SUMMARY OF FINANCIAL RESULTS (REIT)
For the 3rd Fiscal Period Ended August 31, 2014
October 14, 2014
REIT securities issuer:
Securities code:
Representative:

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

Asset management company:
Representative:
Inquiries:

Nomura Real Estate Asset Management Co., Ltd.
Yasuaki Fukui, 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/

TEL: +81-3-3365-8767

November 28, 2014
November 19, 2014
Yes
Yes (for institutional investors and analyst)[Amounts are rounded down to the nearest million yen]

1. Financial Results for the Fiscal Period Ended August 31, 2014 (3rd period) (from March 1, 2014 to August 31,
2014)(1) Operating Results[% figures are the ratio of increase (decrease) compared with the previous period]
Operating Revenues
Period ended
August 31, 2014
February 28, 2014

million yen
9,468
9,176

Operating Profit%(3.2)(149.1)Net Income
per Unit
Period ended

million yen
4,638
5,348

Return on Unitholders’Equityyen

August 31, 2014
February 28, 2014

Ordinary Income%(△13.3)(156.0)

million yen
4,081
4,861

million yen
4,079
4,860

%
(△16.1)(288.4)

Ratio of
Ordinary Income
to Operating Revenue

Ratio of
Ordinary Income
to Total Assets

%

2,450
2,918

Net Income%(△16.1)(287.9)

%

2.5
3.0

%

1.6
1.9

43.1
53.0

(2) Distributions
Distribution
per Unit

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

yenmillion yen
4,079
4,860

Period ended
August 31, 2014
February 28, 2014

2,450
2,919

Distribution
in excess of Net
Income per Unit
yen
0
0

Total
Distributions
in Excess of
Net Income
million yen
00Distribution
Payout Ratio

Ratio ofDistributions to
Net Assets

%

%

99.9
100.0

2.5
3.0

(3) Financial Position
Total Assets
Period ended
August 31, 2014
February 28, 2014

million yen
257,040
261,582

Net Assets
million yen
165,201
165,982－ 1 －Net Assets to Total Assets

Net Assets per Unit

%
64.3
63.5

yen
99,204
99,673

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

Net Cash
Provided by (used in)Investing Activities

million yen
5,658
11,122Net Cash
Provided by (used in)
Financing Activities

million yen△1,141△11,328

Cash and
Cash Equivalents
at End of Period

million yen△8,878
4,734

million yen
16,627
20,988

2. Earnings Forecasts for the Fiscal Period Ending February 28, 2015 (4th period) (from September 1, 2014 to
February 28, 2015) and August 31, 2015 (5th period) (from March 1, 2015 to August 31, 2015)[% figures are the ratio of increase (decrease) compared with the previous period]

Operating Revenues
Period ending
February 28, 2015
August 31, 2015

million yen
9,953
10,146

Operating Profits

(%)
(5.1)
(1.9)

million yen
4,648
4,658

(%)
(0.2)
(0.2)

Distribution per Unit

Ordinary Income
million yen
4,031
4,031

(%)
(△1.2)(0.0)

Net Income
million yen
4,030
4,030

(%)
(△1.2)(0.0)

Distribution in Excess of Earnings per Unit

(excluding distribution in excess of earnings)

Period ending
February 28, 2015
August 31, 2015
(Reference) Forecast net income per unit

yen
2,420
2,420
for the fiscal period ending February 28, 2015:
for the fiscal period ending August 31, 2015:

yen––
2,420 yen
2,420 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 August 31, 2014:
1,665,260 units
As of February 28, 2014:
1,665,260 units② Number of treasury investment units
As of August 31, 2014:– units
As of February 28, 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 25.
* 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 3rd Fiscal Period Ended August 31, 2014

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 May 29, 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 May 29, 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 mainly in specified assets of real estate, etc.
and real estate backed securities 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 maininvestment targets to achieve the basic policy described above. Both types of facilities are regarded as being
essential to economic activities, with logistics 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 continued to be on a moderate recovery trend backed by various measures by
the Japanese Government and Bank of Japan despite the effect from the last-minute surge in demandassociated with the consumption tax hike and the ensuing backlash. In addition, with the gradual increasein capital investments in line with improvements in corporate earnings and steady improvement of theemployment environment, personal consumption was robust including the purchasing of homes.
Backed by expectations for improvement in real estate revenue and a favorable financing environment
with the improvement in the business sentiment as described above, there were continuous active property
acquisitions accompanying new J-REIT listings and capital increases through public offering by existing
J-REITs. The J-REIT market was also strong and marked the highest level of market capitalization as awhole.
Concerning logistics facilities market trends, supported by demand from e-commerce and internet
mail-order and the fashion/apparel industry, as well as demand from the accompanying third-party
logistics (Note 1) business expansion, supply-demand is tight and the vacancy rate of large logistics
facilities continues to be at a low level. In addition, backed by an active appetite among convenience stores
to set up stores and promotion of the omni-channel strategy (Note 2) by major retailers, the constructionof an efficient delivery network and demand for highly-functional logistics facilities are expected tocontinue.
Concerning the environment surrounding retail facilities, improvement in consumer confidence wasseen due to such factors as wage increases centering on large companies, expectation for improvement in
the income and employment environment from the improved supply-demand balance of the workforce,
etc. in addition to the Japanese economy’s upward momentum despite the temporary slowdown in
consumption caused by the consumption tax hike. According to the Ministry of Economy, Trade andIndustry’s “Current Survey of Commerce,” retail sales value has been on an improving trend after hitting
bottom in April 2014 driven by an increase in food and beverages retail. Going forward, as the rebound－ 3 －Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

from the rush demand associated with the consumption tax hike eases, a pickup in the economy isexpected amid the improving employment and income environment.
In the real estate investment market, acquisition competition for prime properties became active due toa favorable financing environment in both debt and equity as well as the number of market participants
being on the rise.
Under such circumstances, NMF acquired an equity interest in a silent partnership (tokumeikumiai)(investment amount of 500 million yen) operated by Ryoke Capital G.K. and an accompanying preferential
negotiation right to trust beneficiary interest in mainly NIPPON EXPRESS CO., LTD. North Tokyo
Distribution Center on March 25, 2014. The number of properties held by NMF (excluding an equity
interest in a silent partnership) at the end of the 3rd fiscal period was 55 properties (total acquisition priceof 238,023 million yen), investment ratio in the Greater Tokyo area accounted for 84.6% and grossleasable area was 897,406.28m2. In addition, the occupancy rate of the entire portfolio at the end of the
3rd fiscal period was stable at a high level of 99.9%.
In addition, on September 30, 2014 subsequent to the end of the 3rd fiscal period (end of August 2014),
NMF acquired a retail facility, Universal CityWalk Osaka (acquisition price of 15,500 million yen).
(Note 1) Third-party logistics (3PL) refers to logistics services outsourced by shippers for part or all of their logistics functions.
(Note 2) Omni-channel strategy refers to customer management, inventory management and delivery route consolidation across brick-and-mortar,
e-commerce and other channels, creating an environment to offer a seamless shopping experience across all sales channels.

B. Status of Fund Procurement
During the period under review, NMF refinanced existing loans of 16,500 million yen with borrowingsof 5,500 million yen and 7,000 million yen conducted on March 26, 2014 and May 26, 2014 respectively.
The difference was repaid using cash on hand. NMF entered into interest-rate swap agreements on
March 24, 2014 and on May 22, 2014 to hedge risks of interest rate fluctuations for those borrowings. As
a result, the balance of loans outstanding was 80,393 million yen and the ratio of interest-bearing
liabilities to total assets (LTV) was 31.3% at the end of the 2nd fiscal period.
The following is the rating obtained by NMF as at the end of the 3rd fiscal period. The rating is not a
rating of NMF investment units. Concerning NMF investment units, there are no credit ratings thatcredit rating agencies have provided or made available for inspection and there are no credit ratings thatcredit rating agencies are scheduled to provide or make available for inspection at the request of NMF.
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 3rd fiscal period was asfollows: operating revenue of 9,468 million yen, operating income of 4,638 million yen, ordinary incomeof 4,081 million yen and net income of 4,079 million yen.
Concerning distributions in the 3rd 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 2,450 yen.

－ 4 －Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

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, as evidenced
by such factors as the recovery in corporate earnings and pickup in capital investment leading to
improvement in the employment and income environments. The effects of the rebound from thelast-minute surge in demand in association with the consumption tax hike are also expected to graduallyease.
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, withtransaction participants showing a strong acquisition appetite backed by the favorable financial andcapital environment, 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.
③ Significant Subsequent Events
Not applicable.

－ 5 －Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

(Reference)
A. Acquisition of the asset
The Fund completed the acquisition of “Unversal CityWalk Osaka” on September 30, 2014, after theend of 3rd fiscal period (August 31, 2014).
Type of asset
Property Name
Location (Note 1)
Structure (Note 1)
Land Area (Note 1)
Building Area (Note 1)
Type ofOwnershipLand

Building
Completion Date (Note 1)
Acquisition Price (Note 2)
Date of Agreement
Date of Acquisition
Seller (Note 3)
Financing

Beneficial Interest in Real Estate Trust
Universal CityWalk Osaka(Registry)
6-429, Shimaya, Konohana-ku, Osaka-shi, Osaka, and 4 others(Street)6-2-61, Shimaya, Konohana-ku, Osaka-shi, Osaka
S/SRC, 5F
1) 8,785.43 m2 (2,657.59 tsubo), 2) 8,788.67 m2 (2,658.57 tsubo)
Total floor space of the whole building
86,888.64 m2 (26,283.81 tsubo)
Exclusive elements that NMF acquired
17,769.42 m2 (5,375.24 tsubo)
1) Ownership (co-ownership)2) Leasehold interest of the land (quasi co-ownership)Compartmentalized ownership
June, 2001
15,500 million yen
August 8, 2014 (date of execution of the purchase and sale agreement)
September 30, 2014 (date of delivery of beneficial interest in realestate)
Undisclosed
Own fund and borrowings(Note 1) “Location (registry)”, “Structure”, “Land Area”, “Builiding Area” and “Completion Date” are based on the information in the real estateregistry.
(Note 2) The Acquisition Price is the amount set forth in the relevant purchase agreement and does not include expenses such as brokers’ commission ortaxes.
(Note 3) As the Seller does not approve disclosure, this information is not disclosed.

B. Agenda Items Scheduled to be Proposed at 2nd General Meeting of Unitholders
At the 2nd General Meeting of Unitholders scheduled to be held on November 27, 2014, the agenda
items scheduled to be proposed are as follows: Selection of one Executive Director, one SubstituteExecutive Director, two Supervisory Direcotrs and one Substitute Supervisory Director; Revision inaccordance with amendment of the Investment Trust Act (establishment of new rules on investment
corporation's acquisition of its own investment equity, revision of rules for omitting public notices in the
convocation procedures for general meetings of unitholders, establishment of new rules on the record dateof voting at general meetings of unitholders, establishment of rules to enable extension, shortening of theterm of office of the executive directors and supervisory directors at a limit ruled by laws etc.); Revision to
stipulate managing assets mainly for investing in real estate and such in an aim to align with that defined in
the Ordinance for Enforcement of the Act on Investment Trusts and Investment Corporations, pursuant torevision the revision of Ordinance for Enforcement of the Act on Investment Trusts and Investment
Corporations; deletion of rules that no longer need to exist; Other partial amendments of the Articles ofIncorporation necessary from the viewpoint of aligning expressions.

－ 6 －Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

Assumptions Underlying Earnings Forecasts for the Fiscal Period Ending February 28, 2015 (4th period)and August 31, 2015 (5th period)
Item
Calculation period

Assets undermanagement

Operating revenue

Operating expenses

Non-operating expenses

Interest-bearing liabilities

Investment units

Assumption
 4th fiscal period: from September 1, 2014 to February 28, 2015
 5th fiscal period: from March 1, 2015 to August 31, 2015
 The Fund assumes that the investment portfolio consisting of 55 properties owned by
the Fund as at the end of the 3rd fiscal period (ending August 31, 2014) (the “Acquired
Properties as of the end of the 3rd fiscal period”), Ryoke Capital Godo Kaisha Silent
Partnership Equity Interest (together with the Acquired Properties as of the end of the
3rd fiscal period, “Acquired Assets as of the 3rd fiscal period”), and Universal CityWalk
Osaka (the “Acquired Assets during the 4th fiscal period”) will remain unchanged (withno assets acquired or disposed of) thereafter until the end of the 5th fiscal period(August 31, 2015).
 In practice, the investment portfolio is subject to potential change.
 The forecast of operating revenues is based upon the operating revenues from Acquired
Assets as of the end of the 3rd fiscal period and Acquired Assets during the 4th 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 3rd fiscal period are
calculated as rental expenses, estimated amount of ¥731 million for the 4th fiscal period(ending February 28, 2015), relating to the Acquired Properties as of the end of the 3rd
fiscal period and the Acquired Assets during the 4th fiscal period are ¥753 million for the
5th fiscal period (ending August 31, 2015).
 Outsourcing expenses are estimated at ¥688 million for the 4rd fiscal period (ending
February 28, 2015) and ¥617 million for the 5th fiscal period (ending August 31, 2015).
 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 ¥5,594 million for the 4rd fiscal period (ending February
28, 2015) and ¥5,650 million for the 5th fiscal period (ending August 31, 2015).
 Depreciation costs are estimated at ¥1,696 million for the 4th fiscal period (ending
February 28, 2015) and ¥1,705 million for the 5th fiscal period (ending August 31, 2015).
 The operating expenses other than the rental expenses (including asset management fees,
asset custody fees and general administration fees) are estimated at ¥945 million for the
4th fiscal period (ending February 28, 2015) and ¥992 million for the 5th fiscal period(ending August 31, 2015).
 Interest payable and other borrowing related expenses are estimated at ¥616 million for
the 4th fiscal period (ending February 28, 2015) and ¥626 million for the 5th fiscal
period (ending August 31, 2015).
 The amount of the Fund’s interest-bearing debts outstanding as of the date of thisreport is ¥97,093 million.
 Concerning the borrowings of ¥85 million, which will be due by the last business day of
the 5th fiscal period (ending August 31, 2015), the Fund assumes the scheduled
repayment of ¥85 million using cash on 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 5th fiscal period (ending
August 31, 2015).
－ 7 －Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

Item

Assumption

Distribution per unit 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.

Distribution per unit
in excess of earnings per
unit

Other

 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.

－ 8 －Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

3. Financial Statements(1) Balance Sheet
As of February 28, 2014

Thousands of Yen
As of August 31, 2014

8,271,101
12,717,717
107,910
198,092
12
163
62,36821,357,367

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

3,476,850(43,777)
3,433,073
28,859(1,564)27,294
10,917,067
93,389,065(2,038,387)
91,350,677
865,458(112,347)
753,111
11,618(248)
11,370128,699,981
23,225235,215,801

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

3,829,099
11,3893,840,489

3,828,713
12,693
3,841,406－
613,881
39,205516,126
1,169,214
240,225,504
261,582,872

487,473
614,601
39,205516,126
1,657,406
239,881,325
257,040,065

AssetsCurrent assets
Cash and bank deposits
Cash and bank deposits in trust
Rental receivables
Prepaid expenses
Deferred tax assets
Income 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
Total assets－ 9 －Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

As of February 28, 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
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*1*2－ 10 －

Thousands of Yen
As of August 31, 2014

330,137
16,500,000
85,600207,946
10,053651
179,119
1,459,897
939
18,774,345

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

67,850,200
525,160
8,451,011
76,826,372
95,600,717

80,307,400
539,430
8,445,574
89,292,405
91,838,814

161,120,405

161,120,405

4,861,749
4,861,749
165,982,154
165,982,154
261,582,872

4,080,846
4,080,846
165,201,251
165,201,251
257,040,065*2

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014(2) Statement of Income and Retained Earnings

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
Interest on refund
Other non-operating revenues
Total non-operating revenues
Non-operating expenses
Interest expenses
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

Previous period
from Sep. 1, 2013
to Feb. 28, 2014
*1
*1

8,478,425
697,965

Thousands of Yen
Current period
from Mar. 1, 2014
to Aug. 31, 2014
*1
*1

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

3,872,940
791,954
14,756
63,232
4,800
82,5794,830,263
4,638,203－
9,176,390*1－ 11 －

2,918,848
750,575
14,24864,0364,800
75,471
3,827,980
5,348,409
1,873
22,21011
24,096

1,708

398,386
108,656
3,750
510,792
4,861,713
4,861,713
868
35
904
4,860,808
940
4,861,749

443,425
114,227
1,041
558,695
4,081,230
4,081,230
1,256
(16)
1,239
4,079,991
855
4,080,846

－
13
1,722

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014(3) Statement of Changes in Net Assets
Previous period (from September 1, 2013 to February 28, 2014)

Unitholders'
capitalBalance at the beginning ofcurrent period
Changes of items during theperiodTotalunitholders'equityTotal net assets

1,251,550

1,251,550

162,371,955

162,371,955

Cash distribution paid

(1,250,610)(1,250,610)(1,250,610)(1,250,610)

Net income

4,860,808

4,860,808

4,860,808

4,860,808－

3,610,198

3,610,198

3,610,198

3,610,198*1
161,120,405

4,861,749

4,861,749

165,982,154

165,982,154

Total changes of items
during the period
Balance at the end of current
period161,120,405(Unit: thousand yen)

Unitholders' equity
SurplusRetained
Total surplus
earnings

Current period (from March 1, 2014 to August 31, 2014)

Unitholders'
capitalBalance at the beginning ofcurrent period
Changes of items during theperiodTotalunitholders'equityTotal net assets

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
period161,120,405(Unit: thousand yen)

Unitholders' equity
SurplusRetained
Total surplus
earnings－ 12 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014(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 Sep. 1, 2013
to Feb. 28, 2014

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

4,861,749,480 yen
4,860,893,940 yen[2,919 yen]
855,540 yen

4,080,846,607 yen
4,079,887,000 yen[2,450 yen]
959,607 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
4,860,893,940 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
4,079,887,000 yen. NMF will not
distribute cash in excess of earnings asprovided in Article 36, Paragraph 2 of
the Articles of Incorporation.

－ 13 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014(5) Statement of Cash Flows

Previous period
from Sep. 1, 2013
to Feb. 28, 2014
Cash flows from operating activities
Income before income taxes
Depreciation
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
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－ 14 －*1

Thousands of Yen
Current period
from Mar. 1, 2014
to Aug. 31, 2014

4,861,713
1,499,067(1,873)398,386
30,30130,8804,713,348
34,719(104)
67,549(327,789)
179,119
124,471(88,137)
11,521,651
1,873(398,990)(1,903)
11,122,630

4,081,230
1,537,049(1,708)443,425(111,532)(39,190)(10,873,920)(743,476)(5,350)(9,155)(23,225)(651,166)(2,677)(423)(511,356)
23,883(175)
14,445(78,994)
88,243－(719)－
78,312
7,575
96,40922,383(25,457)
6,087,777
1,708(428,989)(1,682)
5,658,814－－(11,364)
368,763(103,402)
49,652(200)(11,328,454)－(1,141,448)

5,000,000(5,000,000)
6,000,000(42,800)(1,222,645)
4,734,554
4,528,730
16,460,088
20,988,819－(16,500,000)
12,500,000(42,800)(4,835,718)(8,878,518)(4,361,152)
20,988,819
16,627,667*1

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

(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 partnershipincome (loss) in proportion 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. Revenue and expenses
recognition

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 previous period is 1,493 thousand yen. No
capitalized property related taxes were incurred in the fiscal period under review..

4. 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.
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.

5. 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.

－ 15 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

6. 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(Feb. 28, 2014)(Aug. 31, 2014)
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(Feb. 28, 2014)(Aug. 31, 2014)
50,000 thousand yen
50,000 thousand yen－ 16 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

(Notes to Statement of Income and Retained Earnings)*1. Breakdown of real estate rental revenues and expenses(Unit: thousand yen)
Current period
from Mar. 1, 2014
to Aug. 31, 2014

Previous period
from Sep. 1, 2013
to Feb. 28, 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

8,228,546
249,878
78,086
578,563
41,3158,478,425

8,428,399
235,542

8,663,942

697,965

73,750631,826
94,797800,373

9,176,390

337,140
152,886－
518,251
18,116
185,676
71,656
1,497,862
137,257

C. Real estate rental profits [A－B]

2,918,848
2,918,848
6,257,542

9,464,316

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

3,872,940
3,872,940
5,591,375(Notes to Statement of Changes in Net Assets)
Previous period
from Sep. 1, 2013
to Feb. 28, 2014

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

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 Sep. 1, 2013
to Feb. 28, 2014
8,271,101(Unit: thousand yen)
Current period
from Mar. 1, 2014
to Aug. 31, 2014
11,339,370

Cash and bank deposits in trust

12,717,717

5,288,296

Cash and cash equivalents

20,988,819

16,627,667

Cash and bank deposits－ 17 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

(Notes on Lease Transactions)Operating lease transactions (as lessor)
Future lease payments receivable(Unit: thousand yen)Previous period(Feb. 28, 2014)

Current period(Aug. 31, 2014)

Due within 1 year

13,530,102

12,763,044

Due after 1 year

44,418,969

41,764,248

57,949,072
411,930thousand yen

54,527,292

Total(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.

－ 18 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

2. Matters concerning fair value, etc. of financial instruments
The following are the carrying amount and fair value as of February 28, 2014, 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) Long-term debt
(6) Derivative transactions

Carrying amount(Note 1)
8,271,101
12,717,717[16,500,000][85,600][67,850,200]－

Fair value(Note 1)
8,271,101
12,717,717[16,500,000][86,550][68,906,632]－

Amount of difference
－
－
－
950
1,056,432－

The following are the carrying amount and fair value as of August 31, 2014, and the difference between these amounts.

(Unit: thousand yen)
Carrying amount
Fair value
Amount of difference(Note 1)
(Note 1)
(1) Cash and bank deposits
11,339,370
11,339,370－(2) Cash and bank deposits in trust
5,288,296
5,288,296－(3) Short-term debt－－－
(4) Current portion of long-term debt
[85,600][86,597]
997(5) Long-term debt
[80,307,400][82,146,817]
1,839,417(6) Derivative transactions－－－(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; (5) 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.
(6) 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)Type of asset

Carrying amount

Investment securities
487,473*Investment securities (ownership interests in an anonymous association) do not have a readily available market price and reasonable estimatesof 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 (Febryuary 28, 2014)(Unit: thousand yen)
Due after
Due after
Due after
Due after
Due within
1 year,2 years,
3 years,
4 years,
Due after
1 year
withinwithinwithinwithin5 years
2 years
3 years
4 years
5 years
Cash and bank deposits
8,271,101－－－－－
Cash and bank deposits in trust
12,717,717
－
－
－
－
－
Total
20,988,819
－
－
－
－
－
Amount of redemption of monetary claims scheduled to be due after the date of settlement of accounts (August 31, 2014)(Unit: thousand yen)
Due after
Due after
Due after
Due after
Due within
1 year,2 years,
3 years,
4 years,
Due after
1 year
withinwithinwithinwithin5 years
2 years
3 years
4 years
5 years
Cash and bank deposits
11,339,370
－
－
－
－
－
Cash and bank deposits in trust
5,288,296
－
－
－
－
－
Total
16,627,667
－
－
－
－
－

－ 19 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

(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(February 28, 2014)(Unit: thousand yen)
Due after
Due after
Due after
Due after
Due within
1 year,2 years,
3 years,
4 years,
Due after
1 year
withinwithinwithinwithin5 years
2 years
3 years
4 years
5 years
Short-term debt
16,500,000
－
－
－
－
－
Long-term debt
85,60085,60013,085,600
85,60016,285,600
38,307,800
Total
16,585,600
85,60013,085,600
85,60016,285,600
38,307,800
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 after
Due after
Due after
Due after
Due within
1 year,2 years,
3 years,
4 years,
Due after
1 year
withinwithinwithinwithin5 years
2 years
3 years
4 years
5 years
Short-term debt
－
－
－
－
－
－
Long-term debt
85,60085,60014,085,600
12,285,600
14,085,600
39,765,000
Total
85,60085,60014,085,600
12,285,600
14,085,600
39,765,000(Notes on securities)
Previous period (As of February 28, 2014)
Not applicable.
Current period (As of August 31, 2014)
Not applicable.

(Notes on Derivative Transactions)
1. Transactions not subject to hedge accounting
Previous period (As of February 28, 2014)
Not applicable.
Current period (As of August 31, 2014)
Not applicable.
2. Transactions subject to hedge accounting
Previous period (As of February 28, 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
59,167,900
59,125,100*
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 “(5) 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 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 “(5) 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－ 20 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

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

Previous period(Feb. 28, 2014)

Current period(Aug. 31, 2014)

12

29
132

－
12

Subtotal deferred tax assets
Valuation allowance

－
12
12

Total deferred tax assets
Net deferred tax assets(Unit: thousand yen)

161
(132)
29
29

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(Feb. 28, 2014)(Aug. 31, 2014)36.59%
36.59%
Statutory tax rate
(Adjustments)(36.58%)(36.57%)

Other

0.01%

0.01%

Effective tax rate after application of tax effect accounting

0.02%

0.03%

Deductible cash distributions(Notes on equity method income and retained earnings, etc.)

Previous period (from September 1, 2013 to February 28, 2014)
Not applicable.
Current period (from March 1, 2014 to August 31, 2014)
Not applicable.

－ 21 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

(Notes on Transactions with Related Parties)
1. Parent company and major corporate unitholders
Previous period (from September 1, 2013 to February 28, 2014)
Not applicable.
Current period (from March 1, 2014 to August 31, 2014)
Not applicable.
2. Subsidiaries and affiliates
Previous period (from September 1, 2013 to February 28, 2014)
Not applicable.
Current period (from March 1, 2014 to August 31, 2014)
Not applicable.
3. Fellow subsidiaries
Previous period (from September 1, 2013 to February 28, 2014)
Not applicable.
Current period (from March 1, 2014 to August 31, 2014)
Not applicable.
4. Directors and major individual unitholders
Previous period (from September 1, 2013 to February 28, 2014)
Not applicable.
Current period (from March 1, 2014 to August 31, 2014)
Not applicable.

－ 22 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

(Notes on asset retirement obligations)
Previous period (from September 1, 2013 to February 28, 2014)
Not applicable.
Current period (from March 1, 2014 to August 31, 2014)
Not applicable.

(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 Sep. 1, 2013
to Feb. 28, 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)

229,489,317
9,555,584
239,044,901
252,818,000(Unit: thousand yen)
Current period
from Mar. 1, 2014
to Aug. 31, 2014
239,044,901(836,981)
238,207,919
257,123,000

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 increase during previous period ismainly attributable to acquisition of Recipe SHIMOKITA (10,880,665 thousand yen) and decrease during previous period
is depreciation (1,497,812 thousand yen). The amount of decrease during current period is depreciation (1,535,675
thousand yen).
Fair value at the end of the period is the appraisal value or investigation value found by an outside real estate appraiser.

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.

－ 23 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

(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 September 1, 2013 to February 28, 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 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.

－ 24 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

(Notes on Per Unit Information)
Previous period
from Sep. 1, 2013
to Feb. 28, 2014

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

Net assets per unit

99,673 yen

99,204 yen

Net income per unit

2,918 yen

2,450 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 Sep. 1, 2013
to Feb. 28, 2014

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

4,860,808

4,079,991－－

Net income attributable to ordinary investment units (thousand yen)

4,860,808

4,079,991

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)
Not applicable.

(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 March 1, 2014 to August 31, 2014). The following is the increase (decrease) in unitholders’capital and total number of investment units issued and outstanding during the period from the date ofincorporation of NMF through the end of the current fiscal period (August 31, 2014).

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.

－ 25 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

4. Changes in Directors(1) Changes in NMF Directors
Timely disclosure of changes in directors will be made at the time that details are determined.
There were no changes in directors during the 3rd fiscal period. NMF is scheduled to propse election of
one Executive Director, one Substituite Executive Director, two Supervisory Directors, and one SubstituteSupervisory director in the 2nd General Unitholders Meeting scheduled on Novemner 27, 2014. For thedetails, please refer to “Notice of Amendments of Articles of Incorporation and Appointment of Directors”
dated October 14, 2014.
(2) Changes in Asset Management Company Directors and Statutory Auditors
Timely disclosure of changes in directors and statutory auditors will be made at the time that details are
determined.
The following is the status of directors and statutory auditors of the Asset Management Company as of thedate of this report.
Position
Representative Director,
President and Chief
Executive Officer

Name
YasuakiFukui

Brief personal history
Apr. 1976
June 1990
June 1995
June 1997
June 1998
Jan. 1999
June 2000
June 2000
Aug. 2001
Apr. 2005
Apr. 2005
Oct. 2007
Oct. 2007

Apr. 2010
June 2010
June 2010
Apr. 2012
May 2012
Oct. 2012
Apr. 2013
Oct. 2013

Apr. 2014

Nomura Securities Co., Ltd.
Head of the Syndicate & New Product & Swap Department of
Nomura Securities International, Inc. (NSI)
General Manager of the Investment Trust Department of
Nomura Securities Co., Ltd.
General Manager of the Marketing and Sales Promotion
Department
General Manager based at the Head Office
Executive Managing Director of The Nomura Fundnet Securities
Co., Ltd.
Job Categories Headquarter and Investment Trust & DC
Headquarter of Nomura Securities Co., Ltd.
Director, Job Categories Headquarter and Investment Trust &DC Headquarter
Director, Job Categories Headquarter and Investment Trust &Pension Fund Business Headquarter
President and Executive Officer of Nomura Funds Research andTechnologies Co., Ltd. (NFRT)
Chairman of Nomura Funds Research and Technologies America,
Inc. (NFRTA)
Director of Private Equity Funds Research and Investments Co.,
Ltd. (PEFRI)
President and Executive Officer of Nomura Funds Research andTechnologies Co., Ltd., and Chairman of Nomura Funds Research
and Technologies America, Inc.
Audit & Supervisory Board Member of Nomura Real Estate
Development Co., Ltd.
Audit & Supervisory Board Member of Nomura Real Estate
Holdings, Inc.
Audit & Supervisory Board Member of Megalos Co., Ltd.
Representative Director, President of Nomura Real Estate AssetManagement Co., Ltd.
Currently serves as Executive Officer, in charge of asset
management, of Nomura Real Estate Holdings, Inc.
Representative Director, President and Chief Executive Officer of
Nomura Real Estate Asset Management Co., Ltd.
Representative Director, President and Chief Executive Officer,
in charge of the Investment Performance Analysis Section
Representative Director, President and Chief Executive Officer,
in charge of the Investment Performance Analysis Section andthe Investment Management Department
Currently serves as Representative Director, President and Chief
Executive Officer－ 26 －

Number ofshares held–

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

Position
Representative Director,
Vice President andExecutive Officer
Manager of the Finance
Department, the Client
Relations & Marketing
Department, theInvestment Management
Department, and theProduct Management
Department

Name
Norio
Ambe

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

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

Oct. 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., Manager of the
Client Relations & Marketing Department, the Investment
Management Department, the New Products & Marketing
Department, and the Finance Department
Currently Serves as Representative Director, Vice President andExecutive Officer, Manager of the Finance Department, theClient Relations & Marketing Department, the Investment
Management Department, and the Product Management
Department－ 27 －

Number ofshares held–

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

Position
Representative Director,
Vice President andExecutive Officer
Manager 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
June 1997
June 1999
Apr. 2002
Apr. 2003
June 2003
Apr. 2004
July 2006
July 2010
Apr. 2012
May 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, Vice President of Nomura Real Estate
Asset Management Co., Ltd.
Representative Director, Vice President, General Manager of the
Finance & Accounting Headquarters
Representative Director, Vice President and Executive Officer,
Manager of the Fund Management Department, of theInvestment Officers, the Investment Advisory Section, theFinance Department, the Accounting Department, the Internal
Audit Department, the Compliance Department, the Corporate
Planning Department and the Business Promotion Division
Representative Director, Vice President and Executive Officer,
Manager of the Fund Management Department, of theInvestment Officers, the Finance Department, the Accounting
Department, the Internal Audit Department, the ComplianceDepartment and the Corporate Planning Department
Representative Director, Vice President and Executive Officer,
Manager 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, Vice President andExecutive Officer, Manager of the Corporate Planning
Department, the Compliance Department, the Internal Audit
Department, and the Accounting Department, and in charge of
the Investment Performance Analysis Section and Discretionary
Investment Management Section－ 28 －

Number ofshares held–

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

Position
Representative Directorand Executive Managing
OfficerName
MasaomiKatayama

Manager of theAcquisitions
Department, the NOF
Investment Management
Department, the NRF
Investment Management
Department, the NMF
Investment Management
Department, and theNPR Investment
Management
Department

Brief personal history
Apr. 1989
Apr. 2006
Apr. 2006
Apr. 2010
Apr. 2012
May 2012

Apr. 2013

In charge of the the
Research & Analysis
Section

Oct. 2013

Chief Strategy Officer
and General Manager of
the Investment
Management Planning
Section and

Apr. 2014

Oct. 2014

Director andYasuhiko

Executive Officer

FuruseIn charge of theCompliance Department
General Manager of theInternal Audit
Department

Apr. 1984
June 1995
Apr. 2003
Dec. 2009
Oct. 2012
Apr. 2014

Nomura Real Estate Development Co., Ltd.
General Manager of the Public Relations Department
General Manager of the Corporate Communications & Investor
Relations Department of Nomura Real Estate Holdings, Inc.
General Manager of the Human Resources Department of
Nomura Real Estate Development Co., Ltd.
Executive Officer, General Manager of the Human Resources
Department
Executive Officer, in charge of the Group Human Resources
Department, General Manager of the Group Human Resources
Department of Nomura Real Estate Holdings, Inc.
Representative Director and Executive Managing Officer,
Manager of the Client Relations & Marketing Department, theAsset Management Department, the Investment Management
Department and the Investment Management Planning Section
and in charge of the Acquisitions Department and the Research &Analysis Section, of Nomura Real Estate Asset Management Co.,
Ltd.
Representative Director and Executive Managing Officer,
Manager of the Client Relations & Marketing Department, theAsset Management Department and the Investment Management
Planning Section and in charge of the Acquisitions Department
and the Research & Analysis Section, Chief Strategy Officer
Representative Director and Executive Managing Officer,
Manager of the Fund Management Department, the Acquisitions
Department, the Asset Management Department and Investment
Officers, and in charge of the Investment Management Planning
Section and the Research & Analysis Section, Chief Strategy
OfficerCurrently serves as Representative Director and Executive
Managing Officer, Manager of the Acquisitions Department, theNOF Investment Management Department, the NRF Investment
Management Department, the NMF Investment Management
Department, and the NPR Investment Management Department,
and in charge of the Research & Analysis Section, Chief Strategy
Officer and General Manager of the Investment Management
Planning Section
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.
Currently serves as Director and Executive Officer, in charge of
the Compliance Department, General Manager of the Internal
Audit Department－ 29 －

Number ofshares held––

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

Position
Director andExecutive Officer

Name
Shoji
Yoshihara

General Manager of the
NOF Investment
Management
Department

Brief personal history
Apr. 1987
Apr. 2001
Apr. 2005

Apr. 2009
Apr. 2010
Oct. 2012

Jan. 2013
Oct. 2014
Director andMotomi

Executive Officer

Uki

General Manager of the
NMF Investment
Management
Department

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

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

July 2013
Apr. 2014
Oct. 2014
Director andMasatoExecutive Officer

Yamauchi

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

Apr. 1991
June 2003
Apr. 2005
Oct. 2008
Oct. 2009

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

Nomura Real Estate Development Co., Ltd.
Chief of the Development Section-I of the Development Business
Department of the Tokyo Residential Business Headquarter
Assistant General Manager and Chief of the Development
Planning Division of Development Business Department-II of
the Residential Company
General Manager of the Business Group Development
Department-III of the Residential Company
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
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
Currently serves as Director and Executive Officer, and General
Manager of the NMF Investment Management Department
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
Curretly serves as Director and Executive Officer, General
Manager of the Planing Department, the Accounting
Department , and the Finance Department－ 30 －

Number ofshares held

–

–

–

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

Position

Name

Director andSeiicchiro

Executive Officer

Wada

In charge of the ProductManagement
Department

Brief personal history
Apr. 1986
July 2008
July 2009
Apr. 2013
July 2013
Apr. 2014
Oct. 2014

Audit & Supervisory
Board Member

Takahiko
Nagaki

Apr. 1980
June 2001
Jan. 2003
Apr. 2011
Oct. 2011

Audit & Supervisory
Board Member

Tadanao
Takagoshi

Apr. 1981
June 1997
June 2002
Apr. 2006
Apr. 2007
Jan. 2009
June 2009
June 2012
Sep. 2013
Apr. 2014

Audit & Supervisory
Board Member(part-time)

Shigeaki
Yoshioka

Apr. 1979
June 1998
Apr. 2001
June 2003
Apr. 2007

Apr. 2008
June 2008
June 2008
Oct. 2011
June 2012

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
Curretly serves as Director and Executive Officer, in charge of the
Product Management Department
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.
Executive Managing Director, Assistant General Manager of theSales Headquarter of Megalos Co., Ltd.
Executive Managing Director, in charge of Sales Headquater andBusiness Development Headquater
Executive Managing Director, in charge of Sales Headquater, andGeneral Manager of the Business Development Headquater
Executive Managing Director, and General Manager of the
Administrative Headquater
Executive Managing Director, in charge of Sales Headquater, andGeneral Manager of the Business Headquater
Executive 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
Executive 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
Currently serves as 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.

－ 31 －

Number ofshares held

–

–

–

–

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

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
June 2013
June 2013
June 2013
June 2013
Apr. 2014
June 2014
June 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.

－ 32 －

Number ofshares held–

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period ended August 31, 2014

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

2nd fiscal period
3rd fiscal period
As of February 28, 2014
As of August 31, 2014
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)
14,4005.5
14,3395.6
14,4005.5
14,3395.6
115,508
44.2
114,581
44.6
6,520
2.5
6,429
2.5
122,02946.7
121,01147.1
72,39927.7
72,65028.3
23,881
9.1
23,916
9.3
6,334
2.4
6,290
2.4
102,61439.2
102,857
40.0
239,04491.4
238,207
92.7
487
0.2
22,537
8.6
18,344
7.1
261,582

100.0

2nd fiscal period
As of February 28, 2014
As a percentage
Amountof total amount(million yen)of assets (%)(Note 5)(Note 3)
Total amount of liabilities
Total amount of net assets

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)

95,60036.5

91,83835.7

165,982

63.5

165,20164.3(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.
(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.

(2) Investment Assets① Major Issue of Investment Securities
The following summarizes the investment securities held as of August 31, 2014 (end of the 3rd fiscal
period) by NMF.

－ 33 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period ended August 31, 2014

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

－

－

487

－

－

－

－

487

－

Unit priceTotal price(million yen)

Unrealized
gain/loss(million yen)

Remarks

487

－

－

487

－

－

(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 asset② 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. (55 properties) held as of August 31, 2014 (end of the 3rd
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 3rd fiscal period”). Unless otherwise stated, the figures in thetables below are the figures as of August 31, 2014.

－ 34 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

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 3rd fiscal period.
Number of properties

55
Total

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

Logistics total
Greater Tokyo area
Other areas

238,023,141（100.0）122,020,000（51.3）
115,440,000
6,580,000
116,003,141（48.7）

Retail total
Greater Tokyo area

85,847,000

Kinki area

23,816,141

Other areas

6,340,000

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

257,123,000

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

897,406.28

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

896,217.18

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

99.9

Total number of tenants (Note 6)

243

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

1,429,898

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

8,918,808(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 3rd 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 3rd 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 3rd 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－ 35 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014lease 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 August 2014 of each of the assets held at the end of the 3rd fiscal period (rounded down
to the nearest thousand yen). “Total contracted rent” for August 2014 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 August 2014 (If common-use space, etc. isleased 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 3rd 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 August 31, 2014 (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(end of 1st fiscal (end of 2nd fiscal (end of 3rd fiscal
period)period)period)Number of properties

54

55

55

Total number of tenants

241

251

243

Gross leasable area (m2)

890,795.63

897,089.54

897,406.28

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

99.8

99.8

99.9

－ 36 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

B. Price and Investment Share
The following is an overview of the assets held at the end of the 3rd fiscal period (acquisition price,
carrying amount, opinion of value at end of period, investment share and appraiser).
Use

Area

Property name17,40017,253

19,100

7.4

Landport Itabashi

15,71015,606

17,300

6.7

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

Landport Kawagoe

13,70013,502

14,600

5.7

Japan Real Estate InstituteLandport Atsugi

11,410

11,202

12,500

4.9

Sagamihara Tana Logistics Center

10,60010,877

11,300

4.4

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

Sagamihara Onodai Logistics Center

8,700

8,600

9,530

3.7

Japan Real Estate Institute

8,250

8,131

8,720

3.4

Japan Real Estate Institute

7,340

7,205

8,050

3.1

Japan Real Estate InstituteFunabashi Logistics Center

4,660

4,677

5,060

2.0

Japan Real Estate InstituteAtsugi Minami Logistics Center B Tower

4,590

4,533

4,960

1.9

Hanyu Logistics Center

3,810

3,736

4,250

1.7

Kawaguchi Logistics Center B Tower

3,750

3,743

4,150

1.6

Kawaguchi Logistics Center A Tower

2,830

2,835

3,150

1.2

Atsugi Minami Logistics Center A Tower

2,690

2,675

3,030

1.2

Ota Nitta Logistics Center

3,430

3,347

3,690

1.4

Ota Higashishinmachi Logistics Center

2,170

2,121

2,390

0.9

Ota Kiyohara Logistics Center

650

632

704

0.3

Chiyodamachi Logistics Center

330

328

356

0.1

122,020

121,011

132,840

51.7

Morisia Tsudanuma

16,60016,841

17,300

6.7

Yokosuka More’s City

13,64013,737

14,700

5.7

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

Recipe SHIMOKITA

10,407

10,814

10,600

4.1

Japan Valuers Co., Ltd.

EQUINIA Shinjuku

4,260

4,297

4,340

1.7

Kawasaki More’s

4,000

4,067

4,300

1.7

EQUINIA Ikebukuro

3,990

4,013

4,200

1.6

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

3,440

3,624

4,090

1.6

Japan Real Estate Institute

3,080

3,039

3,320

1.3

Japan Real Estate InstituteKonami Sports Club Fuchu

2,730

2,712

3,110

1.2

Daiwa Real Estate Appraisal
Co., Ltd.

FESTA SQUARE

2,600

2,562

2,810

1.1

Japan Real Estate Institute

GEMS Shibuya

2,490

2,506

2,520

1.0

Daiwa Real Estate Appraisal
Co., Ltd.

Sundai Azamino

1,700

1,678

1,820

0.7

Japan Real Estate Institute

EQUINIA Aobadai

1,560

1,571

1,720

0.7

Japan Real Estate Institute

Megalos Kanagawa

1,000

1,018

1,230

0.5

Japan Real Estate Institute

Izumiya Senrioka

8,930

8,878

10,100

3.9

Merad Owada

6,640

6,642

7,060

2.7

Izumiya Yao

4,406

4,367

4,830

1.9

Izumiya Obayashi

3,020

3,198

3,510

1.4

Other areas

Logistics subtotal

covirna machida
Greater
Nitori MakuhariTokyo area

RetailAppraiser

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)

Kinki area

－ 37 －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.
The Tanizawa Sogo Appraisal
Co., Ltd.

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

Use

Area

Property 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)Ichibancho stear

4,700

4,688

5,040

2.0

EQUINIA Aobadori

1,640

1,602

1,790

0.7

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

Mitsubishi Motors Meguro

2,740

2,764

2,810

1.1

Japan Real Estate InstituteMitsubishi Motors Chofu

1,760

1,776

1,840

0.7

Mitsubishi Motors Shibuya

1,570

1,586

1,740

0.7

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

Mitsubishi Motors Nerima

1,240

1,251

1,270

0.5

Japan Real Estate InstituteMitsubishi Motors Kawasaki

950

959

1,020

0.4

Mitsubishi Motors Takaido

850

859

898

0.3

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

800

808

816

0.3

Japan Real Estate Institute

800

808

823

0.3

Japan Real Estate Institute

770

779

784

0.3

Japan Real Estate Institute

740

748

804

0.3

The Tanizawa Sogo Appraisal
Co., Ltd.

Mitsubishi Motors Sekimachi

600

606

614

0.2

Japan Real Estate InstituteMitsubishi Motors Higashiyamato

450

455

490

0.2

The Tanizawa Sogo Appraisal
Co., Ltd.

Mitsubishi Motors Motosumiyoshi

370

375

376

0.1

Japan Real Estate InstituteMitsubishi Motors Kawagoe

350

355

361

0.1

Mitsubishi Motors Edogawa

200

204

210

0.1

Mitsubishi Motors Sayama

160

163

167

0.1

Mitsubishi Motors
Ibaraki Maintenance Center

820

829

870

0.3

Retail subtotal

116,003

117,196

124,283

48.3

Total

238,023

238,207257,123

100.0

Retail 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, 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 3rd fiscal period-end (August 31, 2014) 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 (55 properties in total). The figures arerounded to first decimal place. Accordingly, the sum total may not add up to 100.0%.

－ 38 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

C. Overview of Buildings, Etc.
The following is an overview of the buildings, etc. of the assets held at the end of the 3rd 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

4,389

46.4

3,847

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

39,624.63

39,061.04

98.6

106

1,155

12.2

839

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

6,264.31

99.5

10

320

3.4

368

March 1988

3,611.59

3,189.94

88.3

12

160

1.7

238

August 1980

14,446.48

14,446.48

100.0

1

(Note 8)(Note 8)(Note 8)EQUINIA Shinjuku

Kawasaki More’s

Shinjuku-ku,
TokyoKawasaki-shi,
Kanagawa－ 39 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

Use

Area

Greater Tokyo
area

RetailProperty nameConstruction completion

Leased area(m2)
(Note 2)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)EQUINIA Ikebukuro

Toshima-ku,
Tokyo

October 1973

2,693.93

2,693.93

100.0

14

152

1.6

234

covirna machida

Machida-shi,Tokyo

September 1981

2,891.32

2,891.32

100.0

7

168

1.8

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

94

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

2,284.41

93.0

7

81

0.9

128

Megalos Kanagawa

Yokohama-shi,
Kanagawa

May 2002

6,217.85

6,217.85

100.0

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

237

2.5

311

June 2008

4,030.37

4,030.37

100.0

19

165

1.7

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)-

1,646.97

1,646.97

100.0

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

Izumiya Senrioka

Merad Owada
Kinki area
Izumiya Yao

Izumiya Obayashi

Ichibancho stear
Other areas
EQUINIA Aobadori

Retail(land with Greater Tokyo
leaseholdarea
right)

Location

Leasable area(m2)
(Note 1)

Operating

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,

HigashiyamatoTokyo

Mitsubishi Motors

Kawasaki-shi,

Motosumiyoshi

Kanagawa

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

－ 40 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

Use

Area

Property nameGreater Tokyo
Retailarea(land withleaseholdright)
Kinki area

(Note 1)

Location

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)-

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--

286,793.30

285,604.20

99.6

220

5,074

53.6

5,071

Total

-

-

897,406.28

896,217.18

99.9

243

9,464

100.0

8,918

“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 3rd fiscal period (for the property acquired during the
3rd 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 August 31, 2014 (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.

－ 41 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

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)
4.7
4.6
19,0004.8(Note 4)4.8
4.8
17,2004.9(Note 5)Landport Urayasu

19,10019,300Landport Itabashi

17,30017,400Landport Kawagoe

14,60014,7005.2

14,400Landport Atsugi

12,50012,500

5.0

Sagamihara Tana Logistics Center

11,30011,400

Sagamihara Onodai Logistics Center

9,530

Landport Hachioji

Terminal
cap rate(%)

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

4.8

893

5.1

5.0

834

5.3

4.9

5.4

778

5.7

12,5004.9
5.1(Note 6)

5.2

629

5.5

5.2

11,300

5.1

5.5

607

5.7

9,540

5.3

9,520

4.9

5.5

525

6.0

8,720

8,760

5.2

8,670

4.9

5.4

457

5.5

Landport Kasukabe

8,050

8,110

5.1

7,990

4.7

5.4

414

5.6

Funabashi Logistics Center

5,060

5,120

5.2

4,990

4.9

5.5

289

6.2

5.3

252

5.5

Atsugi Minami Logistics Center B Tower

4,960

4,970

5.1

4,950

5.0
5.2
(Note 7)

Hanyu Logistics Center

4,250

4,280

5.9

4,240

5.7

6.1

257

6.8

Kawaguchi Logistics Center B Tower

4,150

4,170

5.2

4,140

5.0

5.4

221

5.9

Kawaguchi Logistics Center A Tower

3,150

3,150

5.5

3,150

5.3

5.7

173

6.1

Atsugi Minami Logistics Center A Tower

3,030

3,040

5.1

3,020

5.0
5.2
(Note 8)

5.3

156

5.8

Ota Nitta Logistics Center

3,690

3,700

6.4

3,690

6.2

6.6

242

7.1

Ota Higashishinmachi Logistics Center

2,390

2,400

6.3

2,380

6.1

6.5

154

7.1

Ota Kiyohara Logistics Center

704

703

6.3

704

6.1

6.5

46

7.1

Chiyodamachi Logistics Center

356

355

6.2

357

6.0

6.4

25

7.6

132,840

－

－

－

－

－

6,958

5.7

Morisia Tsudanuma

17,30016,9005.5

17,400

5.3

5.7

1,103

6.6

Yokosuka More’s City

14,70014,8005.6

14,700

5.6

5.8

881

6.5

Recipe SHIMOKITA

10,60010,700

4.3

10,400

4.1

4.5

454

4.4

EQUINIA Shinjuku

4,340

4,290

4.3

4,360

4.1

4.5

197

4.6

Kawasaki More’s

4,300

4,280

4.9

4,310

4.9

5.1

258

6.5

EQUINIA Ikebukuro

4,200

4,140

4.6

4,230

4.4

4.8

195

4.9

covirna machida

4,090

4,090

5.5

4,080

5.0

5.4

229

6.7

Nitori Makuhari

3,320

3,350

5.7

3,280

5.5

6.0

191

6.2

Konami Sports Club Fuchu

3,110

3,110

5.7

3,110

5.5

5.9

169

6.2

FESTA SQUARE

2,810

2,820

6.0

2,800

5.7

6.2

168

6.5

GEMS Shibuya

2,520

2,520

4.9

2,520

4.7

5.1

122

4.9

Sundai Azamino

1,820

1,830

5.9

1,810

5.5

6.2

108

6.4

Logistics subtotal

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

－ 42 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

Use

Property name

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

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

EQUINIA Aobadai

1,720

1,730

5.9

1,700

5.7

6.1

109

7.0

Megalos Kanagawa

1,230

1,240

6.4

1,220

6.1

6.8

84

8.4

5.9

586

6.6

Izumiya Senrioka

10,10010,000

5.7

10,2005.5
5.9(Note 9)Merad Owada

7,060

7,020

6.3

7,080

6.1

6.5

460

6.9

Izumiya Yao

4,830

4,890

6.0

4,810

5.8
6.2
(Note 10)

6.2

308

7.0

Izumiya Obayashi

3,510

3,520

6.0

3,500

5.8

6.2

230

7.6

Ichibancho stear

5,040

4,950

5.0

5,080

5.0
5.2
(Note 11)

5.2

246

5.2

EQUINIA Aobadori

1,790

1,610

5.6

1,860

5.8

5.8

100

6.1

Mitsubishi Motors Meguro

2,810

－

－

2,810

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

1,270

－

－

1,270

5.6

－

70

5.7

Mitsubishi Motors Kawasaki

1,020

－

－

1,020

6.8

7.2

73

7.7

Mitsubishi Motors Takaido

898

－

－

898

5.1

－

44

5.3

Mitsubishi Motors Katsushika

816

－

－

816

5.5

－

44

5.6

Mitsubishi Motors Higashikurume

823

－

－

823

7.0

－

55

6.9

Mitsubishi Motors Setagaya

784

－

－

784

5.6

－

43

5.7

Mitsubishi Motors Suginami

804

－

－

804

5.1

5.5

39

5.3

Mitsubishi Motors Sekimachi

614

－

－

614

5.6

－

34

5.8

Mitsubishi Motors Higashiyamato

490

－

－

490

8.3

8.7

42

9.5

Mitsubishi Motors Motosumiyoshi

376

－

－

376

6.0

－

22

6.0

Mitsubishi Motors Kawagoe

361

－

－

361

6.0

6.4

22

6.4

Mitsubishi Motors Edogawa

210

－

－

210

5.5

－

10

5.2

Mitsubishi Motors Sayama

167

－

－

167

8.6

9.0

14

9.2

Mitsubishi Motors
Ibaraki Maintenance Center

870

－

－

870

6.1

－

48

6.0

Retail subtotal

124,283

－

－

－

－

－

7,108

6.1

Total

257,123

－

－

－

－

－

14,067

5.9

RetailRetail(land withleaseholdright)(Note 1)

Terminal
cap rate(%)

NOINOI yield(million(NOI /
yen)
acquisition(Note 2)
price)(%)(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 3rd fiscal period-end (August 31, 2014) 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
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 to－ 43 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

present value according to their periods and totaled, among methods of seeking the value indicated by the income approach.
“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 constant-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.
(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 3rd fiscal
period (rounded to first decimal place).
(Note 4) The discount rate of “Landport Urayasu” is 4.7% for the 1st to 2nd year and 4.8% for the 3rd to 11th year since the effective date of value.
(Note 5) The discount rate of “Landport Itabashi” is 4.8% for the 1st to 2nd year and 4.9% for the 3rd to 11th year since the effective date of value.
(Note 6) The discount rate of “Landport Atsugi” is 4.9% for the 1st to 3rd year and 5.1% for the 4th to 11th year since the effective date of value.
(Note 7) The discount rate of “Atsugi Minami Logistics Center B Tower” is 5.0% for the 1st year and 5.2% for the 2nd to 11th year since the effective date ofvalue.
(Note 8) The discount rate of “Atsugi Minami Logistics Center A Tower” is 5.0% for the 1st to 9th year and 5.2% for the 10th to 11th year after the effective dateof value.
(Note 9) The discount rate of “Izumiya Senrioka” is 5.5% for the 1st to 9th year and 5.9% for the 10th to 11th year after the effective date of value.
(Note 10) The discount rate of “Izumiya Yao” is 5.8% for the 1st to 9th year and 6.2% for the 10th to 11th year after the effective date of value.
(Note 11) The discount rate of “Ichibancho stear” is 5.0% for the 1st year and 5.2% for the 2nd to 11th year after the effective date of value.
(Note 2)－ 44 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

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 3rd
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

－

－

－

EQUINIA Shinjuku

Mitsubishi UFJ Trust and Banking Corporation

2006/3/24

2023/6/30

Kawasaki More’s

Mitsubishi UFJ Trust and Banking Corporation

2006/9/28

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

GEMS Shibuya

－

－

－

Sundai Azamino

Mitsubishi UFJ Trust and Banking Corporation

2008/11/28

2023/6/30

EQUINIA Aobadai

Mitsubishi UFJ Trust and Banking Corporation

2002/3/27

2023/6/30－ 45 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

Trust period
Name of property subject to trust

Megalos Kanagawa

Name of trustee－

Date of setting

Date of expiration－－

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 3rd fiscal period.
・Properties of which real estate itself is held
03 properties
・Properties of which are subject to trust
52 properties－ 46 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

F. Leasing Summary and Income/Loss Status
The status of income/loss in the 3rd 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.
3rd fiscal period (from March 1, 2014 to August 31, 2014)(Unit: thousand yen)
Property name
Number of business days
during the 3rd fiscal period

Landport Urayasu

Landport Itabashi

Landport Kawagoe

Landport Atsugi

Sagamihara Tana
Logistics Center

184

184

184

184

184

(Note)(Note)(Note)(Note)(Note)(Note)(Note)(Note)(Note)(Note)③ NOI (①−②)

457,411425,502381,415332,287

314,996④ Depreciation

110,479

93,102

135,101

123,838

97,142⑤ Real estate rental profits (③−④)

346,932

332,399

246,313

208,449

217,854

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－ 47 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

3rd fiscal period (from March 1, 2014 to August 31, 2014)(Unit: thousand yen)
Property name
Number of business days
during the 3rd fiscal period

Sagamihara Onodai
Logistics Center

Landport Hachioji

Landport Kasukabe

Funabashi
Logistics Center

Atsugi Minami
Logistics Center
B Tower

184

184

184

184

184

(Note)(Note)(Note)(Note)(Note)(Note)(Note)(Note)(Note)(Note)③ NOI (①−②)

259,992

286,353

200,035

144,722

126,577④ Depreciation

75,64078,061

78,44530,17539,617⑤ Real estate rental profits (③−④)

184,351

208,291

121,589

114,546

86,959Rental 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 3rd 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

184

184

184

184

184

(Note)(Note)(Note)(Note)(Note)(Note)(Note)(Note)(Note)(Note)③ NOI (①−②)

126,958

111,342

86,24478,194

122,394④ Depreciation

43,101

17,28910,335

16,387

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

83,857

94,05375,90961,80775,565

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－ 48 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

3rd fiscal period (from March 1, 2014 to August 31, 2014)(Unit: thousand yen)
Property name
Number of business days
during the 3rd fiscal period

Ota Higashishinmachi
Logistics Center184

Ota Kiyohara
Logistics Center

Chiyodamachi
Logistics Center

184

184

Morisia Tsudanuma

Yokosuka More’s City

184

184

Rental revenues

853,809

Other rental revenues

301,659① Property related revenues(Note)(Note)(Note)

1,155,469

Property management costs

146,064

Property management fees

82,969Property and other taxes

65,568

Utility expenses

252,823

Casualty insurance

2,833

Repairs and maintenance

86,025(Note)－

Land rents

68,572Other rental expenses(Note)(Note)(Note)

704,856(Note)③ NOI (①−②)

75,57623,097

11,479450,613435,412④ Depreciation

28,638

10,916

3,985

87,92745,417⑤ Real estate rental profits (③−④)

46,937

12,1807,494

362,685

389,994② Property related expences(Unit: thousand yen)
Recipe SHIMOKITAEQUINIA Shinjuku

184

184

Rental revenues

267,736

Other rental revenues

Property name
Number of business days
during the 3rd fiscal period

Kawasaki More’s

covirna machida

184

184

136,618

134,098

139,210

53,121

24,14618,00629,532

320,857

160,764

152,105

168,742

Property management costs

26,465

10,583

4,665

12,575

Property management fees

3,274

5,444

3,650

4,015

Property and other taxes

15,61917,206

8,576

9,034

Utility expenses

41,02018,62912,433

21,840Casualty insurance

271

201

124

141

Repairs and maintenance－

12,373

2,372

12,866

Land rents

－

－

－

－

6,460

1,862

1,533

7,309

93,111

66,300(Note)

33,35867,783③ NOI (①−②)

227,746

94,463

134,832

118,747

100,959④ Depreciation

44,460

7,614

9,084

5,713

9,482

⑤ Real estate rental profits (③−④)

183,286

86,849125,747

113,033

91,477① Property related revenues

Other rental expenses② Property related expences－ 49 －

184

EQUINIA Ikebukuro(Note)

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

3rd fiscal period (from March 1, 2014 to August 31, 2014)(Unit: thousand yen)
Property name
Number of business days
during the 3rd fiscal period

Konami Sports Club
Fuchu

Nitori Makuhari
184

184

FESTA SQUAREGEMS Shibuya

184

Sundai Azamino

184

Rental revenues

75,042Other rental revenues

19,763① Property related revenues(Note)(Note)(Note)

94,806

Property management costs

4,858

Property management fees

4,401

Property and other taxes

5,633

Utility expenses

18,669Casualty insurance

76

Repairs and maintenance287

Land rents－

184(Note)

3,321

Other rental expenses(Note)(Note)(Note)

37,247(Note)③ NOI (①−②)

100,274

84,03584,31057,55854,237④ Depreciation

27,84919,441

25,524

10,923

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

72,42564,59358,785

46,63538,833② Property related expences(Unit: thousand yen)
EQUINIA Aobadai

Megalos Kanagawa

184

184

184

184

184

(Note)(Note)(Note)(Note)

27,661(Note)(Note)(Note)(Note)③ NOI (①−②)

53,77743,361

316,108

242,724

153,678④ Depreciation

5,277

5,953

53,57025,25138,010⑤ Real estate rental profits(③−④)

48,49937,408262,537

217,472

115,667

Property name
Number of business days
during the 3rd fiscal period
Rental revenues

72,397

Other rental revenues

9,041① Property related revenues

81,438Property management costs

6,397

Property management fees

2,015

Property and other taxes

4,956

Utility expenses

8,514

Casualty insurance

103

Repairs and maintenance

3,313Land rents
Other rental expenses② Property related expences

Izumiya Senrioka

Merad Owada

Izumiya Yao

－
2,360

－ 50 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

3rd fiscal period (from March 1, 2014 to August 31, 2014)(Unit: thousand yen)
Property name
Number of business days
during the 3rd fiscal period

Izumiya Obayashi

EQUINIA Aobadori

184

184

Rental revenues

209,127

138,566

Other rental revenues

28,11827,013

237,245

165,580

Property management costs

6,778

7,743

Property management fees

3,650

2,659

Property and other taxes

13,627

5,156

Utility expenses

26,702

16,328Casualty insurance

209

210

Repairs and maintenance

1,492

333

－

34,767

8,671

1,165

(Note)

61,132③ NOI (①−②)

87,292④ Depreciation⑤ Real estate rental profits(③−④)① Property related revenues

184

Ichibancho stear

Mitsubishi Motors
Chofu

184

184

(Note)(Note)

68,362(Note)(Note)

176,112

97,217

77,54146,494

13,721

22,962

23,080－－73,570153,150

74,137

77,54146,494(Note)

Land rents
Other rental expenses② Property related expences

Mitsubishi Motors
Meguro(Unit: thousand yen)
Property name
Number of business days
during the 3rd fiscal period

Mitsubishi Motors
Shibuya

Mitsubishi Motors
NerimaMitsubishi Motors
Kawasaki

Mitsubishi Motors
TakaidoMitsubishi Motors
Katsushika

184

184

184

184

184

(Note)(Note)(Note)(Note)(Note)(Note)(Note)(Note)(Note)(Note)③ NOI (①−②)

43,20135,29836,69922,19722,250④ Depreciation

－

－

－

－

－

43,20135,29836,69922,19722,250Rental 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)－ 51 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

3rd fiscal period (from March 1, 2014 to August 31, 2014)(Unit: thousand yen)
Property name
Number of business days
during the 3rd fiscal period

Mitsubishi Motors
Higashikurume

Mitsubishi Motors
SetagayaMitsubishi Motors
Suginami

Mitsubishi Motors
Sekimachi

Mitsubishi Motors
Higashiyamato

184

184

184

184

184

(Note)(Note)(Note)(Note)(Note)(Note)(Note)(Note)(Note)(Note)③ NOI (①−②)

27,597

21,735

19,461

17,15021,148④ Depreciation

－

－

－

－

－

27,597

21,735

19,461

17,15021,148

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)(Unit: thousand yen)
Property name
Number of business days
during the 3rd fiscal period

Mitsubishi Motors
Motosumiyoshi

Mitsubishi Motors
Kawagoe

Mitsubishi Motors
Edogawa

Mitsubishi Motors
SayamaMitsubishi Motors
Ibaraki
Maintenance Center

184

184

184

184

184

(Note)(Note)(Note)(Note)(Note)(Note)(Note)(Note)(Note)(Note)③ NOI (①−②)

10,689

11,098

5,099

7,199

24,226④ Depreciation

－

－

－

－

－

10,689

11,098

5,099

7,199

24,226

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)(Note)

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

－ 52 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

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 3rd
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 3rd fiscal period, excluding properties on landwith leasehold right, to total 38 properties was 2.68% and the PML for each of the assets held at the endof the 3rd 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

PML(%)(Note 4)

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

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.

－ 53 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

Use

Property nameOta Nitta Logistics Center
Ota Higashishinmachi Logistics Center
Logistics
Ota Kiyohara Logistics Center
Chiyodamachi Logistics Center
Logistics subtotal

－

113

1.40

February 2013

－

－

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

September 2013

－

－

29

4.38

February 2013

－

－

221

5.81

February 2013

0

1

731

7.39

February 2013

0

0

144

8.36

February 2013

－

300

120

10.85

February 2013

－

－

77

3.90

EQUINIA Ikebukuro
covirna machida
Nitori Makuhari

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.

Konami Sports Club Fuchu

Shimizu Corporation

February 2013

－

－

204

2.76

FESTA SQUARE

Shimizu Corporation

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

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

RetailGEMS Shibuya
Sundai Azamino
EQUINIA Aobadai
Megalos Kanagawa
Izumiya Senrioka
Merad Owada
Izumiya Yao
Izumiya Obayashi
Ichibancho stear
EQUINIA Aobadori(Note 3)－February 2013

Kawasaki More’s(Note 3)－February 2013

Tokio Marine & Nichido
Risk Consulting Co., Ltd.

EQUINIA Shinjuku(Note 2)

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.

PML(%)
(Note 4)Morisia Tsudanuma

Recipe SHIMOKITA(Note 1)

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)

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

Retail subtotal

－

－

0

445

6,268

3.06

Total

－

－

0

445

9,103

2.68

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).
With Sompo Japan Nipponkoa Risk Management Inc. having introduced new earthquake risk analysis technique, PML was updated on October 1, 2014.

－ 54 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

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 3rd 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

Renwal of the exterior package
2nd phase

From May 2014
To Mar. 2015

108,005--

Atsugi Minami Logistics Center B
Installation of LED lighting
Tower (Atsugi-shi, Kanagawa)

From Nov. 2014
To Jan. 2015

99,000--Morisia Tsudanuma(Narashino-shi, Chiba)

Installation of LED lighting

From Dec. 2014
To Feb. 2015

44,000--Morisia Tsudanuma(Narashino-shi, Chiba)

Exteriortor wall signature
installation

From Feb. 2015
To Feb. 2015

20,000--Morisia Tsudanuma(Narashino-shi, Chiba)

Renewal of the central
monitoring local board

From Sep. 2014
To Sep. 2014

16,000--

Yokosuka More’s City
(Yokosuka-shi, Kanagawa)(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 3rd fiscal period for the assets held as of the end of the 3rd
fiscal period. Capital expenditures during the 3rd fiscal period were 698,693 thousand yen and, whencombined with the 216,187 thousand yen repair expenses charged to expenses during the 3rd fiscal
period, a total of 914,881 thousand yen in construction was implemented.
Name of real estate, etc.
(Location)

Construction amount(thousand yen)

PurposeConstruction period

covirna machida(Machida-shi, Tokyo)

Renewal of the air-conditining system

From Oct. 2013
To Apr. 2014

168,622

Morisia Tsudanuma(Narashino-shi, Chiba)

Store Renewal

From Mar. 2014
To June 2014

159,244

Izumiya Obayashi(Takarazuka-shi, Hyogo)

Seismic strengthening

From Dec. 2013
To Mar. 2014

157,393

Yokosuka More’s City
(Yokosuka-shi, Kanagawa)Renwal of the exterior package 1st phase

From Apr. 2014
To Aug. 2014

97,599Other Properties

Improvement of features

From Mar. 2013
To Aug. 2014

115,834
698,693

Total－ 55 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014(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(millions of Yen)
3rd fiscal period
from Mar. 1, 2014
to Aug. 31, 2014

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

－

396

－

396

667

－

－

－

－

396

1,064

I. Status of Major Tenants
The following is the leasing status of those tenants of the assets held at the end of the 3rd 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 3rd fiscal period, the sum total of the leased area thereof) at August 31, 2014 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.

－ 56 －

Nomura Real Estate Master Fund, Inc. (3285)
Financial Results for the 3rd Fiscal Period Ended August 31, 2014

J. Top 10 Tenants by Leased Area
The following are those tenants of the assets held at the end of the 3rd 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 August 31, 2014.
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

10.3

70,311.49

7.8

Izumiya Senrioka
Izumiya Yao
Izumiya Obayashi
3

Amazon Japan Logistics K.K.

Logistics

Landport Kawagoe

56,377.76

6.3

4

Neovia Logistics Services, LLC

Logistics

Sagamihara Tana Logistics Center

50,450.00

5.6

43,830.13

4.9

Ota Nitta Logistics Center

42,328.00

4.7

Total for 17 Mitsubishi Motors properties

41,136.96

4.6

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

4.2

9

Otsuka Warehouse Co., Ltd.

Logistics

Landport Urayasu

35,104.40

3.9

10

Shinkai Transport Systems, Ltd.

Logistics

Landport Hachioji

34,896.32

3.9504,101.25

56.2

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

Geo Akamatsu Co., Ltd.

M. Collateral
Not applicable.

－ 57 －

Leased area(m2)
6,217.85
39,624.63
1,791.34