(Reference) SUMMARY OF FINANCIAL RESULTS (REIT)
For the 6th Fiscal Period Ended August 31, 2018
October 15, 2018
REIT securities issuer:
Securities code:
Representative:

Nomura Real Estate Master Fund, Inc. (“NMF”)
3462
Shuhei Yoshida, Executive Director

Asset management company:
Representative:
Inquiries:

Nomura Real Estate Asset Management Co., Ltd.
Norio Ambe, President and Chief Executive Officer
Kenichi Okada, Head of NMF Investment Management Group

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

Stock exchange listing: Tokyo Stock Exchange
URL: https://www.nre-mf.co.jp/en/

TEL: +81-3-3365-8767

November 28, 2018
November 19, 2018
Yes
Yes (for institutional investors and analysts)[Amounts less than one million yen are truncated]

1. Financial Results for the 6th Fiscal Period (from March 1, 2018 to August 31, 2018)(1) Operating Results[% figures are the rate of increase (decrease) compared with the previous period]
Operating revenues
Period ended
August 31, 2018
February 28, 2018

million yen
34,731
34,218Operating profit%
1.5(10.3)Net income
per unit
Period ended
August 31, 2018
February 28, 2018

million yen
13,285
13,212

Ordinary income%
0.6(16.0)

Return on unitholders’equityyen

million yen
10,755
10,715%0.4(18.8)

Ratio ofordinary income
to total assets

%

2,478
2,561

Net income%

million yen
10,70910,714(0.0)(18.8)

Ratio ofordinary income
to operating revenues
%

1.9
1.9

%

1.0
1.0

31.0
31.3

(2) Distributions

Period ended
August 31, 2018
February 28, 2018

Distribution
per unit(excluding
distribution
in excess of net
income)Total
distributions(excluding
distribution
in excess of
net income)

yen
2,478
2,624

million yen
10,70910,976

Distribution
in excess of
net income per
unit

Total
distributions
in excess of
net income

yenmillion yen
2,619
1,769

606
423

Distribution
per unit(including
distribution inexcess of net
income)Total
distributions(including
distribution
in excess of
net income)

3,084
3,047

million yen
13,32812,745yen

Distribution
payout ratio

Ratio ofdistributions to
net assets

%
99.9
102.4

%
1.8
1.9

(Note 1) Of the ¥423 distribution in excess of net income per unit in the fiscal period ended February 28, 2018, ¥284 is a distribution of the allowance fortemporary difference adjustments and ¥139 is other distributions in excess of net earnings. Furthermore, the ratio of decreasing surplus is 0.002.
Of the ¥606 distribution in excess of net income per unit in the fiscal period ended August 28, 2018, ¥306 is a distribution of the allowance fortemporary difference adjustments and ¥300 is other distributions in excess of net earnings. (see 2. Management Policy and Management Status,(2) Management Status, D. Business Performance and Distributions, below). Furthermore, the ratio of decreasing surplus is 0.003.
(Note 2) Distribution Payout Ratio is calculated using the below formula and truncated at the first decimal place.
Distribution Payout Ratio = Total Distributions (excluding distribution in excess of Net Income) / Net Income × 100(Note 3) Ratio of Distributions to Net Assets is calculated using the below formula and truncated at the first decimal place.
Ratio of Distributions to Net Assets = Distribution Per Unit (excluding distribution in excess of Net Income) / {(Net Assets per Unit at the
beginning of the fiscal period + Net Assets per Unit at the end of the fiscal period) / 2} × 100(3) Financial Position
Period ended
August 31, 2018
February 28, 2018

Total assets

Net assets

million yen
1,118,644
1,089,820

million yen
571,836
555,090

Net assets to total assets

Net assets per unit

%
51.1
50.9

yen
132,314132,697

(4) Status of Cash FlowsNet cashprovided by (used in)operating activities
Period ended
August 31, 2018
February 28, 2018

Net cashprovided by (used in)investing activities

million yen
17,57039,573

million yen(36,129)(18,983)

Net cashprovided by (used in)financing activities

Cash andcash equivalents
at end of period

million yen
16,579(15,280)

million yen
74,55676,536

2. Earnings Forecasts for the 7th Fiscal Period (from September 1, 2018 to February 28, 2019)[% figures are the ratio of increase (decrease) compared with the previous period]
Distribution
per unit

Operating revenues

Operating profit

Ordinary income(excluding
distribution
in excess of
net income)Net income

Periodmillionmillionmillionmillion%%%ending
yen
yen
yen
yen
February 28,
34,644(0.3)
13,311
0.2
10,826
0.7
10,8252019(Reference) Forecast net income per unit for the fiscal period ending February 28, 2019 is ¥2,504.

Distribution
in excess of
net income
per unit

Distribution
per unit(including
distribution
in excess of net
income)

%

yen

yen

yen

1.1

2,504

607

3,111

*Other(1) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatements① Changes in accounting policies accompanying amendments to accounting standards, etc.:② Changes in accounting policies other than those in ①:③ Changes in accounting estimates:④ Retrospective restatements:

None
None
None
None

(2) Number of Investment Units Issued and Treasury Investment Units① Number of investment units issued (including treasury investment units)
As of August 31, 2018:
4,321,800 units
As of February 28, 2018:
4,183,130 units② Number of treasury investment units
As of August 31, 2018:– units
As of February 28, 2018:– units(Note) For the number of investment units used as the basis for calculation of net income per unit, please refer to“Notes on Per Unit Information” on page 30.
* Status of audit procedure implementation
At the time of the disclosure of this document, audit procedures for financial statements pursuant to the
Financial Instruments and Exchange Act (Act No. 25 of 1948, including subsequent amendments) have notbeen completed.
* Forward-looking statements
The earnings forecasts and other forward-looking statements contained in this document are based on
information currently available to and certain assumptions deemed reasonable by NMF. Accordingly, actual
earnings performance and other results may differ materially due to a variety of factors. Furthermore, suchforward-looking statements do not constitute a guarantee of future distributions. For more information about
the assumptions underlying forward-looking statements and the use of such statements, please refer to“Assumptions Underlying Earnings Forecasts for the Fiscal Period Ending February 28, 2019 (7th fiscal period:
September 1, 2018 to February 28, 2019 ) ” on page 5.

This is an English language translation of the original Japanese announcement of the financial statements(“Kessan Tanshin”). This translation is provided for information purpose only. Should there be any discrepancy
between this translation and the Japanese original, the Japanese original shall prevail.

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

Attachment

Table of Contents
1.

Related Corporations of the Investment Corporation ........................................ - 2 -2.

Management Policy and Management Status ............................................... - 2 (1) Management Policy ................................................................. - 2 (2) Management Status ................................................................. - 2 -3.

Financial Statements ................................................................. - 7 (1) Balance Sheet...................................................................... - 7 (2) Statement of Income and Retained Earnings ............................................. - 10 (3) Statement of Changes in Net Assets ................................................... - 11 (4) Statement of Cash Distributions ...................................................... - 15 (5) Statement of Cash Flows ............................................................ - 17 (6) Notes Concerning the Going Concern Assumption ........................................ - 19 (7) Notes Concerning Significant Accounting Policies ......................................... - 19 (8) Notes to Financial Statements ........................................................ - 22 (9)Increase (Decrease) in Total Number of Investment Units Issued and Outstanding ................ - 31 -4. Changes in Directors .................................................................. - 32 (1) Changes in NMF Directors .......................................................... - 32 (2) Changes in Asset Management Company Directors ........................................ - 32 5. Reference Information ................................................................ - 33 (1) Investment Status ................................................................. - 33 (2) Investment Assets ................................................................. - 34 -- 1 -Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

1. Related Corporations of the Investment Corporation

Disclosure is omitted because there are no significant changes from the information presented under“Structure of the Investment Corporation” in the most recently published securities report filed on May 31,
2018.

2. Management Policy and Management Status(1) Management Policy

Disclosure is omitted, since there are no significant changes from the “Investment Policy”, “Investment
Targets” and “Distribution Policy” presented in the securities report filed on May 31, 2018.

(2) Management Status① Outline of Fiscal Period under Review
NMF’s basic policy is to manage its assets mainly as investments in real estate, etc. (meaning the assets
specified in the Ordinance for Enforcement of the Act on Investment Trusts and Investment Corporations(Prime Minister’s Office Ordinance No. 129 of 2000, including subsequent amendments)), specifically realestate, leaseholds of real estate, surface rights, and the beneficial interests of trusts formed by entrustmentof only these assets, to secure stable income over the medium to long term and steady growth of assets
under management (Note). In order to realize this basic policy, NMF adopts an investment strategy that
centers on the Greater Tokyo area (Tokyo, Kanagawa, Chiba and Saitama prefectures), which offers strong
tenant demand, while also considering regional diversification through investment in all of Japan’s threemajor metropolitan areas and other major cities. By combining the “diversified type strategy,” in whichinvestments are made in a variety of facilities, such as offices, retail facilities, logistics facilities, residential
facilities and other facilities with the “large-scale REIT strategy,” which increases portfolio stability throughproperty and tenant diversification, as well as the “leasing value chain” with the sponsor, the Nomura Real
Estate Group, NMF aims to increase unitholder value by securing stable income over the medium to longterm and the steady growth of assets under management.
(Note)

Throughout this document, “assets under management” refers to assets that belong to NMF.
Furthermore, “Real estate, etc.” refers to assets defined in Article 29, Paragraph 1 (1) or (2) of NMF’s Articles of Incorporation, and “realestate backed securities” refers to assets defined in Article 29, Paragraph 1 (3) of NMF’s Articles of Incorporation (“Real estate, etc.” and“real estate-backed securities” are hereinafter collectively referred to as “real estate-related assets”). Real estate and the underlying real estateof real estate-related assets are together referred to as the “real estate under management” or “properties.”

A. Investment Environment
The Japanese economy has remained firm overall, driven by overseas demand and capital investment.
However, we are paying close attention to the situation, taking into consideration the large potential impact
on the Japanese economy of increasing trade tensions between the United States and China as well as theongoing trade discussions between Japan and the United States.
In the J-REIT market, the Tokyo Stock Exchange’s REIT index persisted at a steady, albeit low, level
despite feeling some effects of long-term interest rates after the Bank of Japan’s unveiling of plans tosoften targets for long-term interest-rate derivatives and loosen restrictions on asset purchases.
With regard to the office market, vacancy rates remained low. In addition, there was strong demand forincreased floor space and expansion-driven relocations, and rents continued to gradually climb. The
problem of oversupply in central Tokyo, which had once been a hot topic of discussion, has yet to reach alevel where it negatively impacts the market. And, as space in unfinished buildings continues to be bookedin advance, the market has yet to feel the impact of new vacancies created by tenants moving out. Major
cities in less populated regions, where new supply is limited, have seen vacancy rates remain low and rents
continuing to trend upward.
In the retail facility market, private-sector consumption continued to be sluggish and retailers, especiallythose handling clothing, struggled. However, the retail districts of major cities saw consumption byin-bound visitors go up, with rises in sales of cosmetics and luxury goods at department stores.
In the logistics facility market, overall performance has been stable, buoyed by firm demand from online
shopping outlets and third-party logistics providers (Note), NMF’s main logistics facility tenants. In thegreater Tokyo area and Kinki area, signs of an oversupply of logistics facilities emerged and it is taking
longer to find tenants in some locales; however, these vacancies are likely to soon be filled due to persistent
demand.
(Note)

Third-party logistics (3PL) refers to logistics services outsourced by shippers for part or all of their logistics functions.

- 2 -Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

Concerning the rental apartment market, in the Greater Tokyo area, a net population inflow and adwindling supply of apartments have resulted in consistently high occupancy rates and rising rents.
Performance in major cities in less populated regions, however, remained steady overall despite somecompetition for desired locations. Given the tight balance between supply and demand as well as improving
incomes, we expect rents to continue to gradually rise going forward.
In the hotel market, occupancy rates and revenue per available room (RevPAR) were steady overall in
the greater Tokyo area and other major urban areas due to a record number of foreign visitors.
In the real estate transaction market, as interest rates remained very low, investors continued to lean
towards acquiring business real estate as an effective investment vehicle, ramping up competition for
acquisitions and keeping selling prices high.
B. Management Performance
Amid the circumstances described above, NMF made its first ever public offering to raise capital asdetailed in the following section. In addition, NMF acquired two properties on March 1, 2018 (Landport
Hachioji II and Landport Iwatsuki; total acquisition price: ¥15,320 million), one property on March 5, 2018
(Hotel Vista Sapporo Odori (Note 1); acquisition price: ¥3,600 million), seven properties on April 2, 2018
(PMO Nihonbashi Mitsukoshi-mae, PMO Shibadaimon, PROUD FLAT Sangenjaya II, PROUD FLAT
Sotokanda, PROUD FLAT Noborito, PROUD FLAT Yoyogi Hachiman, and PROUD FLAT Nakaochiai;
total acquisition price: ¥14,496 million). As a result, at the end of the fiscal period under review, NMF held
281 properties (total acquisition price: ¥955,984 million), the ratio of investment in the Greater Tokyo area
was 82.1%, the gross leasable area of the portfolio was 1,866,013.42 m2, and the portfolio remained highly
diversified.
In terms of property and facility management, as described above in A. Investment Environment,
rental demand is expanding, backed by the gradual recovery of the Japanese economy. Accordingly, theoccupancy rate of the entire portfolio as of the end of the fiscal period under review was stable and high,at 99.3%. In the office sector, a key upside sector (Note 2), the rental market has seen particularly notable
recovery, with rises in newly advertised rents and successful rent increases upon contract renewal driving
the internal growth of the portfolio as a whole.
(Note 1)
(Note 2)

Due to a change in the hotel operator, on June 1, 2018, the building’s name changed from Watermark Hotel Sapporo to Hotel Vista
Sapporo Odori. The same shall apply hereinafter.
Upside sectors refer to sectors for which an increase of rental revenue can be expected, in particular offices, retail facilities in station
areas and hotels. The same shall apply hereinafter.

C. Status of Fund Procurement
During the fiscal period under review, NMF made a public offering with a payment date of March 1,
2018 (newly issued investment units: 132,000: total issue value: ¥17,572 million), and conducted athird-party allotment with a payment date of March 20, 2018 (newly issued investment units: 6,670: total
issue value: ¥887 million).
In conjunction with the fund procurement through the aforementioned public offering and third-party
allotment, NMF borrowed ¥11,000 million on April 2, 2018, to use for a part of the acquisition of assets
and related expenses. NMF used borrowings to refinance ¥29,855 million in interest-bearing liabilities withapproaching maturities. And in order to extend the maturities of its borrowings and diversify its means offunding, NMF issued investment corporation bonds (20-year bonds; total of ¥1,500 million) on May 23,
2018, which was used for a part of repayment of existing borrowings. As a result, the balance ofinterest-bearing liabilities at the end of the fiscal period under review was ¥497,155 million, and the ratio
of interest-bearing liabilities to total assets (LTV) was 44.4%.
NMF's ratings at the end of the fiscal period under review are shown below. These ratings do not
represent judgments on NMF investment units. Concerning NMF investment units, there are no credit
ratings that credit rating agencies have provided or made available for inspection, nor are there credit
ratings that credit rating agencies are scheduled to provide or make available for inspection at the request of
NMF.

Credit rating agency

Rating description

Note

Japan Credit Rating Agency, Ltd. (JCR)

Long-term issuer rating:AA

Rating outlook:

StableRating and Investment Information, Inc.
(R&I)

Issuer rating:A+

Rating outlook:

StableA

Rating outlook:

S&P Global Ratings Japan Inc. (S&P)

Long-term corporate credit
rating:Short-term corporate credit
rating:Stable- 3 -A-1

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

D. Business Performance and Distributions
In the 6th fiscal period, operating revenues totaled ¥34,731 million, operating profit reached¥13,285 million, ordinary income totaled ¥10,755 million, and net income came to ¥10,709 million.
NMF calculates cash distributions in accordance with the cash distribution policies specified in Article
36 paragraphs 1 and 2 of NMF’s Articles of Incorporation.
For the fiscal period under review, NMF decided to implement a total of ¥13,328 million in
distributions (¥3,084 per investment unit). This figure was calculated as ¥10,709 million in net income
after taxes plus ¥2,622 million in amortization of goodwill minus the portion for which per-unit
distributions comprising the types of dividends laid out below would be less than ¥1.
Total distributions comprise distributions of earnings and distributions in excess of net income.
Distributions of earnings came to ¥10,709 million (¥2,478 per investment unit), calculated as income
as stipulated in Article 136 Paragraph 1 of the Act on Investment Trusts and Investment Corporations(Act No. 198 of 1951, hereinafter the Investment Trust Act), less reversal of allowance for temporary
difference adjustments (as stipulated in Article 2 Paragraph 2 (30) of the Regulations Concerning
Accounting of Investment Corporations; hereinafter ATA). Distributions in excess of net income
comprise a ¥1,322 million (¥306 per investment unit) distribution of ATA and ¥1,296 million (¥300
per investment unit) in other distributions in excess of net earnings.
②

Outlook for Next Fiscal Period
Under the conditions described above in A. Investment Environment, NMF will continue to target
external growth by leveraging the Nomura Real Estate Group's property development capabilities andinternal growth by making maximum use of the property management pipeline with a focus on
strengthening its property brands. By doing so, with both the external growth and the internal growth,
NMF aims to secure the growth of income and increase further unitholder value.

③

Significant Subsequent Events
Not applicable- 4 -Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

Assumptions Underlying Earnings Forecasts
for the Fiscal Period Ending February 28, 2019 (7th fiscal period: September 1, 2018 to February 28, 2019)
Item
Calculation period

Assumptions
・ Fiscal period ending February 28, 2019 (7th fiscal period): September 1, 2018 to
February 28, 2019・ With respect to the 281 properties held by NMF as of this document’s publication, it isassumed that there will be no changes in assets under management (new property
acquisitions or sales of portfolio properties) through the end of the February 2019
Assets Under Management(7th) fiscal period.
・ The forecasts may be revised due to actual changes in the portfolio.

Operating revenues

・ Rental revenues are estimated based tenant trends, the presence of competing
properties nearby, real estate market conditions and other factors, with the assumptionthat there will be no delays in payment or failure to pay on the part of tenants.

Operating expenses(excluding amortization
expenses for goodwill)・ Real estate rental expenses are expected to be ¥15,013 million.
・ It is estimated that property and other taxes of ¥2,835 million will be recorded as realestate rental expenses. In general, previous owners are reimbursed for the property
taxes and city planning taxes for the portion of the fiscal year in which the acquisition
occurs from the time NMF acquires the assets onward. However, because the amountequivalent to such reimbursement is included in the cost of acquisition and iscapitalized, NMF will not record it as property taxes and city planning taxes concerning
the properties acquired on March 1, 2018, March 5, 2018 and April 2, 2018.
・ Estimated property management costs (including building management fees andproperty management fees) of ¥2,544 million are expected to be recorded as real estate
rental expenses.
・ Expenses for building repairs and maintenance required for the fiscal period arerecorded as real estate rental expenses calculated based on the mid-to-long term repair
plans that NMF’s Asset Management Company has established. However, the actual
expenses for repairs and maintenance for the fiscal period may differ significantly fromestimates due to expenses for urgent repairs of damage to buildings caused by difficult
to foresee factors, significant year-on-year fluctuations in costs or non-periodic repair
expenses. Furthermore, expenses for repairs and maintenance are estimated at ¥1,529
million.
・ Depreciation of ¥4,888 million is expected to be recorded as real estate rental
expenses.
・ Other operating expenses (including asset management fees, asset custody fees andgeneral administration fees) are estimated at ¥3,697 million.

・ Goodwill is scheduled to be amortized using the straight-line method over 20 years
pursuant to the Business Combination Accounting Standards. Goodwill amortization
expenses are expected to be ¥2,622 million.
Amortization expenses ・ Amortization of goodwill causes a difference between accounting and tax treatment
and may result in the imposition of corporation tax or other tax. NMF intends tofor goodwill
make distributions in excess of net income for the purpose of securing tax relief
during the goodwill amortization period, and it is expected that NMF will be able to
avoid such taxation.
・ The interest expenses and other borrowing-related expenses are estimated to be
Non-operating expenses¥2,474 million.
・ As of this document’s publication, the outstanding interest-bearing liabilities of
NMF are ¥497,155 million, consisting of ¥475,155 million in outstanding
Interest-bearing liabilities
borrowings and ¥22,000 million in investment corporation bonds.
- 5 -Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

Item

Assumptions
・ Regarding the ¥28,417 million in borrowings that will come due by the end of the
February 2019 (7th) fiscal period, it is assumed that NMF will make scheduled,partial repayments of ¥42 million using cash on hand, while refinancing theremainder with new borrowings.
・ It is assumed that there will be no changes in the amount of the outstanding
interest-bearing liabilities other than those stated above by the February 2019(7th)fiscal period.

Investment units

・ Forecasts are based on the number of investment units issued and outstanding as ofthis document’s publication, 4,321,800 units. NMF assumes that there will be no
additional issuance of new investment units through the February 2019(7th) fiscal
period.

Distribution per unit

・ The distribution per unit is calculated according to the distribution policy outlined
in NMF’s Articles of Incorporation.
・ NMF assumes that, of the allowance for temporary difference adjustments (“ATA”)
accrued up to the present, the amount eliminated in the February 2019 (7th) fiscal
period (¥5 million) will be reversed from retained earnings at the respective period
ends.
・ In the February 2019 (7th) fiscal period, NMF assumes there will no change in the
per-unit distribution by the change in fair value of interest rate swaps.
・ The per-unit distribution may vary due to various factors, including changes in theinvestment portfolio, changes in rent income caused by tenant replacements, andunforeseen repairs.

Distribution per unit inexcess of earnings per
unit

・ The amount of distribution in excess of net income is estimated on the assumption
NMF will distribute the amount of valuation and translation adjustments deductedfrom the total difference between accounting and tax treatment and the
distributable amount as ATA for the purpose of tax relief. The estimate is based on
the assumption that, in order to alleviate the impact on distributions of theamortization of goodwill and other merger-related expenses (the “Merger
Expenses”) and the reversal of ATA, if the total difference between accounting andtax treatment for the relevant fiscal period is less than the sum of the Merger
Expenses and the reversal of ATA, NMF will make other distributions in excess of
net income in an amount not exceeding this difference and within the limit
prescribed by the regulations of the Investment Trusts Association, Japan (the“Investment Trusts Association Japan Regulations”), which restricts the amount to60/100 of the total amount of accumulated depreciation recorded as of the end of
the relevant fiscal period less the total amount of accumulated depreciation
recorded as of the end of the immediately preceding fiscal period.
・ The distribution in excess of net earnings per unit is expected to be ¥607, comprising¥347 in distributions of ATA and ¥260 in other distributions in excess of net
earnings.

Other

・ It is assumed that there will be no amendments in legislation, taxation, accounting
principles, listing requirements, the regulations of the Investment Trusts
Association, Japan, or other laws or regulations that would affect the above
forecasts.
・ It is assumed that there will be no unexpected material changes in general economic
conditions and real estate markets.

- 6 -Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

3.

Financial Statements(1) Balance Sheet
Thousands of Yen
As of February 28, 2018

As of August 31, 2018

Cash and bank deposits

64,532,866

62,071,925

Cash and bank deposits in trust

AssetsCurrent assets
12,004,072

12,484,905

Rental receivables

556,648

719,156

Prepaid expenses

696,790749,78854－－
276,924

206,657

78,067,357

76,762,897

121,437,497

131,591,703

Less accumulated depreciation(8,322,612)(10,249,808)

Buildings, net

113,114,885

121,341,895

423,996

537,118

Less accumulated depreciation(171,650)(213,878)

Structures, net

252,345

323,240

620,042

650,784

Less accumulated depreciation(298,650)(363,337)

Machinery, net

321,391

287,446

Income taxes receivable
Consumption taxes receivable
Other
Total current assets

530,464

Noncurrent assets
Property and equipment
Buildings

Structures

Machinery

Tools, furniture and fixtures

190,500

237,337

Less accumulated depreciation(37,880)(56,101)

Tools, furniture and fixtures, net

152,619

181,235Land

223,024,636

247,417,363

Buildings in trust

178,717,511

181,115,458(17,195,122)(19,907,431)

Less accumulated depreciation
Buildings in trust, net*3

Structures in trust

161,522,389*3

161,208,027

969,309974,886

Less accumulated depreciation(697,276)(766,440)

Structures in trust, net

272,032

208,445284,564

429,315

Less accumulated depreciation(36,334)(53,443)

Machinery in trust, net

248,230

375,871

Tools, furniture and fixtures in trust

379,389

599,842

Less accumulated depreciation(104,417)(141,226)

Machinery in trust

Tools, furniture and fixtures in trust, net
Land in trust
Leased assets in trust*3

274,972*3

458,615*3

406,677,823*3

406,677,823

23,90010,107(18,850)(7,369)Leased assets, net

5,050

2,737

Construction in progress

98,9997,228

905,965,376

938,489,931

Less accumulated depreciation

Total property and equipment- 7 -Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

Thousands of Yen
As of February 28, 2018

As of August 31, 2018

Goodwill

93,453,708

90,831,465

Leasehold rights

1,331,702

1,331,702

Leasehold rights in trust

7,628,377

7,627,991

49,15645,950102,462,945

99,837,109

Long-term prepaid expenses

1,725,575

1,908,481

Long-term deposits

537,247

527,786

Security deposits

945,963

946,367

Derivatives Assets

74,639109,110

3,283,426

3,491,745

1,011,711,748

1,041,818,787

40,964

63,15940,964

63,1591,089,820,070

1,118,644,844

Intangible assets

Other
Total intangible assets
Investments and other assets

Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets- 8 -Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

As of February 28, 2018
Liabilities
Current liabilities
Trade accounts payable
Short-term debt

Thousands of Yen
As of August 31, 2018

2,223,178－

Current portion of long-term debt
Lease obligations in trust
Other accounts payable
Accrued expenses
Accrued income taxes
Accrued consumption taxes
Rent received in advance
Unearned revenue
Provision for loss on disaster
Derivatives liabilities
Other current liabilities
Total current liabilities
Long-term liabilities
Investment corporation bonds
Long-term debt
Lease obligations in trust
Long-term advances received
Security deposits from tenants
Security deposits from tenants in trust
Derivatives liabilities
Total long-term liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
SurplusCapital surplus
Deductions from capital surplus
Allowance for temporary difference adjustments
Other deductions from capital surplus
Total deduction from capital surplus
Capital surplus, net
Retained earnings
Total surplus
Total unitholders' equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Valuation and translation adjustments
Total net assets
Total liabilities and net assets

58,315,600
3,797
2,437,546
291,069605
223,118
4,896,718
263,512

*3

*4

*2

- 9 -

*1

2,558,715
500,000
63,160,600
2,728
2,370,672
322,498
2,120－
49,32546,66868,751,140－
5,069,434
228,281
17,92262,643
7,603
74,303,221

20,500,000
407,382,800
1,591
449,677
9,737,166
26,788,158
1,118,774
465,978,169
534,729,310

22,000,000
411,495,000
227
346,546
10,647,205
27,197,704
818,237
472,504,921
546,808,142*3

162,791,125

181,730,086

394,012,959

394,012,959(7,169,175)(6,000,467)*4(7,878,667)(7,060,439)(13,169,643)
380,843,315
12,549,780
393,393,095
556,184,220(14,939,107)
379,073,851
11,804,535
390,878,386
572,608,472(1,093,460)(1,093,460)
555,090,759
1,089,820,070(771,769)(771,769)
571,836,702
1,118,644,844*2

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018(2) Statement of Income and Retained Earnings
Previous period
from Sep. 1, 2017
to Feb. 28, 2018

Operating revenues
Rental revenues
Other rental revenues
Gain on sales of real estate
Total operating revenues
Operating expenses
Real estate rental expenses
Asset management fees
Asset custody fees
Administrative service fees
Directors' compensation
Amortization of goodwill
Other operating expenses
Total operating expenses
Operating profit
Non-operating revenues
Interest income
Reversal of dividends payable
Interest on refund
Other non-operating revenues
Total non-operating revenues
Non-operating expenses
Interest expenses

*1
*1
*2

*1

30,724,009
2,907,617
587,249
34,218,876*1*1

31,695,901
3,035,967－
34,731,869

14,785,472
3,007,249
56,139154,619
6,000
2,622,242
374,816
21,006,539
13,212,336*1

15,158,332
3,074,928
55,871
165,937
6,000
2,622,242
362,580
21,445,892
13,285,976

635
11,437

Interest expenses on investment corporation bonds
Amortization of investment corporation bondissuance costs
Loan arrangement fees
Investment units issuance costs
Other non-operating expenses
Total non-operating expenses
Ordinary income
Extraordinary loss
Loss on disaster
Total extraordinary Loss
Income before income taxes
Income taxes—current
Total income taxes
Net income
Retained earnings brought forward
Retained earnings at end of period- 10 -

Thousands of Yen
Current period
from Mar. 1, 2018
to Aug. 31, 2018－19
12,092

571
5,198
132
103
6,006

1,873,772
187,113

1,908,070
182,048

2,147

2,951

396,804
42,462
6,862
2,509,162
10,715,266

418,730
19,231
5,319
2,536,351
10,755,631－－
10,715,266
605
605
10,714,661
1,835,119
12,549,780

43,651
43,651
10,711,980
2,175
2,175
10,709,804
1,094,730
11,804,535

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018(3) Statement of Changes in Net Assets
Previous period (from September 1, 2017 to February 28, 2018)

Unitholders'
capitalBalance at the beginning of
the period
Changes of items during
the period
Distributions ofretained earnings
Reversal of allowancefor temporary difference
adjustments
Distributions in excess
of net earnings fromallowance for temporary
difference adjustments
Other distributions inexcess of net earnings
Net income
Net changes of items
other than unitholders’equityTotal changes of items
during the period
Balance at the end of theperiodThousands of Yen
Unitholders' equity
SurplusCapital surplus
Total deduction from capital surplus
Allowance
Deduction
Total
Net capitalforfrom otherdeduction
surplustemporary
capitalfrom capitaldifference
surplussurplusadjustment

Capitalsurplus162,592,573

394,012,959(7,367,727)(5,801,916)(13,169,643)

380,843,315

－

－

－

－

－

－

198,551－

198,551(198,551)

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

198,551－

198,551(198,551)－－(*1) 162,791,125

394,012,959(7,169,175)(6,000,467)(13,169,643)

380,843,315- 11 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

Unitholders' equity
Surplus

Balance at the beginning of
the period
Changes of items during
the period
Distributions ofretained earnings
Reversal of allowancefor temporary difference
adjustments
Distributions in excess
of net earnings fromallowance for temporary
difference adjustments
Other distributions inexcess of net earnings
Net income
Net changes of items
other than unitholders’equityTotal changes of items
during the period
Balance at the end of theperiodRetainedearnings

Total surplus

14,737,836

395,581,151(12,704,165)

Total
unitholders'equityThousands of Yen
Valuation and translation
adjustments
Deferred
Valuation
Total net
gains orandassetslosses onhedgestranslation
adjustments

558,173,725(1,524,682)(1,524,682)

556,649,043(12,704,165)(12,704,165)－－(12,704,165)(198,551)(198,551)

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

10,714,661

10,714,661

10,714,661－－

10,714,661

－

－

－

431,221431,221431,221(2,188,056)(2,188,056)(1,989,504)

431,221431,221(1,558,283)

12,549,780

393,393,095

556,184,220(1,093,460)(1,093,460)

555,090,759- 12 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

Current period (from March 1, 2018 to August 31, 2018)

Unitholders'
capitalBalance at the beginning of
the period
Changes of items during
the period
Issuanceof
newinvestment units
Distributions ofretained earnings
Reversal of allowancefor temporary difference
adjustments
Distributions in excess
of net earnings fromallowance for temporary
difference adjustments
Other distributions inexcess of net earnings
Net income
Net changes of items
other than unitholders’equityTotal changes of items
during the period
Balance at the end of theperiodThousands of Yen
Unitholders' equity
SurplusCapital surplus
Total deduction from capital surplus
Allowance
Deduction
Total
Net capitalforfrom otherdeduction
surplustemporary
capitalfrom capitaldifference
surplussurplusadjustment

Capitalsurplus162,791,125

394,012,959(7,169,175)(6,000,467)(13,169,643)

380,843,315

18,460,443

－

－

－

－

－

－

－

－

－

－

－

478,516－

478,516(478,516)

－

－

－

－

(1,188,008)－(1,188,008)(1,188,008)

－

－

－

(581,455)(581,455)(581,455)

－

－

－

－

－

－

－

－

－

－

－

－

18,938,960－(709,492)(1,059,971)(1,769,463)(1,769,463)(*1) 181,730,086

394,012,959(7,878,667)(7,060,439)(14,939,107)

379,073,851- 13 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

Unitholders' equity
Surplus

Balance at the beginning of
the period
Changes of items during
the period
Issuanceof
newinvestment units
Distributions ofretained earnings
Reversal of allowancefor temporary difference
adjustments
Distributions in excess
of net earnings fromallowance for temporary
difference adjustments
Other distributions inexcess of net earnings
Net income
Net changes of items
other than unitholders’equityTotal changes of items
during the period
Balance at the end of theperiodRetainedearnings

Total surplus

12,549,780

393,393,095

－

Total
unitholders'equityThousands of Yen
Valuation and translation
adjustments
Deferred
Valuation
Total net
gains orandassetslosses onhedgestranslation
adjustments

556,184,220(1,093,460)(1,093,460)

555,090,759－

18,460,443－－

18,460,443(10,976,533)(10,976,533)(10,976,533)－－(10,976,533)(478,516)(478,516)

－

－

－

－

－

(1,188,008)(1,188,008)－－(1,188,008)－(581,455)(581,455)－－(581,455)

10,709,804

10,709,804

10,709,804－－

10,709,804

－

－

－

321,691

321,691

321,691(745,244)(2,514,708)

16,424,251

321,691

321,691

16,745,942

11,804,535

390,878,386

572,608,472(771,769)(771,769)

571,836,702- 14 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018(4) Statement of Cash Distributions

Yen
Previous period
from Sep. 1, 2017
to Feb. 28, 2018
12,549,780,041

Current period
from Mar. 1, 2018
to Aug. 31, 2018
11,804,535,046

II. Distributions in excess of retained
earnings
Of which, allowance fortemporary difference adjustments
Of which, other distributions inexcess of net earnings

1,769,463,990

2,619,010,800

1,188,008,920

1,322,470,800

581,455,070

1,296,540,000

III. Incorporation into unitholders’capitalOf which, reversal of allowancefor
temporarydifference
adjustments

478,516,800

321,691,082

478,516,800

321,691,082

IV. Distributions[Distributions per unit]
Of which, distributions of earnings[Of which, distributions ofearnings per unit]
Of which, allowance temporary
difference adjustments[Of which, distributions in excess
of retained earnings per unit [ofallowance for temporary difference
adjustments] ]Of which, other distributions inexcess of net earnings[Of which, distributions in excess
of retained earnings per unit [ofother distributions in excess of net
earnings] ]12,745,997,110[3,047]
10,976,533,120[2,624]

13,328,431,200[3,084]
10,709,420,400[2,478]

1,188,008,920

1,322,470,800

[284]

[306]

581,455,070

1,296,540,000

[139]

[300]

V. Retained earnings carried forward

1,094,730,121

773,423,564

I. Retained earnings at end of period

Calculation method for distributions

NMF calculates distributions inaccordance with the cash distribution
policies as specified in Article 36,
paragraphs 1 and 2 of NMF’s Articles ofIncorporation.
For the fiscal period under review,
NMF
decidedtoimplement¥12,745,977,110 in distributions, for a
distribution per unit of ¥3,047. This
figure was calculated as ¥10,714,661,036
in net income plus ¥2,622,242,820 inamortizationofgoodwill
minus¥587,249,509 in gains on sale of realestate, for a subtotal of ¥12,745,997,110,
from which the portion for which
per-unit distributions comprising thetypes of dividends laid out below would
be less than ¥1 was excluded.
Total distributions comprise distributionsof earnings and distributions in excess of
net income. Distributions of earnings
came to ¥10,976,533,120 (¥2,624 perunit), calculated as income as stipulated in
Article 136 Paragraph 1 of the Act on
Investment Trusts and Investment
Corporations, less reversal of allowancefor temporary difference adjustments- 15 -

NMF
calculates distributions
inaccordance with the cash distribution
policies as specified in Article 36,
paragraphs 1 and 2 of NMF’s Articles ofIncorporation.
For the fiscal period under review,
NMF
decidedtoimplement¥13,328,431,200 in distributions, for a
distribution per unit of ¥3,084. This
figure was calculated as ¥10,709,804,925
in net income plus ¥2,622,242,820 inamortization of goodwill, from which theportion for which per-unit distributions
comprising the types of dividends laid out
below would be less than ¥1 was
excluded.
Total distributions comprise distributionsof earnings and distributions in excess of
net income. Distributions of earnings
came to ¥10,709,420,400 (¥2,478 perunit), calculated as income as stipulated in
Article 136 Paragraph 1 of the Act on
Investment Trusts and Investment
Corporations, less reversal of allowancefor temporary difference adjustments(hereinafter ATA). Distributions in excess
of net income comprise a ¥1,322,470,800

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

(hereinafter ATA). Distributions in excess
of net income comprise a ¥1,188,008,920(¥284 per unit) distribution of ATA and¥581,455,070 (¥139 per unit) in other
distributions in excess of net earnings.

- 16 -(¥306 per unit) distribution of ATA and¥1,296,540,000 (¥300 per unit) in other
distributions in excess of net earnings.

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018(5) Statement of Cash Flows
Thousands of Yen
Current period
from Mar. 1, 2018
to Aug. 31, 2018

Previous period
from Sep. 1, 2017
to Feb. 28, 2018
Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of goodwill
Investment units issuance costs
Amortization of investment corporation bond issuancecosts
Increase (decrease) in provision for loss on disaster
Interest income
Interest expenses
Loss on disposal of property and equipment
Decrease (increase) in rental receivables
Decrease (increase) in prepaid expenses
Decrease (increase) in consumption taxes receivable
Decrease (increase) in long-term prepaid expenses
Decrease (increase) in long-term deposits
Increase (decrease) in trade accounts payable
Increase (decrease) in other accounts payable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in accrued expenses
Increase (decrease) in rent received in advance
Decrease in property and equipment in trust due to sales
Decrease in intangible assets in trust due to sales
Other
SubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments for purchase of property and equipment
Payments for purchase of property and equipment in trust
Payments for purchase of intangible assets
Payments for purchase of intangible assets in trust
Reimbursement of security deposits to tenants
Proceeds from security deposits from tenants
Reimbursement of security deposits to tenants in trust
Proceeds from security deposits from tenants in trust
Payments for security deposits
Proceeds from security deposits
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term debt
Repayment of short-term debt
Proceeds from long-term debt
Repayment of long-term debt
Proceeds from issuance of investment corporation bonds
Repayment of investment corporation bonds
Payments for issuance of investment corporation bonds
Proceeds from issuance of investment corporation bonds- 17 -

10,715,266
4,738,059
2,622,242
42,462
2,147
－
(635)
2,060,886
6,256
226,256
81,225－(32,959)
28,771(855,186)
318(1,004,447)
839,836(45,530)
22,433,392
1,828(21,837)
41,838,353
635(2,264,760)(603)
39,573,624

10,711,980
4,904,202
2,622,242
19,231
2,951
17,922(571)
2,090,118
11,491(162,508)(53,500)(206,657)(182,905)
9,460
335,536(5,783)(223,118)(830)
172,716－－(294,876)
19,767,104571(2,196,550)(605)
17,570,519(11,649,878)(6,890,362)(393,847)(3,464)(272,297)
905,217(1,327,230)
648,688(210)－(18,983,384)(34,624,878)(2,817,160)－(6,913)(373,009)
1,283,082(494,332)
903,878(648)
210(36,129,771)－－
24,320,000(24,862,800)
2,000,000(4,000,000)(23,444)2,500,000(2,000,000)
38,855,000(29,897,800)
1,500,000－(25,147)
18,460,443－

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

Payments of investment corporation bonds issuancecosts
Distributions of earnings to unitholders
Distributions in excess of net earnings from allowancefor temporary difference adjustments
Other distributions in excess of net earnings
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 18 -－(61,693)(12,712,708)(10,982,284)(1,108)(1,188,092)(915)(15,280,976)(5,309,263)
71,227,675(*1)
76,536,938(581,282)
16,579,143(1,980,108)
76,536,938
74,556,830(*1)

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018(6) Notes Concerning the Going Concern Assumption
Not applicable.

(7) Notes Concerning Significant Accounting Policies
1.

Depreciation of
noncurrent assets(1) Property and equipment (including trust assets)
The straight-line method is adopted.
The useful lives of major property and equipment are as follows:
Buildings
3–70 years
Structures
2–45 years
Machinery
2–15 years
Tools, furniture and fixtures
2–20 years(2) Intangible assets
The straight-line method is adopted.
Goodwill is amortized using straight-line method over 20 years.
(3) Long-term prepaid expenses
The straight-line method is adopted.

2.

Accounting method fordeferred assets

3.

Allowance for doubtful
accounts

4.

Revenue and expenses
recognition

5.

Hedge accounting(1) Deferred investment corporation bond issuance costs
The straight-line method over the respective terms of the bonds.
(2) Investment units issuance costs
The entire amount is expensed as incurred.
(1) To be ready for possible losses arising from defaults on receivables, the uncollectableamount is estimated and recorded by investigating collectability based on historical loan loss
ratios for general receivables and on case-by-case examinations for doubtful receivables.
(2) Provision for loss on disaster
Provision for loss on disaster is recorded at the amount estimated as of August 31, 2018 toprovide for possible repair and recovery costs arising from the great earthquake in Osaka.
Accounting for fixed asset tax, etc.
Of the tax amount assessed and determined for fixed asset tax, city planning tax,
depreciable asset tax, etc. on real estate, etc. held by NMF, the method of charging theamount corresponding to the concerned fiscal period to expenses as real estate rental
expenses is adopted.
The amount equivalent to fixed asset tax, etc. for the fiscal year in which the acquisition
date falls paid to the seller as reimbursement upon acquisition of real estate or trust
beneficiary interests in real estate is included in the cost of acquisition of the concerned
real estate and not recorded as expenses. The amount equivalent to fixed asset tax, etc.
included in the cost of acquisition of real estate, etc. was ¥12,466 thousand in theprevious fiscal period, and ¥116,332 thousand in the current fiscal period.
(1) Method of hedge accounting
Deferred hedge accounting is adopted. For interest-rate swap transactions that meetthe requirements for special treatment, special treatment is adopted.
(2) Hedging instruments and hedged items
Hedging instruments
Interest-rate swap transactions
Hedged items
Interest on loans

6.

Other important bases
for preparing financial
statements(3)

Hedging policy
NMF conducts derivative transactions for the purpose of hedging risks prescribed in
the Articles of Incorporation in accordance with the Basic Policy on Risk Management.

(4)

Method for assessing effectiveness of hedging
The effectiveness of hedging is assessed by the correlation between changes in the fairvalue of hedging instruments and hedged items.

①

Method of accounting for trust beneficiary interests in real estate, etc. Concerning trust
beneficiary interests in real estate, etc., held by NMF, all assets and liabilities within thetrust assets as well as all revenues and expenses generated by the trust assets arerecorded under the corresponding items of the Balance Sheet and Statement of
Income and Retained Earnings. Of the trust assets thus recorded, the following major
items are listed as separate items on the balance sheet.
- 19 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 20187.

Cash and cash
equivalents as stated in
the Statement of Cash
Flows(1) Cash and bank deposits in trust(2) Buildings in trust; Structures in trust; Machinery in trust; Tools, furniture and fixturesin trust; Land in trust; Leased assets in trust(3) Leasehold rights in trust(4) Lease obligations in trust(5) Security deposits from tenants in trust② Method of accounting for consumption tax, etc.
Consumption tax and local consumption tax is accounted for using the tax-excluded
method. However, non-deductible consumption tax, etc., on such items as noncurrent
assets is included in the acquisition costs of individual items.
Cash and cash equivalents in the statement of cash flows consist of cash on hand and cash intrust; deposits and deposits in trust that can be withdrawn at any time; and short-term
investments with a maturity of three months or less from the date of acquisition that arereadily convertible to cash and bear only an insignificant risk of price fluctuation.

(Additional Information)(Notes Concerning Increases in and the Reversal of Allowance for Temporary Difference Adjustments)
Previous period
from Sep. 1, 2017
to Feb. 28, 2018
1．Reasons, related assets and amounts of allowanceThousands of Yen
Related assets,
etc.
Goodwill
Long-term
deposits
Subtotal
Buildings,
facilities, etc.
Unearnedrevenueother
Subtotal
Total

ReasonAmortization of
goodwill
Shortfall of reserve
for repair

Allowance
temporarydifference
adjustment

for
Related assets,
etc.

2,622,242

Goodwill

7,570

Long-term
deposits
Subtotal

2,629,813
Depreciation
deficiency
equivalent
Write-down of loss
on interest rate
swap
due to merger－

Current period
from Mar. 1, 2018
to Aug. 31, 2018
1．Reasons, related assets and amounts of allowanceThousands of Yen(1,234,822)

Buildings,
facilities, etc.

(161,277)

Unearnedrevenue(45,704)(1,441,804)
1,188,008

otherSubtotal
Total

2．Reasons, related assets and amounts of reversals
Thousands of Yen
Allowance
forRelated assets,
temporary
Reasonetc.
difference
adjustment
Land, buildings, Saleand
(47,295)
etc.
depreciationofproperties
for
which
mergerexpenses
wererecordedDeferred gains Changes in fair
(431,221)or losses on value of derivatives
hedges(478,516)
Total

ReasonAmortization of
goodwill
Shortfall of reserve
for repair

Allowance
temporarydifference
adjustmentfor2,622,242
1,613
2,623,856

Depreciation
deficiency
equivalent
Write-down of loss
on interest rate
swap
due to merger－(1,142,482)(137,860)(21,042)(1,301,385)
1,322,470

2．Reasons, related assets and amounts of reversals
Thousands of Yen
Allowance
forRelated assets,
temporary
Reasonetc.
difference
adjustment
Land, buildings, Sale
and
－
(*)
etc.
depreciationofproperties
for
which
mergerexpenses
wererecordedDeferred gains Changes in fair
(321,691)
or losses on value of derivatives
hedges(321,691)
Total(*) The amount of reversal during current period (¥5,754 thousand) is- 20 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

included in “Depreciation deficiency equivalent” on “1. Reasons, related
assets and amounts of allowance”.

3. Method of reversal(1) Amortization of goodwill

3. Method of reversal(1) Amortization of goodwill

In principle, amortization of goodwill is not reversed.
(2) Merger expenses
Method of reversal
Item
Buildings, etc. Upon depreciation and sale, thecorresponding amounts are scheduled tobe reversed.
Land
Upon sale, etc., the corresponding
amount is scheduled to be reversed.
Buildings,
Upon depreciation and sale, theetc., in trust
corresponding amounts are scheduled tobe reversed.

In principle, amortization of goodwill is not reversed.
(2) Merger expenses
Method of reversal
Item
Buildings, etc. Upon depreciation and sale, thecorresponding amounts are scheduled tobe reversed.
Land
Upon sale, etc., the corresponding
amount is scheduled to be reversed.
Buildings,
Upon depreciation and sale, theetc., in trust
corresponding amounts are scheduled tobe reversed.

Land in trust
LeaseholdrightsLeaseholdrights in trust

Land in trust
LeaseholdrightsLeaseholdrights in trust

Upon sale, etc., the corresponding
amount is scheduled to be reversed.

Upon sale, etc., the corresponding
amount is scheduled to be reversed.

(3) Long-term deposits
In principle, long-term deposits are not reversed.

(3) Long-term deposits
In principle, long-term deposits are not reversed.

(4) Deferred gains or losses on hedges
The amount corresponding to changes in the fair value ofderivatives used as hedging instruments is scheduled to bereversed.

(4) Deferred gains or losses on hedges
The amount corresponding to changes in the fair valueof derivatives used as hedging instruments is scheduled
to be reversed.

- 21 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018(8) Notes to Financial Statements(Notes to Balance Sheet)*1. Commitment line agreement① NMF has concluded a commitment line agreement with two lending financial institutions for both previous
period and current period as follows.

Committed line of credit
Balance of used line
Balance of unused line

Previous period(Feb. 28, 2018)
10,000,000－
10,000,000

Thousands of Yen
Current period(Aug. 31, 2018)
10,000,000－
10,000,000② NMF has concluded a commitment line agreement with five lending financial institutions for previous period andwith four lending financial institutions for current period as follows.

Committed line of credit
Balance of used line
Balance of unused line

Previous period(Feb. 28, 2018)
40,000,000－
40,000,000

Thousands of Yen
Current period(Aug. 31, 2018)
40,000,000
500,000
39,500,000*2. Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment
Corporations
Thousands of Yen
Previous period
Current period(Feb. 28, 2018)(Aug. 31, 2018)
50,00050,000*3. Asset offered as collateral and liabilities secured with collateralPrevious period(Feb. 28, 2018)

Thousands of Yen
Current period(Aug. 31, 2018)

Assets offered as collateral are as follows.
Buildings in trust
3,327,532
Land in trust
6,096,368
Tools, furniture andfixtures in trust
206
Total
9,424,106

Assets offered as collateral are as follows.
Buildings in trust
3,294,755
Land in trust
6,096,368
Tools, furniture andfixtures in trust
185
Total
9,391,308

Liabilities secured by collateral are as follows.
Security deposits fromtenants in trust
726,648
Total
726,648

Liabilities secured by collateral are as follows.
Security deposits fromtenants in trust
726,648
Total
726,648- 22 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

*4. Allowance for temporary difference adjustments
Previous period (from September 1, 2017 to February 28, 2018)
1. Reasons, related assets and amounts
Thousands of Yen
Related assets,
etc.

ReasonInitialamountGoodwill

Amortization of
goodwill

4,244,640

Land, buildings,
etc.

Merger expenses

Deferred gains
or losses onhedgesLoss oninterest-rate
swaps
recognized at
the end of the
fiscal period

4,029,135

2,867,594

Balance atthebeginningof current
periodAllowance
set aside
duringperiodReversalduringperiodBalance atthe end ofcurrent
periodReason forreversal

4,244,640－－

4,244,640－

1,491,074

1,545,633－－(91,221)(20,951)

1,399,852

Sale anddepreciationof properties
for whichmergerexpenses
wererecorded

1,524,682

Changes infair value ofderivativetransactions

269,797

86,378－(86,378)－

Sale ofproperties
for whichimpairment
loss wererecorded

Increase –subtotal－

7,367,727－(198,551)

7,169,175

－

Total

－

7,367,727－(198,551)

7,169,175－

Land, buildings,
etc

Impairment loss

- 23 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

2. Method of reversal(1) Amortization of goodwill
In principle, amortization of goodwill is not reversed.
(2) Merger expenses
Item

Method of reversal

Buildings, etc.

Upon depreciation and sale, the corresponding amount is scheduled to be reversed.

Land

Upon sale, the corresponding amount is scheduled to be reversed.

Buildings in trust, Upon depreciation and sale, the corresponding amount is scheduled to be reversed.
etc.
Land in trust
Upon sale, the corresponding amount is scheduled to be reversed.
Leasehold rights
Leasehold rights intrust(3) Impairment loss
Upon the sale of the relevant properties, the corresponding amount is scheduled to be reversed.
(4) Deferred gains or losses on hedges
Based on changes in the fair value of derivatives used as hedging instruments, the corresponding amount isscheduled to be reversed.

- 24 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

Current period (from March 1, 2018 to August 31, 2018)
1. Reasons, related assets and amounts
Thousands of Yen
Related assets,
etc.

ReasonInitialamountGoodwill

Amortization of
goodwill

6,866,883

Land, buildings,
etc.

Merger expenses

Deferred gains
or losses onhedgesLoss oninterest-rate
swaps
recognized at
the end of the
fiscal period

4,029,135

Balance atthebeginningof current
periodAllowance
set aside
duringperiod4,244,640

1,188,008

1,399,852－

Reversalduringperiod－Balance atthe end ofcurrent
periodReason forreversal

5,432,649－(47,295)

Sale anddepreciation ofproperties for
1,352,557 which merger
expenses wererecorded

2,867,594

1,524,682－(431,221)

Changes infair value of
1,093,460
derivativetransactions

Increase –subtotal－

7,169,175

1,188,008(478,516)

7,878,667

－

Total

－

7,169,175

1,188,008(478,516)

7,878,667－- 25 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

2. Method of reversal(1) Amortization of goodwill
In principle, amortization of goodwill is not reversed.

(2) Merger expenses
Item

Method of reversal

Buildings, etc.

Upon depreciation and sale, the corresponding amount is scheduled to be reversed.

Land

Upon sale, the corresponding amount is scheduled to be reversed.

Buildings in trust, Upon depreciation and sale, the corresponding amount is scheduled to be reversed.
etc.
Land in trust
Upon sale, the corresponding amount is scheduled to be reversed.
Leasehold rights
Leasehold rights intrust(3) Deferred gains or losses on hedges
Based on changes in the fair value of derivatives used as hedging instruments, the corresponding amount isscheduled to be reversed.

- 26 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

(Notes to Statement of Income and Retained Earnings)*1. Breakdown of real estate rental revenues and expenses
Previous period
from Sep. 1, 2017
to Feb. 28, 2018
A. Property related revenues
Rental revenues
Rent revenues
Common area charges
Other rental revenues
Parking revenues
Incidental income
Other miscellaneous revenues
Property related revenues
B. Property related expenses
Real estate rental expenses
Property management costs
Property management fees
Property and other taxes
Utility expenses
Casualty insurance
Repairs and maintenanceLand rents
Depreciation
Other rental expenses
Property related expenses

28,294,468
2,429,540

Thousands of Yen
Current period
from Mar. 1, 2018
to Aug. 31, 2018

30,724,009

29,254,971
2,440,930

584,742588,545

2,198,012
124,862

2,907,617

2,376,113
71,30833,631,626

1,592,435
888,375
2,699,055
1,784,615
43,247
1,758,408
210,4394,737,224
1,071,669

C. Real estate rental profits [A－B]- 27 -

14,785,472
14,785,472
18,846,154

31,695,901

3,035,967
34,731,869

1,604,399
980,132
2,846,279
1,882,466
43,614
1,555,208
215,680
4,901,925
1,128,627

15,158,332
15,158,332
19,573,536

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

*2. Breakdown of gain on sale of real estatePrevious period (from September 1, 2017 to February 28, 2018)
Thousands of Yen
Morisia Tsudanuma
Proceeds from sales of real estate
Cost of sales of real estate
Other related sales expenses
Gain on sales of real estate
Funabashi Logistics Center
Proceeds from sales of real estate
Cost of sales of real estate
Other related sales expenses
Gain on sales of real estate

18,000,000
17,897,287
94,5038,208
5,480,000
4,537,933
363,026
579,040

Current period (from March 1, 2018 to August 31, 2018)
Not applicable.

- 28 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

(Notes on Investment and Rental Properties)
NMF owns leasable offices, leasable retail facilities, leasable logistics facilities, leasable residential facilities and leasable
hotels, etc. (including land) in Greater Tokyo area and other areas for the purpose of earning revenue from leasing.
The following are the carrying amount, amount of increase (decrease) during the fiscal period and fair value of theseinvestment and rental properties at the end of the fiscal period.
Previous period
from Sep. 1, 2017
to Feb. 28, 2018
Carrying amount
Balance at beginning of period
Amount of increase (decrease) during period
Balance at end of period
Fair value at end of period(Note 1)
(Note 2)

(Note 3)

923,155,804(8,321,623)
914,834,180
1,001,250,000

Thousands of Yen
Current period
From Mar. 1, 2018
to Aug. 31, 2018
914,834,180
32,615,444
947,449,625
1,041,183,000

Carrying amount is the cost of acquisition less accumulated depreciation.
Of the change in investment and rental properties, the increase during the previous period is mainly attributable to theacquisition of PMO Shinnihonbashi (¥4,496,617 thousand), PMO Hirakawacho (¥3,460,311 thousand), GEMS Daimon(¥2,087,357 thousand), GEMS Kanda(¥1,520,710 thousand) and Summit Store Mukodaicho (¥5,159,847 thousand). The
decrease during the previous period is mainly attributable to the sale of Morisia Tsudanuma (¥17,897,287 thousand) andFunabashi Logistics Center (¥4,537,933 thousand) as well as depreciation (¥4,733,427 thousand). The increase during thecurrent period is mainly attributable to the acquisition of Landport Hachioji II (¥9,365,947 thousand), Landport Iwatsuki(¥6,176,597 thousand), Hotel Vista Sapporo Odori (¥3,784,521 thousand), PMO Nihonbashi Mitsukoshi-mae(¥4,374,216
thousand), PMO Shibadaimon (¥2,160,398 thousand), PROUD FLAT Sangenjaya II (¥2,836,531 thousand), PROUDFLAT Sotokanda (¥2,384,706 thousand), PROUD FLAT Noborito (¥1,278,507 thousand), PROUD FLAT Yoyogi
Hachiman (¥1,005,747 thousand) and PROUD FLAT Nakaochiai (¥880,458 thousand). The decrease during the current
period is mainly attributable to the depreciation (¥4,897,379 thousand).
Fair value at the end of the period is the appraisal value or investigation value determined by investigation, found by anoutside real estate appraiser.

The income (loss) in the previous period (from September 1, 2017 to February 28, 2018) and current period (fromMarch 1, 2018 to August 31, 2018) for investment and rental properties is as presented in “Notes to Statement of
Income and Retained Earnings” earlier in this report.

- 29 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

(Notes on Per Unit Information)
Previous period
from Sep. 1, 2017
to Feb. 28, 2018

Yen
Current period
from Mar. 1, 2018
to Aug. 31, 2018

Net assets per unit

132,697

132,314

Net income per unit

2,561

2,478

(Note 1)
(Note 2)

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

Previous period
from Sep. 1, 2017
to Feb. 28, 2018

Current period
from Mar. 1, 2018
to Aug. 31, 2018

10,714,661

10,709,804－－

Net income attributable to ordinary investment units (Thousands ofYen)

10,714,661

10,709,804

Average number of investment units during period (Units)

4,183,130

4,321,111

Net income (Thousands of Yen)
Amount not attributable to ordinary unitholders (Thousands of
Yen)(Notes on Significant Subsequent Events)
Not applicable[Disclosure Omissions]
A disclosure of notes concerning Statement of Changes in Net Assets, Statement of Cash Flows, Lease
Transactions, Financial Instruments, Securities, Derivative Transactions, Retirement Benefit Plans, Tax EffectAccounting, Equity Method Income and Retained Earnings, etc., Transactions with Related Parties, Asset
Retirement Obligations and Segment Information is omitted because such disclosure in this summary of financial
results is judged to be unnecessary.

- 30 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

(9)Increase (Decrease) in Total Number of Investment Units Issued and Outstanding

The following is the increase (decrease) in unitholders’ capital and total number of investment units issued andoutstanding during the period from the date of incorporation of NMF through the end of the current fiscal
period (August 31, 2018).

Date

Description

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

Unitholders’ capital(Millions of Yen) (Note 1)
Increase(Decrease)

Note

Balance

October 1, 2015

Consolidation typemerger3,722,010

3,722,010

161,120

161,120(Note 2)September 1, 2016

Absorption typemerger461,120

4,183,130－

161,120(Note 3)－4,183,130

763

161,883(Note 4)－4,183,130

708

162,592(Note 4)－4,183,130

1,987

162,791(Note 4)

October 14, 2016

April 14, 2017

October 13, 2017

Reversal of Allowancefor temporary
difference adjustments
Reversal of Allowancefor temporary
difference adjustments
Reversal of Allowancefor temporary
difference adjustments

March 1, 2018

Public offering

132,000

4,315,130

17,572

180,363(Note 5)

March 20, 2018

Third party allotment
increase

6,670

4,321,800

887

181,251(Note 6)

April 13, 2018

Reversal of Allowancefor temporary
difference adjustments－

4,321,800

478

181,730(Note 4)(Note 1)
(Note 2)

Figures have been truncated at the nearest million yen.
NMF was established through the consolidation type merger of the former Nomura Master Fund (hereinafter “former NMF”),
Nomura Office Fund (hereinafter “NOF”) and Nomura Residential Fund (hereinafter” NRF”) on October 1, 2015 (hereinafter “theMerger of the Three REITs”). Upon its establishment, NMF allotted 1 NMF unit per former 1.00 NMF unit, 3.60 NMF units per 1.00
NOF unit and 4.45 NMF units per 1.00 NRF unit.
(Note 3) On September 1, 2016, as part of the absorption type merger, with NMF as the surviving corporation and TOP REIT, Inc.
(hereinafter “TOP”) as the absorbed corporation (hereinafter “the Absorption Type Merger with TOP”), NMF issued 2.62 NMF units
per 1.00 TOP unit, resulting in the issue of 461,120 new units. There was no change in the total amount of unitholders’ capital due tothis absorption type of merger.
(Note 4) NMF’s Board of Directors resolved to reverse the allowance for temporary difference adjustments and incorporate the amounts of said
reversals into unitholders’ capital at the Board of Directors meeting on each said date.
(Note 5) NMF issued new investment units through public offering at an issue price of ¥137,474 per unit (issue value: ¥133,125 per unit ) forthe purpose of procuring funds to acquire new properties.
(Note 6) NMF issued new investment units through third-party allotment at an issue value of ¥133,125 per unit together with the issuance of
new investment units through public offering.

- 31 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

4. Changes in Directors(1) Changes in NMF Directors

Timely disclosure of changes in directors is made when the relevant details are determined.
During the 6th fiscal period, there was no change in directors.

(2) Changes in Asset Management Company Directors

Timely disclosure of changes in directors is made when the relevant details are determined. During the 6th
fiscal period, there were some changes in directors as shown below. For details, please refer to the press
release dated March 2, 2018 titled “Notice Concerning Changes of Director and Important Employees in
Asset Management Company” and the press release dated May 18, 2018 titled “Notice Concerning Changesof Director in Asset Management Company”.

Appointments (as of April 1, 2018)
Name
Title (New)Director and Managing Executive
Officer In charge of the International
Daisuke Kimura
Business Planning Section and theInvestment Management Department
Resignations (as of March 31, 2018)
Name
Shoji Yoshihara
Resignations (as of June 14, 2018)
Name
Tadanao Takagoshi

Title (New)(Resignation)

Title (Former)(New appointment)

Title (Former)
Director and Executive Officer Headof the NPR Investment Management
Department

Title (New)

Title (Former)(Resignation)

Statutory Auditor

Other changes (as of April 1, 2018)
Name
Title (New)
Representative Director and Senior
Managing Executive Officer
Supervisor of the International
Business Planning Section, Client
Fumiki Kondo
Relations & Marketing Department
and the Investment Management
Department In charge of the
Corporate Planning Department andthe Finance & Accounting Department
Director and Managing Executive
Officer In charge of the Client
Relations & Marketing Department,
Noriaki Ido
the Product Development Department
and the NPR Investment Management
Department- 32 -

Title (Former)
Representative Director and Senior
Managing Executive Officer
Supervisor of the Investment
Management Department In charge of
the Corporate Planning Department,
the International Business Planning
Section and the Finance & Accounting
Department
Director and Managing Executive
Officer In charge of the Client
Relations & Marketing Department,
the Investment Management
Department and the ProductDevelopment Department

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

5. Reference Information(1) Investment Status
5th fiscal period
6th fiscal period
As of February 28, 2018
As of August 31, 2018
Area
As a percentage
As a percentage
Type of asset
Use
Total amount held
Total amount held
(Note 1)of total amount ofof total amount of(Millions of Yen)
(Millions of Yen)
assets (%)
assets (%)(Note 2)
(Note 2)
(Note 3)(Note 3)
Greater Tokyo area
100,8459.3
107,074
9.6
OfficeOther areas
21,521
2.0
21,458
1.9
properties
Subtotal
122,366
11.2
128,532
11.5
Greater Tokyo area
20,3901.9
20,316
1.8
RetailOther areas
12,1591.1
12,161
1.1
properties
Subtotal
32,5493.0
32,478
2.9Greater Tokyo area
20,8191.936,193
3.2
Logistics
properties
Real estate
Subtotal
20,8191.936,193
3.2
Greater Tokyo area
126,303
11.6
134,093
12.0
Residential
Other areas
31,0222.8
30,673
2.7
properties
Subtotal
157,326
14.4
164,766
14.7
Other areas
3,774
0.3
Hotel
－
－
properties
Subtotal
3,774
0.3
－
－
Greater Tokyo area
5,136
0.5
5,136
0.5
Other
properties
Subtotal
5,136
0.5
5,136
0.5
Greater Tokyo area
257,38823.6
258,058
23.1
OfficeOther areas
50,5244.6
51,0094.6
properties
Subtotal
307,91228.3
309,067
27.6
Greater Tokyo area
80,995
7.4
80,8797.2
RetailOther areas
47,066
4.3
46,925
4.2
properties
Real estate
Subtotal
128,06211.8
127,804
11.4
in trust
Greater Tokyo area
115,032
10.6
114,154
10.2
Logistics
Other areas
3,430
0.3
3,408
0.3
properties
Subtotal
118,463
10.9
117,563
10.5
22,1992.0
22,131
2.0
Residential Greater Tokyo area
properties
Subtotal
22,1992.0
22,131
2.0
Subtotal
914,834
83.9
947,449
84.7
Deposits and other assets
174,98516.1
171,195
15.3
1,089,820
100.0
1,118,644
100.0
Total amount of assets
5th fiscal period
As of February 28, 2018
As a percentage
Amountof total amount(Millions of Yen)of assets (%)(Note 4)(Note 3)
Total amount of liabilities
Total amount of net assets

6th fiscal period
As of August 31, 2018
As a percentage
Amountof total amount(Millions of Yen)of assets (%)(Note 4)(Note 3)534,72949.1

546,808

48.9

555,09050.9

571,83651.1(Note 1) “Greater Tokyo area” refers to Tokyo, Kanagawa Prefecture, Chiba Prefecture and Saitama Prefecture. “Other areas” refers tocabinet-order-designated cities, prefectural capitals, and cities with a population of 100,000 persons or more as well as surrounding areas ofthese cities that are not included in the Greater Tokyo area. The same shall apply hereinafter.
(Note 2) Total amount held is the carrying amount (in the case of real estate and real estate in trust, the sum total amount of book value, after
depreciation).
(Note 3) The figures are rounded off to first decimal place. Accordingly, the sum may not be exactly 100.0%.
(Note 4) Total amount of liabilities and total amount of net assets are the amounts as stated in the balance sheet as total liabilities and total net assets.

- 33 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018(2) Investment Assets① Major Investment Securities
Not applicable.
② Investment Real Estate Properties
Real estate is listed together with beneficial interests in real estate trusts in ③ Other Major Investment
Assets, below.
③ Other Major Investment Assets
The following summarizes the real estate, etc. (281 properties) held as of August 31, 2018 (the end of the
6th fiscal period) by NMF (this real estate and the beneficiary interests of trusts in which real estate
properties are the principal trust properties or the real estate that constitutes the underlying assets
thereof are hereinafter referred to as the “assets held at the end of the 6th fiscal period”). Unlessotherwise stated, the figures in the tables below are the figures as of August 31, 2018.

- 34 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

A. Overview of Portfolio and Leasing Status and Changes in Occupancy Rate(a) Overview of Portfolio and Leasing Status
The following is an overview of the portfolio and leasing status for the assets held at the end of the
6th fiscal period.
Number of properties

281

Gross leasable area (m2) (Note 1)

1,866,013.42

Gross leased area (m2) (Note 2)

1,852,454.59

Total number of tenants (Note 3)

1,291

Total of all contracted rent (Thousands of Yen) (Note 4)

5,273,665(Note 1) The sum total of the “leasable area” of each of the assets held at the end of the 6th fiscal period. “Leasable area” is the sum
total area of office buildings, retail facilities, logistics facilities, residential facilities, or hotels etc. leasable in each asset (including
the area of common-use space, etc., if leased). Leasable area is calculated based not on that presented in the registry, but thearea stated in the lease contract and the area calculated based on building completion drawings, etc. Accordingly, the leasablearea may not be the same as the floor area based on that presented in the registry and may exceed the floor area. In the case ofland with leasehold right, the land area based on that presented in the registry is used as contracted area. For the Shinjuku
Nomura Building, NEC Head Office Building and Musashiurawa Shopping Square the leasable area is the area calculated bymultiplying the building’s overall leasable area by the quasi co-ownership ratio of the beneficial interest in real estate trust
owned by NMF as of the end of the fiscal period. For the NRE Tennozu Building, since the rent under the master leaseagreement is calculated as the building’s overall rent multiplied by the ownership ratio of the common areas, the leasable area iscalculated as the building’s overall leasable area multiplied by the ownership ratio of the common areas. Land with leaseholdinterest indicates the land area in the registry as contracted space.
(Note 2) The sum total of “leased area” of each of the assets held at the end of the 6th fiscal period. “Leased area” is the area that is
actually leased to an end-tenant (The area stated in the lease contract; provided, however, that such be limited to the area ofoffice properties, retail properties, logistics properties, residential properties, or hotel properties etc. (if all rental units arecollectively leased, then the area of the entire rental units) and not include the leased area of parking space, etc. However, if themaster lessee has a rent-guaranteed master lease for some or all rental units, the space is included in leased area regardless ofwhether or not there is a lease agreement with an end-tenant.) in each asset. In the case of land with leasehold right, the leased
area of the land is shown. For the Shinjuku Nomura Building, NEC Head Office Building and Musashiurawa Shopping Square
the leased area is the area calculated by multiplying the building’s overall leased area by the quasi co-ownership ratio of thebeneficial interest in real estate trust owned by NMF as of the end of the fiscal period. For the NRE Tennozu Building, since
the rent under the master lease agreement is calculated as the building’s overall rent multiplied by the ownership ratio of thecommon areas, the leased area is calculated as the building’s overall leased area multiplied by the ownership ratio of thecommon areas.
(Note 3) The sum total of “total number of tenants” of each of the assets held at the end of the 6th fiscal period. In the calculation of“number of tenants,” when some or all rental units are collectively leased for the purpose of subleasing and the lessee in thelease agreement (master lease agreement) has concluded an agreement with an end-tenant (sublessee that is the actual user) for
subleasing the rental units, the lessee of the master lease agreement is counted as one tenant. However, in the case of assets
with a so-called pass-through master lease agreement, where the rent received from the lessee in the master lease agreement is
the same amount as the rent that the lessee receives from the end-tenant, the total number of end-tenants is shown. In addition,
if multiple rental units in a specific asset are leased to a specific tenant, this is counted as one tenant for the asset and, if
multiple assets are leased to a specific tenant, these are counted separately and the total of that number of tenants is shown. For
residential facilities or residential portions of “other” sector facilities, when some or all rental units are collectively leased for the
purpose of subleasing and the lessee in the lease agreement (master lease agreement) has concluded an agreement with an
end-tenant for subleasing the rental units, the lessee of the master lease agreement is counted as one tenant, and the total
number of tenants for the building as whole is shown.
(Note 4) The total amount of “total contracted rent” for August 2018 of each of the assets held at the end of the 6th fiscal period(amounts less than one thousand are truncated). “Total contracted rent” for August 2018 refers to the sum total of monthly
rent and common area charges in lease agreements actually concluded with end-tenants that are valid as of the last day ofAugust 2018 (This does not include parking space or other fees stated in parking space lease agreements or other suchagreements signed in addition to the tenant lease agreement. If common-use space, etc. is leased based on the lease agreement,
the rent for such is included and, if rent includes an amount equivalent to the fee for use of parking space, such amount isincluded. In addition, if the master lessee has a rent-guaranteed master lease for some or all rental units, the rent for the space isbased on the rent, etc., in the lease agreement concluded with the master lessee.). Furthermore, regarding tenants who havebeen exempt from rent payment for a certain period of time in their agreements, such exemption period is not considered in
the table above, and the rent is calculated based on the monthly rent and common area charges payable immediately after the
exemption period ends. In addition, the standard level of rent is used for tenants with sales-based rent. For the Shinjuku- 35 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

Nomura Building, NEC Head Office Building and Musashiurawa Shopping Square the total contracted rent is calculated bymultiplying the building’s overall rent revenues by the quasi co-ownership ratio of the beneficial interest in real estate trust
owned by NMF as of the end of the fiscal period. For the NRE Tennozu Building, the the total contracted rent is calcuclated as thebuilding’s overall rent revenues multiplied by the ratio of the common areas that NMF owns through the trustee.

(b) Changes in Occupancy Rate
The following is the changes in the occupancy rate of real estate under management held by NMF.

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

February 29, 2016(end of 1st fiscal
period)August 31, 2016(end of 2nd fiscal
period)February 28, 2017(end of 3rd fiscal
period)August 31, 2017(end of 4th fiscal
period)February 28, 2018(end of 5th fiscal
period)

98.9

99.1

99.2

98.4

98.6

August 31, 2018(end of 6th fiscal
period)Portfolio occupancy rate
(at end of fiscal period) (%)

99.3- 36 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

B. Price and Investment Share
The following is an overview of the assets held at the end of the 6th fiscal period (acquisition price,
carrying amount, opinion of value at end of period, investment share and appraiser).

Use

Area

Property nameGreaterTokyo
area

Carrying amount(Millions of Yen)
(Note 2)

Opinion of value
at end of period(Millions of Yen)
(Note 3)

Investment
share
(%)
(Note 4)

Appraiser

10,40010,434

10,800

1.0

Secom Medical Building

11,10010,884

11,400

1.1

NMF Shiba Building

7,040

7,064

7,250

0.7

Nishi-Shinjuku Showa Building

8,140

8,143

8,050

0.8

NRE Shibuya Dogenzaka Building

5,310

5,308

5,760

0.6

Iwamoto-cho Toyo Building

4,050

4,067

4,500

0.4

NMF Surugadai Building

4,690

4,687

5,230

0.5

PMO Nihonbashi Honcho

4,320

4,190

4,780

0.5

PMO Nihonbashi Kayabacho

5,010

4,873

5,700

0.5

NMF Gotanda Ekimae Building

4,430

4,600

4,960

0.5

NRE Higashi-nihonbashi Building

3,570

3,559

3,520

0.3

PMO Akihabara

4,240

4,106

4,830

0.5

Hatchobori NF Building

2,480

2,457

2,520

0.2

4,160

4,196

4,140

0.4

2,830

2,818

2,940

0.3

PMO Hatchobori

2,880

2,781

3,250

0.3

PMO Nihonbashi Odenmacho

2,210

2,142

2,560

0.2

PMO Higashi-nihonbashi

1,690

1,619

1,900

0.2

NRE Ueno Building

6,470

6,473

6,640

0.6

NF Hongo Building.

4,890

4,853

5,080

0.5

Crystal Park Building

3,390

3,350

3,370

0.3

NMF Kichijoji Honcho Building

1,780

1,861

2,000

0.2

Faret Tachikawa Center Square

3,850

3,827

4,400

0.4

The Tanizawa Sogo
Appraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Japan Real Estate
InstituteJapan Real Estate
Institute
Daiwa Real EstateAppraisal Co., Ltd.
Japan Real Estate
Institute
Daiwa Real EstateAppraisal Co., Ltd.
Appraisal Firm A
Square Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Japan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan Real Estate
InstituteJapan Real Estate
Institute
Daiwa Real EstateAppraisal Co., Ltd.
Japan Real Estate
InstituteJapan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
Institute
Daiwa Real EstateAppraisal Co., Ltd.
Appraisal Firm A
Square Ltd.
Japan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.

7,830

7,940

9,300

0.9

Japan Valuers Co., Ltd.

5,460

5,661

6,900

0.7

Shinjuku Nomura Building (Note5)

43,90046,38849,200

4.7

NRE Tennozu Building

20,50020,48721,800

2.1

Kojimachi Millennium Garden

26,70026,47827,2002.6

10,00010,147

11,600

1.1

NMF
Shinjuku
Minamiguchi
Building
NMF Shibuya Koen-dori Building

OfficeAcquisition price(Millions of Yen)
(Note 1)

NMF
Kanda
Iwamoto-cho
Building
NMF Takanawa Building

NMF Kawasaki Higashiguchi
Building
NMF
Yokohama
Nishiguchi
Building
NMF Shin-Yokohama Building

2,620

2,824

3,070

0.3

PMO Tamachi

6,210

6,204

7,110

0.7

PMO Ginza Hatchome

3,970

3,973

4,560

0.4

PMO Shibakoen

3,900

3,893

4,460

0.4

44,10044,26845,300

4.4

18,20018,06718,5001.8

10,40010,445

11,9001.1

NEC Head Office Building (Note6)
Harumi Island Triton Square
Office Tower Y
NMF Aoyama 1-chome Building- 37 -

Japan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
Institute
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Japan Real Estate
Institute

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

Use

Area

Acquisition price(Millions of Yen)
(Note 1)

Property nameNMF Takebashi Building
Harumi Island
Office Tower Z

GreaterTokyo
area

OfficeTritonSquare

8,330

8,285

8,850

0.8

8,084

8,330

0.8

6,070

6,044

6,400

0.6

NMF Shinjuku EAST Building

5,710

5,703

6,070

0.6

NMF Shiba-Koen Building

3,620

3,778

3,810

0.4

NMF Ginza 4-chome Building

1,850

1,877

2,000

0.2

Faret East Building

1,850

1,857

1,970

0.2

PMO Shinnihonbashi

4,440

4,462

4,800

0.5

PMO Hirakawacho

3,410

3,436

3,660

0.4

PMO Nihonbashi Mitsukoshi-mae

4,310

4,362

4,630

0.4

PMO Shibadaimon

2,130

2,153

2,240

0.2

Sapporo North Plaza

6,250

6,312

7,380

0.7

NRE Sapporo Building

4,140

3,889

4,800

0.5

2,030

2,176

2,480

0.2

2,320

2,577

2,370

0.2

2,240

2,114

2,350

0.2

NMF Nagoya Yanagibashi Building

2,280

2,348

2,190

0.2

Omron Kyoto Center Building

18,30018,09618,100

1.7

SORA Shin-Osaka 21

12,10011,966

12,1001.2

NRE Osaka Building

6,100

6,902

6,290

0.6

NRE Nishi-Umeda Building

3,450

3,488

3,640

0.3

NRE Yotsubashi Building

4,000

4,016

4,240

0.4

NRE Hiroshima Building

2,280

2,278

2,650

0.3

NMF Hakata Ekimae Building

4,210

4,166

5,000

0.5

NMF Tenjin-Minami Building

2,230

2,134

2,450

0.2

434,550437,600

465,280

44.7

Yokosuka More’s City

13,64013,842

15,900

1.5

Recipe SHIMOKITA

10,407

10,522

11,100

1.1

Kawasaki More’s

6,080

6,858

8,160

0.8

EQUINIA Shinjuku

4,260

4,307

4,950

0.5

EQUINA Ikebukuro

3,990

4,053

4,460

0.4

covirna machida

3,440

3,778

4,280

0.4

Nitori Makuhari

3,080

2,818

3,820

0.4

Konami Sports Club Fuchu

2,730

2,583

3,350

0.3

FESTA SQUARE

2,600

2,357

3,310

0.3

GEMS Shibuya

2,490

2,423

2,670

0.3

Sundai Azamino

1,700

1,554

2,100

0.2

EQUINIA Aobadai

1,560

1,615

2,050

0.2

1,000

971

1,430

0.1

Office subtotal

RetailInvestment
share
(%)
(Note 4)

8,180

NMF Utsunomiya Building (Note8)
NMF Nagoya Fushimi Building

GreaterTokyo
area

Opinion of value
at end of period(Millions of Yen)
(Note 3)

NMF Kayabacho Building

NMF Sendai Aoba-dori Building

Other
areas

Carrying amount(Millions of Yen)
(Note 2)

Megalos Kanagawa- 38 -

Appraiser
The Tanizawa Sogo
Appraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Japan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
Institute
JLL Morii Valuation &Advisory K.K.(Note7)
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan Real Estate
InstituteJapan Valuers Co.,
Ltd.
Japan Real Estate
InstituteJapan Valuers Co.,Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan Real Estate
InstituteJapan Real Estate
Institute

The Tanizawa Sogo
Appraisal Co., Ltd.
Japan Valuers Co.,Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Japan Real Estate
InstituteJapan Real Estate
Institute
Daiwa Real EstateAppraisal Co., Ltd.
Japan Real Estate
Institute
Daiwa Real EstateAppraisal Co., Ltd.
Japan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
Institute

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

Use

Area

Acquisition price(Millions of Yen)
(Note 1)

Property name

Japan Real Estate
Institute
Daiwa Real EstateAppraisal Co., Ltd.
Japan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Japan Real Estate
Institute

3,230

0.3

Mitsubishi Motors Chofu（Land）

1,760

1,776

1,770

0.2

Mitsubishi Motors Nerima（Land）

1,240

1,251

1,400

0.1

950

959

1,190

0.1

850

859

882

0.1

800

808

882

0.1

Mitsubishi Motors Higashikurume（Land）

800

808

886

0.1

Mitsubishi Motors Setagaya（Land）

770

779

961

0.1

Mitsubishi（Land）

600

606

690

0.1

Japan Real
InstituteJapan Real
InstituteJapan Real
Institute

450

455

521

0.1

The Tanizawa Sogo
Appraisal Co., Ltd.

370

375

386

0.0

Japan Real
Institute

350

355

386

0.0

The Tanizawa Sogo
Appraisal Co., Ltd.

200

204

184

0.0

160

163

178

0.0

10,41010,346

11,100

1.1

2,080

2,076

2,080

0.2

Sagamihara Shopping Center

6,840

6,808

6,920

0.7

Musashiurawa(Note 6)

2,720

2,647

2,830

0.3

700

747

779

0.1

GEMS Daimon

2,060

2,067

2,110

0.2

GEMS Kanda

1,500

1,507

1,530

0.1

Summit Store Mukodaicho

5,100

5,138

5,190

0.5

Universal CityWalk Osaka

15,50015,45818,200

1.7

Izumiya Senrioka

8,930

8,507

11,100

1.1

Izumiya Yao

4,406

4,124

5,490

0.5

Izumiya Obayashi

3,020

3,239

4,040

0.4

Ichibancho stear

4,700

4,544

5,650

0.5

EQUINIA Aobadori

1,640

1,424

1,960

0.2

MEL Building

1,060

1,054

1,200

0.1

nORBESA

8,500

8,571

8,540

0.8

Nakaza Cui-daore Building

11,60012,161

11,1001.1

159,783

160,282

180,945

17.4

Landport Urayasu

17,40016,441

22,0002.1

Landport Itabashi

15,71014,903

19,7001.9

Landport Kawagoe

13,70012,446

16,5001.6

Landport Atsugi

11,41010,621

12,0001.2

10,60010,101

12,300

1.2

8,700

8,059

10,800

1.0

8,250

7,578

9,650

0.9

MotorsMotors

Katsushika

Sekimachi

Mitsubishi Motors Higashiyamato（Land）
Mitsubishi Motors Motosumiyoshi（Land）
Mitsubishi
MotorsKawagoe（Land）
Motors

Edogawa

Mitsubishi Motors Sayama（Land）
NRE Kichijoji Building(Note 9)GEMS Ichigaya

Shopping

SquareSummit Store Naritahigashi (Land)

Retail subtotal

Greater
Logistics Tokyo
area

Appraiser

2,764

Mitsubishi（Land）

Other
areas

Investment
share
(%)
(Note 4)

2,740

Mitsubishi（Land）

RetailOpinion of value
at end of period(Millions of Yen)
(Note 3)

Mitsubishi Motors Meguro（Land）

Mitsubishi
MotorsKawasaki（Land）
Mitsubishi Motors Takaido（Land）

GreaterTokyo
area

Carrying amount(Millions of Yen)
(Note 2)

Sagamihara Tana Logistics Center
Sagamihara
OnodaiCenter
Landport Hachioji

Logistics- 39 -

EstateEstateEstateEstateDaiwa Real EstateAppraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Japan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan Real Estate
Institute
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Japan Valuers Co.,
Ltd.
Japan Valuers Co.,Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan Real Estate
InstituteJapan Real Estate
InstituteJapan Valuers Co.,Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Japan Real Estate
InstituteJapan Real Estate
Institute

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

Use

Area

GreaterTokyo
Logistics area

Other
areas

Acquisition price(Millions of Yen)
(Note 1)

Property name

Investment
share
(%)
(Note 4)

Appraiser

7,340

6,596

8,740

0.8

Atsugi Minami Logistics Center B
Tower

4,590

4,294

5,700

0.5

Hanyu Logistics Center

3,810

3,523

4,390

0.4

Kawaguchi Logistics Center B
Tower

3,750

3,651

4,630

0.4

Japan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.

Kawaguchi Logistics Center A
Tower

2,830

2,791

3,510

0.3

Daiwa Real EstateAppraisal Co., Ltd.

2,690

2,574

3,420

0.3

Atsugi Minami Logistics Center A
Tower
Kawaguchi Ryoke Logistics Center

The Tanizawa Sogo
Appraisal Co., Ltd.
JLL Morii Valuation &Advisory K.K.
Japan Valuers Co.,
Ltd.
Japan Valuers Co.,
Ltd.
Japan Valuers Co.,
Ltd.
Japan Valuers Co.,Ltd.
Daiwa Real EstateAppraisal Co., Ltd.

10,790

10,572

13,2001.3

Landport Kashiwa Shonan II

10,80010,774

11,4001.1

Landport Kashiwa Shonan I

9,900

9,943

10,100

1.0

Landport Hachioji II

9,230

9,324

9,330

0.9

Landport Iwatsuki

6,090

6,151

6,110

0.6

3,460

3,408

3,870

0.4

161,050

153,757

187,350

18.0

3,400

3,298

3,450

0.3

PROUD FLAT Yoyogi Uehara

989

975

945

0.1

PROUD FLAT Hatsudai

713

694

770

0.1

750

727

693

0.1

PROUD FLAT Gakugei Daigaku

746

718

789

0.1

PROUD
Gyoninzaka

939

908

1,020

0.1

PROUD FLAT Sumida Riverside

2,280

2,179

2,500

0.2

PROUD FLAT Kagurazaka

1,590

1,530

1,730

0.2

PROUD FLAT Waseda

1,110

1,063

1,200

0.1

947

911

936

0.1

PROUD FLAT Sangen Jaya

1,190

1,142

1,260

0.1

PROUD FLAT Kamata

1,160

1,099

1,250

0.1

PROUD FLAT Kamata II

3,320

3,169

3,390

0.3

PROUD FLAT Shinotsuka

623

591

547

0.1

928

885

983

0.1

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

652

624

605

0.1

Daiwa Real EstateAppraisal Co., Ltd.

PROUD FLAT Monzen Nakacho
I

1,030

978

955

0.1

PROUD FLAT Fujimidai

1,470

1,409

1,630

0.2

PROUD FLAT Asakusa Komagata

1,920

1,820

2,170

0.2

PROUD FLAT Yokohama

2,090

1,987

2,190

0.2

PROUD FLAT Kamioooka

2,710

2,581

2,690

0.3

PROUD FLAT Tsurumi II

1,650

1,567

1,760

0.2

PRIME URBAN Azabu Juban

1,100

1,101

982

0.1

PRIME URBAN Akasaka

938

929

926

0.1

PRIME URBAN Tamachi

972

949

956

0.1

Hirakata Kuzuha Logistics Center

PROUD
Takanawa

PROUD
Sakuragaoka

PROUD
Kawadacho

GreaterTokyo
area

Opinion of value
at end of period(Millions of Yen)
(Note 3)

Landport Kasukabe

Logistics subtotal

Residential

Carrying amount(Millions of Yen)
(Note 2)FLAT

Shirokane

FLAT

Shibuya

FLAT

FLAT

MeguroShinjuku

PROUD
FLAT
Kiyosumi
Shirakawa
PROUD FLAT Monzen NakachoII- 40 -

Daiwa Real EstateAppraisal Co., Ltd.
Japan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Japan Real Estate
Institute
Chuo Real EstateAppraisal Co., Ltd.
Chuo Real EstateAppraisal Co., Ltd.
Chuo Real EstateAppraisal Co., Ltd.

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

Use

Area

Acquisition price(Millions of Yen)
(Note 1)

Property name

Opinion of value
at end of period(Millions of Yen)
(Note 3)

Investment
share
(%)
(Note 4)

1,830

1,774

1,960

0.2

PRIME URBAN Yoyogi

359

348

323

0.0

PRIME URBAN Ebisu II

1,140

1,125

1,280

0.1

PRIME URBAN Bancho

1,090

1,069

1,110

0.1

679

663

658

0.1

PRIME URBAN Iidabashi

2,040

1,981

2,050

0.2

PRIME URBAN Ebisu

1,260

1,249

1,270

0.1

PRIME URBAN Naka Meguro

1,410

1,392

1,370

0.1

PRIME URBAN Gakugei Daigaku

775

758

820

0.1

PRIME URBAN Senzoku

474

469

485

0.0

PRIME URBAN Meguro Riverside

414

397

441

0.0

PRIME URBAN Meguro Ohashi
Hills

2,970

2,880

3,130

0.3

PRIME URBAN Meguro Aobadai

1,310

1,284

1,500

0.1

PRIME URBAN Gakugei Daigaku
II

1,080

1,058

1,190

0.1

PRIME URBAN Naka Meguro II

2,850

2,829

3,080

0.3

PRIME URBAN Kachidoki

2,570

2,577

2,400

0.2

PRIME URBAN Shinkawa

2,100

2,082

2,300

0.2

PRIME URBAN
Yokoyamacho

Nihonbashi

4,220

4,051

4,560

0.4

PRIME URBAN
HamachoNihonbashi

1,550

1,509

1,720

0.2

PRIME URBAN Hongo Ikizaka

557

538

607

0.1

PRIME URBAN Hakusan

PRIME URBAN Shibaura LOFTPRIME URBAN Chiyoda Fujimi

Greater
Resident
Tokyo
ial
area

Carrying amount(Millions of Yen)
(Note 2)

Appraiser
Japan Valuers Co.,Ltd.
Chuo Real EstateAppraisal Co., Ltd.
Japan Real Estate
Institute
Chuo Real EstateAppraisal Co., Ltd.
Chuo Real EstateAppraisal Co., Ltd.
Chuo Real EstateAppraisal Co., Ltd.
Chuo Real EstateAppraisal Co., Ltd.
Chuo Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Japan Valuers Co.,
Ltd.
Japan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
Institute
Chuo Real EstateAppraisal Co., Ltd.
Japan Valuers Co.,
Ltd.
Japan Valuers Co.,
Ltd.

866

824

961

0.1

PRIME URBAN Yotsuya Gaien
Higashi

1,490

1,465

1,400

0.1

PRIME URBAN Nishi Shinjuku I

1,090

1,066

1,160

0.1

PRIME URBAN Nishi Shinjuku II

885

863

975

0.1

PRIME
URBAN
Naitomachi

430

428

466

0.0

PRIME URBAN Nishi Waseda

421

401

449

0.0

PRIME URBAN Shinjuku Ochiai

594

595

637

0.1

PRIME URBAN Mejiro

1,430

1,402

1,550

0.1

PRIME URBAN Kagurazaka

2,900

2,801

3,140

0.3

PRIME URBAN Sangen Jaya III

718

720

631

0.1

PRIME
URBAN
Karasuyama

717

740

754

0.1

PRIME URBAN Sangen Jaya

724

705

772

0.1

PRIME
URBAN
Karasuyama

667

640

759

0.1

Japan Real Estate
InstituteJapan Valuers Co.,
Ltd.
Japan Valuers Co.,Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Japan Valuers Co.,
Ltd.
Japan Real Estate
InstituteJapan Real Estate
Institute
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Japan Valuers Co.,
Ltd.

549

527

574

0.1

Daiwa Real EstateAppraisal Co., Ltd.

338

325

357

0.0

Daiwa Real EstateAppraisal Co., Ltd.

746

721

728

0.1

1,390

1,344

1,540

0.1

494

490

403

0.0

Shinjuku

ChitoseMinami

PRIME URBAN Karasuyama
Galleria
PRIME URBAN Karasuyama
Court
PRIME
URBAN
ChitoseFunabashi
PRIME URBAN Yoga
PRIME URBAN Shinagawa Nishi- 41 -

Japan Valuers Co.,
Ltd.
Japan Real Estate
Institute
Daiwa Real EstateAppraisal Co., Ltd.

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

Use

Area

Acquisition price(Millions of Yen)
(Note 1)

Property name

Investment
share
(%)
(Note 4)

Appraiser

1,860

1,826

1,820

0.2

PRIME URBAN Oimachi II

1,040

1,055

1,100

0.1

PRIME URBAN Yukigaya

951

946

735

0.1

PRIME URBAN Omori

905

867

843

0.1

774

740

720

0.1

Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Japan Valuers Co.,
Ltd.

1,720

1,680

1,780

0.2

Japan Real
Institute

498

474

547

0.1

1,060

1,057

789

0.1

PRIME URBAN Nishi Ogikubo

414

402

422

0.0

PRIME URBAN Nishi Ogikubo II

1,790

1,761

1,870

0.2

PRIME URBAN Otsuka

730

707

775

0.1

PRIME URBAN Komagome

437

435

451

0.0

PRIME URBAN Ikebukuro

3,800

3,670

4,110

0.4

PRIME
Nakacho

2,420

2,340

2,580

0.2

PRIME URBAN Kameido

779

741

757

0.1

PRIME URBAN Sumiyoshi

632

604

607

0.1

PRIME URBAN Mukojima

528

526

540

0.1

PRIME URBAN Kinshi Koen

1,290

1,220

1,220

0.1

PRIME URBAN Kinshicho

758

727

717

0.1

PRIME URBAN Hirai

722

685

691

0.1

PRIME URBAN Kasai

640

610

613

0.1

PRIME URBAN Kasai II

981

934

894

0.1

PRIME URBAN Kasai East

1,140

1,087

1,230

0.1

PRIME
URBAN
Kuyakushomae

1,080

1,030

1,170

0.1

PRIME
URBAN
Kamitakada

NakanoPRIME URBAN Takaido

GreaterTokyo
area

Opinion of value
at end of period(Millions of Yen)
(Note 3)PRIME URBAN Osaki

PRIME URBAN Denenchofu
Minami
PRIME
URBAN
Nagahara
Kamiikedai

Residential

Carrying amount(Millions of Yen)
(Note 2)

URBAN

MonzenItabashi

384

386

299

0.0

PRIME URBAN Machiya South
Court

1,910

1,867

1,940

0.2

PRIME URBAN Musashi Koganei

1,910

1,906

2,010

0.2

PRIME URBAN Musashino Hills

1,280

1,274

1,340

0.1

PRIME URBAN Koganei Honcho

791

765

853

0.1

PRIME URBAN Kumegawa

1,520

1,427

1,480

0.1

PRIME URBAN Musashi Kosugi
comodo

1,940

1,964

2,190

0.2

962

945

1,060

0.1

PRIME URBAN Shinyurigaoka

1,020

977

1,220

0.1

PRIME URBAN Tsurumi Teraya

493

490

397

0.0

PRIME URBAN Urayasu

804

772

764

0.1

PRIME URBAN Gyotoku I

633

612

575

0.1

PRIME URBAN Gyotoku II

730

700

677

0.1

PRIME URBAN Gyotoku Ekimae

488

469

453

0.0

PRIME URBAN Gyotoku Ekimae
II

469

455

495

0.0

PRIME URBAN Asakusa

PRIME URBAN Kawasaki- 42 -

EstateJapan Valuers Co.,Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Japan Real Estate
Institute
Daiwa Real EstateAppraisal Co., Ltd.
Chuo Real EstateAppraisal Co., Ltd.
Japan Real Estate
Institute
Chuo Real EstateAppraisal Co., Ltd.
Chuo Real EstateAppraisal Co., Ltd.
Chuo Real EstateAppraisal Co., Ltd.
Chuo Real EstateAppraisal Co., Ltd.
Chuo Real EstateAppraisal Co., Ltd.
Chuo Real EstateAppraisal Co., Ltd.
Chuo Real EstateAppraisal Co., Ltd.
Chuo Real EstateAppraisal Co., Ltd.
Chuo Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Japan Valuers Co.,Ltd.
Chuo Real EstateAppraisal Co., Ltd.
Japan Real Estate
InstituteJapan Valuers Co.,
Ltd.
Japan Valuers Co.,
Ltd.
Japan Valuers Co.,
Ltd.
Japan Real Estate
InstituteJapan Valuers Co.,
Ltd.
Japan Valuers Co.,
Ltd.
Japan Valuers Co.,
Ltd.
Japan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
Institute

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

Use

Area

GreaterTokyo
area

Resident
ial

Other
areas

Acquisition price(Millions of Yen)
(Note 1)

Property nameCarrying amount(Millions of Yen)
(Note 2)

Opinion of value
at end of period(Millions of Yen)
(Note 3)

Investment
share
(%)
(Note 4)PRIME URBAN Gyotoku III

747

733

792

0.1

PRIME URBAN Nishi Funabashi

761

717

717

0.1

PRIME URBAN Kawaguchi

1,580

1,524

1,710

0.2

PROUD FLAT Hatchobori

920

938

1,040

0.1

PROUD FLAT Itabashi Honcho

720

733

809

0.1

PRIME URBAN Meguro Mita

1,058

1,126

1,110

0.1

Fukasawa House Towers H&I

7,140

7,055

7,400

0.7

PRIME URBAN Toyosu

5,290

5,182

5,390

0.5

PRIME URBAN
Kayabacho

2,850

2,817

2,900

0.3

PRIME URBAN Yoga II

1,320

1,299

1,330

0.1

PRIME URBAN Musashi Koganei
II

1,310

1,277

1,420

0.1

PRIME URBAN Gakugei daigaku
parkfront

1,300

1,391

1,300

0.1

PROUD FLAT Omori Ⅲ

1,110

1,148

1,220

0.1

PROUD FLAT Kinshicho

785

815

896

0.1

PROUD FLAT Sangenjaya II

2,750

2,826

2,860

0.3

PROUD FLAT Sotkanda

2,280

2,376

2,420

0.2

PROUD FLAT Noborito

1,216

1,271

1,290

0.1

PROUD FLAT Yoyogi Hachiman

966

1,002

1,030

0.1

PROUD FLAT Nakaochiai

844

876

890

0.1

PROUD FLAT Itsutsubashi

652

604

711

0.1

PROUD FLAT Kawaramachi

735

677

686

0.1

PROUD FLAT Shin Osaka

1,620

1,507

1,700

0.2

PRIME URBAN Kita Juyo Jo

274

258

267

0.0

PRIME URBAN Odori Koen I

502

472

467

0.0

PRIME URBAN Odori Koen II

334

316

288

0.0

PRIME URBAN Kita Juichi Jo

547

509

602

0.1

PRIME URBAN Miyanosawa

475

437

504

0.0

PRIME URBAN Odori Higashi

394

368

432

0.0

PRIME URBAN Chiji Kokan

249

229

277

0.0

PRIME URBAN Maruyama

229

212

235

0.0

PRIME URBAN Kita Nijuyo Jo

437

405

471

0.0

PRIME URBAN Sapporo Idaimae

616

573

655

0.1

4,480

4,189

4,650

0.4

PRIME URBAN Kita Sanjo Dori

1,730

1,606

1,860

0.2

PRIME
Icchome

1,140

1,074

1,080

0.1

PRIME URBAN Yaotome Chuo

466

433

442

0.0

PRIME URBAN
Amamiya

949

944

926

0.1

PRIME URBAN Aoi

712

684

665

0.1

PRIME URBAN Kanayama

553

516

605

0.1

PRIME
Riverfront

URBAN

URBAN

Nihonbashi

SapporoNagamachi

Tsutsumidori- 43 -

Appraiser
Japan Real Estate
InstituteJapan Real Estate
InstituteJapan Valuers Co.,
Ltd.
Japan Real Estate
InstituteJapan Real Estate
InstituteJapan Valuers Co.,Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
JLL Morii Valuation &Advisory K.K.
JLL Morii Valuation &Advisory K.K.
JLL Morii Valuation &Advisory K.K.
JLL Morii Valuation &Advisory K.K.
JLL Morii Valuation &Advisory K.K.
JLL Morii Valuation &Advisory K.K.
The Tanizawa Sogo
Appraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Japan Real Estate
InstituteJapan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan Real Estate
InstituteJapan Real Estate
InstituteJapan Valuers Co.,
Ltd.
Japan Valuers Co.,
Ltd.
Japan Valuers Co.,
Ltd.
Japan Valuers Co.,
Ltd.
Japan Valuers Co.,
Ltd.
Japan Valuers Co.,
Ltd.
Japan Valuers Co.,
Ltd.
Japan Valuers Co.,
Ltd.
Japan Valuers Co.,
Ltd.
Japan Valuers Co.,
Ltd.
Japan Valuers Co.,
Ltd.
Japan Real Estate
Institute
Chuo Real EstateAppraisal Co., Ltd.
Japan Valuers Co.,Ltd.

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

Use

Resident
ial

Area

Other
areas

Acquisition price(Millions of Yen)
(Note 1)

Property name

Other
areas
Greater
Tokyo
area

946

1,100

0.1

PRIME URBAN Kamimaezu

1,590

1,494

1,670

0.2

PRIME URBAN Izumi

3,770

3,555

4,110

0.4

PRIME URBAN Esaka I

652

619

641

0.1

PRIME URBAN Esaka II

794

752

828

0.1

PRIME URBAN Esaka III

1,190

1,109

1,150

0.1

PRIME URBAN Tamatsukuri

1,020

965

1,050

0.1

PRIME
URBAN
Honmachi

1,810

1,704

1,850

0.2

PRIME URBAN Hakata

588

553

615

0.1

PRIME URBAN Yakuin Minami

265

248

282

0.0

PRIME URBAN Kashii

398

369

342

0.0

PRIME URBAN Hakata Higashi

622

580

527

0.1

PRIME URBAN Chihaya

604

572

565

0.1

PRIME URBAN Chikusa

1,110

1,174

1,120

0.1

192,101

186,897

198,468

19.1

3,600

3,774

3,850

0.4

3,600

3,774

3,850

0.4

4,900

5,136

5,290

0.5

4,900

5,136

5,290

0.5

955,984

947,449

1,041,183

100.0

Sakaisuji

Hotel Vista Sapporo Odori

Ryotokuji
Shin-Urayasu
Campus (Land)

University

Other subtotal
Total(Note 1)

Investment
share
(%)
(Note 4)

1,020

Hotel subtotal
Other

Opinion of value
at end of period(Millions of Yen)
(Note 3)PRIME URBAN Tsurumai

Residential subtotal
Hotel

Carrying amount(Millions of Yen)
(Note 2)

Appraiser
Japan Valuers Co.,
Ltd.
Japan Valuers Co.,
Ltd.
Japan Valuers Co.,Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Japan Valuers Co.,
Ltd.
Japan Valuers Co.,
Ltd.
Japan Real Estate
Institute
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Japan Valuers Co.,
Ltd.
Japan
Ltd.

Valuers

Japan Real
InstituteCo.,

Estate“Acquisition Price” refers to the following. Of the assets succeeded as a result of the merger of three REITs, the appraisal value as of September 30,
2015 for NRE Shibuya Dogenzaka Building and as of April 30, 2015 for other assets succeeded from NOF; and the appraisal value as of September 30,
2015 for PRIME URBAN Shinyurigaoka and as of May 31, 2015 for other assets succeeded from NRF are recorded as said assets’ respective acquisition
prices. Furthermore, the appraisal value as of March 31, 2016 or April 1, 2016 for other assets succeeded from TOP are recorded as said assets’respective acquisition prices. For all other assets, “Acquisition price” indicates the amount, excluding the various expenses required to acquire the property,
including transaction brokerage fees, taxes and public dues, etc. (the amount of transaction payment for real estate, etc., described in the sales agreement).

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

(Note 3)

“Opinion of value at end of period” is the appraisal or investigation value provided by the respective real estate appraiser (the value calculated by therespective real estate appraiser with the date of the 6th fiscal period-end (August 31, 2018) as the effective date of value and the value indicated by the
income approach as a standard) in accordance with NMF’s Articles of Incorporation and the Regulations Concerning Accounting of Investment
Corporations.
The appraisal or investigation value of real estate is no more than an indication of the opinion of the value of the appraised real estate at the time ofappraisal by the respective real estate appraiser, etc., conducted in accordance with the Act on Real Estate Appraisal (Act No. 152 of 1963, including
subsequent amendments), and real estate appraisal standards, etc. Reappraisal of the same real estate may result in a different appraisal or investigation
value, depending on the real estate appraiser conducting the appraisal and the method or timing of the appraisal. In addition, the appraisal of real estate is
not a guarantee or promise of the possibility of transactions at present or in the future at the appraised value.
Furthermore, the cost approach and income approach (direct capitalization approach and discounted cash flow approach) are used in appraisal
calculations. The appraisal value is determined by the income approach if the subject real estate’s price is estimated with an emphasis on investment
profitability in the market and it is seen as an investment target for qualified institutional investors, etc. The value indicated by the cost approach is used as
an index to verify the value indicated by the income approach.
The “direct capitalization approach” is a method where the net revenue in a certain period is capitalized by the capitalization rate. It is a method ofseeking the value indicated by the income approach (a method of seeking the estimated value of real estate by seeking the sum of the present value ofthe net revenue the real estate is expected to generate in the future).
The “discounted cash flow (DCF) approach” is a method where the net income and terminal value arising in multiple successive periods are discounted
to present value according to their periods and totaled. It is also a method of seeking the value indicated by the income approach.

(Note 4)

“Investment share” is the period-end opinion of value of the respective asset as a percentage of the total amount of the period-end opinion of value ofthe entire portfolio (281 properties in total). The figures are rounded to the first decimal place. Accordingly, the sum total may not be exactly 100.0%.

- 44 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

(Note 5)

NMF holds quasi co-ownership of 50.1% of beneficial interest in real estate. For the opinion of value and carrying price in the table above, price of thisquasi co-ownership interest ratio is stated for opinion of value and carrying price.

(Note 6)

NMF holds quasi co-ownership of 50.0% of beneficial interest in real estate. For the opinion of value and carrying price in the table above, price of thisquasi co-ownership interest ratio is stated for opinion of value and carrying price.

(Note 7)The company name was changed to “JLL Morii Valuation & Advisory K.K.” from “Morii Appraisal & Investment Consulting, Inc.” as of April 1, 2018.

(Note 8)Property name was changed as of April 1, 2018 for the following property.

Use
Office(Note 9)New name

Old name(After change)(Before change)

NMF Utsunomiya Building

NOF Utsunomiya Building

NMF’s acquisition of quasi co-ownership of the beneficial interest in the property was made in two stages. The acquisition price given is the total forboth transactions.

- 45 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

C. Status of Major Tenants
Details concerning the leasing status of major tenants are shown below. Major tenants are those who, as ofAugust 31, 2018, account for 10% or more of the total leased area of the assets held by NMF as of August
31, 2018 (in cases where multiple assets have the same tenant, this is calculated using the total leased area for
all assets leased by said tenant).

TenantBusinename(Note 1) ss type

Property namedate

Shinjuku Nomura Building

March 31, 2020

NRE Yotsubashi Building

March 31, 2021

Contract extension-

Leased area

Annual rent(m2)(Millions of Yen)

(Note 1)

(Note 2)

Leasehold andsecurity deposits(Millions of Yen)
(Note 3)

1,021.25

117

93

1,024.91

52

35

March 31, 2019

4,649.80

227

32

PROUD FLAT Shirokane Takanawa

February 28, 2019

2,876.55

183

36

PROUD FLAT Yoyogi Uehara

February 28, 2019

1,151.34

59

6

PROUD FLAT HatsudaiFebruary 28, 2019958.9847

4

PROUD FLAT Shibuya Sakuragaoka February 28, 2019

638.7041

5PROUD FLAT Gakugei Daigaku

February 28, 2019

912.8847

5

PROUD FLAT Meguro Gyoninzaka

February 28, 2019855.23

54

5

PROUD FLAT Sumida Riverside

February 28, 2019

2,984.55

144

13

PROUD FLAT Kagurazaka

February 28, 2019

1,793.43

94

2

PROUD FLAT Waseda

February 28, 2019

1,384.06

67

6

PROUD FLAT Shinjuku Kawadacho February 28, 2019

1,102.20

56

8

PROUD FLAT Sangen Jaya

February 28, 2019

1,256.07

67

6

PROUD FLAT Kamata

February 28, 2019

1,519.89

73

6

PROUD FLAT Kamata II

February 28, 2019

3,952.34

200

21

PROUD FLAT Shinotsuka

February 28, 2019

730.85

38

3

PROUD FLAT Kiyosumi Shirakawa

1,209.56

60

9

PROUD FLAT Yokohama

February 28, 2019 Contract shall be extended for
additional terms of one year
February 28, 2019 unless either party notifies the
February 28, 2019 other party in writing of its
intention to terminate thisFebruary 28, 2019 contract no later than threemonths prior to the expiration
February 28, 2019 of the initial term or any
February 28, 2019 extended term thereof.

PROUD FLAT Kamioooka

February 28, 2019

PROUD FLAT Tsurumi II
PRIME URBAN Azabu Juban

Kojimachi Millennium Garden(Residential building)

NomuraReal
EstateReal
Partners estateCo., Ltd.
（Note 4)Contract termination

PROUD FLAT Monzen Nakacho II(Fixed-term lease contract)(Fixed-term lease contract)-

830.5540

31,169.1063

62,135.03105

13

2,685.39

123

16

3,068.35

140

15

4,872.17

182

15

February 28, 2019

2,198.63

112

20

February 28, 2019

1,196.76

66

6

PRIME URBAN Akasaka

February 28, 2019

1,062.05

56

5

PRIME URBAN Tamachi

February 28, 2019

1,107.36

61

6

PRIME URBAN Shibaura LOFT

February 28, 2019

1,866.56

112

9

PRIME URBAN Yoyogi

February 28, 2019421.7822

2

PRIME URBAN Ebisu II

February 28, 2019

1,109.93

66

5

PRIME URBAN Bancho

February 28, 2019

1,231.04

65

5

PRIME URBAN Chiyoda Fujimi

February 28, 2019793.8742

4PRIME URBAN Iidabashi

February 28, 2019

2,042.78

118

15

PRIME URBAN Ebisu

February 28, 2019

1,444.40

69

6

PRIME URBAN Naka Meguro

February 28, 2019

1,249.2676

8

PRIME URBAN Gakugei Daigaku

February 28, 2019873.0342

3PRIME URBAN Senzoku

February 28, 2019

613.1528

2PRIME URBAN Meguro Riverside

February 28, 2019453.77

28

2

PROUD FLAT Monzen Nakacho I
PROUD FLAT Fujimidai
PROUD FLAT Asakusa Komagata- 46 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

TenantBusinename(Note 1) ss type

Property namePRIME URBAN Meguro Ohashi

Contract termination
date

Contract extension

Leased area

Annual rent(m2)(Millions of Yen)

(Note 1)

(Note 2)

Leasehold andsecurity deposits(Millions of Yen)
(Note 3)February 28, 2019

2,768.83

157

13

February 28, 2019

1,360.83

71

11

PRIME URBAN Gakugei Daigaku II February 28, 2019

1,060.31

58

10

PRIME URBAN Naka Meguro II

February 28, 2019

2,216.38

145

35

PRIME URBAN Kachidoki

February 28, 2019

4,441.55

180

18

February 28, 2019

5,830.92

250

39

February 28, 2019

2,026.44

95

8

Hills
PRIME URBAN Meguro Aobadai

PRIME URBAN Nihonbashi
Yokoyamacho
PRIME URBAN Nihonbashi
Hamacho
PRIME URBAN Hongo Ikizaka

February 28, 2019

637.9832

3PRIME URBAN Hakusan

February 28, 2019

1,031.62

50

4February 28, 2019

1,714.52

88

8

PRIME URBAN Nishi Shinjuku I

February 28, 2019

1,436.2773

6

PRIME URBAN Nishi Shinjuku II

February 28, 2019

1,114.55

53

5

February 28, 2019578.1827

2PRIME URBAN Yotsuya Gaien
Higashi

PRIME URBAN Shinjuku
Naitomachi
PRIME URBAN Nishi Waseda

February 28, 2019

489.1127

1PRIME URBAN Shinjuku Ochiai

February 28, 2019

1,007.45

39

3

PRIME URBAN Mejiro

February 28, 2019

1,680.61

84

5

PRIME URBAN Kagurazaka

February 28, 2019 Contract shall be extended for
February 28, 2019 additional terms of one year
unless either party notifies theother party in writing of its
February 28, 2019 intention to terminate thiscontract no later than three
February 28, 2019 months prior to the expirationof the initial term or any
extended term thereof.
February 28, 2019

2,813.47

165

21

928.7944

31,694.46

48

9

848.6644

41,049.73

47

3

February 28, 2019

810.0037

3PRIME URBAN Karasuyama Court

February 28, 2019551.2023

1

PRIME URBAN Chitose Funabashi

February 28, 2019

1,001.62

45

4

PRIME URBAN Yoga

February 28, 2019

1,746.72

82

9

PRIME URBAN Shinagawa Nishi

February 28, 2019

961.2543

7PRIME URBAN Osaki

February 28, 2019

2,085.32

111

10

PRIME URBAN Oimachi II

February 28, 2019

1,769.69

91

8

PRIME URBAN Yukigaya

February 28, 2019

1,454.35

67

6

PRIME URBAN Omori

February 28, 2019

1,190.70

58

6

February 28, 2019

1,078.41

48

4

February 28, 2019

2,138.30

90

9February 28, 2019798.6336

3PRIME URBAN Takaido

February 28, 2019

1,698.07

79

5

PRIME URBAN Nishi Ogikubo

February 28, 2019

520.7925

2PRIME URBAN Nishi Ogikubo II

February 28, 2019

2,167.84

96

10

PRIME URBAN Otsuka

February 28, 2019924.9146

4PRIME URBAN Komagome

February 28, 2019

991.9435

4PRIME URBAN Sangen Jaya III
NomuraReal
PRIME URBAN Chitose
EstateReal
Partners estate KarasuyamaCo., Ltd.
PRIME URBAN Sangen Jaya
（Note 4)PRIME URBAN Minami
Karasuyama
PRIME URBAN Karasuyama
Galleria

PRIME URBAN Denenchofu
Minami
PRIME URBAN Nagahara
Kamiikedai
PRIME URBAN Nakano
Kamitakada- 47 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

TenantBusinename(Note 1) ss type

Property nameContract termination
date

Contract extension

Leased area

Annual rent(m2)(Millions of Yen)

(Note 1)

(Note 2)

Leasehold andsecurity deposits(Millions of Yen)
(Note 3)PRIME URBAN Ikebukuro

February 28, 2019

4,006.08200

20

PRIME URBAN Monzen Nakacho

February 28, 2019

3,101.28

146

17

PRIME URBAN Kameido

February 28, 2019

1,095.84

49

6

PRIME URBAN Sumiyoshi

February 28, 2019813.5238

4PRIME URBAN Mukojima

February 28, 2019

1,089.14

43

2

PRIME URBAN Kinshi Koen

February 28, 2019

1,886.50

83

8

PRIME URBAN Kinshicho

February 28, 2019

991.6246

7

PRIME URBAN Hirai

February 28, 2019

1,075.27

47

5

PRIME URBAN Kasai

February 28, 2019

905.8140

3PRIME URBAN Kasai II

February 28, 2019

1,395.55

61

6

PRIME URBAN Kasai East

February 28, 2019

1,860.68

74

7

February 28, 2019

1,742.64

74

7

February 28, 2019876.7029

2February 28, 2019

4,141.56

142

34

PRIME URBAN Musashi Koganei

February 28, 2019

5,856.10

134

13

PRIME URBAN Musashino Hills

February 28, 2019

2,919.06

88

18

PRIME URBAN Koganei Honcho

February 28, 2019

1,604.72

57

7

PRIME URBAN Kumegawa

February 28, 20192,532.77

106

35

3,417.58

128

26

1,687.35

68

6

1,677.91

70

11

PRIME URBAN Itabashi
Kuyakushomae
PRIME URBAN Asakusa
PRIME URBAN Machiya South
Court

NomuraPRIME URBAN Musashi Kosugi
RealcomodoEstatePartners Real PRIME URBAN Kawasaki
Co., Ltd. estate
PRIME URBAN Shinyurigaoka（Note 4)

February 28, 2019
February 28, 2019
February 28, 2019

Contract shall be extended for
additional terms of one year
unless either party notifies theother party in writing of its
intention to terminate thiscontract no later than threemonths prior to the expirationof the initial term or any
extended term thereof.

PRIME URBAN Tsurumi Teraya

February 28, 2019

952.0637

3

PRIME URBAN Urayasu

February 28, 2019

1,264.84

55

7

PRIME URBAN Gyotoku I

February 28, 2019

1,129.1042

4

PRIME URBAN Gyotoku II

February 28, 2019

1,244.00

47

3

PRIME URBAN Gyotoku Ekimae

February 28, 2019757.1932

3PRIME URBAN Gyotoku Ekimae II February 28, 2019927.3340

5PRIME URBAN Gyotoku III

February 28, 2019

1,697.69

62

6

PRIME URBAN Nishi Funabashi

February 28, 2019

1,237.80

53

5PRIME URBAN Kawaguchi

February 28, 2019

2,374.96

105

27

PROUD FLAT Hatchobori

February 28, 2019992.74

55

5

PROUD FLAT Itabashi Honcho

February 28, 2019

1,192.0747

5

PRIME URBAN Meguro Mita

February 28, 2019

1,080.47

54

5

February 28, 2019

1,361.92

66

5

PROUD FLAT Omori Ⅲ

February 28, 2019

1,334.70

65

7PRIME URBAN Gakugei Daigaku
Parkfront

PROUD FLAT Kinshicho

February 28, 2019

997.1549

5PROUD FLAT Sangenjaya II

February 29, 2020

2,931.43

129

21

PROUD FLAT Sotkanda

February 29, 2020

2,274.69

129

13

PROUD FLAT Noborito

February 29, 2020

1,749.42

83

8

PROUD FLAT Yoyogi Hachiman

February 29, 2020

972.13

55

5

PROUD FLAT Nakaochiai

February 29, 2020

1,051.51

52

5- 48 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

TenantBusinenamess type(Note 1)

NomuraReal
EstatePartners RealCo., Ltd. estate（Note 4)Contract termination
Property namePRIME URBAN Shinkawa

February 28, 2019PRIME URBAN Toyosu

February 28, 2019PRIME URBAN Nihonbashi
Kayabacho
PRIME URBAN Yoga II

February 28, 2019
February 28, 2019PRIME URBAN Musashi Koganei II February 28, 2019
Total
(Note 1)

Contract extension

dateLeased area

Annual rent(m2)(Millions of Yen)

(Note 1)

(Note 2)

Leasehold andsecurity deposits(Millions of Yen)
(Note 3)Contract shall be extended for
additional terms of one year
unless either party notifies theother party in writing of its
intention to terminate thiscontract no later than six
months prior to the expirationof the initial term or any
extended term thereof.

3,475.87

133

40

6,707.59329

36

3,444.23

176

20

1,463.0871

62,010.1783

9-210,369.77

9,867

1,325

-

In the case of assets with a so-called pass-through master lease agreement, where the rent received from the lessee in the master lease agreement is thesame amount as the rent that the lessee receives from the end-tenant, the end-tenant is shown as the tenant, and the lessee is not shown as a tenant.
However, for residential facilities, the master lessee is shown as the tenant, and the leased area shown is that that actually rented and subject to thetenant agreements with end tenants.

(Note 2)

“Annual rent” is calculated by multiplying by 12 the sum of monthly rent and common area charges in lease agreements for each property actuallyconcluded with end-tenants that are valid as of the last day of August 2018 (this does not include parking space or other fees stated in parking spacelease agreements or other such agreements signed in addition to the tenant lease agreement. If common-use space, etc. is leased based on the leaseagreement, the rent for such is included, and if rent includes an amount equivalent to the fee for use of parking space, such amount is included. In
addition, if the master lessee has a rent-guaranteed master lease, the rent for the space covered in said lease is based on the rent, etc., in the leaseagreement concluded with the master lessee.); amounts less than one thousand yen are truncated. Accordingly, the sum of each tenant’s annual rent
may not be exactly the same as the figure given the “Total” row. Furthermore, regarding tenants who have been exempt from rent payment for acertain period of time in their agreements, such exemption period is not considered in the table above.

(Note 3)For residential facilities, the lessee of the master lease agreement shown in the “Tenant name” column receives leasehold and security deposits fromthe end-tenants and deposits this amount with NMF or the trustee as the leasehold and security deposits of the master lease agreement.

(Note 4)This client is an interested party of NMF as specified in the Investment Trust Act.

D. Status of Major Properties
Not applicable.
E. Overview of Leasing to Interested Parties
As of August 31, 2018, some of the assets held by NMF at the same date were leased to interested parties
as defined in the Investment Trust Act.
The following is an overview of the status of leasing of said assets to interested parties as defined in theInvestment Trust Act.
Tenant name

Property name

Nomura Real Estate Partners
Co., Ltd.

Shinjuku Nomura Building
NRE Yotsubashi Building
Total of PROUD FLAT Shirogane-Takanawa,
and 120 others
Shinjuku Nomura Building
NMF Yokohama Nishiguchi Building
NRE Yotsubashi Building

Nomura Real Estate
Development Co., Ltd

Nomura Real Estate Life &Megalos Kanagawa
Sports Co.,Ltd.
Nomura Real Estate Urban Net
Shinjuku Nomura Building
Co., Ltd.
NMF Gotanda Ekimae Building
NMF Kichijoji Honcho Building
NMF Kawasaki Higashiguchi Building
NMF Yokohama Nishiguchi Building
NRE Nishi-Umeda Building
Geo Akamatsu Co., Ltd.
NRE Yotsubashi Building
Nomura Real Estate Amenity
NRE Yotsubashi Building
Service Co., Ltd.

- 49 -

Leased area(m2)
1,021.25
1,024.91
208,323.61
6,609.14
94.83
1,369.84
6,217.85
1,740.51
198.90269.37216.54373.27404.41357.0680.01

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 6th Fiscal Period Ended August 31, 2018

F. Collateral
Assets held by NMF and offered as collateral at the end of the 6th period under review are as follows.

Property Name

Type ofcollateral

Konami Sports Club Fuchu
Sagamihara Shopping Center

Mortgage
Mortgage

Secured party
Konami Sports Club Co., Ltd. (Note)
Ito-Yokado Co., Ltd. (Note)(Note) The secured claims are rights held by the security interest holders to claim the return of leasehold deposits.

- 50 -

Recent appraisal
value(Millions of Yen)
3,350
6,920