September 20, 2007
To All Concerned Parties
Issuer of Real Estate Investment Trust Securities
1-1, Nihonbashi-Muromachi 2-chome, Chuo-ku, Tokyo 103-0022
Nippon Accommodations Fund Inc.
Representative Executive Director Nobuyuki Nakai(Code number 3226)
Investment Trust Management Company
Mitsui Fudosan Accommodations Fund Management Co., Ltd.
Representative President and CEO Nobuyuki Nakai
Contact CFO and Director Morio Shibata(TEL 03-3246-3677)

Notification of Updated Probable Maximum Loss (PML)in Earthquake Risk Assessment
Nippon Accommodations Fund Inc. (“NAF”), requested Sumitomo Mitsui Construction Co.,
Ltd. to perform a survey of probable maximum loss (PML) for investment assets owned,
through an earthquake risk assessment. Sumitomo Mitsui Construction Co., Ltd. has now
changed its method of calculating earthquake risk. The report on updated probable maximumloss (PML) has been received, so it is shown below.

1. Results of updated Probable Maximum Loss (PML)
Property Name

PML (%)
Before Change

After ChangeRiver Point Tower
Okawabata
Apartment
Park Side Wings
Communities
Pier West House
Park Axis Gakugei Daigaku

4.9％
9.9％
8.9％
9.7％

4.5%
7.9%
7.0%
7.6%

Park Axis Ichigaya

8.5％

7.3%

Park Axis Shibuya Jinnan

8.7％

6.8%

Park Axis Aoyama Kotto-dori

9.2％

7.0%

Park Axis Kagurazaka Stage

8.4％

7.5%

Park Axis Shiroganedai

12.0％

8.7%

Park Axis Bunkyo Stage

7.2％

6.5%

Park Axis Tsukishima

10.1％

6.8%

Park Axis Otsuka

7.4％

6.4%

Park Axis Minami Azabu

9.2％

7.4%

Park Axis Shibuya

10.7％

7.9%

Park Axis Nihonbashi Stage

11.3％

7.5%

Park Axis Hamamatsucho

9.4％

7.1%

Park Axis Hongo No Mori

11.2％

8.8%

Park Axis Tameike Sanno

9.8％

8.2%

Park Axis Roppongi Hinokicho Park

9.5％

9.2%

Park Axis Ochanomizu Stage

10.0％

7.2%

Park Axis Okachimachi

10.3％

6.8%

Park Cube Hongo

10.1％

8.2%

Park Cube Kanda

10.9％

8.9%

Park Cube Ichigaya

9.1％

6.8%

Park Cube Asakusa Tawaramachi

9.1％

8.8%

Park Cube Ueno

10.8％

7.5%

Park Cube Ikebukuro Kanamecho(Note 2)

10.5%

8.1%

Park Axis Meguro Honcho(Note 2)

9.6%

8.5%

(East)(Note 2)

8.7%

7.3%

(West)(Note 2)

9.1%

7.5%

Park Cube Keio Hachioji

9.6％

7.1%

Park Cube Keio Hachioji 2

9.5％

7.6%

Park Axis Shin Itabashi

5.8％Park Axis Meieki Minami

Portfolio PML(Note 1)

(Note 3) 5.1%

4.1%

(Note 4) 4.0%

PML(Probable Maximum Loss）represents the rate of expected maximum loss to be caused byearthquakes. In this case, it means the extent of damage to be caused by one of the biggest
earthquakes anticipated to happen within the expected duration of service (the biggest
earthquake which happens once every 475 years = 10% chance of a big earthquake
happening once every 50 years), represented by the estimated cost of restoration from thedamage as a percentage of the replacement cost.

(Note 2)

Notes PML at time of acquisition for each property (Park Cube Ikebukuro Kanamecho, ParkAxis Meguro Honcho, Park Axis Shin Itabashi East, Park Axis Shin Itabashi West)(Note 3)

“Portfolio PML” in the “Before Change” column is the PML for the entire portfolio of 27
properties (29 buildings) owned as of the end of February 2007, excluding Park CubeIkebukuro Kanamecho, Park Axis Meguro Honcho, Park Axis Shin Itabashi East, and Park
Axis Shin Itabashi West.

(Note 4)

“Portfolio PML” in the “After Change” column is the PML for the entire portfolio of 30 properties(33 buildings).

2. About the change in the earthquake risk calculation method
Regarding the calculations of the earthquake risk assessment done by Sumitomo
Mitsui Construction Co., Ltd., the calculation method was renewed by introducing new
knowledge acquired, as described below.
(1) Amplification of earthquake tremors in the groundIn the previous method, the amplification rate (note 1) was evaluated by the averagehardness of ground obtained from ground information of the sites, but in the new method,
ground information of the sites was used to perform seismic response analysis (note 2),
and these analysis results were used to evaluate the amplification rate.

(2) Earthquake vulnerability evaluation of buildings
Various vulnerability data were updated, based on earthquake damage surveys inrecent years and statistical analysis of these surveys.

(Note 1) This is the percentage that earthquake tremors’ (shaking) is amplified (increased) in the processof transmitting tremors from the foundation (note 3) to the ground surface.
(Note 2) A method which uses information such as actual earthquake wave shapes in performing
simulation analysis of earthquakes in a computer, to calculate what kind of behavior would occur
in the ground.
(Note 3) Hard ground such as bedrock, Ground where earthquake tremors are likely to be transmitted
directly without much amplification.

(Regarding the vocabulary used in the explanatory text, please understand that we tried to use common
expressions, resulting in expressions which are not scientifically optimal)* This English language notice is a translation of the Japanese language notice dated
September 7, 2007 and was prepared solely for the convenience of and reference by,overseas investors. NAF makes no warranties as to its accuracy or completeness.