Financial Results of 8th Fiscal Period(Ended October 31, 2007)

Contents

1. Overview of Fund Management

4. Fund Management Results

Appendix• Highlights of the 8th Fiscal Period• Changes in Performance• Results of Investment Sector
15• Portfolio Status (1)16• Portfolio Status (2)17• Diversification of Tenants
18• Results of Asset Management Sector 19• Increase in Rent of Portfolio
20• End-of-Period Appraisal Value
21• Move-ins and Move-outs
22• End-of-Period Financial Status (1)23• End-of-Period Financial Status (2)24• List of Property

26• Earnings by Property

27

2
3

2. Future Management Policies• Analysis of the Market• Future Growth Strategies

56

3. Details of the Financial Results• Income Statement• Balance Sheet• Cash Distribution• Interest-Bearing Debts• Unitholders• 9th Fiscal Period (April 2008)
Forecast

8
9
10
11
12
13

• List of End-of-Period Appraisal Value 28• Map of Property

29• Acquisition Channel of Property

30• Fund Summary

31• Cash Flow Statement32• Unit Price and Market Capitalization 33• Organization of the AssetManagement Company

34

1. Overview of Fund Management

Highlights of the 8th Fiscal Period (May 1, 2007 ~ October 31, 2007)
2007)
Performance of the 8th Period (184 business days)(Reference)
8th Period(October 2007)

Comparison
with the Previous Period

Operating Revenues¥ 11,968 mln+ ¥ 877 mln+ 7.9％¥ 11,749 mln+ ¥ 219 mln+ 1.9％

Operating Income¥ 5,725 mln+¥ 587 mln

+ 11.4％¥ 5,426 mln+¥ 298 mln

+ 5.5％Net Income¥ 4,486 mln+ ¥ 20 mln+ 0.4％¥ 4,201 mln+¥ 285 mln

+ 6.8％¥16,918 / unit

+ ¥ 168 / unit

+ 1.0％¥ 15,800 / unit

+ ¥ 1,118 / unit

+ 7.1％Cash Distribution
per Unit

Forecasts
as of June 15, 2007

Comparison
with Actual Results

Notable Activities
Investment Sector

Invested in 3 Properties ( ¥9,500 mln)
Acquisition ofzHatchobori NF Bldg (¥3.16 bln)zY okohama Odori Koen Bldg(¥2.99bln)
zKita-Sanjo Bldg(¥3.43bln)

End-of-Period Total Portfolio:¥292.4292.4 bln
1. Ov erview of Fund Management

Asset Management Sector

Improved Rental Levelz Steady increase in rents f or both
new and renewed tenants

Financial Sector
Focus on financial stability
z Maintenance of conserv ativ e LTVz Establish balanced f inancial structurez Implementation of v arious
ref urbishment works

Average Unit Rent of Portfolio:

・Duration+1.2% (31 properties held at

・Fixed Interest

the end of 7th period)

5.5.5 years
87.5%

2

Changes in Performance(¥ mln)14,000(¥ mln)＜Operating Revenues＞
11,968 12,109

12,00010,739 11,090

5,725 5,636

6,000
5,182 5,137

9,810

10,000＜Operating Income＞

7,000

5,000

4,558

8,641
8,000

6,656

4,111
4,000

7,106

3,000

6,000

4,531

3,228

2,313

2,000

4,000
2,000

2,930

Apr.
2004

Oct.
2004

Apr.
2005

(¥ mln)

Oct.
2005

Apr.
2006

Oct.
2006

Apr.
2007

Oct.
2007

Apr.
2008
(Forecast)

Apr.
2004

(¥)

＜Net Income ＞

5,000

1,000

4,466 4,486 4,334
4,229

Oct.
2004

Apr.
2005

Apr.
2006

Oct.
2006

Apr.
2007

Oct.
2007

Apr.
2008
(Forecast)＜Cash Distribution per Unit＞

18,00016,750 16,918

16,000

4,000

Oct.
2005

15,1503,484 3,596

14,114

15,638 15,905

16,30014,52014,0003,000

2,606 2,681
12,000

2,000

1,000

10,273
1,526

10,000
8,000

Apr.
2004

Oct.
2004

Apr.
2005

1. Ov erview of Fund Management

Oct.
2005

Apr.
2006

Oct.
2006

Apr.
2007

Oct.
2007

Apr.
2008
(Forecast)

Apr.
2004

Oct.
2004

Apr.
2005

Oct.
2005

Apr.
2006

Oct.
2006

Apr.
2007

Oct.
2007

Apr.
2008
(Forecast)3

2. Future Management Policies

Analysis of the Market

Real Estate Investment Market
Current

Future• Private funds and originators seeking timing of sale
• Changes in acquisition approaches by funds due to changes infinancial market• As a result, acquisition cap rate seems to have bottomed• Property sales prompted by implementation of “Financial Instruments andExchange Law” and refinancing• The balance of supply and demand will not be reversed; acquisition cap rate
expected to stay flat

Number of sales may gradually increase dependingon market conditions

Office Leasing Market
Current

Future• Slowing of increase in asking rents for large properties incentral Tokyo• In the Tokyo metropolitan area, rents to continue increasing for medium-sizedproperties and surrounding areas• Increase in asking rents continues in suburban Tokyo andmedium-sized properties• Rates in regional cities will start increasing, following Osaka and Nagoya

Long-term increasing trend for office lease market to
Longcontinue, with staggered timing by region• Overall occupancy stabilizing in regional cities due to economic
recovery

J-REIT Market
FutureCurrent• Valuation seems appropriate after large adjustment ininvestment unit price• Difference in growth prospective from funding capacities has
become apparent• Market growth has slowed down in terms of number of listed
REITs and market cap
2. Future Management Policies• Investors more strict on risk/return evaluation (difference in returns to expand)• Primary offerings (POs and IPOs) will become increasingly difficult

Funds reorganized / consolidated through change insponsorship and M& As

5

Future Growth Strategies
External Growth : “Continuous expansion of portfolio size
• Continue investment in carefully selected premium properties• Increase market coverage for property sales information and enhance sourcing
capacities• Continue “the Premium Capital Increase” along with expansion of asset size

・ Stabilize profit through portfolio
expansion・ Improve BPS

Aim for“Further Stabilization of Fund Profits”
Profits”
And“Steady Growth of EPS”
EPS”
• Improve portfolio NOI• Smooth repair expenses
Internal Growth:“Improve and stabilize portfolio profitability”
profitability”• Increase in average unit rental (2-3% p.a.)• Early implementation of large-scale repair works• Start considering fixing rent for large tenants

2. Future Management Policies• Maintain / secure financing
capacities• Control interest rate risks
Financial Strategy:“Maintain and further enhance credibility”
credibility”• Maintain stable financial position through appropriate LTV
control, etc.
• Continue active IR activities including debt IR

6

3. Details of the Financial Results

Ren ta l Bu siness Reve nues

Operating Revenues
Rental business revenues
Rental revenues
Common area charges
Other rental business revenues
Monthly parking revenues
Incidental income
Other rental revenues
Miscellaneous revenues
To tal Re ntal Busine ss Revenu esProfits on Sales of Rea l E st ate

Re nta l Busine ss Expen ses

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 Renta l B usin ess Exp enses

Asset m anagement fees

Non-Operating Profits

Sellin g an d administrative e xpe nses

Rental Profits
Operating Profits
Non-Operating Revenues
Co mpe nsation fo r su perficies esta blish ment
Other no n-o perating revenu es

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

7th Fiscal Period

8th Fiscal Period

Nov. 1, 2006 - Apr. 30, 2007(¥000 )(%)

May 1, 2007 - Oct. 31, 2007(¥ 000)(%)

11,090,987
9,981,093
8,038,230
1,942,862
1,109,894
238,824
798,947
70,899
1,222
11,090,987−
5,953,306
1,135,710
857,744784,754
22,713350,087
176,271
1,478,414
4,805,696
976,483
171,125
6,285,290
5,137,681
404,195
295,747
108,447
1,075,054
563,127
306,543
40,641
87,97376,768▲ 670,858
4,466,823
4,466,823
605
22
4,466,195
106
4,466,301

100.0
90.0
72.5
17.5
10.0
2.2
7.2
0.6
0.0
100.0
−
53.7
10.2
7.7
7.1
0.2
3.2
1.6
13.3
43.3
8.8
1.5
56.7
46.3
3.6
2.7
1.0
9.7
5.1
2.8
0.4
0.8
0.7
▲ 6.0
40.3
40.3
0.0
0.0
40.3
0.0
40.3

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
69,098−69,0981,307,920
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

3.Details of the Financial Results

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

Rental Business Revenues
The total number of properties in the portf olio at the 8th period has
become 34 as a result of new acquisition of 3 properties:
Hatchobori NF Bldg, Y okohama Odori Koen Bldg, and Kita-Sanjo Bldg.
Occupancy rate for the 8th period (October 2007) was 97.9%, down
0.6% f rom 98.5% for the 7th period (April 2007).

Taxes and Duties
Property taxes, urban planning taxes and other duties f or the 8th
period were charged on the 31 properties out of the total 34 properties
held at the end of the 8th period.

Repairs and Maintenances
In addition to cost of repair of ¥362 mln, there was capital expenditureof ¥1,252 mln, of which ¥138 mln was an initial reserv e.

Rental Profits: ¥6,768 mln(+ ¥482 mln from the prev ious period)
Additional rev enues from the newly acquired 3 property: + ¥43 mln
Increase in revenues f rom the existing 31 properties: + ¥439 mln

Incidental Revenues:

Revenues recei ved as utility c harges, charges forusage of facility and signboard, etc.
Other Rental Revenues:
Hourly par king c harges, etc.
Miscellaneous Revenues : Ground rents, etc .
Other Expens es:
Trust fees, c ommissions, other maintenanc e fees , etc.
Operating Expenses:
custodian, Administrati ve ser vice, and auditing fees, etc.
Non-operati ng Expens es: Cost of restitution in i ntegrum, etc

8Balance Sheet

AssetsAssetsCur rent As sets
Cash and cash equivalents
Cash and cash equivalents in trust
Other curr ent as sets
Fix ed As sets
Tangible assets
Propeties
Buildings
Lands
Properties in trus t
Buildings
Lands
Other tangible ass ets
Other tangible as sets
Intangible as sets
Trus t and other intangible assets
Inves tments and other as sets
Sec urity deposits
Investments and other ass ets
Deferred Ass ets
Is suing cost of c or poration bonds

Total Assets

7th Fiscal Period

8th Fiscal Period

as of Apr. 30, 2007(¥000)(%)
32,816,788
10.4%
12,046,410
3.8%
20,004,404
6.3%
765,973
0.2%
282,376,844
89.5%
282,130,219
89.5%
15,209,137
4.8%
4,201,142
1.3%
11,007,994
3.5%
266,903,384
84.6%
79,250,169
25.1%
187,653,215
59.5%
17,6970.0%
17,697
0.0%
1,929
0.0%
1,929
0.0%
244,695
0.1%
211,230
0.1%
33,4650.0%
208,9250.1%
208,9250.1%

as of O ct. 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%
222,6430.1%
211,250
0.1%
11,3930.0%
163,859
0.1%
163,859
0.1%

315,402,5 57

32 6,711,886

100.0%Cash and Cash Equivalents
Deposits in own name
Equivalent to sec urity deposits rec eived
Equivalent to res erved c apital expenditure
Others(¥ mln)13,970
2,347
3,355
8,267

Deposits in trus t
Equivalent to sec urity deposits rec eived
Equivalent to res erved c apital expenditures
Others

20,046
13,066171
6,808

Tangible Assets(¥ ml n)Acquisition Accumulated Depreciati on for End-of-term
pricedepreciati on c urrent ter mbook value

10 0.0%Properties

Liabilities and Net Assets
7th Fiscal Period

8th Fiscal Period

Unitholders ' Equity
Unitholders' c apital
Retained earnings
Varianc e from v aluation and trans lation
Deferred hedge gains

as of Apr. 30, 2007(¥000)(%)
26,768,779
8.5%
644,5030.2%
1,500,000
0.5%
21,000,000
6.7%
1,586,180
0.5%
1,880,883
0.6%
157,2120.0%
127,412,588
40.4%
44,500,000
14.1%
63,000,000
20.0%
662,645
0.2%
19,195,895
6.1%
54,0480.0%
154,181,368
48.9%
161,233,495
51.1%
156,767,193
49.7%
4,466,301
1.4%▲ 12,305▲ 0.0%▲ 12,305▲ 0.0%

as of O ct. 31, 2007(¥000)(%)
41,469,712
12.7%
807,777
0.2%
13,500,000
4.1%
23,000,000
7.0%
1,997,921
0.6%
1,950,417
0.6%
213,595
0.1%
123,969,197
37.9%
44,500,000
13.6%
59,000,000
18.1%
948,401
0.3%
19,520,796
6.0%−−
165,438,909
50.6%
161,265,816
49.4%
156,767,193
48.0%
4,498,622
1.4%
7,160
0.0%
7,160
0.0%

Total Net Assets
Total Liabilities and Net Assets

161,221,1 89
315,402,5 57

16 1,272,976
32 6,711,886

Cur rent Liabilities
Trade accounts payable
Shor t-ter m debt

Liabilities

Long -te rm de bt to be rep aid wi th in 1 year

Other acc ounts payable
Rent rec eived in advance
Other curr ent liabilities
Fix ed Liabilities
Corporation bonds
Long- term debt
Security depos its
Security depos its in trus t
Other fix ed liabilities

Net Assets

Total Liabilities

51.1%
100.0%

301,558

9,705(1,518)291,853

Buildings in trust

89,3889,506(1,434)79,882Lands in trus t

190,369--

190,369

Buildings

6,983

198

(83)

6,784

Lands

14,817--

14,817

Debts
Balance of i nter est-bearing debts

Interest-bearing debts ratio¥140,000 mln

S/T debts + L/T debts + Corp bonds
T otal assets

42.9%

L/T debts + C orp bonds
Total debts

73.9%

Long-term interest-bearing debt rati o

4 9.4%
10 0.0%3.Details of the Financial Results

9Cash Distribution

Cash Distribution

Item

7th Fiscal Period

8th Fiscal Period

f rom Nov. 1, 2006
to A pr. 30, 2007

from May 1, 2007
t o Oct. 31, 2007

z Cash Distribution

Retained Earnings(¥000)

4, 466,301

4,498,622

Cash Distribution(¥000)

4, 453,875

4,498,546

16,75016,91812,42676

Cash Distribution per Unit(¥)

Balance Carried Forward (¥000)

Cash distribution for the 8th fiscal period was deci ded to be approximatel y
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 cas hdistribution per unit of ¥16,918.

Comparison with Forecasts
ForecastsItemannounced onJune 15, 2007

Actual Results

Difference
8th Fiscal Period (amount)

Diff erence(%)

Operating Revenues(¥ mln)11, 749

11,968219

1. 9

Current P rofit s(¥ mln)4, 202

4,486

284

6. 8

Net I ncome(¥ mln)4, 201

4,486

285

6. 8

(¥)

15, 800

16,9181, 118

7. 1

Cash Distribution per Unit

3.Details of the Financial Resultsz Difference between Forecasts and Actual ResultszOperating Revenues
Incremental revenues brought by acquisition of H atchobori NF Bldg,
Yokohama Odori Koen Bldg, Kita-Sanj o Bldg, and the other 31 bldgs:¥218 mlnz

Current Pr ofits
Differenc e in r ental business expenses from compr ession of repairs andmaintenances, etc .: + ¥89 ml n

10

Interest--Bearing Debts
Interest
As of October 31, 2007
LenderAmountType of Interest

Inter est Rate (p.a.)

Repayment Date

R emar ks

5 finan insti¥3,200 mln

Floating

1.22083% (F rom Aug. 9, 2007 to Dec. 27, 2007)

Dec. 27,2007

1 finan insti¥3,500 mln

Floating

1.13833% ( From Aug. 27, 2007 to Dec. 27, 2007)

Dec. 27,2007

5 finan insti¥6,800 mln

Floating

1.24667% ( From Sep. 27, 2007 to Dec. 27, 2007)

Dec. 27,2007

6 finan insti¥8,500 mln

Fixed (N ote 3)

1.00625% (Weighted average after inter est rate swap)

Dec. 8, 2007

5 finan insti¥7,500 mln

Fixed (N ote 2)

1.22500% (Weighted average after inter est rate swap)

F eb. 26, 2008

1 finan insti¥3,000 mln

Fixed

1.05250%

F eb. 26, 2008

4 finan insti¥4,000 mln

Floating

1.29000% ( From Aug. 27, 2007 to Feb. 26, 2008)

Aug. 26, 2008

16 finan insti¥36,500 mln

-

-

-

5 finan insti¥8,000 mln

Fixed (N ote 1)

1.66750% (Weighted average after inter est rate swap)

Dec. 8, 2008

4 finan insti¥5,000 mln

Fixed

1.51625%

Dec. 8, 2008

2 finan insti¥2,000 mln

Fixed (N ote 4)

1.19000% (Weighted average after inter est rate swap)

F eb. 26, 2009

1 finan insti¥3,000 mln

Fixed (N ote 2)

1.77500% (Weighted average after inter est rate swap)

F eb. 26, 2010

1 finan insti¥1,000 mln

Fixed

1.50625%

F eb. 26, 2010

3 finan insti¥2,500 mln

Fixed

1.48375%

F eb. 26, 2010

2 finan insti¥2,000 mln

Fixed

1.65500%

Aug. 26, 2010

5 finan insti¥7,500 mln

Fixed (N ote 4)

1.68000% (Weighted average after inter est rate swap)

F eb. 26, 2011

3 finan insti¥4,000 mln

Fixed (N ote 6)

1.63825% (Weighted average after inter est rate swap)

Aug. 26, 2011

7 finan insti¥11,000 mln

Fixed (N ote 5)

1.89764% (Weighted average after inter est rate swap)

F eb. 26, 2012

5 finan insti¥5,000 mln

Fixed

1.43750%

Aug. 26, 2012

1 finan insti¥1,000 mln

Fixed

1.53625%

Aug. 26, 2012

1 finan insti¥1,000 mln

Fixed

1.75250%

F eb. 26, 2013

1 finan insti¥2,000 mln

Fixed

1.99250%

F eb. 26, 2013

3 finan insti¥4,000 mln

Fixed

1.98000%

Mar. 19, 2014

T otal long-term debt

23 finan insti¥59,000 mln

-

-

-

-

T otal debt

28 finan insti¥95,500 mln

-

-

-

-

1st series corp bondPrivate placement¥5,000 mln

Fixed

1.85%

Mar. 16, 2015

2nd ser ies cor p bondPrivate placement¥5,000 mln

Fixed

2.47%

Mar. 16, 2020

3rd ser ies cor p bondPublic offering¥10,000 mln

Fixed

1.19%

Nov. 29, 2010

4th ser ies cor p bondPublic offering¥10,000 mln

Fixed

2.05%

Nov. 30, 2015

5th ser ies cor p bondPublic offering¥5,000 mln

Fixed

1.61%

Mar. 19, 2012

6th ser ies cor p bondPublic offering¥5,000 mln

Fixed

2.21%

Mar. 17, 2017

7th ser ies cor p bondPublic offering¥4,500 mln

Fixed

2.90%

Mar. 17, 2028

Total corporation bond-

¥44,500 mln

-

-

-

-

Grand total

28 finan insti¥140,000 mln

-

-

-

-

Short- term debt(including long-term
debt
due for r epayment
within one year )Total shor t-term debt

Long-term debt

(Note 1) Fixed by interest rate swap from Dec. 8, 2003
(Note 2) Fixed by interest rate swap from May 27, 2004

(Note 3) Fixed by interest rate swap from Dec. 8, 2004
(Note 4) Fixed by interest rate swap from Feb. 27, 2006

3.Details of the Financial Results

U nsecur ed /Unguaranteed-

U nsecur ed /Unguaranteed

U nsecur ed /Unguaranteed(Note 5) Fixed by interest rate swap from Dec. 8, 2006
(Note 6) Fixed by interest rate swap from Mar. 19, 200711

Unitholders

Breakdown of Financial Institutions

Number of Unitholders(Units)Financial Institutions
Other Domestic Corporations
Foreign Corporations

Individuals
11,887 （95.1％）

7th Period(Apr. 2007)

167 （1.3％）
191 （1.5％）
255 （2.0％）

12,500Unithol ders
Financial Institutions
Other Domestic Corporations
Foreign Corporations

Individuals
10,884 （94.7％）

8th Period(Oct. 2007)

164 （1.4％）
185 （1.6％）
259 （2.3％）

25%

50%

75%

43,86816.5%

36,78013.8%

Trust BanksLife Insurance Companies

71,19226.8%

81,329

30.6%

7,413

2.8%

4,724

1.8%

Non-Life Insurance Companies

3,600
16,612

1.4%
6.2%

2,729
17,753

1.0%
6.7%

142,68553.7%

143,315

53.9%

Units

Ratio

1 Japan Trustee Services Bank, Ltd.

21,557

8.11%

2 NikkoCiti Trust and Banking Corporation

19,122

7.19%

3 The Master Trust Bank of Japan, Ltd.

16,448

6.19%

4 Trust & Custody Services Bank, Ltd.

15,383

5.79%

5 Nomura Real Estate Development Co., Ltd.

13,326

5.01%

6 Kawasaki Gakuen

7,000

2.63%

7 The Nomura Trust and Banking Co., Ltd.

6,954

2.62%

8 The Bank of IKEDA, Ltd.

5,387

2.03%

9 The State Street Bank and Trust Company

5,168

1.94%

10 The Bank of New York, Treaty JASDEC Account

4,850

1.82%

100%

Number of Investment Units

265,903
Units

Banks

Top 10 Unitholders
0%

8th Period(Oct. 2007)

8th Period

Other Financial Institutions

11,492Unithol ders

7th Period(Apr. 2007)
265,903
Units

7th Period

Financial Institutions
142,685 units（53.7％）

Individuals
29,915 units（11.3％）

Financial Institutions
143,315 units（53.9％）

Individuals
26,480 units（10.0％）

Other Domestic
Corporations
26,032 units（9.8％）

Other Domestic
Corporations
25,734 units（9.7％）

Foreign
Corporations
67,271units（25.3％）

Foreign
Corporations
70,374units（26.5％）

Unitholders

Total
0%

25%

50%

75%

115,195 43.32%

100%(The ratio of Top 10 Unitholders for the 7th Period: 39.46%)
3.Details of the Financial Results

129th Fiscal Period (April 2008) Forecast

8th Period(¥mln)

9th Period
Forecasts(¥mln)

Difference(¥mln)(%)

Re ntal busine ss revenues
Oth er rental business revenue s
Total rental busine ss revenues
Profit on sale of real estate
Ope rating Revenues
Property management costs
Taxes and duties
Utility expenses
In surance expense s
Re pairs and maintenances
Oth er exp enses
De preciation
Total rental busine ss expenses
Asset management fees
Operating expenses
Ope rating expenses
Re ntal business re venues
Ope rating Profits
No n-operating reve nues
No n-operating expenses
Non-operating Profits
Current Profits
Inco me beofore income taxes
Corporate, local and enterprise taxes
Tax adjustment
Net Income
Retai ned earnings brought forward
Retai ned earnings at end of pe riod

10,694
1,264
11,9589
11,968
1,197
939
937
23
362
213
1,518
5,190
874
177
6,243
6,768
5,725
69
1,307
▲1,238
4,486
4,486
0
−
4,486
12
4,498

10,947
1,161
12,109−12,109
1,376
938
806
24
544
153
1,574
5,418
880
172
6,472
6,690
5,636
−
1,301
▲1,301
4,335
4,335
1
0
4,334
0
4,334

252
▲102
150
▲9
140
179
0
▲131
1
181
▲59
56
228
6
▲5
229
▲77
▲88
▲69
▲6
▲62
▲151
▲151
0
0
▲152
▲12
▲164

2.4
▲8.1
1.3
▲ 100.0
1.2

Outstanding units at period-end (unit)

265,903
16,918265,903
16,300

0
▲618

0.0
▲ 3.7

Cash distribution per unit (¥)

3.Details of the Financial Results

15.0

Rental Business Revenues
Forecasts were made f or the 9th period on the basis that the
number of properties under management would remain to be 34
without any new acquisition or sale.

▲0.1
▲14.0

5.6
50.2
▲27.9
3.7
4.4
0.7
▲2.8
3.7
▲1.2
▲1.6
▲100.0
▲0.5
5.1
▲3.4
▲3.4

65.3
−
▲3.4
▲99.4
▲3.7

Taxes and Duties
Property taxes, urban planning taxes and other duties f or the 9th
period were estimated on the basis that 33 properties out of 34
properties, which were held at the end of the 8th period, would
be taxable f or that period.

Other Rental Business Rev enues:
Rev enues received as monthly parking charges,
utility charges, charges for usage of facility, etc.
Other Expenses: Trust f ees, commissions, other maintenance f ees,etc.
Operating Expenses:
custodian, Administrative serv ice, and auditingf ees, etc.
Non-operating Expenses:
Interest costs, Interest expenses on bonds,
Amortization of bond issuance costs, etc.

13

4. Fund Management Results

Results of Investment Sector

Investment Environments since 8th Period

Changes in Total Portfolio (by Acquisition Price)(¥ bln)350
Shinjuku Nomura Bldg

282.8 292.4

210.1
184.6

200

151.5

100

104.2

127.2

100
50
37.2%

0
Dec. 2003
at Listing

30.4% 25.6%
Oct. 2004
2nd Period

21.0%

18.4%
Oct. 2005
4th Period

16.1%

May
Economic/Financial
Environment

240.8

250

259.1

14.9%
Oct. 2006
6th Period

13.7%

13.2%
Oct. 2007
8th Period

Real Estate
Inves tment
Environment

300

June

July

Aug.

Sep.

Oct.

Nov.

Continued boom

Credit crunc h due to sub-prime issues

Interest rate i ncreas eInterest rate decrease due to i nflow offunds avoidi ng risks

Dec.

Financial i nstitutions more s electi ve in fi nancing
Implementation of Financial
Instruments and Exchange Law

Challenging environment c ontinues due to strong offic e leasing market
Signs of change in demand /incentives for property sales due
to change in businessenvironment of sellers

Continued investment in tight m arket conditions<Num ber of inform ation of property sales> *Office use only
Steady progress towards ¥500 billion total assets

Flexible pace of acquisition depending on m arket
environment

7 th Fiscal Period 125
・ Cleared standard for consideration： 87
・ Considered in detail： 24

4.Fund Management Results

8 th Fiscal Period 154
・ Cleared standard for consideration： 112
・ Considered in detail： 45
・ Currently under consideration： 20

15

Portfolio Status(1)Acquired in the 8th Period: Hatchobori NF Building

Location
Floor
Type ofOwnership
AcquisitionPrice

Chuo-ku, Tokyo City2（1,149.31 tsubo）

3,799.40m(The Entire Building)【Features】
・ A highly accumulated office area next
to Yaesu and Nihonbashi Areas

・ Faces a main street, Shin-Ohashi dori,and 1 minute walk from Hatchobori(Land) Ownership(Partly co-ownership)
Station(Bldg) Compartmentalized
Ownership¥ 3,160 mln【Policy】

Date of
Acquisition

August 10, 2007

Seller

CREO Investment

・Promoting management that takes
advantage of the solid office leasing
marketAcquired in the 8th Period: Yokohama Odori Koen Building

LocationNaka-ku, Yokohama City2 ( 1,949.83 tsubo）

Floor

6,445.72m

Type ofOwnership(Land) Ownership(Bldg) Ownership

AcquisitionPrice¥ 2,993 mln

Date of
Acquisition

September 28, 2007

Seller

ORIX Real Estate Corporation

4.Fund Management Results【Features】
・ 3 minutes’ walk from Kannai
Station and is in a prime location
nearby Yokohama City Hall・ Building size and facilities
satisfying demands of wide rangeof tenants【Policy】
・Stable operation by absorbing
tenant demands through superior
location

16

Portfolio Status(2)Acquired in the 8th Period: Kita-Sanjo Building

Diversification of Portfolio (8th Period-End)z Diversification by Location

Other Regional Cities※Based on Acquisition PriceCentral Tokyo
60.2%

25.4%

Greater Tokyo
14.4%

Location

Chuo-ku, Sapporo City

Floor

7,461.25m2（2,257.02 tsubo）

Type ofOwnership(Land) Ownership(Bldg) Ownership

AcquisitionPrice¥ 3,430 mln

Date of
Acquisition

September 28, 2007

SellerOX-1 Y.K.

【Features】
・ Located in the central office area of
Sapporo City・ Accessible to multiple train lines bywalk and adjacent to the undergroundpassage which is directly connected to
Sapporo Station【Policy】
・Enhanced competitiveness by renewal
works on entrance and air conditioning
systemz Diversification by Property (Main Top 10 Properties)
Shinjuku Nomura Bldg 13.2%

NOF Kawasaki
3.2% Higashiguchi Bldg

3.4% NOF Shiba Bldg

Other 24
Buildings
36.1%

3.9% Secom Medical Bldg
NOF Shibuya
4.1% Koen-dori Bldg
4.4% NOF Midosuji Bldg

JAL Bldg 11.3%

Omron Kyoto
Center Bldg

8.1%

NOF Nihonbashi
Honcho Bldg

7.0%

Tennozu Park
Side Bldg

5.1%→ Increased rent to market level
4.Fund Management Results

17Diversification of Tenants

Top 10 Tenants (by Space)

Diversification in Business (by Space)
As of Oct. 31, 2007
Weight in
portfolio(%)

Weightforpr evious
term (%)

42,084.11

11.8

12.2

34,616.84

9.7

10.0

18,218.17

5.1

5.3

3,813.62

1.1

1.1

255.150.1

0.1

6,547.74

1.8

1.98,821.24

2.5

2.6

Dec. 31, 2008755.690.2

0.2

May 31, 2008

574.11

0.2

0.2

Dec. 31, 2007

1,140.85

0.3

0.3

Nov. 30, 2007

1,847.63

0.5

0.5

Mar . 31, 2009

2,834.48

0.8

0.8

Nov. 30, 2013

4,023.21

1.1

1.4

Nomur a Osaka Bldg. Nov. 30, 2013345.370.1

0.1

Nov. 30, 2013

1,266.19

0.4

0.4

Oct. 31, 2007

4,160.94

1.2

1.3

Nov. 30, 2007

3,981.64

1.1−

Apr. 30, 2009

3,726.36

1.0

0.0

139,013.34

39.1

Industry

Proper ty

Expiry ofcontract

Flagship Prop erties
Private Compa ny

Real Estate

JAL Bldg.

Mar . 31, 2015

2

OMRON Corpora tion

Electronic
Devices

3

XYMAX AXISCORPORATION

Tenant1

4

FUJITSU L IMITED

Omron Kyoto
Mar . 29, 2021
Center Bldg.
NOF Toyo-cho
Real EstateNov. 30, 2014
Bldg.
NOF Technopor t
Mar . 31, 2009
Kamata Center Bldg.
Electronic
Faret Tachikawa
Dec. 31, 2007
Devices
Center Squar e
NOF Shin- Yokohama
Sep. 30, 2008
Bldg.
Secom Medical Bldg. Feb. 28, 2025

5

7

6

8
9
10

SECOM Co., Ltd .

Nomu ra Facilitie s Co., Ltd .

No mura Real Estate
Develo pment Co., L td.

FUJI XEROXOFFICE SUPPLYORIX Real Estate
Corpo ration
SOMPO JAPAN
INSURANCE INC.
Total

ServicesRealEstateReal
EstateWholesale
Real Estate

Insurance

NOF Sendai
Aoba- dori Bldg.
Shinjuku
Nomur a Bldg.
NOF Utsunomiya
Bldg.
NomuraYotsubashi Bldg.
NomuraHir oshima Bldg.
Shinjuku
Nomur a Bldg.

NomuraYotsubashi Bldg.
NOF Surugadai
Plaza Bldg.
Yokohama Odori
Koen Bldg.
Shinjuku
Nomur a Bldg.

Leasedspace（㎡）

As of Oct. 31, 2007

Other 20
Businesses
Constructi on 16.1%
2.4%
Banki ng
2.6%
Real Estate
3.9%
Insurance
4.2%

Electronics
15.7%

Total

IT
15.5%

533
Tenants

Retail4.5%
Ser vice
15.1%

Wholesal e
7.4%
Airline
12.5%(Note) Broken-down by business of the s ub-less ees in c ase of s ub-lets .

Stable (Mid-to-Long Term) Contracts
Mid-to-long term contracts expiring after three years from now:
8th Period End

31.3％ (based on floor space)
23.1％ (based on contract rent)

4.Fund Management Results

18

Results of Asset Management Sector

Changes in NOI Return of Portfolio

Changes in Average Unit Rent*1[Changes in NOI Return of Portfolio (%)]

z Ratio of change betw een 7th and 8th periods

NOI of Portfolio

Apr.
2004

Oct.
2004

Apr.
2005

Oct.
2005

Apr.
2006

Oct.
2006

Apr.
2007

Oct.
2007

Average for
entire portfolio

Average for Tokyo
metropolitan properties

7.2

6.2

6.1

6.1

5.9

6.0

5.7

5.8

(31 properties held at
the 7th periodperiod -end)(excluding bldgs
with longlong -term fixed contracts* 2)

+1.2%

+2.9%

[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

7.2

6.5

6.7

6.6

6.6

7.1

6.9

7.0

6.2

6.3

6.4

6.3

6.8

6.7

6.7

6.1

6.2

6.1

6.4

6.3

6.4

6.1

6.0

6.2

6.1

6.2

5.9

6.1

6.0

6.1

6.0

5.9

6.0

5.7

5.8

31 for 7th Period
34 for 8th Period

5.8

z Main factors for change in NOI between 7th and 8th periods(based on 30 properties held at the beginning of 7th period)•

Increase of rent/common service f ees: + ¥172 mln (+1.8% from prev ious
period) (rent increase f rom tenant turnover / lease renewals)•

Increase in taxes and duties : - ¥56 mln (+6.8% from prev ious period)*1 Average U nit Rent: Average of monthl y rent and common area c harges prescribed inlease contracts as of period-end.
*2 JAL Building and Secom Medical Building.

z Changes in average unit rent
(Average initial r ent for portfolio at period- end = 100)

106

104

1st Period: 15 bldgs
3rd Period: 19 bldgs
5th Period: 28 bldgs
7th Period: 31 bldgs

2nd Period: 18 bldgs
4th Period: 23 bldgs
6th Period: 30 bldgs

102

100

98

(the expensing of the properties acquired in last y ear)•

Increase in other expenses: - ¥33 mln (+19.3% f rom previous period)(brokerage commission of new tenants, etc.)96
1stPeriod2nd
Period3rd
Period4.Fund Management Results

4thPeriod5th
Period6th
Period7th
Period8th
Period19

Increase in Rent of Portfolio

Stable Occupancy Rate

Rent before and after Upward Revision

7th Period

8th Period* Change = ((Rent of renewed c ontracts / rent of pr evious contracts) – 1) x 100

100.0%(Includ ing comm on are a char ges)

12.0%
98.5%

98.0%

97.9%

95.0%

10.0%

Average Change ＋ 8.1％

+10.0%

7th Period
Average Change+ 9.6％

8.0%
6.0%

+5.1%

4.0%
90.0%

2.0%

Central T okyo
Greater T okyo

0.0%

Other Regional Cities
Average85.0% Nov. 2006

Apr. 2007
End of
7 th Period+2.9%

Oct. 2007
End of
8 th PeriodSpace su bject
to revisio nCentral Tokyo

Greater Toky oOther Regional Cities

21,866㎡

21,458㎡

423㎡

Results of Contract Renewals (number of renew als)

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

100%* Change = ((Rent of move-in / rent of move-out) – 1) X100 (Inc lud in g common ar ea char ges)

4.0% 6.5% 1.9%

14.6% 21.0%
32.9%

80%

69.6% 83.3%

40%+ 20.4％20%+14.4%
10%

64.7%

+4.3%

44.8% 48.4%
23.9%

14.8% 12.5%

7th Period
Average Change

Down

70.0%

20% 44.0%

Number of
Renewedcontracts

Average Change ＋ 19.5％+22.7%
Flat

72.9%

0%

30%

54.3% 50.5%

52.0%
60%

Up

9.0%

0%
2.4% 0.9% 1.1%

1st
2nd
3rd
4th
5th
6th
7th
8th
Period Period Period Period Period Period Period Period
50
46
54
48
100
85
116
95

Space vac ated
& re-occup ied

Central Tokyo

Greater Toky o Other Regional Cities

5,645㎡

4.Fund Management Results

289㎡

2,145㎡

20

End--ofEnd
of--Period Appraisal Value
Increase in Appraisal Values

Appraisal Values at 8th Period-End(based on 30 buildings held at 6th period-end)z Changes in Appraisal Value

7th Period
End
Appraisal
Value
(¥mln
mln))

8th Period
End
Appraisal
Value
(¥mln
mln))

340,000(¥mln)
17,000(¥mln)

Change330,000z Changes in Assumptions
for Apprais al Value
NCF*

16,500320,000

5.1%

Average
Cap Rate*

5.0%

16,0004.9%

15,5004.8%

15,0004.7%

14,5004.6%

310,000

Central Tokyo(14 bldgs)

219,990

Greater Toky o(8 bldgs)

48,145

Other Cities(12 bldgs)

81,28884,638+ 4.1%

Total Portf olio
(34 bldgs)

349,423

366,938+ 5.0%

230,950+ 5.0%
300,000

51,350+ 6.7%

290,000
280,000
270,000

4.5%

14,000
6th Perio d

7th Perio d

8th Perio d

6th Perio d

7th Perio d

8th Perio d*NCF: Portfolio (30 bldgs) total of net cash flows based on direct capitalization method* Average Cap Rate: NCF/Portfolio (30 bldgs) total of income based on direct capitalization method

Changes in Unrealized Ga ins/Losses for Portfolio◇ Please refer to “Appendix” for details on individual properties.
* Appraisal value at acquisition is added for property acquired in the 8th period.

(¥ mln)Total Appraisal Value¥ mln

366,938

Total Book Value¥ mln

291,853

Total Unrealized Gain/Loss¥ mln

75,084

Unrealized Gain/Loss per Unit¥

282,374(Appraisal Value at Period-End – Book Value)

90,00075,08480,00070,00058,25260,00050,00034,58740,00030,000* Unrealized gain/loss: Appraisal value – Book Value(For Reference) Net Asset per Unit
BPS (Book Value)¥606,510

20,00010,000NAV (Based on Appraisal Value)¥

888,884

0

19,218
30

-315

1,883

7,813

-10,000
1st Period 2nd Period 3rd Period

4.Fund Management Results

4th Period 5th Period

6th Period7th Period

8th Period

21Move--ins and MoveMove
Move-outs

ChangeCentral Tokyo+1,454 tsubo-1,781 tsubo+326 tsubo
Greater Toky o+116 tsubo-126 tsubo-9 tsubo
Other Regional Cities+611 tsubo-582 tsubo+28 tsubo

Nomura Hiroshima Bldg
Hiroshima Tatemachi NOF Bldg
NOF Kobe Kaigan Bldg
Nomura Y otsubashi Bldg
Nomura Osaka Bldg
NOF Midosuji Bldg
Omron Ky oto Center Bldg

22
4.Fund Management Results

NOF Nagoy a Y anagibashi Bldg

-700

Move-outs
Move-ins

700

NOF Utsunomiya Bldg
NOF Sendai Aoba-dori Bldg
Kita-Sanjo Bldg
Sapporo North Plaza
Y okohama Odori Koen Bldg
NOF Shin-Y okohama Bldg
NOF Y okohama Nishiguchi Bldg

-500

Mov e-outs

7,212 ㎡ (2,181 tsubo) : 2.0% of weighted averageof total floor spaceMove-outs 8,229 ㎡ (2,489 tsubo) : 2.3% of weighted averageof total floor space⇒ Change 1,016 ㎡ (307 tsubo) : More move-outs than move-ins

Mov e-ins

Move-ins

NOF Kawasaki Higashiguchi Bldg
Faret Tachikawa Center Square
Cry stal Park Bldg
NOF Technoport Kamata Center Bldg
NOF Toy o-cho Bldg
NOF Minami Shinjuku Bldg
HatchoboriNF Bldg
NOF Kanda Iwamoto-cho Bldg
NOF Surugadai Plaza Bldg
NOF Shinagawa Konan Bldg
NOF Tameike Bldg
Nishi-Shinjuku Showa Bldg
NOF Shiba Bldg
Secom Medical Bldg
NOF Shibuya Koen-dori Bldg
Tennozu Park Side Bldg

-1,100NOF Nihonbashi Honcho Bldg

-900

JAL Bldg-300

Shinjuku Nomura Bldg

-100

Space occupied by move-ins and vacated by move-outsz（tsubo）

900

500

300

100

End--ofEnd
of--Period Financial Status (1)10-year JGB Yield vs. NOF’s Dividend Yields(%)

List of Lenders (Total 28 Financial Institutions)(¥mln)（2006/12/11 - 2007/12/11）

4.0

Lender
JGB y ield (10-y ear)

NOF dividend yield

Bank of Tokyo-Mits ubishi UFJ
Sumitomo M itsui Bank ing Corp.
Mitsubishi UFJ Tr ust and Banking
Sumitomo Trust & Bank ing Corp.

3.5
3.0
2.5
2.0
1.5
1.0
Dec. 2006

Feb. 2007

Apr. 2007

Jun. 2007

Aug. 2007(Note) NOF’s di vidend yield is c alculated on forec asts.

Nov. 2007 Dec. 2007

Short-term vs. Long-term Debts
Short-term Debts¥36.5 bln
（26.1％）
Long-term Debts*¥103.5 bln（73.9％）

Total A mountof Debt
Rem aining
2,000
2,000
2,000
1,500

Norinchuk in B ank
Dai-Ichi Mutual Life Insurance
Mizuho Corpor ate B ank
Nomura Trust and Banking
Mitsui Life ins urance
Iy o Bank
Chiba B ank
Chuo Mitsui Trust and Banking
Taiyo Life Insur ance

5,000
5,000
4,000
4,000
4,000
3,500
3,000
3,000
3,000

Hiroshima Bank
Keiyo Bank
Mits ui S um itom o Insur ance
Chugoku B ank
Bank of Fukuok a
Aozor a Bank
Yamanashi Chuo Bank
Nippon Life Insur ance Com pany
Tok io M arine & Nichido Fir e Ins uranc e Co., Ltd.

1,500
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

Daido Life Insurance

3,000

Sompo Japan Insurance Inc.
Total borr owings

1,000
95,500Sourc e: Bl oomberg

Interest-Bearing Debtsz

Total A mountof Debt
LenderRem aining
19,000Developm ent Bank of Japan
9,000
Zen-Ky o-Ren
6,000
Sumitomo Life Ins uranc e Com pany
6,000
Hachijuni Bank

Diversification of MaturityzFloating vs. Fixed Rates
Floating
Rate
¥17.5
bln
（12.5％）
Fixed Rate*¥122.5 bln（87.5％）（¥ bln）
350
325

Borrowings

Investment Corporation Bonds

300
250
200

175
150

160

150
100

100
65
50

60
40

40
20

30

40 50

50

50

45

0

*Including Investment C orporation Bonds*Including Interes t Rate Swaps

2007.11〜 2009.10

2009.112011.112013.11 2015.11
2017.112019.11 2021.11
2023.112025.11〜 2011.10 〜 2013.10 〜 2015.10 〜 2017.10 〜 2019.10 〜 2021.10 〜 2023.10 〜 2025.10 〜 2028.4

4.Fund Management Results

23End--ofEnd
of--Period Financial Status (2)LTV (Loan to Value)

Duration and Borrowing Rate
42.9％
42.9
％

z LTV as of 8th Period Endz

Average remaining duration of long-term fixed debts(including Investment Corporation Bonds)

Interest-Bearing Debts ¥140.0 bln（borrow ings
¥95.5 bln)
（corporation bonds ¥44.5 bln）
Total Assets

5.5 yearsz¥326.7 bln

Weighted average of interest rate of all the debts

1.63％
1.63
％

Maintaining Conservative LTV Levelzz Changes in LTV※UnauditedDuration of Long-term fixed interest borrowings andchanges in average borrowing rates (all)(y ear) 7

60%

6.0

6

50%

46.4%

44.7%

41.2%
40%

38.9%

※

37.2%
36.2%
※

※

41.2%

42.9%

5.5
5.15.0536.4%36.8%

3.9

4 3.93.8 3.7

33.8%

30.9%

3.3

30%

3
2 1.2%1.0% 1.1%

20%
‘03.
12

4.6

4.44.3※‘04.‘04.
4 5

‘04.
10

‘05. ‘05.
4 5

‘05.
10

‘06. ‘06. ‘06.
4 6
10

Controling LTV Between 35% to 45%

‘07.
4

‘07.
10

’03. ’04. ‘04.
12
4 5

1.1%1.1% 1.3% 1.1% 1.3% 1.4% 1.4%

’04.
10

’05.’05.
4 5

’05.
10

’06.’06.
4 6

’06.
10

1.7%

1.6%

’07.
4

‘07.
10

Steadily Promoting Prolongation of Duration

4.Fund Management Results

24Appendix

List of Property
As of October 31, 2007

Other R egional Cit ies

Greater Toky o

C entral Tok yo

Property Nam e

Locat ion

Nishi-Shi nj uku,
Shi njuku Nomura Bldg
Shinjuku-ku
Higashi-Shinagawa,
JAL Bldg
Shinagawa-ku
Nihonbashi Honcho,
NOF Ni honbashi Honcho Bldg
Chuo-ku
Higashi-Shinagawa,
Tennozu Park Side Bldg
Shinagawa-ku
Udakawa-cho,
NOF Shibuya Koen-dori Bl dg
Shibuya-ku
Nibancho,
Secom Medi cal Bl dg
Chiyoda-ku
Shiba,NOF Shiba Bldg
M inato-ku
Nishi-Shi nj uku,
Nishi-Shinjuku Showa Bldg
Shinjuku-ku
Akasaka,NOF Tameike Bldg
M inato-ku
Higashi-Shinagawa,NOF Shinagawa Konan Bldg
Shinagawa-ku
Kanda Surugadai,
NOF Surugadai Plaza Bldg
Chiyoda-ku
Hatchobori,
Hatchobori NF Bldg
Chuo-ku
I wam oto-cho,
NOF Kanda I wamot o-cho Bldg
Chiyoda-ku
Sendagaya,
NOF Minam i Shinjuku Bldg
Shibuya-ku
Shinsuna,
NOF Toyo-cho Bldg
Koto-ku
M inami-Kamat a,
NOF Technoport Kamata Center Bldg
Ot a-ku
Got enyam a,
Crystal Park Bldg
M usashino Cit y
Akebono-cho,
Faret Tachikawa Cent er Square
Tachikawa Cit y
Kawasaki-ku,
NOF Kawasaki Higashi guchi Bl dg
Kawasaki Cit y
Nishi-ku,
NOF Yokohama Ni shiguchi Bldg
Yokoham a Cit y
Kohoku-ku,
NOF Shin-Yokoham a Bldg
Yokoham a Cit yNaka-ku,
Yokohama Odori Koen Bldg
Yokoham a Cit y
Chuo-ku,
Sapporo North Pl aza
Sapporo City
Chuo-ku,
Ki ta-Sanjo Bldg
Sapporo City
Aoba-ku,NOF Sendai Aoba-dori Bldg
Sendai Cit y
Baba-dori,
NOF Ut sunom iya Bldg
Ut sunom iya City
Nakamura-ku,
NOF Nagoya Yanagibashi Bldg
Nagoya City
Sim ogyo-ku,
Om ron Kyoto Cent er Bldg
Kyot o Cit y
Chuo-ku,
NOF Midosuji Bldg
Osaka Cit y
Chuo-ku,
Nomura Osaka Bldg
Osaka Cit y
Nishi-ku,
Nomura Yotsubashi Bldg
Osaka Cit y
Chuo-ku,
NOF Kobe Kaigan Bldg
Kobe Cit yNaka-ku,
Hiroshim a T atem achi NOF Bldg
Hiroshima City
Naka-ku,
Nomura Hiroshima Bl dg
Hiroshima City
Total

Com plet ion

Floors(G round)1978. 550

1996. 6

26

1961. 4

8

1995. 1
1987. 9Tot al Fl oor Space(Note 1, 2)
117, 258.88(Entire bui lding)① 81,421. 13② 25,260. 48

Leasable
Space （㎡ ）Leased Space Occupancy
# of
Rate
Tenants（㎡）

Standard F loor
Space （㎡ ）Air
Conditi oning

Room
Height （㎜）PML(Note 3)Acquisi tion
Dat e
2003. 1231,589. 26

30,117.06

95.3%

82

1,262.37

Each 1/4 fl oor

2,600

5%

42,084. 11

42,084.11

100. 0%12,214.55

Each 1/6 fl oor

2,700

6%

2005. 329,430. 67

19,233. 28

18,708.05

97.3%

11

2,615.23

Each span

2,650

14%

2003. 1221

① 43,893. 46② 17,587. 30

18,051. 61

18,051.61

100. 0%14

1,331.14

Each 1/4 fl oor

2,650

6%

2004. 2

8

5,358.55

3, 420.16

3, 420. 16

100. 0%3

442.38Each span

2,500

12%

2004. 92005.2

78,683.73

8, 821.24

8, 821. 24

100. 0%1

980.00Each span

2,500〜2, 700

4%

2006. 91991. 3

7

11,425. 20

8, 165.10

8, 165. 10

100. 0%9

1, 260.41

Each span

2,600

14%

2004. 5

1982.411① 10,902. 22②5, 858.26

5, 663.85

5, 317. 91

93.9%

20

585.99Each span

2,500

13%

2005. 11

1959. 896,478.50

4, 715.20

4, 715. 20

100. 0%13519.06

Each span

2,500

17%

2005. 91987. 118

10,077. 02

7, 850.99

7, 850. 99

100. 0%5928.29Each f loor

2,600

11%

2003. 121997. 48

5,782.27

4, 160.94

4, 160. 94

100. 0%1

626.33

Each 1/2 fl oor

2,700

6%

2004. 2

1990.19①3, 799.40②3, 036.14

2, 854.83

2, 854. 83

100. 0%8

388.87

Each 1/2 fl oor

2,600

12%

2007.8

1988. 7

94,698.97

4, 076.38

4, 076. 38

100. 0%8

480.07

Each f loor

2,550

14%

2004. 2

( Exte nsion 1 968.4 )1986. 38

3,160.05

2, 464.71

2, 464. 71

100. 0%5

327.66

Each f loor

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

1990. 911

(Exclu sively owned are a)

13,683. 46

13,683.46

100. 0%14

1,148.45

Each span

2,650

10%

2003. 123, 900.85

3, 900. 85

100. 0%11

193.93〜 590. 35

Each f loor

2,500

14%

2006. 26, 853.38

6, 853. 38

100. 0%17

1,099.32

Each 1/4 fl oor

2,600

10%

2003. 12

21,516. 54①6, 462.19②3, 868.36① 33,706. 03②6, 865.80

1991. 10

11

1994. 12

12

1988. 3

12

10,932. 69

8, 253.41

7, 899. 62

95.7%

26

684.62Each 1/3 fl oor

2,550

16%

2005. 6

1985. 109

10,055. 13

6, 817.76

6, 817. 76

100. 0%31794.75

Each 1/8 fl oor

2,500

14%

2005. 5

1990. 10

9

11,149. 99

8, 074.83

8, 074. 83

100. 0%3940.84Each span

2,500

17%

2003. 12

1989.311

6,445.72

4, 236.47

3, 981. 64

94.0%

1

418.39Each 1/3 fl oor

2,600

19%

2007.91981. 812

18,842. 51

13,658. 14

12,515.80

91.6%

44

1,105.75

Each f loor
Auxiliary

2,580

2%

2006. 6

1988.39

7,461.25

5, 060.45

4, 894. 70

96.7%

10

592.55

Each f loor

2,500

1%

2007.91968. 7

11

12,977. 45

6, 161.05

5, 892. 75

95.6%

28

802.79Each span

2,480

8%

2005. 111999. 12

10

10,479. 63

5, 887.40

5, 725. 74

97.3%

24

664.68Each span

2,700

5%

2003. 12

1991. 312

7,363.25

4, 655.74

4, 252. 97

91.3%

11

405.96

Each 1/2 fl oor

2,460

14%

2005. 92000.7

11

34,616. 84

34,616. 84

34,616.84

100. 0%1

2,035.94

Each 1/ 16
floor

2,600

9%

2007. 3

1974. 410

21,007. 98

12,240. 88

12,240.88

100. 0%16

1,234.14

Each 1/4 fl oor

2,600

13%

2005. 111983. 12

12

23,522. 82

16,977. 79

16,977.79

100. 0%28

1,336.52

2,500

19%

2003. 12

1991. 1115

16,845. 87

11,558. 68

11,558.68

100. 0%18797.352,650

13%2003. 12

1998. 2

16

10,292. 93

6, 425.16

5, 624. 51

87.5%

29

528.43

Each span

2,600

7%

2003. 12

1966. 1112

8,206.91

4, 434.58

3, 442. 04

77.6%

24

515.17

Each span

2,450

13%

2005. 111976. 7

9

11,950. 37

7, 906.92

7, 306. 07

92.4%

15

1,047.54

Each f loor
Auxiliary

2,450

11%

2003. 12362, 773.62

355, 286. 77

97.9%

533

Each f loor
Auxiliary
Each f loor
Auxiliary

7.0%(Note 1) T otal floor space is taken from the registry book.
(Note 2) T otal floor space of the properties owned in compartment, except NOF T echnoport 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.

Appendix26

Earnings by Property(¥000)
Property Name
Number of business days
Renta l b usiness revenu es
Re ntal revenue s *in cl. co mmo n ch ar ges
O th er revenues
Renta l b usiness e xpe nses
Property mana gement costs
Taxes an d du tie s
Util ity expenses
Insurance expenses
Re pairs a nd mai nte nances
O th er expenses
De preciation
Renta l Profits
Net Ope ra tin g Income (N OI)
Property Name
Number of business days
Renta l b usiness revenu es
Re ntal revenue s *incl. common charges
O th er revenues
Renta l b usiness e xpe nses
Property mana gement costs
Taxes an d du tie s
Util ity expenses
Insurance expenses
Re pairs a nd mai nte nances
O th er expenses
De preciation
Renta l Profits
Net Ope ra tin g Income (N OI)
Property Name
Number of business days
Renta l b usiness revenu es
Re ntal revenue s *incl. common charges
O th er revenues
Renta l b usiness e xpe nses

184
339,662296,222

Nishi-Shin juku
Showa Bldg.
184
3 13,3 69
2 82,2 86

29,37086,613
15,933
24,106
13,95543,439126,191
21,20823,72625,64331,0 83
1 11,6 93
37,2 37
28,3 24
23,0 43

18,37092,571
16,175
16,616
18,695

38,128106,225
18,527
16,01625,642

5,875
18,448
7,035
22
4,629

123
9,261
2,550
155,933
384,200

277
3,639
1,690
27,009278,611

4 5,06 3
18 2,56 6

564
6,108
2,224
46,716
213,471

7 47
83
3,1 6019,0 96
2 01,6 76

321
9,532
9,737
21,492
132,945529
17,923
2,581
25,004
157,764

30,427
81,582

10
132
694
5,923
29,154

540,133

305,620

22 7,62 9

260,187

2 20,7 73

154,438

182,769

112,00935,078NOF Yokohama
NO F ShinNishiguchi Bld g. Yo ko hama Bld g.*
184
184
2 53,1 15
2 20,9 45
32,1 70

Yokohama Odori
Koen Bldg.
34
21,455
16,987
4,468

Sapp oro No rth
Pl aza184
345,305
291,556
53,749NOF N ihonbashi
Honcho Bldg.
184
8 37,0 77
7 97,5 66

Ten nozu Park
Si de Bl dg.
184
818,711
677,085

NO F Sh ibuya
Ko en-dori Bl dg.
18 4
365,224
335,854

205 ,407
831 ,186
212 ,089
162 ,795
217 ,486

39,5 10
2 68,4 69
89,3 76
39,8 67
47,5 42

141,625434,511
168,319
52,57845,745

3 ,19954 ,434
61 ,480
119 ,701
1 ,104 ,066

1,3 563,8 0019,2 1267,3 13
5 68,6 07

Shinju ku
Nomura Bldg.
184
1 ,935 ,253
1 ,729 ,846

JAL Bld g.*
184

145,962621,511

6 35,9 21

Secom Med ical
Bldg.*184

NOF Shi ba Bl dg.

NOF Tameike
N OF Shinag awa
Bldg.
Konan Bl dg.
184
1 84
225,517
263,990
207,147
225,861

NO F Su ru gadai
Pla za Bldg.*
184

Hatcho bori NF
Bld g.
83
47,603
41,727

1 ,223 ,767

767,473

NOF Kanda
Iwamoto-cho Bldg.
184
153 ,364
136 ,596
16 ,767

NO F Minami
Shinj uku Bld g.
184
106,009
88,945
17,06444 ,050
10 ,900
9 ,236
9 ,012
241

37,068
9,534
8,948
8,962
173

227,359
54,45535,19050,832
1,002

58,746
17,916
9,752
8,620
267

13 3,43 3
4 4,65 8
1 4,66 7
3 5,64 1
501

149,975
22,387
18,47627,421575

1 05,6 18
24,3 51
18,2 30
20,6 77
5 15

15,190
2,241
21
3,444
52

172,174
37,35529,60450,284938

13,489
2,095
22
2,675
66

3 ,741500
10 ,418
109 ,313

811
1,723
6,913
68,941

32,8 12
2 09,1 83

12,6605,181
68,036
227,667

1,481
1
20,707
72,376

1,19 5
5,58 5
3 1,18 4
10 8,58 0

13,1903,703
64,221
172,546

15,1 813,2 4023,4 20
1 47,4 96

ー
6
9,423
6,264

9,898
7,909
36,183
173,131

ー
516
8,112
7,927

119 ,732

75,854

2 41,9 95

13 9,76 4

236,767

1 70,9 17125,720

15,688209,314

NomuraNomuraNOF Kob e Kaig an
O sa ka Bldg .
Yotsu bashi Bldg.
Bld g.
184
184
184
54 7,26 8
328,764
1 69,0 83
44 7,78 4
290,316
1 35,3 17
9 9,48 4
38,44733,7 65
25 2,36 3
174,245
1 10,5 86

Hiroshima
Tate ma ch i
184
100,896
81,493
19,403
66,108

NomuraHiroshi ma Bldg .
1 84
207,640
183,064
24,576
102,767

NO F Toyo-cho
Bld g.*
184

NO F Se ndai
NOF Utsunomiya
N OF Nagoya
Aoba-dori Bldg.
Bldg.
Yanagi bashi Bldg.
184
184
184
163 ,012
176,268
1 43,7 88
137 ,535
144,393
1 29,0 29
25 ,476
31,874
14,7 58
92 ,561
106,26275,5 06

Faret Tachikawa
N OF Kawasaki
Ce nter Square Higashi guchi Bldg.
18 4
184
184
131,122
24 2,01 4
322,521
115,291
21 5,83 1
277,398
15,8302 6,18 2
45,123

NOF Technoport
Crystal Park Bldg.
Kamata Center Bldg.

184455,026
380,380
74,646

295,704
Omron Kyoto
Center Bldg.*
184

93,083
NOF Mido su ji
Bl dg.
18 4
494,055
419,10274,953
243,624

42,521
83,198

Ki ta-Sanj o Bld g.
34
21,416
17,292
4,124

16,039To tal 34 Properties

11,958,965
10,694,614
1,264,351
5,190,679

Property mana gement costs
Taxes an d du tie s
Util ity expenses
Insurance expenses

25 ,156
17 ,515
15 ,901
545

23,884
14,544
17,870586

12,9 32
12,2 0212,9 61
3 59

41,58752,64836,469939

6 4,56 1
4 0,79 3
6 8,96 3
1,16 1

43,23029,74536,697796

22,3 24
16,1 28
23,4 06
7 03

16,152
11,353
12,628331

26,444
18,71830,897533

1,197,041
939,418
937,406
23,271

Re pairs a nd mai nte nances
O th er expenses
De preciation
Renta l Profits
Net Ope ra tin g Income (N OI)

6 ,018
2 ,36425 ,058
70 ,450
95 ,509

5,568
3,316
40,49170,006
110,497

3,4 63
5 79
33,0 0768,2 81
1 01,2 89

46,306
4,329
61,341
250,431311,772

3 9,43 5
2,62 1
3 4,82 6
29 4,90 5
32 9,73 1

17,9952,109
43,669154,519
198,1896,1 157,0 7834,8 29
58,4 97
93,3 26

10,438
4,391
10,812
34,78845,60014,335
1,706
10,133
104,873
115,006

362,145
213,180
1,518,215
6,768,285
8,286,500

160,443
318,746
479,189* Detailed figures are not disclos ed due to c ompelling reasons. However, they are included in "T otal 34 bldgs."

Appendix27

List of EndEnd-of
of--Period Appraisal ValueCe ntral Tokyo
Gre ater Tokyo
Other Regional Cities(¥ mln)Book Valueat 8th Period End(¥ mln)Appraisal Valueat 8th Period End(¥ mln)Appraisal Valueat 7th Period End(¥ 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
3,700
3,290
9,500
5,050
3,600
2,993
42,099
6,820
3,430
3,200
2,970
3,550
23,70012,900
6,410
3,940
3,280
2,100
1,930
74,230292,409

39,03133,53020,571
13,767
12,53911,465
10,072
8,771
7,652
5,492
5,117
3,179
3,076
2,263
176,531
7,135
6,180
3,689
3,075
9,576
5,033
3,379
3,001
41,070
7,044
3,446
3,182
2,693
3,656
23,507
12,914
6,395
3,717
3,028
2,335
2,327
74,251
291,853

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
4,100
5,580
10,100
7,800
4,420
2,860
51, 350
6,928
3,020
3,430
3,570
3,790
24,20014,00011,000
6,610
3,460
2,060
2,570
84, 638
366, 938

67,20032,10025,00019,70013,90011,60010,800
10,200
7,920
6,480
5,600
3,160
3,670
2,660
219,990
8,190
7,130
4,050
5,120
10,100
6,625
4,070
2,860
48,145
6,868
3,020
3,400
3,390
3,760
23,70013,400
9,790
6,070
3,420
2,150
2,320
81,288349,423（Ａ）（Ｂ）

Acquisition Price

Property Name

Shinjuku Nomura Bldg
JAL Bldg
NOF Nihonbashi Honcho Bldg
Tennozu P ark Side Bldg
NOF Shibuya Koen-dori B ldg
Secom Medical B ldg
NOF Shiba Bldg
Nishi-Shinjuku Showa Bldg
NOF Tameike Bldg
NOF Shinagawa Konan Bldg
NOF Surugadai Plaza Bldg
Hatchobori NF B ldg
NOF Kanda Iwamoto-cho Bldg
NOF Minami Shinjuku Bldg
Total Central TokyoNOF Toyo-cho Bldg
NOF Technoport Kamata Center 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 Tok yo
Sapporo North Plaza
Kita-Sanjo Bldg
NOF Sendai Aoba-dori Bldg
NOF Ut sunomiya Bldg
NOF Nagoya Yanagibashi Bldg
Omron Kyot o Center B ldg.
NOF Midosuji B ldg
Nomura Osaka Bldg
Nomura Yot subashi Bldg
NOF Kobe Kaigan Bldg
Hiroshima Tatemachi NOF Bldg
Nomura Hiroshima B ldg
Total Other Regional Cit ies
Grand Total

Difference between Book Value and Appraisal Value¥ 75,084 mln

*

*

*

Difference between
7th and 8th Period(¥ mln)Change

3,700
800
1,700
2,300
390
300
1,440
120
210
10,960
640
530
50
460
1,175
350
3,205
60
30
180
30
500
600
1,210
540
40
-90
250
3,350
17,515

5.5%
2.5%
6.8%
11.7%
4.9%
4.6%
25.7%
3.3%
7.9%
5.0%
7.8%
7.4%
1.2%
9.0%
17.7%
8.6%
6.7%
0.9%
0.9%
5.3%
0.8%
2.1%
4.5%
12.4%
8.9%
1.2%
-4.2%
10.8%
4.1%
5.0%

* For these buildings acquired at the 8th Peri od,
apprai sal value is that of the tim e of ac qui siti on.

（¥ 282,374 / unit）（Ｂ）−（Ａ）

Appendix28

Map of Property

01

02

Shinjuku Nomura Bldg

05

NOF Shibuya
Koen-dori Bldg

03

JAL Bldg

04

NOF Nihonbashi
Honcho Bldg

Tennozu Park
Side Bldg

06

Secom Medical Bldg

16

17

18

19

27

30

31

NOF Technoport
Kamata Center Bldg

Christal Park Bldg

Faret tachikawa
Center Square

NOF Kawasaki
Higashiguchi Bldg

NOF Nagoya
Yanagibashi Bldg

Nomura Osaka Bldg

NOF Yotsubashi Bldg

32

NOF Kobe
Kaigan Bldg

Appendix29

Acquisition Channel of Property
Acquisition
ChannelOriginally owned
by or developedby Nomura Real
Estate Group
Companies• Information fromor
• Intermediation *by Nomura Real
Estate Group
Companies

Key Properties
Acquired at Listing

Shin juku
Nomur a Bldg.

Faret Tachikaw aCenter Sq uare

Key Properties Acquired after Listing

Tennoz u Park
Side Bl dg.

Secom Med ical Bl dg.

Omron Kyoto
Center Bl dg.

8 Properties
Cumulative Acquisition Price:¥ 104.3 bln

Nomur a Yotsubas hi
Bldg.

Nomur a Osaka Bldg.

NOF Nihon bash i
Honc ho Bld g.

NOF Shinag awa
Kona n Bldg.

JAL Bldg. *NOF Minami
Shin juku Bl dg.

Nish i-Shi njuk u
Show a Bldg.

Sapp oro North Pl aza

17 Properties
Cumulative Acquisition Price:¥ 130.4 bln

NOF Toyo-cho Bldg.

NOF Kobe
Kaig an Bld g.

NOF Yokohama
Nish iguc hi Bld g.

NOF Sendai
Aoba- dori Bl dg.

NOF
Midos uji Bl dg.

Hatcho bori NF Bld g.

Information fromsources outside
Nomura Real
Estate Group

9 PropertiesNOF Shiba Bld g.

NOF Shibuya
Koen- dori Bl dg.

NOF Kawasaki Yokoh ama Odori Ko en
Bldg.
Hig ashi guch i Bld g.

Cumulative Acquisition Price:¥ 57.7 bln
Appendix30

Fund Summary
1st Period
April 2004

2nd Period
October 2004

3rd Period
April 2005

4th Period
Oc tober 2005

5th Period
April 2006

6th Period
October 2006

7th Period
April 2007

8th Period
October 2007

Total As sets
Interest-bearing Liabilities
LTV (B as ed on Total Ass ets )Unitholders' Capital
Outstanding Units Issued
Net Assets
Net As sets 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

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
16,918

Total Portfolio ( Based on Ac quisition P rice)
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

Return on Assets (ROA)(annualized)
Return on Equity (ROE)(annualized)
Capital-Asset Ratio
Debt-Service Coverage Ratio （DSCR）

%
%
%
%
%
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

End-of-Period Total Book Value
End-of-Period Total Appraisal Value
Total Latent Profit and Loss
Latent Profit and Loss per Unit
Net Asset Value per Unit (Based on A ppraisal 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

NOI
Rate of NOI (p.a.)
Depreciation
Capital Ex pendituresFFO
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㎡

Appendix31

Cash Flow Statement
7th Fiscal Period

8th Fiscal Period

Nov 1, 2006 - Apr 30, 2007
( ¥000)

May 1, 2007 - Oct 31, 2007
( ¥000)4,466,823
1,478,442
1,227
40,641▲ 14,027
869,671▲295,747
5,505▲ 319,807
91,104229,100
121,741
37,697▲ 52,063
6,660,309
14,027▲ 832,617▲ 3,279
5,838,440

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

II. Cash Flow of Investing Activities
Purchase of tangible assets
Purchase of tangible assets in trust
Security deposits r eceived
Security deposits in tr ust paid
Security deposits in tr ust received
Security deposits paid
Compensation for superficies establishment received
Compensation for tr ansfer of structur es received
Net cash used in in vest in g act ivities▲ 22,675▲ 24,070,591
2,317▲ 854,929
3,345,506
295,747▲ 21,304,624▲ 6,473,952▲ 4,299,768
285,756▲ 482,237
807,138▲ 20
10,893▲ 10,152,190

III. Cash Flow of Fin an cin g Act ivit ies
Proceeds from shor t- term debt
Repayment of short- ter m debt
Proceeds from long-term debt
Repayment of long-term debt
Proceeds from investment corporation bonds
Issuing cost of investment corporation bonds
Cash distribution to unitholders
Net cash pro vid ed by financing activities

1,500,000▲ 2,000,000
25,500,000▲ 15,500,000
14,500,000▲ 124,542▲ 4,227,732
19,647,724

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

4,181,540
27,869,274
32,050,815

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

I. Cash Flo w of Operat ing Act ivities
Income befor e income taxes
Depreciation
Amor tization of long-term prepaid expenses
Amor tization of cor por ate bond issuance costs
Interest income
Interest expenses
Compensation for superficies establishment
Compensation for tr ansfer of structur es
Loss on disposal of tangible assets
Change in r ental r eceivables
Change in consumption tax refundable
Change in tr ade accounts payable
Change in other accounts payable
Change in r ent received in advance
Change in security deposits r eceived
Decr ease in sales of tangible fixed assets in trust
OthersSu btot alInterest received
Interest paid
Taxes and duties
Net cash pro vid ed by operat in g act ivities

IV. Change in Cash and Cash Equivalen t
V. Start ing Balan ce of Cash an d Cash Equivalent
VI. Ending Balance of Cash and Cash Eq uivalent

Appendix32Unit Price and Market Capitalization (Dec. 4, 2003 – Dec. 11, 2007)

Mar ket Capitalization (¥ mln)

Unit Pr ice (¥ )700,000

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

As of December 11, 2007
Market Capitalization : ¥308,447 mln
All-time High Price :¥1,560,000
All-time Low Price :¥505,000
Market Capitalization

600,000

TSE REIT Index (Note)

Unit Price
500,000

1,200,000
1,100,000

Initial Public Offering¥500,000

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

500,000
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

2007/60
2007/9 2007/12(Note) TSE REIT Index on December 11, 2006 = NOF’s closing unit price on the same date (one year from December 11, 2006)

Appendix33

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 ]January 24, 2003

Executiv e
Director
Compliance
Committee

Compliance & Risk
Managemen t Gro up *[ Capital ]¥300,000,000

Office Managemen t
Div ision

Residence Managemen t
Div ision

Inv estment Committee

Acquisition
Group

Asset
Managemen t
Group

Inv estment Committee

Fund
Managemen tGroupFinancial &Control Gro up(Responsibilities) (Responsibilities) (Responsibilities)

Acquisition
Group

Asset
Managemen t
Group

Fund
Managemen tGroupFinancial &Control Gro up(Responsibilities)

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

(Note)
Responsibilities of Groups under Residence Management Division are
omitted because these groups are not engaged in management of NOF.

[ Shareholder ]Nomura Real Estate Holdings Inc. (100%)[ Number of Employ ees ]57 (including Directors)[ Description of Business ]Asset management business f or inv estment
corporations (J-REITs)◆Registered f or 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. (1) 81679

NOF Management Division

Appendix34

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 Esta te Asse t 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.