(Reference) SUMMARY OF FINANCIAL RESULTS (REIT)
For the 15th Fiscal Period Ended February 28, 2023
April 18, 2023
REIT securities issuer:

Nomura Real Estate Master Fund, Inc. (“NMF”)

Stock exchange listing:

Securities code:
Representative:

3462
Shuhei Yoshida, Executive Director

URL:

Tokyo Stock Exchange

https://www.nre-mf.co.jp/en/

Asset Management Company: Nomura Real Estate Asset Management Co., Ltd.
Representative:
Koki Miura, President and Chief Executive Officer
Inquiries:

Hiroyuki Masuko, Head of NMF Investment Management Group

Scheduled date of filing of securities report:

May 29, 2023

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

May 22, 2023
Yes
Yes

TEL: +81-3-3365-8767[Amounts less than one million yen are truncated]

1.

Financial Results for the 15th Fiscal Period (from September 1, 2022 to February 28, 2023)(1) Operating Results[figures are the rate of increase (decrease) compared with the previous period]

Operating revenues
Period ended
February 28, 2023
August 31, 2022

million yen
39,98639,022%2.5
4.0

Net income
per unit
Period ended
February 28, 2023
August 31, 2022

Operating profit
million yen
16,113
15,584

Ordinary income
%
3.4
6.8

Return on unitholders’equityyen

million yen
13,95013,392

million yen
13,94813,499%Ratio ofordinary income
to operating revenues
%
34.9
34.3

Ratio ofordinary income
to total assets

%

2,958
2,862

Net income
%
4.2
8.2

2.3
2.2

1.2
1.1

%
3.3
9.1

(2) Distributions
Distribution
per unit(excluding
distribution
in excess of
net income)

Period ended
February 28, 2023
August 31, 2022

Total
distributions(excluding
distribution
in excess of
net income)yen million yen
2,958
13,9472,863
13,499Distribution
in excess of
net income per
unit

Total
distributions
in excess of
net income

yen million yen
354
1,669
437
2,060

Distribution
per unit(including
distribution inexcess of net
income)Total
distributions(including
distribution
in excess of
net income)yen million yen
3,312
15,6163,300
15,560Distribution
payout ratio

Ratio ofdistributions
to net assets

%
99.9
100.0

%
2.2
2.1

(Note 1) Of the ¥437 distribution in excess of net income per unit in the fiscal period ended August 31, 2022, ¥403 is a distribution of the allowance for temporary
difference adjustments and ¥34 is other distributions in excess of net income. Furthermore, the ratio of decreasing surplus is 0.001.
Of the ¥354 distribution in excess of net income per unit in the fiscal period ended February 28, 2023, ¥330 is a distribution of the allowance fortemporary difference adjustments and ¥24 is other distributions in excess of net income. Furthermore, the ratio of decreasing surplus is 0.001.
(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
Total assets
Period ended
February 28, 2023
August 31, 2022

million yen
1,185,099
1,187,581

Net assets
million yen
613,540
615,128

Net assets to total assets

Net assets per unit

%
51.8
51.8

yen
130,119
130,456

(4) Status of Cash Flows

Period ended
February 28, 2023
August 31, 2022

Net cashprovided by (used in)operating activities
million yen
27,63828,128Net cashprovided by (used in)investing activities
million yen(3,836)(17,889)

Net cashprovided by (used in)financing activities
million yen(15,599)(15,584)

Cash andcash equivalents
at end of period
million yen
53,09444,892

2. Earnings Forecasts for the 16th Fiscal Period (from March 1, 2023 to August 31, 2023) and the 17th Fiscal
Period (from September 1, 2023 to February 29, 2024)[figures are the ratio of increase (decrease) compared with the previous period]

Operatingrevenues

Operating profit Ordinary income

Net income

million yen% mllion yen% million yen% million yen%
Period ending
10.1
18.1
20.5
20.7
August 31, 2023
44,042
19,027
16,812
16,829February 29, 2024
39,112 △11.2
14,659 △23.0
12,423 △26.1
12,422 △26.2(Reference) Forecasted net income per unit
For the fiscal period ending August 31, 2023: ¥3,569
For the fiscal period ending February 29, 2024: ¥2,634

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

yen

yen

yen

3,402
2,795

0
556

3,402
3,351

*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:

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

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 February 28, 2023:
4,715,200 units
As of August 31, 2022:
4,715,200 units② Number of treasury investment units
As of February 28, 2023:– units
As of August 31, 2022:– 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 39.
* This summary of financial results is not subject to audit procedures by a certified public accountant or an audit
firm.
* 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 on
the assumptions underlying forward-looking statements and the use of such statements, please refer to“Assumptions Underlying Earnings Forecasts for the Fiscal Period Ending August 31, 2023 (16th fiscal
period: March 1, 2023 to August 31 2023) and the Fiscal Period Ending February 29, 2024 (17th fiscal
period: September 1, 2023 to February 29 2024) ” on page 12.
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.

Attachment

Table of Contents
1.

Management Status …………………………………………………………………………………………
(1) Management Status…………………………………………………………………………………………

2.

Financial Statements………………………………………………………………………………………… 15(1) Balance Sheet ……………………………………………………………………………………………… 1522(2) Statement of Income and Retained Earnings ……………………………………………………………… 18(3) Statement of Changes in Net Assets ……………………………………………………………………… 20(4) Statement of Cash Distributions …………………………………………………………………………… 24(5) Statement of Cash Flows…………………………………………………………………………………… 26(6) Notes Concerning the Going Concern Assumption ……………………………………………………… 27(7) Notes Concerning Significant Accounting Policies ……………………………………………………… 27(8) Notes to Financial Statements……………………………………………………………………………… 30(9) Increase (Decrease) in Total Number of Investment Units Issued and Outstanding …………………… 42
3. Reference Information ………………………………………………………………………………………… 44(1) Investment Status ………………………………………………………………………………………… 44(2) Investment Assets ………………………………………………………………………………………… 45

- 1 -

1.

Management Status(1) 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)), specificallyreal estate, leaseholds of real estate, surface rights, and the beneficial interests of trusts formed by
entrustment of only these assets, to secure stable income over the medium to long term and steady growth(Note)of assets under management. 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
three major metropolitan areas and other major cities. By combining the “diversified type strategy” whichenables sustainable growth by investing in a variety of facilities, such as offices, retail facilities, logistics
facilities, residential facilities and other facilities, the “large-scale REIT strategy” which increases
portfolio stability through property and tenant diversification, the “portfolio centered on the Greater
Tokyo area” which is expected to improve cash flow stability through investment area diversification, anda strong property supply and operation support system based on the “leasing value chain” with theSponsor, Nomura Real Estate Development Co., Ltd. which is one of the group company of the Nomura
Real Estate Group (Nomura Real Estate Holdings, Inc. and its consolidated subsidiaries etc. The same
shall apply hereinafter.), NMF aims to increase unitholder value by securing stable income over the
medium to long term and the steady growth of assets under management.
(Note)

A.

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 “real estate backed securities” refers to assets defined in Article 29, Paragraph 1 (3) of
NMF’s Articles of Incorporation (“Real estate, etc.” and “real estate-backed securities” are hereinaftercollectively referred to as “real estate-related assets”). Real estate and the underlying real estate of real estaterelated assets are together referred to as the “real estate under management” or “properties.”

Investment Environment(Japanese Economy)
The Japanese economy during the fiscal period under review was gradually picking up with thefading impact of COVID-19 and a recovery in consumer spending, but uncertainty still remains such asconcerns about recession due to the global price hike and monetary tightening.
(Real Estate Leasing Market)
As was the case in the previous fiscal period, the situation in the real estate leasing market during the
fiscal period under review varied according to the sector.
Although the office sector had seen a rising vacancy rate in Tokyo since the second half of 2020 as
office demand decreased due to concerns about recession and expansion of remote work associatedwith COVID-19, this rise is easing off, backed by the rise in the number of employees. Meanwhile,
advertised rents continued to decline due to the continued high vacancy rate. Since regional cities havelower remote work rates than Tokyo, those with low office supply are seeing vacancy rates fall,stabilizing advertised rent overall.
In the retail facility sector, business continued to be robust at retailers like supermarkets that provide
daily necessities, but recovery in restaurant sales varied by area due to changes in people’s behavior.
In the logistics sector, demand from providers of third-party logistics (3PL) (Note), NMF’s main
logistics tenants, and e-commerce-related operators continues to be strong. In the Greater Tokyo area,
the vacancy rate is rising due to a large supply of logistics facilities despite strong demand. Meanwhile,
the vacancy rate in the Kinki area remains low due to low supply.
(Note) Third-party logistics (3PL) refers to logistics services outsourced by shippers for part or all of
their logistics functions.
In the rental apartment sector, there had been a net outflow of people in Tokyo since July 2020 as
more people moved out due to expansion of remote work and fewer people moved in due to changes in- 2 -employment conditions, but since 2022, the impact of COVID-19 has lessened and a net inflow
returned, bolstering the occupancy rate as of late, with rents on a recovery trend . Regional cities arealso showing generally strong occupancy rates.
The hotel sector is showing a rapid recovery in the occupancy rate and RevPAR (Revenue Per
Available Room), backed by the increased number of domestic tourists due to the Japan National
Travel Support Campaign promoting tourism and the recovery in the number of tourists from othercountries resulting from eased restrictions on entry into Japan.
(Real Estate Transaction Market)
The trading volume of commercial real estate in fiscal year 2022 declined year on year due to lessacquisition by J-REITs. Meanwhile, real estate prices continue to be on the rise, in particular for
housing and logistics facilities.
(J-REIT Market)
The TSE REIT Index lacked buoyancy in 2022 due to U.S. interest rate hikes. It has been weakreflecting the BOJ ’s decision to expand the range of long-term interest rate fluctuations in December
2022, falling from 2,033.71 points as of August 31, 2022, and to 1,843.21 points as of February 28,
2023.
B.

Management Performance
Under the circumstances described above in A. Investment Environment, during the fiscal period underreview (15th fiscal period) NMF acquired 1 property (PROUD FLAT Nezu Yanaka) and disposed of 9
properties (NRE Higashi-nihonbashi Building (quasi co-ownership of 50%), PRIME URBAN Takaido,
PRIME URBAN Mukojima, PRIME URBAN Nishi Funabashi, PRIME URBAN Aoi, PRIME URBAN
Tsurumai, PRIME URBAN Chiji Kokan, PRIME URBAN Maruyama and PRIME URBAN Kita NijuyoJo). As a result, at the end of the fiscal period under review (as of February 28, 2023), NMF held 293
properties (total acquisition price: ¥1,086,378 million), the ratio of investment in the Greater Tokyo area2
was 84.0%, the gross leasable area of the portfolio was 2,161,003.03m , and the portfolio remained
highly diversified.
In terms of property and facility management, as described above in A. Investment Environment, theimpact of COVID-19 varies according to sector. In the rental apartment and retail sectors, the occupancy
rate and restaurant sales were on an upward trend, but the recovery varied by area. The office sector
continued to see a rise in the vacancy rate and a decline in advertised rents in the market as a whole. In
the meantime, NMF continued to manage the portfolio with an eye to securing stable revenues throughappropriate and flexible leasing activities based on market trends. As a result, the occupancy rate of thewhole portfolio was 98.7% at the end of the fiscal period under review, unchanged from the end of theprevious fiscal period.
In February 2019, NMF set ESG materiality issues that are of high importance to be addressed by NMF
in order to contribute to the realization of a sustainable society by resolving social issues through its
business activities. Based on the policies, targets and key performance indicators (KPI) set for eachmateriality, NMF engages in investment in environmentally friendly properties while working to enhancethe efficiency of its energy use by, for example, introducing eco-friendly and energy-saving
countermeasures at its properties, striving for building a portfolio with low environmental impact. NMF(Note1)
promotes acquisition of Green certification
under such policy.
Furthermore, as of the end of the fiscal period under review, the progress toward the newly established
KPI, “Achieving 70 of green certification with three stars or more or equivalent up to fiscal year 2030”,(Note2)reached at 58.8.
In addition, based on the recommendations of the Task Force on Climate-related Financial Disclosure(“TCFD”) for which Nomura Real Estate Asset Management Co., Ltd. ("NREAM"), the asset
management company to which NMF entrusts management of its assets, expressed its support on July 14,
2020, NMF summarized policies and initiatives of NMF and NREAM according to the four disclosure
items recommended by the TCFD—Governance, Strategy, Risk Management, and Metrics and Targets—and disclosed them on NMF’s official website on February, 2021. Note that in analyzing and verifying
the financial impact in Strategy, NMF first assessed the risks and opportunities that climate change risks
bring to NMF Then, based on future climate forecasts published by various international organizations- 3 -such as die International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change(IPCC) as the main information sources, three possible scenarios—the 4℃, 2℃, and 1.5℃ Scenarios—
were set as assumptions in conducting scenario analysis, and financial impacts were analyzed and verified
for each of the risks and opportunities identified. Furthermore, NMF is actively promoting measures toachieve carbon neutrality based on the 2050 Carbon Neutrality Declaration announced in October 2022.
NMF’s policy is to promote initiatives aimed at helping the shift to a low-carbon society and expanding
NMF’s revenue opportunities through greenhouse gas emissions reduction and other efforts, while
adequately managing physical and transition risks associated with climate change.
(Note 1) Green certification refers to either DBJ Green Building Certification, BELS Certification, or CASBEE for Real Estate.
(Note 2) The percentage of properties which certified either DBJ Green Building Certification (three stars or more), BELS Certification (threestars or more), or CASBEE for Real Estate (B+ or higher) are calculated based on total floor areas subject to properties excluding
land owned by NMF.

C.

Status of Fund Procurement
During the fiscal period under review, NMF refinanced ¥33,550 million in interest-bearing liabilities
with maturities.
As a result, the balance of interest-bearing liabilities at the end of the fiscal period under review was¥517,420 million, and the ratio of interest-bearing liabilities to total assets (LTV) was 43.7%.
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 requestof NMF.
Credit rating agency

D.

Rating description

Note

Japan Credit Rating Agency, Ltd. (JCR) Long-term issuer rating:AA

Rating outlook:

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

AA－

Rating outlook:

StableIssuer rating:Business Performance and Distributions
In the 15th fiscal period, operating revenues totaled ¥ 39,986 million, operating profit reached ¥ 16,113
million, ordinary income totaled ¥13,950 million, and net income came to ¥ 13,948 million.
NMF calculates cash distributions in accordance with the cash distribution policies specified in Article
36, Paragraph 1 and Paragraph 2 of NMF’s Articles of Incorporation.
For the fiscal period under review, NMF decided to implement a total of ¥15,616 millon in
distributions (¥3,312 per investment unit). This figure was arrived at by ¥13,948 millon in net income
after taxes and ¥2,622 millon in amortization of goodwill and subtracting ¥954 millon, the total of a
portion of gains on sale of real estate.
Total distributions comprise distribution of earnings and distribution in excess of net income.
Distribution of earnings as stipulated in Article 136, Paragraph 1 of the Act on Investment Trusts andInvestment Corporations (Act No. 198 of 1951 as amended, hereinafter the Investment Trust Act) cameto ¥13,947 million (¥2,958 per investment unit). Distribution in excess of net income comprises a
distribution of ¥1,556 million (¥330 per investment unit) as allowance for temporary difference
adjustment and ¥113 million (¥24 per investment unit) in other distribution in excess of net earnings.

②

Outlook for Next Fiscal Period
Under the conditions described above in ① Outline of Fiscal Period under Review /A. Investment
Environment, NMF will continue to target external growth through property acquisition pipelines byleveraging the Nomura Real Estate Group's property development capabilities and internal growth bymaking 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 thegrowth of distribution and increase further unitholder value.

③

Forecasts of the Financial Results
Forecasts of the Financial Results for the fiscal period ending August 31, 2023 (16th fiscal period:
March 1, 2023 to August 31, 2023) and the fiscal period ending February 29, 2024 (17th fiscal period:
September 1, 2023 to February 29, 2024) are stated below. Assumptions for forecasts of the financial- 4 -results are referred to the following “Assumptions Underlying Earnings Forecasts for the Fiscal PeriodEnding August 31, 2023 (16th fiscal period: March 1, 2023 to August 31, 2023) and the Fiscal PeriodEnding February 29, 2024 (17th fiscal period: September 1, 2023 to February 29, 2024)”.

Operating Revenues
Operating Profit
Ordinary Income
Net Income
Net Income Per Unit
Distribution Per Unit
(Excluding Distribution in Excess of Net Income)Distribution in Excess of Net Income Per Unit
Total Distributions Per Unit
(Including Distribution in Excess of Net Income)- 5 -16th fiscal period ending 17th fiscal period ending
August 31, 2023
February 29, 2024
¥ 44,042 million¥ 39,112 million¥ 19,027 million¥ 14,659 million¥ 16,812 million¥ 12,423 million¥ 16,829 million¥ 12,422 million¥ 3,569¥ 2,634¥ 3,402¥ 2,795¥0¥ 556¥ 3,402¥ 3,351

④

Significant Subsequent Events
A. Transfer of the asset(a)NMF sold the following asset after the conclusion of the 15th fiscal period (February 28, 2023).
Impact on
16th fiscal
Transfer
Type ofContract Transfer
periodProperty Name
Use
Buyer
price
asset
date
date
earnings(¥ million)(Scheduled)(¥ million)
NRE HigashiDomesti
Trustnihonbashi
c general
beneficial
Offi March 8, March
Building (Quasi interest in
business
2,260
350
ce
2022
15, 2023
co-ownership ofcompantrust of50%)yreal estate
PRIME
URBAN
Yoyogi (Note1)
PRIME
URBAN Nishi
Shinjuku
II(Note 1)Real
estatePRIME
URBAN
Sangen Jaya III(Note 1)
PRIME
URBAN
ShinagawaDomesti
Nishi (Note 1)
c special
Resi
6,283
1,550
March
March
purpose
Trust
dent(Note 2)
(Note 2)22, 2023 31, 2023
companPRIME
beneficial
ial
y
URBAN
interest in
Komagometrust ofreal estate
PRIME
URBAN Kasai
II (Note 1)
PRIME
URBAN
Asakusa
Real(Note 1)
estatePRIME
URBAN
GyotokuEkimae (Note1)
Trust
Domesti
NMF Nagoya beneficial
c special
Offi
March
April 7,
Yanagibashi
interest in
purpose
4,410
1,695
ce
20, 2023
2023
Building
trust ofcompanreal estatey(Note 1) At the end of the 15th fiscal period, the asset to be transferred was real estate, but on- 6 -March 31, 2023, a trust agreement was concluded and it has become a trust beneficial
interest in trust of real estate.
(Note 2) Of the assets to be disposed of, the dispositions of PRIME URBAN Yoyogi, PRIMEURBAN Nishi Shinjuku II, PRIME URBAN Sangen Jaya III, PRIME URBAN Shinagawa
Nishi, PRIME URBAN Komagome, PRIME URBAN Kasai II, PRIME URBAN Asakusa,
and PRIME URBAN Gyotoku Ekimae are based on a single sale agreement with the sametransferee. The transfer prices of individual properties are undisclosed, as consent has notbeen obtained from the transferee. Accordingly, Impact on 16th fiscal period earnings ofindividual properties are also undisclosed.
(b) NMF is going to sell the following asset after the conclusion of the 15th fiscal period (February
28, 2023).
Impact on
Contract Transfer
Transfer
16th fiscal
Buyer
Type of
date
date
price
periodProperty name
Use
(Schedasse(Schedule (Schedul(Schedulearnings
uled)
d)
ed)
ed)
(Scheduled)(¥ million)
NMF TenjinTrustTokyo
Minamibeneficial
March 17, May 31, Tatemo
Building
interest in Office
3,040
997
2023
2023
no Co.,
trust ofLtd.
real estate
PRIME
Tokyo
URBAN
TatemoOtsukano
Real
Reside March 17, May 31,
Real
772
96
estate
ntial
2023
2023
Estate
Sales
Co.,
Ltd.
The impact of (a) and (b), above, on earnings for 16th fiscal period (March 1, 2023 to August 31,2023) will be recorded as gain on sales of real estate under operating revenues.
(Reference)
A. Property acquisition(a) NMF decided to acquire the assets referred to below on February 28, 2023 and completed theacquisition on March 24, 2023 and April 3, 2023.
Property nameLandport Shinonome / Yasuda Soko (Quasi co-ownership of 51%)

Type of asset

Trust beneficial interest in trust of real estate(Note 1)

（Registry）
2-19-3 Shinonome, Koto Ward, Tokyo（Street）
2-13-35 Shinonome, Koto Ward, Tokyo(Note 1)

Four-floor steel-reinforced alloy-plated steel sheet structure(Note 1)

10,863.95㎡(Note 1)

22,088.79㎡

Location

Structure

Land area

Floor area

Type of ownership(Note 1)

Completion date

（Land）Ownership (51%)（Building）Ownership (51%)
May 8, 2020
- 7 -Acquisition price(Note 2)

¥5,750 million

Date of agreement

February 28, 2023

Date of acquisition

March 24, 2023

Seller

Nomura Real Estate Development, Co., Ltd.

Property name

PROUDFLAT Kikukawa

Type of asset

Real estate(Note 1)

（Registry）
4-10-6 Tatekawa, Sumida Ward, Tokyo（Street）
4-5-10 Tatekawa, Sumida Ward, Tokyo(Note 1)Seven-floor steel reinforced concrete structure with flat roof

(Note 1)894.38㎡(Note 1)

3,047.97㎡

Location

Structure

Land area

Floor area

Type of ownership（Land）Ownership（Building）Ownership(Note 1)

October 22, 2020

(Note 2)

¥2,720 million

Completion date

Acquisition priceDate of agreement

February 28, 2023

Date of acquisition

April 3, 2023

Seller

Nomura Real Estate Development, Co., Ltd.

Property name

PROUDFLAT Asakusa

Type of asset

Real estate(Note 1)

（Registry）
6-305-1 Asakusa, Taito Ward, Tokyo（Street）
6-18-9 Asakusa, Taito Ward, Tokyo(Note 1)

Nine-floor steel reinforced concrete structure with flat roof

(Note 1)574.97㎡(Note 1)2,926.70㎡

Location

Structure(Note 3)

Land area

Floor area

Type of ownership（Land）Ownership（Building）Ownership(Note 1)

July 21, 2020

(Note 2)

¥2,410 million

Completion date

Acquisition priceDate of agreement

February 28, 2023

Date of acquisition

April 3, 2023

Seller

Nomura Real Estate Development, Co., Ltd.

Property name

PROUDFLAT Kinshicho II

Type of asset

Real estate- 8 -(Note 1)（Registry）
4-6-5 Midori, Sumida Ward, Tokyo（Street）
4-10-11 Midori, Sumida Ward, Tokyo(Note 1)

Nine-floor steel reinforced concrete structure with flat roof

(Note 1)484.05㎡(Note 1)2,334.95㎡

Location

Structure

Land area

Floor area

Type of ownership（Land）Ownership（Building）Ownership(Note 1)January 9, 2020

(Note 2)

¥2,030 million

Completion date

Acquisition priceDate of agreement

February 28, 2023

Date of acquisition

April 3, 2023

Seller

Nomura Real Estate Development, Co., Ltd.

Property name

MEFULL Chayamachi

Type of asset

Real estate(Note 1)

（Registry）
32-4 Chayamachi, Kita Ward, Osaka City, Osaka（Street）
5-8 Chayamachi, Kita Ward, Osaka City, Osaka(Note 1)

Eight-floor steel reinforced concrete structure with flat roof and 1
basement floor(Note 1)330.61㎡(Note 1)

1,569.73㎡

Location

Structure

Land area

Floor area

Type of ownership（Land）Ownership（Building）Ownership(Note 1)March 16, 2020

(Note 2)

¥3,735 million

Completion date

Acquisition priceDate of agreement

February 28, 2023

Date of acquisition

April 3, 2023

Seller
Nomura Real Estate Development, Co., Ltd.
(Note 1) Location (excluding Street), Structure, Land Area, Floor area and Completion Date are basedon the information in the real estate registry.
(Note 2) The acquisition price indicates the amount, excluding the various expenses required to acquire
the property such as taxes and public dues, etc. (the amount of the transaction payment
described in the real estate sale agreement).
(Note 3) Under Article 42, Paragraph 2 of the Building Standards Act, the land includes the area of
about 34.6 ㎡ (a private road), which is regarded as a road.

(b) NMF decided to acquire the assets referred to below on March 14, 2023.
Property name

SOMPO CARE La vie Re Residence Yoga

Type of asset

Real estate- 9 -(Note 1)（Registry）
3-612 Yoga, Setagaya Ward, Tokyo（Street）
3-6-3 Yoga, Setagaya Ward, Tokyo(Note 1)

Six-floor steel reinforced concrete structure with flat roof

(Note 1)

3,525.88㎡(Note 1)8,380.68㎡

Location

Structure

Land area

Floor area

(Note 3)

Type of ownership（Land）Leasehold（Building）Ownership(Note 1)March 9, 2017

(Note 2)¥2,850 million

Completion date

Acquisition priceDate of agreement

March 17, 2023

Date of acquisition

May 31, 2023

SellerDomestic general business company

Property name

Grapes Tsujido Nishi-Kaigan

Type of asset

Trust beneficial interest in trust of real estate(Note 1)

（Registry）
2-7181-38 (and one other parcel of land) Tsujido-Nishikaigan,
Fujisawa City, Kanagawa（Street）
2-12-2 Tsujido-Nishikaigan, Fujisawa City, Kanagawa(Note 1)Five-floor steel reinforced concrete structure with flat roof

(Note 1)

4,222.05㎡(Note 1)8,140.58㎡

Location

Structure

Land area

Floor area

(Note 4)

Type of ownership（Land）Leasehold（Building）Ownership(Note 1)

July 15, 2016

(Note 2)

¥1,820 million

Completion date

Acquisition priceDate of agreement

March 17, 2023

Date of acquisition

May 31, 2023

SellerDomestic general business company

Property name

SOMPO CARE Sompo no ie Omori-Nishi

Type of asset

Trust beneficial interest in trust of real estate(Note 1)

（Registry）
7-99-1 Omori-Nishi, Ota Ward, Tokyo（Street）
7-6-30 Omori-Nishi, Ota Ward, Tokyo(Note 1)Five-floor reinforced concrete structure with a flat roof and 1
basement floor(Note 1)801.98㎡(Note 1)

2,293.27㎡

Location

Structure

Land area

Floor area

- 10 -

Type of ownership（Land）Ownership（Building）Ownership(Note 1)

November 19, 2014

(Note 2)

¥1,462 million

Completion date

Acquisition priceDate of agreement

March 17, 2023

Date of acquisition

May 31, 2023

SellerDomestic general business company

Property name

SOMPO CARE La vie Re Residence Shonan Tsujido

Type of asset

Real estate(Note 1)

（Registry）
5001 Akamatsu-cho, Chigasaki City, Kanagawa（Street）
13-16 Akamatsu-cho, Chigasaki City, Kanagawa(Note 1)

Six-floor steel reinforced concrete structure with flat roof

(Note 1)2,000.56㎡(Note 1)

4,121.51㎡

Location

Structure

Land area

Floor area

(Note 5)

Type of ownership
Completion date

（Land）Leasehold（Building）Ownership(Note 1)

July 3, 2017

(Note 2)

¥1,150 million

Acquisition priceDate of agreement

March 17, 2023

Date of acquisition

May 31, 2023

SellerDomestic general business company(Note 1) Location (excluding Street), Structure, Land Area, Floor area and Completion Date are basedon the information in the real estate registry.
(Note 2) The acquisition price indicates the amount, excluding the various expenses required to acquire
the property such as taxes and public dues, etc. (the amount of the transaction payment
described in the real estate sale agreement).
(Note 3) Land leasehold contract
Lessor: Tokyo Prefecture
Type of leasehold: Ordinary fixed-term land leasehold
Leasehold period: From June 1, 2015 to May 31, 2065
(Note 4) Land leasehold contract
Lessor: Undisclosed (Undisclosed as consent has not been obtained from the lessor.)
Type of leasehold:Ordinary fixed-term land leasehold
Leasehold period: From April 30, 2015 to April 30, 2065
(Note 5) Land leasehold contract
Lessor:Individual
Type of leasehold:Ordinary land leasehold rightLeasehold period: From June 1, 2016 to May 31, 2046

- 11 -

Assumptions Underlying Earnings Forecaststhfor the Fiscal Period Ending August 31, 2023 (16 fiscal period: March 1, 2023 to August 31, 2023) and the FiscalthPeriod Ending February 29, 2024 (17 fiscal period: September 1, 2023 to February 29, 2024)
Item

Assumptions
・Calculation period・・

Assets Under
Management
・・・Operating revenues
・・Operating expenses(excluding amortization
expenses for goodwill)・th

Fiscal period ending August 31, 2023 (16 fiscal period): March 1, 2023 toAugust 31, 2023th
Fiscal period ending February 29, 2024 (17 fiscal period): September 1, 2023 to
February 29, 2024
In addition to properties held by the Fund as of the date hereof (288 properties)(the “Acquired Assets”), it is assumed that SOMPO CARE La vie Re Residence
Yoga, Grapes Tsujido Nishi-Kaigan, SOMPO CARE Sompo no ie Omori-Nishi,
and SOMPO CARE La vie Re Residence Shonan Tsujido which are the 4
properties to be acquired as announced in the “Notice Concerning Acquisition and
Disposition of Domestic Real Estate and Trust Beneficial Interests in Domestic
Real estate” dated March 14, 2023, will be acquired on May 31, 2023 (those 4
properties are hereinafter collectively referred to as the “Assets to be Acquired”),
and it is also assumed that NMF Tenjin-Minami Building and PRIME URBAN
Otsuka, which are the 2 properties to be disposed of announced in the “NoticeConcerning Acquisition and Disposition of Domestic Real Estate” dated March
14, 2023, will be disposed of on May 31, 2023 (those 2 properties are hereinaftercollectively referred to as the “Assets to be Disposed of”).
The forecasts are based on the assumption that (a) the Assets to be Acquired arerespectively acquired on the above-mentioned dates, (b) the Assets to be Disposedof are respectively disposed of on the above-mentioned dates, and that (c) there
will be no other changes in assets under management (such as new property
acquisitions and sales of portfolio properties) through the end of the Fiscal PeriodEnding February 29, 2024 (17th Fiscal Period).
The forecasts may be affected due to actual changes in the portfolio or otherreasons.
Rental revenues are estimated based tenant trends, the presence of competing
properties nearby, real estate market conditions and other factors, with theassumption that there will be no delays in payment or failure to pay on the part oftenants.
Real estate rental expenses are expected to be ¥17,900 million in the August 31,thth2023 (16 ) fiscal period and ¥17,729 million in the February 29, 2024 (17 ) fiscal
period.
Regarding property and other taxes, it is estimated that ¥3,339 million in thethAugust 31, 2023 (16 ) fiscal period and ¥3,326 million in the February 29, 2024th(17 ) fiscal period will be recorded as real estate rental expenses. In general, thefixed asset taxes and urban planning taxes that will be imposed, relevant to theyear in which such properties will be acquired, will be divided between the seller
and the purchaser on a pro-rata basis based on holding period and settled at thetime of acquisition, and such taxes are deemed as acquisition costs and, are notincluded in the expenses. Therefore, the fixed asset taxes and urban planning taxes
regarding the assets to be acquired will not be recorded as expenses in the Augustthth31, 2023 (16 ) fiscal period and the February 29, 2024 (17 ) fiscal period.
Estimated property management costs (including building management fees andthproperty management fees) of ¥2,933 million in the August 31, 2023 (16 ) fiscal
thperiod and ¥2,850 million in the February 29, 2024 (17 ) fiscal period are
expected to be recorded as real estate rental expenses.

- 12 -

Item

Assumptions
・

・

・

・

Amortization expenses
・
for goodwill

・Non-operating expenses
・・Interest-bearing
liabilities

・

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 from estimates due to expenses for urgent repairs of damage tobuildings caused by difficult to foresee factors, significant year-on-year
fluctuations in costs or non-periodic repair expenses. Furthermore, expenses forrepairs and maintenance are estimated at ¥1,750million in the August 31, 2023thth(16 ) fiscal period and ¥1,675 million in the February 29, 2024 (17 ) fiscal
period.
thDepreciation of ¥5,774 million in the August 31, 2023 (16 ) fiscal period andth¥5,770 million in the February 29, 2024 (17 ) fiscal period is expected to berecorded as real estate rental expenses.
Other operating expenses (including asset management fees, asset custody fees
and general administration fees) are estimated at ¥4,492million in the August 31,thth2023 (16 ) fiscal period and ¥4,100 million in the February 29, 2024 (17 ) fiscal
period.
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 in each the August 31,thth2023 (16 ) and the February 29, 2024 (17 ) fiscal periods.
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 to 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.
Interest expenses and other borrowing-related expenses are estimated to be ¥th2,204 million in the August 31, 2023 (16 ) fiscal period and ¥2,225 million in thethFebruary 29, 2024 (17 ) fiscal period.
As of this document’s publication, the outstanding interest-bearing liabilities of
NMF are ¥517,420 million, consisting of ¥485,420 million in outstanding
borrowings and ¥32,000 million in investment corporation bonds.
It is assumed that the Fund will conduct new borrowings (¥4,000 million) in theth
Fiscal Period Ending August 31, 2023 (16 ) fiscal period, for a part of the funds
for the acquisition of the Assets to be Acquired. Regarding the ¥30,842 million inthborrowings that will come due by the end of the August 31, 2023 (16 ) fiscal
period and the ¥24,592 million in borrowings that will come due in the February
29, 2024 (17th) fiscal period (¥55,435 million in total), it is assumed that NMF
will make scheduled, partial repayments of ¥42 million in each the August 31,
2023 (16th) fiscal period and the February 29, 2024 (17th) fiscal period using cashon hand, while refinancing the remainder 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 through the end of the
February 29, 2024 (17th) fiscal period.

- 13 -

Item

Assumptions
・

Investment units・・Distribution per unit

・

・

・

・

Distribution per unit inexcess of earnings per
unit

・

・
Other
・

Forecasts are based on the number of investment units issued and outstanding asof this document’s publication, 4,715,200 units. NMF assumes that there will be
no additional issuance of new investment units through February 29, 2024 (theend of the 17th fiscal period).
The distribution per unit is calculated according to the distribution policy outlined
in NMF’s Articles of Incorporation.
th
For the August 31, 2023 (16 )fiscal period under review, the figure arrived at bysubtracting a portion of gains on sale of real estate and others from net income
after amortization of goodwill is planned as the amount of distribution. It is also
assumed that a portion of gains on sale will be retained as reserve for reduction
entry pursuant to Article 65-7 of the Act on Special Measures Concerning
Taxation “Special Provisions for Taxation in Cases of Repurchase of Specified
Assets.”NMF assumes that, of the allowance for temporary difference adjustments(“ATA”) accrued up to the present, the amount eliminated in the August 31, 2023thth(16 ) fiscal period (¥26 million) and the February 29, 2024 (17 ) fiscal period(¥28 million) will be reversed from retained earnings at the respective period
ends.
th
th
In the August 31, 2023 (16 ) fiscal period and the February 29, 2024 (17 ) fiscal
period, NMF assumes there will no change in the per-unit distribution by thechange 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.
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 basedon 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
and tax 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.
Distribution in excess of net income (distribution in excess of net income per unit)
is not planned for the Fiscal Period Ending August 31, 2023 (16th Fiscal Period)
as of today. The distribution in excess of net earnings per unit for the February 29,th2024 (17 ) fiscal period is expected to be ¥556, comprising ¥431 in distributionsof ATA and ¥125 in other distributions in excess of net earnings.
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.

- 14 -

2.

Financial Statements(1) Balance Sheet
As of August 31, 2022

Thousands of Yen
As of February 28, 2023

31,608,443
13,283,587
758,664
910,660
5,701
488,499
47,055,556

40,445,079
12,648,926
723,460
871,627
1,704
595,780
55,286,578

164,140,398(27,827,607)
136,312,790
855,102(465,518)

160,919,618(29,243,730)
131,675,887
863,103(483,501)

389,583

379,601

1,124,449(663,494)

1,110,113(670,901)

460,954
666,985(347,263)
319,721439,211719,399(377,569)
341,829

320,813,765
207,302,667(41,951,269)
165,351,398

317,181,103
209,403,999(45,154,385)
164,249,613

AssetsCurrent assets
Cash and bank deposits
Cash and bank deposits in trust
Rental receivables
Prepaid expenses
Derivatives assets
Other
Total current assets
Noncurrent assets
Property and equipment
Buildings
Less accumulated depreciation
Buildings, net
Structures
Less accumulated depreciation
Structures, net
MachineryLess accumulated depreciation
Machinery, net
Tools, furniture and fixtures
Less accumulated depreciation
Tools, furniture and fixtures, net
Land
Buildings in trust
Less accumulated depreciation
Buildings in trust, net*3

Structures in trust
Less accumulated depreciation
Structures in trust, net*3

Machinery in trust
Less accumulated depreciation
Machinery in trust, net
Tools, furniture and fixtures in trust
Less accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Leased assets in trust
Less accumulated depreciation
Leased assets, net
Construction in progress*3*3

Total property and equipment

1,282,434(942,291)
340,142
1,155,749(350,362)
805,387
1,263,269(695,952)
567,317428,531,681
4,752(2,508)2,244
54,305
1,053,949,292- 15 -

*3

*3

*3
*3

1,316,374(959,759)
356,6141,243,344(423,320)
820,024
1,318,751(789,171)
529,580
429,802,840
4,752(2,904)
1,848
55,572
1,045,833,729

Intangible assets
Goodwill
Leasehold rights
Leasehold rights in trust
Other
Total intangible assets
Investments and other assets
Long-term prepaid expenses
Long-term deposits
Security deposits
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets- 16 -

As of August 31, 2022

Thousands of Yen
As of February 28, 2023

69,853,523
5,602,106
7,624,899
46,238
83,126,767

67,231,280
5,602,106
7,624,513
38,74180,496,641

2,076,655
354,007885,773
3,316,436

2,111,516
369,506
875,773
3,356,797

1,140,392,497

1,129,687,168

133,571

125,586

133,571
1,187,581,625

125,586
1,185,099,333

Thousands of Yen
As of August 31, 2022

As of February 28, 2023

2,676,132
64,435,600871
2,613,692
363,161
2,088
1,015,547
5,617,495
12,53037,702
33,486
7,824
76,816,132

1,964,434
55,435,600
871
2,730,744
335,9811,920
888,352
5,583,396
7,706
20,37025,543
15,99367,010,914

32,000,000
421,027,600
1,597
2,324
14,449,903
28,135,995
20,040495,637,461
572,453,594

32,000,000
429,984,800
1,161‐
14,261,475
28,300,496‐
504,547,933
571,558,848

Liabilities
Current liabilities
Trade accounts payable
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*3

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*4Retained 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*2- 17 -*3244,996,671

245,043,416

394,012,959

394,012,959(20,286,524)*4(22,140,004)(17,142,147)(17,349,209)(37,428,672)
356,584,286(39,489,214)354,523,744

13,594,898
370,179,185
615,175,856

13,997,163
368,520,907
613,564,324(47,825)(47,825)(23,838)(23,838)

615,128,031
1,187,581,625*2

613,540,485
1,185,099,333

(2) Statement of Income and Retained Earnings
Thousands of Yen

Operating revenues
Rental revenues
Other rental revenues
Gain on sales of real estatePrevious period
from Mar. 1, 2022

Current period
from Sep. 1, 2022

to Aug.31, 2022

to Feb.28, 2023

*1
*135,249,227
3,015,254*1*135,273,552
3,074,117*2

757,969*2

1,638,421

Total operating revenues

39,022,452

39,986,092

Operating expenses
Real estate rental expenses
Asset management fees
Asset custody fees
Administrative service fees
Directors' compensation
Amortization of goodwill*1

Other operating expenses
Total operating expenses

16,652,112
3,460,491
56,990171,889
6,600
2,622,242*1

17,069,913
3,473,909
57,113
171,765
6,000
2,622,242

467,615

471,20723,437,941

23,872,152

15,584,510

16,113,940

Interest income
Reversal of dividends payable

256
3,080

239
4,150

Interest on refund
Other non-operating revenues

133
6

－
1,423

Total non-operating revenues

3,476

5,813

1,578,165

1,531,395

Interest expenses on investment corporation bonds
Amortization of investment corporation bondissuance costs

173,239

170,523

7,984

7,984

Loan arrangement fees
Other non-operating expenses
Total non-operating expenses

434,0132,286

456,975
2,290

2,195,689

2,169,168

13,392,297

13,950,584

155,651－

155,651－

46,519－46,519－13,501,429

13,950,584

Income taxes—current

2,119

1,957

Total income taxes

2,119

1,957

Operating profit
Non-operating revenues

Non-operating expenses
Interest expenses

Ordinary income
Extraordinary gain
Gain on donation of non-current assets*3

Total extraordinary gain
Extraordinary loss
Loss on disaster*4

Total extraordinary loss
Income before income taxes- 18 -

Net income

13,499,309

13,948,627

Retained earnings brought forward

95,58948,535Retained earnings at end of period

13,594,898

13,997,163- 19 -

(3) Statement of Changes in Net Assets
Previous period (from March 1, 2022 to August 31, 2022)
Thousands of Yen

Unitholders'
capitalUnitholders' equity
SurplusCapital surplus
Total deduction from capital surplus
Allowance for
Total
Deduction
temporary
deductionfrom other
difference
from capital
capital surplus
adjustment
surplusCapitalsurplus

Balance at the beginning
244,893,909 394,012,959
of the period
Changes of items during
the period
Distributions of－－retained earnings
Reversal of allowancefor temporary
102,762－difference
adjustments
Distributions inexcess of net earnings
from allowance for－－temporary difference
adjustments
Other distributions in－－excess of net earnings
Net income－

Net capitalsurplus(18,295,737) (16,214,225) (34,509,963) 359,502,995

－

－

－

－

102,762(102,762)－－(2,093,548)－(2,093,548)(2,093,548)－(825,160)(825,160)(825,160)

－

－

－

－

－

Net changes of items
other than
－
－
－
－
－
－
unitholders’ equity
Total changes of items
102,762(1,990,786)(927,922) (2,918,708) (2,918,708)－
during the period
Balance at the end of the244,996,671 394,012,959 (20,286,524) (17,142,147) (37,428,672) 356,584,286
period- 20 -

Thousands of Yen
Valuation and translation
Unitholders' equity
adjustments
Total net
Surplus
Total
Deferred gains Valuation andassetsunitholders' or losses ontranslation
Retained
Total
equityhedgesadjustments
earnings
surplus
Balance at the beginning
12,575,751 372,078,747 616,972,656
of the period
Changes of items during
the period
Distributions of(12,377,400) (12,377,400) (12,377,400)
retained earnings
Reversal of allowancefor temporary(102,762)(102,762)－
difference
adjustments
Distributions inexcess of net earnings
from allowance for－ (2,093,548) (2,093,548)
temporary difference
adjustments
Other distributions in(825,160)(825,160)－
excess of net earnings
Net income
Net changes of items
other thanunitholders’ equity
Total changes of items
during the period
Balance at the end of theperiod(94,570)(94,570) 616,878,085－－ (12,377,400)

－

－

－

－

－

(2,093,548)－－(825,160)

13,499,309

13,499,309

13,499,309－－

13,499,309

－

－

－

46,744

46,744

46,744

1,019,146(1,899,561)(1,796,799)

46,744

46,744(1,750,054)

13,594,898 370,179,185

615,175,856(47,825)(47,825) 615,128,031- 21 -

Current period (from September 1, 2022 to February 28, 2023)

Unitholders'
capitalThousands of Yen
Unitholders' equity
SurplusCapital surplus
Total deduction from capital surplus
Allowance forTotal
Net capital
Deduction
temporary
deduction
surplusfrom other
difference
from capital
capital surplus
adjustment
surplusCapitalsurplus

Balance at the beginning244,996,671 394,012,959
of the period
Changes of items during
the period
Distributions of－－retained earnings
Reversal of allowancefor temporary
46,744－difference
adjustments
Distributions inexcess of net earnings
from allowance for－－temporary difference
adjustments
Other distributions in－－excess of net earnings
Net income－(20,286,524) (17,142,147) (37,428,672) 356,584,286

－

－

－

－

46,744(46,744)－－(1,900,225)－(1,900,225)(1,900,225)－(160,316)(160,316)(160,316)

－

－

－

－

－

－

－

－

(1,853,480)(207,061)(2,060,542)(2,060,542)－

Net changes of items
other than－－unitholders’ equity
Total changes of items
46,744－during the period
Balance at the end of the
245,043,416 394,012,959
period(22,140,004) (17,349,209) (39,489,214) 354,523,744- 22 -

Thousands of Yen
Valuation and translation
Unitholders' equity
adjustments
Total net
Surplus
Total
Deferred gains Valuation andassetsunitholders' or losses ontranslation
Retained
Total
equityhedgesadjustments
earnings
surplus
Balance at the beginning
13,594,898 370,179,185 615,175,856
of the period
Changes of items during
the period
Distributions of(13,499,617) (13,499,617) (13,499,617)
retained earnings
Reversal of allowancefor temporary(46,744)(46,744)－
difference
adjustments
Distributions inexcess of net earnings
from allowance for－ (1,900,225) (1,900,225)
temporary difference
adjustments
Other distributions in(160,316)(160,316)－
excess of net earnings
Net income
Net changes of items
other thanunitholders’ equity
Total changes of items
during the period
Balance at the end of theperiod(47,825)(47,825) 615,128,031－－ (13,499,617)

－

－

－

－

－

(1,900,225)－－(160,316)

13,948,627

13,948,627

13,948,627－－

13,948,627

－

－

－

23,98623,98623,986402,265(1,658,277)(1,611,532)

23,98623,986(1,587,545)

13,997,163 368,520,907

613,564,324(23,838)(23,838) 613,540,485- 23 -

(4) Statement of Cash Distributions
Yen
Previous period
from Mar. 1, 2022
to Aug. 31, 2022
13,594,898,383

Current period
from Sep. 1, 2022
to Feb. 28, 2023
13,997,163,463

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

2,060,542,400

1,669,180,800

1,900,225,600

1,556,016,000

160,316,800

113,164,800

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

46,744,842

23,986,955

46,744,842

23,986,955

IV. Distributions[Distributions per unit]
Of which, distributions ofearnings[Of which, distributions ofearnings per unit]
Of which, allowance fortemporary difference
adjustments[Of which, allowance fortemporary difference
adjustments per unit]
Of which, other distributions inexcess of net income[Of which, other distributions inexcess of net income per unit]

15,560,160,000[3,300]13,499,617,600

15,616,742,400[3,312]
13,947,561,600[2,863][2,958]1,900,225,600

1,556,016,000

[403]

[330]

160,316,800

113,164,800

[34]

[24]

V. Retained earnings carried forward

48,535,941

25,614,908

I. Retained earnings at end of period- 24 -

Calculation method for distributions

Previous period
from Mar. 1, 2022
to Aug. 31, 2022
NMF calculates distributions inaccordance with the cash
distribution policies as specified in
Article 36, paragraphs 1 and 2 of
NMF’s Articles of Incorporation.
For the fiscal period underreview,
NMF
decidedtoimplement
a
total
of
¥15,560,160,000 in distributions(¥3,300 per investment unit). This
figure was arrived at by¥13,499,309,194 in net income
after taxes and ¥2,622,242,820 inamortization of goodwill andsubtracting ¥561,392,014, the totalof a portion of gains on sale of realestate and gain on donation of
fixed assets.
Total distributions comprise
distribution of earnings anddistribution in excess of net
income. Distribution of earnings
as stipulated in Article 136,
paragraph 1 of the Investment
TrustsAct
came
to¥13,499,617,600 (¥2,863 perinvestment unit). Distribution inexcess of net income comprises a
distribution of ¥1,900,225,600(¥403 per investment unit) as
allowance
for
temporarydifference
adjustment
and¥160,316,800 (¥34 per investmentunit) in other distribution in excess
of net income.

- 25 -

Current period
from Sep. 1, 2022
to Feb. 28, 2023
NMF calculates distributions inaccordance with the cash
distribution policies as specified in
Article 36, paragraphs 1 and 2 of
NMF’s Articles of Incorporation.
For the fiscal period underreview,NMF
decidedtoimplement
a
total
of
¥15,616,742,400 in distributions(¥3,312 per investment unit). This
figure was arrived at by¥13,948,627,522 in net income
after taxes and ¥2,622,242,820 inamortization of goodwill andsubtracting ¥954,127,942, the totalof a portion of gains on sale of realestate.
Total distributions comprise
distribution of earnings anddistribution in excess of net
income. Distribution of earnings
as stipulated in Article 136,
paragraph 1 of the Investment
TrustsAct
came
to¥13,947,561,600 (¥2,958 perinvestment unit). Distribution inexcess of net income comprises a
distribution of ¥1,556,016,000(¥330 per investment unit) as
allowance
for
temporarydifference
adjustment
and¥113,164,800(¥24 per investmentunit) in other distribution in excess
of net income.

(5) Statement of Cash Flows
Thousands of Yen
Previous period
from Mar. 1, 2022
to Aug. 31, 2022
Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of goodwill
Amortization of investment corporation bond issuance costs
Increase (decrease) in provision for loss on disaster
Interest income
Interest expenses
Gain on donation of non-current assets
Loss on disposal of property and equipment
Decrease (increase) in rental receivables
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Decrease (increase) in long-term deposits
Increase (decrease) in trade accounts payable
Increase (decrease) in other accounts payable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in rent received in advance
Decrease in property and equipment due to sales
Decrease in property and equipment in trust due to sales
Other
SubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

Current period
from Sep. 1, 2022
to Feb. 28, 2023

13,501,429
5,738,951
2,622,242
7,984
17,332(256)
1,751,404(155,651)
10,937(181,561)(64,395)
99,39791,0801,048,344
69,600833,204
29,416－
4,406,579
30,411

13,950,584
5,673,877
2,622,242
7,984(17,332)(239)
1,701,918－
11,06534,00239,033(34,861)(15,499)(711,697)
58,827(127,195)(34,099)
4,440,419
1,873,735(96,526)

29,856,452

29,376,241

256(1,725,040)(2,714)239(1,736,247)(2,124)

28,128,954

27,638,108(11,859,316)(1,930,483)(4,270,403)(2,085)(717,306)
1,139,108(1,394,583)
1,145,183－(2,148,003)(1,664,893)(4,051)－(484,739)
405,796(1,151,025)
1,200,567
10,000(17,889,886)(3,836,350)

24,730,000(25,022,800)(12,373,419)

33,550,000(33,592,800)(13,495,707)(2,093,294)(1,899,999)(825,004)(161,274)

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
Proceeds from security deposits
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term debt
Repayment of long-term debt
Distributions of earnings to unitholders
Distributions in excess of net earnings from allowance fortemporary difference adjustments
Other distributions in excess of net earnings
Net cash provided by (used in) financing activities(15,584,517)(15,599,782)

Net increase (decrease) in cash and cash equivalents(5,345,450)

8,201,975

Cash and cash equivalents at beginning of period

50,237,480

44,892,030

Cash and cash equivalents at end of period

44,892,030

53,094,006- 26 -

(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
6–45 years
Machinery
6–17 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.

Accounting method fordeferred assets
3. Allowance for doubtful
accounts

2.

4.

Revenue and expenses
recognition(3) Long-term prepaid expenses
The straight-line method is adopted.
Deferred investment corporation bond issuance costs
The straight-line method over the respective terms of the bonds.
(1) To be ready for possible losses arising from defaults on receivables, theuncollectable amount is estimated and recorded by investigating collectability
based on historical loan loss ratios for general receivables and on case-bycase examinations for doubtful receivables.
(2) Provision for loss on disaster
The amount that is reasonably estimated at the 14th fiscal period underreview is recorded to cover expenditures for restoration, etc. following the2021 Fukushima Earthquake and 2022 Fukushima Earthquake. In addition,
the amount that is reasonably estimated at the 15th fiscal period under review
is recorded to cover expenditures for restoration, etc. following the 2021
Fukushima Earthquake.
(1) Accounting for fixed asset tax, etc.
Of the tax amount assessed and determined for fixed asset tax, city planningtax, depreciable asset tax, etc. on real estate, etc. held by NMF, the method of
charging the amount 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 theacquisition date falls paid to the seller as reimbursement upon acquisition ofreal 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 ofreal estate, etc. was ¥33,773 thousand in the previous fiscal period and ¥3,372
thousand in the current fiscal period.
(2) Revenue recognition
Main performance obligations concerning revenues from contracts with
NMF’s customers and normal points in time when the obligations are satisfied(normal points in time when revenues are recognized) are as follows:① Disposition of real estate
Gains on sale of real estate are recorded at the points in time whencustomers or the buyers acquire control over the real estate by NMF
satisfying delivery obligations stipulated in the contracts on real estate
disposition.
② Utility expense revenues
Utility expense revenues are recorded according to the supply of electricity,water, etc. to customers or the tenants based on the lease contracts andattached agreements.
Among utility expense revenues, when judged that NMF is applicable as an- 27 -

5.

Hedge accounting

agent, it is NMF’s policy to recognize net amounts as revenues after
deducting the amounts paid to the suppliers of electricity, gas, etc. from theamounts NMF received as utility charges.
(1) Method of hedge accounting
Deferred hedge accounting is adopted. For interest-rate swap transactions
that meet the 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(3) Hedging policy
NMF conducts derivative transactions for the purpose of hedging risksprescribed in the Articles of Incorporation in accordance with the Basic Policy
on Risk Management.

6.

Other bases for
preparing financial
statements

7.

Cash and cash
equivalents as stated in
the Statement of Cash
Flows(4) Method for assessing effectiveness of hedging
The effectiveness of hedging is assessed by the correlation between changes
in the fair value 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, allassets and liabilities within the trust assets as well as all revenues andexpenses generated by the trust assets are recorded 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.
① Cash and bank deposits in trust② Buildings in trust; Structures in trust; Machinery in trust; Tools, furnitureand fixtures in trust; Land in trust; Leased assets in trust③ Leasehold rights in trust④ Lease obligations in trust⑤ Security deposits from tenants in trust(2) Method of accounting for non-deductible consumption tax, etc.
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 in trust; 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 thedate of acquisition that are readily convertible to cash and bear only an
insignificant risk of price fluctuation.

- 28 -

(Additional Information)(Notes Concerning Increases in and the Reversal of Allowance for Temporary Difference Adjustments)
Previous period
Current period
from Mar. 1, 2022
from Sep. 1, 2022
to Aug. 31, 2022
to Feb. 28, 2023
1．Reasons, related assets and amounts of allowance
1．Reasons, related assets and amounts of allowanceThousands of Yen
Thousands of Yen
Allowance for
Allowance for
Relatedtemporary
Relatedtemporary
ReasonReasonassets, etc.
difference
assets, etc.
difference
adjustment
adjustment
Goodwill
Amortization of
2,622,242
Goodwill
Amortization of
2,622,242
goodwill
goodwill
Subtotal
2,622,242
Subtotal
2,622,242
Buildings,
Depreciation
facilities, etc. deficiency
equivalent
Unearned
Write-down ofrevenueloss on interest
rate swap due tomergerLand
Cost of sales of
land
－
Other

(686,268)

Buildings,
facilities, etc.

Depreciation
deficiency
equivalent
Write-down ofloss on interest
rate swap due tomergerCost of sales ofland－(576,274)(19,546)

Unearnedrevenue(11,410)Land(4,792)Othet

Subtotal(722,017)

Subtotal(1,066,226)

Total

1,900,225

Total

1,556,016(7,148)(480,284)(2,519)2．Reasons, related assets and amounts of reversals
Thousands of Yen
Allowance for
Related assets,
temporary
Reasonetc.
difference
adjustment
Land,
Sale and－buildings,
depreciation of(*)
etc.
properties forwhich merger
expenses wererecordedDeferred
Changes in fair
(46,744)
gains
value ofor losses on derivatives
hedges(46,744)
Total

2．Reasons, related assets and amounts of reversals
Thousands of Yen
Allowance for
Related assets,
temporary
Reasonetc.
difference
adjustment
Land,
Sale and－buildings,
depreciation of(*)
etc.
properties forwhich merger
expenses wererecordedDeferred
Changes in fair
(23,986)
gains
value ofor losses on derivatives
hedges(23,986)
Total(*) The amount of reversal during current period (¥14,266 thousand) is
included in “Depreciation deficiency equivalent” on “1. Reasons, related
assets and amounts of allowance”.

(*) The amount of reversal during current period (¥17,648 thousand) is
included in “Depreciation deficiency equivalent” on “1. Reasons, related
assets and amounts of allowance”.

- 29 -

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

Item

Item

Method of reversal

Method of reversal

Buildings,
etc.

Upon depreciation and sale, thecorresponding amounts are scheduled
to be 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
to be reversed.
Land in trust Upon sale, etc., the corresponding
amount is scheduled to be reversed.
LeaseholdrightsLeaseholdrights in trust

Buildings,
etc.

Upon depreciation and sale, thecorresponding amounts are scheduled
to be 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
to be reversed.
Land in trust Upon sale, etc., the corresponding
amount is scheduled to be reversed.
LeaseholdrightsLeaseholdrights in trust(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 fairvalue of derivatives used as hedging instruments isscheduled to be reversed.

(4) Deferred gains or losses on hedges
The amount corresponding to changes in the fairvalue of derivatives used as hedging instruments isscheduled to be reversed.

(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.
Thousands of Yen
Previous period
Current period(Aug. 31, 2022)(Feb. 28, 2023)
Committed line of credit
10,000,000
10,000,000
Balance of used line－－
Balance of unused line
10,000,000
10,000,000② NMF has concluded a commitment line agreement with four lending financial institutions for both previous
period and current period as follows.
Thousands of Yen
Previous period
Current period(Aug. 31, 2022)(Feb. 28, 2023)
Committed line of credit
40,000,000
40,000,000
Balance of used line－－
Balance of unused line
40,000,000
40,000,000- 30 -

*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(Aug. 31, 2022)

Current period(Feb. 28, 2023)

50,00050,000*3. Asset offered as collateral and liabilities secured with collateralThousands of Yen
Current period(Feb. 28, 2023)

Previous period(Aug. 31, 2022)
Assets offered as collateral are as follows.

Assets offered as collateral are as follows.

Buildings in trust

3,169,322

Buildings in trust

3,124,950

Land in trust

6,096,368

Land in trust

6,096,368

Structures in trust

5,040
2,938

Total

4,919

Tools, furniture andTools, furniture andfixtures in trust

Structures in trust

9,273,670

fixtures in trust
Total

2,556
9,228,794

Liabilities secured by collateral are as follows.

Liabilities secured by collateral are as follows.

Security deposits fromSecurity deposits fromtenants in trust

726,648

tenants in trust

726,648

Total

726,648

Total

726,648- 31 -

*4. Allowance for temporary difference adjustments
Previous period (from March 1, 2022 to August 31, 2022)
1. Reasons, related assets and amounts

Related assets,
etc.

ReasonInitialamountBalance atthe end of
previous
periodAmortization
27,844,826 16,792,199
of goodwill
Land,
Merger
4,029,135 1,306,205
buildings, etc.
expenses
Loss on interestDeferred gains
rate swaps
or losses onrecognized at
2,867,594
197,332
hedgesthe end of the
fiscal period
Increase –－ 18,295,737
subtotal
Goodwill

Total－ 18,295,737

Allowance
set aside
duringperiodReversalduringperiodThousands of Yen
Balance atthe end of Reason for
current
reversal
period2,106,124－ 18,898,324－(12,575)－

1,293,629－－(102,762)

Changes infair value of
94,570derivativetransactions

2,093,548(102,762) 20,286,524－

2,093,548(102,762) 20,286,524－

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 intrust, etc.
Land in trust

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

Leasehold rights
Leasehold rights
in trust(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.

- 32 -

Current period (from September 1, 2022 to February 28, 2023)
1. Reasons, related assets and amounts

Related assets,
etc.

ReasonInitialamountBalance atthe end of
previous
periodAmortization
30,467,068 18,898,324
of goodwill
Land,
Merger
4,029,135 1,293,629
buildings, etc.
expenses
Loss on interestDeferred gains
rate swaps
or losses onrecognized at
2,867,594
94,570hedgesthe end of the
fiscal period
Increase –－ 20,286,524
subtotal
Goodwill

Total－ 20,286,524

Allowance
set aside
duringperiodReversalduringperiodThousands of Yen
Balance atthe end of Reason for
current
reversal
period

1,914,452－ 20,812,776－(14,226)－

1,279,402－－(46,744)

Changes infair value of
47,825derivativetransactions

1,900,225(46,744) 22,140,004－

1,900,225(46,744) 22,140,004－

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 intrust, etc.
Land in trust

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

Leasehold rights
Leasehold rights
in trust(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.

- 33 -

(Notes to Statement of Income and Retained Earnings)*1. Breakdown of real estate rental revenues and expenses
Thousands of Yen
Current period
from Sep. 1, 2022
to Feb. 28, 2023

Previous period
from Mar. 1, 2022
to Aug. 31, 2022
A.

Property related revenues
Rental revenues
Rent revenues
Common area charges

32,975,247
2,273,980

Other rental revenues
Parking revenues

647,115

Incidental incomeC.

35,273,552

641,578

2,249,949

2,347,140

118,189

Other miscellaneous revenues
Property related revenues
B.

35,249,227

33,030,571
2,242,980

3,015,254

85,39838,264,482

3,074,117
38,347,670

Property related expenses
Real estate rental expenses
Property management costs
Property management fees

1,855,012
1,071,906

1,907,712
959,333

Property and other taxes

3,313,137

3,285,890

Utility expenses
Casualty insurance

1,878,814
64,3702,333,894
62,629Repairs and maintenanceLand rents
Depreciation

1,326,497
188,976
5,738,419

1,434,180
189,361
5,673,345

Other rental expenses
Property related expenses

1,214,97816,652,112

Real estate rental profits [A－B]

1,223,564

16,652,112

17,069,913

21,612,370

21,277,757*2. Breakdown of gain on sales of real estatePrevious period (from March 1, 2022 to August 31, 2022)
Thousands of Yen
Ichibancho stear
Proceeds from sales of real estate
Cost of sales of real estate

5,382,000
4,406,579

Other related sales expenses

217,451

Gain on sales of real estate

757,969

Current period (from September 1, 2022 to February 28, 2023)
Thousands of Yen
NRE Higashi-nihonbashi Building(Quasi co-ownership of 50%)
Proceeds from sales of real estate

2,260,000

Cost of sales of real estate
Other related sales expenses

1,873,735
36,030Gain on sales of real estate

350,234

Thousands of Yen
PRIME URBAN Takaido
Proceeds from sales of real estate
Cost of sales of real estate

1,310,000
1,033,888

Other related sales expenses

52,789Gain on sales of real estate

223,321- 34 -

17,069,913

Thousands of Yen
PRIME URBAN Mukojima
Proceeds from sales of real estate
Cost of sales of real estate

636,500
512,654

Other related sales expenses
Gain on sales of real estate

28,667
95,177

Thousands of Yen
PRIME URBAN Nishi Funabashi
Proceeds from sales of real estate
Cost of sales of real estate

967,000
645,621

Other related sales expenses
Gain on sales of real estate

38,867
282,511

Thousands of Yen
PRIME URBAN Aoi
Proceeds from sales of real estate

763,000

Cost of sales of real estate
Other related sales expenses

639,106
30,947

Gain on sales of real estate

92,945

Thousands of Yen
PRIME URBAN Tsurumai
Proceeds from sales of real estate

1,281,000

Cost of sales of real estate
Other related sales expenses

846,837
51,507

Gain on sales of real estate

382,655

Thousands of Yen
PRIME URBAN Chiji Kokan
Proceeds from sales of real estate
Cost of sales of real estate
Other related sales expenses

300,740
205,363
12,998Gain on sales of real estate

82,378

Thousands of Yen
PRIME URBAN Maruyama
Proceeds from sales of real estate
Cost of sales of real estate
Other related sales expenses

257,325
194,652
11,085Gain on sales of real estate

51,586

Thousands of Yen
PRIME URBAN Kita Nijyuyo Jo
Proceeds from sales of real estate

459,393

Cost of sales of real estate362,295

Other related sales expenses
Gain on sales of real estate

19,48877,609- 35 -

*3.Breakdown of Extraordinary Gain
Previous period (from March 1, 2022 to August 31, 2022)
The ¥155,651 thousand related to the donation of building fixtures that belonged to tenants at the time of tenant vacation isrecorded as a gain on donation of fixed assets.
Current period (from September 1, 2022 to February 28, 2023)
Not applicable.
*4.Breakdown of Extraordinary Loss
Previous period (from March 1, 2022 to August 31, 2022)
Losses related to assets damaged by the 2022 Fukushima Earthquake totaling ¥46,519 thousand are recorded as loss on
disaster.
Current period (from September 1, 2022 to February 28, 2023)
Not applicable.

- 36 -

(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 ofthese investment and rental properties at the end of the fiscal period.
Thousands of Yen

Carrying amount
Balance at beginning of period
Amount of increase (decrease) during
periodBalance at end of period
Fair value at end of period

Previous period
from Mar. 1, 2022
to Aug. 31, 2022

Current period
from Sep. 1, 2022
to Feb. 28, 2023

1,059,049,692

1,067,176,298

8,126,606(8,115,950)

1,067,176,298
1,286,608,958

1,059,060,348
1,294,405,000(Note 1)
(Note 2)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 Hamamatsucho II (¥5,559,469 thousand), PROUD FLAT Togoshi-Ginza (¥2,644,993 thousand),
PRIME URBAN Higashi Nakano Court (¥7,292,801 thousand). The decrease during the previous period is mainly
attributable to the sale of Ichibancho stear (¥4,406,579 thousand) as well as depreciation (¥5,731,074 thousand). The
increase during the current period is mainly attributable to the acquisition of PROUD FLAT Nezu Yanaka (¥1,452,611
thousand). The decrease during the current period is mainly attributable to the sale of NRE Higashi-nihonbashi Building(¥1,873,735 thousand), PRIME URBAN Takaido (¥1,033,888 thousand), PRIME URBAN Mukojima (¥512,654
thousand), PRIME URBAN Nishi Funabashi (¥645,621 thousand), PRIME URBAN Aoi (¥639,106 thousand), PRIMEURBAN Tsurumai (¥846,837 thousand), PRIME URBAN Chiji Kokan (¥205,363 thousand), PRIME URBAN
Maruyama (¥194,652 thousand), PRIME URBAN Kita Nijyuyo Jo (¥362,295 thousand) as well as depreciation(¥5,665,963 thousand).
(Note 3) Fair value at the end of the period is the appraisal value or investigation value determined by investigation, found by anoutside real estate appraiser. However, in the previous period, transfer price is used as the fair value for NRE Higashinihonbashi Building (September 15,2022), and the scheduled transfer price is used as the fair value for NRE Higashinihonbashi Building (March 15,2023), PRIME URBAN Takaido, PRIME URBAN Mukojima, PRIME URBAN Nishi
Funabashi, PRIME URBAN Chiji Kokan, PRIME URBAN Maruyama, PRIME URBAN Kita Nijyuyo Jo, PRIMEURBAN Aoi, PRIME URBAN Tsurumai. In the current fiscal period, transfer price is used as the fair value for NRE
Higashi-nihonbashi Building, NMF Nagoya Yanagibashi Building, PRIME URBAN Yoyogi, PRIME URBAN Nishi
Shinjuku II , PRIME URBAN Sangen Jaya III , PRIME URBAN Shinagawa Nishi ,PRIME URBAN Komagome ,PRIME URBAN Kasai II , PRIME URBAN Asakusa, PRIME URBAN Gyotoku Ekimae, the scheduled transfer price isused as the fair value for NMF Tenjin-Minami Building, PRIME URBAN Otsuka.

The income (loss) in the previous period (March 1, 2022 to August 31, 2022) and current period (fromSeptember 1, 2022 to February 28, 2023) for investment and rental properties is as presented in “Notes toStatement of Income and Retained Earnings” earlier in this report.

(Notes Concerning Revenue Recognition)
1. Information classifying revenues from contracts with customers
Previous period (from March 1, 2022 to August 31, 2022)
Thousands of Yen

Proceeds from sales of real estate
Utility expense revenues
Other
Total

Revenues from contracts with(Note 1)
customers
5,382,000
1,531,876－
6,913,876- 37 -

Sales to external customers(Note 2)757,969
1,531,876
36,732,606
39,022,452

(Note 1) Leasing business revenues, which are subject to the Corporate Accounting Standard No. 13, “Accounting Standard for Lease Transactions,” andreal estate transfers, which are subject to the “Practical Guidelines Concerning Accounting for the Transferors in Securitization of Real Estate Using
SPCs” of the JICPA Accounting System Committee Report No. 15, are not applicable to the Accounting Standard for Revenue Recognition, and arethus not included in the above amount. Note that the main revenues from contracts with customers are gains on sale of real estate and utilities
expense revenues.
(Note 2) Gains on sale of real estate are recorded as profits/losses on sale of real estate (the amount after deducting real estate disposition costs and otherdisposition costs from gains on sale of real estate) in the statement of income and retained earnings. Since NMF records gains on sale of real estate
as operating revenues and losses on sale of real estate as operating expenses, only the amounts of gains on sale of real estate are described in theabove table.

Current period (from Sep. 1, 2022 to Feb. 28, 2023)
Thousands of Yen

Proceeds from sales of real estate
Utility expense revenues
Other
Total

Revenues from contracts with(Note 1)
customers
3,277,458
1,666,778－
4,944,237

Sales to external customers(Note 2)

1,638,421
1,666,778
36,680,891
39,986,092(Note 1) Leasing business revenues, which are subject to the Corporate Accounting Standard No. 13, “Accounting Standard for Lease Transactions,” andreal estate transfers, which are subject to the “Practical Guidelines Concerning Accounting for the Transferors in Securitization of Real Estate Using
SPCs” of the JICPA Accounting System Committee Report No. 15, are not applicable to the Accounting Standard for Revenue Recognition, and arethus not included in the above amount. Note that the main revenues from contracts with customers are gains on sale of real estate and utilities
expense revenues.
(Note 2) Gains on sale of real estate are recorded as profits/losses on sale of real estate (the amount after deducting real estate disposition costs and otherdisposition costs from gains on sale of real estate) in the statement of income and retained earnings. Since NMF records gains on sale of real estate
as operating revenues and losses on sale of real estate as operating expenses, only the amounts of gains on sale of real estate are described in theabove table.

2. Basic information for understanding revenues from contracts with customers
Previous period (from Mar 1, 2022 to Aug 31, 2022)
Refer to the description in the notes concerning matters pertaining to significant accounting policies
Current period (from September 1, 2022 to February 28, 2023)
Refer to the description in the notes concerning matters pertaining to significant accounting policies.
3. Information on the satisfaction of performance obligations based on contracts with customers, relationships
with cash flows arising from the contracts, and the amounts of revenues which arise from outstanding contracts
with customers as of the end of the accounting period under review and will be recognized in the next accounting
period onwards, as well as the timing to recognize the revenues(1) Balances of contract assets and liabilities
Thousands of Yen
Current period
from Sep. 1, 2022
to Feb. 28, 2023

Previous period
from Mar. 1, 2022
to Aug. 31, 2022
Receivables from contracts with customers (balance asof the beginning of the fiscal period)

372,248497,211

Receivables from contracts with customers (balance asof the end of the fiscal period)

497,211

466,028

Contract assets (balance as of the beginning of the
fiscal period)－－

Contract assets (balance as of the end of the fiscal
period)

－

－

－

－

－

－

Contract liabilities (balance as of the beginning of the
fiscal period)
Contract liabilities (balance as of the end of the fiscal
period)- 38 -

(2) Transaction prices allocated to remaining performance obligations
Previous period (from March 1, 2022 to August 31, 2022)
As of August 31, 2022, the transaction price allocated to remaining performance obligations relating to the sale of realestate and other assets was ¥4,520,000 thousands for real estate and other assets for which a purchase and sale agreement was
concluded on March 8, 2022.
Of the remaining performance obligations, NMF completed the transfer of ¥2,260,000 thousands of the relevant real estateand other assets on September 15, 2022 and expect to recognize a gain in the February 28, 2023 (15th) fiscal period.
In addition, with regard to the remaining ¥2,260,000 thousands, NMF expects to recognize a gain in the August 31, 2023
(16th) fiscal period in conjunction with the transfer of the relevant real estate and other assets, which is planned to take placeon March 15, 2023.
Concerning utility expense revenues, NMF recognizes them with the amounts for which it has the right to claim according
to item 19 of the Implementation Guidance on the Accounting Standard for Revenue Recognition. This is because NMF has
the right to receive the amounts of consideration, which directly correspond to the value for customers or tenants, from
customers for the portions where the obligations are satisfied before the end of a fiscal period. Accordingly, adopting the
stipulation of item 80-22 (2) of the Accounting Standard for Revenue Recognition, utility expense revenues are not includedin the note on transaction prices allocated to remaining performance obligations.

Current period (from Sep. 1, 2022 to Feb. 28, 2023)
As of February 28, 2023, the transaction price allocated to remaining performance obligations relating to the sale of realestate and other assets was ¥2,260,000 thousands for NRE Higashi-nihonbashi Building for which a purchase and saleagreement was concluded on March 8, 2022.
Of the remaining performance obligations, NMF completed the transfer of ¥2,260,000 thousands of the relevant real estateand other assets on March 15, 2023 and expect to recognize a gain in the August 31, 2023 (16th) fiscal period.
Concerning utility expense revenues, NMF recognizes them with the amounts for which it has the right to claim according
to item 19 of the Implementation Guidance on the Accounting Standard for Revenue Recognition. This is because NMF has
the right to receive the amounts of consideration, which directly correspond to the value for customers or tenants, from
customers for the portions where the obligations are satisfied before the end of a fiscal period. Accordingly, adopting the
stipulation of item 80-22 (2) of the Accounting Standard for Revenue Recognition, utility expense revenues are not includedin the note on transaction prices allocated to remaining performance obligations.

(Notes on Per Unit Information)
Yen
Previous period
from Mar. 1, 2022
to Aug. 31, 2022

Current period
from Sep. 1, 2022
to Feb. 28, 2023

Net assets per unit

130,456

130,119

Net income per unit

2,862

2,958

(Note 1)

Net income per unit is calculated by dividing net income by the average number of investment units during the period.

(Note 2)

The following is the basis for calculation of net income per unit.

In addition, the diluted net income per unit is not stated, since there are no dilutive investment units.

Previous period
from Mar. 1, 2022
to Aug. 31, 2022

Current period
from Sep. 1, 2022
to Feb. 28, 2023

13,499,309

13,948,627

Amount not attributable to ordinary unitholders (Thousands of
Yen)

－

－

Net income attributable to ordinary investment units(Thousands of Yen)

13,499,309

13,948,627

Average number of investment units during period (Units)

4,715,200

4,715,200

Net income (Thousands of Yen)

- 39 -

(Notes on Significant Subsequent Events)
Transfer of the asset(a)NMF sold the following asset after the conclusion of the 15th fiscal period (February 28, 2023).
Impact on
16th fiscal
periodearnings(Scheduled)(¥ million)

Property Name

Type of
asset

Use

Contract
date

Transfer
date

Buyer

Transfer
price(¥
million)

NRE Higashi-nihonbashi
Building (Quasi
co-ownership of 50%)

Trust
beneficial
interest in
trust ofreal estate

Offi
ce

March
8, 2022March
15, 2023

Domestic
generalbusinesscompany

2,260

350

March
22, 2023

March
31, 2023

Domestic
specialpurposecompany

6,283(Note 2)

1,550
(Note 2)March
20, 2023

April 7,2023

Domestic
specialpurposecompany

4,410

1,695

PRIME URBAN
Yoyogi (Note 1)
PRIME URBAN
Nishi Shinjuku II (Note 1)
PRIME URBAN
Sangen Jaya III (Note 1)

RealestatePRIME URBAN
Shinagawa Nishi (Note 1)

PRIME URBAN
Komagome

Resi
Trust
beneficial dent
interest in ial
trust ofreal estate

PRIME URBAN Kasai II(Note 1)PRIME URBAN Asakusa(Note 1)Real
estatePRIME URBAN Gyotoku
Ekimae (Note 1)
Trust
beneficial
NMF Nagoya Yanagibashi
interest in
Building
trust ofreal estate

Offi
ce

(Note 1) At the end of the 15th fiscal period, the asset to be transferred was real estate, but on March 31, 2023,
a trust agreement was concluded and it was transferred as a trust beneficial interest in trust of realestate.
(Note 2) Of the assets to be disposed of, the dispositions of PRIME URBAN Yoyogi, PRIME URBAN Nishi
Shinjuku II, PRIME URBAN Sangen Jaya III, PRIME URBAN Shinagawa Nishi, PRIME URBAN
Komagome, PRIME URBAN Kasai II, PRIME URBAN Asakusa, and PRIME URBAN Gyotoku
Ekimae are based on a single sale agreement with the same transferee. The transfer prices of- 40 -

individual properties are undisclosed, as consent has not been obtained from the transferee.
Accordingly, Impact on 16th fiscal period earnings of individual properties are also undisclosed.

(b)NMF is going to sell the following asset after the conclusion of the 15th fiscal period (February 28, 2023)
Impact on
Contract Transfer
Transfer
16th fiscal
Buyer
Type of
date
date
price
periodProperty name
Use
(Schedasse(Schedule (Schedul(Schedulearnings
uled)
d)
ed)
ed)
(Scheduled)(¥ million)
Trust
Tokyo
beneficial
NMF Tenjin-Minami
March 17, May 31, Tatemointerest in Office
3,040
997
Building
2023
2023
no Co.,
trust ofLtd.
real estateTokyo
Tatemono
Real
Reside March 17, May 31,
Real
PRIME URBAN Otsuka
772
96
estatential
Estate
2023
2023
Sales
Co.,
Ltd.
The impact of (a) and (b), above, on earnings for 16th fiscal period (March 1, 2023 to August 31, 2023)
will be recorded as gain on sales of real estate under operating revenues.
[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 Effect Accounting, Equity Method
Income and Retained Earnings, etc., Transactions with Related Parties, Asset Retirement Obligations and Segment Information isomitted because such disclosure in this summary of financial results is judged to be unnecessary.

- 41 -

(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 and outstanding during the period from the date of incorporation of NMF through the end of the 15th
fiscal period (February 28, 2023).

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 type merger

461,120

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

198

162,791(Note 4)132,000

4,315,130

17,572

180,363(Note 5)6,670

4,321,800

887

181,251(Note 6)－

4,321,800

478

181,730(Note 4)－4,321,800

321

182,051(Note 4)

214,760

4,536,560

31,241

213,293(Note 7)

10,7404,547,300

1,562

214,855(Note 8)－4,547,300

91

214,947(Note 4)

159,900

4,707,200

27,845

242,792(Note 9)8,000

4,715,200

1,393

244,185(Note 10)－

4,715,200

122

244,307(Note 4)－

4,715,200

299

244,606(Note 4)－

4,715,200

132

244,739(Note 4)－

4,715,200

154

244,893(Note 4)

October 14, 2016

April 14, 2017

October 13, 2017
March 1, 2018
March 20, 2018
April 13, 2018

October 15, 2018
March 1, 2019
March 26, 2019
October 15, 2019
December 20, 2019
January 21, 2020
April 14, 2020

October 14, 2020

April 14, 2021

October 13, 2021

Reversal of allowancefor temporary difference
adjustments
Reversal of allowancefor temporary difference
adjustments
Reversal of allowancefor temporary difference
adjustments
Public offering
Third party allotment
increase
Reversal of allowancefor temporary difference
adjustments
Reversal of allowancefor temporary difference
adjustments
Public offering
Third party allotment
increase
Reversal of allowancefor temporary difference
adjustments
Public offering
Third party allotment
increase
Reversal of allowancefor temporary difference
adjustments
Reversal of allowancefor temporary difference
adjustments
Reversal of allowancefor temporary difference
adjustments
Reversal of allowancefor temporary difference
adjustments- 42 -

April 19, 2022

October 18, 2022

Reversal of allowancefor temporary difference
adjustments
Reversal of allowancefor temporary difference
adjustments－

4,715,200

102

244,996(Note 4)－

4,715,200

46

245,043(Note 4)(Note 1)Figures have been truncated at the nearest million yen.

(Note 2)

NMF was established through the consolidation type merger of the former Nomura Real Estate Master Fund (hereinafter “former NMF”),
Nomura Real Estate Office Fund (hereinafter “NOF”) and Nomura Real Estate Residential Fund (hereinafter” NRF”) on October 1, 2015
(hereinafter “the Merger of the Three REITs”). Upon its establishment, NMF allotted 1 NMF unit per former 1.00 NMF unit, 3.60 NMF units(Note 3)per 1.00 NOF unit and 4.45 NMF units per 1.00 NRF unit.
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(Note 4)in the issue of 461,120 new units. There was no change in the total amount of unitholders’ capital due to this absorption type of merger.
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 ) for the(Note 6)

purpose of procuring funds to acquire new properties.
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.

(Note 8)

NMF issued new investment units through public offering at an issue price of ¥150,223 per unit (issue value: ¥145,471 per unit ) for the
purpose of procuring funds to acquire new properties.
NMF issued new investment units through third-party allotment at an issue value of ¥145,471 per unit together with the issuance of new(Note 9)

NMF issued new investment units through public offering at an issue price of ¥179,830 per unit (issue value: ¥174,141 per unit ) for the(Note 10)

purpose of procuring funds to acquire new properties.
NMF issued new investment units through third-party allotment at an issue value of ¥174,141 per unit together with the issuance of new
investment units through public offering.

(Note 7)

investment units through public offering.

- 43 -

3.

Reference Information(1) Investment Status

Subtotal
Deposits and other assets
Total amount of assets

14th fiscal period
15th fiscal period
As of August 31, 2022
As of February 28, 2023
As a percentage
As a percentage
Total amount held
Total amount heldof total amount ofof total amount of(Millions of Yen)
(Millions of Yen)
assets (%)
assets (%)(Note 2)
(Note 2)
(Note 3)(Note 3)150,09412.6
145,990
12.3
21,2591.8
21,287
1.8
171,35414.4
167,278
14.1
28,595
2.4
28,488
2.4
18,099
1.5
18,092
1.5
46,694
3.9
46,5803.9
63,472
5.3
63,2395.3
63,472
5.3
63,2395.3
144,04012.1
142,725
12.0
29,591
2.5
27,0702.3
173,632
14.6
169,796
14.3
3,648
0.3
3,631
0.3
3,648
0.3
3,631
0.3
5,136
0.4
5,136
0.4
5,136
0.4
5,136
0.4
463,93739.1
455,66238.4
259,160
21.8
260,585
22.0
50,5274.3
50,452
4.3
309,68826.1
311,037
26.2
79,957
6.7
79,776
6.7
45,036
3.8
44,917
3.8
124,993
10.5
124,694
10.5
137,056
11.5
136,231
11.5
3,267
0.3
3,255
0.3
140,324
11.8
139,487
11.8
25,5602.2
25,4692.1
25,5602.2
25,469
2.1
2,671
0.2
2,709
0.2
2,671
0.2
2,709
0.2
603,23850.8
603,39750.9
1,067,176
89.9
1,059,060
89.4
120,405
10.1
126,038
10.6
1,187,581
100.0
1,185,099
100.0

Total amount of liabilities
Total amount of net assets

14th fiscal period
15th fiscal period
As of August 31, 2022
As of February 28, 2023
As a percentage
As a percentage
AmountAmountof total amount ofof total amount of(Millions of Yen)
(Millions of Yen)
assets (%)
assets (%)(Note 4)(Note 4)(Note 3)(Note 3)
572,45348.2
571,55848.2
615,12851.8
613,54051.8

Type of asset

Use

Officeproperties
Retailproperties

Real estate

Logistics
properties
Residential
properties
Hotelproperties
Other
Properties

Officeproperties
Retailproperties
Real estatein trust

Logistics
properties
Residential
properties
Hotelproperties

Area(Note 1)

Greater Tokyo area
Other areas
Subtotal
Greater Tokyo area
Other areas
Subtotal
Greater Tokyo area
Subtotal
Greater Tokyo area
Other areas
Subtotal
Other areas
Subtotal
Greater Tokyo area
Subtotal
Subtotal
Greater Tokyo area
Other areas
Subtotal
Greater Tokyo area
Other areas
Subtotal
Greater Tokyo area
Other areas
Subtotal
Greater Tokyo area
Subtotal
Other areas
Subtotal
Subtotal(Note 1) “Greater Tokyo area” refers to Tokyo, Kanagawa Prefecture, Chiba Prefecture and Saitama Prefecture. “Other areas” refers to cabinet-order-designatedcities, prefectural capitals, and cities with a population of 100,000 persons or more as well as surrounding areas of these 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.

- 44 -

(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. (293 properties) held as of February 28, 2023, (the endof the 15th fiscal period) by NMF (this real estate and the beneficiary interests of trusts in which realestate 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 15th fiscal period”). Unlessotherwise stated, the figures in the tables below are the figures as of February 28, 2023.

- 45 -

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 15th fiscal period.
Number of properties

293
2 (Note 1)

2,161,003.03

Gross leasable area (m )2 (Note 2)

2,133,760.83

Gross leased area (m )Total number of tenants(Note 3)

1,351

Total of all contracted rent (Thousands of Yen)

(Note 4)

5,939,077(Note 1) The sum total of the “leasable area” of each of the assets held at the end of the 15th fiscal period. “Leasable area” is the sum total areaof office buildings, retail facilities, logistics facilities, residential facilities, or hotels etc. leasable in each asset (including the area ofcommon-use space, etc., if leased). Leasable area is calculated based not on that presented in the registry, but the area stated in the lease
contract and the area calculated based on building completion drawings, etc. Accordingly, the leasable area may not be the same as thefloor area based on that presented in the registry and may exceed the floor area. In the case of land with leasehold right, the land area
based on that presented in the registry is used as contracted area. For the Shinjuku Nomura Building, NRE Higashi-nihonbashi
Building, NEC Head Office Building and Musashiurawa Shopping Square, the leasable area is the area calculated by multiplying thebuilding’s overall leasable area by the quasi co-ownership ratio of the beneficial interest in real estate trust owned by NMF as of theend of the fiscal period. For 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 the common areas, the leasable area is calculated as the building’s overall leasable areamultiplied by the ownership ratio of the common areas. For PMO Hatchobori Shinkawa and PROUD FLAT Togoshi-ginza, upon themaster lease agreement, the rent paid to each compartmentalized owner is the sum of (i) the rent to be earned from the leasable
exclusive area of the entire building (excluding the exclusive area subject to the selfuse by other compartmentalized owners; the same
shall apply hereinafter for PMO Hatchobori Shinkawa and PROUD FLAT Togoshi-ginza) multiplied by the ratio of the area of the
exclusive area owned by each compartmentalized owner, and (ii) the rent to be earned from the common area, etc. of the building
multiplied by the share interest in ownership of the common area, etc.. Therefore, the leasable area of PMO Hatchobori Shinkawa and
PROUD FLAT Togoshi-ginza is the sum of (i) the leasable area of the exclusive area owned by NMF and (ii) the leasable area of thecommon area, etc. of the entire building multiplied by NMF’s share of ownership interest of the common area.
(Note 2) The sum total of “leased area” of each of the assets held at the end of the 15th fiscal period. “Leased area” is the area that is actuallyleased to an end-tenant (The area stated in the lease contract; provided, however, that such be limited to the area of office properties,
retail properties, logistics properties, residential properties, or hotel properties etc. (if all rental units are collectively leased, then thearea of the entire rental units) and not include the leased area of parking space, etc. However, if the master lessee has a rent-guaranteed
master lease for some or all rental units, the space is included in leased area regardless of whether or not there is a lease agreement withan 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, NRE Higashi-nihonbashi Building, NEC Head Office Building and Musashiurawa Shopping Square, the leased area is thearea calculated by multiplying the building’s overall leased 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 lease agreement
is calculated as the building’s overall rent multiplied by the ownership ratio of the common areas, the leased area is calculated as thebuilding’s overall leased area multiplied by the ownership ratio of the common areas. For PMO Hatchobori Shinkawa, upon the master
lease agreement, the rent paid to each compartmentalized owner is the sum of (i) the rent to be earned from the leasable exclusive areaof the entire building multiplied by the ratio of the area of the exclusive area owned by each compartmentalized owner, and (ii) the rent
to be earned from the common area, etc. of the building multiplied by the share interest in ownership of the common area, etc..
Therefore, the leased area of PMO Hatchobori Shinkawa is the sum of (i) the leased area of the leasable exclusive area of the entire
building multiplied by the ratio of the area of the exclusive area owned by NMF and (ii) the leased area of the common area, etc. of theentire building multiplied by NMF’s share of ownership interest of the common area.
(Note 3) The sum total of “total number of tenants” of each of the assets held at the end of the 15th fiscal period. In the calculation of “numberof tenants,” 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 (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-throughmaster lease agreement, where the rent received from the lessee in the master lease agreement is the same amount as the rent that thelessee receives from the end-tenant, the total number of end-tenants is shown. In addition, if multiple rental units in a specific asset areleased to a specific tenant, this is counted as one tenant for the asset and, if multiple assets are leased to a specific tenant, these arecounted 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, regardless of pass-throughmaster lease agreement, the lessee of the master lease agreement is counted as one tenant, and the total number of tenants for thebuilding as whole is shown.
(Note 4) The total amount of “total contracted rent” for February 2023 of each of the assets held at the end of the 15th fiscal period (amounts
less than one thousand are truncated). “Total contracted rent” for February 2023 refers to the sum total of monthly rent and common
area charges in lease agreements actually concluded with end-tenants that are valid as of the last day of February 2023 (This does not- 46 -

include parking space or other fees stated in parking space lease agreements or other such agreements signed in addition to the tenantlease agreement. If common-use space, etc. is leased based on the lease agreement, the rent for such is included. In addition, if themaster lessee has a rent-guaranteed master lease for some or all rental units, the rent for the space is based on the rent, etc., in the leaseagreement concluded with the master lessee.). Furthermore, regarding tenants who have been exempt from rent payment for a certain
period of time in their agreements, such exemption period is not considered in the table above, and the rent is calculated based on themonthly rent and common area charges payable immediately after the exemption period ends. In addition, the standard level of rent isused for tenants with sales-based rent and for tenants with variable rent including cases in which a part of rent is variable rent. For the
Shinjuku Nomura Building, NRE Higashi-nihonbashi Building, NEC Head Office Building and Musashiurawa Shopping Square, thetotal contracted rent is calculated by multiplying 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 calculated as the building’s overall rent revenues multiplied by the ratio of the common areas that NMF owns through thetrustee. For PMO Hatchobori Shinkawa and PROUD FLAT Togoshi-ginza, the total contract rent is calculated by summing (i) the rent
revenues earned from the leasable exclusive area of the entire building multiplied by the ratio of the area of the exclusive area owned
by NMF, and (ii) the rent revenues earned from the common area, etc. of the building multiplied by NMF’s share of ownership interestof the common area, etc..

(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 28, 2021
(end of 11th fiscal
period)August 31, 2021
(end of 12th fiscal
period)February 28, 2022
(end of 13th fiscal
period)August 31, 2022
(end of 14th fiscal
period)February 28, 2023
(end of 15th fiscal
period)

98.8

98.1

98.7

98.7

98.7

- 47 -

B. Price and Investment Share
The following is an overview of the assets held at the end of the 15th fiscal period (acquisition price,
carrying amount, opinion of value at end of period, investment share and appraiser).

Use

Area

Acquisition price Carrying amount(Millions of Yen) (Millions of Yen)
(Note 1)
(Note 2)

Property nameAppraiser

3,850

3,815

4,520

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.

Higashiguchi

7,830

7,972

9,430

0.7

Japan Valuers Co., Ltd.

Nishiguchi

5,460

5,548

8,730

0.7

NMF Shin-Yokohama Building

2,620

2,737

2,950

0.2

PMO Tamachi

6,210

6,043

8,880

0.7

PMO Ginza Hatchome

3,970

3,877

5,450

0.4

PMO Shibakoen

3,900

3,779

5,550

0.4

NEC Head Office Building (Note 6)

44,10044,46849,000

3.8

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.

43,90046,76851,600

4.0

NRE Tennozu Building

20,50020,562

21,7001.7

26,70026,38130,7002.4

10,000

10,115

13,400

1.0

NMF Shibuya Koen-dori Building

10,40010,502

10,5000.8

Secom Medical Building

11,100

10,543

12,600

1.0

NMF Shiba Building

7,040

7,095

7,400

0.6

Nishi-Shinjuku Showa Building

8,140

8,177

8,030

0.6

NRE Shibuya Dogenzaka Building

5,310

5,360

5,950

0.5

Iwamoto-cho Toyo Building

4,050

4,090

4,990

0.4

NMF Surugadai Building

4,690

4,670

5,250

0.4

PMO Nihonbashi Honcho

4,320

4,025

4,980

0.4

PMO Nihonbashi Kayabacho

5,010

4,695

6,690

0.5

NMF
Shinjuku
Building

GreaterTokyo
area

Investment
share
(%)
(Note 4)

Shinjuku Nomura Building (Note 5)

Kojimachi Millennium Garden

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

Minamiguchi

NMF Gotanda Ekimae Building

4,430

4,551

5,390

0.4

NRE Higashi-nihonbashi Building(Note 6)

1,785

1,883

2,175

0.2

PMO Akihabara

4,240

3,975

5,670

0.4

Hatchobori NF Building

2,480

2,431

2,610

0.2

NMF Kanda Iwamoto-cho Building

4,160

4,182

4,620

0.4

NMF Takanawa Building

2,830

2,862

3,540

0.3

PMO Hatchobori

2,880

2,649

3,530

0.3

PMO Nihonbashi Odenmacho

2,210

2,056

3,110

0.2

PMO Higashi-nihonbashi

1,690

1,521

2,010

0.2

NRE Ueno Building

6,470

6,578

7,070

0.5

NF Hongo Building.

4,890

4,888

5,230

0.4

Crystal Park Building

3,390

3,296

3,330

0.3

NMF Kichijoji Honcho Building

1,780

1,847

2,240

0.2

Faret Tachikawa Center Square
NMF
Kawasaki
Building
NMF
Yokohama
Building- 48 -

Use

Area

GreaterTokyo
area

Office

Other
areas

Office subtotal

Property nameAcquisition price Carrying amount(Millions of Yen) (Millions of Yen)
(Note 1)
(Note 2)

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

Investment
share
(%)
(Note 4)

Appraiser
Daiwa Real EstateAppraisal Co., Ltd.
Japan Real Estate
Institute
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
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
Institute
JLL Morii Valuation &Advisory K.K.
Japan Real Estate
Institute

Harumi Island Triton Square OfficeTower Y18,20017,841

17,500

1.4

NMF Aoyama 1-chome Building

10,40010,565

13,900

1.1

NMF Takebashi Building

8,330

8,524

9,050

0.7

Harumi Island Triton Square OfficeTower Z

8,180

8,024

8,440

0.7

NMF Kayabacho Building

6,070

6,017

8,370

0.6

NMF Shinjuku EAST Building

5,710

5,779

6,550

0.5

NMF Shiba-Koen Building

3,620

3,740

4,730

0.4

NMF Ginza 4-chome Building

1,850

1,974

2,260

0.2

Faret East Building

1,850

1,806

2,150

0.2

PMO Shinnihonbashi

4,440

4,328

5,610

0.4

PMO Hirakawacho

3,410

3,354

4,360

0.3

PMO Nihonbashi Mitsukoshi-mae

4,310

4,277

5,910

0.5

PMO Shibadaimon

2,130

2,117

2,610

0.2

PMO Tamachi Ⅱ

10,90010,812

13,100

1.0

PMO Hatchobori Shinkawa

3,805

3,758

4,380

0.3

PMO Hatchobori Ⅲ

2,880

2,861

3,330

0.3

PMO Ochanomizu

3,890

3,855

4,700

0.4

PMO Akihabara Kita

8,450

8,362

9,780

0.8

PMO Higashi-Shinbashi

4,730

4,722

5,640

0.4

PMO Hamamatsucho

4,380

4,365

5,280

0.4

PMO Hamamatsucho II

5,500

5,524

6,100

0.5

Sapporo North Plaza

6,250

6,775

9,400

0.7

NRE Sapporo Building

4,140

3,644

5,440

0.4

NMF Sendai Aoba-dori Building

2,030

2,166

2,420

0.2

NMF Nagoya Fushimi Building

2,240

1,948

2,650

0.2

NMF Nagoya Yanagibashi Building

2,280

2,533

2,230

0.2

Japan Valuers Co., Ltd.
Japan Real
Institute

EstateOmron Kyoto Center Building

18,30018,18820,500

1.6

SORA Shin-Osaka 21

12,10012,03912,800

1.0

Japan 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

NRE Osaka Building

6,100

7,651

7,690

0.6

NRE Nishi-Umeda Building

3,450

3,656

3,830

0.3

NRE Yotsubashi Building

4,000

4,449

5,210

0.4

NRE Hiroshima Building

2,280

2,453

2,920

0.2

NMF Hakata Ekimae Building

4,210

4,221

6,280

0.5

NMF Tenjin-Minami Building

2,230

2,011

3,060

0.2

474,980

478,315

557,005

43.2- 49 -

Use

RetailArea

GreaterTokyo
area

Acquisition price Carrying amount(Millions of Yen) (Millions of Yen)
(Note 1)
(Note 2)

Property name

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

Investment
share
(%)
(Note 4)

Appraiser

Yokosuka More’s City

13,64013,70415,300

1.2

The Tanizawa Sogo
Appraisal Co., Ltd.

Recipe SHIMOKITA

10,407

10,127

10,900

0.8

Japan Valuers Co., Ltd.

Kawasaki More’s

6,080

6,536

8,500

0.7

EQUINIA Shinjuku

4,260

4,301

5,200

0.4

EQUINA Ikebukuro

3,990

3,993

4,550

0.4

covirna machida

3,440

3,817

3,960

0.3

Nitori Makuhari

3,080

2,591

3,970

0.3

Konami Sports Club Fuchu

2,730

2,512

3,390

0.3

FESTA SQUARE

2,600

2,157

3,660

0.3

GEMS Shibuya

2,490

2,328

2,790

0.2

EQUINIA Aobadai

1,560

1,551

2,840

0.2

Megalos Kanagawa

1,000

940

1,550

0.1

Mitsubishi Motors Meguro (Land)

2,740

2,764

3,490

0.3

Mitsubishi Motors Chofu (Land)

1,760

1,776

1,730

0.1

Mitsubishi Motors Nerima (Land)

1,240

1,251

1,520

0.1

Mitsubishi Motors Kawasaki (Land)

950

959

1,300

0.1

Mitsubishi Motors Sekimachi (Land)

600

606

752

0.1

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

450

455

537

0.0

370

375

431

0.0

Welcia Kawagoe Shinmeicho (Land)

350

355

438

0.0

Mitsubishi Motors Edogawa (Land)

200

204

178

0.0

Mitsubishi Motors Sayama (Land)

160

163

188

0.0

NRE Kichijoji Building

10,41010,06911,400

0.9

GEMS Ichigaya

2,080

2,010

2,120

0.2

6,840

6,716

7,560

0.6

2,720

2,519

2,820

0.2

Summit Store Naritahigashi (Land)

700

747

801

0.1

GEMS Daimon

2,060

1,989

2,000

0.2

GEMS Shin-Nihonbashi (Note 8)

1,500

1,455

1,500

0.1

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

Summit Store Mukodaicho

5,100

5,023

5,330

0.4

Japan Valuers Co., Ltd.

GEMS Shinbashi

2,810

2,793

2,690

0.2

GEMS Kayabacho

2,594

2,537

2,600

0.2

Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.

Mitsubishi Motors Takaido (Land)

850

859

856

0.1

Mitsubishi
Motors
Katsushika(Land) (Note 7)
Mitsubishi Motors Higashikurume(Land)

762

770

882

0.1

800

808

921

0.1

Mitsubishi Motors Setagaya (Land)

770

779

1,210

0.1

Sagamihara Shopping Center
Musashiurawa(Note 6)

Shopping

Square- 50 -

Use

Property nameArea

GreaterTokyo
area

Retail
Other
areas

Other
areas
Logistics subtotal

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

Investment
share
(%)
(Note 4)

Appraiser

Summit Store Honamanuma

2,160

2,149

2,960

0.2

GEMS Shin-Yokohama

1,820

1,753

1,840

0.1

GEMS Sangenjaya

1,815

1,803

1,790

0.1

JLL Morii Valuation &Advisory K.K.
Daiwa Real EstateAppraisal Co., Ltd.
JLL Morii Valuation &Advisory K.K.

Universal CityWalk Osaka

17,63916,932

18,400

1.4

Japan Valuers Co., Ltd.

Izumiya SC Senrioka (Note 8)

8,930

8,450

12,400

1.0

Izumiya SC Yao (Note 8)

4,406

3,969

5,710

0.4

Izumiya SC Obayashi (Note 8)

3,020

3,106

3,850

0.3

EQUINIA Aobadori

1,640

1,267

1,820

0.1

MEL Building

1,060

1,053

1,210

0.1

nORBESA

8,500

8,747

8,440

0.7

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
Institute

Nakaza Cui-daore Building

11,60012,1439,750

0.8Japan Valuers Co., Ltd.

NMF Kobe Myodani Building

3,560

3,574

3,680

0.3

Japan Valuers Co., Ltd.

GEMS Namba

3,800

3,764

4,300

0.3

JLL Morii Valuation &Advisory K.K.

174,044

171,274

196,014

15.2

Landport Urayasu

17,40015,68324,6001.9

Landport Itabashi

15,71014,311

22,2001.7

Landport Kawagoe

13,700

11,39019,8001.5

Landport Atsugi

11,4109,718

13,500

1.0

Sagamihara Tana Logistics Center

10,6009,409

14,200

1.1

Sagamihara Onodai Logistics Center

8,700

8,001

12,600

1.0

Landport Hachioji

8,250

6,990

11,2000.9

Landport Kasukabe

7,340

5,983

9,640

0.7

Atsugi Minami Logistics Center B
Tower

4,590

4,023

6,640

0.5

Hanyu Logistics Center

3,810

3,153

5,110

0.4

Kawaguchi Logistics Center B
Tower
Kawaguchi Logistics Center A
Tower
Atsugi Minami Logistics Center A
Tower

3,750

3,497

4,990

0.4

2,830

2,711

3,940

0.3

2,690

2,487

3,860

0.3

Kawaguchi Ryoke Logistics Center

10,790

10,20014,600

1.1

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

Landport Kashiwa Shonan II

10,80010,422

12,800

1.0

Japan Valuers Co., Ltd.

Landport Kashiwa Shonan I

9,900

9,523

11,600

0.9

Japan Valuers Co., Ltd.

Landport Hachioji II

9,230

9,287

11,400

0.9

Japan Valuers Co., Ltd.

Landport Iwatsuki

6,090

5,974

6,860

0.5

Japan Valuers Co., Ltd.

Landport Ome I

13,64013,457

15,200

1.2

Japan Valuers Co., Ltd.

Retail subtotal

GreaterTokyo
Logistarea
ics

Acquisition price Carrying amount(Millions of Yen) (Millions of Yen)
(Note 1)
(Note 2)

Landport Higashi-Narashino

11,872

11,593

16,800

1.3

Japan Valuers Co., Ltd.

Landport Ome II

14,62014,573

16,600

1.3

Japan Valuers Co., Ltd.

Landport Ome III

17,00017,075

19,400

1.5

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

Hirakata Kuzuha Logistics Center

3,460

3,255

4,430

0.3

218,182

202,726

281,970

21.8- 51 -Use

Area

Investment
share
(%)
(Note 4)

Appraiser

3,400

3,144

3,950

0.3

PROUD FLAT Yoyogi Uehara

989

940

1,100

0.1

PROUD FLAT Hatsudai

713

672

781

0.1

750

697

767

0.1

PROUD FLAT Gakugei Daigaku

746

688

913

0.1

PROUD FLAT Meguro Gyoninzaka

939

870

1,140

0.1

PROUD FLAT Sumida Riverside

2,280

2,039

2,860

0.2

PROUD FLAT Kagurazaka

1,590

1,435

1,780

0.1

PROUD FLAT Waseda

1,110

995

1,290

0.1

932

846

1,110

0.1

PROUD FLAT Sangen Jaya

1,190

1,073

1,350

0.1

PROUD FLAT Kamata

1,160

1,012

1,370

0.1

PROUD FLAT Kamata II

3,320

2,938

3,620

0.3

PROUD FLAT Shinotsuka

623

549

586

0.0

PROUD FLAT Kiyosumi Shirakawa

928

822

1,070

0.1

PROUD FLAT Monzen Nakacho II

652

586

670

0.1

PROUD FLAT Monzen Nakacho I

1,030

907

1,020

0.1

PROUD FLAT Fujimidai

1,470

1,320

2,090

0.2

PROUD FLAT Asakusa Komagata

1,920

1,672

2,560

0.2

PROUD FLAT Yokohama

2,090

1,855

2,570

0.2

PROUD FLAT Kamioooka

2,710

2,402

3,070

0.2

PROUD FLAT Tsurumi II

1,650

1,455

2,230

0.2

PRIME URBAN Azabu Juban

1,100

1,093

1,130

0.1

PRIME URBAN Akasaka

938

919

1,080

0.1

PRIME URBAN Tamachi

972

915

1,120

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.
Daiwa Real EstateAppraisal Co., Ltd.
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.

PRIME URBAN Shibaura LOFT

1,830

1,674

2,130

0.2

Japan Valuers Co., Ltd.

PRIME URBAN Yoyogi

359

340

357

0.0

PRIME URBAN Ebisu II

1,140

1,099

1,720

0.1

PRIME URBAN Bancho

1,090

1,042

1,220

0.1

PRIME URBAN Chiyoda Fujimi

679

646

716

0.1

PRIME URBAN Iidabashi

2,040

1,890

2,100

0.2

PRIME URBAN Ebisu

1,260

1,234

1,400

0.1

PRIME URBAN Naka Meguro

1,410

1,352

1,550

0.1

PRIME URBAN Gakugei Daigaku

775

718

905

0.1

PRIME URBAN Senzoku

474

444

533

0.0

PRIME URBAN Meguro Riverside

414

374

457

0.0

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.

PRIME URBAN Meguro Ohashi
Hills

2,970

2,756

3,370

0.3

Japan Valuers Co., Ltd.

PROUD
Kawadacho

GreaterTokyo
area

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

PROUD FLAT Shirokane Takanawa

PROUD
Sakuragaoka

ResidentialAcquisition price Carrying amount(Millions of Yen) (Millions of Yen)
(Note 1)
(Note 2)

Property name

FLAT

FLAT
(Note 7)

Shibuya

Shinjuku- 52 -

Use

Resid
entialArea

GreaterTokyo
area

Acquisition price Carrying amount(Millions of Yen) (Millions of Yen)
(Note 1)
(Note 2)

Property name

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

Investment
share
(%)
(Note 4)

Appraiser

PRIME URBAN Meguro Aobadai

1,310

1,244

1,990

0.2

PRIME URBAN Gakugei Daigaku
II

1,080

1,021

1,520

0.1

PRIME URBAN Naka Meguro II

2,850

2,796

3,910

0.3

PRIME URBAN Kachidoki

2,570

2,574

2,920

0.2

Japan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
Institute
Chuo
Real
EstateAppraisal Co., Ltd.

PRIME URBAN Shinkawa

2,100

2,096

2,610

0.2

Japan Valuers Co., Ltd.

PRIME
URBAN
Yokoyamacho
PRIME
URBAN
HamachoNihonbashi

4,220

3,845

5,110

0.4

Japan Valuers Co., Ltd.

Nihonbashi

1,550

1,446

2,250

0.2

Japan Real
Institute

PRIME URBAN Hongo Ikizaka

557

511

653

0.1

Japan Valuers Co., Ltd.

EstatePRIME URBAN Hakusan

866

757

964

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Yotsuya Gaien
Higashi

1,490

1,428

1,520

0.1

PRIME URBAN Nishi Shinjuku I

1,090

1,011

1,370

0.1

PRIME URBAN Nishi Shinjuku II

885

803

1,020

0.1

PRIME
URBAN
Naitomachi

430

418

498

0.0

PRIME URBAN Nishi Waseda

421

377

507

0.0

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.

PRIME URBAN Shinjuku Ochiai

594

598

634

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Mejiro

1,430

1,352

1,910

0.1

PRIME URBAN Kagurazaka

2,900

2,652

4,040

0.3

718

707

694

0.1

717

728

725

0.1

PRIME URBAN Sangen Jaya

724

670

811

0.1

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

PRIME
URBAN
Minami
Karasuyama
PRIME
URBAN
Karasuyama
Galleria

667

602

817

0.1

Japan Valuers Co., Ltd.

549

497

639

0.0

PRIME URBAN Karasuyama Court

338

307

395

0.0

Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.

PRIME URBAN Chitose Funabashi

746

682

762

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Yoga

1,390

1,284

1,910

0.1

PRIME URBAN Shinagawa Nishi

494

502

472

0.0

PRIME URBAN Osaki

1,860

1,752

1,870

0.1

PRIME URBAN Oimachi II

1,040

1,117

1,180

0.1

PRIME URBAN Yukigaya

951

931

775

0.1

PRIME URBAN Omori

905

824

932

0.1

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.

PRIME
URBAN
Denenchofu
Minami
PRIME
URBAN
Nagahara
Kamiikedai
PRIME
URBAN
NakanoKamitakada

774

691

692

0.1

Japan Valuers Co., Ltd.

1,720

1,624

2,180

0.2

Japan Real
Institute

498

445

558

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Nishi Ogikubo

414

391

470

0.0

PRIME URBAN Nishi Ogikubo II

1,790

1,710

2,250

0.2

PRIME URBAN Otsuka

730

664

786

0.1

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

Shinjuku

PRIME URBAN Sangen Jaya III
PRIME
URBAN
Karasuyama

Chitose- 53 -

EstateUse

Area

Acquisition price Carrying amount(Millions of Yen) (Millions of Yen)
(Note 1)
(Note 2)

Property nameAppraiser

437

441

455

0.0

PRIME URBAN Ikebukuro

3,800

3,489

5,350

0.4

PRIME URBAN Monzen Nakacho

2,420

2,232

2,860

0.2

PRIME URBAN Kameido

779

687

864

0.1

PRIME URBAN Sumiyoshi

632

564

592

0.0

PRIME URBAN Kinshi Koen

1,290

1,130

1,370

0.1

PRIME URBAN Kinshicho

758

684

809

0.1

PRIME URBAN Hirai

722

648

800

0.1

PRIME URBAN Kasai

640

570

679

0.1

PRIME URBAN Kasai II

981

850

1,030

0.1

1,140

1,001

1,380

0.1

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.
Daiwa Real EstateAppraisal Co., Ltd.

1,080

955

1,380

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Asakusa

384

379

354

0.0

PRIME URBAN Machiya South
Court

1,910

1,798

2,460

0.2

Chuo
Real
EstateAppraisal Co., Ltd.
Japan Real Estate
Institute

PRIME URBAN Musashi Koganei

1,910

1,948

1,960

0.2

Japan Valuers Co., Ltd.

PRIME URBAN Musashino Hills

1,280

1,303

1,430

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Koganei Honcho

791

741

915

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Kumegawa

1,520

1,288

1,720

0.1

Japan Real
Institute

PRIME URBAN Musashi Kosugi
comodo

1,940

1,918

2,570

0.2

Japan Valuers Co., Ltd.

PRIME URBAN Kawasaki

962

948

1,080

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Shinyurigaoka

1,020

909

1,360

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Tsurumi Teraya

493

489

516

0.0

PRIME URBAN Urayasu

804

730

820

0.1

PRIME URBAN Gyotoku I

633

588

702

0.1

PRIME URBAN Gyotoku II

730

680

779

0.1

PRIME URBAN Gyotoku Ekimae

488

433

575

0.0

PRIME URBAN Gyotoku Ekimae II

469

443

661

0.1

PRIME URBAN Gyotoku III

747

710

1,070

0.1

Japan Real
InstituteJapan Real
InstituteJapan Real
InstituteJapan Real
InstituteJapan Real
InstituteJapan Real
InstituteJapan Real
Institute

PRIME URBAN Kawaguchi

1,580

1,447

1,810

0.1

Japan Valuers Co., Ltd.

PROUD FLAT Hatchobori

920

901

1,290

0.1

PROUD FLAT Itabashi Honcho

720

682

990

0.1

Japan Real
InstituteJapan Real
Institute

PRIME URBAN Meguro Mita

1,058

1,106

1,150

0.1

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

PRIME URBAN Kasai East

GreaterTokyo
area

Investment
share
(%)
(Note 4)PRIME URBAN Komagome

PRIME
URBAN
KuyakushomaeResidentialOpinion of value
at end of period(Millions of Yen)
(Note 3)Itabashi

Fukasawa House Towers H&I

7,140

6,928

8,710

0.7

PRIME URBAN Toyosu

5,290

4,935

6,220

0.5

2,850

2,730

3,420

0.3

1,320

1,238

1,470

0.1

PRIME
URBAN
Kayabacho
PRIME URBAN Yoga II

Nihonbashi- 54 -

EstateEstateEstateEstateEstateEstateEstateEstateEstateEstateUse

Area

Greater
Tokyo
area

Resid
ential

Other
areas

Acquisition price Carrying amount(Millions of Yen) (Millions of Yen)
(Note 1)
(Note 2)

Property name

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

Investment
share
(%)
(Note 4)

Appraiser

PRIME URBAN Musashi Koganei
II
PRIME URBAN Gakugei daigaku
parkfront

1,310

1,209

1,580

0.1

1,300

1,351

1,500

0.1

PROUD FLAT Omori Ⅲ

1,110

1,097

1,450

0.1

PROUD FLAT Kinshicho

785

766

1,040

0.1

PROUD FLAT Sangenjaya II

2,750

2,740

3,230

0.3

PROUD FLAT Sotokanda

2,280

2,279

2,850

0.2

PROUD FLAT Noborito

1,216

1,203

1,570

0.1

PROUD FLAT Yoyogi Hachiman

966

971

1,210

0.1

PROUD FLAT Nakaochiai

844

842

1,020

0.1

PROUD FLAT Shibuya Tomigaya

3,960

3,997

5,060

0.4

PROUD FLAT Miyazakidai

1,390

1,423

1,660

0.1

PROUD FLAT Asakusabashi III

1,230

1,256

1,370

0.1

PROUD FLAT Togoshi-Koen

2,580

2,636

2,890

0.2

PROUD FLAT Togoshi-Ginza

2,550

2,628

2,760

0.2

PRIME URBAN Higashi Nakano
Court

7,020

7,292

8,490

0.7

PROUD FLAT Nezu Yanaka

1,400

1,450

1,660

0.1

PROUD FLAT Itsutsubashi

652

537

714

0.1

PROUD FLAT Kawaramachi

735

600

556

0.0

PROUD FLAT Shin Osaka

1,620

1,343

2,200

0.2

PRIME URBAN Kita Juyo Jo

274

235

295

0.0

PRIME URBAN Odori Koen I

502

426

553

0.0

PRIME URBAN Odori Koen II

334

289

340

0.0

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.
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.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal 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
Institute

PRIME URBAN Kita Juichi Jo

547

457

589

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Miyanosawa

475

391

483

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Odori Higashi

394

331

421

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Sapporo Idaimae

616

515

635

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Sapporo Riverfront

4,480

3,864

4,810

0.4

Japan Valuers Co., Ltd.

PRIME URBAN Kita Sanjo Dori

1,730

1,461

1,980

0.2

Japan Valuers Co., Ltd.

PRIME
Icchome

1,140

978

972

0.1

Japan Valuers Co., Ltd.

466

382

346

0.0

Japan Valuers Co., Ltd.

949

924

1,040

0.1

Japan Real
Institute

PRIME URBAN Kanayama

553

468

581

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Kamimaezu

1,590

1,374

1,670

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Izumi

3,770

3,258

3,850

0.3

Japan Valuers Co., Ltd.

1,810

1,558

2,390

0.2

Japan Real
Institute

URBAN

Nagamachi

PRIME URBAN Yaotome Chuo
PRIME
URBAN
Amamiya

PRIME
Honmachi

URBAN

Tsutsumidori

Sakaisuji- 55 -

EstateEstateUse

Resid
ential

Area

Other
areas

Acquisition price Carrying amount(Millions of Yen) (Millions of Yen)
(Note 1)
(Note 2)

Property name

Other
areas

588

506

659

0.1

PRIME URBAN Yakuin Minami

265

225

312

0.0

PRIME URBAN Kashii

398

326

293

0.0

PRIME URBAN Hakata Higashi

622

521

497

0.0

PRIME URBAN Chihaya

604

523

533

0.0

Serenite Shinsaibashi Grande

5,567

5,566

6,410

0.5

Other

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.

208,021

195,265

244,099

18.9

3,600

3,631

3,740

0.3

Japan Valuers Co., Ltd.

Comfort Inn Naha Tomari Port

2,650

2,709

2,520

0.2

Japan Valuers Co., Ltd.

6,250

6,341

6,260

0.5

4,900

5,136

5,500

0.4

4,900

5,136

5,500

0.4

1,086,378

1,059,060

1,290,848

100.0

Ryotokuji
University
UrayasuCampus (Land)

Other subtotal
Total(Note 1)

Appraiser

Hotel Vista Sapporo Odori

Hotel subtotal
GreaterTokyo
area

Investment
share
(%)
(Note 4)PRIME URBAN Hakata

Residential subtotal
HotelsOpinion of value
at end of period(Millions of Yen)
(Note 3)

Shin-

Japan Real
Institute

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 thesales 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 15th fiscal period-end (February28, 2023) 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 orinvestigation value, depending on the real estate appraiser conducting the appraisal and the method or timing of the appraisal. In addition, the appraisalof 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 isused 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 of(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 this(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 thisthe entire portfolio (293 properties in total). The figures are rounded to the first decimal place. Accordingly, the sum total may not be exactly 100.0.
quasi co-ownership interest ratio is stated for opinion of value and carrying price.
quasi co-ownership interest ratio is stated for opinion of value and carrying price.
(Note 7)

NMF has sold a part of land area of the property. Therefore, the acquisition price given represents the acquisition price of the entire asset less theamount equivalent to the book value of the transferred portion at the time of execution of the transfer.
(Note 8)

NMF changed the name of the following portfolio properties as of January 31, 2023.
Use of Property

Former Name

New Name

RetailGEMS Kanda

GEMS Shin-Nihonbashi- 56 -

C. Status of Capital Expenditures(a)

Schedule of Capital Expenditures
Of the scheduled amount of capital expenditures associated with renovation and other work
planned (or completed) as of the date of this document’s publication for the assets held at the endof the 15th fiscal period, the following are the major capital expenditures. Please note that thescheduled construction cost listed below include the portion charged to expenses in accounting.

NRE Sapporo Building(Sapporo City, Hokkaido

Renewal of outdoor AC units(phase II/III)

Scheduled construction cost(Thousands of Yen)
AmountTotal
Scheduled period
paidamountTotal amount during thealready
15th fiscal
paid
periodFrom Dec. 2022
52,800To Jul. 2023

NRE Sapporo Building(Sapporo City, Hokkaido)

Renewal of outdoor AC units(phase III/III)

From Aug. 2023
To Nov. 2023

60,900--PRIME URBAN Sapporo Riverfront Renewal of electric water(Sapporo City, Hokkaido)
heaterFrom Apr. 2023
To Jul. 2023

53,950--PRIME URBAN Kita Sanjo Dori
(Sapporo City, Hokkaido)
PRIME URBAN Shinjuku
Naitomachi(Shinjuku Ward, Tokyo)
PRIME URBAN Kinshicho(Sumida Ward, Tokyo)
PRIME URBAN Denenchofu
Minami(Ota Ward, Tokyo)
PRIME URBAN Nagahara
Kamiikedai(Ota Ward, Tokyo)
NMF Kawasaki Higashiguchi
Building(Kawasaki City, Kanagawa)

From Apr. 2023
To Aug. 2023

82,000--From Mar. 2023
To Aug. 2023

5,900

-

-

Repair of exterior wall

From Feb. 2023
To Jun. 2023

20,600--

Repair of exterior wall

From May. 2023
To Aug. 2023

16,900--

Repair of exterior wall

From Mar. 2023
To Jul. 2023

28,900--From Apr. 2022
To Aug. 2023

89,000--Name of real estate, etc.
(Location)

PurposeRepair of exterior wall
Replacement of elevator
components

Renewal of emergency power
generator

From Feb. 2023
To Jun. 2023

59,200--EQUINIA Aobadori(Sendai City, Miyagi)

Improvement of exterior wall
coating (three-face fluoride
coating)Renewal of air conditioner
system (phase I/IV)

From Mar. 2023
To Aug. 2023

62,000--EQUINIA Aobadori(Sendai City, Miyagi)

Renewal of air conditioner
system (phase II/IV)

From Sep. 2023
To Feb. 2024

34,000--EQUINIA Aobadori(Sendai City, Miyagi)

Renewal of air conditioner
system (phase III/IV)

From Mar. 2024
To Sep. 2024

39,000--EQUINIA Aobadori(Sendai City, Miyagi)

Renewal of air conditioner
system (phase IV/IV)

From Sep. 2024
To Dec. 2024

20,000--MEL Building(Sendai City, Miyagi)

Renewal of air conditioner
systemFrom Apr. 2023
To Jun. 2023

25,000--

NRE Tennozu Building(Shinagawa Ward, Tokyo)

Repair of restroom (phase
I/IX)

From Dec. 2022
To Aug. 2023

32,787--

NRE Tennozu Building(Shinagawa Ward, Tokyo)

Repair of restroom (phase

From Sep. 2023
To Feb. 2024

94,784--

NRE Tennozu Building(Shinagawa Ward, Tokyo)

Repair of restroom (phase

From Mar. 2024
To Aug. 2024

95,915--NMF Sendai Aoba-dori Building(Sendai City, Miyagi)

II/IX)
III/IX)- 57 -

NRE Tennozu Building(Shinagawa Ward, Tokyo)

Repair of restroom (phase
IV/IX)

From Sep. 2024
To Feb. 2025

83,923--

NRE Tennozu Building(Shinagawa Ward, Tokyo)

Repair of restroom (phase

From Mar. 2025
To Aug. 2025

51,860--

NRE Tennozu Building(Shinagawa Ward, Tokyo)

Repair of restroom (phase

From Sep. 2025
To Feb. 2026

75,237--

NRE Tennozu Building(Shinagawa Ward, Tokyo)

Repair of restroom (phase
VII/IX)

From Mar. 2026
To Aug. 2026

118,757--

NRE Tennozu Building(Shinagawa Ward, Tokyo)

Repair of restroom (phase
VIII/IX)

From Sep. 2026
To Feb. 2027

105,408--

NRE Tennozu Building(Shinagawa Ward, Tokyo)

Repair of restroom (phase
IX/IX)

From Mar. 2027
To Jun. 2027

19,770--

NF Hongo Building(Bunkyo Ward, Tokyo)

Renewal of air conditioning(phase I/III)

From Feb. 2023
To Aug. 2023

99,800

NF Hongo Building(Bunkyo Ward, Tokyo)

Renewal of air conditioning(phase II/III)

From Sep. 2023
To Feb. 2024

99,900--

NF Hongo Building(Bunkyo Ward, Tokyo)

Renewal of air conditioning(phase III/III)

From Mar. 2024
To Aug. 2024

97,300--54,496--

51,600--NRE Yotsubashi Building(Osaka City, Osaka)
NRE Yotsubashi Building(Osaka City, Osaka)

V/IX)
VI/IX)

From Mar. 2023
To Aug. 2023
From Sep. 2023
Renewal of AHU (phase II/V)
To Feb. 2024
Renewal of AHU (phase I/V)

NRE Yotsubashi Building(Osaka City, Osaka)Renewal of AHU (phase
III/V)

From Mar. 2024
To Aug. 2024

51,550--NRE Yotsubashi Building(Osaka City, Osaka)Renewal of AHU (phase
IV/V)

From Sep. 2024
To Feb. 2025

51,417--

NRE Yotsubashi Building(Osaka City, Osaka)Renewal of AHU (phase
V/V)

From Mar. 2025
To Aug. 2025

52,739--(Note) Total amount already paid does not include the amount paid during the 15th fiscal period.

(b)Capital Expenditures during the 15th Fiscal Period
The following is an overview of the major construction work falling under the category of capital
expenditures that was conducted during the 15th fiscal period for the assets held as of the end of
the 15th fiscal period. Capital expenditures during the 15th fiscal period were ¥2,341,330
thousand and, when combined with the ¥1,434,180 thousand repair expenses classified as
expenses during the 15th fiscal period, a total of ¥3,775,511 thousand in construction work was
implemented. The following construction cost shows the amount equivalent to capital
expenditures.

Name of real estate, etc.
(Location)
Sapporo North Plaza(Sapporo City, Hokkaido)
NRE Sapporo Building(Sapporo City, Hokkaido)
Comfort Inn Naha Tomari Port
(Naha City, Okinawa)
PRIME URBAN Koganei Honcho(Koganei City, Tokyo)
Other real estate,etc.

PurposeRenewal of air conditioner(phaseⅣ/Ⅳ)
Renewal of outdoor AC units(phase I/III)

Periodsystem From Sep. 2022
To Nov. 2022
From Apr. 2022
To Nov. 2022
From Jan. 2023
Renewal of air-conditioner in common area
To Feb. 2023
From Nov. 2022
Repair of block wall
To Jan. 2023
From Sep. 2022
Improvement of features
To Feb. 2023
Total

Construction cost(Thousands of Yen)
68,39548,472
27,5539,363
2,187,545
2,341,330- 58 -