Profile
Nomura Real Estate Office Fund, Inc. (referred to as “Nomura Office Fund”
or the “Company” hereafter) was listed on the Tokyo Stock Exchange on
December 4, 2003 as a real estate investment corporation formed to own andinvest in office properties, subject to the Law Concerning Investment Trusts andInvestment Corporations of Japan. The Company’s basic investment policy is toassure stable rent revenues and steady portfolio growth over the medium- tolong-term.
Nomura Real Estate Asset Management Co., Ltd. (referred to as “NREAM”
hereafter), a wholly owned subsidiary of Nomura Real Estate Holdings, Inc. isin charge of asset management on behalf of Nomura Office Fund in accordancewith the basic investment policy as described above. Through coordination
with Nomura Real Estate Holdings, Inc. and other group companies, NREAM
aims to achieve these goals and more.

Contents
To Our Investors........................................................................................................2
Highlights of the Thirteenth Fiscal Period ..............................................................3
Management Summary of the Thirteenth Fiscal Period .......................................4
Portfolio Highlights....................................................................................................6
Financial Status..........................................................................................................8
Summary of Portfolio Properties...........................................................................10
Major Properties......................................................................................................12
Profile of the Asset Management Company.........................................................14
Performance Report................................................................................................15
Financial Section......................................................................................................33
Business Structure/Corporate Data........................................................................48
Website...................................................................................................... Back Cover

I nves t or O r i e n t e d

To Our Investors

Highlights of the Thirteenth Fiscal Period

Dear Investors,

Thirteenth period results

We are delighted to be able to present to you the financial results for the thirteenth fiscal period(ended April 30, 2010) and report on our activities during the period herein.
We booked operating revenues for this period of ¥13,686 million, current profits of ¥5,035 million,
and net income of ¥5,034 million. Cash distribution per unit was ¥16,500.
In this fiscal period, the Japanese economy started to show some signs of bottoming out,
but with lingering uncertainty about future outlook, the office leasing market remained weak.
Meanwhile, in order to maintain the occupancy rate of our portfolio, we actively engaged in tenant leasing
activities. As a result, we are successful in continuing stable fund management despite the unfavorable
market environment, with a portfolio occupancy rate of 95.0% as of the end of the thirteenth fiscal period.
In this period, we have also completed the acquisition of “NOF Nagoya Fushimi Building” (real estate
located in Naka-ku, Nagoya City with the acquisition price of ¥4.05 billion), for which the purchaseagreement was concluded in July 2008. As a result, our portfolio consists of 51 properties (total leasable
floor space: 439,139.15 m2) totaling ¥378.6 billion. The Company continues to maintain close relationships
with financial institutions, which allow the Company continued access to stable financing sources,
ensuring healthy financial conditions.
The Company will continue to strive for stable asset management in the next fiscal period andthereafter from the mid- to long-term perspectives so as to respond to the needs of our investors forhigh-quality wealth creation.
Lastly, we would like to thank you again for your patronage in the past periods, and would like to ask foryour continued support for the years to come.

Cash distribution per unit

Operating revenues¥¥

Portfolio

16,50051 properties

Number of properties

13,686 million

439,139.15

Total leasable
floor space

Operating profits¥

6,747 million

Total number of tenants

Net income¥

5,034 million

Total acquisition
price

¥

686

378,607 million

5.3 %Average occupancy rate

95.0%

Ratio of long-term debts

80.8%

Average remaining duration of
long-term fixed debts

4.0years

Ratio of fixed- rate debts

90.2%

Weighted average of interest
rate of all the debts

1.67 %NOI return of portfolio

Finance

CHANGES IN UNIT PRICE AND MARKET CAPITALIZATION
Unit Price (¥)

Market Capitalization (¥ mln)

900,000

1,600,000

Market capitalization (as of Apr. 30, 2010) .....¥ 162,020 mln
All-time high price...........................................¥ 1,560,000 per unit
All-time low price............................................¥ 407,000 per unit

1,400,000

750,000

4th public offering¥926,100

1,200,000

600,000

3rd public offering¥740,782

5th public offering¥756,560
450,000

1,000,000

800,000

Initial public offering¥500,000

300,000

150,000

600,000

Yuichi Maruko
Executive Director
Nomura Real Estate Office Fund, Inc.

2

2nd public offering¥588,0000400,000

Dec. 4
2003

Apr. 30
2004

Oct. 29
2004

Apr. 282005

Oct. 312005

Apr. 28
2006

Oct. 312006

Apr. 272007

Oct. 312007

Apr. 30
2008

Oct. 312008

Apr. 30
2009

Oct. 30
2009

Apr. 30
2010

3

Management Summary of the Thirteenth Fiscal Period
Activity summary for this period and management strategy for the future

Investment in a new property

This section describes the activities of the Company during this period and the management strategy
to be implemented in future periods based on our “Basic Management Policy” and “Mid- to Long-termManagement Strategy” below.

In the thirteenth fiscal period, we have newly acquired the “NOF Nagoya Fushimi Building” at an
acquisition price of ¥4.05 billion.

Basic Policies
Secure stable mid- to long-term income

Steady portfolio growthMid- to long-term management strategy
Promote diversification ofassets through asset size
expansion

Maintain conservative
financial strategy

This property is a newly constructed office building with anearthquake-resistance structure and other state-of-the-art facilities,
located in a prominent business district of Nagoya City. Having seen
the continued weakening in the office leasing market in Nagoya since
fall 2008 due to the economic slowdown and oversupply of officebuildings, leasing activities of enterprises started to increase in thesecond half of 2009. As a result, tenants’ interest in this property
is also increasing. Since Fushimi-dori, along which this property is
located, is the area whose position as a prominent business district isincreasingly established, high tenant demand for the property can be
expected in a long-term period.
Fushimi-Dori

Asset management withmid- to long-term vision

NOF Nagoya Fushimi Building

4

We will seek opportunities for acquiring prime
properties by actively collecting and analyzing
information about potential transactions with the aimof achieving revenue growth and stable managementof the fund through enlargement of portfolio. We will
also consider replacement of properties in the portfolio
for the purpose of improving the overall quality of theportfolio.

Asset Management• Maintained the occupancy rate at high levels throughreinforcement of tenant marketing functions (95.0% asof the end of the thirteenth period)• Avoided significant lease cancellation through flexible
negotiations with tenants (cancelled space decreased
for two consecutive fiscal periods)• Reduced rental business expenses

We will continue to work to maintain and enhancerevenue by maintaining the occupancy rate at high levels,
strengthening our capability to reach a successful rent
revision negotiation with tenants, and further reducing
leasing costs.
We also place a high priority on strategic refurbishment
and renovation that enhance the competitiveness of theproperties, thereby striving to secure sufficient revenue torealize stable cash distribution.

• Completed refinance totaling ¥22.9 billion• Issued short-term investment corporation bonds(¥6 billion)• Increased the number of lenders to 32

We will maintain close relationships with financial
institutions to keep sufficient financing capability andcontrol interest payments on interest-bearing debt
at appropriate levels. We will also continue to adopt
a conservative financial policy to realize stable cash
distribution.

• Conducted the first investor questionnaire (JanuaryFebruary 2010)*• Participated in an event targeted at individual investors(the J-REIT Fair, etc.)• Conducted IR activities targeted at domestic and foreign
institutional investors

We will actively engage in various IR activities. We will
also consider the possibility of conducting investor
questionnaire on a regular basis. We will strive toenhance our reputation by factoring the result ofcommunication with the current investors into ourfund management practices and promoting recognition
among a wide variety of investors.

* Conducted only for domestic individual investors

Line

Hori River

Asahi
ShimbunSubway Tsurumai

MisonoElementary
SchoolShimozono ParkS u b w ay
Higashiyama LineNishiki-D
ori
Nagoya Kanko
Hotel
Hirokoji-DoriHiltonNagoyaFushimi Stn.

Acquisitions• Completed the acquisition of NOF Nagoya Fushimi Bldg.
(¥4.05 billion)• Monitored market developments through property
information gathering• Maintained and secured the pipeline of promisingproperties

Financial Activities

Management strategy for the future

IR

Activity summary for this period

Nagoya Express Way Center-loop-line

Activity summary for this period and the management strategy for the future

Tokyu Inn
FukokuNagoyaMutual Life
Marunouchi
Insurance Bldg.
Nagoya Kokusai
Center Bldg.
Marunouchi Stn.
ori LineradkuSa
Subwayri
DoraBank of Japan
Saku
Mitsui Sumitomo
Insurance Nagoya
Kokusai
Bldg.
Center Stn.
NOF Nagoya Fushimi Building

Misonoza

Resona Nagoya
Bldg.

Sumitomo
Mitsui
Banking
Corporation

Location:Naka-ku, Nagoya City

Acquisition Date: December 25, 2009
Acquisition Price: ¥4,050 million

Enhancement of property competitiveness through strategic refurbishment
ExampleSapporo North Plaza

We have completed the refurbishment of standard floor elevator halls and the restroom of Sapporo North
Plaza. Their chic interior design enhances the perceived image of this property, differentiating it from otherbuildings in the neighborhood, as well as providing comfortable office space to achieve higher tenantsatisfaction. This refurbishment will deliver substantial efficiency gains in maintaining and improving the
profitability of this property in the mid- to long-term.
Elevator Hallways

Restroom

BeforeBefore

After

After
5

Portfolio Highlights

Ongoing Portfolio Growth

CHANGES IN OCCUPANCY RATE (AVERAGE)
The average occupancy rate maintained stable and high level throughout the thirteenth fiscal period.

Nomura Office Fund has invested in properties focusing on the geographic diversification and

Average occupancy rate (%)

diversification within each property in order to reduce risk of income fluctuation.

100.0

The average occupancy rate at the end of the thirteenth fiscal period: 95.0%.

90.0

Total leasable space (000m2)

95.4

95.1

94.3

94.1

93.8

93.7

95.0

500

435

435

439

439

439

439

439

450
400

80.0
70.0

CHANGES IN SIZE OF PORTFOLIO
As indicated below, diversification of the portfolio, which has steadily increased since listing.
(¥bln)
500

400

300

12bldgs

200

104.2

15bldgs

127.2

18bldgs

151.5

19bldgs

184.6

23bldgs

210.1

28bldgs

240.8

30bldgs 31bldgs

259.1

282.8

34bldgs

37bldgs

46bldgs

362.2
292.4

50bldgs

50bldgs 51bldgs

374.5 374.5

0DIVERSIFICATION BY AREA AND PROPERTY
The area and property diversification as of the end of the thirteenth fiscal period are as follows.
Area Diversification

Property Diversification (Top 10 Properties and other)

Other Cities
27.5%
Central Tokyo
57.9%
Suburban Tokyo

Other 41 Bldg.
48.3%

14.6%

Note: Central Tokyo—Six central wards consisting of Chiyoda, Chuo, Minato, Shinjuku,
Shinagawa and Shibuya
Suburban Tokyo —Other areas of Tokyo and the Surrounding three prefectures
including Kanagawa, Saitama and Chiba
Other Cities—Major regional cities in other areas
Note: Based on the acquisition price6

NOF Shiba Bldg.
2.6%
Secom Medical Bldg.
3.0%
NOF Shibuya Koen-dori Bldg.
3.2%

Tenant2

Initial Listing 1st Period 2nd Period 3rd Period 4th Period 5th Period 6th Period 7th Period 8th Period 9th Period 10th Period 11th Period 12th Period 13th Period
Dec. 2003 Apr. 30, 2004 Oct. 31, 2004 Apr. 30, 2005 Oct. 31, 2005 Apr. 30, 2006 Oct. 31, 2006 Apr. 30, 2007 Oct. 31, 2007 Apr. 30, 2008 Oct. 31, 2008 Apr. 30, 2009 Oct. 31, 2009 Apr. 30, 2010

Shinjuku Nomura Bldg.
10.2%
JAL Bldg.
8.7%
Omron Kyoto
Center Bldg.
6.3%
NOF Nihonbashi
Honcho Bldg.
5.4%
SORA Shin-Osaka 21
5.1%
Tennozu Park Side Bldg.
3.9%
NOF Shinjuku Minamiguchi Bldg.
3.2%

Nov. 30,
2009

Dec. 31,2009

Jan. 31,2010

Feb. 28,
2010

Mar. 31,2010

Apr. 30,
2010(End of 13th Period)

Top 10 tenants in the leased space as of the end of the thirteenth fiscal period are as follows.

1

100

Oct. 31,2009(End of 12th Period)

MAJOR TENANTS

378.6

317.4

350

Flagship Properties
Private Company
OMRON Corporation

Industry

Property

Expiry of contract

Leasedspace (m2)Weight in
portfolio (%)

Real Estate

JAL Bldg.

Mar. 31, 2015

42,084.11

10.1

Electronic Devices

Omron Kyoto Center Bldg.
NOF Toyo-cho Bldg.
NOF Tenjin-Minami Bldg.
Secom Medical Bldg.
NOF Sendai Aoba-dori Bldg.
JCB Sapporo Higashi Bldg.
Shinjuku Nomura Bldg.
NOF Utsunomiya Bldg.
NRE Yotsubashi Bldg.
NRE Hiroshima Bldg.
Shinjuku Nomura Bldg.
NRE Osaka Bldg.
NRE Yotsubashi Bldg.
NOF Technoport Kamata Center Bldg.
Faret Tachikawa Center Square
NOF Shin-Yokohama Bldg.
Shinjuku Nomura Bldg.
NRE Hiroshima Bldg.
NOF Surugadai Plaza Bldg.

Mar. 29, 2021
Nov. 30, 2014
Mar. 31, 2013
Feb. 28, 2025
Dec. 31, 2010
Feb. 7, 2018
May 31, 2011
Dec. 31, 2011
Nov. 30, 2011
Oct. 31, 2011
Nov. 30, 2013
Jun. 30, 2010
Nov. 30, 2013
Apr. 30, 2012
Dec. 31, 2011
Sep. 30, 2010
May 31, 2011
Feb. 28, 2012
Mar. 31, 2013

34,616.84
18,218.17
737.028,821.24
755.699,062.04
574.111,140.85
1,847.63
2,834.48
4,539.05
345.37
1,266.19
3,813.62
255.15
1,293.78
4,065.64
283.02
4,160.94

8.3
4.4
0.2
2.1
0.2
2.2
0.1
0.3
0.4
0.7
1.1
0.1
0.3
0.9
0.1
0.3
1.0
0.1
1.0

140,714.94

33.7

3

XYMAX AXISCORPORATIONReal Estate

4

SECOM Co., Ltd.

Services

5

JCB Co., Ltd.

Financing

6

Nomura Facilities Co.,Ltd.

Real Estate

7

Nomura Real Estate
Development Co., Ltd.

Real Estate

8

FUJITSU LIMITEDElectronic Devices

9

SOMPO JAPAN
INSURANCE INC.

Insurance

10

KYORIN Co., Ltd.

Wholesale

Total

DIVERSIFICATION IN TENANTS’ BUSINESSThe ratio of diversification in tenants’ business by space as of the end of the thirteenth fiscal period is as follows.

Total
686
Tenants

1. Services

19.3%

7. Real Estate

4.2%

2. IT

15.6%

8. Financing

3.5%

3. Electronics

12.8%

9. Insurance

3.2%

4. Airline

10.6%

10. Other (Public Administration, etc.)

2.3%

5. Wholesale

8.8%

11. Other 18 Businesses

15.4%

6. Retail4.4%

7

Financial Status

Carried Out Steady Refinancing

DIVERSITY OF REPAYMENT DATES (as of the end of the Thirteenth fiscal period)(¥ bln)Nomura Office Fund has the basic financial policy for the purpose of securing financial stability
and avoiding future interest rate risks. In this period, the Company completed the refinancing of

30

25
19.25

20

17.6
16.25

15

11.75

11.05

4.5

33rd
(Apr. 2020)

49th(period)(Apr. 2028)

5

Floating-rate¥18.8 billion

0.25

0

14th
(Oct. 2010)18th(Oct. 2012)

0.25

22nd
(Oct. 2014)

26th(Oct. 2016)

CHANGES IN AVERAGE DURATION OF LONG-TERM FIXED-RATE DEBTS AND
WEIGHTED AVERAGE OF INTEREST RATE OF THE DEBTS

9.8%
Fixed-rate¥173.1 billon

Long-term¥155.1 billon

5

Ratio of fixed and floating interest-bearing debts

Short-term¥36.8 billion
19.2%

6.75
5

The Company has secured financial stability through promotion of long-term, fixed-rate interest-bearing
debt to prepare for the future interest rate hikes.
Ratio of long-term and short-term interest-bearing debts

10.25
8.25

10

THE RATIO OF LONG- AND SHORT-TERM DEBT AND FIXED- AND
FLOATING-RATE DEBT (as of the end of the Thirteenth fiscal period)

90.2%

80.8%

Average debt rates

Average remaining duration of debts(year)
Note: “Fixed” includes floating-rate debts
with fixed-rates through interest-rate
swap transactions.

Note: “Short-term” includes the current
portion of long-term debt(¥mln)

LenderTotal Amountof Debt
Remaining

LenderBank of Tokyo-Mitsubishi UFJ

23,400Norinchukin Bank

3,000

Yamanashi Chuo Bank

1,500

Sumitomo Mitsui Banking Corp.

21,900

Taiyo Life Insurance

3,000

Hyakujushi Bank

1,500

Development Bank of Japan Inc.

15,750Hachijuni Bank

2,000

Chiba Bank

1,000

Mitsubishi UFJ Trust and Banking
Corp.

11,550Daido Life Insurance

2,000

Keiyo Bank

1,000

Sumitomo Trust & Banking
Corp.

10,980Chugoku Bank

2,000

Mitsui Life Insurance

1,000

Mizuho Corporate Bank

7,400

Bank of Fukuoka

2,000

Mitsui Sumitomo Insurance

1,000

The Dai-ichi Life Insurance
Company, Limited

5,000

Zenkyoren

2,000

Nippon Life Insurance
Company

1,000

Sumitomo Life Insurance
Company

5,000

Mizuho Trust & Banking

2,000

Sompo Japan Insurance Inc.

1,000

Nomura Trust and Banking

4,000

Shinkin Central Bank

2,000

The 77 Bank

1,000

Iyo Bank

3,500

Nishi-Nippon City Bank

2,000

Aozora Bank

Chuo Mitsui Trust and Banking

3,000

Hiroshima Bank

1,500

Total borrowings

145,480

Short-term Investment Corp.
Bonds

2,000

Investment Corporation Bonds

44,500Total

46,500(Reference)

3.8

4.4

Total Amountof Debt
Remaining

500

3
2

1.00

(%)
3.5

5.5

5.4

4.6

4.9

3.9

3.0

4.5

4.1

4.0

3.3

4

The number of lenders as of the end of the thirteenth fiscal period is 32 financial institutions.
Lender5.1

6
5

Total Amountof Debt
Remaining

6.0

7

LIST OF LENDERS

8Investment Corporation Bonds

22.25¥22.93 billion and outstanding interest-bearing debt as of the end of the thirteenth fiscal period is¥191.98 billion.

Debts

27.75
25.83

1.10

1.10

1.10

1.30

1.40

1.65

1.63

1.56

1.68

1.68

1.70

1.67

2.0
1.5
1.0
0.5

1
0

2.5

0.0
Apr.
2004

Oct.
2004

Apr.
2005

Oct.
2005

Apr.
2006

Oct.
2006

Apr.
2007

Oct.
2007

Apr.
2008

Oct.
2008

Apr.
2009

Oct.
Apr.
2009
2010
(End of 13th Period)

CREDIT RATINGS (as of the end of the Thirteenth fiscal period)
Rating Company

RatingOutlookRating and Investment Information, Inc.

AA-: Issuer rating

StableStandard & Poor’s Ratings Services

A:

Long-term corporate credit rating

Negative

Moody’s Investors Service, Inc.

A2:

Issuer rating

Negative9Summary of Portfolio Properties
MAP
No.

JR Chuo Line

18JR
Shinjuku-ku
Sobu Line
14
01 Shinjuku 23
1221
09
Chiyoda-ku
15 03 1607 Tokyo05
20 17
Shibuya-ku
Chuo-ku
11
22
06
10 Shibuya Minato-ku
08

22
23

37
36 38

JR

ano
Yam

ine
te L

39

Sendai40 Utsunomiya
Tokyo

Fukuoka

51

50

49

44 43
Kyoto

48
47

42 41
Nagoya46
45

Saitama27

Shin-Yokohama

31
Hachioji

30 Kichijoji

Tachikawa

Kanagawa

Name of Property

29

Location

Chiba

Shinjuku-ku, Tokyo

Ratio
(%)

2,465.86

Jun. 25, 2008

1,750

0.5

2,367.51

Jun. 25, 2008

193,983.21

778

0.2

219,208

57.9

Date Acquired

NRE Ueno Building

Taito-ku, Tokyo

4,873.20

Jan. 14, 2009

7,830

2.1

NOF Toyo-cho Building

Koto-ku, Tokyo

18,218.17

Dec. 5, 2003

7,550

2.0

26

NOF Technoport Kamata Center Building

Ota-ku, Tokyo

13,652.45

Dec. 5, 2003

6,416

1.7

27

Toho Edogawabashi Building

Bunkyo-ku, Tokyo

2,058.97

Mar. 28, 2008

2,080

0.5

28

Toshin Meguro Building

Meguro-ku, Tokyo

1,610.07

Jun. 25, 2008

1,340

0.4

29

Crystal Park Building

Musashino City, Tokyo

3,900.85

Feb. 28, 2006

3,700

1.0

30

NOF Kichijoji Honcho Building

Musashino City, Tokyo

1,936.40

Jan. 14, 2009

1,800

0.5

31

Faret Tachikawa Center Square

Tachikawa City, Tokyo

6,851.48

Dec. 5, 2003

3,290

0.9

32

NOF Kawasaki Higashiguchi Building

Kawasaki City, Kanagawa

8,266.67

Jun. 30, 2005

9,500

2.5

33

NOF Yokohama Nishiguchi Building

Yokohama City, Kanagawa

6,817.76

May 12, 2005

5,050

1.3

34

NOF Shin-Yokohama Building

Yokohama City, Kanagawa

8,074.83

Dec. 5, 2003

3,600

1.0

Yokohama Odori Koen Building

Yokohama City, Kanagawa

4,234.19

Sep. 28, 2007

35

28

80,495.04

2,993

0.8

55,149

14.6

6,820

1.8

Other Cities

25

36

Shinkiba

Sapporo North Plaza

Sapporo City, Hokkaido

13,619.76

Jun. 1, 2006

26

37

NRE Sapporo Building

Sapporo City, Hokkaido

6,559.34

Nov. 5, 2008

5,300

1.4

Kawasaki38

JCB Sappro Higashi Building

Sapporo City, Hokkaido

9,062.04

Feb. 8, 2008

3,700

1.0

32
33 Yokohama
35

Leasable Floor
Space (m2)24

Total Suburban Tokyo (12 Properties)

Acquisition Price(¥mln)

Ratio(%)

Central Tokyo

10

Sunworld Yotsuya Building

Acquisition Price(¥mln)

25

24

Tokyo

34

MAP
No.

Chuo-ku, Tokyo

Date Acquired

Suburban Tokyo

Shinagawa-ku

HiroshimaCentral Shintomicho Building

Leasable Floor
Space (m2)

SapporoShinagawaShin-Osaka

Location

Total Central Tokyo (23 Properties)

13 04
02

19

Name of Property

01

Shinjuku Nomura Building

Shinjuku-ku, Tokyo

31,500.89

Dec. 8, 2003

38,73010.2

02

JAL Building

Shinagawa-ku, Tokyo

42,084.11

Mar. 18, 2005

33,080

8.7

03

NOF Nihonbashi Honcho Building

Chuo-ku, Tokyo

19,178.72

Dec. 5, 2003

20,600

5.4

04

Tennozu Park Side Building

Shinagawa-ku,Tokyo

18,051.60

Feb. 27, 2004

14,800

3.9

05

NOF Shinjuku Minamiguchi Building

Shibuya-ku, Tokyo

6,685.52

Jun. 25, 2008

12,300

3.2

06

NOF Shibuya Koen-dori Building

Shibuya-ku, Tokyo

3,420.16

Sep. 28, 2004

12,0003.2

07

Secom Medical Building

Chiyoda-ku, Tokyo

8,821.24

Sep. 1, 2006

11,500

3.0

08

NOF Shiba Building

Minato-ku, Tokyo

8,165.10

May 25, 2004

10,0002.6

09Nishi-Shinjuku Showa Building

Shinjuku-ku, Tokyo

5,662.39

Nov. 30, 2005

8,800

2.3

10

NRE Shibuya Dogenzaka Building

Shibuya-ku, Tokyo

3,436.67

Sep. 26, 2008

7,660

2.0

11

NOF Tameike Building

Minato-ku, Tokyo

4,715.20

Sep. 29, 2005

7,400

2.0

12

Iwamoto-cho Toyo Building

Chiyoda-ku, Tokyo

4,117.26

Jun. 25, 2008

6,020

1.6

13

NOF Shinagawa Konan Building

Shinagawa-ku, Tokyo

7,667.55

Dec. 8, 2003

5,500

1.5

14

NOF Surugadai Plaza Building

Chiyoda-ku, Tokyo

4,160.94

Feb. 27, 2004

5,150

1.4

15

PMO Nihonbashi Honcho

Chuo-ku, Tokyo

2,450.06

Nov. 5, 2008

5,000

1.3

16

NRE Higashi-nihonbashi Building

Chuo-ku, Tokyo

4,554.98

Jan. 14, 2009

4,060

1.1

17

Hatchobori NF Building

Chuo-ku, Tokyo

2,854.83

Aug. 10, 2007

3,160

0.8

18

NOF Kanda Iwamoto-cho Building

Chiyoda-ku, Tokyo

4,076.38

Feb. 26, 2004

3,080

0.8

39

NOF Sendai Aoba-dori Building

Sendai City, Miyagi

6,098.91

Nov. 30, 2005

3,200

0.8

40

NOF Utsunomiya Building

Utsunomiya City, Tochigi

5,887.40

Dec. 5, 2003

2,970

0.8

41

NOF Nagoya Fushimi Building

Nagoya City, Aichi

3,282.90

Dec. 25, 2009

4,050

1.1

42

NOF Nagoya Yanagibashi Building

Nagoya City, Aichi

4,655.74

Sep. 29, 2005

3,550

0.9

43

Omron Kyoto Center Building

Kyoto City, Kyoto

34,616.84

Mar. 20, 2007

23,700

6.3

44

SORA Shin-Osaka 21

Osaka City, Osaka

21,462.47

Apr. 25, 2008

19,251

5.1

45

NRE Osaka Building

Osaka City, Osaka

16,977.79

Dec. 5, 2003

6,410

1.7

46

NRE Nishi-Umeda Building

Osaka City, Osaka

5,213.02

Sep. 26, 2008

5,660

1.5

47

NRE Yotsubashi Building

Osaka City, Osaka

11,558.68

Dec. 5, 2003

3,940

1.0

48

NOF Kobe Kaigan Building

Kobe City, Hyogo

6,425.16

Dec. 5, 2003

3,280

0.9

49

NRE Hiroshima Building

Hiroshima City, Hiroshima

7,902.21

Dec. 5, 2003

1,930

0.5

50

NOF Hakata Ekimae Building

Fukuoka City, Fukuoka

7,504.29

Jun. 27, 2008

6,750

1.8

51

NOF Tenjin-Minami Building

Fukuoka City, Fukuoka

3,834.35

Mar. 27, 2009

3,739

1.0

Total Other Cities (16 Properties)

164,660.90

104,250

27.5

Grand Total (51 Properties)

439,139.15

378,607100.0

Note: The Company owns “Secom Medical Building“, “NRE Shibuya Dogenzaka Building“, “PMO Nihonbashi Honcho“, “NRE Higashi-nihonbashi Building”, “NOF Takanawa
Building”, “NRE Ueno Building”, “Toho Edogawabashi Building”, “Crystal Park Building”, “Yokohama Odori Koen Building”, “NRE Sapporo Building”, “JCB Sapporo
Higashi Building”, “NOF Nagoya Fushimi Building”, “SORA Shin-Osaka 21” and “NRE Nishi-Umeda Building” as real estate, and other properties in the form ofbeneficial interest in real estate trusts.
Note: “Ratio” refers to the ratio of each asset based on acquisition price to the entire portfolio (total of 51 properties). As the figures in the above table have been rounded
to the first decimal place, the total may not be 100.0%.
Note: Shinjuku Nomura Building is held through the quasi co-ownership of beneficial interest in real estate trust. The Company holds 50.1% of the quasi co-ownership.
Total leasable floor space and acquisition price in the above table indicates the figures related to the quasi co-ownership.
Note: The Company transferred a part of the land of NOF Technoport Kamata Center Building (co-owned area) on August 31, 2007. The acquisition price on the list is theamount subtracting a book price of the asset to be transferred (13 million yen) from the acquisition price before the transfer (6,430 million yen). The number ofamount below unit is truncated.
Note: Names of following properties have been changed as listed. The same shall apply hereinafter.

New name

Previous nameNOF Shinjuku Minamiguchi Building

Shinjuku Sanshin Building

19

NOF Takanawa Building

Shinagawa-ku, Tokyo

3,361.48

Feb. 27, 2009

3,010

0.8

NOF Takanawa Building

MY Higashi Gotanda Building

20

Central Kyobashi Building

Chuo-ku, Tokyo

1,720.05

Jun. 25, 2008

2,550

0.7

NOF Kichijoji Honcho Building

Kichijoji Mark Building

21

NOF Minami Shinjuku Building

Shibuya-ku, Tokyo

2,464.71

Jun. 25, 2004

2,280

0.6

NOF Hakata Ekimae Building

EME Hakata Ekimae Building

Date changed

April 1, 201011

Major Properties
01

16

15

44

37

01

Shinjuku Nomura Building

44

1-26-2 Nishi-Shinjuku Shinjuku-ku, Tokyo

16

NRE Higashi-nihonbashi Building
1-1-7 Higashi-nihonbashi, Chuo-ku, Tokyo

12

SORA Shin-Osaka 21

43

15

2-1-3 Nishi-Miyahara Yodogawa-ku, Osaka City, Osaka

37

NRE Sapporo Building
2-15-1, Kitashichijyo-Nishi, Kita-ku, Sapporo City, Hokkaido

PMO Nihonbashi Honcho

07

07

4-12-20 Nihonbashi Honcho, Chuo-ku, Tokyo

43

Omron Kyoto Center Building
801 Minami Fudodo-cho, Horikawa Higashi-iru, Shiokoji-dori,Shimogyo-ku, Kyoto City, Kyoto

51

Secom Medical Building
7-7 Nibancho Chiyoda-ku, Tokyo51

NOF Tenjin-Minami Building
3-6-15 Watanabe Dori, Chuo-ku,Fukuoka City, Fukuoka

13

Profile of the Asset Management Company
Performance Report
The Company has appointed the asset management company, Nomura Real Estate AssetManagement, to provide full range of professional asset management services to the Company.
Company: Nomura Real Estate Asset Management Co., Ltd.
Capital: ¥300 million (as of April 30, 2010)
Shareholder: Nomura Real Estate Holdings, Inc. (100%)
Incorporation: January 24, 2003

Organization of the asset management company
Shareholders'Meeting
Auditors
Board of Directors

President & CEO
Internal Audit

Compliance
Committee

Compliance & Risk
Management Group

Property
Information Meeting
Valuation
Commitee

Office Management
Division
Investment
Committee

Acquisition
Group

Asset
Management
Group

Private Reit
Management Division

ResidenceManagement Division
Investment
Committee

Fund
Financial &Management Control GroupGroup

AcquisitionGroup

Investment
Committee
AssetManagement
Group

Fund
Management
Group

Financial &Control Group

Investrnent
Management
Group

Financial
PlanningGroups 3PECIALIZED IN INVESTMENT AND
MANAGEMENT OF OFFICE BUILDINGS
s 3TARTED OPERATION IN Profile of the President and General Manager
President & CEO Atsushi Ogata

Shinjuku Nomura Building

General Manager Hirotaka Furugori

Contents

Asset Management Report ................................................16
Profile of the Company . .....................................................21
Status of Investment Assets of the Company ...................23
Capital Expenditures . .........................................................26
Expenses and Liabilities .....................................................27
Trading during the Thirteenth Fiscal Period ........................30
Other Information ...............................................................32

Apr. 1987 Entered NRED
Nov. 1987 International Business Dept.
Dec. 1989 Overseas Project Dept.
Apr. 1992 Corporate Sales DivisionJun. 1995 Entrusted Sales Division
Apr. 2001 External assignment, Nomura Real Estate Urban Net Co., Ltd.
Jan. 2003 Asset Management Division
Apr. 2003 External Assignment, NREAM
Jun. 2005 Director, NREAM (current position)
Apr. 2006 General Manager, Office Management Division, NREAM
Apr. 2010 President and Chief Executive Officer, NREAM (current position)

14

Apr. 1988 Entered NRED
Jun. 1988 Mid-to-high-rise Residence Development Dept.
Jan. 1991 Residential Sales Dept.
Jun. 1994 Customer Relations Dept.
Oct. 1995 Meidaimae Branch
Apr. 1997 Human Resource Dept.
Apr. 2005 Corporate Planning Dept., NRED and external assignment, Nomura Real Estate Holdings,
Jun. 2005 Head of Investment Management & Advisory Company, NRED andExternal Assignment, Nomura Real Estate Investment Management
Oct. 2007 Head of Investment Management & Advisory Company, NRED
Apr. 2010 External Assignment, General Manager, Office Management Division, NREAM (current position)

15

Asset Management Report
1. CHANGES IN KEY INDICATORS

2. OUTLINE OF INVESTMENTS IN THE THIRTEENTH FISCAL PERIOD
13th Period
12th Period
11th Period
10th Period
9th Period
from Nov. 1, 2009 from May 1, 2009 from Nov. 1, 2008 from May 1, 2008 from Nov.1, 2007
to Apr. 30, 2010 to Oct. 31, 2009 to Apr. 30, 2009 to Oct. 31, 2008 to Apr. 30, 2008

Operating Revenues¥mln

13,686

14,203

15,40913,925

12,183of which Real Estate Rental Revenues¥mln

13,686

14,203

14,281

13,925

12,183Operating Expenses

¥mln

6,938

7,065

8,331

6,993

6,359

of which Real Estate Rental Expenses

¥mln

5,667

5,761

5,917

5,790

5,213

Operating Profits

¥mln

6,747

7,138

7,078

6,932

5,823

Current Profits

¥mln

5,035

5,339

5,393

5,256

4,500

Net Income

¥mln

5,034

5,338

5,392

5,255

4,499

Total Assets¥mln

410,127

408,312409,353

401,684

353,730(Changes from Previous Period)%(+0.4)(0.3)(+1.9)(+13.6)(+8.3)

Interest-Bearing Debts¥mln

191,980

188,730

188,730

182,100

165,700

Net Assets¥mln

190,490

190,793

190,847

190,711161,267(Changes from Previous Period)%(0.2)(0.0)(+0.1)(+18.3)(0.0)

Unitholders’ Capital¥mln

185,455

185,455

185,455

185,455

156,767

Number of Units Issued

Units305,123

305,123

305,123

305,123265,903¥624,306

625,301

625,478625,031

606,488

¥mln

5,034

5,338

5,392

5,255

4,499

Cash Distribution per Unit¥

16,50017,496

17,673

17,225

16,923of which Cash Distribution of Profits¥

16,50017,496

17,673

17,225

16,923

Net Assets per Unit
Total Cash Distributionof which Cash Distribution in excess of Profits

¥

–

–

–

–

–

ROA (Return on Assets) (Note 1)

%

1.2

1.3

1.3

1.4

1.3

Annualized ROA (Note 2)

%

2.5

2.6

2.7

2.7

2.7

ROE (Return on Equity) (Note 3)

%

2.6

2.8

2.8

2.8

2.8

Annualized ROE (Note 2)

%

5.3

5.5

5.7

5.6

5.6

Capital Adequacy Ratio (Note 4)

%

46.4

46.7

46.6

47.5

45.6

(Changes from Previous Period)%(0.3)(+0.1)(0.9)(+1.9)(3.8)LTV (Loan-to-Value) (Note 5)

%

46.8

46.2

46.1

45.3

46.8

Number of Operating Days

days

181

184

181

184

182

Payout Ratio (Note 6)

%

99.9

99.9

100.0

99.9

99.9

Number of Properties Held

bldgs

51

50

50

46

37

439,139.15

435,901.82

436,094.41

430,487.81

395,330.99

686

666

661

676

583

Total Leasable Floor Space
Number of Tenants

2mtenants

Occupancy Rate

%

95.0

95.4

96.4

97.3

97.6

Depreciation

¥mln

1,865

1,835

1,862

1,793

1,601

Capital Expenditures

¥mln

692

779

1,376

1,552

1,346

NOI (Net Operating Income) (Note 7)

¥mln

9,884

10,278

10,226

9,927

8,572

FFO (Funds from Operation) (Note 8)

¥mln

6,908

7,180

7,167

7,087

6,134

¥

22,64023,53423,48823,22823,069FFO per Unit (Note 9)

Note 1: “ROA (Return on Assets)” = Current Profits / {(Total Assets at the beginning of the period + Total Assets at the end of the period) / 2} x 100
As for the 10th period, the Total Assets were time-adjusted due to the additional issuance of investment units.
Note 2: “ROA” and “ROE” are annualized using the following number of operating days. 9th Period: 182 days, 10th Period: 184 days, 11th Period: 181 days, 12th Period: 184 days, and13th period: 181 days,.
Note 3: “ROE (Return on Equity)” = Net Income / {(Net Assets at the beginning of the period + Net Assets at the end of the period) / 2} x 100
As for the 10th period, Net Assets is time-adjusted due to the additional issuance of investment units.
Note 4: “Capital Adequacy Ratio” = Net Assets / Total Assets x 100
Note 5: “LTV (Loan-to-Value)” = Interest-Bearing Debts / Total Assets x 100
Note 6: Rounded off to the first decimal place.
Note 7: “NOI (Net Operating Income)” = Real Estate Rental Revenues – Real Estate Rental Expenses + Depreciation
Note 8: “FFO (Funds from Operation) = Net Income + Depreciation + Amortization of Investment Corporation Bonds Issuance Costs – Real Estate Sale Profit/Loss
Note 9: “FFO per Unit” = FFO / Number of Units Issued

16

Nomura Real Estate Office Fund, Inc., incorporated on August 7, 2003 under the Law Concerning Investment Trusts and Investment
Corporations of Japan, listed the unit certificates in the Real Estate Investment Trust (REIT) Market of the Tokyo Stock Exchange on
December 4, 2003 (TSE code 8959). The Company’s basic investment policy is to assure stable income from, and steady growth of,investment assets over the mid- to long-term. In accordance with this policy, we invest in properties mostly for office use in three largest
conurbations and other major cities, or in property-backed securities that are backed by such properties.
Note: The Law Concerning Investment Trusts and Investment Corporations of Japan (Law No. 198 of 1951) is referred to as the "Investment Trust Law" hereinafter.
The term “unit certificates” are the securities issued by the Company and may be referred to as “investment units” or “units” hereinafter.
The term “investment assets” refers to those assets that belong to the Company.
Unless otherwise stated, for the purpose of this report, the concept of “property(ies)” is construed to include leasehold and superficies.
The term “property(ies)” refers to those assets defined in Section 27, Paragraph 1, Article (1) and (2), and “property-backed securities” refers to those assets defined in Section 27,
Paragraph 1, Article (3) respectively of the Articles of Incorporation of the Company.
The terms “property(ies)” and “property-backed securities” are collectively referred to as “property-related assets” hereinafter.
The properties and underlying properties of the property-related assets are collectively referred to as the “investment properties”.

(1) Market Environments
During this fiscal period, driven by the growth of emerging economies, particularly China, the world economy has been on a path torecovery. The Japanese economy also started to show some signs of bottoming out including an increase in export, recovery in personal
consumption, and rebound in corporate earnings, in addition to an improvement in Financial Position DI, a component index of the Bankof Japan's Short-term Economic Survey of Enterprises (Tankan). Furthermore, the Cabinet Office in its monthly economic report for May
indicated that the business conditions started to improve. In this context, a concern for a double-dip recession seems to be subsiding.
However, there is still uncertainty about the economic outlook characterised by a number of lingering negative factors such as a highunemployment rate, continuing deflation, and turmoil in overseas markets.
(a) Office Leasing Market
The office leasing market continues to experience difficulties due to persisting cost-consciousness among tenants. However,
the occupancy rates seem to be bottoming out with the decreasing number of relocations for office consolidation purposes aspart of enterprises’ business rationalization efforts, while some tenants have started to take positive actions capitalizing on rent
declines, such as expanding office space or upgrading locations. New asking rents are nearing the bottom, as the number of leasecancellations for business rationalization purposes is decreasing and demand from tenants is increasing, driven by a recovery incorporate earnings, despite the downward tendency in renewal rents for existing tenants will continue for the time being.
(b) Real Estate Sales Market
The volume of information on properties offered for sale in this period has eventually turned to an increase from the level of theprevious period. However, information on prime properties for sale has been constrained within a limited range, and the number ofactual transactions remains low due to the pricing gap between potential sellers and buyers.
Meanwhile, some of the business companies, foreign-affiliated funds, and J-REITs restarted acquisition activities, in anticipation oftransaction prices for prime properties bottoming out. Some J-REITs have also been working on reconstruction of their portfolios,
which led to an increase in the number of transactions between J-REITs.
(2) Status of Managements for the Thirteenth Fiscal Period
To comply with the basic policy of acquiring only such properties that would generate stable cash flow over the mid- to long-term, theCompany continues to invest in properties with strong competitiveness both in terms of locations and basic building features.
In accordance with the above mentioned policy, the Company completed acquisition of NOF Nagoya Fushimi Building (Naka-ku,
Nagoya City, ¥4.05 billion, real estate). The Company’s total assets under management (“portfolio”) as of the end of the thirteenth fiscal
period (April 30, 2010) was 51 properties (total leasable floor space: 439,139.15m2) totaling ¥378.6 billion (total acquisition price).
In property management, against the backdrop of the environment described in “(1) Market Environments (a) Office Leasing
Market” above, a downward pressure on rents from tenants continued to be strong. However, the number of cancellation notices,which had been increasing until the previous period, started decreasing. The Company concentrated on the maintenance andimprovement of the occupancy rate through aggressively approaching prospective tenants and maintaining close communications withthe existing tenants. Upon renewal of lease contracts, the Company engaged in active negotiation with its tenants to minimize declines
in rent levels, while responding flexibly to the needs of each tenant, considering the deviation from the market asking-rent, the size ofleasing space, and the leasing period. As a result, the average rent for the 51 properties declined only 2.6% compared to the previous
fiscal period, and the occupancy rate remained high at 95.0% at the end of the period.
In addition, we have maintained stable profits, through securing profits by utilizing the know-how of the Nomura Real Estate Group(Note) to reduce asset management expenses, such as reviewing property management specifications for each building.
Note: “Nomura Real Estate Group” refers to a corporate group consisting of the consolidated subsidiaries of Nomura Real Estate Holdings, Inc. (referred to as Nomura Real Estate
Holdings hereinafter) including Nomura Real Estate Development Co., Ltd. (referred to as “NRED” hereinafter) but excluding Nomura Real Estate Asset Management Co., Ltd.
(referred to as the Asset Management Company hereinafter).

17

(3) Status of Funding
Concerning funding through interest-bearing debts, the Company has the basic financial policy of funding through promotion of longterm, diversified and fixed interest rate debts, for the purpose of securing financial stability and avoiding future interest rate risks. Basedon this policy, the Company has implemented funding through long-term debts and issuance of investment corporation bonds, while
establishing a total of ¥40 billion of commitment line for the purpose of flexible funding at the time of property acquisition and reductionof refinancing risks, from the perspective of securing stable funding base.
As to debts, a total of ¥22.93 billion was borrowed as a part of repayment funds for existing debts. In addition, ¥4.0 billion of shortterm investment corporation bond has issued for the payment of property acquisition. As a result, outstanding interest-bearing debt asof the end of thirteenth fiscal period was ¥191.9 billion.

[Changes in Price at the Tokyo Stock Exchange]
Changes in prices of the Company’s investment units listed on the Tokyo Stock Exchange are as follows.
13th Period
from Nov. 1, 2009
to Apr. 30, 2010

12th Period
from May 1, 2009
to Oct. 31, 2009

11th Period
from Nov. 1, 2008
to Apr. 30, 2009

10th Period
from May 1, 2008
to Oct. 31, 2008

9th Period
from Nov.1, 2007
to Apr. 30, 2008

High

(¥)

588,000

683,000

645,000

874,000

1,200,000

Low

(¥)

465,000

495,000

431,000

407,000

655,000

4. CASH DISTRIBUTION
3. STATUS OF CAPITALNo changes in the number of units issued have been made during the thirteenth fiscal period. Changes in the number of units issued andunitholders’ capital until the thirteenth fiscal period are as follows.
Date

Type of Issue

Number of Units Issued (Unit)

Unitholders’ Capital (¥ mln)

ChangeBalance

ChangeBalance

400

400

200

200

(Note 1)

Note

Aug. 7, 2003

Initial private placement

Dec. 4, 2003

Public offering

148,200

148,600

71,506

71,706(Note 2)

May 19, 2004

Public offering

35,000183,600

19,866

91,572(Note 3)

Jun. 16, 2004

Third-party allotment

1,050

184,650595

92,168(Note 4)

May 1, 2005

Public offering

44,000228,650

31,496123,665(Note 5)

May 24, 2005

Third-party allotment

1,320

229,970944

124,610(Note 6)

May 25, 2006

Public offering

34,800264,770

31,143

155,753(Note 7)

Jun. 23, 2006

Third-party allotment

1,133

265,903

1,013

156,767(Note 8)May 27, 2008

Public offering

37,000302,903

27,064

183,831(Note 9)Jun. 24, 2008

Third-party allotment

2,220

305,123

1,623

185,455(Note 10)Note 1: Initial private placement at the offer price of ¥500,000 per unit to incorporate the Company.
Note 2: Public offering at the offer price of ¥500,000 (issue price of ¥482,500) to finance acquisition of new properties.
Note 3: Public offering at the offer price of ¥588,000 (issue price of ¥567,600) to finance acquisition of new properties and to repay borrowings.
Note 4: Third-party allotment to Nomura Securities Co., Ltd. at the offer price of ¥567,600 following the public offering on May 19, 2004.
Note 5: Public offering at the offer price of ¥740,782 (issue price of ¥715,837) to finance acquisition of new properties and to repay borrowings.
Note 6: Third-party allotment to Nomura Securities Co., Ltd. at the offer price of ¥715,837 following the public offering on May 1, 2005.
Note 7: Public offering at the offer price of ¥926,100 (issue price of ¥894,915) to finance acquisition of new properties and to repay borrowings.
Note 8: Third-party allotment to Nomura Securities Co., Ltd. at the offer price of ¥894,915 following the public offering on May 25, 2006.
Note 9: Public offering at the offer price of ¥756,560 (issue price of ¥731,470) to redeem the short-term investment corporation bonds and to repay short-term borrowings.
Note 10: Third-party allotment to Nomura Securities Co., Ltd. at the offer price of ¥731,470 following the public offering on May 27, 2008.

In order to qualify for special tax treatment under Article 67-15 of the Special Taxation Measures Law (Law No. 26 of 1957) to havemaximum cash distribution amount treated as deductible dividends, the Company distributed the entire unappropriated retained earnings
except for fractional amounts smaller than one yen per each investment unit. As a result, the amount of cash distribution per unit for thisfiscal period was ¥16,500.
13th Period
from Nov. 1, 2009
to Apr. 30, 2010

12th Period
from May 1, 2009
to Oct. 31, 2009

11th Period
from Nov. 1, 2008
to Apr. 30, 2009

10th Period
from May 1, 2008
to Oct. 31, 2008

9th Period
from Nov.1, 2007
to Apr. 30, 2008

5,034,679

5,338,534

5,392,502

5,255,922

4,500,000

Retained Earnings(¥000)

Accumulated earnings(¥000)

149

102

64

178

124

Total cash distribution(¥000)

5,034,529

5,338,432

5,392,438

5,255,743

4,499,876(¥)(16,500)(17,496)(17,673)(17,225)(16,923)of which distribution of profits(¥000)

5,034,529

5,338,432

5,392,438

5,255,743

4,499,876(Distribution of profits per unit)(¥)(16,500)(17,496)(17,673)(17,225)(16,923)(Cash distribution per unit)of which refund of capital(¥000)

–

–

–

–

–

(Refund of capital per unit)

(¥)

(–)

(–)

(–)

(–)

(–)

5. INVESTMENT POLICY AND FUTURE ISSUES(1) Investment Environments
Although there are increasing signs of recovery, with lingering uncertainty about future outlook against the backdrop of weak stock
prices and the strong yen, the Japanese economy is expected to search for the timing of bottoming out and recovery amid the global
economic downturn.
Under these circumstances, we believe that it is important to continue to focus on the maintenance of funding capacities throughconservative financial management, and flexible property management that minimizes the decrease in portfolio profitability under thecurrent weak office leasing market, while paying close attention to movements in expected yield and property liquidity in the real estate
investment market.
(2) Investment Policy and Future Issues
With such environments in mind, the Company will employ the following investment policies to ensure stable income from, and steady
growth of the portfolio over the mid- to long-term.
(a) Property Management in a Mid- to Long-Term View
In addition to enhancement of property management to satisfy the requirements of existing tenants, proper recognition of theproperty features and market environments will help us market the potential tenants more organically. We will maintain and uplift theoccupancy rate and level of rents in pursuit of sustainable and improved profitability of portfolio, namely internal growth of portfolio,
over the mid- to long-term.
By putting the know-how of Nomura Real Estate Group together, we seek to design the most suitable specifications of how tomanage and maintain each property in the most effective way, which in turn will ensure stable inflow of revenues.
In order to ensure stable revenues over the mid- to long-term, we will carry out strategic refurbishment and renovation works tomaintain and/or improve features of the properties, establishing their uniqueness and increasing their competitiveness.
(b) Enlargement of Portfolio by Acquisition of New Properties
The Company has set in motion several strategic measures; that is, targeting the expansion of asset size up to ¥500 billion in
the medium term in order to achieve higher revenue (i.e. external growth); replacing our property portfolio to enhance its quality;
ensuring the portfolio is well-balanced and diversified to minimize fluctuation risks in revenue; and maximizing the advantage of scale
to reduce operational and administration costs.
In order for us to make right investments in properties of good value, we will ensure to collect information on properties forsale in an early stage, and conduct an in-depth due diligence to assess the potential risks involved in such investments. As part of18

19

Profile of the Company
our efforts to carry out this investment policy, we will work to find investment opportunities through further expansion of our own
sourcing network as well as cooperation with other companies of Nomura Real Estate Group, and to make appropriate investment
decisions based on our market research capabilities and technical expertise.
In making an investment decision, we adhere to strict criteria to select best properties that can bring stable revenues to theentire portfolio in light of mid- and long-term perspectives.
(c) Continuation of Conservative Financial Policy
In order to assure stable financing capability and increase creditworthiness in the market over the mid- to long-term, we will pay
particular attention to debt finance. We will seek to continuously keep the LTV low by using more long-term funding at fixed-rates,
diversifying the repayment dates, and increasing the number of institutions we bank with.
We will closely monitor the conditions of financial markets, and carefully deliberate and choose the best means of funding,including the usage of commitment lines, issuance of investment corporation bonds and short-term investment corporation bonds
from a wide range of available sources of funding to ensure a well-balanced structure of interest-bearing debts.

6. IMPORTANT EVENTS SUBSEQUENT TO THE THIRTEENTH FISCAL PERIOD
There is no relevant matter under this subject.

1. STATUS OF UNITHOLDERS’ CAPITAL
13th Period
12th Period
11th Period
10th Period
9th Period(as of Apr. 30, 2010) (as of Oct. 31, 2009) (as of Apr. 30, 2009) (as of Oct. 31, 2008) (as of Apr. 30, 2008)(Unit)

2,000,000

2,000,000

2,000,000

2,000,000

2,000,000

Number of units issued(Unit)

305,123

305,123

305,123

305,123265,903

Amount of unitholders’ capital(¥ mln)185,455

185,455

185,455

185,455

156,767

12,97012,565

12,503

12,406

11,120Portion in
the Total
Units Issued (%)

Maximum number of units allowed to issue

Number of unitholders

2. MATTERS CONCERNING THE INVESTMENT UNITS
The 10 largest unitholders as of April 30, 2010 were as follows.
Name

Number ofUnits Held
(Unit)

Japan Trustee Service Bank, Ltd. (Trust Accounts)

30,966

10.15

NCT Trust and Banking Corporation (Trust Accounts)

23,539

7.71

Trust & Custody Services Bank, Ltd. (Securities Trust Accounts)

20,186

6.62

Nomura Real Estate Development Co., Ltd.

15,287

5.01

The Master Trust Bank of Japan, Ltd. (Trust Accounts)

13,639

4.47

The Nomura Trust and Banking Co., Ltd. (Trust Accounts)

13,035

4.27

Kawasaki Gakuen

7,000

2.29

The Bank of Ikeda, Ltd.

5,669

1.86

AIG Edison Life Insurance Company

5,280

1.73

Zenkyoren

3,996

1.31

Total

138,597

45.42

3. BREAKDOWN OF UNITHOLDERS
The breakdown of unitholders as of April 30, 2010 was as follows.
Number ofUnitholders

Portion (%)

12,33895.1

33,358

10.9

143

1.1

167,282

54.8

Other domestic corporate investors

213

1.6

29,8489.8Foreign corporate investors, etc.

276

2.1

74,63524.5

12,970100.0305,123

100.0

Private and other investors
Financial institutions(Including sales agents for financial instruments firm)

Total

20

Number of Units
per Unitholder

Portion (%)

21

Status of Investment Assets of the Company
4. DIRECTORS AND AUDITOR

1. COMPOSITION OF ASSETS
12th Period (as of Oct. 31, 2009)

13th Period (as of Apr. 30, 2010)(1) Name of directors and an auditor in the thirteenth fiscal period are as follows (Note 1).
Title

Name

Other Major Title(s)Total Amount of Fees Paid
during the 13th Period (¥000)

Executive Director

Yuichi Maruko

Corporate Auditor, MEGALOS, Co., Ltd.

2,400

Supervisory Director

Shuhei Yoshida

Representative Lawyer, Yoshida Shuhei Law Office
Supervisory Director, Nomura Real Estate Residential Fund, Inc.

2,400

Supervisory Director

Eitoku Aikawa

Director, Fair Appraisers, K.K.
Supervisory Director, Nomura Real Estate Residential Fund, Inc.

2,400

Supervisory Director

Saneaki IchijoPartner, Anderson Mori & Tomotsune Law Firm

2,400

Supervisory Director

Naohito Miya

Manager of Miya Naohito CPA Firm

2,400

Accounting Auditor

Earnst & Young ShinNihon
LLC–

14,500Note 1: No Executive Directors or Supervisory Directors are in possession of the Company’s investment units either under their own or other person’s name other than Mr. Yuichi
Maruko possesses two units of the Company’s investment units as of April 30, 2010. Executive Directors and Supervisory Directors might serve as directors of othercompanies, but there are no mutual business interests whatsoever between such companies and the Company.
Note 2: At the fourth General Unitholders’ Meeting held on July 27, 2009, Mr. Atsushi Ogata, President and Chief Executive Officer of the Asset Management Company, Nomura Real
Estate Asset Management Co., Ltd., has been appointed as substitute Executive Director, to provide against vacancy of the Executive Director’s position or lack of statutory
quorum.

(2) Policy on Determination of Dismissal and Denial of Reappointment of Accounting Auditors
In case an item listed under Article 105, Paragraph 1 of the Investment Trust Law becomes applicable to the accounting auditor, and theBoard of Directors determines that there is no likelihood of improvement, the Board of Directors shall dismiss the accounting auditor byunanimous vote of all board members.
In addition, if the Board of Directors determines that the accounting auditor is inappropriate for the position having given thoroughconsideration to its business execution and other various reasons, the Board of Directors shall dismiss or deny reappointment of theaccounting auditor, and present an agenda for appointment of a new accounting auditor at the General Unitholders’ Meeting.

5. ASSET MANAGEMENT COMPANY, CUSTODIANS AND ADMINISTRATORS
Asset Management Company, custodians and administrators as of April 30, 2010 are as follows:Business

Company Name(s)Type of Assets

Real estate

7.5

31,0187.6

4.0

16,489

4.0

Other Regional Cities

37,9489.3

33,954

8.3

Central Tokyo

187,41145.7

187,897

46.0

Suburban Tokyo

37,501

9.1

37,513

9.2

Other Regional Cities

65,64816.0

65,917

16.1

Subtotal

375,851

91.6

372,790

91.3

Cash, deposits and other assets

34,275

8.4

35,522

8.7

410,127100.0

408,312

100.0

Real estate in trust

Grand Total

Note 1: “Central Tokyo” refers to Chiyoda, Chuo, Minato, Shinjuku, Shinagawa and Shibuya Wards; “Suburban Tokyo” refers to Tokyo excluding the Central Tokyo area, Kanagawa,
Saitama and Chiba: “Other Regional Cities” refers to areas other than Central Tokyo and Suburban Tokyo. The same applies hereafter.
Note 2: Total amount is taken from the balance sheet. (Real Estate and Real Estate in Trust represent the total book value after depreciation.)
Note 3: The percentage figures may not necessarily add up to 100.0 due to rounding to the nearest first decimal place.

2. BRIEF OF MAJOR PROPERTIES OWNED
The major components of assets (the 10 largest properties by book value) as of Apr. 30, 2010 are as follows.

Name of Property

Book Value(¥ mln)Leasable Floor
Space(m2) (Note 1)

Leased Space(m2) (Note 2)

Shinjuku Nomura Bldg.

39,43331,500.89

29,643.35

94.1

13.0

OfficeJAL Bldg.

32,83542,084.11

42,084.11

100.0(Note 3)

OfficeOmron Kyoto Center Bldg.

22,762

34,616.84

34,616.84

100.0(Note 3)

OfficeNOF Nihonbashi Honcho Bldg.

20,701

19,178.72

16,562.88

86.4

5.1

OfficeSORA Shin-Osaka 21

19,122

21,462.47

20,184.33

94.0

4.1

OfficeTennozu Park Side Bldg.

13,02818,051.60

16,086.72

89.1

5.3

Office3,420.16

3,420.16

100.0

2.6

Office6,685.52

6,685.52

100.0

2.4

Office11,2398,821.24

8,821.24

100.0(Note 3)

Medical Office(Note 4)
OfficeMitsubishi UFJ Trust and Banking Corporation (Note 1), The Bank of Tokyo-Mitsubishi
UFJ, Ltd. (Note 2), Sumitomo Mitsui Banking Corporation (Note 2)

NOF Shiba Bldg.

Note 1: Administrates preparation, retention and other tasks related to the Unitholders’ Register.
Note 2: Administrates preparation, retention and other tasks related to the Investment Company Bond Register.

Primary Use

12,629Custodian of unitholders’ register

The Bank of Tokyo-Mitsubishi UFJ, Ltd., Sumitomo Mitsui Banking Corporation,
Nomura Securities Co., Ltd., Citigroup Global Markets Japan Inc.,
Mizuho Securities Co., Ltd.

Portionof Rental
Revenues (%)

12,322

Secom Medical Bldg.

Administrative agent(investment corporation bonds)

Occupancy Rate(%)

NOF Shibuya Koen-dori Bldg.

Mitsubishi UFJ Trust and Banking Corporation

Mitsubishi UFJ Trust and Banking Corporation

Portion (%)(Note 3)

16,431

Nomura Real Estate Asset Management Co., Ltd.

Mitsubishi UFJ Trust and Banking Corporation

Total Amount (¥ mln)
(Note 2)30,909Custodian of assets

Administrative agent (accounting, etc.)

Portion (%)(Note 3)Suburban Tokyo

Asset Management Company

Manager of special accounts

Total Amount (¥ mln)
(Note 2)Central TokyoNOF Shinjuku Minamiguchi Bldg.

Administrative agent
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
(short-term investment corporation bonds)

22

Area
(Note 1)

Total

10,105

8,165.10

8,165.10

100.0

2.5

194,181

193,986.65

186,270.25

96.0

47.8 (Note 5)

Note 1: “Leasable Floor Space” refers to the total leasable space for each asset including offices and shops (for properties owned in compartments, this generally refers to exclusively
owned area; however, common spaces will be included if they are being leased. For Shinjuku Nomura Building, the area calculated by multiplying the overall leasable floor spaceby the quasi co-ownership ratio of the beneficial interest in real estate trust owned by the Company. For JAL Building, includes the area calculated by multiplying the overallcommon space by the co-ownership ratio for the common spaces prescribed in the terms of management of the building owned by the Company through the trustee.), at a
certain time. Leasable floor space is calculated not based on the total floor space stated on the registry book, but based on the area stated on the building completion drawing,
etc. included in the lease agreement. As such, it may differ from and exceed the total floor space stated on the registry book.
Note 2: “Leased Space” refers to the area included in the leasable floor space of each asset and is actually leased based on a lease agreement (provided, however, it is limited to officeand shop spaces (where the entire leased floor space is being leased as a whole, the total area of the leased floor space.), and does not include leased parking spaces. For
Shinjuku Nomura Building, the area calculated by multiplying the overall leased space by the quasi co-ownership ratio of the beneficial interest in real estate trust owned by theCompany. For JAL Building, includes the area calculated by multiplying the overall common space by the co-ownership ratio for the common spaces (as prescribed in the termsof management of the building) owned by the Company through the trustee.).
Note 3: Not disclosed due to compelling reasons.
Note 4: Although this property is currently registered as “clinic/parking” on the registry book, it was originally designed to be used as offices. The Company’s Articles of Incorporation
allows us to invest in the non-office properties given that they can easily be converted into offices.
Note 5: “Total” for “Portion of Rental Revenues” column include rental revenues for properties which do not disclose “Portion of Rental Revenues” due to unavoidable reasons.

23

3. DETAILS OF PORTFOLIO PROPERTIESName of Property
Central Tokyo

Location(Postal Address)

Shinjuku Nomura Bldg. (Note 3)

1-26-2 Nishi-Shinjuku, Shinjuku-ku, Tokyo

JAL Bldg.

2-4-11 Higashi-Shinagawa, Shinagawa-ku, TokyoNOF Nihonbashi Honcho Bldg.

2-7-1 Nihonbashi-Honcho, Chuo-ku, Tokyo

Tennozu Park Side Bldg.

2-5-8 Higashi-Shinagawa, Shinagawa-ku, TokyoNOF Shinjuku Minamiguchi Bldg.

2-4-9 Yoyogi, Shibuya-ku, TokyoNOF Shibuya Koen-dori Bldg.

20-17 Udagawa-cho, Shibuya-ku, Tokyo

Secom Medical Bldg.

7-7 Niban-cho, Chiyoda-ku, Tokyo (Note 4)

NOF Shiba Bldg.

4-2-3 Shiba, Minato-ku, Tokyo

Nishi-Shinjuku Showa Bldg.

1-13-12 Nishi-Shinjuku, Shinjuku-ku, Tokyo

NRE Shibuya Dogenzaka Bldg.

2-16-4 Dogenzaka, Shibuya-ku, TokyoNOF Tameike Bldg.

1-1-14 Akasaka, Minato-ku, Tokyo

Iwamoto-cho Toyo Bldg.

3-1-2 Iwamoto-cho, Chiyoda-ku, TokyoNOF Shinagawa Kounan Bldg.

1-2-5 Higashi-Shinagawa, Shinagawa-ku, TokyoNOF Surugadai Plaza Bldg.

2-5-12 Kanda Surugadai, Chiyoda-ku, Tokyo

PMO Nihonbashi Honcho

4-12-20 Nihonbashi Honcho, Chuo-ku, Tokyo

NRE Higashi-nihonbashi Bldg.

1-1-7 Higashi-nihonbashi, Chuo-ku, Tokyo

Hatchobori NF Bldg.

2-21-6 Hatchobori, Chuo-ku, TokyoNOF Kanda Iwamoto-cho Bldg.

3-8-16 Iwamoto-cho, Chiyoda-ku, TokyoNOF Takanawa Bldg.

2-20-4 Higashi Gotanda, Shinagawa-ku, Tokyo

Central Kyobashi Bldg.

1-4-13 Kyobashi, Chuo-ku, Tokyo

NOF Minami-Shinjuku Bldg.

5-32-7 Sendagaya, Shibuya-ku, Tokyo

Central Shintomocho Bldg.

3-5-10 Minato, Chuo-ku, Tokyo

Sunworld Yotsuya Bldg.

13-9 Araki-cho, Shinjuku-ku, Tokyo

Type ofOwnership

Appraisal Valueas of Apr.30, Book Value2010 (¥ mln)(¥ mln)(Note 1)
(Note 2)

NOF Toyo-cho Bldg.

1-6-35 Shinsuna, Koto-ku, TokyoNOF Technoport Kamata Center Bldg.

2-16-1 Minami-Kamata, Ota-ku, Tokyo

Toho Edogawabashi Bldg.

1-24-8 Sekiguchi Bunkyo-ku, Tokyo

Toshin Meguro Bldg.

2-20-28 Shimo Meguro, Meguro-ku, Tokyo

Crystal Park Bldg.

1-1-3 Gotenyama, Musashino City, TokyoNOF Kichijoji Honcho Bldg.

1-10-31, Kichijoji Honcho, Musashino City, Tokyo

Faret Tachikawa Center Square

2-36-2 Akebono-cho, Tachikawa City, TokyoNOF Kawasaki Higashiguchi Bldg.

3-1 Ekimae Honcho, Kawasaki-ku, Kawasaki City, Kanagawa (Note 4)

NOF Yokohama Nishiguchi Bldg.

1-11-11 Kita-Saiwai, Nishi-ku, Yokohama City, Kanagawa

NOF Shin-Yokohama Bldg.

2-15-16 Shin-Yokohama, Kohoku-ku, Yokohama City, Kanagawa

Yokohama Odori Koen Bldg.

2-4-1 Horai-cho, Naka-ku, Yokohama City, Kanagawa (Note 4)

NRE Sapporo Bldg.

2-15-1, Kitashichijyo-Nishi, Kita-ku, Sapporo City, Hokkaido

JCB Sapporo Higashi Bldg.

1-1 Minamiichijo-Nishi Chuo-ku, Sapporo City (Note 4)

NOF Sendai Aoba-dori Bldg.

2-1-2 Ichiban-cho, Aoba-ku, Sendai City, Miyagi

NOF Utsunomiya Bldg.

2-1-1 Baba-dori, Utsunomiya City, Tochigi

NOF Nagoya Fushimi Bldg.

2-9-27 Nishiki, Naka-ku, Nagoya City, Aichi

NOF Nagoya Yanagibashi Bldg.

SORA Shin-Osaka 21

1-16-28 Meieki-Minami, Nakamura-ku, Nagoya City, Aichi
801 Minami Fudodo-cho, Horikawa Higashi-iru, Shiokoji-dori,Shimogyo-ku, Kyoto City, Kyoto (Note 4)
2-1-3 Nishi-Miyahara, Yodogawa-ku, Osaka City

NRE Osaka Bldg.

1-8-15 Azuchi-cho, Chuo-ku, Osaka City, Osaka

Omron Kyoto Center Bldg.

24

3 Kaigan-dori, Chuo-ku, Kobe City, Hyogo (Note 4)

NRE Hiroshima Bldg.

2-23 Tatemachi, Naka-ku, Hiroshima City, Hiroshima

4,050

5,713

4,840

3,701

2,720

2,896

2,180

2,636

4,440

6,681

2,360

3,728

NOF Hakata Ekimae Bldg.

1-15-20 Hakata Ekimae, Hakata-ku, Fukuoka City, Fukuoka

29,10032,835

NOF Tenjin-Minami Bldg.

3-6-15 Watanabe Dori, Chuo-ku,Fukuoka City, Fukuoka

22,50020,701

Subtotal

85,278103,597

20,60013,028Grand Total

367,066

375,851

10,10012,322

11,60012,62910,400

11,2399,660

10,105

Real Estate
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Real Estate
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust

Real Estate
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Real Estate
Beneficial Interest in
Real Estate Trust
Real Estate
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Real Estate

8,730

8,716

6,380

7,646

7,240

7,580

4,940

5,949

6,030

5,414

6,690

4,997

4,310

4,946

3,500

4,060

2,780

3,182

3,500

3,098

2,540

3,016

2,380

2,549

2,400

2,309

1,430

1,769

655

786

227,465

218,321

6,680

7,846

8,490

7,081

7,110

6,573

1,490

2,086

1,130

1,337

3,480

3,611

1,640

1,795

4,840

2,949

8,450

9,433

5,763

5,000

3,150

3,331

2,100

2,887

54,32353,932

Beneficial Interest in
Real Estate Trust
Real Estate

5,598

7,540

4,670

5,198

Real Estate
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Real Estate
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Real Estate
Beneficial Interest in
Real Estate Trust

3,220

3,703

2,370

3,168

2,620

2,504

2,210

4,210

2,860

3,671

19,70022,762

13,40019,122

8,040

6,357

Subtotal

4-2-2 Kitaichijo-nishi, Chuo-ku, Sapporo City, Hokkaido (Note 4)

NOF Kobe Kaigan Bldg.

Real Estate
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust

39,433

Other Cities
Sapporo North Plaza

1-4-4 Awaza, Nishi-ku, Osaka City, Osaka

50,000Suburban Tokyo
1-14-4, Higashi-Ueno, Taito-Ku, Tokyo

2-1-22, Umeda, Kita-Ku, Osaka City, Osaka

NRE Yotsubashi Bldg.

Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Real Estate
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Real Estate
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Real Estate

Subtotal

NRE Ueno Bldg.

NRE Nishi-Umeda Bldg.

Note 1: “Appraisal Value as of Apr. 30, 2010” stands for the prices appraised by the estate surveyors in accordance with the provisions of the Company’s Articles of Incorporation andthe “Rules Concerning Calculations of Investment Corporations” (Cabinet Office Regulation No. 47 of 2006). The appraisal prices are calculated by Japan Real Estate Institution,
Tanizawa Sogo Appraisal Co., Ltd., Daiwa Real Estate Appraisal, Co., Ltd., HIRO & REAS Network, Inc., Appraisal Firm A-Square Co., Ltd., Chuo Real Estate Appraisal Co., Ltd.,or Morii Appraisal & Investment Consulting Inc. using the capitalization approach, with the end of the thirteenth fiscal period, i.e. April 30, 2010, being taken as the point ofevaluation.
Note 2: “Book Value” stands for the aggregate purchase price of lands, buildings, structures, machinery and equipments, tools and fixtures, leased assets, construction in progress, andleaseholds owned directly or held in trust, less depreciation including expenses associated with these purchases.
Note 3: The Company’s stake in this property is quasi co-ownership of 50.1% of entirety. The appraisal value and book value as of April 30, 2010 accounted solely for the quasi coownership.
Note 4: Residential indication of the property is not available yet.

Name of Property
Central Tokyo
Shinjuku Nomura Bldg.
JAL Bldg.
NOF Nihonbashi Honcho Bldg.
Tennozu Park Side Bldg.
NOF Shinjuku Minamiguchi Bldg.
NOF Shibuya Koen-dori Bldg.
Secom Medical Bldg.
NOF Shiba Bldg.
Nishi-Shinjuku Showa Bldg.
NRE Shibuya Dogenzaka Bldg.
NOF Tameike Bldg.
Iwamoto-cho Toyo Bldg.
NOF Shinagawa Kounan Bldg.
NOF Surugadai Plaza Bldg.
PMO Nihonbashi Honcho
NRE Higashi-nihonbashi Bldg.
Hatchobori NF Bldg.
NOF Kanda Iwamoto-cho Bldg.
NOF Takanawa Bldg.
Central Kyobashi Bldg.
NOF Minami-Shinjuku Bldg.
Central Shintomicho Bldg.
Sunworld Yotsuya Bldg.
Subtotal
Suburban Tokyo
NRE Ueno Bldg.
NOF Toyo-cho Bldg.
Technoport Kamata Center Bldg.
Toho Edogawabashi Bldg.
Toshin Meguro Bldg.
Crystal Park Bldg.
NOF Kichijoji Honcho Bldg.
Faret Tachikawa Center Square
NOF Kawasaki Higashiguchi Bldg.
NOF Yokohama Nishiguchi Bldg.
NOF Shin-Yokohama Bldg.
Yokohama Odori Koen Bldg.
Subtotal
Other Cities
Sapporo North PlazaNRE Sapporo Bldg.
JCB Sapporo Higashi Bldg.
NOF Sendai Aoba-dori Bldg.
NOF Utsunomiya Bldg.
NOF Nagoya Fushimi Bldg.
NOF Nagoya Yanagibashi Bldg.
Omron Kyoto Center Bldg.
SORA Shin-Osaka 21
NRE Osaka Bldg.
NRE Nishi-Umeda Bldg.
NRE Yotsubashi Bldg.
NOF Kobe Kaigan Bldg.
NRE Hiroshima Bldg.
EME Hakata Ekimae Bldg.
NOF Tenjin-Minami Bldg.
Subtotal
Grand Total

13th Period (from Nov. 1, 2009 to Apr. 30, 2010)
at Period End
RentalRevenues
PortionNumber ofOccupancy
during theof Rental
Tenants
Rate
PeriodRevenues(Note 1)(%)(¥ mln)(%)

12th Period (from May 1, 2009 to Oct. 31, 2009)
at Period End
RentalPortionNumber ofOccupancy
Revenues
of Rental
TenantsRateduring the
Revenues(Note 1)(%)
Period (¥ mln)
(%)

86
1
12
13
15
3
1
9
21
6
12
7
5
1
7
6
7
8
14
8
4
6
1
253

94.1
100.0
86.4
89.1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
96.7

1,782
(Note 2)
699
719
324
352
(Note 2)
347
296
187
199
168
251
(Note 2)
128
152
106
132
109
84
94
56
(Note 2)
7,616

13.0
(Note 2)
5.1
5.3
2.4
2.6
(Note 2)
2.5
2.2
1.4
1.5
1.2
1.8
(Note 2)
0.9
1.1
0.8
1.0
0.8
0.6
0.7
0.4
(Note 2)
55.6

82
1
11
15
15
3
1
8
21
6
11
7
5
1
7
6
7
7
13
8
4
6
1
246

93.6
100.0
79.4
98.3
100.0
100.0
100.0
100.0
100.0
100.0
90.7
100.0
100.0
100.0
100.0
100.0
100.0
90.6
97.1
100.0
100.0
91.3
100.0
96.2

1,883
(Note 2)
829
808
319
367
(Note 2)
358
325
180
201
172
250
(Note 2)
121
153
111
125
115
82
106
68
(Note 2)
8,011

13.3
(Note 2)
5.8
5.7
2.3
2.6
(Note 2)
2.5
2.3
1.3
1.4
1.2
1.8
(Note 2)
0.9
1.1
0.8
0.9
0.8
0.6
0.7
0.5
(Note 2)
56.4

9
1
14
7
1
9
6
16
24
27
9
16
139

100.0
100.0
97.2
100.0
100.0
92.7
100.0
94.2
89.1
80.0
100.0
92.4
95.5

220
(Note 2)408
67
(Note 2)
125
76
218
302
218
161
105
2,241

1.6
(Note 2)3.0
0.5
(Note 2)
0.9
0.6
1.6
2.2
1.6
1.2
0.8
16.4

9
1
14
7
1
9
6
15
22
28
7
14
133

100.0
100.0
97.2
100.0
100.0
92.7
100.0
91.4
86.5
88.6
87.3
94.0
94.5

231
(Note 2)423
64
(Note 2)
124
79
228
316
239
107
109
2,261

1.6
(Note 2)3.0
0.5
(Note 2)
0.9
0.6
1.6
2.2
1.7
0.8
0.8
15.9

39
6
1
24
22
5
10
1
30
24
12
17
32
13
40
18
294

91.8
100.0
100.0
70.7
84.2
38.8
70.6
100.0
94.0
94.4
100.0
96.8
93.2
92.6
87.7
95.6
92.8

2.4
1.5
(Note 2)
1.0
1.1
0.0
0.8
(Note 2)
4.1
3.6
1.3
2.3
1.3
1.4
1.2
0.5
28.0

36
6
1
29
22
11
11
1
27
24
13
17
32
14
36
18
287

84.5
100.0
100.0
90.9
94.1
100.0
100.0
100.0
89.6
92.8
100.0
97.8
93.8
93.3
93.1
95.6
94.8

95.0

100.0

666

95.4

330
194
(Note 2)
157
161
128
128
(Note 2)
571
511
188
313
187
196
189
59
3,930
14,203(Note 3)2.3
1.4
(Note 2)
1.1
1.1
0.9
0.9
(Note 2)
4.0
3.6
1.3
2.2
1.3
1.4
1.3
0.4
27.7

686

326
203
(Note 2)
130
152
3
115
(Note 2)
564
490
183
310
180
191
161
72
3,828
13,686(Note 3)100.0

Note 1: In the case a master lease agreement is in place, in which the master tenant of the said lease agreement subleases a part or whole of the leased floor spaces to the end
tenants, only the master tenant is counted as the number of tenants. For PMO Nihonbashi Honcho, which involves a “pass-through type” master lease agreement where theamount of rent received from the master tenant is the same as the rent received by said master tenant from the end tenant, the total number of end tenants is shown. In thecase more than one space within the same building are leased by the same tenant, such spaces are combined to count for just one tenant. However, when the same tenantleased floor spaces in more than one building, such spaces are counted separately for each building as if they are leased by different tenants. As for Shinjuku Nomura Building,the number of tenants in the entire building is taken into account.
Note 2: Not disclosed due to compelling reasons.
Note 3: Subtotal of “Rental Revenues” and "Portion of Rental Revenues” for each area is not disclosed due to compelling reasons.

25

4. OUTSTANDING AMOUNT AND CURRENT PRICE OF SPECIFIED TRANSACTIONS

2. CAPITAL EXPENDITURES DURING THE THIRTEENTH FISCAL PERIODThe outstanding amount and current price of the specified transactions as of April 30, 2010 are as follows.
Contract Amount (¥ mln) (Note 1)
Segment

Longer than a Year

Current
Price (¥ mln)
(Note 2)90,85083,350g1,10090,85083,350g1,100Type of Transaction

Transaction other than market transaction

Interest-rate swap
(Receiving floating-rate, paying fixed-rate)

Total
Note 1: Presented based on notional principal of contract.
Note 2: Evaluated at the price provided by the counterparty based on the prevailing market rate.

5. STATUS OF THE OTHER ASSETS
Other than the Trust Beneficial Interest and Real Estate listed in the table under the title “3. Details of Portfolio Properties”, the Company had
no other assets to integrate into the portfolio as of April 30, 2010.

6. STATUS OF ASSETS BY COUNTRY AND REGION

Name of Property (Location)

Description of Works (Purpose)

Cost of Works(¥ mln)Period of WorksNOF Shibuya Koen-dori Bldg.
(Shibuya-ku, Tokyo)

Renewal of air-conditioning system(To increase quality)

From:
To:

Nov. 2009
Nov. 200957

NOF Technoport Kamata Center Bldg.
(Ota-ku, Tokyo)

Renewal of through the wall air-conditioning system(To increase quality)

From:
To:

Nov. 2009
Mar. 2010

81

Sapporo North Plaza(Chuo-ku, Sapporo City)

Renovation of multistoried parking facility(To increase quality)

From:
To:

Mar. 2010
Apr. 201048

Sapporo North Plaza(Chuo-ku, Sapporo City)

Refurbishment of exclusively owned area
(To increase revenues)

From:
To:

Mar. 2010
Apr. 201031

Other Properties

Improvement of features

From:
To:

Nov. 2009
Apr. 2010

472

Total

As of the end of the thirteenth fiscal period, the real estate and beneficial interest in real estate trust held by the Company by country andregion are as follows.
Appraisal Value as of Apr. 30, 2010 (Note 2)
Country

The table below lists capital expenditures during the thirteenth fiscal period in conjunction with the major works of renovation. During theperiod, we have conducted engineering works totalling ¥939 million: capital expenditures of ¥692 million and repair expenses of ¥246
million combined all together.

Total Portfolio Amount (Note 1)

Portion of Total
Portfolio

Number of
PropertiesJapan¥375,851 million¥367,066 million

100.0%

51

Total¥375,851 million¥367,066 million

100.0%

51

Note 1: Total portfolio amount stands for the book value after depreciation and amortization.
Note 2: Appraisal value as of Apr. 30, 2010 stands for the value appraised by the real estate appraisers.

692

3. FUNDS RESERVED FOR THE LONG-TERM REPAIR PLANS
Subject to the long-term schedule for repairs and maintenance set down for each building, the Company has accounted for reserves fromthe operating cash flow to prepare for large-scale engineering works to be carried out in the future.
13th Period
12th Period
11th Period
10th Period
9th Period
from Nov. 1, 2009 from May 1, 2009 from Nov. 1, 2008 from May 1, 2008 from Nov. 1, 2007
to Apr. 30, 2010 to Oct. 31, 2009 to Apr. 30, 2009 to Oct. 31, 2008 to Apr. 30, 2008

Balance brought forward from the previous period
Amount reserved during the period
Amount used during the period

Capital Expenditures

Balance brought forward to the next period

¥ mln

¥ mln

¥ mln

¥ mln

¥ mln

436

368

238

290

596

975

1,570

1,894

1,716

1,118

1,013

1,502

1,764

1,768

1,424

397

436

368

238

290

1. PLAN OF CAPITAL EXPENDITURES
The table below lists major capital expenditures in conjunction with the refurbishment and/or renewal works scheduled for the future (finishedin part) on the properties held as of April 30, 2010. The estimated cost of works includes the amount to be charged as “expenses” foraccounting purposes.
Estimated Cost (¥ mln) (Note 1)
Name of Property (Location)

Description of Works (Purpose)

Estimated
PeriodTotal

Paid during
13th Period

Paid before
13th Period

354

–

–

Shinjuku Nomura Bldg.
(Shinjuku-ku, Tokyo)

Renovation of passenger elevator control system(Low/middle level (4 units for each))(To increase quality) (Note 2)

From: May 2010To:
Oct. 2011

Sapporo North Plaza(Chuo-ku, Sapporo City)

Renovation of multistoried parking facility(To increase quality)

From: Aug. 2010To:
Oct. 2010

Sapporo North Plaza(Chuo-ku, Sapporo City)

Refurbishment of exclusively owned area
(To increase revenues)

From: Aug. 2010To:
Apr. 2011

70
83

–
–

Note 1: As for Shinjuku Nomura Building, the posted amount of cost represents 50.1%, our portion of quasi co-ownership, of the total cost of refurbishment of the entire building.
Note 2: These works have already been implemented as of the date of this report.

––

Expenses and Liabilities
1. EXPENSES RELATED TO ASSET MANAGEMENT
13th Period
from Nov. 1, 2009
to Apr. 30, 2010

12th Period
from May 1, 2009
to Oct. 31, 2009

¥000

¥000

Asset management fees (Note)

1,075,895

1,100,252of which Management Fee I

712,258

722,256of which Management Fee II

363,637

377,996of which Management Fee III––

Custodian fees

29,061

29,100General administrative fees

64,95965,245

Directors’ compensation

12,00012,000

Other expenses

89,95397,3591,271,869

1,303,957

Total

Note: In the Asset Management Agreement between the Company and the Asset Management Company, there is no provision for the acquisition fees, which are payable to the AssetManagement Company by the Company on acquisition of a new property, and such fees are non-existent.

26

27

2. STATUS OF BORROWINGS
Financial Institutions

The status of borrowings from the financial institutions as of Apr. 30, 2010 is as follows.
Date
Borrowed

Financial Institutions

Outstanding as of Outstanding as ofApr. 30, 2010
Oct. 31, 2009(¥000)(¥000)

Average
Interest Rate(%) (Note 1)

Date of
Repayment

Method of
Use ofRepayment Borrowings

Note

Short-term Borrowings–

1,750,000–

1,750,000–

500,000

Mitsubishi UFJ Trust and Banking Corp.

–

500,000

Sumitomo Trust and Banking Co., Ltd.

–

500,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

–

1,200,000

Sumitomo Mitsui Banking Corp.

–

1,800,000–

500,000

Sumitomo Trust and Banking Co., Ltd.

–

430,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

–

900,000

Sumitomo Mitsui Banking Corp.

–

500,000–

200,000

Mitsubishi UFJ Trust and Banking Corp.

–

200,000

Sumitomo Trust and Banking Co., Ltd.

–

200,000

1,400,000

1,400,000

1,400,000

1,400,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
The Mizuho Corporate Bank, Ltd.

Mitsubishi UFJ Trust and Banking Corp.

The Mizuho Corporate Bank, Ltd.

The Mizuho Corporate Bank, Ltd.
Sumitomo Trust and Banking Co., Ltd.

Dec. 24, 2008

Dec. 24, 2008

Mar. 26, 2009

Jun. 24, 2009

The Mizuho Corporate Bank, Ltd.

500,000–

Sumitomo Trust and Banking Co., Ltd.

580,000–

1,000,000–

Aozora Bank, Ltd.

500,000–

The Chiba Bank, Ltd.

500,000–

500,000–

The Chugoku Bank, Ltd.

The Hiroshima Bank, Ltd.
Shinkin Central Bank

Dec. 24, 2009

Feb. 26, 2010
Mar. 15, 2010

Subtotal

2,000,000–

8,380,000

13,730,000

1.44333

1.17545

Dec. 24, 2009

Dec. 24, 2009

1.18417Mar. 26, 2010

1.12727

Jun. 24, 2010

1.12727

Dec. 24, 2010

1.10727

Feb. 26, 2011

1.10727

Feb. 28, 2011

Balloonpayment(Note 2)

Unsecured/
Uninsured

Current Portion of Long-term Borrowings
The Norinchukin Bank, Ltd.

Feb. 26, 2004–

3,000,000

1.77500

Feb. 26, 2010

Mitsui Life Insurance Company

Feb. 26, 2004–

1,000,000

1.50625

Feb. 26, 2010–

1,000,000–

500,000

1.48375

Feb. 26, 2010–

1,000,000
1.65500

Aug. 26, 2010

The Chiba Bank, Ltd.
The Hiroshima Bank, Ltd.

Dec. 8, 2006

Tokio Marine & Nichido Fire Insurance Co. Ltd.
Nippon Life Insurance Company
Sompo Japan Insurance Inc.

Nov. 30, 2006

Sumitomo Mitsui Banking Corp.

1,000,000

1,000,000

1,000,000

1,000,000

1,000,000

1,000,000

1,000,000

1,000,000

1,000,000

1,000,000

The Bank of Fukuoka, Ltd.

1,000,000

1,000,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000–

500,000–

1,000,000–

The Yamanashi Chuo Bank, Ltd.
The Chugoku Bank, Ltd.

Mitsubishi UFJ Trust and Banking Corp.

Aug. 26, 2008

Dec. 8, 2008

Mitsui Sumitomo Insurance Co., Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000–

The Mizuho Corporate Bank, Ltd.

1,000,000–

500,000–

Mitsubishi UFJ Trust and Banking Corp.

Feb. 27, 2006

Sumitomo Trust and Banking Co., Ltd.

3,000,000–

The Nomura Trust & Banking Co., Ltd.

2,000,000–

500,000

500,000

Subtotal

16,500,000

13,000,000

Total Short-term Borrowings

24,880,000

26,730,000

Development Bank of Japan Inc.

Jun. 25, 2009

0.90727

Aug. 26, 2010

1.04000

Dec. 8, 2010

1.68000

Feb. 26, 2011

1.97000(Note 3)

Balloonpayment(Note 3)(Note 2)

Unsecured/
UninsuredLong-term Borrowings
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corp.
Mitsui Sumitomo Insurance Co. Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Mizuho Corporate Bank, Ltd.
Mitsubishi UFJ Trust and Banking Corp.
Sumitomo Trust and Banking Co., Ltd.
The Nomura Trust & Banking Co., Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
The Chiba Bank, Ltd.
The Hachijuni Bank, Ltd.
The Hiroshima Bank, Ltd.
The Keiyo Bank, Ltd.
The Mizuho Corporate Bank, Ltd.
Mitsubishi UFJ Trust and Banking Corp.
Sumitomo Trust and Banking Co., Ltd.
The Hachijuni Bank, Ltd.
The Yamanashi Chuo Bank, Ltd.
The Mizuho Corporate Bank, Ltd.
The Chuo Mitsui Trust & Banking Co., Ltd.
The Iyo Bank, Ltd.
The 77 Bank, Ltd.
The Hyakujushi Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
Mitsubishi UFJ Trust and Banking Corp.
Sumitomo Trust and Banking Co., Ltd.
The Chuo Mitsui Trust & Banking Co., Ltd.
The Nomura Trust & Banking Co., Ltd.
The Iyo Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
Mitsubishi UFJ Trust and Banking Corp.
The Hyakujushi Bank, Ltd.
Mitsui Life Insurance Co., Ltd.
Taiyo Life Insurance Company
Daido Life Insurance Company
Zenkyoren
Development Bank of Japan Inc.
Zenkyoren
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
Mitsubishi UFJ Trust and Banking Corp.
The Chuo Mitsui Trust & Banking Co., Ltd.
The Iyo Bank, Ltd.
Mitsubishi UFJ Trust and Banking Corp.
Sumitomo Trust and Banking Co., Ltd.
Mitsubishi UFJ Trust and Banking Corp.
Sumitomo Mitsui Banking Corp.
Mitsubishi UFJ Trust and Banking Corp.
Sumitomo Trust and Banking Co., Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
The Mizuho Corporate Bank, Ltd.
Development Bank of Japan Inc.
The Dai-ichi Life Insurance Company, Limited
Mizuho Trust & Banking Co., Ltd.
THE NISHI-NIPPON CITY BANK, LTD.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
Mitsubishi UFJ Trust and Banking Corp.
The Iyo Bank, Ltd.
Taiyo Life Insurance Company
Daido Life Insurance Company
Sumitomo Life Insurance Company
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
The Mizuho Corporate Bank, Ltd.
Mitsubishi UFJ Trust and Banking Corp.
The Bank of Fukuoka, Ltd.
The Dai-ichi Life Insurance Company, Limited
The Norinchukin Bank, Ltd.
Taiyo Life Insurance Company
Sumitomo Life Insurance Company
Development Bank of Japan Inc.
Development Bank of Japan Inc.
Subtotal
Total

Date
Borrowed
Dec. 8, 2008

Feb. 27, 2006

Dec. 10, 2007

Apr. 25, 2008

Mar. 19, 2007
Sep. 25, 2008

Dec. 8, 2006

Jun. 24, 2009

Nov. 29, 2005
Dec. 9, 2005
Feb. 26, 2008

Sep. 25, 2008
Nov. 4, 2008

Jun. 27, 2008
Mar. 17, 2005
Dec. 8, 2006
Mar. 26, 2010
Dec. 8, 2008

Mar. 19, 2007

Dec. 24, 2009
Feb. 26, 2008
Feb. 26, 2010
Jun. 24, 2008
Jun. 25, 2009

Outstanding as of Outstanding as ofApr. 30, 2010
Oct. 31, 2009(¥000)(¥000)
–
–
–
–
–
–
–
–
4,000,000
1,000,000
500,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
500,000
2,000,000
1,000,000
1,000,000
1,000,000
1,000,000
2,000,000
2,000,000
1,000,000
2,000,000
1,000,000
2,000,000
1,000,000
5,600,000
4,500,000
1,400,000
500,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
2,000,000
1,500,000
2,500,000
1,000,000
500,000
1,000,000
1,000,000
3,000,000
3,000,000
2,000,000
2,000,000
2,000,000
2,000,000
1,000,000
1,000,000
2,000,000
2,000,000
2,000,000
1,000,000
4,500,000
1,000,000
1,000,000
1,000,000
1,000,000
2,000,000
1,800,000
2,400,000
500,000
650,000
1,000,000
3,000,000
3,000,000
1,000,000
3,000,000
4,000,000
9,250,000
120,600,000
145,480,000

1,000,000
500,000
1,000,000
1,000,000
1,000,000
500,000
3,000,000
2,000,000
4,000,000
1,000,000
500,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
500,000
2,000,000
1,000,000
1,000,000
1,000,000
1,000,000
2,000,000
2,000,000
1,000,000
2,000,000
1,000,000
2,000,000
1,000,000
5,600,000
4,500,000
1,400,000
500,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
2,000,000
1,500,000
2,500,000
1,000,000
500,000
1,000,000
1,000,000
3,000,000
3,000,000
2,000,000
2,000,000
2,000,000
2,000,000
1,000,000
1,000,000
2,000,000––
1,000,000
4,500,000
1,000,000
1,000,000
1,000,000
1,000,000
2,000,000–––––
3,000,000–
1,000,000
3,000,000
4,000,000
9,500,000
117,500,000
144,230,000

Average
Interest Rate(%) (Note 1)

Date of
Repayment

1.12182

Dec. 8, 2010

1.68000

Feb. 26, 2011

1.43200

Jun. 10, 2011

1.44800

Aug. 25, 2011

1.63825

Aug. 26, 2011

1.43950

Sep. 25, 2011

1.89764

Feb. 26, 2012

1.39575

Jun. 24, 2012

1.43750

Aug. 26, 2012

1.53625

Aug. 26, 2012

1.46000

Aug. 26, 2012

1.61150

Sep. 25, 2012

1.51175

Nov. 4, 2012

1.87200

Dec. 27, 2012

1.75250
1.99250

Feb. 26, 2013
Feb. 26, 2013

1.22636

Feb. 26, 2013

1.68680

Dec. 8, 2013

1.98000

Mar. 19, 2014

1.55800

Dec. 24, 2014

1.91875
1.69300

Feb. 26, 2015
Feb. 26, 2015

2.31750

Jun. 24, 2015

1.97000(Note 3)

Method of
Use ofRepayment Borrowings

Balloonpayment(Note 2)

Note

Unsecured/
Uninsured(Note 3)Note 1: The average interest rate is weighted by the balance of each borrowing as at the end of the period and rounded to the nearest fifth decimal place. As for the borrowings, whichwere hedged by interest-rate swaps for the purpose of avoiding interest rate fluctuation risk, the swapped interest rates are used to calculate the weighted average of interest.
Note 2: The use of borrowings is to purchase property-related assets, the related miscellaneous expenses and the repayment of borrowings.
Note 3: Installments of ¥250 million will be made on the 25th of every sixth month starting on December 25, 2009, with the remaining payment of ¥6,750 million to be repaid on June25, 2016.

28

29

3. STATUS OF INVESTMENT CORPORATION BONDS

3. PRICE INVESTIGATIONThe status of investment corporation bonds issued as of April 30, 2010 is as follows.

(1) Real Estates

Name of Bonds

Issue Date

Balance as of Balance as ofApr. 30, 2010 Oct. 31, 2009(¥ mln)(¥ mln)Acquisition/Disposition
Interest
Rate (%)

Maturity Date

Method of
Repayment

Use ofProceeds

Note

Balloonpayment(Note 1)

(Note 2)First Series Unsecured Investment Mar. 16,
Corporation Bonds
2005

5,000

5,000

1.85

Mar. 16,
2015

Second Series Unsecured
Investment Corporation Bonds

Mar. 16,
2005

5,000

5,000

2.47

Mar. 16,
2020

Balloonpayment(Note 1)

(Note 2)

Third Series Unsecured
Investment Corporation Bonds

Nov. 28,
2005

10,00010,0001.19

Nov. 29,2010

Balloonpayment(Note 1)

(Note 3)

Fourth Series Unsecured
Investment Corporation Bonds

Nov. 28,
2005

10,00010,0002.05

Nov. 30,
2015

Balloonpayment(Note 1)

(Note 3)

Fifth Series Unsecured Investment
Corporation Bonds

Mar. 19,
2007

5,000

5,000

1.61

Mar. 19,2012

Balloonpayment(Note 1)

(Note 3)

Sixth Series Unsecured
Investment Corporation Bonds

Mar. 19,
2007

5,000

5,000

2.21

Mar. 17,2017

Balloonpayment(Note 1)

(Note 3)Seventh Series Unsecured
Investment Corporation Bonds

Mar. 19,
2007

4,500

4,500

2.90

Mar. 17,
2028

Balloonpayment(Note 1)

(Note 3)44,50044,500Total

Acquisition/Disposition

Type of Asset

Name of Property

Date

Price (¥ mln)

Appraisal Value(¥ mln)Acquisition

Real estate

NOF Nagoya Fushimi Bldg.

Dec. 25, 2009

4,050

2,370

Note 1: The price investigation procedures were conducted by Ernst & Young ShinNihon LLC at the time of acquisition or disposition in accordance with the guidance under “Price
Investigation of Specified Assets Held by Investment Trusts and Investment Corporations”, Industry Audit Committee Report No. 23 issued by The Japanese Institute ofCertified Public Accountants. The Company has received detailed reports including the location and lot number to identify these properties.
Note 2: “Acquisition price” and “Disposition price” do not include various costs (intermediary fees, taxes and duties, etc.) required for acquisition or disposition of the property (thepurchase and sale price of the real estate, etc., as indicated in the Transfer Agreement of Trust Beneficial Interest or Real Estate).

(2) Others
With regard to the properties the Company has traded but not included in the above table “(1) Real Estates,” the price investigation
procedures were conducted by Ernst & Young ShinNihon LLC subject to the requirement by Article 201 of the Investment Trust Law.
For the thirteenth fiscal period (from November 1, 2009 to April 30, 2010), two OTC derivatives transactions were subject toinvestigation. Ernst & Young ShinNihon LLC was requested to investigate the details of three transactions including the name ofcounterparty, issues, the number of execution, financial instruments/monetary indicators, put/call options, exercise prices, the period of
execution of right, the trading period, etc. The investigation report has been received.

4. TRANSACTIONS WITH RELATED PARTIES AND MAJOR SHAREHOLDERS(1) Transactions
Not applicable.

Note 1: The uses of proceeds are to purchase the property-related assets, pay for the costs, and to repay borrowings.
Note 2: Ranking Pari Passu among the investment corporation bonds for qualified institutional investors only.
Note 3: Ranking Pari Passu among the specified investment corporation bonds.

(2) Fees Paid to Related Parties and Major Shareholders
Table of fees paid to related parties and major shareholders during the thirteenth fiscal period is as follows.

4. STATUS OF SHORT-TERM INVESTMENT CORPORATION BONDS
The status of short-term investment corporation bonds issued as of April 30, 2010 is as follows.

Name of Bonds

Fourth Series Short-term Investment
Corporation Bonds

Issue Date

Balance as ofApr. 30, 2010(¥ mln)Mar. 15,
2010

Total

Issue Price(¥ mln)Name of Related Party and Major Shareholders

Maturity Value(¥ mln)

1,998

1,997

2,000

1,998

1,997

2,000

Maturity Date

Jun. 24,
2010

Note

Unsecured/
Uninsured

Contract-out fees
Property management fees

Other expenses

1. STATUS OF REAL ESTATES AND ASSET-BACKED SECURITIES TRADING
Acquisition
Type of Asset

Name of Property

Date

Real estate

NOF Nagoya Fushimi Bldg.

Dec. 25,
2009

4,050

Total

4,050

Flagship Properties, Inc. (Note 3)

Disposition
Date

Price (¥ mln)
(Note)

Book Value(¥ mln)Gain (Loss)(¥ mln)

–

–

–

–

–

–

–

638,178916

Nomura Real Estate Development Co., Ltd.

161,191

Nomura Building Management Co., Ltd.

26,986

Nomura Real Estate Development Co., Ltd.

26,200Nomura Building Management Co., Ltd.

29,712

NREG Toshiba Real Estate Co., Ltd.

Trading during the Thirteenth Fiscal PeriodPrice(¥ mln) (Note)

Nomura Building Management Co., Ltd. (Note 2)

Amount Paid (A)(¥000)

509

Total Amount Paid (B)(¥000)

1,071,346
247,516

Portion(A) / (B)
(%)

59.6
0.1
65.1
10.9
26.7

98,12330.3
0.5

Note 1: The term “related parties” refers to related parties of Asset Management Companies as stipulated by Article 123 of the Enforcement Order of the Act on Investment Trusts
and Investment Corporations and by Article 26, Paragraph 1, Item 27 of the Regulations Concerning Investment Reports of Investment Trusts and Investment Corporations,issued by the Investment Trusts Association, Japan. The term “major shareholders” refers to major shareholders of Asset Management Companies as defined by Article 29-4,
Paragraph 2 of the Financial Instruments and Exchange Act.
Note 2: In addition to the Property Management Agreement, the Company has entrusted Nomura Building Management Co., Ltd. with daily maintenance of building and equipments,
the cost of which is included in “Contract-out Fees”.
Note 3: The Company has entrusted certain jobs such as receipt of rents, payment of disbursements and notification of repairs in conjunction with the sublease of JAL Building to
Flagship Properties. The Contract-out fees paid to Flagship Properties include remuneration for these services.
Note 4: Besides the above, the Company has made the following payments for repair works during the thirteenth fiscal period.

Name of Related Party
Nomura Real Estate Development Co., Ltd.
Nomura Building Management Co., Ltd.

Amount Paid (¥000)
15,681
449,746

Note: “Acquisition price” and “Disposition price” do not include various costs (intermediary fees, taxes and duties, etc.) required for acquisition or disposition of the property (thepurchase and sale price of the real estate, etc., as indicated in the Transfer Agreement of Trust Beneficial Interest or Real Estate).

2. STATUS OF OTHER ASSETS
Not applicable. In addition, the Company’s assets other than the above mentioned properties and asset-backed securities, are mostly
comprised of direct bank deposits and bank deposits in trust.

30

31

Financial Section
The management fees paid to the property management companies, which are related parties, are broken down as follows.
Name of Property

Shinjuku Nomura Bldg.
JAL Bldg.
Tennozu Park Side Bldg.
NOF Shibuya Koen-dori Bldg.
Secom Medical Bldg.
Nishi-Shinjuku Showa Bldg.
NRE Shibuya Dogenzaka Bldg.
NOF Tameike Bldg.
NOF Shinagawa Konan Bldg.
NOF Surugadai Plaza Bldg.
PMO Nihonbashi Honcho
NRE Higashi-nihonbashi Bldg.
Hatchobori NF Bldg.
NOF Minami-Shinjuku Bldg.
NRE Ueno Bldg.
NOF Technoport Kamata Center Bldg.
NOF Kichijoji Honcho Bldg.
Faret Tachikawa Center Square
NOF Yokohama Nishiguchi Bldg.
NOF Shin-Yokohama Bldg.
NRE Sapporo Bldg.
Omron Kyoto Center Bldg.
NRE Osaka Bldg.
NRE Nishi-Umeda Bldg.
NRE Yotsubashi Bldg.
NOF Shinjuku Minamiguchi Bldg.
NOF Takanawa Bldg.
Central Kyobashi Bldg.
Central Shintomicho Bldg.
Sunworld Yotsuya Bldg.
NOF Toyo-cho Bldg.
Toshin Meguro Bldg.
NOF Kawasaki Higashiguchi Bldg.
NOF Utsunomiya Bldg.
NOF Nagoya Yanagibashi Bldg.
NRE Hiroshima Bldg.

Property Management Company

Property Management Fees(¥000) (Note 1) (Note 2)

Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Building Management Co., Ltd.
Nomura Building Management Co., Ltd.
Nomura Building Management Co., Ltd.
Nomura Building Management Co., Ltd.
Nomura Building Management Co., Ltd.
Nomura Building Management Co., Ltd.
Nomura Building Management Co., Ltd.
Nomura Building Management Co., Ltd.
Nomura Building Management Co., Ltd.
Nomura Building Management Co., Ltd.
Nomura Building Management Co., Ltd.

33,4383,540
13,867
5,773
3,824
7,055
3,890
4,136
5,159
5,213
3,236
3,060
2,505
2,170
4,418
9,878
1,543
4,586
4,615
3,371
4,057
5,718
13,894
3,944
8,291
4,057
2,244
1,519
987
574
2,194
600
5,890
3,751
2,112
3,053

Note 1: “Property Management Fees” are the aggregated sum of the basic fee and the incentive fee.
Note 2: Daily maintenance of building and equipments is entrusted to Nomura Building Management, but the fees associated with such works are not included here.

NRE Sapporo Building

5. STATUS OF BUSINESS WITH THE ASSET MANAGEMENT COMPANY OVER ITS SUBSIDIARY BUSINESSThere is no relevant matter under this subject as Nomura Real Estate Asset Management Co., Ltd., the asset management company of theCompany, is not in any subsidiary business.

Other Information
1. NOTICE
Not applicable.

2. STATUS OF BENEFICIAL INTEREST IN INVESTMENT TRUSTS ESTABLISHED BY THE COMPANY

Contents

Balance Sheets....................................................................34
Statements of Income and Retained Earnings ...................36
Statements of Changes in Net Assets ...............................37
Statements of Cash Flows ................................................38
Notes to Financial Statements ...........................................39

Not applicable.

3. OTHER MATTERS
For the purpose of this report, the numbers of amount below unit are truncated and the numbers in percentage are rounded to unit unlessotherwise mentioned specifically.

32

33

Balance Sheets
Thousands of Yen
As of April 30, 2010ASSETS

Rental receivables
Corporate taxes refundable
Other current assets
Total current assets

As of April 30, 2010

As of October 31, 2009

LIABILITIESCurrent Assets:
Cash and bank deposits

Thousands of Yen

As of October 31, 2009

Current Liabilities:¥ 33,216,353¥ 34,422,911

Trade accounts payable

179,932

233,750

Other accounts payable

1,200,171

1,395,019

346

2,092

Short-term investment corporation bonds

1,998,818–

367,012335,316

33,763,643

34,994,069

Property and Equipment, at Cost:¥

546,960¥

728,735

Short-term debt

8,380,000

13,730,000

Current portion of investment corporation bonds

10,000,000–

Current portion of long-term debt

16,500,000

13,000,000

Accrued expenses

857,801

921,848

Land

265,986,741

263,529,890

Accrued consumption taxes

204,430

210,822

Buildings and structures

124,291,975

122,015,809

Rent received in advance

2,164,533

2,270,821

Machinery and equipment

1,415,304

1,230,024

Other current liabilities

124,814185,018

Tools, furniture and fixtures

228,961

222,166

41,977,527

32,442,263

Leased assets

30,94630,946

Construction in progress

81,16682,141

392,035,093

387,110,976

Investment corporation bonds

34,500,000

44,500,000(18,084,506)(16,221,547)

Long-term debt

120,600,000

117,500,000

373,950,587

370,889,429

Security deposits from tenants

22,547,218

23,061,123

SubtotalLess accumulated depreciation
Net property and equipment

Total current liabilities
Long-term Liabilities:

12,131

15,586

Total long-term liabilities

177,659,349

185,076,709

Total Liabilities

219,636,876

217,518,972

Unitholders' capital

185,455,447

185,455,447

Retained earnings

5,034,679

5,338,534

Total unitholders' equity

190,490,126

190,793,981

Total Net Assets

190,490,126

190,793,981¥ 410,127,002¥ 408,312,953

Other long-term liabilities
Investments and Other Assets:
Leasehold rights

1,900,905

1,900,905

Intangible assets

2,621

2,909

Long-term prepaid expenses

14,582

24,626

Security deposits

410,850

410,850

Deferred investment corporation bond issuance costs

83,814

90,1652,412,772

2,429,455¥ 410,127,002¥ 408,312,953

Total investments and other assets

NET ASSETS
Unitholders' Equity:

Total Assets
The accompanying notes to financial statements are an integral part of these statements.

Total Liabilities and Net Assets
The accompanying notes to financial statements are an integral part of these statements.

34

35

Statements of Income and Retained Earnings

Statements of Changes in Net Assets
Thousands of Yen

For the period
from November 1, 2009
to April 30, 2010

For the period from November 1, 2009 to April 30, 2010
Thousands of Yen

For the period
from May 1, 2009
to October 31, 2009

Operating Revenues and Expenses

Units

Unitholders'CapitalRetained
Earnings

Total
Unitholders'Equity305,123¥185,455,447¥5,338,534¥190,793,981––¥190,793,981

Cash distribution paid––

(5,338,432)(5,338,432)––(5,338,432)

Net income––

5,034,577

5,034,577––

5,034,577

305,123¥185,455,447¥5,034,679¥190,490,126––¥190,490,126

DeferredHedge Gains(Losses)

Total Valuation
and Translation
Adjustments

Total
Net Assets

Balance as of October 31, 2009

Operating Revenues:¥ 13,686,232¥ 14,203,926

13,686,232

14,203,926

Balance as of April 30, 2010

Real estate rental expenses

5,667,025

5,761,133

Asset management fees

1,075,895

1,100,252

For the period from May 1, 2009 to October 31, 2009

94,021

94,346–

6,119

Real estate rental revenues

DeferredHedge Gains(Losses)

Total Valuation
and Translation
Adjustments

Total
Net Assets

Operating Expenses:

Administrative service and custodian fees
Bad debts expenses
Other operating expenses

101,953

103,241

6,938,894

7,065,091

6,747,338

Operating Profit

7,138,835

Thousands of Yen
Units

Unitholders'CapitalRetained
Earnings

Total
Unitholders'Equity305,123¥185,455,447¥5,392,503¥190,847,950––¥190,847,950

Cash distribution paid––

(5,392,439)(5,392,439)––(5,392,439)

Net income––

5,338,470

5,338,470––

5,338,470

305,123¥185,455,447¥5,338,534¥190,793,981––¥190,793,981

Balance as of April 30, 2009

Balance as of October 31, 2009

The accompanying notes to financial statements are an integral part of these statements.

Non-Operating Revenues and Expenses
Non-Operating Revenues:
Interest income

6,867

8,946

Other non-operating revenues

35,73920,73842,606

29,684

1,160,559

1,179,077

103,181

145,409

Non-Operating Expenses:
Interest expense
Loan arrangement fees
Interest expense on short-term investment corporation bonds
Interest expense on investment corporation bonds

5,708

–

428,087

433,413

Amortization of investment corporation bond issuance costs

8,089

6,637

Other non-operating expenses

48,71664,491

1,754,340

1,829,027

5,035,604

5,339,492

Current

1,027

1,027

Deferred–(5)5,034,577

5,338,470

102

64

Income before Income Taxes
Income Taxes:

Net Income
Retained earnings brought forward
Retained Earnings at End of Period¥

5,034,679¥

5,338,534

The accompanying notes to financial statements are an integral part of these statements.

36

37

Statements of Cash Flows

Notes to Financial Statements
Thousands of Yen
For the period
from November 1, 2009
to April 30, 2010

For the period
from May 1, 2009
to October 31, 2009

Cash Flows
Cash Flows from Operating Activities
Income before income taxes
Depreciation
Amortization of long-term prepaid expenses
Amortization of investment corporation bond issuance costs
Interest income
Interest expense
Loss on disposal of property and equipment
Decrease in rental receivables(Decrease) in trade accounts payable(Decrease) Increase in other accounts payable(Decrease) Increase in accrued consumption taxes(Decrease) in rent received in advance
Changes in other current assets/liabilities
SubtotalInterest received
Interest paid
Income taxes refund
Net cash provided by operating activities¥

5,035,604
1,865,416
15,711
8,089(6,867)
1,594,355
10,31953,818(181,775)(141,237)(6,393)(106,289)(93,776)
8,046,975
6,867(1,656,483)
720
6,398,079¥

5,339,492
1,835,796
16,566
6,637(8,946)
1,612,490
19,23041,813(10,986)
71,638156,069(15,796)
133,259
9,197,262
15,598(1,623,599)
739
7,590,000

Cash Flows from Investing Activities
Proceeds from time deposits
Payments for purchases of property and equipment
Reimbursement of security deposits to tenants
Proceeds from security deposits from tenants
Net cash used in investing activities–(4,999,910)(1,173,235)
659,330(5,513,815)

2,260,000(1,029,940)(1,608,402)
522,913
144,571

Cash Flows from Financing Activities
Proceeds from short-term debt
Repayment of short-term debt
Proceeds from short-term investment corporation bonds
Redemption of short-term investment corporation bonds
Proceeds from long-term debt
Repayment of long-term debt
Distributions to unitholders
Net cash provided by financing activities

7,580,000(12,930,000)
5,991,530(4,000,000)
13,350,000(6,750,000)(5,332,352)(2,090,822)

2,800,000(24,800,000)––
22,000,000–(5,384,677)(5,384,677)

Net Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period
Cash and Cash Equivalents at End of Period(1,206,558)
34,422,911
33,216,353

2,349,894
32,073,017
34,422,911

The accompanying notes to financial statements are an integral part of these statements.

¥¥

1. ORGANIZATION
Nomura Real Estate Office Fund, Inc. (the “Company”) is a real estate investment corporation formed to own and invest primarily in officeproperties. The Company is externally managed by a licensed asset management company, Nomura Real Estate Asset Management Co.,
Ltd. (“NREAM”). NREAM is a wholly-owned subsidiary of Nomura Real Estate Holdings, Inc.
On August 7, 2003, the Company was incorporated under the Law Concerning Investment Trusts and Investment Corporations (the“Investment Trust Law”) of Japan. On December 4, 2003, the Company was listed on the Tokyo Stock Exchange as the 9th J-REIT andstarted operations on the following day. As of April 30, 2010, the Company owned a portfolio of 51 office properties containing an aggregate of approximately 439,139.15 square meters of leasable area and leased office space to 686 tenants.

2. BASIS OF PRESENTATIONThe Company maintains its accounting records and prepares its financial statements in accordance with accounting principles generally accepted in Japan (“Japanese GAAP”), including provisions set forth in the Investment Trust Law of Japan, the Corporation Law of Japan, theFinancial Instruments and Exchange Law of Japan and related regulations, which are different in certain respects as to the application anddisclosure requirements of International Financial Reporting Standards.
The accompanying financial statements are a translation of the audited financial statements of the Company, which were prepared inaccordance with Japanese GAAP and were presented in the Securities Report of the Company filed with the Kanto Local Finance Bureau.
In preparing the accompanying financial statements, certain reclassifications and modifications have been made to the financial statements
issued domestically in order to present them in a format that is more familiar to readers outside Japan. In addition, the notes to financial
statements include certain information that might not be required under Japanese GAAP but is presented herein as additional information.
Amounts have been rounded to the nearest thousand of yen in the accompanying financial statements and the notes thereto, whereas
amounts were truncated in the Japanese financial statements prepared in accordance with Japanese GAAP.
The Company’s fiscal period is a six-month period which ends at the end of April or October. The Company does not prepare consolidated financial statements because it has no subsidiaries.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESCash and cash equivalents
Cash and cash equivalents consist of cash on hand, deposits placed with banks and short-term investments that are highly liquid,readily convertible to cash, with an insignificant risk of market value fluctuation, and with a maturity of three months or less whenpurchased.
Property and equipment (Except for leased assets)
Property and equipment are stated at cost, which includes the purchase price and related costs for acquisition, less accumulated
depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the fixed assets outlined below:
Buildings
3 - 70 years
Structures
2 - 45 years
Machinery and equipment
3 - 15 years
Tools, furniture and fixtures
2 - 18 years
Intangible assets (Except for leased assets)
Intangible assets are amortized by the straight-line method.
Leased assets
Depreciation of leased assets under finance lease transactions, excluding those in which the ownership of the leased assets isdeemed to be transferred to the lessee, is calculated by the straight-line method, over the lease term with no residual value.
Impairment of fixed assets
The Company reviews fixed assets for impairment whenever events or changes in circumstances indicate that the carrying value of its
fixed assets may not be recoverable. An impairment loss is recognized if the carrying value of an asset exceeds the aggregate estimated future cash flows. If a fixed asset is determined to be impaired, it is written down to its recoverable amount and the write-down
is recorded as an impairment loss during the period in which it occurs. No impairment losses have been recognized to date.
Deferred investment corporation bond issuance costs
Deferred investment corporation bond issuance costs are amortized by the straight-line method over the respective terms of thebonds.
Accounting treatment of beneficial interests in real estate
All assets and liabilities held in trust, for which the real estate in possession of the Company was entrusted, and all related earnings
and expenses incurred are reflected in the accompanying balance sheets and statements of income and retained earnings, respectively.
Revenue recognition
Operating revenues consist of rental revenues including base rents and common area charges, and other operating revenues including utility charge reimbursements, parking space rental revenues and other income. Rental revenues are generally recognized on an

38

39

accrual basis over the life of each lease. Utility charge reimbursements are recognized when earned and their amounts are reasonably
estimated.
Property related taxes
Property and equipment is subject to property related taxes, urban planning taxes and depreciable property taxes on a calendar year
basis. These taxes are generally charged to income during the period. The sellers of the properties were liable for property related
taxes for the calendar year including the period from the date of purchase by the Company through the end of the year since thetaxes are imposed on the owner registered in the record as of January 1st based on the assessment made by the local government.
No such taxes were imposed for the six-month period ended October 31, 2009 as the Company did not acquire any properties. The
capitalized property related taxes amounted to ¥11,876 thousand for the six-month period ended April 30, 2010.
Income taxes
Deferred tax assets and liabilities are computed based on the differences between the financial statements and income tax bases ofassets and liabilities using the applicable statutory tax rates.
Consumption taxes
Consumption taxes received and paid are not included in the accompanying statements of income and retained earnings.

6. SHORT-TERM DEBT
Short-term debt as of April 30, 2010 and October 31, 2009 consist of the following:
As of April 30, 2010
Amount(Thousandsof Yen)Unsecured loans from banks due on December 24, 2009
Unsecured loans from banks due on December 24, 2009
Unsecured loans from a financial institution due on February 26, 2010
Unsecured loans from an insurance company due on February 26, 2010
Unsecured loans principally from banks due on February 26, 2010
Unsecured loans from banks due on March 26, 2010
Unsecured loans from banks due on June 24, 2010
Unsecured loans from insurance companies due on August 26, 2010
Unsecured loans from banks due on August 26, 2010
Unsecured loans principally from banks due on December 8, 2010
Unsecured loans from banks due on December 24, 2010
Unsecured loans from banks due on February 26, 2011
Unsecured loans from banks due on February 26, 2011
Unsecured loans from a financial institution due on February 28, 2011
Unsecured loans from a bank due on June 25, 2016 (Note 2)

–
–
–
–
–
–
¥ 2,800,000
2,000,000
4,000,000
2,500,000
2,580,000
7,500,000
1,000,000
2,000,000
500,000¥24,880,000

Weighted-averageinterest rate
(Note1)

–
–
–
–
–
–

1.12727%
1.65500%
0.90727%
1.04000%
1.12727%1.68000%
1.10727%
1.10727%
1.97000%

As of October 31, 2009
AmountWeighted-average(Thousandsinterest rateof Yen)(Note1)¥ 5,000,000
3,930,000
3,000,000
1,000,000
2,500,000
2,000,000
2,800,000
2,000,000
4,000,000–––––
500,000¥26,730,000

1.44333%
1.17545%
1.77500%
1.50625%
1.48375%
1.18417%1.22545%1.65500%
1.01455%–––––
1.97000%

Derivative financial instruments
The Company utilizes interest-rate swap contracts as derivative financial instruments only for the purpose of hedging its exposure tochanges in interest rates. The Company deferred recognition of gains or losses resulting from changes in the fair value of interest-rate
swap contracts which meet the criteria for deferral hedge accounting.
Although the deferred hedge treatment is generally applied, the Company applies special treatment to those interest-rate swap
contracts that meet the criteria for such special treatment. Under the special treatment, interest-rate swaps are not remeasured at fairvalue; instead, the net amount paid or received under the interest rate swap contract is recognized and included in interest expense or
income.

The Company entered into ¥40,000 million credit facilities in the form of commitment lines with five financial institutions for the sixmonth periods ended April 30, 2010 and October 31, 2009. The total unused amounts of such credit facilities were ¥40,000 million as ofApril 30, 2010 and ¥33,000 million as of October 31, 2009.

4. CASH AND CASH EQUIVALENTS

7. LONG-TERM DEBT

Total

Note 1: The weighted-average interest rate is weighted by the balance of each borrowing at the end of the period and rounded to the nearest fifth decimal place. As for the borrowings,
which were hedged by interest-rate swaps for the purpose of avoiding interest rate fluctuation risk, the swapped interest rates are used to calculate the weighted average of interest.
Note 2: Installments of ¥250 million will be made on the 25th day of every sixth month starting on December 25, 2009, with the remaining payment of ¥6,750 million to be repaid on
June 25, 2016.

Long-term debt as of April 30, 2010 and October 31, 2009 consists of the following:
Cash and cash equivalents as of April 30, 2010 and October 31, 2009 consist of the following:

As of April 30, 2010
AmountWeighted-average(Thousands ofinterest rate
Yen)
(Note 1)Thousands of Yen

Cash and bank deposits
Cash and cash equivalents

As of April 30, 2010

As of October 31, 2009¥33,216,353¥33,216,353¥34,422,911¥34,422,911

5. SCHEDULE OF PROPERTY AND EQUIPMENT
Property and equipment as of April 30, 2010 and October 31, 2009 consist of the following:Thousands of Yen
As of April 30, 2010
Acquisition Costs

Land
Buildings and structures

Accumulated depreciation
Machinery and equipment

Accumulated depreciation
Tools, furniture and fixtures

Accumulated depreciation
Construction in progress
Land in trust
Buildings and structures in trust

Accumulated depreciation
Machinery and equipment in trust

Accumulated depreciation
Tools, furniture and fixtures in trust

Accumulated depreciation
Leased assets in trust

Accumulated depreciation
Construction in progress in trust

Total

40

Book Value

As of October 31, 2009
Acquisition Costs

Book Value¥ 57,405,168 ¥ 57,405,168 ¥ 54,948,317 ¥ 54,948,317
27,308,860
25,611,320(1,840,648)
25,468,212(1,403,845)
24,207,475
590,835
465,199(87,515)503,320(64,660)
400,539
6,636
4,911(1,050)
5,586
(556)
4,355
6,210
6,210
–
–
208,581,573 208,581,573 208,581,573 208,581,573
96,983,115
96,404,489(15,639,650)
81,343,465 (14,288,144)
82,116,345
824,469
764,825(414,206)
410,263(381,312)
383,513
222,325
217,255(88,716)
133,609(73,700)
143,555
30,94630,946(12,721)
18,225(9,330)21,61674,95674,95682,141
82,141¥373,950,587 ¥373,950,587 ¥370,889,429 ¥370,889,429

Unsecured loans principally from banks due on December 8, 2010–
Unsecured loans from banks due on February 26, 2011–
Unsecured loans from banks due on June 10, 2011
¥ 8,500,000
Unsecured loans from banks due on August 25, 2011
4,500,000
Unsecured loans from banks due on August 26, 2011
4,000,000
Unsecured loans from banks due on September 25, 2011
2,000,000
Unsecured loans from banks due on February 26, 2012
11,000,000
Unsecured loans from banks due on June 24, 2012
12,000,000
Unsecured loans principally from insurance companies due
5,000,000
on August 26, 2012
Unsecured loans from a financial institution due on August 26, 2012
1,000,000
Unsecured loans from banks due on August 26, 2012
7,500,000
Unsecured loans from banks due on September 25, 2012
2,000,000
Unsecured loans from banks due on November 4, 2012
10,000,000
Unsecured loans from banks due on December 27, 2012
5,000,000
Unsecured loans from a bank due on February 26, 2013
1,000,000
Unsecured loans from an insurance company due on February 26, 2013
2,000,000
Unsecured loans from banks due on February 26, 2013
4,000,000
Unsecured loans from banks due on December 8, 2013
7,500,000
Unsecured loans from insurance companies due on March 19, 2014
4,000,000
Unsecured loans from banks due on December 24, 2014
6,350,000
Unsecured loans from an insurance company due on February 26, 2015
3,000,000
Unsecured loans from a financial institution due on February 26, 2015
3,000,000
Unsecured loans principally from insurance companies due on June
8,000,000
24, 2015
Unsecured loans from a bank due on June 25, 2016 (Note 2)
9,250,000
Total¥120,600,000

As of October 31, 2009
AmountWeighted-average(Thousandsinterest rateof Yen)(Note 1)

– ¥ 2,500,000–
7,500,000
1.43200%
8,500,000
1.44800%
4,500,000
1.63825%
4,000,000
1.43950%
2,000,000
1.89764%
11,000,000
1.39575%
12,000,000

1.12182%1.68000%
1.43200%
1.44800%
1.63825%
1.43950%
1.89764%
1.39575%

1.43750%

5,000,000

1.43750%

1.53625%
1.46000%
1.61150%
1.51175%
1.87200%
1.75250%
1.99250%1.22636%
1.68680%1.98000%
1.55800%
1.91875%
1.69300%

1,000,000
7,500,000
2,000,000
10,000,000
5,000,000
1,000,000
2,000,000–
7,500,000
4,000,000–
3,000,000–

1.53625%
1.46000%
1.61150%
1.51175%
1.87200%
1.75250%
1.99250%–
1.68680%1.98000%–
1.91875%–

2.31750%

8,000,000

2.31750%

1.97000%

9,500,000¥117,500,000

1.97000%

Note 1: The weighted-average interest rate is weighted by the balance of each borrowing at the end of the period and rounded to the nearest fifth decimal place. As for the borrowings,
which were hedged by interest-rate swaps for the purpose of avoiding interest rate fluctuation risk, the swapped interest rates are used to calculate the weighted average of interest.
Note 2: Installments of ¥250 million will be made on the 25th of every sixth month starting on December 25, 2009, with the remaining payment of ¥6,750 million to be repaid on June25, 2016.

The scheduled repayment amounts of long-term debt for each of the five years after the balance sheet date (excluding the current
portion of long-term debt) are as follows.
Long-term debt

1-2 years

2-3 years

3-4 years

30,500,000

50,000,000

12,000,000

Thousands of Yen
4-5 years

12,850,000

41

8. INVESTMENT CORPORATION BONDS

11. RELATED PARTY TRANSACTIONSInvestment Corporation Bonds

Parent Company, corporate shareholders and other

Details of investment corporation bonds outstanding are summarized as follows:

Not applicable
As of April 30, 2010

As of October 31, 2009

Directors, individual shareholders and otherAmount(Thousands of
Yen)

Weightedaverage interest
rate

Amount(Thousands of
Yen)

Weightedaverage interest
rateFirst Series of Unsecured Investment Corporation Bonds
Due on March 16, 2015

¥ 5,000,000

1.85000%¥ 5,000,000

1.85000%

Second Series of Unsecured Investment Corporation Bonds
Due on March 16, 2020

5,000,000

2.47000%

5,000,000

2.47000%

Third Series of Unsecured Investment Corporation Bonds
Due on November 29, 2010

10,000,000

1.19000%

10,000,000

1.19000%

Fourth Series of Unsecured Investment Corporation Bonds
Due on November 30, 2015

10,000,000

2.05000%

10,000,000

2.05000%

Fifth Series of Unsecured Investment Corporation Bonds
Due on March 19, 2012

5,000,000

1.61000%

5,000,000

1.61000%

Sixth Series of Unsecured Investment Corporation Bonds
Due on March 17, 2017

5,000,000

2.21000%

5,000,000

2.21000%

Seventh Series of Unsecured Investment Corporation Bonds
Due on March 17, 2028

4,500,000

2.90000%

4,500,000

2.90000%

Total

Not applicable

Subsidiary companies and otherNot applicable

Fellow subsidiary companies and otherNot applicable¥44,500,000¥44,500,000

Short-term Investment Corporation Bonds

12. INCOME TAXESThe Company, as an investment corporation, is subject to corporate income taxes at a statutory tax rate of approximately 40% for the sixmonth periods ended April 30, 2010 and October 31, 2009. However, the Company may deduct dividend distributions paid to its unitholders from its taxable income amounts, provided such distributions meet the requirements under the Special Taxation Measures Law ofJapan. Under this law, an investment corporation must meet a number of tax requirements, including a requirement to distribute in excessof 90% of its distributable income for the fiscal period, in order to deduct such amounts. If the investment corporation does not satisfy allof the requirements, the entire taxable income of the investment corporation will be subject to regular corporate income taxes.
Since the Company distributed approximately 100% of its distributable income in the form of cash distributions totaling ¥5,034,529
thousand and ¥5,338,432 thousand for the six-month periods ended April 30, 2010 and October 31, 2009, respectively, such distributions
were treated as deductible distributions for purposes of corporate income taxes. The following summarizes the significant differences
between the statutory tax rate and the effective tax rate:

Details of short-term investment corporation bonds outstanding are summarized as follows:
As of April 30, 2010

Fourth Series of Short-term Investment Corporation Bonds
due on June 24, 2010Total

For the period
from November 1, 2009
to April 30, 2010

As of October 31, 2009

For the period
from May 1, 2009
to October 31, 2009

Amount(Thousands of
Yen)

Redemption
price(Thousands ofYen)

Amount(Thousands of
Yen)

Redemption
price(Thousands ofYen)

Statutory tax rate

39.33%

39.33%

Deductible cash distributions(39.32)(39.32)

Other

0.01

0.01

¥1,999,818¥2,000,000––

Effective tax rate

0.02%

0.02%

¥1,999,818¥2,000,000––

13. FINANCIAL INSTRUMENTS
9. UNITHOLDERS’ EQUITYThe Company issues only non-par value investment units in accordance with the Investment Trust Law. The entire amount of the issue
price of new units is designated as stated capital. The Company is required to maintain net assets of at least ¥50,000 thousand as set forthin the Investment Trust Law.

Effective the six-month period ended April 30, 2010, “Accounting Standard for Financial Instruments” (Accounting Standards Board of Japan (“ASBJ”) Statement No.10, March 10, 2008) and “Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance
No.19, March 10, 2008) have been applied.

Overview

10. PER UNIT INFORMATIONThe net asset values per unit and the net income per unit as of April 30, 2010 and October 31, 2009 were as follows:
For the period
from November 1, 2009
to April 30, 2010

For the period
from May 1, 2009
to October 31, 2009

Net asset values per unit

¥624,306¥625,301

Net income per unit

¥ 16,500¥ 17,496

The net income per unit is calculated by dividing net income by the weighted-average number of units outstanding for the respective
six-month period.
Note: The basis for calculating net income per unit is as follows.

As of October 31, 2009

¥5,034,577¥5,338,470

Amount not available to ordinary unitholders (Thousands of Yen)––

Net income available to ordinary unitholders (Thousands of Yen)

¥5,034,577¥5,338,470

305,123

305,123

Net income (Thousands of Yen)

Average number of units during the period

42

As of April 30, 2010

(1) Policy for Financial Instruments
Upon acquisition of property-related assets, the Company may raise funds through certain financing methods including borrowings, issuance of investment corporation bonds including short-term investment corporation bonds (“investment corporation bonds”), and issuance of investment units. In financing through interest-bearing debt, to secure stable financing capability and reduce future risk of risinginterest rates, the Company’s investment policy is to secure longer-term, fixed-rate borrowings with well-diversified maturities.
The Company enters into derivative transactions only for the purpose of reducing risk of future interest rate fluctuations and does
not engage in speculative transactions.
(2) Type and Risk of Financial Instruments and Related Risk Management
Debts and investment corporation bonds are primarily used to fund the acquisition of property-related assets as well as the repayment
of debts and redemption of investment corporation bonds. The Company is exposed to liquidity risk of being unable to meet its obligations on scheduled due dates. The Company controls and limits such risk by diversifying not only the financial institutions, but also thetype of financing to include the effective use of surplus funds and direct financing from the capital markets such as issuance of investment units. In addition, the Company is exposed to the market risk arising from fluctuations in interest rates on its floating-rate debts.
However, the effect of such risk on the operation of the Company is limited by maintaining the LTV ratio at low levels and the ratio of
long-term fixed-rate debts to total debt at high levels. Furthermore, the Company may utilize derivative transactions (interest-rate swap
transactions) as a hedging instrument to reduce the market risk under floating-rate debts by swapping such floating-rate interest payments for fixed-rate interest payments.

43

Bank deposits are held as a means of investing surplus funds, and the Company is exposed to the credit risk that financial institutions may default. However, the effect of such risk is limited by diversifying the financial institutions with which surplus funds are deposited.
Security deposits represent funds deposited by tenants, and the Company is exposed to the risk of returning deposits in the eventof a tenant terminates the rental contract. However, the effect of such risk is limited by reserving sufficient funds to allow the Company
to meet the obligation to return such deposits.
(3) Supplementary Explanation on Estimated Fair Value of Financial Instruments
The fair value of financial instruments is based on the quoted market price, if applicable. When there is no quoted market price available, fair value is reasonably estimated. Certain assumptions are used for the estimation of fair value. Accordingly, the result of such
estimation may change if different assumptions are used. Furthermore, the contractual amounts of derivative transactions stated in “17.
Derivatives and Hedge Accounting” below do not represent the market risk involved in these derivative transactions.

Note 5: Redemption schedule for investment corporation bonds and debt

Short-term investment corporation bonds

Thousands of Yen

Due within
one year

After one year,
within two years

After two years,
within threeyears

2,000,000–––

After three years, After four years,
within four years within five years

After five years––

Short-term debt

8,380,000

–

–

–

–

–

Investment corporation bonds

10,000,000

5,000,000––

5,000,000

24,500,000

Long-term debt

16,500,000

30,500,000

50,000,000

12,000,000

12,850,000

15,250,000

36,880,000

35,500,000

50,000,000

12,000,000

17,850,000

39,750,000

Total

14. INVESTMENT AND RENTAL PROPERTIES
Fair Value of Financial Instruments
The following table summarizes the carrying value and the estimated fair values of financial instruments as of April 30, 2010. The following
table does not include financial instruments whose fair value is extremely difficult to estimate (see Note 3).
Thousands of Yen
Carrying Value(Note 1)

Fair Value(Note 1)

Difference

Effective the six-month period ended April 30, 2010, “Accounting Standard for Disclosures about Fair Value of Investment and Rental Property” (ASBJ Statement No.20, November 28, 2008) and “Guidance on Accounting Standard for Disclosures about Fair Value of Investment
and Rental Property” (ASBJ Guidance No.23, November 28, 2008) have been applied.
The Company owns in its portfolio certain office buildings (including land) for lease located in Tokyo and other areas. The following tablesummarizes the carrying value and the estimated fair value of these properties as of April 30, 2010.
Thousands of Yen(i)Cash and bank deposits

14,358,510

14,358,510

–

(ii)

Cash and bank deposits in trust

18,857,843

18,857,843–

As of April 30, 2010(iii) Short-term investment corporation bonds(1,998,818)(1,998,818)–

375,851,491(iv) Short-term debt

(8,380,000)(8,380,000)–(v) Current portion of investment corporation bonds(10,000,000)(10,023,500)

23,500(vi) Current portion of long-term debt

(16,500,000)(16,548,447)

48,447(vii) Investment corporation bonds(34,500,000)(34,701,300)

201,300(viii) Long-term debt

(120,600,000)(121,777,774)

1,177,774–––(ix) Derivative transactions

Note 1: The numbers in parenthesis indicate liabilities.
Note 2: Method for determining the fair value of financial instruments and derivative transactions(i) Cash and bank deposits and (ii) Cash and bank deposits in trust
As these items are settled within a short-term period, their fair value is nearly equal to the carrying value. Therefore, for these items, the Carrying Value is reported as the
Fair Value.
(iii) Short-term investment corporation bonds and (iv) Short-term debt
As these items are settled within a short-term period, their fair value is nearly equal to the carrying value. Therefore, for these items, the Carrying Value is reported as the
Fair Value.
(v) Current portion of investment corporation bonds and (vii) Investment corporation bonds
The fair value of investment corporation bonds issued by the Company is determined based on their market prices.
(vi) Current portion of long-term debt and (viii) Long-term debt
For floating-rate long-term debt, the carrying value is reported as it is considered to be approximately equal to the fair value because such debt reflects the market interest
rates in a short-term period. (However, the fair value of certain floating-rate long-term debt that qualifies for the special treatment of interest-rate swaps (see “17. Derivatives and Hedge Accounting”) is determined by discounting the sum of its principal and interest payments net of any cash flows from the interest-rate swap at a rate
reasonably estimated to be applicable to similar fixed-rate debt.) The fair value of fixed-rate long-term debt is determined by discounting the sum of its principal and interest
payments at a rate reasonably estimated to be applicable to similar fixed-rate debt.
(ix) Derivative transactions
Refer to “17. Derivatives and Hedge Accounting”.
Note 3: The fair value of security deposits (with a carrying value of ¥4,030,823 thousand) and security deposits in trust (with a carrying value of ¥18,516,394 thousand) that have been
deposited from tenants under lease contracts are not disclosed because they do not have any market price and their effective deposit period from the lease inception to tenant’s
termination of the rental contract cannot be reliably determined, thus making it impossible to reasonably estimate their future cash flows, and therefore, it is considered to be
extremely difficult to estimate their fair value.
Note 4: Redemption schedule for cash and bank deposit and cash and bank deposit in trustThousands of Yen

Carrying Value

3,061,158

Fair Value
As of October 31, 2009

As of April 30, 2010

372,790,333

367,066,000

Note 1: The Carrying Value represents the acquisition cost less accumulated depreciation.
Note 2: The components of net change included increases mainly due to the acquisition of NOF Nagoya Fushimi Building (¥4,228,600 thousand).
Note 3: The fair value as of April 30, 2010 represents the sum of the appraisal values estimated by external real estate appraisers.

The real estate rental revenues and expenses for the six-month period ended April 30, 2010 is presented in “15. Breakdown of Real Estate
Rental Revenues and Expenses.”

15. BREAKDOWN OF REAL ESTATE RENTAL REVENUES AND EXPENSES
Real estate rental revenues and expenses for the six-month period ended April 30, 2010 and October 31, 2009 consist of the following:Thousands of Yen

Real estate rental revenues

For the period
from November 1, 2009
to April 30, 2010

For the period
from May 1, 2009
to October 31, 2009¥13,686,232¥14,203,926

12,502,676

12,871,402

Rental revenues

10,208,784

10,530,796

Common area charges

Rental revenues

2,293,892

2,340,606

Other rental revenues

1,183,556

1,332,524

Parking revenues

280,740

292,999

Incidental income

833,623

970,652

Other miscellaneous revenues

69,19368,873

5,667,025

5,761,133

1,071,347

1,088,143

Real estate rental expenses

Due within one
year

After one year,
within two years

After two years,
within three
years

Property management fees

247,517

262,147

Cash and bank deposits

14,358,510

–

–

–

–

–

Property and other taxes

1,129,932

1,129,535

Cash and bank deposits in trust

18,857,843

–

–

–

–

–

Utility expenses

838,194

953,992

33,216,353

–

–

–

–

–

Casualty insurance

26,12927,218Total

After three years, After four years,
within four years within five years

After five years

Property management costs

Repairs and maintenance
Depreciation
Other rental expenses
Profit44

Change during the period

246,706

225,282

1,865,203

1,835,578

241,997239,238¥ 8,019,207¥ 8,442,793

45

16. LEASES
Finance lease agreements, excluding those in which the ownership of the leased assets is deemed to be transferred to the lessee, aremainly for tools, furniture and fixtures in trust. Depreciation of leased assets under finance lease transactions excluding those in which theownership of the leased assets is deemed to be transferred to the lessee are calculated by the straight-line method, over the lease periodwith no residual value.
The Company, as lessor, enters into lease agreements for which fixed monthly rents are due in advance with a lease term of generally
two years for offices. The future minimum rental revenues under existing non-cancelable operating lease agreements as of April 30, 2010
and October 31, 2009 are summarized as follows:
Thousands of Yen
As of April 30, 2010

As of October 31, 2009

Due within one year

¥5,230,358¥5,339,508

Due after one year

26,857,725

29,267,009¥32,088,083¥34,606,517

Total
		

17. DERIVATIVES AND HEDGE ACCOUNTING
Derivative transactions as of October 31, 2009
The Company has entered into interest-rate swap contracts with several Japanese financial institutions to hedge its variable rate long-term
debt obligations. The Company utilizes interest-rate swap contracts, which are derivative financial instruments, only for the purpose of
mitigating future risk of fluctuation of interest rates, but does not enter into such transactions for speculative or trading purposes. The
Company entered into such derivative transactions to hedge risk in accordance with its Articles of Incorporation and the established risk
management policies of NREAM.
The following summarizes the notional amount and the estimated fair value of the interest-rate related positions outstanding as of
October 31, 2009:
Thousands of Yen
Notional amount

Estimated fair value

Unrealized loss

¥84,500,000(¥955,814)(¥955,814)

As of October 31, 2009
Interest-rate swaps:
Received/floating and paid/fixed

Derivative transactions as of April 30, 2010
(1) There were no derivative financial instruments not subject to hedge accounting.
(2) Derivative financial instruments subject to hedge accounting were as follows:
Thousands of Yen
Hedge accounting
methodType of derivative
instruments

Main hedged item

Specialtreatment ofinterest-rate
swapsInterest-rate
swaps:
Received/floating
and paid/fixedLong-term debt

Notional amountDue after one year

90,850,000

83,350,000

Method used for
determining fair value

Fair value(*)* Since the derivative financial instruments qualifying for the special treatment of interest-rate swaps are accounted for as one transaction together with their hedged item, long-term
debt, the fair value of these derivatives is included in that of related long-term debt (see “13. Financial Instruments (Note 2) (vi) Current portion of long-term debt and (viii) Long-termdebt” above).

46

47

Business Structure
Asset Custodian
Administrator ofUnitholders Register
General Administration(Accounting, etc.)
Mitsubishi UFJ Trust andBanking Corporation

WebsiteNomura Real Estate
Office Fund, Inc.

Asset Custody
Agreement

Debt Financing /Issue of Investment
Corporation Bonds

Administration
Agreement, etc.

Financial Instituions,etc. / Investors ofInvestment
Corporation Bonds

Nomura Office Fund’s Website
The Company strives to provide accurate and timely disclosure of information by utilizing the website.
• Strength of NOF, Asset Management Policies, Corporate Profile• Portfolio Summary, Portfolio Data, Occupancy Rates, Major Tenants• News, Latest Data, Performance, Distributions, Calendar
We continue to provide information timely and strive to enhance the contents of the website.
(URL) http://www.nre-of.co.jp/english/

Unitholders’ Meeting

AuditorBoard of Directors’Meeting

Ernst & Young
ShinNihon LLC

Liabilities
Capital Investment

Asset

Rents, etc.

Unitholders

EquityProperty
Management
Agreement

Property
Management

Unitholders

Trading

Investment
Office Buildings(Real Estate
Related Assets)

RepaymentofPrincipal &Interest

Property Management
Companies

Instructions forRents andManagement

Nomura Real Estate Development
Co., Ltd.
Nomura Building
Management Co., Ltd., etc.

RentalStrategies,
Plans ofRepairs, etc.

Asset Management
Services Agreement

Posting the news by year andsubject

Distribution
Information andResearch-related
Service Providers

Asset Management Company
Property
Information

Service
Agreement, etc.

Nomura Real Estate
Development Co., Ltd.
Nomura Real Estate
Urban Net Co., Ltd.
Nomura Real
Estate Investment
Management Co., Ltd.

Posting the latest information on the top page
*RSS compatible

Corporate Data
Corporate Name
Nomura Real Estate Office Fund, Inc.
Corporate Office8-5-1 Nishi Shinjuku Shinjuku-ku, Tokyo
160-0023, Japan
http://www.nre-of.co.jp/english/
Date of Incorporation
August 7, 2003
Stock Listing
Tokyo Stock Exchange (Securities Code: 8959)
Fiscal Period
Six months ending on April 30 and October 31
Capital¥185,455,446,935 (as of April 30, 2010)
Number of Units Issued
305,123 (as of April 30, 2010)
Number of Unitholders
12,970 (as of April 30, 2010)

Posting summaries, maps, occupancy rates, etc.,of the portfolio

Transfer Agent
Mitsubishi UFJ Trust and Banking Corporation
1-4-5 Marunouchi Chiyoda-ku, Tokyo 100-8212, Japan
Business Office of the Transfer Agent
Corporate Agency Department
Mitsubishi UFJ Trust and Banking Corporation
7-10-11 Higashisuna Koto-ku, Tokyo 137-8081, Japan
Tel: +81-3-5683-5111
Independent Auditors
Ernst & Young ShinNihon LLC
Hibiya Kokusai Bldg. 2-2-3 Uchisaiwai-cho Chiyoda-ku,
Tokyo 100-0011, Japan
Investor Relations
For further information, please contact the Asset Management
Company:
Nomura Real Estate Asset Management Co., Ltd.
8-5-1 Nishi Shinjuku, Shinjuku-ku, Tokyo 160-0023, Japan
Tel: +81-3-3365-0507

Disclaimer
This semiannual report includes translations of certain Japanese documents originally filed under the Securities and Exchange Law
of Japan. This report was prepared in English solely for the convenience of and reference by readers outside Japan and should not be
considered as a disclosure statement. The original Japanese documents always govern the meaning and interpretation.
In general, accounting principles and practices used by real estate investment corporations in Japan (“J-REITs”) in preparing its financial
statements conform with accounting principles generally accepted in Japan (“Japanese GAAP”). However, they may differ fromgenerally accepted accounting principles applied in certain other countries. Potential investors should consult their own professional
advisors for an understanding of the differences between Japanese GAAP and generally accepted accounting principles in the UnitedStates (“U.S. GAAP”) or other jurisdictions and how those differences might affect the financial information contained herein.
Estimates for Nomura Office Fund’s future operating results contained in this semiannual report are forward-looking statements andare based on information currently available to Nomura Office Fund and its asset management company and are subject to risks anduncertainties. Consequently, these projections should not be relied upon as the sole basis for evaluating Nomura Office Fund. Actual
results may differ substantially from the projections depending on a number of factors.

48

Posting the latest fund data