SUMMARY OF FINANCIAL RESULTS (REIT)
For the 4th Fiscal Period Ended February 28, 2015
April 14, 2015
REIT securities issuer:
Securities code:
Representative:

Nomura Real Estate Master Fund, Inc. (“NMF”)
3285
Satoshi Yanagita, Executive Director

Asset management company:
Representative:
Inquiries:

Nomura Real Estate Asset Management Co., Ltd.
Norio Ambe, President and Chief Executive Officer
Motomi Uki, General Manager, NMF Investment Management

Scheduled date of filing of securities report:
Scheduled date of commencement of distribution payout:
Preparation for supplementary materials on financial results:
Holding of briefing session on financial results:

Stock exchange listing: Tokyo Stock Exchange
URL: http://www.nre-mf.co.jp/english/

TEL: +81-3-3365-8767

May 25, 2015
May 19, 2015
Yes
Yes (for institutional investors and analyst)[Amounts are rounded down to the nearest million yen]

1. Financial Results for the Fiscal Period Ended February 28, 2015 (4th period) (from September 1, 2014 to February
28, 2015)(1) Operating Results[% figures are the ratio of increase (decrease) compared with the previous period]
Operating Revenues
Period ended
February 28, 2015
August 31, 2014

million yen
10,066
9,468

Operating Profit

%
(6.3)
(3.2)

Net Income
per Unit
Period ended

million yen
4,750
4,638

Ordinary Income%(2.4)(△13.3)Return on Unitholders’Equityyen

February 28, 2015
August 31, 2014

million yen
4,146
4,081

2.5
2.5

million yen
4,145
4,079

%
(1.6)
(△16.1)

Ratio of
Ordinary Income
to Operating Revenue

Ratio of
Ordinary Income
to Total Assets

%

2,489
2,450

Net Income%(1.6)(△16.1)

%

%

1.6
1.6

41.2
43.1

(2) Distributions
Distribution
per Unit

Total
Distributions(excluding distribution
in excess of earnings)(excluding distribution
in excess of earnings)

yenmillion yen
4,146
4,079

Period ended
February 28, 2015
August 31, 2014

2,490
2,450

Distribution
in excess of Net
Income per Unit
yen
0
0

Total
Distributions
in Excess of
Net Income

Distribution
Payout Ratio

million yen
00

Ratio ofDistributions to
Net Assets

%

%

100.0
99.9

2.5
2.5

(3) Financial Position
Total Assets
Period ended

million yen
276,539
257,040

February 28, 2015
August 31, 2014

Net Assets
million yen
165,267
165,201

Net Assets to Total Assets

Net Assets per Unit

%
59.8
64.3

yen
99,244
99,204(4) Status of Cash FlowsNet Cash
Provided by (used in)Operating Activities
Period ended
February 28, 2015
August 31, 2014

million yen
5,024
5,658

Net Cash
Provided by (used in)Investing Activities
million yen△17,482△1,141－ 1 －Net Cash
Provided by (used in)
Financing Activities
million yen
14,650△8,878Cash and
Cash Equivalents
at End of Period
million yen
18,82016,627

2. Earnings Forecasts for the Fiscal Period Ending August 31, 2015 (5th period) (from March 1, 2015 to August 31,
2015) and February 29, 2016 (6th period) (from September 1, 2015 to February 29, 2016)[% figures are the ratio of increase (decrease) compared with the previous period]

Operating Revenues
Period ending
August 31, 2015
February 29, 2016

million yen
10,30810,654

Operating Profits

(%)
(2.4)
(3.4)

million yen
4,787
4,907

(%)
(0.8)
(2.5)

Distribution per Unit

Ordinary Income
million yen
4,130
4,230

(%)
(△0.4)(2.4)

Net Income
million yen
4,129
4,229

(%)
(△0.4)(2.4)

Distribution in Excess of Earnings per Unit

(excluding distribution in excess of earnings)

Period ending
August 31, 2015
February 29, 2016
(Reference) Forecast net income per unit

yen
2,480
2,540
for the fiscal period ending August 31, 2015:
for the fiscal period ending February 29, 2016:

yen––
2,480 yen
2,540 yen

*Other(1) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement① Changes in accounting policies accompanying amendments to accounting standards, etc.:② Changes in accounting policies other than in ①:③ Changes in accounting estimates:④ Retrospective restatement:

None
None
None
None

(2) Number of Investment Units Issued and Outstanding① Number of investment units issued (including treasury investment units)
As of February 28, 2015:
1,665,260 units
As of August 31, 2014:
1,665,260 units② Number of treasury investment units
As of February 28, 2015:– units
As of August 31, 2014:– units(Note) For the number of investment units used as the basis for calculation of net income per unit, please refer to“Notes on Per Unit Information” on page 27.
* Presentation of the status of implementation of audit procedures
At the time of disclosure of this report, audit procedures for financial statements pursuant to the Financial
Instruments and Exchange Act (Act No. 25 of 1948) have not been completed.
* Explanation of the appropriate use of the forecast for management status, and other matters of special note
The outlook for management status and other forward-looking statements contained in this report are basedon information currently available to and certain assumptions deemed reasonable by NMF. Accordingly,
actual management status, etc. may differ materially due to a variety of factors. In addition, the forecast is
not a guarantee of the amount of distributions. For the matters to note in the use of the assumptions
underlying the forecast for management status and the forecast for management status, etc., please refer to“2. Management Policy and Management Status; (2) Management Status” on page 3.

This is an English language translation of the original Japanese announcement of the financial statements(“Kessan Tanshin”). This translation is provided for information purpose only. Should there be any discrepancy
between this translation and the Japanese original, the Japanese original shall prevail.
－ 2 －Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

Attachment
1. Related Corporations of the Investment Corporation
Disclosure is omitted, since there are no significant changes from the “Structure of the Investment
Corporation” presented in the securities report (filed on November 28, 2014).
2. Management Policy and Management Status(1) Management Policy
Disclosure is omitted, since there are no significant changes from the “Investment Policy,” “Investment
Targets” and “Distribution Policy” presented in the securities report (filed on November 28, 2014).
(2) Management Status① Outline of Fiscal Period under Review
NMF was incorporated on January 31, 2013 by Nomura Real Estate Asset Management Co., Ltd. underthe Act on Investment Trusts and Investment Corporations, and listed on the Real Estate Investment Trust
Securities Market of Tokyo Stock Exchange, Inc. on June 12, 2013 (securities code: 3285).
NMF adopts the basic asset management policy of investing primarily in specified assets of real estate,etc. to secure stable income and steady growth of assets under management over the medium- to long-term.
NMF has set primarily logistics facilities and retail facilities as main investment targets to achieve the basic
policy described above. Both types of facilities are regarded as being essential to economic activities, withlogistics facilities as industrial infrastructure and retail facilities as infrastructure supporting consumption
activities.
Based on an investment strategy of building a balanced portfolio of logistics facilities and retail facilities
and also focusing on the Greater Tokyo area, where strong demand is expected, NMF will aim to securestable income over the medium to long term.
(Note) The Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951) is hereinafter referred to as the “Investment Trusts Act.”“Assets under management” refers to assets that belong to NMF.
For the purposes of this report, real estate includes rights of lease and superficies of real estate. Unless otherwise stated, the same applies
hereinafter.
“Real estate, etc.” refers to assets defined in Article 29, Paragraph 1 (1) or (2) of NMF’s Articles of Incorporation, and “real estate backed
securities” refers to assets defined in Article 29, Paragraph 1 (3) of NMF’s Articles of Incorporation.
“Real estate, etc.” and “real estate backed securities” are hereinafter collectively referred to as “real estate related assets.”
Real estate and the underlying real estate of real estate related assets are together referred to as the “real estate under management” or the“property.”“Greater Tokyo area” refers to Tokyo, Kanagawa, Chiba and Saitama prefectures.

A. Investment Environment and Management Performance
The Japanese economy has continuously been on a moderate recovery trend due to the bottoming outof domestic consumption which had remained slow since the consumption tax hike in April 2014. As aresult, real GDP growth rate reached 1.5% according to “Quarterly Estimates of GDP: Oct. – Dec. 2014
(The 2nd Preliminary Estimates)”announced by the Cabinet Office. Furthermore, the postponement of
the consumption tax hike and price decrease due to low crude oil price, in addition to the progressing
depreciation of the yen and high stock prices affected by the additional monetary easing conducted by the
Bank of Japan, are serving as a tailwind for the economy as evidenced by the reinforced improving trends
in the confidence for future economic conditions among companies and households since December 2014indicated in “Economy Watchers Survey” conducted by the Cabinet office. Going forward, personal
consumption and capital investments are expected to lead the growth against the backdrop of
improvement in the employment and income environment as well as strong corporate earnings.
Under such an environment, the J-REIT market has been experiencing inflow of both domestic andforeign investment capital due to expectation for recovery of the Japanese economy and the real estatemarket. Furthermore, the upward trend of the TSE REIT Index grew, surpassing 2,000 points at one point,etc., partly due to the Bank of Japan implementing additional monetary easing in October 2014 withdecision to further purchase J-REIT investment units. Although it recently turned downward, it still
remains at a high level. In addition, reviewing of the composition of the portfolio of Government
Pension Investment Fund, the largest pension fund operator in Japan, and led to part of their vast fundbeing invested in the J-REIT market has also become a tailwind. Backed by such favorable financing
environment among other factors, there were continuous active property acquisitions accompanying new
J-REIT listings and capital increases through public offering by existing J-REITs.
Concerning the environment surrounding retail facilities, consumer confidence is steadily improving due
to the postponement of the consumption tax hike and price decrease brought by low crude oil price. As aresult, improvement in expenditure for non-durable goods (food and beverage, daily commodity, etc.) has－ 3 －Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

been seen since October 2014 according to the Family Income and Expenditure Survey by the Statistics
Bureau, Ministry of Internal Affairs and Communications. Going forward, the improving trend ispredicted to spread to expenditure for durable goods (automobiles, home electrical appliances, etc.), which
has been struggling, as improvement in the income and employment environment can be anticipated dueto the permeating of wage increases and tight supply-demand balance of the workforce. Furthermore, theretail industry shows a high level of capital investment against the backdrop of anticipated economic
recovery, and moves for opening new stores or renovating/increasing floor area of existing stores havebeen active centering on major metropolitan areas.
Concerning logistics facilities market trends, supported by activated demand from the food wholesale
business in addition to demand from e-commerce and internet mail-orders and the fashion/apparelindustry, serving as the demand-driving forces, as well as demand from the accompanying third-party
logistics (Note 1) business expansion, supply-demand remains tight and the vacancy rate of large logistics
facilities continues to be at a low level. Although large new supply is expected in 2015 through 2016, theratio of highly-functional logistics facilities needed for realizing an efficient delivery network is still small inthe entire stock, thus strong demand for such prime properties is expected to continue for the time being.
In the real estate transaction market, appetite for property acquisition continues to be strong centeringon J-REITs and other real estate funds inside and outside Japan and real estate companies backed by thefavorable financing environment in Japan due to monetary easing, etc., recovering moves in the leasing
market and other factors. On the other hand, some cases of overheated transactions are observed inproperty acquisition competition due to the increased number of transaction participants and theanticipated increase in asset prices.
Under such circumstances, NMF acquired a retail facility Universal CityWalk Osaka on September 30,
2014 (acquisition price of 15,500 million yen) and additionally acquired compartmentalized ownershipand trust beneficiary interest with its land as asset in trust of retail facility Kawasaki More’s (acquisition
price of 2,080 million yen) on December 19, 2014.
As a result, the number of properties held by NMF (excluding an equity interest in a silent partnership)at the end of the 4th fiscal period was 56 properties (Note 2) (total acquisition price of 255,603 millionyen), investment ratio in the Greater Tokyo area accounted for 79.6% and gross leasable area was
911,615.63m2. In addition, the occupancy rate of the entire portfolio at the end of the 4th fiscal period
was stable at a high level of 99.8%.
In addition, on March 30, 2015 subsequent to the end of the 4th fiscal period (end of February 2015),
NMF acquired Godo Kaisha Osaka Hirakata Project Silent Partnership Equity Interest (investment
amount of 100 million yen) and, along with the acquisition, preferential negotiation right to purchase trust
beneficiary interest in mainly Hirakata Logistics Center. Furthermore, on April 10, 2015, NMF concluded apurchase and sale agreement for the acquisition of Kawaguchi Ryoke Logistics Center. Ryoke Capital
Godo Kaisha is the operator of the silent partnership in which NMF has made investment of 500 million
yen (approximately 17.9% of the silent partnership equity interest), and NMF exercised, for the conclusionof the purchase and sale agreement, the preferential negotiation right granted upon the acquisition ofsilent partnership equity interest. The scheduled acquisition date of Kawaguchi Ryoke Logistics Center is
July 1, 2015. On the other hand, on April 7, 2015, NMF decided to transfer Mitsubishi Motors Ibaraki
Maintenance Center as of early September, 2015. After these acquisitions and transfer, NMF’s investment
ratio in the Greater Tokyo area is expected to be 80.6%.
(Note 1) Third-party logistics (3PL) refers to logistics services outsourced by shippers for part or all of their logistics functions.
(Note 2) The above trust beneficiary interest in Kawasaki More’s additionally acquired is not counted as one property in the number of properties.

－ 4 －Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

B. Status of Fund Procurement
During the period under review, NMF borrowed 16,700 million yen on September 29, 2014 and 2,100
million yen on December 19, 2014 to fund part of the acquisition of a specified asset and related
expenses. In addition, in order to extend loan terms and diversify funding abilities, NMF issued
investment corporation bonds (10-year bond, total amount of 3,000 million yen) on October 30, 2014,
for the first time since its establishment and repaid part of existing loans. As a result, the balance ofinterest-bearing liabilities was 99,150 million yen and the ratio of interest-bearing liabilities to total assets(LTV) was 35.9% at the end of the 4th fiscal period.
Credit rating agency
Japan Credit Rating Agency, Ltd. (JCR)

Rating description
Long-term issuer rating:

：

Note
AA−

Rating outlook:

StableC. Business Performance and Distributions
As a result of the management described above, business performance for the 4th fiscal period was asfollows: operating revenue of 10,066 million yen, operating income of 4,750 million yen, ordinary
income of 4,146 million yen and net income of 4,145 million yen.
Concerning distributions in the 4th fiscal period, in order to have the maximum amount of
distributions of earnings included in deductible expenses by applying special measures for the tax
treatment (Article 67-15, Paragraph 1 of the Act on Special Measures Concerning Taxation (Act No. 26
of 1957)), NMF decided to distribute almost the entire amount of unappropriated retained earnings,
excluding fractions of the distribution per investment unit that are less than 1 yen. Accordingly, NMF
declared distribution per investment unit of 2,490 yen.

－ 5 －Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

② Outlook for Next Fiscal Period
A. Future Management Policy and Challenges
The Japanese economy ahead is anticipated to see the moderate recovery trend continue due to suchfactors as the recovery in corporate earnings and pickup in capital investment as well as improvement in
the employment and income environments. The effects from the consumption tax hike are also expected
to gradually ease.
In addition, in the J-REIT market, with Bank of Japan’s monetary easing policies leading to favorable
supply of funds to the real estate market as well as the ongoing stable level of TSE REIT Index, thefavorable financial and capital environment is anticipated to continue. On the other hand, since thenumber of transaction participants with a strong acquisition appetite is on the rise, the environment for
acquiring prime properties is forecast to become harsh.
Based on such recognition, NMF will engage in management based on the following policy in order tosecure stable income and steady growth of assets under management over the medium to long term.
(a) Expand asset size based on clear investment strategy
NMF will aim to secure stable income over the medium- to long-term based on an investment
strategy of focusing on the Greater Tokyo area, where strong demand is expected.
NMF will expand asset size in this manner and thereby diversify real estate under management to
reduce risks of income fluctuation and lower operational management costs through economies ofscale.
In view of making selective and effective investment in prime properties when investing in newproperties, NMF will work to obtain property sale information early and promote negotiatedtransactions through further expansion of independent property sourcing routes and collaboration
with the Nomura Real Estate Group, as well as conduct adequate due diligence to identify investment
risks.
(b) Property operations from the medium- to long-term perspective
The logistics facilities and retail facilities located in residential areas that NMF invests in are regarded
as having the potential to generate stable cash flows from long-term lease agreements with tenants,
while retail facilities located near train stations are regarded as having internal cash flow growthpotential. When operating logistics facilities and retail facilities located in residential areas, NMF will
operate with income stability in mind by striving to make the lease agreement a long-term agreement at
the time of agreement renewal. In addition, when operating retail facilities located near train stations,
NMF will operate with sights set on enhancing income by increasing the rent amount, etc. through,among others, renewal of agreementsand replacement of tenants in the economic recovery phase
based on an accurate grasp of the market environment.
Moreover, NMF will make utmost use of the Nomura Real Estate Group’s leasing, operation,building management and other management capabilities and strive to achieve a high and stable levelof occupancy rate and maintain and enhance the rent level in pursuit of stable portfolio income overthe medium- to long-term.
(c) Maintain and enhance stable financial base
When borrowing funds and issuing investment corporation bonds, NMF will conduct fundprocurement, taking into consideration the fund procurement flexibility and financial stability. In
addition, while closely monitoring financial market trends, use of interest-rate swaps, etc. forconversion of the interest rate to a fixed rate, extension of the loan period, procurement withdiversified repayment dates will be positioned at the core of the financial strategy and these will be
executed to build a stable financial base.

－ 6 －Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

③ Significant Subsequent Events
A. Transfer of the Asset
Nomura Real Estate Asset Management Co., Ltd., the asset management company for the Fund, has
determined the transfer of “Mitusbishi Motors Ibaraki Maintenance Center” on April 7, 2015, after
the end of 4th fiscal period (February 28, 2015).
Type of Asset

Trust beneficiary interest in mainly real estate

Property Name

Mitsubishi Motors Ibaraki Maintenance Center

Scheduled Transfer Price (Note)¥1,133 million
April 30, 2015
(date of agreement on purchase and sale of beneficial interest in real estate trust)
Early September, 2015 (date of delivery of beneficial interest in real estate trust)

Scheduled Date of Agreement
Scheduled Transfer Date
Transferee

Japanese General Operating Company
The Fund is scheduled to record around ¥240 million of transfer profit (including
Impact on Earnings
miscellaneous expences) as Operating Revenues on 6th fiscal period (from September
1, 2015 to February 29, 2016)(Note)
Excluding property taxes, urban planning taxes.

(Reference)
A. Acquisition of the asset
The Fund completed the acquisition of “Godo Kaisha Osaka Hirakata Project Silent Partnership Equity
Interest” on March 30, 2015, and concluded the purchase and sale agreement of “Kawaguchi Ryoke
Logistics Center” on April 10, 2015, after the end of 4th fiscal period (February 28, 2015).
① Overview of Godo Kaisha Osaka Hirakata Project Silent Partnership Equity Interest

Name of asset (Note 1)

Equity interest in silent partnership investing mainly in real estate in trust beneficiaryinterest
Godo Kaisha Osaka Hirakata Project Silent Partnership Equity Interest

Target property (Note 2)

Hirakata Logistics Center

Investment amount¥100 million (approximately 10.6% of total investment amount in the silent partnership)

Type of asset

Date of agreement
March 27, 2015
Date of acquisition of equity
March 30, 2015
interest
Financing:
Cash on hand
(Note 1) The asset is a silent partnership equity interest in a silent partnership operated by G.K. Osaka Hirakata Project.
(Note 2) G.K. Osaka Hirakata Project has acquired the trust beneficiary interest in mainly real estate on March 31, 2015.

－ 7 －Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

② Overview of Kawaguchi Ryoke Logistics Center
Type of asset
Name of asset (Note 1)
Location (Note 2)
Structure (Note 2)
Land Area (Note 2)
Building Area (Note 2)
Type of Ownership
Completion Date (Note 2)
Scheduled Acquisition Price(Note 3)

Trust beneficiary interest in mainly real estate
Kawaguchi Ryoke Logistics Cener(Registry)
5-2114-1 Ryoke, Kawaguchi City, Saitama(Street)5-1-57 Ryoke, Kawaguchi City, Saitama
S/SRC 5F
22,770.72 m2 (6,888.14 tsubo）
41,867.82 m2 (12,665.01 tsubo)(Land) Ownership (Building) Ownership
October 2003
¥10,790 million

April 10, 2015
(date of agreement on purchase and sale of beneficial interest in real estate trust)
Scheduled date of Acuisdition
July 1, 2015 (date of delivery of beneficial interest in real estate trust)Seller (Note 4)
Ryoke Capital Godo Kaisha
Financing
Fund on hand and borrowings(Note 1) Although the current property name is “NIPPON EXPRESS CO., LTD. North Tokyo Distribution Center”, the Fundplans to change the name to the one stated above at the earliest opportunity, after the acquisition.
(Note 2) “Location (registry)”, “Structure”, “Land Area”, “Building Area”, and “Completion Date”, are based on theinformation in the real estate registry.
(Note 3) Excluding property taxes, urban planning taxes, consumption taxes and local consumption taxes(Note 4) Ryoke Capital Godo Kaisha is the operator of the silent partnership in which Nomura Master Fund has madeinvestment of ¥ 500 million (approximately 17.9% of the silent partnership equity interest), and the Fund exercised,
for the acquisition, the preferential negotiation right granted upon the acquisition of silent partnership equity interest.
Date of agreement－ 8 －Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

Assumptions Underlying Earnings Forecasts for the Fiscal Period Ending August 31, 2015 (5th period) andFebruary 29, 2016 (6th period)
Item
Calculation period

Assets undermanagement

Operating revenue

Operating expenses

Assumption
 5th fiscal period: from March 1, 2015 to August 31, 2015
 6th fiscal period: from September 1, 2015 to February 29, 2016
 5th fiscal period (ending August 31, 2015): The Fund assumes that the investment
portfolio consisting of 56 properties owned by the Fund as at the end of the 4th fiscal
period (ending February 28, 2015 (the “Acquired Properties as of the end of the 4th
fiscal period”), Ryoke Capilal Godo Kaisha Silent Partnership Equity Interest (together
with the Acquired Properties as of the end of the 4th fiscal period, “Acquired Assets asof the 4th fiscal period”), Godo Kaisha Osaka Hirakata Project Silent Partnership Equity
Interest acquired on March 30, 2015 (“Acquired Assets as of the 5th fiscal period”), andKawaguchi Ryoke Logiscitcs Center to be acquired on July 1, 2015 (“Assets to be
Acquired during the 5th fiscal period”) (In line with the acquisition of the asset, Ryoke
Capital Godo Kaisha is planned to be dissolved. The Fund is to receive settlement moneyin accordance with the silent partnership equity interest.) will remain unchanged (with noassets acquired or disposed of) thereafter until the end of the 5th fiscal period (August
31, 2015).
 6th fiscal period (ending February 29, 2016): The Fund assumes that the investment
portfolio consisting of Acquired Properties as of the end of the 4th fiscal period,
Acquired Assets as of the 5th fiscal period, Assets to be Acquired during the 5th fiscal
period, and transfer of Mitsubishi Motors Ibaraki Maintenance Center to be transferredon early September, 2015 (“Assets to be transferred during the 6th fiscal period”) willremain unchanged (with no assets acquired or disposed of) thereafter until the end of the
6th fiscal period (February 29, 2015).
 In practice, the investment portfolio is subject to potential change.
 For the 5th fiscal period, the forecast of operating revenues is based upon the operating
revenues from Acquired Assets as of the end of the 4th fiscal period, Acquired Assets
during the 5th fiscal period, and Assets to be Acquired during the 5th fiscal period. For
the 6th fiscal period, the forecast of operating revenues is based upon the operating
revenues from the assets stated above from deducting operating revenues of Assets to betransferred during the 6th fiscal period The forecast of the level of the rent and vacancy rates are based on the trend of tenants,
competing buildings in the neighborhood, and the recent real estate market trend, etc.
 Assumed that there is no rent in arrears and nonpayment of the rent.
 In general, the fixed asset taxes and city planning taxes imposed on the properties in the
tax year (including the date) of transaction are distributed to the seller and the purchaser
on a daily pro-rata basis and settled at the time of acquisition, and such taxes are deemedas the acquisition costs rather than expenses.
 Taxes and dues, relating to the Acquired Properties at the end of the 4th fiscal period are
calculated as rental expenses, estimated amount of ¥760 million for the 5th fiscal period(ending August 28, 2015), and ¥757 million for the 6th fiscal period (ending February 29,2016).
 Outsourcing expenses are estimated at ¥712 million for the 5th fiscal period (ending
August 31, 2015) and ¥647 million for the 6th fiscal period (ending February 29, 2016).
 As for the repair and maintenance, the Asset Management Company (Nomura Real
Estate Asset Management Co., Ltd.) estimates the required amounts for the respective
properties for each of the fiscal periods based on the medium- and long-term repair
plans. However, it is possible that the actual repair expenses for the fiscal periods may
differ significantly from the estimates since (i) an unforeseeable event might cause serious
damage to a building requiring emergent repair expenditure, (ii) amounts might vary year
by year, and (iii) certain types of repair expenses are not required every year.
 Rental profits are estimated at ¥5,835 million for the 5th fiscal period (ending August 31,
2015) and ¥5,728 million for the 6th fiscal period (ending February 29, 2016).
 Depreciation costs are estimated at ¥1,739 million for the 5th fiscal period (ending
August 31, 2015) and ¥1,802 million for the 6th fiscal period (ending February 29, 2015).
 The operating expenses other than the rental expenses (including asset management fees,
asset custody fees and general administration fees) are estimated at ¥1,073 million for the
5th fiscal period (ending August 31, 2015) and ¥1,064 million for the 6th fiscal period(ending February 29, 2016).
－ 9 －Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

Item
Non-operating expenses

Interest-bearing liabilities

Investment units

Distribution per unit
Distribution per unit
in excess of earnings per
unit

Other

Assumption
 Interest payable and other borrowing related expenses are estimated at ¥655 million for
the 5th fiscal period (ending August 31, 2015) and ¥675 million for the 6th fiscal period(ending February 29, 2016).
 The amount of the Fund’s interest-bearing debts outstanding as of today is ¥96,150
million of loan and ¥3,000 million of investment corporation bonds.
 The Fund assumes to borrow additionaly ¥1,120 million in order to acquire the“Kawaguchi Ryoke Logistics Cener” on July 1, 2015.
 Concerning the borrowings of ¥4,085 million, which will be due by the last business dayof the 6th fiscal period (ending February 29, 2016), the Fund assumes that the entire
amount will be refinanced excluding the scheduled repayment of ¥85 million using cashon hand.
 The Fund assumes that there will be no changes in the interest-bearing debts outstanding
other than the changes in amount stated above.
 The Fund assumes that there will be no changes in the number of investment units
issued and outstanding as of the date of this report of 1,665,260 units and there will be
no additional issues of new investments units by the end of the 6th fiscal period (ending
February 29, 2016).
 Distribution per unit is calculated according to the Fund’s distribution policy outlined in
its Articles of Incorporation.
 Distribution per unit may vary due to various factors, including changes in the investment
portfolio, changes in rent income caused by tenant replacements, and unforeseen repairs.
 The Fund does not currently plan for any distributions in excess of earnings per unit.
 The Fund assumes that there will be no amendments in legislation, taxation, Japanese
GAAP, listing requirements and Investment Trusts Association regulations, which willaffect the above forecasts.
 The Fund assumes that there will be no material changes in general economic conditions
and real estate markets.

－ 10 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

3. Financial Statements(1) Balance Sheet
As of August 31, 2014
AssetsCurrent assets
Cash and bank deposits
Cash and bank deposits in trust
Rental receivables
Prepaid expenses
Deferred tax assets
Income taxes receivable
Consumption taxes receivable
Other
Total current assets
Noncurrent assets
Property and equipment
Buildings
Less accumulated depreciation
Buildings, net
Structures
Less accumulated depreciation
Structures, net
Land
Buildings in trust
Less accumulated depreciation
Buildings in trust, net
Structures in trust
Less accumulated depreciation
Structures in trust, net
Tools, furniture and fixtures in trust
Less accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress
Total property and equipment
Intangible assets
Leasehold rights in trust
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term prepaid expenses
Long-term deposits
Security deposits
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets－ 11 －

Thousands of Yen
As of February 28, 2015

11,339,370
5,288,296
219,442
237,28329
654－
73,663
17,158,740

12,486,260
6,333,926
206,479
269,318
5
3,609
571,565
104,101
19,975,268

3,493,865(103,535)
3,390,329
28,932(3,144)25,787
10,923,206
94,083,812(3,433,914)
90,649,898
866,233(189,473)
676,760
14,789(1,547)
13,242
128,699,981
3,305
234,382,512

3,502,973(163,530)
3,339,443
28,932(4,723)24,208
10,923,206
103,956,034(4,998,376)
98,957,658
866,502(266,616)
599,886
20,397(3,205)
17,191
137,141,279
4,317
251,007,192

3,828,713
12,693
3,841,406

3,828,326
15,5593,843,886

487,473
614,601
39,205516,126
1,657,406
239,881,325

463,151588,612
89,205546,095
1,687,064
256,538,143－－
257,040,065

26,527
26,527
276,539,938

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

As of August 31, 2014
Liabilities
Current liabilities
Trade accounts payable
Short-term debt
Current portion of long-term debt
Other accounts payable
Accrued expenses
Accrued income taxes
Accrued consumption taxes
Rent received in advance
Other current liabilities
Total current liabilities
Long-term liabilities
Investment corporation bonds
Long-term debt
Security deposits from tenants
Security deposits from tenants in trust
Total long-term liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
SurplusRetained earnings
Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets

Thousands of Yen
As of February 28, 2015

408,449*1*2－ 12 －－
85,600267,880
24,489716
275,528
1,482,281
1,463
2,546,408*1

493,9224,000,000
85,600235,326
26,211549－
1,509,800
955
6,352,365－
80,307,400
539,430
8,445,574
89,292,405
91,838,814

3,000,000
92,064,600
539,430
9,316,397
104,920,428
111,272,793

161,120,405

161,120,405

4,080,846
4,080,846
165,201,251
165,201,251
257,040,065

4,146,739
4,146,739
165,267,144
165,267,144
276,539,938*2

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015(2) Statement of Income and Retained Earnings
Thousands of Yen
Current period
from Sep. 1, 2014
to Feb. 28, 2015

Previous period
from Mar. 1, 2014
to Aug. 31, 2014

Operating revenues
Rental revenues
Other rental revenues
Gain on investments in silent partnership
Total operating revenues
Operating expenses
Real estate rental expenses
Asset management fees
Asset custody fee
Administrative service fees
Directors' compensations
Other operating expenses
Total operating expenses
Operating profit
Non-operating revenues
Interest income
Other non-operating revenues
Total non-operating revenues
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bondissuance costs
Loan arrangement fees
Other non-operating expenses
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Retained earnings brought forward
Retained earnings at end of period－ 13 －*1*1

8,663,942
800,373
4,150
9,468,466*1*1

9,068,947
980,402
16,744
10,066,094*1

3,872,940
791,954
14,756
63,232
4,800
82,5794,830,263
4,638,203*1

4,358,151
787,713
14,50863,6806,000
85,4885,315,542
4,750,552

1,708
13
1,722

1,790
35
1,825

443,425

474,074
8,700－－
114,227
1,041
558,695
4,081,230
4,081,230
1,256
(16)
1,239
4,079,991
855
4,080,846

1,143
121,433
499
605,851
4,146,526
4,146,526
722
24
746
4,145,779
959
4,146,739

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015(3) Statement of Changes in Net Assets
Previous period (from March 1, 2014 to August 31, 2014)

Unitholders'
capitalBalance at the beginning ofcurrent period
Changes of items during theperiod(Unit: thousand yen)

Unitholders' equity
SurplusRetained
Total surplus
earnings

Total
unitholders'equityTotal net assets

161,120,405

4,861,749

4,861,749

165,982,154

165,982,154

Cash distribution paid－

(4,860,893)(4,860,893)(4,860,893)(4,860,893)

Net income－

4,079,991

4,079,991

4,079,991

4,079,991－(780,902)(780,902)(780,902)(780,902)*1 161,120,405

4,080,846

4,080,846

165,201,251

165,201,251

Total changes of items
during the period
Balance at the end of current
periodCurrent period (from September 1, 2014 to February 28, 2015)

Unitholders'
capitalBalance at the beginning ofcurrent period
Changes of items during theperiod(Unit: thousand yen)

Unitholders' equity
SurplusRetained
Total surplus
earnings

Total
unitholders'equityTotal net assets

161,120,405

4,080,846

4,080,846

165,201,251

165,201,251

Cash distribution paid－

(4,079,887)(4,079,887)(4,079,887)(4,079,887)

Net income－

4,145,779

4,145,779

4,145,779

4,145,779－

65,89265,89265,89265,892*1 161,120,405

4,146,739

4,146,739

165,267,144

165,267,144

Total changes of items
during the period
Balance at the end of current
period－ 14 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015(4) Statement of Cash Distributions

I. Retained earnings at end of period
II. Amount of distributions[Amount of distributions per investment unit]
III. Retained earnings brought forward
Calculating method for distribution amountPrevious period
from Mar. 1, 2014
to Aug. 31, 2014

Current period
from Sep. 1, 2014
to Feb. 28, 2015

4,080,846,607 yen
4,079,887,000 yen[2,450 yen]
959,607 yen

4,146,739,268 yen
4,146,497,400 yen[2,490 yen]
241,868 yen

Pursuant to the policy that“distributions shall be in excess of anamount equivalent to 90% of NMF’s
amount of earnings available for
distribution as prescribed in Article
67-15, Paragraph 1 of the Act on
SpecialMeasures
Concerning
Taxation” as provided in Article 36,
Paragraph 1, Item 2 of NMF’s Articles
of Incorporation, NMF decided to
distribute almost the entire amount ofretained earnings. Accordingly, NMF
declared distributions of earnings of
4,079,887,000 yen. NMF will not
distribute cash in excess of earnings asprovided in Article 36, Paragraph 2 of
the Articles of Incorporation.

Pursuant to the policy that“distributions shall be in excess of anamount equivalent to 90% of NMF’s
amount of earnings available for
distribution as prescribed in Article
67-15, Paragraph 1 of the Act on
SpecialMeasures
Concerning
Taxation” as provided in Article 36,
Paragraph 1, Item 2 of NMF’s Articles
of Incorporation, NMF decided to
distribute almost the entire amount ofretained earnings. Accordingly, NMF
declared distributions of earnings of
4,146,497,400 yen. NMF will not
distribute cash in excess of earnings asprovided in Article 36, Paragraph 2 of
the Articles of Incorporation.

－ 15 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015(5) Statement of Cash Flows

Previous period
from Mar. 1, 2014
to Aug. 31, 2014
Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of investment corporation bond issuance costs
Interest income
Interest expenses
Decrease (increase) in rental receivables
Decrease (increase) in prepaid expenses
Decrease (increase) in consumption taxes receivable
Decrease (increase) in long-term prepaid expenses
Decrease (increase) in long-term deposits
Increase (decrease) in trade accounts payable
Increase (decrease) in other accounts payable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in rent received in advance
Other
SubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments for purchase of property and equipment
Payments for purchase of property and equipment in trust
Payments for purchase of intangible assets
Payments for purchase of intangible assets in trust
Purchases of investment securities
Proceeds from withdrawal of investment securities
Reimbursement of security deposits to tenants
Proceeds from security deposits from tenants
Reimbursement of security deposits to tenants in trust
Proceeds from security deposits from tenants in trust
Payments for security deposits
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term debt
Repayment of short-term debt
Proceeds from long-term debt
Repayment of long-term debt－
(16,500,000)
12,500,000(42,800)

Proceeds from issuance of investment corporation bonds
Payments of investment corporation bonds issuance costs
Distributions to unitholders
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period－－(4,835,718)(8,878,518)(4,361,152)
20,988,819
16,627,667－ 16 －

Thousands of Yen
Current period
from Sep. 1, 2014
to Feb. 28, 2015

4,081,230
1,537,049

4,146,526
1,706,847
1,143(1,790)482,774
12,963(32,035)(571,565)
25,989(50,000)
85,472(4,822)(275,528)
27,519(45,631)5,507,862
1,790(481,052)(3,844)
5,024,754－(1,708)443,425(111,532)(39,190)－(719)－
78,312
7,575
96,40922,383(25,457)
6,087,777
1,708(428,989)(1,682)
5,658,814(23,225)(651,166)(2,677)(423)(511,356)
23,883(175)
14,445(78,994)
88,243(6,375)(18,351,735)－(4,489)－24,321－－(75,226)
960,736(29,968)(17,482,737)－(1,141,448)*1*1

7,000,000(3,000,000)
11,800,000(42,800)
3,000,000(27,670)(4,079,025)
14,650,504
2,192,520
16,627,667
18,820,187

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015(6) Notes Concerning the Going Concern Assumption
Not applicable.

(7) Notes Concerning Significant Accounting Policies
1. Investment securities

2. Depreciation of
noncurrent assets

Non-marketable securities classified as other securities are carried at cost. Cost of securities
sold is determined by the moving average method. For equity interests in a silent partnership,
NMF adopts the method of factoring in the net amount of silent partnership income (loss) inproportion to its equity interests.
① Property and equipment (including trust assets)
The straight-line method is adopted.
The useful lives of major property and equipment are as follows:
Buildings
3~70 years
Structures
2~20 years
Tools, furniture and fixtures
2~10 years② Intangible assets
The straight-line method is adopted.
③ Long-term prepaid expenses
The straight-line method is adopted.

3. Deferred investment
corporation bond issuancecosts
4. Revenue and expenses
recognition

Deferred investment corporation bond issuance costs are amortized by the straight-line
method over the respective terms of the bonds.

5. Hedge accounting① Method of hedge accounting
Deffered hedge accounting is adopted. For interest-rate swap transactions meet therequirements for special treatment, special treatment is adopted.

Accounting for fixed asset tax, etc.
Of the tax amount assessed and determined for fixed asset tax, city planning tax,
depreciable asset tax, etc. on real estate, etc. held, the method of charging the amountcorresponding to the concerned fiscal period to expenses as expenses related to rent
business is adopted.
The amount equivalent to fixed asset tax, etc. for the fiscal year including the acquisition
date paid to the seller as reimbursement upon acquisition of real estate or trust beneficiaryinterests in real estate is included in the cost of acquisition of the concerned real estateand not recorded as expenses. The amount equivalent to fixed asset tax, etc. included in
the cost of acquisition of real estate, etc. in the fiscal period is 12,000 thousand yen. No
capitalized property related taxes were incurred in the previous period under review.

② Hedging instruments and hedged items
Hedging instruments
Interest-rate swap transactions
Hedged items
Interest on loans③ Hedging policy
NMF conducts derivative transactions for the purpose of hedging risks prescribed in
the Articles of Incorporation in accordance with the Basic Policy on Risk Management.
④ Method for assessing effectiveness of hedging
The effectiveness of hedging is assessed by the correlation between changes in the fairvalue of hedging instruments and hedged items.
6. Cash and cash equivalents
as stated in the Statementof Cash Flows

Cash and cash equivalents in the statement of cash flows consist of cash on hand and cashin trust; deposits and deposits in trust that can be withdrawn at any time; and short-term
investments with a maturity of 3 months or less from the date of acquisition, which arereadily convertible to cash and bear only an insignificant risk of price fluctuation.

－ 17 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

7. Other significant mattersforming basis for
preparation offinancial statements① Accounting for trust beneficiary interests in real estate, etc.
Concerning trust beneficiary interests in real estate, etc. held, all accounts of assets andliabilities within trust assets as well as all accounts of revenue and expenses incurred fromthe trust assets are recorded in the relevant account item of the balance sheet andstatement of income and retained earnings.
The following material items of the trust assets recorded in the relevant account item
are separately listed on the balance sheet.
(1) Cash and bank deposits in trust(2) Buildings in trust; structures in trust; tools, furniture and fixtures in trust; and land intrust(3) Leasehold rights in trust(4) Security deposits from tenants in trust② Accounting for consumption taxes
Concerning accounting for consumption tax and local consumption tax, these taxes are
not included.

(8) Notes to Financial Statements(Notes to Balance Sheet)*1. Commitment line agreement
NMF is concluding a commitment line agreement with 3 lending financial institutions.
Previous period
Current period(Aug. 31, 2014)(Feb. 28, 2015)
Committed line of credit
10,000,000 thousand yen
10,000,000 thousand yen
Balance of used line
－ thousand yen－ thousand yen
Balance of unused line
10,000,000 thousand yen
10,000,000 thousand yen*2. Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment
Corporations
Previous period
Current period(Aug. 31, 2014)(Feb. 28, 20145)
50,000 thousand yen
50,000 thousand yen－ 18 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

(Notes to Statement of Income and Retained Earnings)*1. Breakdown of real estate rental revenues and expenses(Unit: thousand yen)
Current period
from Sep. 1, 2014
to Feb. 28, 2015

Previous period
from Mar. 1, 2014
to Aug. 31, 2014
A. Property related revenues
Rental revenues
Rent revenues
Common area charges
Other rental revenues
Parking revenues
Incidental income
Other miscellaneous revenues
Property related revenues
B. Property related expenses
Real estate rental expenses
Property management costs
Property management fees
Property and other taxes
Utility expenses
Casualty insurance
Repairs and maintenanceLand rents
Depreciation
Other rental expenses
Property related expenses

8,428,399
235,542
73,750631,826
94,797

8,663,942

8,763,843
305,104

9,068,947

800,373

91,016
801,535
87,850980,4029,464,316

355,167
213,769
731,211596,790
18,434
216,187
71,963
1,535,760
133,655

C. Real estate rental profits [A－B]

3,872,940
3,872,940
5,591,375

10,049,349

391,935
270,561
726,772
672,710
18,404
258,742
96,4791,705,559
216,985

4,358,151
4,358,151
5,691,198(Notes to Statement of Changes in Net Assets)
Previous period
from Mar. 1, 2014
to Aug. 31, 2014

Current period
from Sep. 1, 2014
to Feb. 28, 2015

Total number of investment units authorized

20,000,000 units

20,000,000 units

Total number of investment units issued and outstanding

1,665,260 units

1,665,260 units*1.Total number of investment units authorized andtotal number of investment units issued and outstanding(Notes to Statement of Cash Flows)*1. Reconciliation of cash and cash equivalents at end of period to balance sheet accounts
Previous period
from Mar. 1, 2014
to Aug. 31, 2014
11,339,370(Unit: thousand yen)
Current period
from Sep. 1, 2014
to Feb. 28, 2015
12,486,260

Cash and bank deposits in trust

5,288,296

6,333,926

Cash and cash equivalents

16,627,667

18,820,187

Cash and bank deposits－ 19 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

(Notes on Lease Transactions)Operating lease transactions (as lessor)
Future lease payments receivable(Unit: thousand yen)Previous period(Aug. 31, 2014)

Current period(Feb. 28, 2015)

Due within 1 year

12,763,044

14,445,033

Due after 1 year

41,764,248

44,639,620

Total

54,527,292

59,084,653(Notes on Financial Instruments)
1. Matters concerning status of financial instruments(1) Policy for handling financial instruments
NMF procures funds through debt financing, issuance of investment corporation bonds, issuance of investment
units, etc. upon acquisition of real estate related assets. In procuring funds through interest-bearing liabilities, NMF
adopts the basic financial policy of procuring funds with due consideration for extending the loan period, converting
the interest rate to a fixed rate and laddering the repayment dates, etc. for interest-bearing liabilities.
NMF enters into derivative transactions for the purpose of hedging risks of future interest rates rising and adopts
the policy of not engaging in speculative transactions.
(2) Description of financial instruments and associated risks, and risk management structure
Funds from debts and investment corporation bonds are primarily used to fund the acquisition of real estate related
assets and to fund the repayment of debts and redemption of investment corporation bonds. These are exposed toliquidity risks of failure to procure alternative funds at the time of repayment or redemption. NMF controls and limits
the concerned risks by diversifying the lending financial institutions, as well as considering and implementing effective
use of surplus funds, procurement of funds from the capital market through issuance of investment units, etc. andother various procurement of funds. In addition, floating interest rates debts are exposed to risks of the interest rate
payable rising. NMF limits the impact that the interest rate payable rising has on NMF’s operations by keeping LTV(ratio of interest-bearing liabilities to total assets) at a low level and keeping the ratio of borrowings that are long-term
and fixed-rate borrowings at a high level. Furthermore, derivative transactions (interest-rate swap transactions, etc.) areavailable as a hedging instrument for hedging risks of floating interest rates rising and converting the interest expenses
to a fixed payment.
Deposits are those for investing NMF’s surplus funds and are exposed to risks of failure of the financial institutions
that are holding the deposits and other credit risks, but NMF limits the risks by diversifying the financial institutions
that are holding the deposits.
(3) Supplementary explanation on matters concerning fair value, etc. of financial instruments
The fair value of financial instruments, aside from values based on market price, includes values based on reasonablecalculation when there is no market price. Certain assumptions are adopted in the calculation of the concernedvalues. Accordingly, there may be cases where the concerned values will vary when different assumptions are adopted.
In addition, concerning the contract amount, etc. of derivative transactions presented in “Notes on Derivative
Transactions” later in this report, the amount itself does not represent the market risk involved in these derivativetransactions.

－ 20 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

2. Matters concerning fair value, etc. of financial instruments
The following are the carrying amount and fair value as of August 31, 2014, and the difference between these amounts.
(Unit: thousand yen)

(1) Cash and bank deposits(2) Cash and bank deposits in trust(3) Short-term debt
(4) Current portion of long-term debt
(5) Investment corporation bonds(6) Long-term debt
(7) Derivative transactions

Carrying amount(Note 1)
11,339,370
5,288,296－[85,600]－[80,307,400]－

Fair value(Note 1)
11,339,370
5,288,296－[86,597]－[82,146,817]－

Amount of difference
－
－
－
997
－
1,839,417－

The following are the carrying amount and fair value as of February 28, 2015, and the difference between theseamounts.
(Unit: thousand yen)

(1) Cash and bank deposits(2) Cash and bank deposits in trust(3) Short-term debt
(4) Current portion of long-term debt
(5) Investment corporation bonds(6) Long-term debt
(7) Derivative transactions

Carrying amount(Note 1)
12,486,260
6,333,926[4,000,000][85,600][3,000,000][92,064,600]－

Fair value(Note 1)
12,486,260
6,333,926[4,000,000][86,641][3,033,783][94,134,935]－

Amount of difference
－
－
－
1,041
33,7832,070,335－(Note 1) Items that are charged to liabilities are shown in brackets [ ].
(Note 2) Matters concerning method for calculating fair value of financial instruments and derivative transactions(1) Cash and bank deposits; (2) Cash and bank deposits in trust, (3) Short-term debt
As these are settled within a short period of time, the fair value is approximately the same as the book value and is thus stated at that bookvalue.
(4) Current portion of long-term debt; (6) Long-term debt
As long-term debt with floating interest rates reflect market interest rates within a short period of time, the fair value is thought to beapproximately the same as the book value and is thus stated at that book value (However, the fair value of long-term debt with floatinginterest rates that are subject to special treatment for interest-rate swaps (please refer to “Notes on Derivative Transactions” later in thisreport) is based on the method of calculating by discounting the sum total amount of principal and interest accounted for as one transaction
together with the concerned interest-rate swap by the interest rate that is reasonably estimated as being applicable in the event of drawdown
of a similar debt financing.). In addition, the fair value of long-term debt with fixed interest rates is calculated based on the method of
calculating by discounting the sum total amount of principal and interest by the interest rate that is reasonably estimated as being applicable in
the event of drawdown of a similar debt financing.
(5) Investment corporation bonds
The fair value of investment corporation bonds issued by the Company is determined based on their market prices.
(7) Derivative transactions
Please refer to “Notes on Derivative Transactions” later in this report.
(Note 3) Financial instruments for which fair value is deemed extremely difficult to determine(Unit: thousand yen)

Carrying amountType of asset
Investment securities

Previous period(Aug. 31, 2014)
487,473

Current period(Feb. 28, 2015)
463,151*Investment securities (ownership interests in a silent partnership) do not have a readily available market price and reasonable estimates of cash
flows from the underlying properties cannot be made, so the fair value is deemed extremely difficult to determine. Accordingly, they are excluded
from fair value disclosures.
(Note 4) Amount of redemption of monetary claims scheduled to be due after the date of settlement of accounts (August 31, 2014)(Unit: thousand yen)

Due within
1 yearCash and bank deposits
Cash and bank deposits in trust
Total

11,339,370
5,288,296
16,627,667

Due after
1 year,within2 years－－－

Due after
2 years,
within3 years－－－

Due after
3 years,
within4 years－－－

Due after
4 years,
within5 years－－－

Due after
5 years－－－

Amount of redemption of monetary claims scheduled to be due after the date of settlement of accounts (February 28, 2015)(Unit: thousand yen)

Due within
1 yearCash and bank deposits
Cash and bank deposits in trust
Total

12,486,260
6,333,926
18,820,187

Due after
1 year,within2 years－－－－ 21 －

Due after
2 years,
within3 years－－－

Due after
3 years,
within4 years－－－

Due after
4 years,
within5 years－－－

Due after
5 years－－－

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

(Note 5) Amount of repayment of long-term debt and other interest-bearing liabilities scheduled to be due after the date of settlement of accounts(August 31, 2014)(Unit: thousand yen)

Due within
1 yearShort-term debt
Long-term debt－
85,60085,600Total

Due after
1 year,within2 years－
85,60085,600Due after
2 years,
within3 years－
14,085,600
14,085,600

Due after
3 years,
within4 years－
12,285,600
12,285,600

Due after
4 years,
within5 years－
14,085,600
14,085,600

Due after
5 years－
39,765,000
39,765,000

Amount of repayment of investment corporation bond, long-term debt and other interest-bearing liabilities scheduled to be due after thedate of settlement of accounts (February 28, 2015)(Unit: thousand yen)

Due within
1 yearShort-term debt
Investment corporation bonds
Long-term debt
Total

4,000,000－
85,6004,085,600

Due after
1 year,within2 years－－
13,085,600
13,085,600

Due after
2 years,
within3 years－－
6,085,600
6,085,600

Due after
3 years,
within4 years－－
18,985,600
18,985,600

Due after
4 years,
within5 years－－
14,085,600
14,085,600

Due after
5 years－
3,000,000
39,822,200
42,822,200(Notes on securities)

Previous period (As of August 31, 2014)
Not applicable.
Current period (As of February 28, 2015)
Not applicable.

(Notes on Derivative Transactions)
1. Transactions not subject to hedge accounting
Previous period (As of August 31, 2014)
Not applicable.
Current period (As of February 28, 2015)
Not applicable.
2. Transactions subject to hedge accounting
Previous period (As of August 31, 2014)
The following is the contract amount or the amount equivalent to the principal provided in the contract, etc. as ofthe date of settlement of accounts for each method of hedge accounting.
Method ofhedge accounting

Type ofderivative transactionMainhedged item

Contract amountDue after 1 year

Fair value(Unit: thousand yen)
Method for
calculating
fair value

Interest-rate swap transaction
Long-term
Floating receivable
68,646,500
68,603,700*
debt
Fixed payable* Since derivative transactions qualifying for special treatment for interest-rate swaps are accounted for as one transaction together with their hedged
item, long-term debt, the fair value of these is included in the fair value of “(4) Current portion of long-term debt” and “(6) Long-term debt” in“Notes on Financial Instruments; 2. Matters concerning fair value, etc. of financial instruments” earlier in this report.
Special treatment forinterest-rate swaps

Current period (As of February 28, 2015)
The following is the contract amount or the amount equivalent to the principal provided in the contract, etc. as ofthe date of settlement of accounts for each method of hedge accounting.
Method ofhedge accounting

Type ofderivative transactionMainhedged item

Contract amountDue after 1 year

Fair value(Unit: thousand yen)
Method for
calculating
fair value

Interest-rate swap transaction
Long-term
Floating receivable
72,425,100
72,382,300*
debt
Fixed payable* Since derivative transactions qualifying for special treatment for interest-rate swaps are accounted for as one transaction together with their hedged
item, long-term debt, the fair value of these is included in the fair value of “(4) Current portion of long-term debt” and “(6) Long-term debt” in“Notes on Financial Instruments; 2. Matters concerning fair value, etc. of financial instruments” earlier in this report.
Special treatment forinterest-rate swaps－ 22 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

(Notes on retirement benefit plans)Previous period (As of August 31, 2014)
Not applicable.
Current period (As of February 28, 2015)
Not applicable.

(Notes on Tax Effect Accounting)
1. Breakdown of main causes for occurrence of deferred tax assets and deferred tax liabilities

Deferred tax assets
Non-deductible accrued enterprise tax
Amortization of leasehold right in trust
Subtotal deferred tax assets
Valuation allowance
Total deferred tax assets
Net deferred tax assets(Unit: thousand yen)Previous period(Aug. 31, 2014)

Current period(Feb. 28, 2015)

29
132
161
(132)
29
29

5
263
269
(263)
5
5

2. Breakdown of major components that caused significant differences between statutory tax rate and effective tax rate after
application of tax effect accounting
Previous period
Current period(Aug. 31, 2014)(Feb. 28, 2015)36.59%
34.16%
Statutory tax rate
(Adjustments)(36.57%)(34.16%)

Other

0.01%

0.02%

Effective tax rate after application of tax effect accounting

0.03%

0.02%

Deductible cash distributions(Notes on equity method income and retained earnings, etc.)
Previous period (from March 1, 2014 to August 31, 2014)
Not applicable.
Current period (from September 1, 2014 to February 28, 2015)
Not applicable.

－ 23 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

(Notes on Transactions with Related Parties)
1. Parent company and major corporate unitholders
Previous period (from March 1, 2014 to August 31, 2014)
Not applicable.
Current period (from September 1, 2014 to February 28, 2015)
Not applicable.
2. Subsidiaries and affiliates
Previous period (from March 1, 2014 to August 31, 2014)
Not applicable.
Current period (from September 1, 2014 to February 28, 2015)
Not applicable.
3. Fellow subsidiaries
Previous period (from March 1, 2014 to August 31, 2014)
Not applicable.
Current period (from September 1, 2014 to February 28, 2015)
Not applicable.
4. Directors and major individual unitholders
Previous period (from March 1, 2014 to August 31, 2014)
Not applicable.
Current period (from September 1, 2014 to February 28, 2015)
Not applicable.

(Notes on asset retirement obligations)

Previous period (from March 1, 2014 to August 31, 2014)
Not applicable.
Current period (from September 1, 2014 to February 28, 2015)
Not applicable.

－ 24 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

(Notes on Investment and Rental Properties)
NMF owns leasable logistics facilities and leasable retail facilities (including land) in Greater Tokyo area and other areas
for the purpose of earning revenue from leasing.
The following are the carrying amount, amount of increase (decrease) during the fiscal period and fair value of theseinvestment and rental properties at the end of the fiscal period.

Previous period
from Mar. 1, 2014
to Aug. 31, 2014
Carrying amount
Balance at beginning of period
Amount of increase (decrease) during period
Balance at end of period
Fair value at end of period(Note 1)
(Note 2)

(Note 3)

239,044,901(836,981)
238,207,919
252,818,000(Unit: thousand yen)
Current period
from Sep. 1, 2014
to Feb. 28, 2015
238,207,919
16,627,599
254,835,518
280,180,000

Carrying amount is the amount of cost of acquisition, less accumulated depreciation.
Of the amount of increase (decrease) in investment and rental properties, the amount of decrease during previous period isdepreciation (1,535,675 thousand yen). The amount of increase during current period is mainly attributable to acquisitionof Universal CityWalk Osaka (15,961,434 thousand yen) and Kawasaki More’s (2,110,212 thousand yen) and decreaseduring current period is depreciation (1,705,224 thousand yen).
Fair value at the end of the period is the appraisal value or investigation value found by an outside real estate appraiser.
However, the scheduled transferred price for the Mitsubishi Motors Ibaraki Maintenance Center is used for the fair value atthe end of the current period.

The income (loss) in the previous period and the current period for investment and rental properties is as presented in“Notes to Statement of Income and Retained Earnings” earlier in this report.

－ 25 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

(Notes on Segment Information)(Segment Information)
Since the Fund has been engaged in the real estate leasing business as a single segment, segment information has been
omitted.
(Related Information)
Previous period (from March 1, 2014 to August 31, 2014)
1. Information by product and service
Disclosure is omitted, since revenues from external customers of a single product/service category is more than
90% of the operating revenues on statement of income and retained earnings.
2. Information by geographical area
(1) Revenues
Disclosure is omitted, since revenues from external customers in Japan is more than 90% of the operating revenues
on statement of income and retained earnings.
(2) Property and equipment
Disclosure is omitted, since the amount of property and equipment located in Japan is more than 90% of theamount of property and equipment on balance sheet.
3. Information by major customer
Since no single external client represents 10% or more of the Fund’s total operating revenues, information aboutmajor customer has been omitted.
Current period (from September 1, 2014 to February 28, 2015)
1. Information by product and service
Disclosure is omitted, since revenues from external customers of a single product/service category is more than
90% of the operating revenues on statement of income and retained earnings.
2. Information by geographical area
(1) Revenues
Disclosure is omitted, since revenues from external customers in Japan is more than 90% of the operating revenues
on statement of income and retained earnings.
(2) Property and equipment
Disclosure is omitted, since the amount of property and equipment located in Japan is more than 90% of theamount of property and equipment on balance sheet.
3. Information by major customer
Since no single external client represents 10% or more of the Fund’s total operating revenues, information aboutmajor customer has been omitted.

－ 26 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

(Notes on Per Unit Information)
Previous period
from Mar. 1, 2014
to Aug. 31, 2014

Current period
from Sep. 1, 2014
to Feb. 28, 2015

Net assets per unit

99,204 yen

99,244 yen

Net income per unit

2,450 yen

2,489 yen

(Note 1)
(Note 2)

Net income per unit is calculated by dividing net income by the average number of investment units during the period.
In addition, the diluted net income per unit is not stated, since there are no diluted investment units.
The following is the basis for calculation of net income per unit.

Previous period
from Mar. 1, 2014
to Aug. 31, 2014

Current period
from Sep. 1, 2014
to Feb. 28, 2015

4,079,991

4,145,779－－

Net income attributable to ordinary investment units (thousand yen)

4,079,991

4,145,779

Average number of investment units during period (units)

1,665,260

1,665,260

Net income (thousand yen)Amount not attributable to ordinary unitholders (thousand yen)

(Notes on Significant Subsequent Events)
Transfer of the asset
Nomura Real Estate Asset Management Co., Ltd., the asset management company for the Fund, has determined thetransfer of “Mitusbishi Motors Ibaraki Maintenance Center” on April 7, 2015, after the end of 4th fiscal period(February 28, 2015).
Mitsubishi Motors Ibaraki Maintenance Center
Type of Asset

Trust beneficiary interest in mainly real estate

Scheduled Date of Agreement

April 30, 2015

Scheduled Transfer Date

Early September, 2015

Scheduled Transfer Price¥1,133,000 thousand

Transferee

Japanese General Operating Company
The Fund is scheduled to record around ¥240 million of transfer profit (including
miscellaneous expences) as Operating Revenues on 6th fiscal period (from September 1,
2015 to February 29, 2016).

Impact on Earnings(9) Increase (Decrease) in Total Number of Investment Units Issued and Outstanding
There were no changes in the total number of investment units issued and outstanding during the current
fiscal period (from September 1, 2014 to February 28, 2015). The following is the increase (decrease) inunitholders’ capital and total number of investment units issued and outstanding during the period from thedate of incorporation of NMF through the end of the current fiscal period (February 28, 2015).

Date

Description

Unitholders’ capital(million yen)
Increase(Decrease)

January 31, 2013
June 11, 2013
(Note 1)
(Note 2)

Incorporation throughprivate placement
Capital increase throughpublic offering

Balance

Total number ofinvestment units
issued and outstanding(units)Increase
Balance(Decrease)

Note

200

200

2,000

2,000

(Note 1)

160,920

161,120

1,663,260

1,665,260(Note 2)

Investment units were issued at an issue price (paid-in amount) of 100,000 yen per unit upon incorporation of NMF.
New investment units were additionally issued through a public offering at an offer price of 100,000 yen (paid-in amount: 96,750 yen)
per unit for the purpose of procuring funds for acquisition of new properties, and thereby management of assets was commenced.

－ 27 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

4. Changes in Directors(1) Changes in NMF Directors
At the 2nd General Unitholders’ Meeting held on November 27, 2014, Satoshi Yanagita has been appointed
as an Executive Director as of December 1, 2014, and Sadahiko Yoshimura and Shuhei Yoshida has been
appointed as a Supervisory Direcotr as of December 1, 2014.
The following is the status of directors as of the date of this report.
Position

Name

Brief personal history

Executive

Satoshi Yanagita Apr. 1981

Director

Apr. 2001

General Manager of the Planning Section of the Residential Company

Apr. 2004

General Manager of the General Affairs Department

Apr. 2009

General Manager of the General Affairs Department and General

Number ofinvestment
units held

Nomura Real Estate Development Co., Ltd.

Manager of the General Affairs Trial Department
Apr. 2011

Executive Officer of Nomura Living Support Co., Ltd.

Apr. 2012

Director and Executive Officer

Apr. 2014

Audit & Supervisory Board Member of Nomura Real Estate Partners－

Co., Ltd.
Dec. 2014

Currently serves as Executive Director of Nomura Real Estate Master
Fund, Inc.

Apr. 2015

Currently serves as Managing Director of Nomura Real Estate
Reform Co., Ltd.

Supervisory

Sadahiko

Director

Yoshimura

May 1996

Council Member of Showa Ota & Co. (currently known as Ernst &Young ShinNihon LLC)

May 2002

Executive Council Member of Shin Nihon & Co. (currently known as
Ernst & Young ShinNihon LLC)

May 2004

Vice-president

Aug. 2008

Senior Advisor

July 2009

Currently serves as Audit & Supervisory Board Member of Ishihara
Holdings Co., Ltd.

Apr. 2010

Special Professor of the Department of Professional Accountancy at
the Graduate School of Aoyama Gakuin University

Jun. 2010

Audit & Supervisory Board Member of JAFCO Co., Ltd.

Jan. 2012

Currently serves as Audit & Supervisory Board Member of PGM
Holdings K.K.

Jun. 2012

Currently serves as Full-time Audit & Supervisory Board Member of
JAFCO Co., Ltd.

Jan. 2013

Currently serves as Supervisory Director of Nomura Real Estate
Master Fund, Inc.

Apr. 2014

Currently serves as Member of the JBA TIBOR Oversight Committeeof Ippan Shadan Hojin JBA TIBOR Administration

Apr. 2015

Currently serves as Visiting Professor of the Department ofProfessional Accountancy at the Graduate School of Aoyama Gakuin
University－ 28 －－

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

Position

Name

Supervisory

Shuhei

Apr. 1982

Registered as Japanese lawyer (with Daiichi Tokyo Bar Association)

YoshidaApr. 1982

Law Office Toshio Shitara

Apr. 1986

Currently serves as Partner of Law Office Shuhei Yoshida

Apr. 1994

Currently serves as Conciliation Commissioner of Tokyo Family

Director

Brief personal history

Number ofinvestment
units held

Court
Jun. 1994

Audit & Supervisory Board Member of Satellite Consulting Partners
Co., Ltd.

Aug. 1995

Audit & Supervisory Board Member of Asset Partners Co., Ltd.

Apr. 1998

Lecturer at the Faculty of Law of Kanagawa University

Mar. 2000

Director of Yahirokai Social Welfare Organization

Apr. 2005

Part-time lecturer (special lecture on insolvency proceedings laws) at
the School of Law of Kanagawa University

Aug. 2005

Supervisory Director of Nomura Real Estate Office Fund, Inc.

Nov. 2006

Supervisory Director of Nomura Real Estate Residential Fund, Inc.

Dec. 2007

Currently serves as Visiting Professor at the National Graduate
Institute for Policy Studies

Feb. 2008

Currently serves as Audit & Supervisory Board Member of BusinessAccounting Club K.K.

Nov. 2008

Auditor of the non-profit organization the Accounting Advisor－

Support Center
Sep. 2009

Currently serves as Audit & Supervisory Board Member of M.H.
Group Ltd.

May 2010

Currently serves as Vice-president of the non-profit organization theTokyo Metropolitan Area Fixed-term Rented Land and House
Leasehold Promotion Organization

Jan. 2013

Currently serves as Supervisory Director of Nomura Real Estate
Master Fund, Inc.

Apr. 2013

Currently serves as Councilor of Foundation for Senior Citizens’
Housing

Sep. 2013

Currently serves as Vice Chairman of The Japanese Inheritance
Association

May 2014

Currently serves as Director of Japan Association for Real Estate
Sciences

Jul. 2014

Currently serves as Director of Japan Law and Economics Association

Dec. 2014

Currently serves as Auditor of Yahirokai Social Welfare Organization

Dec. 2014

Currently serves as Audit & Supervisory Board Member of Ascot
Corp.

(Note) Motomi Uki has been appointed as a substitute executive director so as to fill any potential vacancy or
shortage in the number of executive directors prescribed by laws and regulations, and Kazunori Watanabe
has been appointed as a substitute suprevisory director so as to fill any potential vacancy or shortage in thenumber of executive directors prescribed by laws and regulations.

－ 29 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

(2) Changes in Asset Management Company Directors and Audit & Supervisory
Timely disclosure of changes in directors and Audit & Supervisory will be made at the time that details are
determined.
The following is the status of directors and Audit & Supervisory of the Asset Management Company as ofthe date of this report.
Position
Representative Director,
President and Chief
Executive Officer

Name
Norio
Ambe

Brief personal history
Apr. 1980
Jul. 2001
Dec. 2005
Apr. 2006

Apr. 2008
Apr. 2008
Apr. 2008
Apr. 2009
Apr. 2013
Apr. 2014

Oct. 2014

Apr. 2014
Apr. 2014

Nomura Securities Co., Ltd.
Managing Director of the Institutional Sales Department
Managing Director of the Financial Institution Marketing
Department of Nomura Asset Management Co., Ltd.
Senior Managing Director of the Financial Institution Marketing
Department, and in charge of the Product Services Department
and the Financial Institution Marketing Department
Senior Managing Director of Nomura Asset Management Co.,
Ltd.
Chairman of Nomura Asset Management Singapore Limited
Chairman of Nomura Asset Management Hong Kong Limited
Senior Corporate Managing Director of Nomura AssetManagement Co., Ltd.
Executive Vice President, Manager of the Instituitional Clients
Division and the Overseas Clients Division
Representative Director, Vice President and Executive Officer of
Nomura Real Estate Asset Management Co., Ltd., Supervisor of
the Client Relations & Marketing Department, the Investment
Management Department, the New Products & Marketing
Department, and the Finance Department
Representative Director, Vice President and Executive Officer,
Supervisor of the Finance Department, the Client Relations &Marketing Department, the Investment Management Department,
and the Product Management Department
Currently serves as Executive Officer, in charge of asset
management, of Nomura Real Estate Holdings, Inc.
Currently serves as Representative Director, President and Chief
Executive Officer of Nomura Real Estate Asset Management Co.,Ltd.

－ 30 －

Number ofshares held–

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

Position
Representative Director,
Executive Vice President
Supervisor of the
Corporate Planning
Department, theCompliance Department,
the Internal Audit
Department, and the
Accounting Department
In charge of theInvestment Performance
Analysis Section andDiscretionary Investment
Management Section

Name
KenichiShinbashi

Brief personal history
Apr. 1978
Jun. 1997
Jun. 1999
Apr. 2002
Apr. 2003
Jun. 2003
Apr. 2004
Jul. 2006
Jul. 2010
Apr. 2012
Jun. 2012
Oct. 2012

Apr. 2013

Apr. 2014

Oct. 2014

Nomura Securities Co., Ltd.
General Manager of Public Relations Department
General Manager of General Coordination and Policy Planning
Department
Director, in charge of Risk Management Department and System
Planning Department
Director, in charge of Job Categories Headquarter and Investment
Trust & Pension Fund Business Headquarter
Executive Officer, in charge of Job Categories Headquarter andInvestment Trust & Pension Fund Business Headquarter
Director
General Manager of the Policy Making Headquarters of Japan
Securities Dealers Association
Corporate Advisor of Nomura Land and Building Co., Ltd.
Representative Director, Executive Vice President of Nomura
Real Estate Asset Management Co., Ltd.
Representative Director, Executive Vice President, General
Manager of the Finance & Accounting Headquarters
Representative Director, Executive Vice President, Supervisor of
the Fund Management Department, the Investment Officers, theInvestment Advisory Section, the Finance Department, the
Accounting Department, the Internal Audit Department, theCompliance Department, the Corporate Planning Department
and the Business Promotion Division
Representative Director, Executive Vice President, Supervisor of
the Fund Management Department, of the Investment Officers,
the Finance Department, the Accounting Department, theInternal Audit Department, the Compliance Department and the
Corporate Planning Department
Representative Director, Executive Vice President, Supervisor of
the Corporate Planning Department, the ComplianceDepartment, the Internal Audit Department, and the Accounting
Department, and in charge of the Investment Performance
Analysis Section
Currently serves as Representative Director, Executive Vice
President, Supervisor of the Corporate Planning Department, theCompliance Department, the Internal Audit Department, and the
Accounting Department, and in charge of the Investment
Performance Analysis Section and Discretionary Investment
Management Section－ 31 －

Number ofshares held–

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

Position
Representative Director
and Senior Managing
Executive Officer,
Supervisor of theAcquisitions
Department, theInvestment Management
Planning Department,
the NOF Investment
Management
Department, the NRF
Investment Management
Department, the NMF
Investment Management
Department, and theNPR Investment
Management
Department

Name
Hiroshi
Kurokawa

Brief personal history
Apr. 1990
Apr. 2009
Apr. 2012
Apr. 2012
Apr. 2013

Apr. 2014

Number ofshares held

Nomura Real Estate Development Co., Ltd.
General Manager of the Pair System Management Department
General Manager of the Development Department I
Director, GEO-AKAMATSU Co., Ltd.
Executive Officer, in charge of the Architectural Design Office,the Retail Property Department, and the Logistic Property
Department, General Manager of the Asset Management
Department of Nomura Real Estate Development Co., Ltd.
Executive Officer, in charge of the Retail Property Department,
and the Logistic Property Department

Apr. 2015

Currently serrves as Representative Director and Senior Managing
Executive Officer, Supervisor of the Acquisitions Department,
the Investment Management Planning Department, the NOF
Investment Management Department, the NRF Investment
Management Department, the NMF Investment Management
Department, and the NPR Investment Management Department,in charge of the Research & Analysis Section, Chief Strategy
Officer of Nomura Real Estate Asset Management Co., Ltd.

Apr. 1984
Jun. 1995
Apr. 2003

Nomura Securities Co., Ltd.
Chief of the Archives Division of the Legal Department
Chief of the Administrative Division of the Wealth Management
Business Department
General Manager of the Corporate Legal Section of Nomura
Asset Management Co., Ltd.
Director and Executive Officer, in charge of the ComplianceDepartment, of Nomura Real Estate Asset Management Co., Ltd.
Director and Executive Officer, in charge of the ComplianceDepartment, General Manager of the Internal Audit Department
Currently serves as Director and Managing Executive Officer, incharge of the Compliance Department, General Manager of theInternal Audit Department
Nomura Securities Co., Ltd.
Managing Director, Head of the Real Estate Investment
Management
Managing Director, Head of the Asset Finance Strategy
General Manger of the Overseas Client Relations & Marketing
Department of Nomura Real Estate Asset Managemet Co., Ltd.
General Manger of the New Products & Marketing Department
Executive Officer, General Manger of the New Products &Marketing Department
Director and Executive Officer, in charge of the ProductManagement Department
Curretly serves as Director and Managing Executive Officer, incharge of the Client Relations & Marketing Department,and theProduct Management Department–

In charge of the Research& Analysis Section
Chief Strategy Officer
Director andYasuhikoManaging Executive
OfficerFuruseIn charge of theCompliance Department

Dec. 2009

General Manager of theInternal Audit
Department

Oct. 2012
Apr. 2014
Apr. 2015

Director andSeiicchiro

Managing Executive
Officer

Wada

In charge of the Client
Relations & Marketing
Department,and theProduct Management
Department

Apr. 1986
Jul. 2008
Jul. 2009
Apr. 2013
Jul. 2013
Apr. 2014
Oct. 2014
Apr. 2015－ 32 －––

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

Position

Name

Director andMasatoManaging Executive
Officer

YamauchiBrief personal history
Apr. 1991
Jun. 2003
Apr. 2005

General Manager of the
Corprate Planning
Department, the
Accounting Department,
and the Finance
Department

Oct. 2008
Oct. 2009

Oct. 2011
Oct. 2012
Apr. 2014
Oct. 2014

Apr. 2015

Director andMotomiManaging Executive
OfficerUki

General Manager of the
NMF Investment
Management
Department

Apr. 1991
Apr. 1998
Apr. 2000
Feb. 2002
Apr. 2006

Oct. 2008
Apr. 2009
Jun. 2010
Oct. 2011
Apr. 2012
Oct. 2012
Apr. 2013

Jul. 2013
Apr. 2014
Oct. 2014
Apr. 2015

Director andExecutive Officer
General Manager of the
NOF Investment
Management
Department

Shoji
Yoshihara

Apr. 1987
Apr. 2009
Apr. 2010
Oct. 2012

Jan. 2013
Oct. 2014

Nomura Real Estate Development Co., Ltd.
Chief of Management Division of Building Development
Department
Chief of Wages and Walfare Division of Human Resource
Department
Manager of Planning Section of Asset Management Company
Leader of the Asset Management Group of the Office
Management Headquarter of Nomura Real Estate AssetManagemet Co., Ltd.
General Manager of the Finance Department
Executive Officer, General Manager of the Finance Department
Executive Officer, General Manager of the Finance Department
and the Accounting Department
Director and Executive Officer, General Manager of the
Corporate Planing Department, the Accounting Department , andthe Finance Department
Curretly serves as Director and Managing Executive Officer,
General Manager of the Corporate Planing Department, the
Accounting Department , and the Finance Department
Nomura Real Estate Development Co., Ltd.
Business Planning Department
Asset Management Business Department
Real Estate Investment Business Department of Nomura Real
Estate Investment Management Co., Ltd.
Leader of the Real Estate Investment Group of the Residential
Management Headquarter of Nomura Real Estate AssetManagemet Co., Ltd.
General Manager of the JOFI Management Section of Nomura
Real Estate Investment Management Co., Ltd.
General Manager of the Project Planning Department
General Manager of the Fund Management Department
General Manager of the Client Relations & Marketing
Department of Nomura Real Estate Asset Management Co., Ltd.
Director, General Manager of the Sales Headquarter
Director and Executive Officer in charge of the Client Relations& Marketing Department
Director and Executive Officer in charge of the Client Relations& Marketing Department and Overseas Client Relations &Marketing Department
Director and Executive Officer in charge of the Client Relations& Marketing Department
Director and Executive Officer, and General Manager of theAsset Management Department
Director and Executive Officer, and General Manager of the
NMF Investment Management Department
Currently serves as Director and Managing Executive Officer, andGeneral Manager of the NMF Investment Management
Department
Nomura Real Estate Development Co., Ltd.
General Manager of the Business Group Development
Department-III
General Manager of the Corporate Secretariat Section
Director and Executive Officer, in charge of the FundManagement Department, of Nomura Real Estate AssetManagement Co., Ltd.
Director and Executive Officer, and General Manager of theFund Management Department
Currently serves as Director and Executive Officer, and General
Manager of the NOF Investment Management Department－ 33 －

Number ofshares held

–

–

–

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

Position
Audit & Supervisory
Board Member

Name
Takahiko
Nagaki

Brief personal history
Apr. 1980
Jun. 2001
Jan. 2003
Apr. 2011
Oct. 2011

Audit & Supervisory
Board Member

Tadanao
Takagoshi

Apr. 1981
Jun. 1997
Jun. 2002
Apr. 2006
Apr. 2007
Jan. 2009
June 2009
June 2012
Sep. 2012
Apr. 2014

Audit & Supervisory
Board Member(part-time)

Shigeaki
Yoshioka

Apr. 1979
Jun. 1998
Apr. 2001
Jun. 2003
Apr. 2007

Apr. 2008
Jun. 2008
Jun. 2008
Oct. 2011
Jun. 2012

Nomura Real Estate Development Co., Ltd.
Gereranl Manager of the IT Strategy Promotion Section
General Manager of the Planning Section of the Corporate
Company
General Manager of the Planning Section of the AssetManagement Company
Currently serves as Audit & Supervisory Board Member of
Nomura Real Estate Asset Management Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Branch Chief of the Sapporo Branch
Director of Nomura Real Estate Urban Net Co., Ltd.
Managing Director, Assistant General Manager of the Sales
Headquarter of Megalos Co., Ltd.
Managing Director, in charge of Sales Headquater and Business
Development Headquater
Managing Director, in charge of Sales Headquater, and General
Manager of the Business Development Headquater
Managing Director, and General Manager of the Administrative
Headquater
Managing Director, in charge of Sales Headquater, and General
Manager of the Business Headquater
Managing Director, General Manager of the Business Headquater
Currently serves as Audit & Supervisory Board Member of
Nomura Real Estate Asset Management Co., Ltd.
Nomura Real Estate Development Co., Ltd.
General Manager of the Human Resources Department
General Manager of the General Affairs Department
Director, General Manager of the General Affairs Department
Managing Director, in charge of the General Affairs Department,
the General Affairs Inquiry Section, and the Nomura Home
Service Department
Corporate Advisor
Audit & Supervisory Board Member
Audit & Supervisory Board Member of Nomura Real Estate
Holdings, Inc.
Currently serves as Audit & Supervisory Board Member of
Nomura Real Estate Asset Management Co., Ltd.
Currently serves as Audit & Supervisory Board Member ofMegalos Co., Ltd.

－ 34 －

Number ofshares held

–

–

–

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

Position
Audit & Supervisory
Board Member(part-time)

Name
ShigekiFujitani

Brief personal history
Apr. 1981
Apr. 2008
Oct. 2008
Apr. 2009
Apr. 2011
Apr. 2012
Apr. 2013
Jun. 2013
Jun. 2013
Jun. 2013
Jun. 2013
Apr. 2014
Jun. 2014
Jun. 2014

Nomura Securities Co., Ltd.
Senior Managing Director of Nomura Asset Management Co.,Ltd.
Senior Managing Director of Nomura Holdings, Inc., in charge of
the Transision Group
Senior Managing Director, Deputy CFO, deputy in charge ofCorporate Planning
Senior Managing Director, Deputy CFO
Senior Managing Director, Co-Deputy CFO
Currently serves as Audit & Supervisory Board Member of
Nomura Real Estate Development Co., Ltd.
Currently serves as Audit & Supervisory Board Member of
Nomura Real Estate Urban Net Co., Ltd.
Audit & Supervisory Board Member of Nomura Living Support
Co., Ltd.
Currently serves as Audit & Supervisory Board Member of
Nomura Building Management Co., Ltd.
Currently serves as Audit & Supervisory Board Member of
Nomura Real Estate Holdings, Inc.
Currently serves as Audit & Supervisory Board Member of Prime
X Co. Ltd.
Currently serves as Audit & Supervisory Board Member of
NREG Toshiba Building Co., Ltd.
Currently serves as Audit & Supervisory Board Member of
Nomura Real Estate Asset Management Co., Ltd.

－ 35 －

Number ofshares held–

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period ended February 28, 2015

5. Reference Information(1) Investment Status

Type of asset

Use

Real estate

Retailproperties
Logistics
properties

Real estatein trust

Retailproperties

Area(Note 1)

Greater Tokyo area
Subtotal
Greater Tokyo area
Other areas
Subtotal
Greater Tokyo area
Kinki area
Other areas
Subtotal

Subtotal
Silent Partnership Equity Interest (Note 4)
Deposits and other assets
Total amount of assets

3rd fiscal period
4th fiscal period
As of August 31, 2014
As of February 28, 2015
As a percentage
As a percentage
Total amount held
Total amount heldof total amount ofof total amount of(million yen)(million yen)assets (%)
assets (%)(Note 2)
(Note 2)
(Note 3)(Note 3)
14,3395.6
14,286
5.2
14,3395.6
14,286
5.2
114,58144.6
113,721
41.1
6,429
2.5
6,342
2.3
121,01147.1
120,063
43.4
72,65028.3
74,63927.0
23,916
9.3
39,597
14.3
6,290
2.4
6,246
2.3
102,857
40.0
120,48443.6
238,20792.7
254,835
92.2
487
0.2
463
0.2
18,344
7.1
21,241
7.7
257,040

100.0

3rd fiscal period
As of August 31, 2014
As a percentage
Amountof total amount(million yen)of assets (%)(Note 5)(Note 3)
Total amount of liabilities
Total amount of net assets

276,539

100.0

4th fiscal period
As of February 28, 2015
As a percentage
Amountof total amount(million yen)of assets (%)(Note 5)(Note 3)

91,83835.7

111,272

40.2

165,201

64.3

165,267

59.8(Note 1) “Greater Tokyo area” refers to Tokyo, Kanagawa Prefecture, Chiba Prefecture and Saitama Prefecture. “Kinki area” refers to Osaka
Prefecture, Kyoto Prefecture, Hyogo Prefecture and Nara Prefecture. “Chukyo area” refers to Aichi Prefecture, Gifu Prefecture and Mie
Prefecture. “Other areas” refers to cabinet-order-designated cities, prefectural capitals, and cities with a population of 100,000 persons ormore as well as surrounding areas of these cities, that are not included in the Greater Tokyo area, Kinki area and Chukyo area (hereinafter thesame).
(Note 2) Total amount held is the carrying amount (in the case of real estate and real estate in trust, the sum total amount of book value, after
depreciation).
(Note 3) The figures are rounded off to first decimal place. Accordingly, the sum total may not add up to 100.0%.
(Note 4) Ryoke Capital Godo Kaisha Silent Partnership Equity Interest. Futhremore, In line with the acquisition of the asset to be acquired by Nomura
Master Fund, Ryoke Capital Godo Kaisha is planned to be dissolved. The Fund is to receive settlement money in accordance with the silent
partnership equity interest.
(Note 5) Total amount of liabilities and total amount of net assets are the amounts as stated in the balance sheet as total liabilities and total net assets.

－ 36 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period ended February 28, 2015(2) Investment Assets① Major Issue of Investment Securities
The following summarizes the investment securities held as of February 28, 2015 (end of the 4th fiscal
period) by NMF.
Book value
Name
Ryoke Capital
Godo Kaisha
Silent Partnership
Equity Interest(Note 2)
Total

Market value(Note 1)
Total price
Unit price(million yen)Type of
asset

Units

Silentpartnership
equityinterest

－

－

463

－

－

－

－

463

－

Unit priceTotal price(million yen)

Unrealized
gain/loss(million yen)

Remarks

463

－

－

463

－

－

(Note 1) Book value is noted as market value.
(Note 2) Investing in real estate in trust beneficiary interest as NIPPON EXPRESS CO., LTD. North Tokyo Distribution Center for main trust asset.
Futhermore, Nomura Master Fund is scheduled to acquire the trust beneficiary interest on July 1, 2015. For the details of the acquisition,please refer to “2. Management Policy and Management Status / (2) Management Status / (Reference) A. Acquisition of the asset” statedabove.

② Investment Real Estate Properties
Real estate are all presented together with real estate trust beneficiary interests in “③ Other Major
Investment Assets”③ Other Major Investment Assets
The following summarizes the real estate, etc. (56 properties) held as of February 28, 2015 (end of the 4th
fiscal period) by NMF (the real estate, and the beneficiary interests of trusts in which real estate properties
are the principal trust properties or the real estate that are the underlying assets thereof, are hereinafterreferred to as the “assets held at the end of the 4th fiscal period”). Unless otherwise stated, the figures in thetables below are the figures as of February 28, 2015.

－ 37 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

A. Overview of Portfolio and Leasing Status, and Changes in Occupancy Rate, Etc.
(a) Overview of Portfolio and Leasing Status
The following is an overview of the portfolio and leasing status for the assets held at the end of
the 4th fiscal period.
Number of properties

56
Total

Acquisition price (thousand yen) (Note 1)(As a percentage of total acquisition price (%))

Logistics total
Greater Tokyo area
Other areas

255,603,141（100.0）122,020,000（47.7）
115,440,000
6,580,000
133,583,141（52.3）

Retail total
Greater Tokyo area

87,927,000

Kinki area

39,316,141

Other areas

6,340,000

Total of opinion of value at end of period (thousand yen) (Note 2)

279,984,000

Gross leasable area (m2) (B) (Note 3)

911,615.63

Gross leased area (m2) (A) (Note 4)

909,577.85

Portfolio occupancy rate (%) (A)÷(B) (Note 5)

99.8

Total number of tenants (Note 6)284

Total of all contracted rent (thousand yen) (Note 7)

1,497,082

Total of all security deposits, etc. (thousand yen) (Note 8)

9,800,106(Note 1)“Acquisition price” is the amount excluding transaction brokerage commission, real estate taxes and the other various expenses required
for the acquisition of the real estate, etc. (the amount at which the real estate, etc. is transacted as stated in the real estate sale andpurchase contract or trust beneficiary interest sale and purchase contract, etc. (“sale and purchase agreement, etc.”)). Percentage figures
as presented in a percentage of the sum total of acquisition price is rounded to first decimal place.

(Note 2)

“Opinion of value at end of period” is the appraisal value or investigation value provided by the respective real estate appraiser. For theopinion of value at the end of the period for real estate, please refer to (Note 1) of “D. Overview of Opinion of Value at End of Period”
below in this report.

(Note 3)The sum total of “leasable area” of each of the assets held at the end of the 4th fiscal period. “Leasable area” is the sum total area of
logistics properties or retail properties, etc. leasable in each asset (including the area of common-use space, etc., if leased). “Leasablearea” is calculated based not on that presented in the registry, but based on the area stated in the lease contract and the area calculated
based on building completion drawings, etc. Accordingly, the leasable area may not be the same as the floor area based on that presented
in the registry and may possibly exceed the floor area. In the case of land with leasehold right, the land area based on that presented in
the registry is shown as contracted area.

(Note 4)The sum total of “leased area” of each of the assets held at the end of the 4th fiscal period. “Leased area” is the area that is actuallyleased to an end-tenant (The area stated in the lease contract; provided, however, that such be limited to the area of logistics propertiesor retail properties (if all of rental units are collectively leased, then the area of the entire rental units) and not include the leased area ofparking space, etc. However, if the master lessee has a rent-guaranteed master lease for some or all rental units, the space is included inleased area regardless of whether or not there is a lease agreement with an end-tenant.) in each asset. In the case of land with leasehold
right, the leased area of the land is shown.

(Note 5)Gross leased area as a percentage of leasable area (rounded to first decimal place).

(Note 6)The sum total of “total number of tenants” of each of the assets held at the end of the 4th fiscal period. In the calculation of “number oftenants,” when some or all rental units are collectively leased for the purpose of subleasing and the lessee in the lease agreement (master－ 38 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015lease agreement) has concluded an agreement with an end-tenant (sublessee that is the actual user) for subleasing the rental units, thelessee of the master lease agreement is counted as one tenant. However, in the case of assets with a so-called pass-through master leaseagreement where the rent received from the lessee in the master lease agreement is the same amount as the rent that the lessee receives
from the end-tenant, the total number of end-tenants is shown. In addition, if multiple rental units in a specific asset are leased to a
specific tenant, this is counted as one tenant for the asset and, if multiple assets are leased to a specific tenant, these are counted
separately and the total of that number of tenants is shown.
(Note 7)

The total amount of “total contracted rent” for February 2015 of each of the assets held at the end of the 4th fiscal period (rounded
down to the nearest thousand yen). “Total contracted rent” for February 2015 refers to the sum total of monthly rent and common area
charges in lease agreements actually concluded with end-tenants that are valid as of the last day of February 2015 (If common-use space,etc. is leased based on the lease agreement, the rent for such is included and, if rent includes the amount equivalent to the fee for use ofparking space, such amount is included. In addition, if the master lessee has a rent-guaranteed master lease for some or all rental units,
the rent for the space is based on the rent, etc. in the lease agreement concluded with the master lessee.). Furthermore, regarding tenants
who have been exempt from rent payment for a certain period of time in their agreements, such exemption period is not considered in
the table above and the rent is calculated based on the monthly rent and common area charges payable immediately after the exemption
period ends. In addition, the standard level of rent is used for tenants with sales-based rent.

(Note 8)The total amount of “all security deposits, etc.” of each of the assets held at the end of the 4th fiscal period (rounded down to thenearest thousand yen). “All security deposits, etc.” is the sum total amount of the balance of leasehold and security deposits stated in therespective lease contract with end-tenants of each asset as of February 28, 2015 (rounded down to the nearest thousand yen).
Accordingly, the sum total of “leasehold and security deposits” of the respective property may not add up to the amount shown in the
total columns.

(b) Changes in Occupancy Rate, Etc.
The following is the changes in the occupancy rate, etc. of real estate under management held
by NMF.
August 31, 2013 February 28, 2014 August 31, 2014 February 28, 2015(end of 1st fiscal (end of 2nd fiscal (end of 3rd fiscal (end of 4th fiscal
period)period)period)period)Number of properties

54

55

55

56

Total number of tenants

241

251

243

284

Gross leasable area (m2)

890,795.63

897,089.54

897,406.28

911,615.63

Portfolio occupancy rate
(at end of fiscal period) (%)

99.8

99.8

99.9

99.8

－ 39 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

B. Price and Investment Share
The following is an overview of the assets held at the end of the 4th fiscal period (acquisition price,
carrying amount, opinion of value at end of period, investment share and appraiser).
Use

Area

Property name17,40017,14319,800

7.1

Landport Itabashi

15,71015,513

17,400

6.2

The Tanizawa Sogo Appraisal
Co., Ltd.
The Tanizawa Sogo Appraisal
Co., Ltd.

Landport Kawagoe

13,70013,367

14,900

5.3

Japan Real Estate InstituteLandport Atsugi

11,41011,07912,500

4.5

Sagamihara Tana Logistics Center

10,60010,78011,400

4.1

The Tanizawa Sogo Appraisal
Co., Ltd.
Daiwa Real Estate Appraisal
Co., Ltd.

Sagamihara Onodai Logistics Center

8,700

8,525

9,700

3.5

Japan Real Estate Institute

8,250

8,053

8,720

3.1

Japan Real Estate Institute

7,340

7,126

8,200

2.9

Japan Real Estate InstituteFunabashi Logistics Center

4,660

4,662

5,190

1.9

Japan Real Estate InstituteAtsugi Minami Logistics Center B Tower

4,590

4,557

4,990

1.8

Hanyu Logistics Center

3,810

3,693

4,230

1.5

Kawaguchi Logistics Center B Tower

3,750

3,730

4,220

1.5

Kawaguchi Logistics Center A Tower

2,830

2,828

3,200

1.1

Atsugi Minami Logistics Center A Tower

2,690

2,659

3,090

1.1

Ota Nitta Logistics Center

3,430

3,300

3,690

1.3

Ota Higashishinmachi Logistics Center

2,170

2,092

2,380

0.9

Ota Kiyohara Logistics Center

650

621

702

0.3

Chiyodamachi Logistics Center

330

328

354

0.1

122,020

120,063

134,666

48.1

Morisia Tsudanuma

16,60016,86017,300

6.2

Yokosuka More’s City

13,64013,693

14,900

5.3

Daiwa Real Estate Appraisal
Co., Ltd.
The Tanizawa Sogo Appraisal
Co., Ltd.

Recipe SHIMOKITA

10,407

10,778

10,600

3.8

Japan Valuers Co., Ltd.

Kawasaki More’s

6,080

6,176

7,160

2.6

EQUINIA Shinjuku

4,260

4,303

4,480

1.6

EQUINIA Ikebukuro

3,990

4,011

4,260

1.5

The Tanizawa Sogo Appraisal
Co., Ltd.
Daiwa Real Estate Appraisal
Co., Ltd.
Daiwa Real Estate Appraisal
Co., Ltd.

3,440

3,619

4,100

1.5

Japan Real Estate Institute

3,080

3,012

3,490

1.2

Japan Real Estate InstituteKonami Sports Club Fuchu

2,730

2,693

3,160

1.1

Daiwa Real Estate Appraisal
Co., Ltd.

FESTA SQUARE

2,600

2,536

2,950

1.1

Japan Real Estate Institute

GEMS Shibuya

2,490

2,495

2,550

0.9

Daiwa Real Estate Appraisal
Co., Ltd.

Sundai Azamino

1,700

1,662

1,850

0.7

Japan Real Estate Institute

EQUINIA Aobadai

1,560

1,566

1,750

0.6

Japan Real Estate Institute

Megalos Kanagawa

1,000

1,013

1,320

0.5

Japan Real Estate Institute

Universal CityWalk Osaka

15,50015,80916,600

5.9

Japan Valuers Co., Ltd.

Izumiya Senrioka

8,930

8,824

10,300

3.7

Merad Owada

6,640

6,617

7,150

2.6

Izumiya Yao

4,406

4,329

4,910

1.8

Other areas

Logistics subtotal

covirna machida
GreaterTokyo area
Nitori Makuhari
RetailKinki area

Appraiser

Landport Urayasu

Landport Hachioji
GreaterTokyo area Landport Kasukabe
Logistics

Opinion of
Acquisition
Investment
Carrying amount
value
price
share
(million yen) at end of period(million yen)（%）
(Note 2)
(million yen)
(Note 1)
(Note 4)(Note 3)－ 40 －The Tanizawa Sogo Appraisal
Co., Ltd.
Daiwa Real Estate Appraisal
Co., Ltd.
Daiwa Real Estate Appraisal
Co., Ltd.
Daiwa Real Estate Appraisal
Co., Ltd.
The Tanizawa Sogo Appraisal
Co., Ltd.
Daiwa Real Estate Appraisal
Co., Ltd.
Daiwa Real Estate Appraisal
Co., Ltd.
Daiwa Real Estate Appraisal
Co., Ltd.
Daiwa Real Estate Appraisal
Co., Ltd.

The Tanizawa Sogo Appraisal
Co., Ltd.
Daiwa Real Estate Appraisal
Co., Ltd.
The Tanizawa Sogo Appraisal
Co., Ltd.

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

Use

Area

Kinki area
RetailProperty name

Opinion of
Acquisition
Investment
Carrying amount
value
price
share
(million yen) at end of period(million yen)（%）
(Note 2)
(million yen)
(Note 1)
(Note 4)(Note 3)

Izumiya Obayashi

3,020

3,187

3,560

1.3

Ichibancho stear

4,700

4,665

5,050

1.8

EQUINIA Aobadori

1,640

1,581

1,820

0.7

The Tanizawa Sogo Appraisal
Co., Ltd.
The Tanizawa Sogo Appraisal
Co., Ltd.
The Tanizawa Sogo Appraisal
Co., Ltd.

Mitsubishi Motors Meguro

2,740

2,764

2,840

1.0

Japan Real Estate InstituteMitsubishi Motors Chofu

1,760

1,776

1,840

0.7

Mitsubishi Motors Shibuya

1,570

1,586

1,740

0.6

Daiwa Real Estate Appraisal
Co., Ltd.
Daiwa Real Estate Appraisal
Co., Ltd.

Mitsubishi Motors Nerima

1,240

1,251

1,280

0.5

Japan Real Estate InstituteMitsubishi Motors Kawasaki

950

959

1,030

0.4

Mitsubishi Motors Takaido

850

859

898

0.3

The Tanizawa Sogo Appraisal
Co., Ltd.
Daiwa Real Estate Appraisal
Co., Ltd.

800

808

825

0.3

Japan Real Estate Institute

800

808

825

0.3

Japan Real Estate Institute

770

779

792

0.3

Japan Real Estate Institute

740

748

818

0.3

The Tanizawa Sogo Appraisal
Co., Ltd.

Mitsubishi Motors Sekimachi

600

606

620

0.2

Japan Real Estate InstituteMitsubishi Motors Higashiyamato

450

455

492

0.2

The Tanizawa Sogo Appraisal
Co., Ltd.

Mitsubishi Motors Motosumiyoshi

370

375

376

0.1

Japan Real Estate InstituteMitsubishi Motors Kawagoe

350

355

366

0.1

Mitsubishi Motors Edogawa

200

204

211

0.1

Mitsubishi Motors Sayama

160

163

168

0.1

Mitsubishi Motors
Ibaraki Maintenance Center

820

829

937

0.3

Retail subtotal

133,583

134,771

145,318

51.9

Total

255,603

254,835

279,984

100.0

Other areas

Mitsubishi Motors Katsushika
Retail(land
Mitsubishi Motors Higashikurume
Greater
withTokyo area Mitsubishi Motors Setagaya
leaseholdright)
Mitsubishi Motors Suginami

Kinki area

(Note 1)

Appraiser

The Tanizawa Sogo Appraisal
Co., Ltd.
Daiwa Real Estate Appraisal
Co., Ltd.
The Tanizawa Sogo Appraisal
Co., Ltd.
Daiwa Real Estate Appraisal
Co., Ltd.

“Acquisition price” is the amount excluding transaction brokerage commission, real estate taxes and the other various expenses required for theacquisition of the real estate, etc. (the amount at which the real estate, etc. is transacted as stated in the sale and purchase agreement, etc.).

(Note 2)“Carrying amount” is the sum total amount of the acquisition value (including various expenses required for the acquisition) of land, buildings, structures,
tools, furniture and fixtures, construction in progress, and leasehold rights (including these assets in trust), less accumulated depreciation.

(Note 3)

“Opinion of value at end of period” is the appraisal or investigation value provided by the respective real estate appraiser (the value calculated by therespective real estate appraiser with the date of the 4th fiscal period-end (February 28, 2015) as the effective date of value and the value indicated by the
income approach as a standard) in accordance with NMF’s Articles of Incorporation and the Regulations Concerning Accounting of Investment
Corporations (Cabinet Office Ordinance No. 47 of 2006). For the opinion of value at the end of the period for real estate, please refer to (Note 1) of “D.
Overview of Opinion of Value at End of Period” below in this report.

(Note 4)

“Investment share,” which is based on the opinion of value at the end of the period, is the opinion of value at the end of the period of the respective
asset as a percentage of the total amount of the opinion of value at the end of the period of the entire portfolio (56 properties in total). The figures arerounded to first decimal place. Accordingly, the sum total may not add up to 100.0.

－ 41 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

C. Overview of Buildings, Etc.
The following is an overview of the buildings, etc. of the assets held at the end of the 4th fiscal period(use, area, property name, location, construction completion, leasable area, leased area, occupancy rate,
number of tenants, operating revenue from property leasing and that as a percentage of total operating
revenue from property leasing, and leasehold and security deposits).

Use

Area

Property nameLandport Urayasu

Landport Itabashi

Location

Urayasu-shi,
Chiba
Itabashi-ku,
Tokyo

As a
Operating percentage ofLeasehold andOccupancy
revenue from total operating
Number of
security
rateproperty
revenue fromtenants
deposits( %)leasing
property(Note 4)(million yen)
(Note 3)(million yen)leasing(Note 7)(Note 5)
( %)(Note 6)

Construction completion

Leasable area(m2)
(Note 1)

Leased area(m2)
(Note 2)

May 2008

70,045.85

70,045.85

100.0

2

(Note 8)(Note 8)(Note 8)January 2008

52,794.55

52,794.55

100.0

2

(Note 8)(Note 8)(Note 8)Landport Kawagoe

Kawagoe-shi,
Saitama

May 2009

71,569.89

71,569.89

100.0

2

(Note 8)(Note 8)(Note 8)Landport Atsugi

Atsugi-shi,
Kanagawa

March 2007

47,995.23

47,995.23

100.0

2

(Note 8)(Note 8)(Note 8)

Sagamihara Tana
Logistics Center

Sagamihara-shi,
Kanagawa

October 2007

50,450.00

50,450.00

100.0

1

(Note 8)(Note 8)(Note 8)

Sagamihara Onodai
Logistics Center

Sagamihara-shi,
Kanagawa

August 2000

57,448.03

57,448.03

100.0

1

(Note 8)(Note 8)(Note 8)Landport Hachioji

Hachioji-shi,Tokyo

November 2008

34,896.32

34,896.32

100.0

1

(Note 8)(Note 8)(Note 8)Landport Kasukabe

Kasukabe-shi,
Saitama

June 2009

29,630.48

29,630.48

100.0

1

(Note 8)(Note 8)(Note 8)

Funabashi

Funabashi-shi,

Logistics Center

Chiba

September 1991

30,641.98

30,641.98

100.0

2

(Note 8)(Note 8)(Note 8)

Atsugi Minami
Logistics Center B Tower

Atsugi-shi,
Kanagawa

May 2005

24,909.96

24,909.96

100.0

1

(Note 8)(Note 8)(Note 8)

Hanyu
Logistics Center

Hanyu-shi,
SaitamaFebruary 2006

24,850.80

24,850.80

100.0

1

(Note 8)(Note 8)(Note 8)Kawaguchi
Logistics Center B Tower

Kawaguchi-shi,
SaitamaApril 1996

13,648.70

13,648.70

100.0

1

(Note 8)(Note 8)(Note 8)Kawaguchi
Logistics Center A Tower

Kawaguchi-shi,
Saitama

September 1991

12,003.57

12,003.57

100.0

1

(Note 8)(Note 8)(Note 8)

Atsugi Minami
Logistics Center A Tower

Atsugi-shi,
Kanagawa

October 2003

9,825.52

9,825.52100.0

1(Note 8)(Note 8)(Note 8)

Ota Nitta
Logistics CenterOta-shi,Gunma

March 2003

42,328.00

42,328.00

100.0

1

(Note 8)(Note 8)(Note 8)

Ota Higashishinmachi
Logistics CenterOta-shi,
Gunma

August 2008

23,584.72

23,584.72

100.0

1

(Note 8)(Note 8)(Note 8)

Ota Kiyohara
Logistics CenterOta-shi,Gunma

May 2004

9,397.38

9,397.38

100.0

1(Note 8)(Note 8)(Note 8)

Chiyodamachi
Logistics Center

Ora-gun,
Gunma

January 1999

4,592.00

4,592.00

100.0

1(Note 8)(Note 8)(Note 8)-610,612.98

610,612.98

100.0

23

4,276

42.6

3,832

Greater Tokyo
area

Logistics

Other areas

Logistics subtotal

RetailGreater Tokyo
area-

Morisia Tsudanuma

Narashino-shi,
Chiba

Low-rise retail building:
October 1978
Parking building:November 1987

39,736.87

38,940.42

98.0

105

1,128

11.2

784

Yokosuka More’s City

Yokosuka-shi,
Kanagawa

July 1997

29,383.65

29,383.65

100.0

1

(Note 8)(Note 8)(Note 8)

Recipe SHIMOKITA

Setagaya-ku,
Tokyo

July 2011

6,295.22

6,295.22

100.0

11

324

3.2

370

August 1980

18,810.31

18,810.31

100.0

1

(Note 8)(Note 8)(Note 8)March 1988

3,611.59

3,611.59

100.0

13

154

1.5

480

Kawasaki More’s

EQUINIA Shinjuku

Kawasaki-shi,
Kanagawa
Shinjuku-ku,Tokyo－ 42 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

Use

Area

Greater Tokyo
area

Property nameLeasehold andOccupancy
revenue from total operating
Number of
security
rateproperty
revenue fromtenants
deposits( %)leasing
property(Note 4)(million yen)
(Note 3)(million yen)leasing(Note 7)(Note 5)
( %)(Note 6)

Toshima-ku,
Tokyo

October 1973

2,693.93

2,693.93

100.0

13

149

1.5

234

covirna machida

Machida-shi,Tokyo

September 1981

2,891.32

2,891.32

100.0

7

167

1.7

124

Nitori Makuhari

Chiba-shi,
Chiba

November 2007

14,367.98

14,367.98

100.0

1

(Note 8)(Note 8)(Note 8)

Konami Sports Club Fuchu

Fuchu-shi,TokyoFebruary 2000

12,385.18

12,385.18

100.0

1

(Note 8)(Note 8)(Note 8)FESTA SQUARE

Saitama-shi,
Saitama

September 2008

7,480.63

7,480.63

100.0

1(Note 8)(Note 8)(Note 8)GEMS Shibuya

Shibuya-ku,
Tokyo

September 2012

1,791.34

1,791.34

100.0

10

99

1.0

127

Sundai Azamino

Yokohama-shi,
Kanagawa

November 2008

2,286.47

2,286.47

100.0

1(Note 8)(Note 8)(Note 8)EQUINIA Aobadai

Yokohama-shi,
Kanagawa

November 1982

2,457.36

2,457.36

100.0

7

78

0.8

119

Megalos Kanagawa

Yokohama-shi,
Kanagawa

May 2002

6,217.85

6,217.85

100.0

1(Note 8)(Note 8)(Note 8)June, 2001

9,733.28

8,491.95

87.2

41

699

7.0

563

24,399.12

24,399.12

100.0

1

(Note 8)(Note 8)(Note 8)

14,941.54
5,856.50

14,941.54
5,856.50

100.0

1(Note 8)(Note 8)(Note 8)34,198.01

34,198.01

100.0

1

(Note 8)(Note 8)(Note 8)

11,714.36

11,714.36

100.0

1

(Note 8)(Note 8)(Note 8)February 2006

4,582.81

4,582.81

100.0

7

234

2.3

311

June 2008

4,030.37

4,030.37

100.0

19

165

1.6

255

-

3,381.19

3,381.19

100.0

1(Note 8)(Note 8)(Note 8)-4,183.63

4,183.63

100.0

1(Note 8)(Note 8)(Note 8)-

1,421.31

1,421.31

100.0

1(Note 8)(Note 8)(Note 8)-

1,725.61

1,725.61100.0

1(Note 8)(Note 8)(Note 8)-3,057.02

3,057.02

100.0

1(Note 8)(Note 8)(Note 8)-1,923.64

1,923.64

100.0

1(Note 8)(Note 8)(Note 8)-1,930.05

1,930.05

100.0

1(Note 8)(Note 8)(Note 8)-4,105.00

4,105.00

100.0

1(Note 8)(Note 8)(Note 8)-1,305.78

1,305.78

100.0

1(Note 8)(Note 8)(Note 8)-

1,831.00

1,831.00

100.0

1(Note 8)(Note 8)(Note 8)-989.77989.77100.0

1(Note 8)(Note 8)(Note 8)-2,783.79

2,783.79

100.0

1(Note 8)(Note 8)(Note 8)

Universal CityWalk Osaka

Izumiya Senrioka

Merad Owada

Izumiya Yao

Izumiya Obayashi

Ichibancho stear
Other areas
EQUINIA Aobadori

Retail(land with Greater Tokyo
leaseholdarea
right)

Construction completion

Leased area(m2)
(Note 2)As apercentage of

EQUINIA Ikebukuro

RetailKinki area

Location

Leasable area(m2)
(Note 1)

OperatingOsaka-shi,
Osaka
Suita-shi,
Osaka
Osaka-shi,
Osaka

Annex: July 1999
Main building: June 2000
Store: September 1994
Logistics: July 2000

Yao-shi,

Newly built: July 2003

Osaka

Expansion: April 2012

Takarazuka-shi,
Hyogo
Sendai-shi,
MiyagiSendai-shi,
Miyagi

Mitsubishi Motors

Meguro-ku,

MeguroTokyo

Mitsubishi Motors

Chofu-shi,

Chofu

Tokyo

Mitsubishi Motors

Shibuya-ku,

ShibuyaTokyo

Mitsubishi Motors

Nerima-ku,

NerimaTokyo

Mitsubishi Motors

Kawasaki-shi,

KawasakiKanagawa

Mitsubishi Motors

Suginami-ku,

TakaidoTokyo

Mitsubishi Motors

Katsushika-ku,

Katsushika

Tokyo

Mitsubishi Motors

Higashikurume-shi,

Higashikurume

Tokyo

Mitsubishi Motors

Setagaya-ku,

SetagayaTokyo

Mitsubishi Motors

Suginami-ku,

SuginamiTokyo

Mitsubishi Motors

Nerima-ku,

Sekimachi

Tokyo

Mitsubishi Motors

Higashiyamato-shi,

Higashiyamato

Tokyo

Newly built: September 1973
Expansion: October 1977
Expansion: January 2001

－ 43 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

Use

Area

Property nameGreater Tokyo
Retailarea(land withleaseholdright)

Kinki area

(Note 1)

Location

Mitsubishi Motors

Kawasaki-shi,

Motosumiyoshi

Kanagawa

Mitsubishi Motors

Kawagoe-shi,

Kawagoe

Saitama

Mitsubishi Motors

Edogawa-ku,

EdogawaTokyo

Mitsubishi Motors

Sayama-shi,

SayamaSaitama

Mitsubishi Motors

Ibaraki-shi,

Ibaraki Maintenance Center

Osaka

Operating

As apercentage ofLeasehold andOccupancy
revenue from total operating
Number of
security
rateproperty
revenue fromtenants
deposits( %)leasing
property(Note 4)(million yen)
(Note 3)(million yen)leasing(Note 7)(Note 5)
( %)(Note 6)

Leasable area(m2)
(Note 1)

Leased area(m2)
(Note 2)-

1,646.97

1,646.97

100.0

1(Note 8)(Note 8)(Note 8)-2,462.40

2,462.40100.01(Note 8)(Note 8)(Note 8)-892.56892.56100.0

1(Note 8)(Note 8)(Note 8)-

1,793.00

1,793.00

100.0

1(Note 8)(Note 8)(Note 8)-5,704.24

5,704.24

100.0

1(Note 8)(Note 8)(Note 8)Construction completion

Retail subtotal--

301,002.65

298,964.87

99.3

261

5,772

57.4

5,967

Total

-

-

911,615.63

909,577.85

99.8

284

10,049

100.0

9,800

“Leasable area” is the sum total area of logistics properties or retail properties, etc. leasable in each asset (including the area of common-use space, etc., ifleased). The leasable area is calculated based not on that presented in the registry, but based on the area stated in the lease contract and the area calculated
based on building completion drawings, etc. Accordingly, the leasable area may not be the same as the floor area based on that presented in the registry
and may possibly exceed the floor area. In the case of land with leasehold right, the land area based on that presented in the registry is shown ascontracted area.

(Note 2)

“Leased area” is the area that is actually leased to an end-tenant (The area stated in the lease contract; provided, however, that such be limited to the areaof logistics properties or retail properties (if all of rental units are collectively leased, then the area of the entire rental units) and not include the leased areaof parking space, etc. However, if the master lessee has a rent-guaranteed master lease for some or all rental units, the space is included in leased area
regardless of whether or not there is a lease agreement with an end-tenant.) in each asset. In the case of land with leasehold right, the leased area of theland is shown.

(Note 3)

“Occupancy rate” is the leased area as a percentage of leasable area in each asset (rounded to first decimal place).

(Note 4)In the calculation of “number of tenants,” when some or all rental units are collectively leased for the purpose of subleasing and the lessee in the leaseagreement (master lease agreement) has concluded an agreement with an end-tenant (sublessee that is the actual user) for subleasing the rental units, thelessee of the master lease agreement is counted as one tenant. However, in the case of assets with a so-called pass-through master lease agreement where
the rent received from the lessee in the master lease agreement is the same amount as the rent that the lessee receives from the end-tenant, the total
number of end-tenants is shown. In addition, if multiple rental units in a specific asset are leased to a specific tenant, this is counted as one tenant for theasset and, if multiple assets are leased to a specific tenant, these are counted separately and the total of that number of tenants is shown in the subtotal
and total columns.

(Note 5)

“Operating revenue from property leasing” is the operating revenue from property leasing in the 4th fiscal period (for the property acquired during the
4th fiscal period, the operating revenue from property leasing for on and after the date of acquisition).

(Note 6)

“As a percentage of total operating revenue from property leasing” is the operating revenue from property leasing of each asset as a percentage of thesum total of operating revenue from property leasing (total operating revenue from property leasing). The figures are rounded to first decimal place.
Accordingly, the sum total may not add up to 100.0.

(Note 7)

“Leasehold and security deposits” is the sum total amount of the balance of leasehold and security deposits stated in the respective lease contract with
end-tenants of each asset as of February 28, 2015 (rounded down to the nearest million yen). Accordingly, the sum total of “leasehold and security
deposits” of the respective property may not add up to the amount shown in the respective subtotal and total columns.

(Note 8)Not disclosed, because consent has not been obtained from the tenant. Logistics subtotal, Retail subtotal and Total figures are the sum of the figures
including not disclosed, since consent has not been obtained from the tenant.

－ 44 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

D. Overview of Opinion of Value at End of Period
The following is an overview of the opinion of value at the end of the period (① opinion of value at
end of period, ② value by income approach and capitalization rate using direct capitalization approach,③ value by income approach, discount rate and terminal capitalization rate using DCF approach, ④
NOI, and ⑤ NOI yield (NOI / acquisition price)).
Use

Logistics

Property name

DCF approach

Value byDiscount
incomerate
approach(%)(million yen)
4.5
4.4
19,7004.6(Note 4)4.6
4.7
17,2004.8(Note 5)Landport Urayasu

19,80020,100Landport Itabashi

17,40017,700Landport Kawagoe

14,90015,0005.1

14,800Landport Atsugi

12,50012,600

4.9

Sagamihara Tana Logistics Center

11,40011,500

Sagamihara Onodai Logistics Center

9,700

Landport Hachioji

Terminal
cap rate(%)

NOINOI yield(million(NOI /
yen)
acquisition(Note 2)
price)(%)(Note 3)

4.6

892

5.1

4.9

834

5.3

4.8

5.3

777

5.7

12,5004.8
5.0(Note 6)

5.1

621

5.4

5.1

11,400

5.0

5.4

603

5.7

9,720

5.2

9,670

4.8

5.4

524

6.0

8,720

8,740

5.0

8,690

4.7

5.1

439

5.3

Landport Kasukabe

8,200

8,270

5.0

8,120

4.6

5.3

413

5.6

Funabashi Logistics Center

5,190

5,270

5.1

5,110

4.8

5.4

291

6.2

5.2

252

5.5

Atsugi Minami Logistics Center B Tower

4,990

5,020

5.0

4,970

4.9
5.1
(Note 7)

Hanyu Logistics Center

4,230

4,260

5.9

4,220

5.7

6.1

256

6.7

Kawaguchi Logistics Center B Tower

4,220

4,250

5.1

4,210

4.9

5.3

221

5.9

Kawaguchi Logistics Center A Tower

3,200

3,210

5.4

3,190

5.2

5.6

173

6.1

Atsugi Minami Logistics Center A Tower

3,090

3,100

5.0

3,080

4.9
5.1
(Note 8)

5.2

156

5.8

Ota Nitta Logistics Center

3,690

3,710

6.4

3,680

6.2

6.6

242

7.1

Ota Higashishinmachi Logistics Center

2,380

2,390

6.3

2,370

6.1

6.5

153

7.1

Ota Kiyohara Logistics Center

702

704

6.3

701

6.1

6.5

46

7.1

Chiyodamachi Logistics Center

354

354

6.2

354

6.0

6.4

24

7.6

134,666

-

-

-

-

-

6,927

5.7

Morisia Tsudanuma

17,30016,9005.4

17,400

5.2

5.6

1,086

6.5

Yokosuka More’s City

14,90015,1005.5

14,800

5.5

5.7

880

6.5

Recipe SHIMOKITA

10,60010,700

4.3

10,400

4.1

4.5

452

4.3

Kawasaki More’s

7,160

7,170

4.8

7,150

4.8

5.0

390

6.4

EQUINIA Shinjuku

4,480

4,390

4.2

4,520

4.0

4.4

196

4.6

EQUINIA Ikebukuro

4,260

4,200

4.5

4,290

4.3

4.7

193

4.9

covirna machida

4,100

4,100

5.4

4,100

4.9

5.3

226

6.6

Nitori Makuhari

3,490

3,540

5.4

3,440

5.2

5.7

191

6.2

Konami Sports Club Fuchu

3,160

3,170

5.6

3,150

5.4

5.8

169

6.2

FESTA SQUARE

2,950

2,970

5.7

2,930

5.4

5.9

168

6.5

GEMS Shibuya

2,550

2,550

4.8

2,550

4.6

5.0

121

4.9

Sundai Azamino

1,850

1,860

5.8

1,840

5.4

6.1

108

6.4

Logistics subtotal

RetailDirect capitalization
Opinion of
approachvalue
at end ofValue byperiodincomeCap rate(million yen) approach(%)(Note 1)(million yen)

－ 45 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

Use

RetailRetail(land withleaseholdright)(Note 1)

Property name

Direct capitalization
Opinion of
approachvalue
at end ofValue byperiodincomeCap rate(million yen) approach(%)(Note 1)(million yen)

NOI
NOI yield(million(NOI /
yen)
acquisition(Note 2)
price)(%)(Note 3)

DCF approach
Value byDiscount
incomerate
approach(%)(million yen)

Terminal
cap rate(%)

EQUINIA Aobadai

1,750

1,760

5.8

1,740

5.6

6.0

109

7.0

Megalos Kanagawa

1,320

1,330

6.0

1,310

5.8

6.2

84

8.4

Universal CityWalk Osaka

16,60017,3004.9

16,400

4.7

5.1

920

5.9

Izumiya Senrioka

10,300

10,200

5.6

10,4005.4
5.8(Note 9)

5.8

586

6.6

Merad Owada

7,150

7,130

6.2

7,160

6.0

6.4

460

6.9

Izumiya Yao

4,910

4,970

5.9

4,880

5.7
6.1
(Note 10)

6.1

308

7.0

Izumiya Obayashi

3,560

3,580

5.9

3,550

5.7

6.1

230

7.6

5.1

239

5.1

Ichibancho stear

5,050

4,920

4.9

5,100

4.9
5.1
(Note 11)

EQUINIA Aobadori

1,820

1,640

5.5

1,890

5.7

5.7

100

6.1

Mitsubishi Motors Meguro

2,840

-

-

2,840

5.5

-

155

5.7

Mitsubishi Motors Chofu

1,840

-

-

1,840

5.2

-

93

5.3

Mitsubishi Motors Shibuya

1,740

-

-

1,740

5.0

-

86

5.5

Mitsubishi Motors Nerima

1,280

-

-

1,280

5.6

-

70

5.7

Mitsubishi Motors Kawasaki

1,030

-

-

1,030

6.7

7.1

73

7.7

Mitsubishi Motors Takaido

898

-

-

898

5.1

-

44

5.3

Mitsubishi Motors Katsushika

825

-

-

825

5.5

-

44

5.6

Mitsubishi Motors Higashikurume

825

-

-

825

7.0

-

55

6.9

Mitsubishi Motors Setagaya

792

-

-

792

5.6

-

43

5.7

Mitsubishi Motors Suginami

818

-

-

818

5.0

5.4

39

5.3

Mitsubishi Motors Sekimachi

620

-

-

620

5.6

-

34

5.8

Mitsubishi Motors Higashiyamato

492

-

-

492

8.2

8.6

42

9.5

Mitsubishi Motors Motosumiyoshi

376

-

-

376

6.0

-

22

6.0

Mitsubishi Motors Kawagoe

366

-

-

366

5.9

6.3

22

6.4

Mitsubishi Motors Edogawa

211

-

-

211

5.5

-

10

5.2

Mitsubishi Motors Sayama

168

-

-

168

8.5

8.9

14

9.2

Mitsubishi Motors
Ibaraki Maintenance Center

937

-

-

937

6.1

-

16

2.0

Retail subtotal

145,318

-

-

-

-

-

8,097

6.1

Total

279,984

-

-

-

-

-

15,025

5.9“Opinion of value at end of period” is the appraisal or investigation value provided by the respective real estate appraiser (the value calculated by therespective real estate appraiser with the date of the 4th fiscal period-end (February 28, 2015) as the effective date of value and the value indicated by the
income approach as a standard) listed in “B. Price and Investment Share” earlier in this report in accordance with NMF’s Articles of Incorporation andthe Regulations Concerning Accounting of Investment Corporations.
The appraisal or investigation value of real estate is no more than an indication of the opinion of the value of the appraised real estate at the time ofappraisal by the respective real estate appraiser, etc. conducted in accordance with the Act on Real Estate Appraisal (Act No. 152 of 1963), real estateappraisal standards, etc. Reappraisal of the same real estate may result in a different appraisal or investigation value, depending on the real estate appraiser
conducting the appraisal and the method or timing of the appraisal. In addition, the appraisal of real estate is not a guarantee or promise of the possibilityof transactions at present or in the future at the appraised value.
Furthermore, the cost approach and income approach (direct capitalization approach and discounted cash flow approach) are used in appraisal
calculations. The appraisal value is determined by the income approach if the subject real estate’s price is based on an emphasis on investment profitability
in the market and it is seen as an investment target for qualified institutional investors, etc. The value indicated by the cost approach is used as an index toverify the value indicated by the income approach.
“Direct capitalization approach” is a method where the net revenue in a certain period is capitalized by the capitalization rate, among methods of seeking
the value indicated by the income approach (a method of seeking the estimated value of real estate by seeking the sum of the present value of the net－ 46 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

revenue the real estate is expected to generate in the future).
“Discounted cash flow (DCF) approach” is a method where the net income and terminal value arising in multiple successive periods are discounted topresent value according to their periods and totaled, among methods of seeking the value indicated by the income approach.
(Note 2) “NOI” is, in the case of properties other than properties on land with leasehold right, the net operating income using the direct capitalization approachstated in the appraisal report or investigation report and, in the case of properties on land with leasehold right, the initial-year net operating income using
the DCF approach stated in the appraisal report or investigation report (rounded down to the nearest million yen). Accordingly, the sum total of “NOI”
of the respective property may not add up to the amount shown in the respective subtotal and total columns. Futhermore, for Mitsubishi Motors Ibaraki
Maintenance Center, the tenant will terminate the lease contract on June 30, 2015, therefore, 4 months until the lease termination for the initial-year net
operating income using the DCF approach is stated.
(Note 3) “NOI yield (NOI / acquisition price)” is the amount NOI devided by the acquisition price (rounded to first decimal place). Logistics subtotal, Retail
subtotal and Total figures are the sum of NOI devided by the sum of acquisition price for the properties in each categories, held at the end of the 4 fiscal
period (rounded to first decimal place).
(Note 4) The discount rate of “Landport Urayasu” is 4.5 for the 1st year and 4.6 for the 2nd to 11th year since the effective date of value.
(Note 5) The discount rate of “Landport Itabashi” is 4.6 for the 1st to 2nd year and 4.8 for the 3rd to 11th year since the effective date of value.
(Note 6) The discount rate of “Landport Atsugi” is 4.8 for the 1st to 2nd year and 5.0 for the 3rd to 11th year since the effective date of value.
(Note 7) The discount rate of “Atsugi Minami Logistics Center B Tower” is 4.9 for the 1st to 7th year and 5.1 for the 8th to 11th year since the effective date ofvalue.
(Note 8) The discount rate of “Atsugi Minami Logistics Center A Tower” is 4.9 for the 1st to 9th year and 5.1 for the 10th to 11th year after the effective date ofvalue.
(Note 9) The discount rate of “Izumiya Senrioka” is 5.4 for the 1st to 9th year and 5.8 for the 10th to 11th year after the effective date of value.
(Note 10) The discount rate of “Izumiya Yao” is 5.7 for the 1st to 8th year and 6.1 for the 9th to 11th year after the effective date of value.
(Note 11) The discount rate of “Ichibancho stear” is 4.9 for the 1st year and 5.1 for the 2nd to 11th year after the effective date of value.

－ 47 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

E. Overview of Trust Beneficiary Interests
The following is an overview of the trust of individual assets of the assets held at the end of the 4th
fiscal period (name of trustee and trust period). The entry for the respective item is “－” in the case ofeach asset of which NMF has acquired the real estate itself.
Hereafter, concerning assets for which the trust period is due to expire, whether to continue the trust
or to hold the real estate itself by being issued the real estate in trust in kind upon the end of the trust will
be determined based on a comprehensive consideration of the economic rationality and other factors.
Trust period
Name of property subject to trust

Name of trustee
Date of setting

Date of expiration

Landport Urayasu

Sumitomo Mitsui Trust Bank, Limited

2007/6/29

2023/6/30

Landport Itabashi

Mitsubishi UFJ Trust and Banking Corporation

2008/1/31

2023/6/30

Landport Kawagoe

Mitsubishi UFJ Trust and Banking Corporation

2007/9/21

2023/6/30

Landport Atsugi

Sumitomo Mitsui Trust Bank, Limited

2005/12/14

2023/6/30

Sagamihara Tana Logistics Center

Sumitomo Mitsui Trust Bank, Limited

2013/4/26

2023/7/31

Sagamihara Onodai Logistics Center

Mitsubishi UFJ Trust and Banking Corporation

2003/3/31

2023/6/30

Landport Hachioji

Sumitomo Mitsui Trust Bank, Limited

2007/3/29

2023/6/30

Landport Kasukabe

Mitsubishi UFJ Trust and Banking Corporation

2009/7/29

2023/6/30

Funabashi Logistics Center

Sumitomo Mitsui Trust Bank, Limited

2005/9/29

2023/6/30

Atsugi Minami Logistics Center B Tower

Mitsubishi UFJ Trust and Banking Corporation

2006/3/30

2023/6/30

Hanyu Logistics Center

Mitsubishi UFJ Trust and Banking Corporation

2005/8/26

2023/6/30

Kawaguchi Logistics Center B Tower

Mizuho Trust & Banking Co., Ltd.

2004/1/29

2023/6/30

Kawaguchi Logistics Center A Tower

Mizuho Trust & Banking Co., Ltd.

2004/1/29

2023/6/30

Atsugi Minami Logistics Center A Tower

Mitsubishi UFJ Trust and Banking Corporation

2006/3/30

2023/6/30

Ota Nitta Logistics Center

Mitsubishi UFJ Trust and Banking Corporation

2006/12/27

2023/6/30

Ota Higashishinmachi Logistics Center

Mitsubishi UFJ Trust and Banking Corporation

2008/12/19

2023/6/30

Ota Kiyohara Logistics Center

Mitsubishi UFJ Trust and Banking Corporation

2006/12/27

2023/6/30

Chiyodamachi Logistics Center

Mitsubishi UFJ Trust and Banking Corporation

2006/9/27

2023/6/30

Morisia Tsudanuma

Sumitomo Mitsui Trust Bank, Limited

2006/8/30

2023/6/30

Yokosuka More’s City

Mitsubishi UFJ Trust and Banking Corporation

2006/5/31

2023/6/30

Recipe SHIMOKITA

－

－

－

Mitsubishi UFJ Trust and Banking Corporation

2006/9/28

2023/6/30

Mitsubishi UFJ Trust and Banking Corporation

2004/12/1

2023/6/30

EQUINIA Shinjuku

Mitsubishi UFJ Trust and Banking Corporation

2006/3/24

2023/6/30

EQUINIA Ikebukuro

Mitsubishi UFJ Trust and Banking Corporation

2003/2/14

2023/6/30

covirna machida

Sumitomo Mitsui Trust Bank, Limited

2004/6/1

2023/6/30

Nitori Makuhari

Sumitomo Mitsui Trust Bank, Limited

2008/4/24

2023/6/30

Konami Sports Club Fuchu

Mitsubishi UFJ Trust and Banking Corporation

Building：2008/9/25
Land：2009/11/27

2023/6/30

FESTA SQUARE

Sumitomo Mitsui Trust Bank, Limited

2008/10/29

2023/6/30

Kawasaki More’s

GEMS Shibuya

－

－

－

Sundai Azamino

Mitsubishi UFJ Trust and Banking Corporation

2008/11/28

2023/6/30－ 48 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

Trust period
Name of property subject to trust

Name of trustee
Date of setting

Date of expiration

EQUINIA Aobadai

Mitsubishi UFJ Trust and Banking Corporation

2002/3/27

2023/6/30

Megalos Kanagawa

－

－

－

2012/12/28

2020/12/31

Universal CityWalk Osaka

Sumitomo Mitsui Trust Bank, Limited

Izumiya Senrioka

Sumitomo Mitsui Trust Bank, Limited

2005/8/11

2023/6/30

Merad Owada

Mizuho Trust & Banking Co., Ltd.

Retail：2001/3/29
Logistics:2007/9/28

2023/6/30

Izumiya Yao

Sumitomo Mitsui Trust Bank, Limited

2005/8/11

2023/6/30

Izumiya Obayashi

Sumitomo Mitsui Trust Bank, Limited

2005/8/30

2023/6/30

Ichibancho stear

Mizuho Trust & Banking Co., Ltd.

2005/1/31

2023/6/30

EQUINIA Aobadori

Sumitomo Mitsui Trust Bank, Limited

2008/6/30

2023/6/30

Mitsubishi Motors Meguro

Mitsubishi UFJ Trust and Banking Corporation

2002/3/27

2023/6/30

Mitsubishi Motors Chofu

Mitsubishi UFJ Trust and Banking Corporation

2002/3/27

2023/6/30

Mitsubishi Motors Shibuya

Mitsubishi UFJ Trust and Banking Corporation

2004/3/31

2023/6/30

Mitsubishi Motors Nerima

Mitsubishi UFJ Trust and Banking Corporation

2002/3/27

2023/6/30

Mitsubishi Motors Kawasaki

Mitsubishi UFJ Trust and Banking Corporation

2002/3/27

2023/6/30

Mitsubishi Motors Takaido

Mitsubishi UFJ Trust and Banking Corporation

2002/3/27

2023/6/30

Mitsubishi Motors Katsushika

Mitsubishi UFJ Trust and Banking Corporation

2002/3/27

2023/6/30

Mitsubishi Motors Higashikurume

Mitsubishi UFJ Trust and Banking Corporation

2002/3/27

2023/6/30

Mitsubishi Motors Setagaya

Mitsubishi UFJ Trust and Banking Corporation

2004/3/31

2023/6/30

Mitsubishi Motors Suginami

Mitsubishi UFJ Trust and Banking Corporation

2004/3/31

2023/6/30

Mitsubishi Motors Sekimachi

Mitsubishi UFJ Trust and Banking Corporation

2002/3/27

2023/6/30

Mitsubishi Motors Higashiyamato

Mitsubishi UFJ Trust and Banking Corporation

2002/3/27

2023/6/30

Mitsubishi Motors Motosumiyoshi

Mitsubishi UFJ Trust and Banking Corporation

2002/3/27

2023/6/30

Mitsubishi Motors Kawagoe

Mitsubishi UFJ Trust and Banking Corporation

2002/3/27

2023/6/30

Mitsubishi Motors Edogawa

Mitsubishi UFJ Trust and Banking Corporation

2002/3/27

2023/6/30

Mitsubishi Motors Sayama

Mitsubishi UFJ Trust and Banking Corporation

2002/3/27

2023/6/30

2004/3/31

2023/6/30

Mitsubishi Motors
Mitsubishi UFJ Trust and Banking Corporation
Ibaraki Maintenance Center(Note) The following is a breakdown of the assets held at the end of the 4th fiscal period.
・Properties of which real estate itself is held
03 properties
・Properties of which are subject to trust
53 properties－ 49 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

F. Leasing Summary and Income/Loss Status
The status of income/loss in the 4th fiscal period is stated in accordance with “Notes Concerning
Significant Accounting Policies” in “3. Financial Statements” presented above in this report. NOI, which
stands for net operating income, refers to the amount of total operating revenue from property leasing,less total operating expenses from property leasing (excluding depreciation).
These figures do not represent or guarantee figures in the future.
Amounts are rounded down to the nearest thousand yen. Accordingly, the figures shown may notnecessarily add up to the total figure.
4th fiscal period (from September 1, 2014 to February 28, 2015)(Unit: thousand yen)
Property name
Number of business days
during the 4th fiscal period

Landport Urayasu

Landport Itabashi

Landport Kawagoe

Landport Atsugi

Sagamihara Tana
Logistics Center

181

181

181

181

181

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

③ NOI (①−②)

457,446

429,140

340,496326,570

315,355④ Depreciation

110,483

93,102

135,105

123,868

97,147⑤ Real estate rental profits (③−④)

346,963

336,037

205,390

202,701

218,207

Rental revenues
Other rental revenues① Property related revenues
Property management costs
Property management fees
Property and other taxes
Utility expenses
Casualty insurance
Repairs and maintenanceLand rents
Other rental expenses② Property related expences－ 50 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

4th fiscal period (from September 1, 2014 to February 28, 2015)(Unit: thousand yen)
Property name
Number of business days
during the 4th fiscal period

Sagamihara Onodai
Logistics Center

Landport Hachioji

Landport Kasukabe

Funabashi
Logistics Center

Atsugi Minami
Logistics Center
B Tower

181

181

181

181

181

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

③ NOI (①−②)

255,813229,345

205,577

138,676

94,567④ Depreciation

75,64078,08278,44530,60540,715⑤ Real estate rental profits (③−④)

180,173

151,262

127,131108,071

53,851

Rental revenues
Other rental revenues① Property related revenues
Property management costs
Property management fees
Property and other taxes
Utility expenses
Casualty insurance
Repairs and maintenanceLand rents
Other rental expenses② Property related expences(Unit: thousand yen)
Property name
Number of business days
during the 4th fiscal period

Hanyu
Logistics Center

Kawaguchi
Logistics Center
B Tower

Kawaguchi
Logistics Center
A Tower

Atsugi Minami
Logistics Center
A Tower

Ota Nitta
Logistics Center

181

181

181

181

181

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

③ NOI (①−②)

129,315

112,085

86,70878,025

121,881④ Depreciation

43,101

17,418

10,411

16,403

46,828⑤ Real estate rental profits (③−④)

86,213

94,66676,297

61,62175,052

Rental revenues
Other rental revenues① Property related revenues
Property management costs
Property management fees
Property and other taxes
Utility expenses
Casualty insurance
Repairs and maintenanceLand rents
Other rental expenses② Property related expences－ 51 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

4th fiscal period (from September 1, 2014 to February 28, 2015)(Unit: thousand yen)
Property name
Number of business days
during the 4th fiscal period

Ota Higashishinmachi
Logistics Center181

Ota Kiyohara
Logistics Center
181

Chiyodamachi
Logistics Center
181

Morisia Tsudanuma

Yokosuka More’s City

181

181

Rental revenues

863,345

Other rental revenues

264,835① Property related revenues(Note 1)

(Note 1)

(Note 1)

1,128,181

Property management costs

146,131

Property management fees

67,544

Property and other taxes

65,564

Utility expenses

234,362

Casualty insurance

2,703

Repairs and maintenance

57,551(Note 1)－

Land rents

69,758Other rental expenses(Note 1)

(Note 1)

(Note 1)

643,617(Note 1)

③ NOI (①−②)

76,998

22,10817,120484,563

437,378④ Depreciation

28,638

10,916

4,033

91,55046,328⑤ Real estate rental profits (③−④)

48,359

11,192

13,086

393,012

391,050② Property related expences(Unit: thousand yen)
Property name
Number of business days
during the 4th fiscal period

Recipe SHIMOKITA
181

Kawasaki More’s(Note 2)181

EQUINIA Shinjuku

EQUINIA Ikebukuro

covirna machida

181

181

181

Rental revenues

267,684

131,823

131,316

138,936

Other rental revenues

56,86522,925

17,891

28,736

154,748

149,207

167,672① Property related revenues

324,549(Note 1)

Property management costs

26,35910,653

4,729

12,677

Property management fees

3,559

5,533

3,057

2,510

Property and other taxes

15,614

17,192

8,571

9,033

Utility expenses

37,057

17,382

10,897

19,364

Casualty insurance

254

192

121

135

Repairs and maintenance

255

1,338

3,723

4,251

Land rents

－

－

－

－

7,300

6,355

1,488

7,117

Other rental expenses

90,400(Note 1)58,64832,58955,091③ NOI (①−②)

234,148

158,841

96,100116,618

112,581④ Depreciation

44,696

12,674

7,834

5,865

10,483⑤ Real estate rental profits (③−④)

189,452

146,167

88,265

110,753

102,097② Property related expences－ 52 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

4th fiscal period (from September 1, 2014 to February 28, 2015)(Unit: thousand yen)
Property name
Number of business days
during the 4th fiscal period

Konami Sports Club
Fuchu

Nitori Makuhari
181

181

FESTA SQUARE
181

GEMS Shibuya

Sundai Azamino

181

Rental revenues

79,405

Other rental revenues

19,906① Property related revenues(Note 1)

(Note 1)

(Note 1)

99,311

Property management costs

4,867

Property management fees

2,730

Property and other taxes

5,630

Utility expenses

18,301

Casualty insurance

72

Repairs and maintenance18

Land rents－

181(Note 1)

3,372

Other rental expenses(Note 1)

(Note 1)

(Note 1)

34,992(Note 1)

③ NOI (①−②)

99,674

84,07584,33464,31954,244④ Depreciation

27,84919,441

25,524

10,923

15,403⑤ Real estate rental profits (③−④)

71,82564,63358,80953,39538,840EQUINIA Aobadai

Megalos Kanagawa

Universal CityWalk
Osaka(Note 3)

181

181

152

② Property related expences(Unit: thousand yen)
Property name
Number of business days
during the 4th fiscal period
Rental revenues

70,785435,809

Other rental revenues

7,277

263,466① Property related revenues

78,062(Note 1)

699,276

Property management costs

6,252

38,608Property management fees

1,482

57,853

Property and other taxes

4,955

－

Utility expenses

7,286

119,023

Casualty insurance

101

641

Repairs and maintenance

6,859

69,673－25,1291,074

76,625Land rents
Other rental expenses

Izumiya Senrioka

Merad Owada

181

181

(Note 1)

(Note 1)28,012(Note 1)

387,555(Note 1)

(Note 1)

③ NOI (①−②)

50,05036,423

311,720

308,863

237,164④ Depreciation

5,370

5,954

157,997

53,57025,253⑤ Real estate rental profits(③−④)

44,67930,468

153,722

255,292

211,911② Property related expences－ 53 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

4th fiscal period (from September 1, 2014 to February 28, 2015)(Unit: thousand yen)
Property name
Number of business days
during the 4th fiscal period

Izumiya Yao

Izumiya Obayashi

181

Rental revenues

208,256

138,566

Other rental revenues

26,49926,518234,756

165,085

Property management costs

6,838

7,727

Property management fees

3,938

3,466

Property and other taxes

13,627

5,055

Utility expenses

23,582

14,903

Casualty insurance

200

201

Repairs and maintenance

8,283

488

－

34,767

5,119

2,514

(Note 1)181

EQUINIA Aobadori

181① Property related revenues

181

Ichibancho stear(Note 1)

Land rents
Other rental expenses

Mitsubishi Motors
Meguro181(Note 1)

(Note 1)

(Note 1)

61,58969,123(Note 1)

③ NOI (①−②)

153,769

116,410

173,166

95,962

77,539④ Depreciation

38,01013,73922,99023,144－⑤ Real estate rental profits(③−④)

115,759

102,671

150,176

72,817

77,539② Property related expences(Unit: thousand yen)
Property name
Number of business days
during the 4th fiscal period

Mitsubishi Motors
Chofu

Mitsubishi Motors
Shibuya

Mitsubishi Motors
NerimaMitsubishi Motors
Kawasaki

Mitsubishi Motors
Takaido

181

181

181

181

181

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

③ NOI (①−②)

46,493

43,20035,297

36,69822,196④ Depreciation

－

－

－

－

－

46,493

43,20035,297

36,69822,196

Rental revenues
Other rental revenues① Property related revenues
Property management costs
Property management fees
Property and other taxes
Utility expenses
Casualty insurance
Repairs and maintenanceLand rents
Other rental expenses② Property related expences⑤ Real estate rental profits(③−④)－ 54 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

4th fiscal period (from September 1, 2014 to February 28, 2015)(Unit: thousand yen)
Property name
Number of business days
during the 4th fiscal period

Mitsubishi Motors
Katsushika

Mitsubishi Motors
Higashikurume

Mitsubishi Motors
SetagayaMitsubishi Motors
Suginami

Mitsubishi Motors
Sekimachi

181

181

181

181

181

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

③ NOI (①−②)

22,24927,596

21,735

19,461

17,150④ Depreciation

－

－

－

－

－

22,24927,596

21,735

19,461

17,150Rental revenues
Other rental revenues① Property related revenues
Property management costs
Property management fees
Property and other taxes
Utility expenses
Casualty insurance
Repairs and maintenanceLand rents
Other rental expenses② Property related expences⑤ Real estate rental profits(③−④)(Unit: thousand yen)
Property name
Number of business days
during the 4th fiscal period

Mitsubishi Motors
Higashiyamato

Mitsubishi Motors
Motosumiyoshi

Mitsubishi Motors
Kawagoe

Mitsubishi Motors
Edogawa

Mitsubishi Motors
Sayama

181

181

181

181

181

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

(Note 1)

③ NOI (①−②)

21,148

10,689

11,098

5,099

7,199

④ Depreciation

－

－

－

－

－

21,148

10,689

11,098

5,099

7,199

Rental revenues
Other rental revenues① Property related revenues
Property management costs
Property management fees
Property and other taxes
Utility expenses
Casualty insurance
Repairs and maintenanceLand rents
Other rental expenses② Property related expences⑤ Real estate rental profits(③−④)－ 55 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

4th fiscal period (from September 1, 2014 to February 28, 2015)(Unit: thousand yen)
Property name
Number of business days
during the 4th fiscal period

Mitsubishi Motors
Ibaraki MaintenanceCenter181

Rental revenues
Other rental revenues① Property related revenues(Note 1)

Property management costs
Property management fees
Property and other taxes
Utility expenses
Casualty insurance
Repairs and maintenanceLand rents
Other rental expenses② Property related expences(Note 1)

③ NOI (①−②)

24,260④ Depreciation－⑤ Real estate rental profits(③−④)

24,260(Note 1)

Not disclosed, because consent has not been obtained from the tenant.

(Note 2)Compartmentalized ownership and beneficial interest in trust with its land as asset in trust has been acquired additionally on December 19, 2014.
Therefore, the numbers including additional acquisition is stated in the above talbe.

(Note 3)Acquired on September 30, 2014. Accordingly, the figures in the table are the figures for on and after the acquisition date.

－ 56 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

G. Overview of Engineering Report and Earthquake Risk Analysis
Upon acquisition of assets under management (excluding properties on land with leasehold right),
NMF entrusts a building investigation to and obtains a report of the concerned investigation(“engineering report”) from an independent outside investigator with no vested interest. The following is
the repair expenses, etc. stated in the engineering reports for each of the assets held at the end of the 4th
fiscal period. However, the content of the reports is no more than an opinion of the preparers of theengineering reports stated below and there is no guarantee as to the accuracy of the content.
In addition, the following estimated amounts are as of the date of preparation of the engineering
report and not as of the date of this report.
Furthermore, inflation rates and consumption taxes are not taken into account in the calculation of future
repair and renewal expenses.
The portfolio PML for the assets held at the end of the 4th fiscal period, excluding properties on landwith leasehold right, to total 39 properties was 2.60% and the PML for each of the assets held at the endof the 4th fiscal period is as follows. PML in the table below refers to the probable maximum loss that aproperty will experience in the assumed scheduled use period (50 years = useful life of a general building)due to an earthquake event of the assumed maximum scale (large earthquake with a probability ofoccurring once in 475 years = large earthquake with a 10% probability of occurrence in 50 years),
expressed as the estimated cost associated with restoring a property damaged in connection with such anearthquake event to its condition prior to that event as a percentage of the replacement cost associatedwith the property, based on the report prepared by Sompo Japan Nipponkoa Risk Management Inc.
Please note that, as of the date of this report, no earthquake insurance has been or is scheduled to betaken out.
Use

Preparer of engineering report

Emergency Short-term Long-term
repairrepairrepairPreparation dateexpenses
expenses
expenses(million yen) (million yen) (million yen)
(Note 1)
(Note 2)
(Note 3)

Landport Urayasu

Shimizu Corporation

February 2013

－

－

292

4.16

Landport Itabashi

Shimizu Corporation

February 2013

－

－

176

6.42

Property nameLandport Kawagoe
Landport Atsugi
Sagamihara Tana Logistics Center
Sagamihara Onodai Logistics Center
Landport Hachioji
Logistics

Landport Kasukabe
Funabashi Logistics Center
Atsugi Minami Logistics Center B Tower
Hanyu Logistics Center
Kawaguchi Logistics Center B Tower
Kawaguchi Logistics Center A Tower
Atsugi Minami Logistics Center A Tower
Ota Nitta Logistics Center

PML
(%)

Tokio Marine & Nichido
Risk Consulting Co., Ltd.
Tokio Marine & Nichido
Risk Consulting Co., Ltd.
Tokio Marine & Nichido
Risk Consulting Co., Ltd.

March 2013

－

－

310

3.73

February 2013

－

－

101

6.15

March 2013

－

－

162

4.32

Shimizu Corporation

February 2013

－

－

427

7.30

February 2013

－

－

83

5.79

February 2013

－

－

78

5.90

February 2013

－

－

425

3.40

February 2013

－

－

10

6.15

February 2013

－

－

84

2.72

February 2013

－

－

155

2.92

February 2013

－

－

193

2.92

February 2013

－

－

87

5.36

February 2013

－

－

113

1.40

Tokio Marine & Nichido
Risk Consulting Co., Ltd.
Tokio Marine & Nichido
Risk Consulting Co., Ltd.
Shimizu Corporation
Tokio Marine & Nichido
Risk Consulting Co., Ltd.
Tokio Marine & Nichido
Risk Consulting Co., Ltd.
Tokio Marine & Nichido
Risk Consulting Co., Ltd.
Tokio Marine & Nichido
Risk Consulting Co., Ltd.
Tokio Marine & Nichido
Risk Consulting Co., Ltd.
Tokio Marine & Nichido
Risk Consulting Co., Ltd.

－ 57 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

Use

Property nameOta Higashishinmachi Logistics Center
Logistics

Ota Kiyohara Logistics Center
Chiyodamachi Logistics Center
Logistics subtotal

－

56

1.35

February 2013

－

－

22

1.03

February 2013

－

－

53

3.76

－

－

－

2,835

3.03

0

－

2,540

4.70

Yokosuka More’s City

Shimizu Corporation

February 2013

－

144

814

6.89

Recipe SHIMOKITA

Tokio Marine & Nichido
Risk Consulting Co., Ltd.

September 2013

－

－

29

4.38

Kawasaki More’s

Shimizu Corporation

February 2013
December 2014

0

1

749

7.39

EQUINIA Shinjuku

Tokio Marine & Nichido
Risk Consulting Co., Ltd.

February 2013

－

－

221

5.81

EQUINIA Ikebukuro

Shimizu Corporation

February 2013

0

0

144

8.36

February 2013

－

300

120

10.85

February 2013

－

－

77

3.90

February 2013

－

－

204

2.76

February 2013

－

－

43

5.40

March 2013

－

－

14

4.18

February 2013

－

－

31

4.89

February 2013

－

－

137

9.33

February 2013

－

－

94

9.06

August 2014

－

－

434

4.42

February 2013

－

－

239

5.43

February 2013

－

－

270

3.33

February 2013

－

－

168

3.97

February 2013

－

－

236

3.89

February 2013

－

－

66

2.42

February 2013

－

－

81

1.57

FESTA SQUAREGEMS Shibuya
Sundai Azamino
EQUINIA Aobadai
Megalos Kanagawa
Universal CityWalk Osaka
Izumiya Senrioka
Merad Owada
Izumiya Yao
Izumiya Obayashi
Ichibancho stear
EQUINIA Aobadori(Note 3)－February 2013

Konami Sports Club Fuchu(Note 2)－February 2013

Tokio Marine & Nichido
Risk Consulting Co., Ltd.

Nitori Makuhari(Note 1)

Tokio Marine & Nichido
Risk Consulting Co., Ltd.
Tokio Marine & Nichido
Risk Consulting Co., Ltd.
Tokio Marine & Nichido
Risk Consulting Co., Ltd.

PML
(%)

Morisia Tsudanuma

covirna machida

RetailPreparer of engineering report

Emergency Short-term Long-term
repairrepairrepairPreparation dateexpenses
expenses
expenses(million yen) (million yen) (million yen)
(Note 1)
(Note 2)
(Note 3)

Tokio Marine & Nichido
Risk Consulting Co., Ltd.
Tokio Marine & Nichido
Risk Consulting Co., Ltd.
Tokio Marine & Nichido
Risk Consulting Co., Ltd.
Tokio Marine & Nichido
Risk Consulting Co., Ltd.
Tokio Marine & Nichido
Risk Consulting Co., Ltd.
Tokio Marine & Nichido
Risk Consulting Co., Ltd.
Shimizu Corporation
Tokio Marine & Nichido
Risk Consulting Co., Ltd.
Tokio Marine & Nichido
Risk Consulting Co., Ltd.
Tokio Marine & Nichido
Risk Consulting Co., Ltd.
Tokio Marine & Nichido
Risk Consulting Co., Ltd.
Tokio Marine & Nichido
Risk Consulting Co., Ltd.
Tokio Marine & Nichido
Risk Consulting Co., Ltd.
Tokio Marine & Nichido
Risk Consulting Co., Ltd.
Tokio Marine & Nichido
Risk Consulting Co., Ltd.

Retail subtotal

－

－

0

445

6,720

2.84

Total

－

－

0

445

9,555

2.60

Emergency repair expenses are the repair expenses for items having failures that will functionally hinder daily operations or items that are legally
instructed for improvement but are yet to be renovated (rounded down to the nearest million yen). However, for the properties that have been estimatedfor emergency repair expenses in the engineering reports stated above (Morisia Tsudanuma, Kawasaki More’s and EQUINIA Ikebukuro), the repairs forthe estimated items have been already completed as of the date of this report.
Short-term repair expenses are the repair expenses required within one year, such as for items for which early renovation is desirable due to deterioration
progressing and items for which failure is thought to arise if left unattended, other than expenses associated with standard repairs or renewal of interior
finishing and equipment (rounded down to the nearest million yen).
The estimated amount of long-term repair expenses is the sum total amount of the long-term repair expenses projection (12-year period) (rounded down
to the nearest million yen).

－ 58 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

H. Status of Capital Expenditures(i)

Schedule of Capital Expenditures
Of the scheduled amount of capital expenditures associated with renovation work, etc. planned (orcompleted) to the date of this report for the assets held at the end of the 4th fiscal period, the following
are the major capital expenditures. Please note that the scheduled construction amount below includes
the portion charged to expenses in accounting.

Name of real estate, etc.
(Location)

Scheduled construction amount(thousand yen)
Total
AmountTotalamountpaid during
amountalready
periodpaid

PurposeScheduled period

Yokosuka More’s City
(Yokosuka-shi, Kanagawa)Renwal of the exterior package
2nd phase

From May 2014
To Mar. 2015

108,005--

Landport Hachioji(Hachioji-shi, Tokyo)

Room divisional works

From Mar. 2015
To May 2015

60,000--Morisia Tsudanuma(Narashino-shi, Chiba)

Gondola update

From Jun. 2015
To Aug. 2015

25,000--Morisia Tsudanuma(Narashino-shi, Chiba)

Automated doors works

From Jan. 2016
To Feb. 2016

25,000--

Funabashi Logistics Center(Funabashi-shi, Chiba)

Restitutio in integrum works

From Mar. 2015
To Mar. 2015

23,500--(ii) Capital Expenditures During the Fiscal Period
The following is an overview of the major construction work falling under the category of capital
expenditures that were conducted during the 4th fiscal period for the assets held as of the end of the 4th
fiscal period. Capital expenditures during the 4th fiscal period were 256,859 thousand yen and, whencombined with the 258,742 thousand yen repair expenses charged to expenses during the 4th fiscal period,a total of 515,601 thousand yen in construction was implemented.
Name of real estate, etc.
(Location)

PurposeConstruction period

Construction amount(thousand yen)

Atsugi Minami Logistics Center
B Tower(Atsugi-shi, Kanagawa)

Installation of LED lighting

From Nov. 2014
To Dec. 2014

64,448Morisia Tsudanuma(Narashino-shi, Chiba)

Installation of LED lighting

From Jan. 2015
To Feb. 2015

40,521

Morisia Tsudanuma(Narashino-shi, Chiba)

Central monitoring local board update

From Oct. 2014
To Feb. 2015

15,790EQUINIA Shinjuku(Shinjuku-ku, Tokyo )Construction for office space

From Sep. 2014
To Sep. 201412,181Other Properties

Improvement of features

From Sep. 2014
To Feb. 2015

123,918
256,859

Total－ 59 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015(iii) Cash Reserved for Long-Term Repair Plans (Reserve for Repairs)
Based on long-term repair plans formed for each property, NMF sets aside the cash reserves toprovide for medium- to long-term future large-scale repairs, etc. from cash flows during the period.
However, NMF have not made cash reserve during the 1st fiscal period.
1st fiscal period
from Jan. 31, 2013
to Aug. 31, 2013
Reserve for the beginningof the period
Reserve for the current
fiscal period
Reversal of reserve forthe current fiscal period
Reserve brought forward

2nd fiscal period
from Sep. 1, 2013
to Feb. 28, 2014

(millions of Yen)
4th fiscal period
from Sep. 1, 2014
to Feb. 28, 2015

3rd fiscal period
from Mar. 1, 2014
to Aug. 31, 2014

－

－

396

1,064

－

396

667

538

－

－

－

－

－

396

1,064

1,603

I. Status of Major Tenants
The following is the leasing status of those tenants of the assets held at the end of the 4th fiscal periodof which a tenant’s leased area (in the case where a single tenant occupies several assets of the assets heldat the end of the 4th fiscal period, the sum total of the leased area thereof) at February 28, 2015 accounts
for 10% or more of the leased area of all of the assets held as of the same date.
Tenant name(Note 1)

Fukuyama
Transporting
Co., Ltd.
(Note 1)Business typeLand
transportation

Property nameLandport Urayasu
Sagamihara Onodai
Logistics Center

Annual rent

Leased area

Contract termination(Note 2)

(m2)

date

Leasehold andsecurity deposits(Note 2)Other relevant info
(contract extension
method, etc.)(Note 2)Not disclosed

34,941.45

April 30, 2019

Not disclosed

Not disclosed

Not disclosed

57,448.03

March 31, 2023

Not disclosed

Not disclosed

In the case of assets with a so-called pass-through master lease agreement where the rent received from the lessee in the master lease agreement is
the same amount as the rent that the lessee receives from the end-tenant, only the end-tenant is shown as the tenant and the master lessee is notshown as the tenant.

(Note 2)

“Annual rent,” “leasehold and security deposits” and “other relevant info (contract extension method, etc.)” are not disclosed, due to unavoidable
circumstances.

－ 60 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 4th Fiscal Period Ended February 28, 2015

J. Top 10 Tenants by Leased Area
The following are those tenants of the assets held at the end of the 4th fiscal period of which rank in
the top ten when a tenant’s leased area is expressed as a percentage of the sum total of the leased area ofthe entire portfolio as at February 28, 2015.
Tenant name

No.

Use

(Note 1)

1

Fukuyama Transporting Co., Ltd.

Logistics

2

Izumiya Co., Ltd.

RetailProperty nameLandport Urayasu
Sagamihara Onodai Logistics Center

Total leased area
(m2)

Share
(%)
(Note 2)

92,389.48

10.2

70,311.49

7.7

Izumiya Senrioka
Izumiya Yao
Izumiya Obayashi
3

Amazon Japan Logistics K.K.

Logistics

Landport Kawagoe

56,377.76

6.2

4

Neovia Logistics Services, LLC

Logistics

Sagamihara Tana Logistics Center

50,450.00

5.5

48,193.96

5.3

Ota Nitta Logistics Center

42,328.00

4.7

Total for 17 Mitsubishi Motors properties

41,136.96

4.5

5

Yokohama Okadaya Co., Ltd.

Retail6

Mitsui-Soko Logistics Co., Ltd.

Logistics

Yokosuka More’s City
Kawasaki More’s

Retail(land with

7

Not disclosed

8

ASKUL Corporation

Logistics

Landport Itabashi

37,276.71

4.1

9

Otsuka Warehouse Co., Ltd.

Logistics

Landport Urayasu

35,104.40

3.9

10

Shinkai Transport Systems, Ltd.

Logistics

Landport Hachioji

34,896.32

3.8

508,465.08

55.9

leaseholdright)

Total for top 10 tenants(Note 1)In the case of assets with a so-called pass-through master lease agreement where the rent received from the lessee in the master lease agreement is
the same amount as the rent that the lessee receives from the end-tenant, end-tenants is shown as an tenant, and lessee is not shown as an tenant.
“Tenant name” is not disclosed for some tenants, due to unavoidable circumstances.

(Note 2)

“Share” is the sum total of leased area of the respective tenant as a percentage of the sum total of leased area of the entire portfolio of assets held by
NMF at the end of this fiscal period.

K. Status of Major Properties
Not applicable.

L. Overview of Leasing to Interested Parties
Tenant name

Property name

Megalos Co., Ltd.

Megalos Kanagawa
Morisia Tsudanuma
GEMS Shibuya
Universal CityWalk Osaka

Geo Akamatsu Co., Ltd.

M. Collateral
Not applicable.

－ 61 －

Leased area(m2)
6,217.85
39,736.87
1,791.34
9,733.28