
leasing associated with the properties acquired in the 29th and 30th Periods, which was used for the calculation of the financial
results forecast for the 31st period announced on October 19, 2020 (“previous forecast”). The impact is then calculated by dividing
the amount by the number of investment units issued of 484,522 units used for the calculation of the said forecast.

4.

The figure of DPU “based on properties held as of February 29, 2020 (estimated value based on the new forecast)” refers to theforecast DPU for the 31st period based on the calculation of 126 properties held as of the end of the 28th period (September 1,
2019 to February 29, 2020). It is calculated by excluding the amount of “impact on DPU from the properties acquired in the 29th and30th periods included in the previous forecast” based on the financial results forecast for the 31st period announced today.

5.

The figure of DPU “after the acquisition of New Properties Acquired (after the consideration of full-period occupancy and expensingof fixed property and urban planning taxes) (estimated value based on the new forecast)” is calculated by adding the following (1)and (2) to and subtracting (3) from the DPU “based on properties held as of February 29, 2020”: The figures differ from the forecasted
distribution per unit for the 31st period released today, as they were calculated by adding (2) and (3) below without consideration to
the amount of reversal of internal reserves (reserve for reduction entry).
(1)“New Properties Acquired + Capital increase through the Public Offering”: calculated by dividing the amount of revenues
from property leasing associated with the New Properties Acquired, which was used for the calculation of the financial results
forecast for the 31st period announced today, (net of rental expenses) by the projected number of investment units to beissued as of the end of the 31st period of 503,472 units.

(2)“Full-period occupancy of properties to be acquired”: calculated by dividing the amount of incremental revenues fromproperty leasing (net of incremental rental expenses) by the projected number of investment units to be issued as of the endof the 31st period of 503,472 units, based on the assumption that properties to be acquired on April 5, 2021 will be occupied
throughout the full period.

(3)“Expensing of fixed property and urban planning taxes associated with the new properties to be acquired”: calculated by
dividing the amount of fixed property and urban planning taxes assumed to be expensed associated with the new properties
to be acquired by the projected number of investment units to be issued as of the end of the 31st period of 503,472 units.

6.

The “new forecast” refers to the financial results forecast for the 31st period released today.

7.

“LTV (Loan to Value Ratio)” refers to the percentage of interest-bearing debt to the total assets of NAF. The “LTV” after theannouncement of the previous forecast is calculated by dividing the outstanding balance of interest-bearing debt as of October 31,
2020 by the amount of total assets as of October 31, 2020 (a prospective amount obtained by adding the amount equivalent toborrowings at the time of the acquisition of properties acquired in the 30th period to the amount of total assets on the balance sheet
for the 29th period). The “LTV” after the Offerings (*) is calculated by dividing the outstanding balance of interest-bearing debt as of
October 31, 2020 by the amount of total assets after the Offerings (a prospective amount obtained by adding the amount equivalent
to borrowings at the time of the acquisition of properties acquired in the 30th period and the amount of unitholders’ capital expected
to increase through the Offerings (*) to the amount of total assets on the balance sheet for the 29th period). The unitholders’ capital
expected to increase thorough the Offerings is the sum of the prospective amounts of total issue value of the Offerings (*).
Accordingly, if the actual issue value of the Offerings is less than the prospective amount of issue value (*), or if the payment is notmade for all or part of the new investment units to be issued through the Third-party Allocation, the total issue value of the Offerings
becomes less than the above prospective amount of total issue value, and the actual LTV after the Offerings could therefore behigher than the estimate. In contrast, if the actual issue value is higher than the above prospective amount of issue value, the total
issue value of the Offerings becomes higher than the above prospective amount of total issue value, and the actual LTV after theOfferings could therefore be lower than the estimate.
* “After the Offerings” refers to when the Offerings are entirely completed. The same shall apply hereinafter. Furthermore, all of
the “expected amount of unitholders’ capital,” “prospective amount of total issue value” and “prospective amount of issue value”
above are prospective amounts calculated based on the closing price of regular trading of the Investment Units at the Tokyo
Stock Exchange as of Monday, November 16, 2020, and based on the assumption that all the investment units to be issued
through the Third-party Allocation will be paid in by Nomura Securities Co., Ltd., the book runner of the issuance of new
investment units announced today in the press release “Notification Concerning Issuance of New Investment Units andSecondary Offering of Investment Units.”

8.

“Acquisition capacity” refers to debt capacity, an extra amount of interest-bearing debt that a firm can service. The figures aboveshow a range of estimated debt capacities at the time of each LTV calculation up to LTV of 55%, which is NAF’s LTV target.

<Caution> This document is a press release intended for general publication regarding revision to financial results forecast for theperiods ending February 28, 2021 and August 31, 2021 and is not for purposes of soliciting investment. When investing, we ask thatinvestors exercise their own judgment taking full responsibility after having read carefully the new investment unit issuance andsecondary offering prospectus, or any corrections thereof (if made), prepared by NAF.

6