Financial Results of 9th Fiscal Period(Ended April 30, 2008)

Contents

1. Overview of Fund Management• Highlights of the 9th Fiscal Period• General Overview of the 9th Fiscal Period• 【Ref.】Summary of Equity Financing (PO) (1)• 【Ref.】Summary of Equity Financing (PO) (2)

2
3
4
5

2. Future Management Policies

3. Details of the Financial Results

Appendix• Income Statement

13• List of Property

31• Balance Sheet

14• Earnings by Property

32• Cash Distribution

15• Interest-Bearing Debts

16• Unitholders• 10th Fiscal Period (October 2008)
Forecast

17
18

4. Fund Management Results• Real Estate Trading Market

7• Results of Investment Sector

20• Office Leasing Market

8• Portfolio Status (1)21• J-REIT Market

9• Portfolio Status (2)22• Future Growth Strategies (1)10• Diversification of Tenants

23• Future Growth Strategies (2)11• List of End-of-Period Appraisal Value 33• Map of Property

34• Acquisition Channel of Property

35• Fund Summary

36• Cash Flow Statement37• Unit Price and Market Capitalization38• Organization of the AssetManagement Company

39• Results of Asset Management Sector 24• Increase in Rent of Portfolio

25• End-of-Period Appraisal Value

26• Move-ins and Move-outs

27• End-of-Period Financial Status (1)28• End-of-Period Financial Status (2)29June 2008

1. Overview of Fund Management

Highlights of the 9th Fiscal Period (November 1, 2007 ~ April 30, 2008)
Performance of the 9th Period (182 business days)

Forecasts
as of Dec. 14, 2007

Comparison
with Actual Results(April 2008)

Comparison
with the Previous Period

Operating Revenues¥12,183 mln+ ¥214 mln+ 1.8 ％

¥12,109 mln+ ¥73 mln

+ 0.6 ％

Operating Income¥5,823 mln+ ¥97 mln

+ 1.7 ％

¥5,636 mln+ ¥186 mln+ 3.3 ％Net Income¥4,499 mln+ ¥13 mln

+ 0.3 ％

¥4,334 mln+ ¥165 mln+ 3.8 ％Cash Distribution
per Unit¥16,923 / unit

+ ¥5 / unit

+ 0.0 ％

¥16,300 / unit

+ ¥623 / unit

+ 3.8 ％

9th Period

Changes in Performance
Net Income

Operating Revenues

Cash Distribution per Unit(¥)(¥mln)(¥mln)

6,000

16,00013,35314,00018,0004,466 4,486 4,499

11,968 12,183

12,00010,0006,656

15,90515,15014,5203,484 3,596

8,641

8,000
6,000

4,000

16,35015,63816,0004,229

10,739 11,090
9,810

16,750 16,918 16,923

4,989

5,000

14,11414,000

7,106

3,000

4,531

2,000

4,000

2,606 2,681

12,000
1,526
10,273

2,000
Apr.
2004

Oct.
2004

Apr. Oct.
2005 2005

1. Overview of Fund Management

Apr.
2006

Oct.
2006

Apr. Oct.
2007 2007

Apr.
2008

Oct.
2008
(Forecast)

1,000

Apr. Oct.
2004 2004

Apr. Oct.
2005 2005

Apr. Oct.
2006 2006

Apr. Oct.
2007 2007

Apr.
2008

Oct.
2008
(Forecast)

10,000

Apr. Oct.
2004 2004

Apr. Oct. Apr. Oct.
2005 2005 2006 2006

Apr. Oct.
2007 2007

Apr.
2008

Oct.
2008
(Forecast)2General Overview of the 9th Fiscal Period

Higher operating revenue, operating income, and cash
distribution per unit for 9 periods in a row

Performance

Activities

Continued New Investment

Raised the Level of Rent

z JCB Sapporo Bldg. （¥3.7 bln）
z Toho Edogawabashi Bldg. （¥2.08 bln）
z SORA Shin-Osaka 21（¥19.25 bln）
z NOF Tenjin-Minami Bldg.（¥3.92 bln）*

z Average rent of the portfolio

Total ¥28.95 bln*
Backgrounds

Relief of market
demand/supply imbalance

＋2.5％
2.5％
（Comparison with the previous term）

Diversified the Methodof Funding andOperated Stable Financing
z Issued short-term bonds
aggregate amount of ¥20 bln
z LTV at end of

9th period ：46.8％

Office market stability
supported by steady demand

Change in investment
posture of financial institutions

Equity Financing (PO) (Approx. ¥28.7 bln raised)・ Secure property acquisition capacity
・ Maintain conservative financial strategy （LTV: 46.8%→38.8%）*The Fund will acquire the Property on either September 26, 2008, December 26, 2008, or March 27, 2009 depending on the seller’s leasing status (occupancy rates and average rent) at each timing,
according to the agreement on purchase and sale of the trust beneficial interest . The acquisition price in the above table is ¥3,925, median of the agreed price range from ¥3,750 to ¥4,100.

1. Overview of Fund Management

3【Ref.】Summary of Equity Financing (PO) (1)Changes in Book Value per Unit

Summary of the Public Offering（¥）
700,000

622,553

Aggregate Issue Price
Aggregate Issue Price¥29,672¥29,672mln
mln

Aggregate Amount Raised
Aggregate Amount Raised

605,499

600,000
557,004¥28,688¥28,688mln
mln

500,000

492,820

513,266

513,672

Oct.
2004

Apr.
2005

606,315

606,510

606,488

557,492【Primary Offering】
Number of Investment Units Issued ：37,000 units

400,000（Over-Allotment 2,220 units separately）
Offer Price ：¥756,560/unit

Issue Value ：¥731,470/unit

Total Amount of Offer Price ：¥27,992 mln

Total Amount of Issue Value ：¥27,064 mln

300,000
Apr.
2004

Oct.
2005

Apr.
2006

Oct.
2006

Apr.
2007

Oct.
2007

Apr.
2008

After PO*

Changes in Loan-to-Value（%）

【Third-Party Allotment】 （accompany Over-Allotment）
Number of Investment Units Issued ：60

2,220 units （upper limit）
Total Amount of Issue Value ：70¥1,623 mln （upper limit）

46.8

46.4

50
41.2

41.2

38.9

37.2

40

44.7

42.9

38.8

36.8

30

【Schedule】
Date of the Resolution ：

May 8

20

Date of the Determination of Conditions ：May 20

10

Payment Date （PO） ：May 27

Payment Date （TPA） ：June 24

0
Apr.
2004

Oct.
2004

Apr.
2005

Oct.
2005

Apr.
2006

Oct.
2006

Apr.
2007

Oct.
2007

Apr.
2008

After PO*

*Probable numbers considering repayment of existing borrowings with increased capital of public offering andthird-party allotment, etc.

1. Overview of Fund Management

4【Ref.】Summary of Equity Financing (PO) (2)Article of Thomson Deal Watch Reuters （excerpt）

Change in Investment Unit Price（5/8～5/30）

Equity Market Pointer：”NOF, Gushing about a Pleasant Surprise”
Equity Market Pointer：”NOF, Gushing about a Pleasant Surprise”
2008/05/26
2008/05/26
5/28（Unit）
Date of Listing（¥）
1,000,000

10,000TurnoverUnit Price

900,000

8,000

800,000

6,000

700,000

4,000

600,000

2,000

500,000

5/8

5/20

5/27

Date of
Resolution

Pricing Date

Payment Date

1. Overview of Fund Management

0

The May 27 payment date for Nomura Real Estate Office Fund’s (NOF) public
The May
27 payment date
fortheNomuraReal Estate
Office public,
Fund’sand(NOF)
offering
is approaching.
Being
fifth offering
since going
thepublic
first Joffering
is approaching.
Being
thefiscal
fifth offering
goingattention
public, andthethosefirst JREIT
publicoffering for thecurrent
year, it sincehas drawn
fromREIT
publicoffering
forthecurrent
fiscal
year,
it
has
drawn
attention
from
those
wide array of investors. That has made it a full participation offering – a rarity inwide array
recenttimes.of investors. That has made it a full participation offering – a rarity inrecenttimes.
Accordingto involved, pre-marketing commenced with an institutional/individual
Accordingpre-marketing
commenced
with aninstitutional/individual
investorratio toof involved,
35/65. Basedon informationfrom multiple
underwriting
sources,investorratio
of 35/65.
Basedon informationfrommultipleunderwriting
the offering appears
to havedrawn
subscriptions
equallyfromleading andsources,
the offering
appears
to haveretail,drawnandsubscriptions
equally fromleading andregional
financial
institutions,overseas investors,
at multiples
regional financial
institutions,retail, andinvestors,
at multiples
exceeding
10 for institutional
investors
andoverseas
5 for individual
investors.
The overall
exceeding
10 for institutional
investors
5 forindividual investors.
Theoverallmultipleis believed
to have exceeded
7. andStrongparticipation
by regionalbanks,
multipleis beenbelieved
to have
7. Strongparticipation
by regional
which
have
reluctant
to exceeded
invest recently
due tohigh volatility,
was a banks,
which havebeen reluctant
to (Nomura
invest recently
due to Assethigh volatility,
was a NREAM).
particularly“pleasantsurprise”
Real EstateManagement:
particularly“pleasantsurprise”(NomuraReal
EstateAsset
Management:
NREAM).
The healthy demand for this offering may be due to its status and the relativelyThehealthy
for this
offering
beappeared
due to itsrelatively
status andthe relatively
high
4.4%
yielddemandof the NOF
office
REIT, maywhich
attractive
andhighto4.4%
yieldof the NOFtooffice
REIT,
appearedandeasy
investin compared
offerings
bywhichNipponBuildingrelatively
Fund andattractive
Japan Realeasy toinvest in compared
to offerings
by Nippon
Building
Fundand Japan Real
EstateInvestment
Corporation,
the two oldest
J-REITs,which
completed
Estate Investment
theearlier
two oldest
J-REITs,yields
whichofcompleted
successful
offerings Corporation,
several months
at expectedaround 3%.
successful
offerings
severalearlier
at expected
yieldsof around3%.
NOF,
however,stresses
thatmonths
it was able
to raisethe capitalit needed.
It is
also
NOF, however,that init wasable toraise
thelimiting
capital dilution
it needed.
It is also
confident
that it hasstresses
succeededboosting
EPS
while(13.9%)
confident(NOF).
that it has succeeded in boosting EPS while limiting dilution (13.9%)
concerns
concerns(NOF).
NOF
has setan upper LTV limit of 60% and aims to hold it to a conservative 35NOF
hasfully
set invested.
an upper SomeLTV limitof 60% andaims tothough,hold it toa conservative45%
wheninstitutional
investors,
believethat target35when
fully invested.
institutional
investors,
though, believethat target
to45%
be tooconservativeand Some
think 50%
would bemore reasonable.
That view,
to be toothink
50% would
be moreview,
though,hasconservative
been heard andbefore(NREAM),emphasisis reasonable.
being placedThat
on focusing
though,
has
been
heard
before(NREAM),emphasisisbeingplacedonfocusing
attention on the strong belief in medium-to-long term stability (NREAM), andattentionhaveon thestrongbelief intomedium-to-longterm stability(NREAM),andinvestors
been
persuaded
accept that perspective.
Ongoing
conservative
investors
have been
to toacceptthat institutions
perspective.
Ongoing
conservative
LTV
management
can persuaded
also indicate
financialthatthe fundis solid
LTV
managementcanalso indicate
to financial institutions that the fund is solidand
it willbe useful inraising
debt financing.
and it will
be usefulin raisingoffering
debt financing.
Funds
raisedin the present
are expected to lower the LTV to 39%, fromFunds
raisedthewouldpresent
offering
are expected
lower theto 39%,
47%.
An LTV
of in
45%
imply
propertyacquisitiontocapacity
ofLTV
around¥50 from
47%. ItAn
of 45%
imply
propertyof aroundbillion.
is LTV
claimedthatwould
althoughthere
is notacquisition
an excesscapacityof optimism
about ¥50
thebillion. property
It is claimed
that although
there is“strong
not ansponsors
excess ofmake
optimism
about tothepresent
acquisition
environment,
it possible
present
property
environment,“strong sponsors
makepossibleinto
move
forwardwith acquisitiona bullish outlook.”――Preparations
to movewithitalacrity
move
forwardwith a bullish
outlook.”――Preparations
to move with alacrity intheslowlybrightening
office building
markethave been made.
the slowly brightening office building market have been made.

5

2. Future Management Policies

Real Estate Investment Market

Current

Future・ Market changes are driving evasion in financial
institution attitudes from participation in real estate
financing・ No change in the financing posture of financial institutions is
expected for the time being, so information on properties
available for sale will continue trending upward

・ As a result, property sales by private funds,
originators, and others are on the rise・ On the other hand, the number of players capableof acquiring properties is declining, thereby
relieving the supply-demand imbalance

・ Properties are also expected to become available as a resultof fund liquidations

An increase in properties available for salewill increase acquisition opportunities.

NOF’
NOF’s Position＜Number of Information of Property Sales＞
Sales＞

Number of information onproperties that are available
for sale and meet investment
criteria is increasing.

※Office use only

9th Fiscal Period: 182
8th Fiscal Period: 154
・Cleared standard forconsideration: 112

2. Future Management Policies

・Cleared standard
for consideration: 128(Considered in details : 30)

7

Office Leasing Market

Current

Future・ Upper limit seems to have been reached in asking
rents for large properties in central Tokyo・ Tenants will have strict standards for location andspecifications

・ Asking rents continue upward for properties on
suburban Tokyo and for medium-sized properties→Ongoing polarization based on property competitiveness・ For some regional cities, delayed economic
recoveries and other factors have slowed
recovery speeds for some markets

・ Gaps among regional cities and building occupancy rates
will develop in accordance with economic recovery
progress

Stable property management＝Accurate market awareness

NOF’
NOF’s Position

・ Maintenance of stable occupancy rates
・ Pursuit of higher rents and upward revision

Keep portfolio income andexpenditures stablez Occupation Rate
・ Central Tokyo・ Suburban Tokyo・ Other Regional Cities： 97.6％： 98.9％： 97.2％： 96.4％z Rate Increase in Rent
・ At the time of rent renewal ： 8.6％ *Based on 68 tenants(Increased rent in 9th Period)・ At the time of move-in and move-out： 18.9％ *Based on 24 tenants(Changed tenants in 9th Period)

2. Future Management Policies

8

J-REIT Market

FutureCurrent

・ Adjustment period ending, but recovery is weak・ Concerns about possible worsening in realestate market fundamentals

・ Changes in sponsors, third-party allotments, and othersteps aimed at restructuring or stabilizing capital andfinances will accelerate・ Stricter risk/return evaluations on the part of investors(Expansion in yield differences)

・ “Funding capacity” is key

Fund shakeouts/mergers through M&A andother means

NOF’
NOF’s Position
・ Maintenance and further enhancementof credit in capital markets
・ Stick with conservative financial
policySecure and maintain reliablefinancing methods for both
equity and debt.

2. Future Management Policies

z Equity: Execution of 4th PO (First in 2 years)
・Raising of approx. ¥28.7 blnz Debt: Issuance of first investment corporation
short-term bonds (CP)・Issued ¥20 bln in CP for property acquisition capital9

Future Growth Strategies (1)Investment Objective I : Promotion of diversification through external growth
and an increase in investment unit liquidity
Ongoing Fund Expansion

Increase in Investment Unit Liquidityz Expand market capitalization through ongoing
equity offeringsz Promote tenant and asset diversification throughfund expansion (Further stabilization of portfolio
income）
income）

z Promote investor diversification through strategic
IR activities.

（¥bln）

6,000

70.0%
Total Assets
Ratio of Top 3 Properties
Ratio of Top 3 Tenants

5,000（¥bln）（Unit）

1,400

500

Mid-Term Goal
¥500 bln 60.0%

Market Capitalization at the End of 9th Period
Average Turnover / Day

1,200

400
50.0%

1,000

4,000
40.0%

300

800

3,000
30.0%

600

200

2,000
20.0%

400
1,000

10.0%

100
200

0

0.0%
Apr.
2004

Oct.
2004

Apr.
2005

Oct.
2005

Apr.
2006

Oct.
2006

2. Future Management Policies

Apr.
2007

Oct.
2007

Apr.
2008

0

Apr.
2004

Oct.
2004

Apr.
2005

Oct.
2005

Apr.
2006

Oct.
2006

Apr.
2007

Oct.
2007

Apr.
2008

June 11
2008

0

10

Future Growth Strategies (2)Investment Objective II : Stable growth of EPS
Increase in BPS (Book value Per Share)

Increase in Portfolio Profitabilityz Increase average rental per tsubo andmaintain occupancy ratez Maintain or increase investment unit pricez Execute strategic equity offeringsz Control budgets for repair and other expenses(¥)(¥000)
110.0

20,000700

Distribution per Unit

BPS

Changes in Rents (15 Properties at 1st Period）

16,00012,000

105.0

600

100.0

500

95.0

400

100.0

8,000

Apr.
2004

Oct.
2004

Apr.
2005

Oct.
2005

Apr.
2006

Oct.
2006

Apr.
2007

Oct.
2007

Apr.
2008

Apr.
2004

Oct.
2004

Apr.
2005

Oct.
2005

Apr.
2006

Oct.
2006

Apr.
2007

Oct.
2007

Apr. After PO*
2008*Probable numbers considering repayment of existing borrowings with increased capital of public offering andThird-party allotment, etc.

2. Future Management Policies

113. Details of the Financial Results

Rental Business Revenues

Operating Revenues
Rental business revenues
Rental revenues
Common area charges
Other rental business revenues
Monthly parking revenues
Incidental income
Other rental revenues
Miscellaneous revenues
Total Rental Business Revenues
Profits on Sales of Real Estate

Rental Business Expenses

Operating Profits

Current Profits

Income Statement

Operating Expenses
Property management costs
Taxes and duties
Utility expenses
Insurance expenses
Repairs and maintenances
Other expenses
Depreciation
Total Rental Business Expenses

Asset management fees

Non-Operating Profits

Selling and administrative expenses

Rental Profits
Operating Profits
Non-Operating Revenues
Other non-operating revenues

Non-Operating Expenses
Interest expenses
Interest expenses on short-term bonds
Interest expenses on bonds
Amortization of bond issuance costs
Loan arrangement fees
Other non-operating expenses
Non-Operating Profits
Current Profits
Income before income taxes
Corporate, local and enterprise taxes
Tax adjustment
Net Income
Retained earnings brought forward
Retained earnings at end of period

8th Fiscal Period

9th Fiscal Period

May 1, 2007 - Oct. 31, 2007

Nov. 1, 2007 - Apr. 30, 2008(¥000)(%)(¥000)(%)

11,968,778
10,694,614
8,688,417
2,006,196
1,264,351
239,566
953,671
69,301
1,811
11,958,965
9,812
6,243,155
1,197,041
939,418
937,406
23,271
362,145
213,180
1,518,288
5,190,753
874,405
177,996
6,768,211
5,725,622
69,09869,0981,307,920
668,555－
432,532
45,06593,612
68,153▲ 1,238,821
4,486,801
4,486,801
605－
4,486,196
12,426
4,498,622

100.0
89.4
72.6
16.8
10.6
2.0
8.0
0.6
0.0
99.9
0.1
52.2
10.0
7.8
7.8
0.2
3.0
1.8
12.7
43.4
7.3
1.5
56.5
47.8
0.6
0.6
10.9
5.6
－
3.6
0.4
0.8
0.6
▲ 10.4
37.5
37.5
0.0
－
37.5
0.1
37.6

12,183,126
11,057,640
8,991,313
2,066,326
1,125,486
255,389
795,927
70,574
3,595
12,183,126
0
6,359,680
1,260,581
941,567
790,510
23,074403,143
192,242
1,601,961
5,213,082
990,994
155,6026,970,044
5,823,446
86,67786,677
1,409,169
743,4443,052
428,974
32,295
94,520106,883▲ 1,322,492
4,500,953
4,500,953
1,051
▲ 22
4,499,924
76
4,500,000

100.0
90.8
73.8
17.0
9.2
2.1
6.5
0.6
0.0
100.0
－
52.2
10.3
7.7
6.5
0.2
3.3
1.6
13.1
42.8
8.1
1.3
57.2
47.8
0.7
0.7
11.6
6.1
0.0
3.5
0.3
0.8
0.9
▲ 10.9
36.9
36.9
0.0
0.0
36.9
0.0
36.9

3. Details of the Financial Results

Rental Business Revenues
The total number of properties in the portfolio at the 9th period has
become 37 as a result of new acquisition of 3 properties:
JCB Sapporo Higashi Bldg, Toho Edogawabashi Bldg, and SORA
Shin-Osaka 21.
Occupancy rate for the 9th period (April 2008) was 97.6%, down 0.3%
from 97.9% for the 8th period (October 2007).

Taxes and Duties
Property taxes, urban planning taxes and other duties for the 9th
period were charged on the 33 properties out of the total 37 properties
held at the end of the 9th period.

Repairs and Maintenances
In addition to cost of repair of ¥403 mln, there was capital expenditureof ¥1,346 mln, of which ¥337 mln was an initial reserve.

Rental Profits: ¥6,970 mln(+ ¥201 mln from the previous period)
Additional revenues from the newly acquired 3 property: + ¥10 mln
Increase in revenues from the existing 34 properties: + ¥191 mln

Incidental Revenues:

Revenues received as utility charges, charges forusage of facility and signboard, etc.
Other Rental Revenues: Hourly parking charges, etc.
Miscellaneous Revenues: Ground rents, etc.
Other Expenses:
Trust fees, commissions, other maintenance fees, etc.
Operating Expenses:
custodian, Administrative service, and auditing fees, etc.
Non-operating Expenses: Cost of restitution in integrum, etc

13Balance Sheet

AssetsAssetsCurrent Assets
Cash and cash equivalents
Cash and cash equivalents in trust
Other current assets
Fixed Assets
Tangible assets
Properties
Buildings
Lands
Properties in trust
Buildings
Lands
Other tangible assets
Other tangible assets
Intangible assets
Trust and other intangible assets
Investments and other assets
Security deposits
Other Investments and other assets
Deferred Assets
Issuing cost of corporation bonds

Total Assets

8th Fiscal Period

9th Fiscal Period

as of Oct. 31, 2007(¥000)(%)
34,469,735
10.6%
13,970,157
4.3%
20,046,345
6.1%
453,2320.1%
292,078,291
89.4%
291,853,819
89.3%
21,602,747
6.6%
6,784,940
2.1%
14,817,806
4.5%
270,213,839
82.7%
79,844,776
24.4%
190,369,063
58.3%
37,2330.0%
37,233
0.0%
1,827
0.0%
1,827
0.0%
0.1%
222,643
211,250
0.1%
11,3930.0%
163,859
0.1%
163,859
0.1%

as of Apr. 30, 2008(¥000)(%)
36,353,211
10.3%
15,657,837
4.4%
19,925,784
5.6%
769,5890.2%
317,239,720
89.7%
316,999,368
89.6%
46,855,080
13.2%
15,578,415
4.4%
31,276,664
8.8%
270,107,373
76.4%
79,738,310
22.5%
190,369,063
53.8%
36,9150.0%
36,915
0.0%
1,725
0.0%
1,725
0.0%
238,6260.1%
211,250
0.1%
27,3760.0%
137,8180.0%
137,818
0.0%

326,711,886

353,730,749

100.0%

Liabilities

9th Fiscal Period

as of Oct. 31, 2007(¥000)(%)
41,469,712
12.7%
807,7770.2%

as of Apr. 30, 2008(¥000)(%)
58,957,473
16.7%
737,287
0.2%
19,984,303
5.6%
14,700,000
4.2%
19,000,000
5.4%
2,407,991
0.7%
2,100,766
0.6%
27,1250.0%
133,506,081
37.7%
44,500,000
12.6%
67,500,000
19.1%
1,944,082
0.5%
19,561,998
5.5%
192,463,555
54.4%
161,267,194
45.6%
156,767,193
44.3%
4,500,000
1.3%
-

-

-

Unitholders' Equity
Unitholders' capital
Retained earnings
Variance from valuation and translation
Deferred hedge gains

4.1%
7.0%
0.6%
0.6%
0.1%
37.9%
13.6%
18.1%
0.3%
6.0%
50.6%
49.4%
48.0%
1.4%
0.0%
0.0%

Total Net Assets
Total Liabilities and Net Assets

161,272,976
326,711,886

49.4%
100.0%

Other accounts payable
Rent received in advance
Other current liabilities
Fixed Liabilities
Corporation bonds
Long-term debt
Security deposits
Security deposits in trust

Total Liabilities

Net Assets

8th Fiscal Period

13,500,000
23,000,000
1,997,921
1,950,417
213,595
123,969,197
44,500,000
59,000,000
948,401
19,520,796
165,438,909
161,265,816
156,767,193
4,498,622
7,160
7,160

Long-term debt to be repaid within 1 year

161,267,194
353,730,749

Deposits in own name
Equivalent to security deposits received
Equivalent to reserved capital expenditure
Others(¥ mln)15,6572,801
2,813
10,043

Deposits in trust
Equivalent to security deposits received
Equivalent to reserved capital expenditures
Others19,925
13,388207
6,329

Tangible Assets
Acquisition Accumulated
pricedepreciation

100.0%

Liabilities and Net Assets

Current Liabilities
Trade accounts payable
Short-term bonds
Short-term debt

Cash and Cash Equivalents(¥ mln)Depreciation for End-of-termcurrent term
book value

Properties

328,306

11,306(1,601)

316,999

Buildings in trust, etc.

90,721

10,946(1,440)79,775Lands in trust

190,369--

190,369

Buildings, etc.

15,938360(161)

15,578Lands

31,276--

31,276

Debts
Balance of interest-bearing debts¥165,700mln*Redemption price for short-term investment corporation bonds
S/T debts + S/T bonds + L/T debts + Corp bonds

Interest-bearing debts ratio

Long-term interest-bearing debt ratio

Total assets
L/T debts + Corp bonds
Total debts

46.8%

67.6%

45.6%
100.0%

3. Details of the Financial Results

14Cash Distribution

Cash Distribution
Item

8th Fiscal Period

9th Fiscal Period

from May 1, 2007
to Oct. 31, 2007

from Nov. 1, 2007
to Apr. 30, 2008

Retained Earnings(¥000)

4,498,622

4,500,000

Cash Distribution(¥000)

4,498,546

4,499,876

16,91816,923

76

124

Cash Distribution per Unit(¥)

Balance Carried Forward(¥000)z Cash Distribution
Cash distribution for the 9th fiscal period was decided to be approximately
all of retained earnings for the period, with pay-out to total outstanding
number of units as of the period-end of 265,903; resulting in cash
distribution per unit of ¥16,923.

Comparison with Forecasts
Forecasts
Item

Actual Results

announced on
9th Fiscal Period
December 14, 2007z Difference between Actual Results and Forecasts

Difference(amount)(%)

Operating Revenues(¥ mln)12,10912,18373

0.6

Current Profits(¥ mln)

4,335

4,500

165

3.8

Net Income(¥ mln)

4,334

4,499

165

3.8

(¥)

16,30016,923623

3.8

Cash Distribution per Unit

3.Details of the Financial ResultszOperating Revenues
Incremental revenues brought by acquisition of JCB Sapporo Higashi
Bldg, Toho Edogawabashi Bldg, SORA Shin-Osaka 21, and the other34 bldgs: ¥73 mlnzCurrent Profits
Difference in rental business expenses due to compression of repairs
and maintenances, etc.: ¥205 mln

15Interest-Bearing Debts
As of April 30, 2008
LenderShort-term debt(including long-term
debt to be repaid
within a year)

Total short-term debt

Long-term debt

AmountType of Interest

Interest Rate (p.a.)

Repayment Date

1.15333% (From Dec. 27, 2007 to Jun. 27, 2008)

Jun. 27, 2008

8 finan insti¥8,500 mln

Floating

5 finan insti¥4,000 mln

Floating

1.27583% (From Feb. 7, 2008 to Jun. 27, 2008)

Jun. 27, 2008

5 finan insti¥2,200 mln

Floating

1.25917% (From Mar. 27, 2008 to Jun. 27, 2008)

Jun. 27, 2008

4 finan insti¥4,000 mln

Floating

1.28583% (From Feb. 26, 2008 to Aug. 26, 2008)

Aug. 26, 2008

5 finan insti¥8,000 mln

Fixed (Note 1)

1.66750% (Weighted average after interest rate swap)

Dec. 8, 2008

4 finan insti¥5,000 mln

Fixed

1.51625%

Dec. 8, 2008

2 finan insti¥2,000 mln

Fixed (Note 3)

1.19000% (Weighted average after interest rate swap)

Feb. 26, 200918 finan insti¥33,700 mln

-

-

-

1 finan insti¥3,000 mln

Fixed (Note 2)

1.77500% (Weighted average after interest rate swap)

Feb. 26, 2010
Feb. 26, 2010

1 finan insti¥1,000 mln

Fixed

1.50625%

3 finan insti¥2,500 mln

Fixed

1.48375%

Feb. 26, 2010

2 finan insti¥2,000 mln

Fixed

1.65500%

Aug. 26, 2010

5 finan insti¥7,500 mln

Fixed (Note 3)

1.68000% (Weighted average after interest rate swap)

Feb. 26, 2011

6 finan insti¥8,500 mln

Fixed (Note 6)

1.43200% (Weighted average after interest rate swap)

Jun. 10, 2011

5 finan insti¥4,500 mln

Fixed (Note 8)

1.44800% (Weighted average after interest rate swap)

Aug. 25, 2011

3 finan insti¥4,000 mln

Fixed (Note 5)

1.63825% (Weighted average after interest rate swap)

Aug. 26, 2011

7 finan insti¥11,000 mln

Fixed (Note 4)

1.89764% (Weighted average after interest rate swap)

Feb. 26, 2012
Aug. 26, 2012

5 finan insti¥5,000 mln

Fixed

1.43750%

1 finan insti¥1,000 mln

Fixed

1.53625%

Aug. 26, 2012

5 finan insti¥7,500 mln

Fixed (Note 7)

1.46000% (Weighted average after interest rate swap)

Aug. 26, 2012

1 finan insti¥1,000 mln

Fixed

1.75250%

Feb. 26, 2013

1 finan insti¥2,000 mln

Fixed

1.99250%

Feb. 26, 2013

3 finan insti¥4,000 mln

Fixed

1.98000%

Mar. 19, 2014

1 finan insti¥3,000 mln

Fixed

1.91875%

Feb. 26, 2015

Remarks

Unsecured /Unguaranteed-

Unsecured /Unguaranteed

Total long-term debt

24 finan insti¥67,500 mln

-

-

-

-

Total debt

28 finan insti¥101,200 mln

-

-

-

-

1st series corp bondPrivate placement¥5,000 mln

Fixed

1.85%

Mar. 16, 2015

2nd series corp bondPrivate placement¥5,000 mln

Fixed

2.47%

Mar. 16, 2020

3rd series corp bondPublic offering¥10,000 mln

Fixed

1.19%

Nov. 29, 2010

4th series corp bondPublic offering¥10,000 mln

Fixed

2.05%

Nov. 30, 2015

5th series corp bondPublic offering¥5,000 mln

Fixed

1.61%

Mar. 19, 2012

6th series corp bondPublic offering¥5,000 mln

Fixed

2.21%

Mar. 17, 2017

7th series corp bondPublic offering¥4,500 mln

Fixed

2.90%

Mar. 17, 2028

Total corporation bond-

¥44,500 mln

-

-

-

-

¥20,000 mln

Fixed

Average Yield to Subscribers 0.7965%

Jun. 6, 2008

Unsecured /Unguaranteed

1st series Shrt-trm bond Private placement

Unsecured /Unguaranteed

Total Shrt-trm bond-

¥20,000 mln

-

-

-

-

Grand total

28 finan insti¥165,700 mln

-

-

-

-

(Note 1) Fixed by interest rate swap from Dec. 8, 2003 (Note 3) Fixed by interest rate swap from Feb. 27, 2006 (Note 5) Fixed by interest rate swap from Mar. 19, 2007 (Note 7) Fixed by interest rate swap from Feb. 26, 2008
(Note 2) Fixed by interest rate swap from May 27, 2004 (Note 4) Fixed by interest rate swap from Dec. 8, 2006 (Note 6) Fixed by interest rate swap from Dec. 10, 2007 (Note 8) Fixed by interest rate swap from Apr. 25, 2008

3.Details of the Financial Results

16Unitholders

Breakdown of Financial Institutions

Number of Unitholders
Individuals
10,884 （94.7％）

8th Period(Oct. 2007)

Financial Institutions
Other Domestic Corporations
Foreign Corporations(Units)164 （1.4％）
185 （1.6％）
259 （2.3％）

11,492Unitholders
Individuals
10,506 （94.5％）

9th Period(Apr. 2008)

Financial Institutions
Other Domestic Corporations
Foreign Corporations

156 （1.4％）
184 （1.7％）
274 （2.5％）

8th Period

9th PeriodBanks36,78013.8%

37,11814.0%

Trust Banks

81,32930.6%

83,224

31.3%

Life Insurance Companies

4,724

1.8%

7,487

2.8%

Non-Life Insurance Companies

2,729

1.0%

5,030

1.9%

Other Financial Institutions

17,753

6.7%

18,8207.1%

143,31553.9%

151,679

57.0%

Units

Ratio

1 Japan Trustee Services Bank, Ltd.

20,228

7.61%

2 NikkoCiti Trust and Banking Corporation

19,686

7.40%

3 Trust & Custody Services Bank, Ltd.

16,742

6.30%

4 The Master Trust Bank of Japan, Ltd.

16,111

6.06%

5 Nomura Real Estate Development Co., Ltd.

13,3265.01%

6 The Nomura Trust and Banking Co., Ltd.

7,162

2.69%

7 Kawasaki Gakuen

7,000

2.63%

8 North Pacific Bank,Ltd.

5,902

2.22%

9 The State Street Bank and Trust Company

5,829

2.19%

10 The Bank of IKEDA, Ltd.

5,229

1.97%

11,120Unitholders

Top 10 Unitholders
0%

25%

50%

75%

100%

Number of Investment Units

8th Period(Oct. 2007)

Financial Institutions
143,315 units（53.9％）

Individuals
26,480 units（10.0％）

265,903Units

9th Period(Apr. 2008)

Financial Institutions
151,679 units（57.0％）

Individuals
25,670 units（9.7％）

265,903
Units

Other Domestic
Corporations
25,734 units（9.7％）

Other Domestic
Corporations
25,363 units（9.5％）

Foreign
Corporations
70,374units（26.5％）

Foreign
Corporations
63,191units（23.8％）

Unitholders

Total

0%

25%

50%

75%

100%

3.Details of the Financial Results

117,215 44.08%(The ratio of Top 10 Unitholders for the 8th Period: 43.32%)

17

10th Fiscal Period (October 2008) Forecast

9th Period

10th Period
Forecasts

Difference

Rental business revenues
Other rental business revenues
Total rental business revenues
Property management costs
Taxes and duties
Utility expenses
Insurance expenses
Repairs and maintenances
Other expenses
Depreciation
Total rental business expenses
Rental business revenues
Asset management fees
Operating expenses
Operating Profits
Non-operating revenues
Non-operating expenses
Non-operating Profits
Current Profits
Income before income taxes
Corporate, local and enterprise taxes
Tax adjustment
Net Income
Retained earnings brought forward
Retained earnings at end of period(¥mln)
11,057
1,125
12,183
1,260
941
790
23
403
192
1,601
5,213
6,970
990
155
5,823
86
1,409
▲1,322
4,500
4,500
1
0
4,499
0
4,500

(¥mln)
12,105
1,247
13,353
1,466
963
1,010
26
439
145
1,723
5,775
7,577
979
182
6,416
1,425
▲1,425
4,990
4,990
1
0
4,989
0
4,989

(¥mln)
1,047
122
1,169
205
21
220
3
36
▲46
121
562
607
▲11
26
592
▲86
16
▲103
489
489
0
0
489
0
489

9.5
10.9
9.6
16.3
2.3
27.8
13.7
9.1
▲24.2
7.6
10.8
8.7
▲1.2
17.1
10.2
▲100.0
1.2
7.8
10.9
10.9
▲4.9
0.0
10.9
63.2
10.9

Outstanding units at period-end (unit)

265,903

305,123

39,22014.7

16,923

16,350

▲ 573

▲ 3.4

Cash distribution per unit (¥)

3. Details of the Financial Results(%)
Rental Business Revenues
Forecasts were made for the 10th period on the basis that the
number of properties under management would remain to be 37
without any new acquisition or sale.

Taxes and Duties
Property taxes, urban planning taxes and other duties for the
10th period were estimated on the basis that 34 properties out of
37 properties, which were held at the end of the 9th period,
would be taxable for that period.

Other Rental Business Revenues:
Revenues received as monthly parking charges,
utility charges, charges for usage of facility, etc.
Other Expenses: Trust fees, commissions, other maintenance fees,
etc.
Operating Expenses:
custodian, Administrative service, and auditing
fees, etc.
Non-operating Expenses:
Interest costs, Interest expenses on bonds,
Amortization of bond issuance costs, etc.

18

4. Fund Management Results

Results of Investment Sector

Changes in Total Portfolio (by Acquisition Price)

Diversification of Portfolio(¥ bln)350
Shinjuku Nomura Bldg
300

240.8

250

184.6

200
150

259.1

104.2

127.2

282.8

292.4

317.4

210.1

z Diversification by Location*Based on Acquisition PriceCentral Tokyo

Other Regional Cities

55.5%

30.6%

151.5

100
Greater Tokyo

50
0

37.2%
Dec. 2003
at Listing

30.4%

25.6%

21.0%
Apr. 2005
3rd Period

14.9%

18.4% 16.1%

13.7%

13.2% 12.2%

Oct. 2006
6th Period

13.9%

Apr. 2008
9th Periodz Diversification by Property (Top 10 and Other Properties)

9th Period Performance Results

Shinjuku Nomura Bldg 12.2%
3.2% NOF Shiba Bldg

Acquisition of 3 properties (¥25 billion)
3.6% Secom Medical Bldg

Utilization of NREAM’s own
information pipeline
Total asset exceeded ¥300 billion

Other 27
Buildings
38.1%

NOF Shibuya
3.8% Koen-dori Bldg
4.1% NOF Midosuji Bldg

4.7%

Tennozu Park
Side Bldg

4.Fund Management Results

JAL Bldg 10.4%

Omron Kyoto
Center Bldg

7.5%

NOF Nihonbashi
Honcho Bldg

6.5%

SORA Shin-Osaka 21 6.1%

20

Portfolio Status (1)JCB Sapporo Building (Note)

Location

Chuo-ku, Sapporo City

Floor

9,062.04m2（2,741.26 tsubo）

Type ofOwnership(Land) Ownership(Bldg) Ownership

AcquisitionPrice¥ 3,700 mln

Date of
Acquisition

February 8, 2008

SellerJCB Co., Ltd.

Toho Edogawabashi Building【Features】【Features】

・Adjacent to Odori Station on the
Subway Toho Line, Nanboku Line, andTozai Line

Location

Sekiguchi, Bunkyo-ku

Floor

3,405.76m2 ( 1,030.24 tsubo）

・Has good prospects for not only officedemands but also commercial
demands since it is located in thecentral district of Sapporo City

Type ofOwnership(Land) Ownership(Bldg) Ownership

AcquisitionPrice¥ 2,080 mln

Date of
Acquisition

March 28, 2008

Seller

ORIX Real Estate Corporation

・Executed a 10 year Building Lease
Agreement ending in February 7, 2018with JCB Co., Ltd. as its Hokkaido
Branch・Has good access to the Tokyo central
business district such as Iidabashi or
Ikebukuro, etc., since it is located near
Edogawabashi Station
・Has good visibility as the Building faces theprimary route, Shin Mejiro Dori・Appealing to tenants who seek a building
with the floor-separated air conditioning
system, standard floor area ofapproximately 235 sq. meters, which is
sufficient for any type of layout, andmoderate floor size for one floor use(Note) Although the name of the Property is “Sapporo Higashi Building” as of February 7, 2008, it will be
altered to the name above-mentioned hereafter.

4. Fund Management Results

21Portfolio Status (2)SORA Shin-Osaka 21

NOF Tenjin Minami Building (Scheduled Acquisition)【Features】

Location

Yodogawa-ku, Osaka City

Floor

・The landmark 21-story office building
38,252.92m2（11,571.50 tsubo） adjacent to Shin-Osaka Station with 2
Shinkansen Lines and several other lines

Type ofOwnership(Land) Ownership(Bldg) Ownership

AcquisitionPrice¥ 19,251 mln

Date of
Acquisition

April 25, 2008

SellerThe Sumitomo Trust &Banking Co., Ltd.

・The building, completed in 1994, with thefloor-separated air conditioning system,
2,700 mm of ceiling height, and large scale
car-parking of 202 lots, etc., is able to meeta wide range of tenant needs
・Conditions of the site and the building havegood prospects of stable office demand for
mid-to-long term

Location

Chuo-ku, Fukuoka City

Floor

4,603.61m2 ( 1,392.59 tsubo）

Type ofOwnership(Land) Ownership(Bldg) Ownership

AcquisitionPrice¥ 3,750～4,100 mln (Note)

Date of
Acquisition

Seller

The date to be mutuallyagreed by March, 2009
between the Fund and theSeller (Note)
Global Investment Partners I
LLC.

【Features】
・The building faces Watanabe Dori in
Tenjin area, the central business andcommercial district in Fukuoka city andthe area also provides several railway
lines
・Anticipated that Tenjin area would
become well developed office district assome redevelopment projects of large
office buildings are scheduled・Completed in February 2008, and hasfeatures such as the floor-separated air
conditioning system, office automation
floors, and sophisticated security system(Note) the Fund will acquire the Property on either September 26, 2008, December 26, 2008, or March 27, 2009 depending on
the seller’s leasing status (occupancy rates and average rents, etc.) at each timing, according to the agreement on purchase andsale of the trust beneficial interest. As the Property’s profitability may vary upon leasing status, the acquisition price will be
determined within the above-mentioned range.

4. Fund Management Results

22Diversification of Tenants

Top 10 Tenants (by Space)

Diversification in Business (by Space)
As of Apr. 30, 2008

Tenant42,084.11

10.9

11.8

34,616.84

9.0

9.7

18,218.17

4.7

5.1

3,813.62

1.0

1.1

255.150.1

0.1

6,547.74

1.7

1.8

8,821.24

2.3

2.5

Dec. 31, 2008755.690.2

0.2

Feb. 7, 2018

9,062.04

2.3－

May 31, 2008

574.11

0.1

0.2

Dec. 31, 2009

1,140.85

0.3

0.3

Nov. 30, 2009

1,847.63

0.5

0.5

Mar. 31, 2009

2,834.48

0.7

0.8

Nov. 30, 2013

4,023.21

1.0

1.1

Nomura Osaka Bldg. Nov. 30, 2013345.370.1

0.1

Nov. 30, 2013

1,266.19

0.3

0.4

Apr. 30, 2009

4,087.66

1.1

1.0

Feb. 28,2010

283.02

0.1－

Mar. 31,2013

4,160.94

1.1－

144,738.06

37.5

Expiry ofcontract

Leasedspace（㎡）

JAL Bldg.

Mar. 31, 2015

Flagship Properties
Private Company

Real Estate

2

OMRON Corporation

Electronic
Devices

3

XYMAX AXISCORPORATION

FUJITSU LIMITED

Weightfromprevious
term (%)

Property

1

4

Weight in
portfolio(%)

Industry

Omron Kyoto
Mar. 29, 2021
Center Bldg.
NOF Toyo-cho
Real EstateNov. 30, 2014
Bldg.
NOF Technoport
Jul. 31, 2009
Kamata Center Bldg.
Electronic
Faret Tachikawa
Dec. 31, 2009
Devices
Center Square
NOF Shin-Yokohama
Sep. 30, 2008
Bldg.
Secom Medical Bldg. Feb. 28, 2025

5

6

7

8

9

10

SECOM Co., Ltd.

JCB Co., Ltd.

Nomura Facilities Co., Ltd.

Nomura Real Estate
Development Co., Ltd.

Services

FinancingRealEstateReal
EstateSOMPO JAPAN
INSURANCE INC.

Insurance

KYORIN CO., LTD.

Wholesale

Total

NOF Sendai
Aoba-dori Bldg.
JCB Sapporo
Higashi Bldg.
Shinjuku
Nomura Bldg.
NOF Utsunomiya
Bldg.
NomuraYotsubashi Bldg.
NomuraHiroshima Bldg.
Shinjuku
Nomura Bldg.

NomuraYotsubashi Bldg.
Shinjuku
Nomura Bldg.
NomuraHiroshima Bldg.
NOF Surugadai
Plaza Bldg.

As of Apr. 30, 2008

Services
18.1%

Other 20
Businesses
Banking 2.4%

16.1%

16.1%
16.4%

Financing 3.5%
Total
583
Tenants

Real Estate 3.5%
Insurance 4.1%

IT
14.8%

Retail 4.1%
Wholesale 6.9%
Airline11.5%

Electronics
14.7%(Note) Broken-down by business of the sub-lessees in case of sub-lets.

Stable (Mid-to-Long Term) Contracts
Mid-to-long term contracts expiring after
three years from now

z Based on floor space： 32.7％32.7％

z Based on contract rent ： 24.6％
24.6％
As of Apr. 30, 2008

4. Fund Management Results

23

Results of Asset Management Sector

Changes in Average Unit Rent*1

Changes in NOI Return of Portfolioz Ratio of change between 8th and 9th periods[Changes in NOI Return of Portfolio (%)]

NOI of Portfolio

Apr.
2004

Oct.
2004

Apr.
2005

Oct.
2005

Apr.
2006

Oct.
2006

Apr.
2007

Oct.
2007

Apr.
2008

7.2

6.2

6.1

6.1

5.9

6.0

5.7

5.8

5.7

[Breakdown by the number of properties held at each Period-end (%)]
15 for 1st Period
18 for 2nd Period
19 for 3rd Period
23 for 4th Period
28 for 5th Period
30 for 6th Period
31 for 7th Period

7.2

Average for
entire portfolio

Average for Tokyo
metropolitan properties(34 properties held at
the 8th periodperiod-end)(excluding bldgs
with longlong-term fixed contracts*2)

+2.5%

+4.4%

6.5

6.7

6.6

6.6

7.1

6.9

7.0

7.1

6.2

6.3

6.4

6.3

6.8

6.7

6.7

6.8

*1 Average Unit Rent: Average of monthly rent and common area charges prescribed inlease contracts as of period-end.

6.1

6.2

6.1

6.4

6.3

6.4

6.4

*2 JAL Building and Secom Medical Building.

6.1

6.0

6.2

6.1

6.2

6.3

z Changes in average unit rent

5.9

6.1

6.0

6.1

6.1

6.0

5.9

6.0

6.0

5.7

5.8

5.9

(Average initial rent for portfolio at period-end = 100)

110.0
108.0

34 for 8th Period
37 for 9th Period

5.8

5.8
5.7

106.0

1st Period: 15 bldgs

2nd Period: 18 bldgs

3rd Period: 19 bldgs

4th Period: 23 bldgs

5th Period: 28 bldgs

6th Period: 30 bldgs

7th Period: 31 bldgs

8th Period: 34 bldgs

104.0

z Main factors for change in NOI between 8th and 9th periods(based on 31 properties held at the beginning of 8th period)

102.0
100.0

•

Increase of rent/common service fees: + ¥83 mln (+0.8% from previous
period) (rent increase from tenant turnover / lease renewals)

98.0

•

Decrease in other expenses: - ¥24 mln (-11.4% from previous period)(brokerage commission of new tenants, etc.)

96.0
1st
2nd
Period Period

3rd
4th
Period Period

4. Fund Management Results

5thPeriod6th
7th
Period Period

8th
9th
Period Period24Increase in Rent of Portfolio

Changes in Portfolio Occupancy Rate
8th Period

Rent before and after Upward Revision

9th Period* Change = ((Rent of renewed contracts / rent of previous contracts) – 1) x 100

100.0%(Including common area charges)

97.6%

Average Change ＋8.6%

12.0%

97.9%

98.2%

10.0%

+9.1%

95.0%

+7.0%

8.0%

+7.6%

8th Period
Average Change+ 8.1％

6.0%
4.0%
90.0%

Central Tokyo
Greater Tokyo
Other Regional Cities
Average85.0% May 2007

Oct. 2007
End of
8th Period

2.0%
0.0%
Central Tokyo
Apr. 2008
End of
9th Period

Results of Contract Renewals (number of renewals)
100%

4.0% 6.5% 1.9%

21.0%

Up

32.9%
54.3%

52.0%

50.5% 46.9%

6,066㎡

2,340㎡

23,601㎡

Rent of the Same Space before Move-out and after Move-in

Flat

40.0%

+34.0%

Average Change ＋18.9％

30.0%

72.9%

Down
10.0%

70.0%

-9.0%
52.4%
44.8% 48.4%

20% 44.0%

0.0%-10.0%

Central Tokyo

Greater Tokyo

Other Regional Cities

Move-ins

10,869㎡

1,328㎡

2,334㎡

Move-outs

10,530㎡

2,761㎡

2,564㎡

14.8% 12.5% 9.0%

2.4% 0.9% 1.1% 0.7%
2nd
3rd
4th
5th
6th
7th
8th
Number of 1st
9th
Renewed Period Period Period Period Period Period Period Period Period
contracts
50
46
54
48
100
85
116
95
145
0%

+ 19.5％+24.7%

64.7%

23.9%

8th Period
Average Change

20.0%

69.6% 83.3%

40%

Other Regional Cities* Change = ((Rent of move-in / rent of move-out) – 1) X100 (Including common area charges)
14.6%

80%

60%

Space subject
to revision

Greater Tokyo

4. Fund Management Results25End-of-Period Appraisal Value

Increase in Appraisal Values

Appraisal Values at 9th Period-End(¥mln)

8th Period
End
AppraisalValue(¥mln)*
mln)*

9th Period
End
AppraisalValue(¥mln)
mln)

500,000
Change340,383

230,950

Greater Tokyo(9 bldgs)

53,430

Other Cities(14 bldgs)

106,978

109,129+ 2.0%

Total Portfolio(37 bldgs)

391,358

399,602+ 2.1%+ 2.2%

300,000

261,120
219,380
187,290

200,000
54,473366,938

294,037

Central Tokyo(14 bldgs)

236,000

399,602400,000

127,120+ 2.0%

151,500

100,000
0
1st
Period2nd
Period3rd
Period4th
Period5th
Period6th
Period7th
Period8th
Period9th
PeriodChanges in Unrealized Gains/Losses of Portfolio◇ Please refer to “Appendix” for details on individual properties.
* Appraisal value at acquisition is added for property acquired in the 9th period.

(¥ mln) (Appraisal Value at Period-End – Book Value)
90,000Total Appraisal Value¥ mln

399,602

Total Book Value¥ mln

316,999

Total Unrealized Gain/Loss¥ mln

82,602

Unrealized Gain/Loss per Unit¥

310,647* Unrealized gain/loss: Appraisal value – Book Value

70,00058,25250,00034,58730,000(For Reference) Net Asset per Unit

10,000

BPS (Book Value)¥606,488

NAV (Based on Appraisal Value)¥

917,135

82,60275,084

19,218
7,813
30

-315

1,883

1st
Period2nd
Period3rd
Period-10,000

4. Fund Management Results

4thPeriod5th
Period6th
Period7th
Period8th
Period9th
Period26

Move-ins and Move-outszSpace occupied by move-ins and vacated by move-outs
14,531 ㎡ (4,395 tsubo) : 4.0% of weighted averageof total floor spaceMove-outs 15,857 ㎡ (4,796 tsubo) : 4.3% of weighted averageof total floor space⇒ Change 1,325 ㎡ (400 tsubo) : More move-outs than move-ins

Move-ins

Past Tenant Change Rate (Average of the Portfolio)Move-ins

6.0%

Move-outs

Move-ins

4.0%

3.8%

4.0%

ChangeCentral Tokyo+10,869 ㎡-10,530 ㎡+338 ㎡

Greater Tokyo+1,328 ㎡-2,761 ㎡-1,433 ㎡

Other Regional Cities+2,334 ㎡-2,564 ㎡-230 ㎡

9th Period Status (Refers Only to Buildings with Change)
2,500

4,160

（㎡）

～
～

5.4%
4.3%

Move-outs

Move-ins

2,000
1,500

2.0%

2.0%

2.4%

2.0%

1,000

1.2%

0.9%

500

Hiroshima Tatemachi NOF Bldg

Nomura Hiroshima Bldg

4. Fund Management Results

NOF Kobe Kaigan Bldg

-2,500～～Nomura Yotsubashi Bldg
Nomura Osaka Bldg

-6.0%

-2,000

NOF Midosuji Bldg

-4.3%

NOF Nagoya Yanagibashi Bldg

-1,500Kita-Sanjo Bldg

-3.0%
-3.5%

NOF Utsunomiya Bldg
NOF Sendai Aoba-dori Bldg

-3.0%

Sapporo North Plaza Bldg

-4.0%

-1,000-2.3%

NOF Kawasaki Higashiguchi Bldg

-2.3%

NOF Yokohama Nishiguchi Bldg

-1.7%

-1.9%

Faret Tachikawa Center Square-2.0%

Crystal Park Bldg

-500

NOF Technoport Kamata Bldg
NOF Surugadai Plaza Bldg
NOF Shinagawa Konan Bldg
NOF Tameike Bldg
Nishi-Shinjuku Showa Bldg

-0.6%

0

NOF Shiba Bldg
Tennozu Park Side Bldg

1st Period 2nd Period 3rd Period 4th Period 5th Period 6th Period 7th Period 8th Period 9th Period

NOF Nihonbashi Honcho Bldg
Shinjuku Nomura Bldg

0.0%

Move-outs-4,16027

End-of-Period Financial Status (1)List of Lenders (Total 28 Financial Institutions)

9th Fiscal Period Financial Results
z Issued Short-term Bonds(¥mln)
Lender・ Amount of issuance ： ¥20 bln
Date of issuanceBank of Tokyo-Mitsubishi UFJ
Sumitomo Mitsui Banking Corp.

： Apr. 24, 2008

Mitsubishi UFJ Trust and Banking

Redemption date ： June 6, 2008z

Borrowings
・ Refinancing of ¥42 bln （Term：
Term：2 months～
months～7 years）
years）

Sumitomo Trust & Banking Corp.
Mizuho Corporate Bank
Norinchukin Bank
Dai-Ichi Mutual Life Insurance
Iyo Bank
Nomura Trust and Banking
Mitsui Life Insurance

Total
Amount of
Debt
14,790
9,050
7,620
7,620
5,620
5,000
5,000
5,000
4,000
4,000

LenderChiba Bank
Chuo Mitsui Trust and Banking
Taiyo Life Insurance
Daido Life Insurance
Hachijuni Bank
Development Bank of Japan
Chugoku Bank
Zen-Kyo-Ren
Sumitomo Life Insurance Company

Hiroshima Bank

Total
Amount of
Debt
4,000
3,000
3,000
3,000
2,500
2,000
2,000
2,000
2,000
1,500

Nippon Life Insurance Company

Total
Amount of
Debt
1,500
1,000
1,000
1,000
1,000
1,000
1,000
1,000

Total borrowings

101,200

LenderYamanashi Chuo Bank
Aozora Bank
Keiyo Bank
Bank of Fukuoka
Mitsui Sumitomo Insurance
Sompo Japan Insurance Inc.
Tokio Marine & Nichido Fire Insurance Co., Ltd.

(Reference) Short-term Investment Corp. Bonds
Investment Corporation Bonds
Total

・ Procured ¥62 bln for acquisition

Interest-Bearing Debts

20,00044,50064,500

Diversification of Maturity（¥ bln）
40

z

Short-term vs. Long-term Debts
Short-term Debts*¥53.7 bln
（32.4％）z38.7

Floating vs. Fixed Rates
Floating
Rate
¥18.7
bln
（11.3％）

Borrowings

Investment Corp. Bonds

Short-term Bonds

30

20

17.5
17.0
16.0

15.0

13.5

Long-term
Debts*
Long-term
Debts*¥103.5¥112.0bln bln（73.9％）（67.6％）

Fixed Rate*¥147.0 bln（88.7％）

10.0

10

8.0

6.5

5.0
2.0

3.0

5.0

4.5

4.0

0

*Including Investment Corporation Bonds*Including Interest Rate Swaps

2008.5～ 2010.4

2010.5～ 2012.4

2012.5～ 2014.4

2014.52016.5～ 2016.4 ～ 2018.4

4. Fund Management Results

2018.5～ 2020.4

2020.52022.5～ 2022.4 ～ 2024.4

2024.5～ 2026.4

2026.5～ 2028.4

28

End-of-Period Financial Status (2)Duration and Borrowing Rate

Status of Commitment Lines and Ratings (as of June 11, 2008)zz

Average remaining duration of long-term fixed debts(including investment corporation bonds)

・Commitment line A （acquisition）： Amount of ¥20 bln （¥13.8 bln remaining ）5.4 yearsz・Commitment line B （refinancing, etc.）： Amount of ¥20 bln （¥20.0 bln remaining ）Weighted average of interest rate of all the debts
z

1.56％
1.56％
z

(%)
3.5

7
Average remaining duration of borrowings

6

6.0
5.5

Average borrowing rates

5.1
5

4.6

4.4

2.0

3.3
1.7

2
1.0

1.1

1.1

1.1

1.3

1.6

1.4

1.5
1.6
1.0
0.5

0

0.0
Apr.
2004

Oct.
2004

Apr.
2005

Oct.
2005

Apr.
2006

Oct.
2006

z

3.0

Apr.
2007

Oct.
2007

Apr.
2008

Short-term Investment Corporation Bonds
Aggregate amount ：

2.5

3.9

3.8

3

1

5.4

Investment Corporation Bonds
Aggregate amount ： ¥100 bln （¥100 bln remaining ）Changes in average duration and all borrowing rates oflong-term fixed interest borrowings(year)

4

Commitment Linesz¥30 bln （¥30 bln remaining ）Ratings
Agencies

the Fundthe Short-term Bonds

R&I

AA-

a-1＋

S&P

A

A-1

Moody’s

A2

Prime-1

Steadily promoting prolongation of duration
4. Fund Management Results

29Appendix

List of Property
As of April 30, 2008
Property Name

Nishi-Shinjuku,
Shinjuku-ku
Higashi-Shinagawa,
JAL Bldg
Shinagawa-ku
Nihonbashi Honcho,
NOF Nihonbashi Honcho Bldg
Chuo-ku
Higashi-Shinagawa,
Tennozu Park Side Bldg
Shinagawa-ku
Udakawa-cho,
NOF Shibuya Koen-dori Bldg
Shibuya-ku
Nibancho,
Secom Medical Bldg
Chiyoda-ku
Shiba,NOF Shiba Bldg
Minato-ku
Nishi-Shinjuku,
Nishi-Shinjuku Showa Bldg
Shinjuku-ku
Akasaka,NOF Tameike Bldg
Minato-ku
Higashi-Shinagawa,NOF Shinagawa Konan Bldg
Shinagawa-ku
Kanda Surugadai,
NOF Surugadai Plaza Bldg
Chiyoda-ku
Hatchobori,
Hatchobori NF Bldg
Chuo-ku
Iwamoto-cho,
NOF Kanda Iwamoto-cho Bldg
Chiyoda-ku
Sendagaya,
NOF Minami Shinjuku Bldg
Shibuya-ku
Shinsuna,
NOF Toyo-cho Bldg
Koto-ku
Minami-Kamata,NOF Technoport Kamata Center Bldg
Ota-kuSekiguchi,
Toho Edogawabashi Bldg
Bunkyo-ku
Gotenyama,
Crystal Park Bldg
Musashino City
Akebono-cho,
Faret Tachikawa Center Square
Tachikawa City
Kawasaki-ku,
NOF Kawasaki Higashiguchi Bldg
Kawasaki City
Nishi-ku,
NOF Yokohama Nishiguchi Bldg
Yokohama City
Kohoku-ku,
NOF Shin-Yokohama Bldg
Yokohama City
Naka-ku,
Yokohama Odori Koen Bldg
Yokohama City
Chuo-ku,
Sapporo North Plaza
Sapporo City
Chuo-ku,
JCB Sapporo Bldg
Sapporo City
Chuo-ku,
Kita-Sanjo Bldg
Sapporo City
Aoba-ku,NOF Sendai Aoba-dori Bldg
Sendai City
Baba-dori,
NOF Utsunomiya Bldg
Utsunomiya City
Nakamura-ku,
NOF Nagoya Yanagibashi Bldg
Nagoya City
Simogyo-ku,
Omron Kyoto Center Bldg
Kyoto City
Yodogawa-ku,
SORA Shin-Osaka 21
Osaka City
Chuo-ku,
NOF Midosuji Bldg
Osaka City
Chuo-ku,
Nomura Osaka Bldg
Osaka City
Nishi-ku,
Nomura Yotsubashi Bldg
Osaka City
Chuo-ku,
NOF Kobe Kaigan Bldg
Kobe City
Naka-ku,
Hiroshima Tatemachi NOF Bldg
Hiroshima City
Naka-ku,
Nomura Hiroshima Bldg
Hiroshima City

Greater Tokyo

Central Tokyo

Shinjuku Nomura Bldg

Other Regional Cities

Location

Total

Total Floor Space（㎡）(Note 1, 2)
117,258.88(Entire building)①81,421.13②25,260.48

Leasable
Space （㎡）

Acquisition
Date

Acquisition
Price (￥mln)

31,589.26

30,696.81

97.2%

82

1,262.37

Each 1/4 floor

2,600

5%

2003.1238,73042,084.11

42,084.11

100.0%

1

2,214.55

Each 1/6 floor

2,700

6%

2005. 38

33,08029,430.67

19,233.25

19,233.25

100.0%

12

2,615.23

Each span

2,650

14%

2003.12

20,6001995. 121

①43,893.46②17,587.30

18,051.60

18,051.60

100.0%

15

1,331.14

Each 1/4 floor

2,650

6%

2004. 214,8001987. 985,358.55

3,420.16

3,420.16

100.0%

3

442.38Each span

2,500

12%

2004. 912,000Completion

Floors(Ground)1978. 550

1996. 6

26

1961. 4(Extension 1968.4)# ofLeased Space Occupancy（㎡）
Rate
Tenants

Standard Floor
Space （㎡）

Air
Conditioning

Room
Height （㎜）PML(Note 3)2005.2

78,683.73

8,821.24

8,821.24

100.0%

1

980.00Each span

2,500～2,7004%

2006. 911,5001991. 3

7

11,425.20

8,165.10

8,165.10

100.0%

9

1,260.41

Each span

2,600

14%

2004. 5

10,0001982.411①10,902.22②5,858.26

5,663.19

5,663.19

100.0%

21585.99Each span

2,500

13%

2005.118,800

1959. 896,478.50

4,715.20

4,715.20

100.0%

13

519.06

Each span

2,500

17%

2005. 97,400

1987.118

10,077.02

7,667.55

6,739.26

87.9%

4928.29Each floor

2,600

11%

2003.12

5,500

1997. 48

5,782.27

4,160.94

4,160.94

100.0%

1

626.33

Each 1/2 floor

2,700

6%

2004. 2

5,150

1990.109①3,799.40②3,036.14

2,854.83

2,854.83

100.0%

8

388.87

Each 1/2 floor

2,600

12%

2007.8

3,160

1988. 7

94,698.97

4,076.38

4,076.38

100.0%

8

480.07

Each floor

2,550

14%

2004. 2

3,080
2,280

1986. 38

3,160.05

2,464.71

2,464.71

100.0%

5

327.66

Each floor

2,500

12%

2004. 6

1989.117

18,051.08

18,218.17

18,218.17

100.0%

1

1,986.46

Each span

2,550

14%

2003.12

7,550

1990. 911

21,516.54

13,683.47

11,997.05

87.7%

13

1,148.45

Each span

2,650

10%

2003.126,416

2,058.97

2,058.97

100.0%

7

235.47

Each floor

2,580

14%

2008.32,080

3,900.85

3,900.85

100.0%

10

193.93～590.35

Each floor

2,500

14%

2006. 2

3,700

1993.3

9

1991.10

11(Exclusively owned area)

3,405.76①6,462.19②3,868.36①33,706.03②6,865.80

1994.12126,853.38

6,853.38

100.0%

17

1,099.32

Each 1/4 floor

2,600

10%

2003.123,290

1988. 3

12

10,932.69

8,253.41

8,152.60

98.8%

27

684.62Each 1/3 floor

2,550

16%

2005. 6

9,500

1985.109

10,055.13

6,817.76

6,817.76

100.0%

31

794.75

Each 1/8 floor

2,500

14%

2005. 5

5,050

1990.10

9

11,149.99

8,074.83

8,074.83

100.0%

3

940.84Each span

2,500

17%

2003.12

3,600
2,993

1989.311

6,445.72

4,236.46

3,981.63

94.0%

14

418.39Each 1/3 floor

2,600

19%

2007.91981. 812

18,842.51

13,623.94

11,968.22

87.8%

40

1,105.75

Each floor
Auxiliary

2,580

2%

2006. 6

6,820

1966. 107

9,062.04

9,062.04

9,062.04

100.0%

1

796.31Each span

2,600

2%

2008. 2

3,700

1988.39

7,461.25

5,060.45

4,836.02

95.6%

18

592.55

Each floor

2,500

1%

2007.93,430

1968. 7

11

12,977.45

6,165.00

6,165.00

100.0%

29

802.79Each span

2,480

8%

2005.11

3,200

1999.12

10

10,479.63

5,887.40

5,861.90

99.6%

24

664.68Each span

2,700

5%

2003.122,970

1991. 312

7,363.25

4,655.74

4,655.74

100.0%

12405.96

Each 1/2 floor

2,460

14%

2005. 93,550

2000.7

11

34,616.84

34,616.84

34,616.84

100.0%

1

2,035.94

Each 1/16
floor

2,600

9%

2007. 323,7001994. 7

21

38,252.92

21,653.31

20,604.10

95.2%

20

1,008.28

Each 1/4 floor

2,700

9%

2008. 4

19,251

1974. 410

21,007.98

12,240.88

11,415.98

93.3%

15

1,234.14

Each 1/4 floor

2,600

13%

2005.11

12,9001983.12

12

23,522.82

16,977.79

16,830.04

99.1%

27

1,336.52

2,500

19%

2003.12

6,410

1991.1115

16,845.87

11,558.68

11,305.27

97.8%

17

797.352,650

13%2003.12

3,940

1998. 2

16

10,292.93

6,425.16

6,029.86

93.8%

32

528.43

Each span

2,600

7%

2003.123,280

1966.1112

8,206.91

4,432.02

3,544.25

80.0%

25

515.17

Each span

2,450

13%

2005.11

2,100

1976. 7

9

11,950.37

7,906.92

7,589.09

96.0%

16

1,047.54

Each floor
Auxiliary

2,450

11%

2003.12395,330.99

385,686.37

97.6%

583

Each floor
Auxiliary
Each floor
Auxiliary

7.0%

1,930
317,440(Note 1) Total floor space is taken from the registry book.
(Note 2) Total floor space of the properties owned in compartment, except NOF Technoport Kamata Center Bldg, is expressed as ① entire building, and ② portion owned by NOF.
(Note 3) Rate of PML (Probable Maximum Loss) for each building was calculated by Shimizu Construction. 7.0% at the bottom field is for the entire portfolio.

Appendix31

Earnings by Property(¥000)
Property Name
Number of business days
Rental business revenues
Rental revenues *incl. common charges
Other revenues
Rental business expenses
Property management costs
Taxes and duties
Utility expenses
Insurance expenses
Repairs and maintenances
Other expenses
Depreciation
Rental Profits
Net Operating Income (NOI)
Property Name
Number of business days
Rental business revenues
Rental revenues *incl. common charges
Other revenues
Rental business expenses
Property management costs
Taxes and duties
Utility expenses
Insurance expenses
Repairs and maintenances
Other expenses
Depreciation
Rental Profits
Net Operating Income (NOI)
Property Name
Number of business days
Rental business revenues
Rental revenues *incl. common charges
Other revenues
Rental business expenses
Property management costs
Taxes and duties
Utility expenses
Insurance expenses
Repairs and maintenances
Other expenses
Depreciation
Rental Profits
Net Operating Income (NOI)

Shinjuku
Nomura Bldg.
182
1,917,258
1,747,599
169,658
849,202215,224
159,617
175,707
3,129
114,02159,346
122,154
1,068,055
1,190,210
NOF Minami
Shinjuku Bldg.
182
104,668
91,125
13,54354,07812,784
8,714
7,160
166
18,513
1,833
4,904
50,59055,495

NOF Nihonbashi
Honcho Bldg.
182
182
871,559
831,263
40,296240,659
75,69837,83446,042
1,308
3,632
6,212
146,169
69,932
610,772
630,899
756,941
700,831

JAL Bldg.*

NOF Toyo-cho
Bldg.*
182

33,475
209,870
243,346

Tennozu ParkNOF Shibuya
Secom Medical
NOF Shiba Bldg.
Side Bldg.
Koen-dori Bldg.
Bldg.*
182
182
182
182
784,303366,804
339,368
674,804
339,198
301,328
109,499
27,60538,040403,531
81,998141,877
137,982
25,751
27,92452,00923,75922,896
31,947
11,61422,077175
287
541
11,9391,802
9,683
13,503
1,557
11,989155,973
17,22645,063
46,765
380,771284,806
181,854
197,490536,744
302,032
226,918
244,256

NOF Technoport
Toho Edogawabashi
Crystal Park Bldg.
Kamata Center Bldg.
Bldg.

182
426,861
370,569
56,292
202,046
51,91835,18939,459951
13,6704,498
56,358224,815
281,173

NOF Sendai
NOF Utsunomiya
NOF Nagoya
Aoba-dori Bldg.
Bldg.
Yanagibashi Bldg.
182
182
182
170,100
172,081
144,636
143,533
143,040
131,558
26,566
29,04013,077
93,695
107,380
90,241
24,986
24,075
14,131
17,507
14,447
12,104
16,16017,507
11,346
518
559
338
7,034
5,978
15,577
2,239
4,231
2,010
25,24940,58034,73376,40464,70054,394
101,654
105,280
89,12734
12,63910,773
1,865
6,856
1,347
384
1,171
28
29
3,895
5,782
9,678
Omron Kyoto
Center Bldg.*
182

182
131,036
117,580
13,45667,52522,012
9,746
8,419
159
3,115
2,307
21,76463,511
85,275

SORA Shin-Osaka21
6
20,16017,2582,902
25,943
2,799
542
1,653
68
94
160,580
20,785△ 5,782
318,188478,769
15,002

Nishi-Shinjuku
Showa Bldg.
182
321,043
293,717
27,326110,349
37,13527,922
18,359
750
1,024
6,096
19,061
210,694
229,755

NOF Tameike
NOF Shinagawa NOF Surugadai
Bldg.
Konan Bldg.
Plaza Bldg.*
182
182
182
224,856
253,180
209,685
228,338
15,17024,841
91,66995,64623,72422,941
16,616
15,344
16,48619,192
301
503
6,439
5,508
6,578
6,960
21,52225,19630,466133,186
157,533
101,250
154,708
182,730
131,717

Faret Tachikawa
NOF Kawasaki
NOF Yokohama
NOF ShinYokohama Odori
Center Square Higashiguchi Bldg. Nishiguchi Bldg. Yokohama Bldg.*
Koen Bldg.
182
182
182
182
182
238,737
333,349
257,873
110,973
218,725
288,638
229,687
92,701
20,011
44,711
28,186
18,271
128,123
147,772
96,62467,70647,23523,92826,746
13,422
14,66318,45618,1693,726
27,07523,962
15,886
15,746
487
539
491
271
1,718
13,738
9,294
5,955
5,569
2,885
2,607
272
31,37364,261
23,42734,07928,312
110,613
185,576
161,249
80,64543,266
141,987
249,838
184,677
114,725
71,579

Sapporo North
Plaza
182
338,295
283,927
54,367
165,684
36,73929,63945,609
873
3,913
7,432
41,475
172,610214,086

NOF Midosuji
Bldg.

NomuraOsaka Bldg.

Hiroshima
Tatemachi

NomuraHiroshima Bldg.

182

182

182

182

486,986
421,92465,061
235,291
45,976
51,84430,574892
34,285
4,333
67,384
251,694
319,079

533,510445,21388,297
218,195
67,99540,76751,147
1,124
15,704
5,797
35,659315,315
350,974

NomuraNOF Kobe Kaigan
Yotsubashi Bldg.
Bldg.

182
324,551
289,699
34,852
159,262
44,942
29,65527,078763
10,4402,468
43,912
165,289
209,202

182
176,460
146,980
29,479109,600
24,20516,09820,906
672
8,172
4,676
34,86866,859101,728

97,77880,561
17,21763,095
15,644
11,38011,608
309
4,366
4,426
15,35834,68350,042

Hatchobori NF
NOF Kanda
Bldg.
Iwamoto-cho Bldg.
182
182
105,986
153,821
95,681138,156
10,304
15,66437,727
41,79016,884
11,959
9,197
6,920
8,178
24
233
692
515
1,356
500
11,847
11,206
68,258112,03180,106123,237
JCB Sapporo
Higashi Bldg.*
83

Kita-Sanjo Bldg.
182
116,218
92,874
23,34464,664
14,486
5,162
16,032
348
1,569
2,629
24,43551,55375,98917,495
10,172
27,667

Total 37 Properties
12,183,126
11,057,640
1,125,486
5,213,008
1,260,581
941,567
790,510
23,074403,143
192,242
1,601,887
6,970,118
8,572,006

207,326
184,787
22,53986,824
26,53818,931
14,986
518
8,612
2,308
14,929120,502
135,431* Detailed figures are not disclosed due to compelling reasons. However, they are included in "Total 37 bldgs."

Appendix32

List of End-of-Period Appraisal Value
Acquisition Price

Other Regional Cities

Greater Tokyo

Central Tokyo

Property Name
Shinjuku Nomura Bldg
JAL Bldg
NOF Nihonbashi Honcho Bldg
Tennozu Park Side Bldg
NOF Shibuya Koen-dori Bldg
Secom Medical Bldg
NOF Shiba Bldg
Nishi-Shinjuku Showa Bldg
NOF Tameike Bldg
NOF Shinagawa Konan Bldg
NOF Surugadai Plaza Bldg
Hatchobori NF Bldg
NOF Kanda Iwamoto-cho Bldg
NOF Minami Shinjuku Bldg
Total Central TokyoNOF Toyo-cho Bldg
NOF Technoport Kamata Center Bldg
Toho Edogawabashi Bldg.
Crystal Park Bldg
Faret Tachikawa Center Square
NOF Kawasaki Higashiguchi Bldg
NOF Yokohama Nishiguchi Bldg
NOF Shin-Yokohama Bldg
Yokohama Odori Koen Bldg
Total Greater Tokyo
Sapporo North PlazaJCB Sapporo Higashi Bldg.
Kita-Sanjo Bldg
NOF Sendai Aoba-dori Bldg
NOF Utsunomiya Bldg
NOF Nagoya Yanagibashi Bldg
Omron Kyoto Center Bldg.
SORA Shin-Osaka 21
NOF Midosuji Bldg
Nomura Osaka Bldg
Nomura Yotsubashi Bldg
NOF Kobe Kaigan Bldg
Hiroshima Tatemachi NOF Bldg
Nomura Hiroshima Bldg
Total Other Regional Cities
Grand Total(¥ mln)38,73033,08020,60014,80012,00011,50010,000
8,800
7,400
5,500
5,150
3,160
3,080
2,280
176,080
7,550
6,416
2,080
3,700
3,290
9,500
5,050
3,600
2,993
44,179
6,820
3,700
3,430
3,200
2,970
3,550
23,70019,251
12,900
6,410
3,940
3,280
2,100
1,930
97,181
317,440

Book Valueat 9th Period End

Appraisal Valueat 9th Period End

Appraisal Valueat 8th Period End(¥ mln)39,10433,38920,582
13,61912,522
11,420
10,111
8,752
7,634
5,479
5,100
3,167
3,101
2,258
176,243
7,128
6,231
2,101
3,670
3,048
9,523
5,022
3,352
2,982
43,061
7,176
3,833
3,437
3,198
2,655
3,689
23,352
19,41012,903
6,394
3,692
2,993
2,395
2,561
97,694
316,999（Ａ）(¥ mln)72,60033,40027,40022,90014,00011,60010,90010,400
8,470
6,980
7,260
3,210
3,900
2,980
236,000
9,020
7,790
2,080
4,290
5,660
10,300
7,993
4,530
2,870
54,533
6,949
3,770
3,020
3,430
3,570
3,820
24,20018,60014,90011,500
6,980
3,490
2,200
2,700
109,129
399,662（Ｂ）(¥ mln)70,90032,90026,70022,00013,90011,60010,800
10,200
8,310
6,780
7,040
3,160
3,790
2,870
230,950
8,830
7,660
2,080
4,100
5,580
10,100
7,800
4,420
2,860
53,430
6,928
3,740
3,020
3,430
3,570
3,790
24,20018,60014,00011,000
6,610
3,460
2,060
2,570
106,978
391,358

Difference between Book Value and Appraisal Value\82,662 mln

*

*

*

Difference between
8th and 9th Period(¥ mln)
1,700
500
700
900
100
100
200
160
200
220
50
110
110
5,050
190
130
190
80
200
193
110
10
1,103
21
30
30
900
500
370
30
140
130
2,151
8,304

Change
2.4%
1.5%
2.6%
4.1%
0.7%
0.9%
2.0%
1.9%
2.9%
3.1%
1.6%
2.9%
3.8%
2.2%
2.2%
1.7%
4.6%
1.4%
2.0%
2.5%
2.5%
0.3%
2.1%
0.3%
0.8%
0.8%
6.4%
4.5%
5.6%
0.9%
6.8%
5.1%
2.0%
2.1%

* For these buildings acquired at the 9th Period,
appraisal value is that of the time of acquisition.

（\310,875 / unit）（Ｂ）－（Ａ）

Appendix33

Map of Property

01

02

Shinjuku Nomura Bldg

05

NOF Shibuya
Koen-dori Bldg

03

JAL Bldg

04

NOF Nihonbashi
Honchi Bldg

Tennozu Park
Side Bldg

06

Secom Medical Bldg

16

18

19

20

29

31

34

NOF Technoport
Kamata Center Bldg

Chrystal Park Bldg

Faret Tachikawa
Center Square

NOF Kawasaki
Higashiguchi Bldg

NOF Nagoya
Yanagibashi Bldg

SORA Shin-Osaka 21

Nomura Yotsubashi
Bldg

35

NOF Kobe
Kaigan Bldg

Appendix34

Acquisition Channel of Property
Acquisition
ChannelOriginally owned
by or developedby Nomura Real
Estate Group
Companies

Key Properties
Acquired at Listing

Shinjuku
Nomura Bldg.

Faret Tachikawa
Center Square

Key Properties Acquired after Listing

Tennozu Park
Side Bldg.

Secom Medical Bldg.

Omron Kyoto
Center Bldg.

8 Properties
Cumulative Acquisition Price:¥ 104.3 bln

Nomura Yotsubashi Nomura Osaka Bldg.
Bldg.

• Information fromor
• Intermediation *by Nomura Real
Estate Group
Companies

NOF Nihonbashi
Honcho Bldg.

NOF Shinagawa
Konan Bldg.

JAL Bldg. *NOF Minami
Shinjuku Bldg.

Nishi-Shinjuku
Showa Bldg.

Sapporo North Plaza

17 Properties
Cumulative Acquisition Price:¥ 130.4 bln

NOF Toyo-cho Bldg.

NOF Kobe
Kaigan Bldg.

NOF Yokohama
Nishiguchi Bldg.

NOF Sendai
Aoba-dori Bldg.

NOF
Midosuji Bldg.

Hatchobori NF Bldg.

Information fromsources outside
Nomura Real
Estate Group

12 PropertiesNOF Shiba Bldg.

NOF Shibuya
Koen-dori Bldg.

NOF Kawasaki SORA Shin-Osaka 21
Higashiguchi Bldg.

Cumulative Acquisition Price:¥ 82.7 bln
Appendix35

Fund Summary
1st Period
April 2004

2nd Period
October 2004

3rd Period
April 2005

4th Period
October 2005

5th Period
April 2006

6th Period
October 2006

7th Period
April 2007

8th Period
October 2007

9th Period
April 2008

Total Assets
Interest-bearing Liabilities
LTV (Based on Total Assets)
Unitholders' Capital
Outstanding Units Issued
Net Assets
Net Assets per Unit
End-of-Period Closing Unit PriceMarket Capitalization

¥ mln
¥ mln
%
¥ mln
unit
¥ mln
¥
¥
¥ mln

147,946
61,00041.2
71,706
148,600
73,233492,820
645,000
95,847

173,545
64,50037.2
92,168
184,650
94,774513,266
767,000
141,626

208,00396,50046.4
92,168
184,650
94,849513,672
758,000
139,964

239,067
93,00038.9
124,610
229,970
128,094
557,004
782,000
179,836

268,559
120,000
44.7
124,610
229,970
128,206
557,492
998,000
229,510

288,060
106,000
36.8
156,767
265,903
161,004
605,499
991,000
263,509

315,402130,000
41.2
156,767
265,903
161,221606,315
1,490,000
396,195

326,711140,000
42.9
156,767
265,903
161,272
606,510
1,160,000
308,447

353,730
165,700
46.8
156,767
265,903
161,267
606,488826,000
219,635

Operating Revenues
Operating Income
Net Income
Total Cash Distribution
Cash Distribution per Unit

¥ mln
¥ mln
¥ mln
¥ mln
¥

4,531
2,313
1,526
1,526
10,273

6,656
2,930
2,606
2,606
14,114

7,106
3,228
2,681
2,681
14,520

8,641
4,111
3,484
3,484
15,150

9,810
4,558
3,596
3,596
15,638

10,739
5,182
4,229
4,229
15,905

11,090
5,137
4,466
4,453
16,75011,968
5,725
4,486
4,498
16,91812,183
5,823
4,499
4,499
16,923

Total Portfolio (Based on Acquisition Price)
Number of Properties
Leasable Space
Number of Tenants
Occupancy Rate

¥ mln

%

127,260
15
180,793.50
264
93.3

151,540
18
194,673.65
277
94.4

184,62019
236,904.67
287
98.1

210,12023
261,428.50
357
97.3

240,82028
293,464.10
467
98.4

259,14030
316,132.49
512
98.2

282,84031
350,712.00
517
98.5

292,40934
362,859.72
533
97.9

317,44037
395,330.99
583
97.6

%
%
%
%
%
x

1.1
2.8
2.1
5.2
49.5
11.45

1.6
3.1
2.8
5.6
54.6
11.05

1.4
2.8
2.8
5.7
45.6
9.95

1.5
3.1
2.7
5.4
53.6
10.08

1.4
2.9
2.8
5.7
47.7
7.92

1.5
3.0
2.7
5.4
55.9
8.35

1.5
3.0
2.8
5.6
51.1
7.88

1.4
2.8
2.8
5.5
49.4
6.49

1.3
2.7
2.8
5.6
45.6
6.22

Net Asset Value per Unit (Based on Appraisal Value)

¥ mln
¥ mln
¥ mln
¥
¥

127,089
127,12030
202
493,023

151,815
151,500-315-1,707
511,559

185,406
187,290
1,883
10,199523,872

211,566
219,380
7,813
33,975590,979

241,901
261,120
19,21883,572641,064

259,449
294,037
34,587130,074
735,574

282,130
340,383
58,252
219,075
825,390291,853
366,938
75,084282,374
888,884

316,999399,662
82,662
310,875
917,363

NOI
Rate of NOI (p.a.)
Depreciation
Capital ExpendituresFFO
FFO per Unit

¥ mln
%
¥ mln
¥ mln
¥ mln
¥

3,350
7.2
666
22
2,193
14,757

4,451
6.2
949
511
3,555
19,255

4,970
6.1
1,023
484
3,719
20,142

6,125
6.1
1,229
1,016
4,727
20,559

6,952
5.9
1,399
934
5,034
21,889

7,591
6.0
1,471
588
5,739
21,585

7,763
5.7
1,478
757
5,985
22,509

8,286
5.8
1,518
1,252
6,039
22,714

8,572
5.7
1,601
1,346
6,134
23,069Return on Assets (ROA)(annualized)
Return on Equity (ROE)(annualized)
Capital-Asset Ratio
Debt-Service Coverage Ratio （DSCR）
End-of-Period Total Book Value
End-of-Period Total Appraisal Value
Total Latent Profit and Loss
Latent Profit and Loss per Unit㎡

Appendix36

Cash Flow Statement
8th Fiscal Period

9th Fiscal Period

May 1, 2007 - Oct 31, 2007

Nov 1, 2007 - Apr 30, 2008(¥000)(¥000)

I. Cash Flow of Operating Activities
Income before income taxes
Depreciation
Amortization of long-term prepaid expenses
Amortization of corporate bond issuance costs
Interest income
Interest expenses
Compensation for transfer of structures
Loss on disposal of tangible assets
Change in rental receivables
Change in consumption tax refundable
Change in trade accounts payable
Change in other accounts payable
Change in rent received in advance
Change in security deposits received
Decrease in sales of tangible fixed assets in trust
OthersSubtotalInterest received
Interest paid
Taxes and duties
Net cash provided by operating activities

4,486,801
1,518,317
1,255
45,065▲ 29,750
1,101,088▲ 10,893
1,606▲ 41,823
290,245
163,273▲ 101,744
69,53365,021
13,905
43,522
7,615,425
29,750▲ 1,069,888▲ 3,745
6,571,541

4,500,953
1,601,989
2,917
32,295▲ 32,898
1,175,471
10,174▲ 275,442▲ 70,490
349,217150,348▲ 181,816▲ 82,363
7,180,357
32,898▲ 1,131,556▲ 1,237
6,080,462

II. Cash Flow of Investing Activities
Purchase of tangible assets
Purchase of tangible assets in trust
Tenants' security deposits paid
Security deposits received
Security deposits in trust paid
Security deposits in trust received
Security deposits paid
Compensation for transfer of structures received
Net cash used in investing activities▲ 6,473,952▲ 4,299,768
285,756▲ 482,237
807,138▲ 20
10,893▲ 10,152,190▲ 25,398,623▲ 1,334,962▲ 18,086
1,013,767▲ 1,063,049
1,104,251▲ 25,696,703

13,500,000▲ 1,500,000▲ 2,000,000▲ 4,453,662
5,546,337

24,700,000▲ 23,500,000
19,981,250
23,500,000▲ 19,000,000▲ 4,497,891
21,183,359

1,965,688
32,050,815
34,016,503

1,567,118
34,016,503
35,583,622

III. Cash Flow of Financing Activities
Proceeds from short-term debt
Repayment of short-term debt
Proceeds from short-term investment corporation bonds

Proceeds from long-term debt
Repayment of long-term debt
Cash distribution to unitholders
Net cash provided by financing activities
IV. Change in Cash and Cash Equivalent
V. Starting Balance of Cash and Cash Equivalent
VI. Ending Balance of Cash and Cash Equivalent

Appendix37

Unit Price and Market Capitalization (Dec. 4, 2003 – June 11, 2008)

1,600,000
1,500,000
1,400,000
1,300,000

Market Capitalization (\ mln)

Unit Price ( \ )As of June 11, 2008
Market Capitalization : \238,687 mln
All-time High Price : \1,560,000
All-time Low Price :\505,000
Market Capitalization

5th Public Offering\756,560

TSE REIT Index (Note)

700,000

600,000

Unit Price
500,000

1,200,000
1,100,000

Initial Public
Offering

2nd Public Offering\588,000

3rd Public Offering\740,782

4th Public Offering\926,100

400,000

1,000,000
300,000

900,000
800,000

200,000
700,000
600,000

100,000

500,0000
400,000
2003/12 2004/3 2004/6 2004/9 2004/12 2005/3 2005/6 2005/9 2005/12 2006/3 2006/6 2006/9 2006/12 2007/3 2007/6 2007/9 2007/12 2008/3 2008/6(Note) TSE REIT Index on June 11, 2007 = NOF’s closing unit price on the same date (one year from June 11, 2007)

Appendix38Organization of the Asset Management Company

Corporate Profile
Shareholders’ Meeting[ Registered Trade Name ]Nomura Real Estate Asset Management Co., Ltd.

Auditors*Compliance & Risk Management Group(Responsibilities)
Businesses relevant to compliance and risk
management.
Internal audit.

Board of Directors[ Date of Incorporation ]Executive
Director

January 24, 2003
Compliance
Committee

Compliance & Risk
Management Group *[ Capital ]¥300,000,000

Office Management
Division

Residence Management
Division

Investment Committee

Investment Committee

Acquisition
Group

Asset
Management
Group

Fund
Management
Group

Financial &Control Group(Responsibilities)(Responsibilities)(Responsibilities)(Responsibilities)

 Businesses Businesses Businesses
 Fund raising.
relevant to due
relevant torelevant todiligence andmanagement,
management of  Accounting,taxes andacquisition ofmaintenanceportfolio,
liability
properties to be
and sale ofdisclosure ofmanagement
invested.
properties in theinformation (IR).
of NOF.
portfolio.
 Accounting,taxes andadministration of
NREAM.

Acquisition
Group

Asset
Management
Group

Fund
Management
Group

Financial &Control Group[ Shareholder ]Nomura Real Estate Holdings Inc. (100%)[ Number of Employees ]66 (including Directors)[ Description of Business ](Note)
Responsibilities of Groups under Residence Management Division are
omitted because these groups are not engaged in management of NOF.

Asset management business for investment
corporations (J-REITs)◆Registered for a financial instruments business:
Director of Kanto Local Finance Bureau No. 374◆Licensed for discretionary proxy in realty trading:
Minister of Land, Infrastructure and Transport
No. 18◆Licensed for real estate trading:Governor of Tokyo No. (2) 81679

NOF Management Division

Appendix39Below is a message announced jointly with the asset management company at the time of listing on December 4, 2003.

We, at Nomura Real Estate Office Fund Inc., believe that listingof Real Estate Investment Trust (REIT) serves to form a baseon which the nation can build their financial resources. The
long-term investment capital will contribute to stabilization of not
only the real estate market, but also the Japanese economy asa whole.
Many investors wish stable investment more than anything else.
Responding to such needs of asset building, we have set ourinvestment policy as being “stable over mid- to long-term”.
Wishing to make a contribution to the nation’s economic growth
in any way, we are determined to continue doing the best of ourability in our function to combine the private financial resources
directly with the real estates.
AN INVESTOR ORIENTED COMPANY
respecting the trust and expectation of the investors
Nomura Real Estate Office Fund, Inc.
(TSE code: 8959)
http://www.nre-of.jp/english/

Fund Manager: Nomura Real Estate Asset Management Co., Ltd.

This document has been prepared for the purpose of provision of information only, andshould not be construed as an offer, solicitation or commercial conduct of any natureassociated with any specific products. Investors wishing to purchase the investment
units of Nomura Real Estate Office Fund, Inc. should contact their own securities
brokers or dealers.
The forward-looking statements with respect to the future financial results contained inthis document should not be construed as a guarantee of the actual performance in the
future.
Although the information contained in this document is intended to be complete andthorough, there is no assurance of precision and safety of the same. Please note thatthe contents of this document is subject to change or cancellation without prior notice.
It is prohibited to make duplication, reproduction, distribution or use of any part or wholeof the information contained in this document without express prior written consent.