To unitholders in the United States:

This exchange offer or business combination is made for the securities of a foreign investment
corporation. The offer is subject to disclosure requirements of a foreign country that are different
from those of the United States. Financial statements included in the document, if any, have been
prepared in accordance with foreign accounting standards that may not be comparable to thefinancial statements of United States companies.

It may be difficult for you to enforce your rights and any claim you may have arising under thefederal securities laws, since the issuer is located in a foreign country, and some or all of its officers
may be residents of a foreign country. You may not be able to sue a foreign investment corporation or
its officers in a foreign court for violations of the U.S. securities laws. It may be difficult to compel aforeign investment corporation and its affiliates to subject themselves to a U.S. court’s judgment.

You should be aware that the issuer may purchase securities otherwise than under the exchange offer,such as in open market or privately negotiated purchases.

[For Translation Purposes Only]
May 27, 2015

For Immediate Release
To Whom It May Concern

Nomura Real Estate Master Fund, Inc.
Securities Code: 3285
Satoshi Yanagita, Executive Director
Nomura Real Estate Office Fund, Inc.
Securities Code: 8959
Yoshiyuki Ito, Executive Director
Nomura Real Estate Residential Fund, Inc.
Securities Code: 3240
Shozo Matsumura, Executive Director
Asset Management Company:
Nomura Real Estate Asset Management Co., Ltd.
Norio Ambe, President & Chief Executive Officer
Inquiries:
Motomi UkiGeneral Manager, NMF Investment ManagementDirector
TEL. +81-3-3365-8767 nmf3285@nomura-re.co.jp
Shoji Yoshihara
General Manager, NOF Investment Management
Director
TEL. +81-3-3365-0507 nreof8959@nomura-re.co.jp
Tetsuya Ohira
General Manager, NRF Investment Management
TEL. +81-3-3365-7729 nrf3240@nomura-re.co.jp

Notice Concerning Forecasts of Financial Results
for the Fiscal Period Ending February 29, 2016 and the Fiscal Period Ending August 31, 2016
following the Merger between Nomura Real Estate Master Fund, Inc., Nomura Real Estate Office
Fund, Inc. and Nomura Real Estate Residential Fund, Inc.
Nomura Real Estate Master Fund, Inc. (“NMF”), Nomura Real Estate Office Fund, Inc. (“NOF”) and Nomura Real Estate
Residential Fund, Inc. (“NRF”) announced today the forecasts of the financial results for the fiscal period ending February 29,
2016 (October 1, 2015 to February 29, 2016) and the fiscal period ending August 31, 2016 (March 1, 2016 to August 31, 2016) of
the new investment corporation (the “New Investment Corporation”) to be incorporated through the merger (the “Merger”). The
forecasts are summarized as follows.

Operating
Revenues

Operating
IncomeOrdinary
Income(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

Cash
Cash
Distribution Distribution in Distribution
Per Unit
Per Unit
Excess of Net
Net Income(Excluding(Including
Income Per
Distribution inDistribution in(Millions of Yen)
Unit
Excess of Net
Excess of Net(Yen)Income)
Income)(Yen)

Fiscal PeriodEndingFebruary 29,2016
Fiscal PeriodEndingAugust 31,
2016

(Yen)

24,137

6,292

3,581

3,580

962

1,138

2,100

29,642

10,662

8,088

8,087

2,173

537

2,710

[Notes]1. The fiscal period ending February 29, 2016 (the first fiscal period) of the New Investment Corporation will be fromOctober 1, 2015 to February 29, 2016. The fiscal periods ending August 31, 2016 (the second fiscal period) and thereafter
will be from March 1 to the end of August and September 1 to the end of February of following year.
2. The above forecast of the financial results for the fiscal period ending February 2016 (the first fiscal period) is based on acalculation period of 5 months (152 days), and the amount of cash distribution per unit (including distribution in excess ofnet income) for the 6-month equivalent would be 2,520 yen.
3. Anticipated total number of investment units as of the end of the fiscal periods is 3,722,010 units.
4. The forecasts presented in this document are calculated as of today, based on the assumptions set forth in the attached“Assumptions for Forecasts of the Financial Results for the Fiscal Periods Ending February 29, 2016 (First Fiscal Period)and August 31, 2016 (Second Fiscal Period)” as Exhibit. The actual operating revenues, operating income, ordinaryincome, net income and cash distribution per unit may differ due to future acquisition or disposition of properties, changes
in the real estate market, and other factors affecting the New Investment Corporation. We do not guarantee the amount ofcash distribution stated above.
5. In these forecasts, the goodwill from the consolidation-type merger between NMF, NOF and NRF is provisionallyestimated to be “80,116 million yen” and the goodwill is scheduled to be accounted as assets and amortized using thestraight-line method over 20 years on a regular basis, premised on the adoption of the Accounting Standard for Business
Combinations, as amended on September 13, 2013. The actual amount of the goodwill may differ from the amount statedabove. Please refer to “Amortization Expenses for Goodwill” in the attached “Assumptions for Forecasts of the Financial
Results for the Fiscal Periods Ending February 29, 2016 (First Fiscal Period) and August 31, 2016 (Second Fiscal Period)”
as Exhibit for details.
6. Distribution in excess of net income per unit consists of distribution of the reserve for temporary difference adjustments
and distribution other than that (the “Distribution Reducing Unitholders’ Capital for Tax Purpose”). Of the 1,138 yen of
distribution in excess of net income per unit for the first fiscal period, the reserve for temporary difference adjustments isexpected to be 653 yen and the Distribution Reducing Unitholders’ Capital for Tax Purpose is expected to be 485 yen, andof the 537 yen of distribution in excess of net income per unit for the second fiscal period, the reserve for temporary
difference adjustments is expected to be 34 yen and the Distribution Reducing Unitholders’ Capital for Tax Purpose isexpected to be 503 yen. For your reference, the reserve for temporary difference adjustments is treated as dividends fortax purposes and is subject to withholding. In addition, the Distribution Reducing Unitholders’ Capital for Tax Purpose
falls under a return of capital for tax purpose, and in principle, the large part of such amount is treated as the amount ofincome generate from transfer of investment units (some part may be treated as deemed dividend).
7. The forecasts may be revised if a certain variance from the forecasts mentioned above is expected.
8. Amounts less than the stated units are rounded down.

[Exhibit]
Assumptions for Forecasts of the Financial Results for the Fiscal Periods
Ending February 29, 2016 (First Fiscal Period) and August 31, 2016 (Second Fiscal Period)
ItemPeriod

AssumptionsFirst Fiscal Period: October 1, 2015 to February 29, 2016
Second Fiscal Period: March 1, 2016 to August 31, 2016

 It is assumed that the New Investment Corporation will be incorporated onInvestment Portfolio

October 1, 2015 as described in “Notice Concerning Execution of Merger
Agreement by and among Nomura Real Estate Master Fund, Inc., Nomura
Real Estate Office Fund, Inc. and Nomura Real Estate Residential Fund, Inc.”
released as of today, and succeed 257 properties consisting of the real estate
and the real estate beneficiary interests in trust (the “Assets to BeSucceeded”). It is also assumed that the New Investment Corporation willacquire 4 properties (NRE Kichijoji Building, GEMS Ichigaya, PROUDFLAT Hatchobori and PROUD FLAT Itabashi Honcho) on October 30, 2015
and 3 properties (PMO Tamachi, PMO Ginza Hatchome and PMO Shibakoen)
on March 1, 2016 (collectively, the “Assets to Be Acquired”) as described in“Notice Concerning Acquisition of Assets” released as of today.
 In forecasting the financial results, it is assumed that the New Investment
Corporation will have succeeded and acquired the Assets to Be Succeeded andthe Assets to Be Acquired (collectively, the “Acquired Assets”) on eachscheduled succession or acquisition date, and assumes that there will be nochanges in assets under management (new property acquisitions or sales ofportfolio properties) until August 30, 2016.
 The forecasts may be subject to changes, due to the shifting of the portfolio.
 Leasing income is estimated based on the information provided by the current

Operating Revenues

owners of the Acquired Assets, the tenant trends, competitive properties
located in adjacent areas, and the real estate market conditions, etc., andassuming that there are no arrears and nonpayment cases.
 In respect of leasing expenses, which constitute a principal component of

Operating Expenses(excluding Amortization
Expenses for Goodwill)

operating expenses, expenses other than depreciation and amortization arecalculated based on the historical data reflecting factors that may cause
expenses to fluctuate, based on the information provided by the current
owners of each Acquired Asset.
 In general, the fixed asset taxes and urban planning taxes of the Assets to Be
Acquired are divided between the seller and the purchaser on a pro-rata basis
based on holding period and settled at the time of acquisition, and such taxes
are deemed as acquisition costs and are not included in the expenses.
 The tax amount is estimated to be ¥2,290 million for the fiscal period ending
February 29, 2016 (the first fiscal period) and ¥2,319 million for the fiscalperiod ending August 31, 2016 (the second fiscal period). These amounts areincluded in the leasing expenses.
 The outsourcing fee is estimated to be ¥2,382 million for the fiscal period

ending February 29, 2016 (the first fiscal period) and ¥2,942 million for thefiscal period ending August 31, 2016 (the second fiscal period).
 Maintenance and repair expenses required for each fiscal period are calculated
based on the mid-to-long term repair plans the asset management company
has established. However, the actual expenses for the maintenance andrepair for the fiscal periods may differ significantly from the estimates due toexpenses for urgent repair on damages to a building caused by unforeseeable
events, the tendency for significant fluctuation in amounts year by year orexpenses for certain types of repair not required periodically.
 Depreciation and amortization are estimated to be ¥3,461 million for the fiscal
period ending February 29, 2016 (the first fiscal period) and ¥4,231 million
for the fiscal period ending August 31, 2016 (the second fiscal period).
However, the book values as of the effective date of the merger of thebuildings and other properties currently owned by NOF, NRF and NMF arenot fixed and may be subject to changes.
 Leasing expenses are estimated to be ¥11,413 million for the fiscal period

ending February 29, 2016 (the first fiscal period) and ¥13,811 million for thefiscal period ending August 31, 2016 (the second fiscal period).
 The amount to be recorded as the merger related expenses is estimated to be¥2,568 million for the fiscal period ending February 29, 2016 (the first fiscalperiod).
 Other operating expenses (fees payable to the asset management company, thecustodian of assets and the general administrators) are estimated to be ¥4,762
million for the fiscal period ending February 29, 2016 (the first fiscal period)and ¥3,165 million for the fiscal period ending August 31, 2016 (the secondfiscal period).
 Goodwill is expected to accrue upon the Merger and will be accounted asAmortization Expenses
for Goodwill

assets and amortized using the straight-line method over 20 years on a regularbasis pursuant to the Accounting Standards for Business Combinations(Statement No. 21), as amended on September 13, 2013. Currently, theamount of goodwill is provisionally estimated to be ¥80,116 million. Suchamount is calculated on the assumption that the New Investment Corporationwill succeed the assets (¥556,017 million in total) and liabilities (¥321,040million in total) from NOF and NFR, the acquirees under such accounting
standards and the acquisition cost of the merger will be ¥315,094 million(calculated based on the closing price (¥153,200) of NMF units on May 26,
2015, which will be allotted as the consideration for the acquisition).
However, the amount of goodwill is not fixed and may be subject to changes.
The goodwill amortization is provisionally estimated to be ¥1,669 million for
the fiscal period ending February 29, 2016 (the first fiscal period) and ¥2,002
million for the fiscal period ending August 31, 2016 (the second fiscal period).
 The goodwill amortization is the item that will cause the difference between
accounting and tax treatment and may result in the imposition of corporation
tax or other tax. Following the tax reform in tax year 2015, the New
Investment Corporation intends to make cash distributions in excess of its
profits for the purpose of tax relief during the goodwill amortization period,and it is expected that the New Investment Corporation will be able to avoid
such taxation.
 Listing and other related expenses are estimated to be ¥520 million as

Non-Operating Expensestemporary expenses for the fiscal period ending February 29, 2016 (the firstfiscal period).
 Interest expenses and borrowing related expenses are estimated to be ¥2,389
million for the fiscal period ending February 29, 2016 (the first fiscal period)and ¥2,779 million for the fiscal period ending August 31, 2016 (the secondfiscal period).
 As of the effective date of the Merger, the outstanding interest-bearing debts

of NMF, NOF and NRF are estimated to be ¥110,307 million, ¥196,700
million and ¥87,740 million, respectively. It is assumed that the New
Investment Corporation will succeed ¥394,747 million in total, consisting ofborrowings (¥347,247 million) and investment corporation bonds (¥47,500million).
 Portions of the borrowings (¥11,082 million) will become due and payable byInterest-Bearing Debts

the end of the fiscal period ending February 29, 2016 (the first fiscal period).
It is assumed that the New Investment Corporation will repay ¥382 million byusing cash on hand and refinance the entire remaining amount throughborrowings.
Although portions of the investment corporation bonds(¥15,000 million in total) will reach maturity by the end of the same fiscalperiod, it is assumed that the New Investment Corporation will redeem suchbonds through the funds raised by the borrowings or other funding methods.
 Portions of the borrowings (¥26,322 million) will become due and payable by

the end of the fiscal period ending August 31, 2016 (the second fiscal period).
It is assumed that the New Investment Corporation will repay ¥92 million byusing cash on hand and refinance the entire remaining amount throughborrowings. No investment corporation bonds will reach maturity by the endof the same fiscal period.

 It is assumed that the New Investment Corporation will borrow ¥9,300 million

in new loans to finance the acquisition of 4 properties on October 30, 2015.
 It is assumed that the New Investment Corporation will borrow ¥14,700

million in new loans to finance the acquisition of 3 properties on March 1,2016.
 It is assumed that there will be no changes in the amount of the outstanding
borrowings and investment corporation bonds (including the short term
investment corporation bonds) other than the amount stated above.
 It is assumed that the number of investment units to be issued upon the merger

Investment Units

Cash Distributions perUnit

will be 3,722,010 as described in “Notice Concerning Execution of Merger
Agreement by and among Nomura Real Estate Master Fund, Inc., Nomura
Real Estate Office Fund, Inc. and Nomura Real Estate Residential Fund, Inc.”
released as of today.
 Other than the above, it is assumed that no new investment units will be issued
until the end of fiscal period ending August 31, 2016 (the second fiscalperiod).
 Cash distribution per unit is calculated based on 3,722,010 units of the New
Investment Corporation to be issued upon the merger.
 Cash distributions per unit may differ due to various factors, includingchanges of portfolio, changes in leasing income caused by change in tenants,and unforeseen repairs.
 The amount of distribution in excess of net income is estimated on theDistribution in Excess ofNet Income per Unit

assumption that, for the purpose of tax relief, the New Investment Corporation
will distribute the amount equivalent to the total amount of the goodwill
amortization, etc. that will cause the difference between accounting and tax
treatment, and may result in the imposition of corporation tax or other tax.
In order to alleviate the impact of the goodwill amortization and other merger
related expenses (the “Merger Expenses”) on cash distribution, the above
estimate is based on the assumption that, if the total amount of the difference
between accounting and tax treatment for each fiscal period is less than theMerger Expenses, the New Investment Corporation will make distribution inexcess of net income by adding such amount up to the amount of Merger
Expenses, within the limit as prescribed by the regulations of the Investment
Trusts Association, Japan (meaning the amount equivalent to 60/100 of thedepreciation and amortization recorded as of the end of the relevant
calculation period).
 It is assumed that there will be no amendments in legislation, taxation,Othersaccounting principles, listing requirements and the Investment Trusts
Association, Japan regulations, which affect the above forecasts.
 It is assumed that there will be no material changes in general economic

conditions and real estate markets.