(Reference) SUMMARY OF FINANCIAL RESULTS (REIT)
For the 10th Fiscal Period Ended August 31, 2020
October 14, 2020
REIT securities issuer:
Securities code:
Representative:

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

Asset Management Company:
Representative:
Inquiries:

Nomura Real Estate Asset Management Co., Ltd.
Koki Miura, President and Chief Executive Officer
Hiroshi Ishigooka, Head of NMF Investment Management Group

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

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

TEL: +81-3-3365-8767

November 27, 2020
November 20, 2020
Yes
Yes
[Amounts less than one million yen are truncated]

1. Financial Results for the 10th Fiscal Period (from March 1, 2020 to August 31, 2020)(1) Operating Results[ figures are the rate of increase (decrease) compared with the previous period]
Operating revenues
Period ended
August 31, 2020
February 29, 2020

million yen
37,57736,927

Operating profit
%
1.8
0.8

Net income
per unit
Period ended
August 31, 2020
February 29, 2020

million yen
15,212
14,673

Ordinary income
%
3.7
2.9

Return on unitholders’equityyen

million yen
12,803
12,175%
5.2
4.1

Ratio ofordinary income
to total assets

%

2,714
2,642

Net income%

million yen
12,79912,1885.0
4.3

Ratio ofordinary income
to operating revenues
%

2.0
2.0

%

1.1
1.0

34.1
33.0

(2) Distributions

Period ended
August 31, 2020
February 29, 2020

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

yen
2,714
2,585

million yen
12,797
12,188Distribution
in excess of
net income per
unit

Total
distributions
in excess of
net income

yenmillion yen
2,843
3,272

603
694

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

3,317
3,279

million yen
15,64015,461yen

Distribution
payout ratio

Ratio ofdistributions to
net assets

%

%

99.9
100.0

2.0
1.9

(Note 1) Of the ¥694 distribution in excess of net income per unit in the fiscal period ended February 29, 2020, ¥368 is a distribution of the allowance fortemporary difference adjustments and ¥326 is other distributions in excess of net income. Furthermore, the ratio of decreasing surplus is 0.003.
Of the ¥603 distribution in excess of net income per unit in the fiscal period ended August 31, 2020, ¥377 is a distribution of the allowance fortemporary difference adjustments and ¥226 is other distributions in excess of net income. Furthermore, the ratio of decreasing surplus is 0.002.
(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
August 31, 2020
February 29, 2020

million yen
1,197,766
1,193,471

Net assets
million yen
625,505
627,868

Net assets to total assets

Net assets per unit

%
52.2
52.6

yen
132,657
133,158

(4) Status of Cash FlowsNet cashprovided by (used in)operating activities
Period ended
August 31, 2020
February 29, 2020

million yen
19,541
21,958Net cashprovided by (used in)investing activities

Net cashprovided by (used in)financing activities

million yen(23,626)(22,255)

Cash andcash equivalents
at end of period

million yen(8,347)
14,475

million yen
75,16687,5992. Earnings Forecasts for the 11th Fiscal Period (from September 1, 2020 to February 28, 2021) and the 12th Fiscal
Period (from March 1, 2021 to August 31, 2021)[ figures are the ratio of increase (decrease) compared with the previous period]
Distribution
Distribution
Distribution
per unit
per unit
in excess of net(excluding(including
Operating profit
Ordinary income
Net income
income per
distribution
distribution
in excess ofin excess of net
unit

Operatingrevenues

net income)

Period ending

million yen%

million yen

February 28, 2021

38,3472.0

August 31, 2021

38,3900.1%

million yen%

income)%million yen

yen

yen

yen

15,413

1.3

13,0852.2

13,084

2.2

2,774

556

3,330

15,197(1.4)

12,882(1.5)

12,881

(1.5)

2,731

557

3,288

(Reference) Forecasted net income per unit
For the fiscal period ending February 28, 2021: ¥2,774
For the fiscal period ending August 31, 2021:¥2,731*Other(1) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatements① Changes in accounting policies accompanying amendments to accounting standards, etc.:② Changes in accounting policies other than those in ①:③ Changes in accounting estimates:④ Retrospective restatements:

None
None
None
None

(2) Number of Investment Units Issued and Treasury Investment Units① Number of investment units issued (including treasury investment units)
As of August 31, 2020:
4,715,200 units
As of February 29, 2020:
4,715,200 units② Number of treasury investment units
As of August 31, 2020:– units
As of February 29, 2020:– units(Note) For the number of investment units used as the basis for calculation of net income per unit, please refer to“Notes on Per Unit Information” on page 30.
* 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 February 28, 2021 (11th fiscal
period: September 1, 2020 to February 28, 2021)and the Fiscal Period Ending August 31, 2021 (12th fiscal
period: March 1, 2021 to August 31, 2021) ” on page 7.

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 ....................................................................... 2(1) Management Status ...................................................................... 22.

Financial Statements ..................................................................... 10(1) Balance Sheet .......................................................................... 10(2) Statement of Income and Retained Earnings .................................................. 13(3) Statement of Changes in Net Assets ......................................................... 14(4) Statement of Cash Distributions ............................................................ 18(5) Statement of Cash Flows ................................................................. 20(6) Notes Concerning the Going Concern Assumption ............................................. 22(7) Notes Concerning Significant Accounting Policies .............................................. 22(8) Notes to Financial Statements ............................................................. 25(9) Increase (Decrease) in Total Number of Investment Units Issued and Outstanding ..................... 31

3. Reference Information ...................................................................... 33(1) Investment Status ....................................................................... 33(2) Investment Assets ...................................................................... 34

1

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

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)), specifically realestate, leaseholds of real estate, surface rights, and the beneficial interests of trusts formed by entrustmentof only these assets, to secure stable income over the medium to long term and steady growth of assets
under management (Note). In order to realize this basic policy, NMF adopts an investment strategy that centerson 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” which enables
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, and a strong property
supply and operation support system based on the “leasing value chain” with the Sponsor, 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 thesteady growth of assets under management.
(Note)

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

A. Investment Environment(Japanese Economy)
Recently in the Japanese economy, the revised GDP (seasonally adjusted) for the period from April to June
recorded a year-on-year decrease of 28.1 on an annualized basis, the largest decrease in the post-war period.
This was due to the emergency declaration made by the government in April 2020 for the purpose of
suppressing COVID-19 that resulted in individuals staying indoors and limitations on the operations ofstores. On the other hand, economic indicators have been improving recently due to recovery in personal
consumption activities and resumption of economic activities with the lifting of the state of emergency andeconomic measures implemented by the Japanese government..
(Real Estate Leasing Market)
In the real estate leasing market, the situation varies according to sector.
With regard to the office sector, the market had been performing well due to strong demand for increased
floor space and expansion-driven relocations in Tokyo up to early spring of 2020. However, due todecreased office demand stemming from fear that COVID-19 would result in an economic depression, thevacancy rate has increased and advertised rents have fallen.
In the retail facility sector, while sales continue to be strong for supermarkets and drugstores even after
the spread of COVID-19, sales at convenience stores, department stores, and for the restaurant businesssubject to the emergency declaration have declined sharply from the same period last year. In particular, therestaurant business is experiencing a severe situation even after the lifting of the emergency declaration
especially for izakaya (Japanese pubs) since the virus had not been completely contained.
In the logistics facility sector, overall performance has been stable buoyed by the continuing firm demand
from e-commerce-related operators and third-party logistics providers (Note), NMF’s main logistics facility
tenants. In the Greater Tokyo area, although a large supply of logistics facilities has continued, the vacancy
2Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

rate has decreased due to the greater-than-expected demand.
(Note)

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

Concerning the rental apartment sector, the number of inquiries and contracts decreased sharply during theperiod of the emergency declaration, but the majority of main cities have been experiencing a recovery
trend since June. Tokyo maintains a high occupancy rate and rents are also performing well. On the other
hand, during July, the number of people who moved out of the Greater Tokyo area (Tokyo, Kanagawa,Chiba, and Saitama prefectures) was greater than the number of people moved in, the first occurrence ofsuch since 2013, and future trends must be watched carefully. Occupancy status and rents in other major
regional cities such as Osaka and Nagoya are performing favorably overall.
In the hotel sector, the number of visitors fell sharply starting in April, recording a year-on-year decreaseof 99.9%, as restrictions were placed on people entering Japan from other countries beginning in March toprevent the spread of COVID-19. The number of domestic tourists also plummeted given the emergency
declaration and resulted in the occupancy rate falling significantly nationwide. The occupancy rate has
recovered in some regions due to the Go To Travel campaign promoting tourism, but it continues to be low
as COVID-19 is yet to be contained.
(Real Estate Transaction Market)
The trading volume of commercial real estate decreased sharply in the second quarter of 2020 (April toJune) year on year affected by the emergency declaration, but the trading volume for the third quarter (Julyto September) is expected to recover since the number of inquiries at real estate appraisers has been on arecovery trend since the lifting of the emergency declaration. Because the monetary easing policy of the
Bank of Japan is continuing, investors are keen on acquiring business real estate as an investment vehicle,
continuing to ramp up competition for acquisitions and keeping selling prices high.
(J-REIT Market)
Concerning the J-REIT market, the TSE REIT Index had been performing at a high level, closing at
2,250.65 points on February 20, 2020. However, with the sudden decline of the global stock market
following the spread of COVID-19, the TSE REIT Index faced a significant adjustment, falling to 1,145.53
points on March 19. Subsequently, given the global trend of monetary easing, the TSE REIT Index
recovered, closing at September 30, 2020 points on 1,726.66.
B. Management Performance
Under the circumstances described above in A. Investment Environment, NMF acquired 4 properties(PMO Hamamatsucho, GEMS Sangenjaya, Landport Higashi-Narashino and PROUD FLAT
Togoshi-Koen; total acquisition price: ¥20,647 million) during the fiscal period under review (10th fiscal
period). As a result, at the end of the fiscal period under review (as of August 31, 2020), NMF held 298
properties (total acquisition price: ¥1,051,686 million), the ratio of investment in the Greater Tokyo area
was 82.7%, the gross leasable area of the portfolio was 2,042,127.14m2 , and the portfolio remained highly
diversified.
Furthermore, after the end of the fiscal period under review, NMF acquired 1 property, Landport Ome
II (Acquisition price: ¥14,620 million), on October 1, 2020, .
In terms of property and facility management, as described above in A. Investment Environment, rental
demand is expanding, backed by the gradual recovery of the Japanese economy. Accordingly, the occupancy
rate of the entire portfolio as of the end of the fiscal period under review was stable and high, at 99.1. In
the office sector, the rental market has seen particularly notable recovery, with rises in newly advertised rents
and successful rent increases upon contract renewal driving the internal growth of the portfolio as a whole.
In terms of property and facility management, as described above in A. Investment Environment, there is adifference in impact from the COVID-19 pandemic on respective sectors. Although NMF offered rent
reduction/exemption (¥241 million) and deferment of rent as measures to support some of its retailtenants who closed due to the declaration of a state of emergency, the impact on entire portfolio revenue
was limited. Furthermore, in the office sector and the rental apartment sector, despite the rise in vacancy
rate and decrease in advertised rents alongside other moves in the market as a whole, NMF was able toachieve internal growth through continuous increase in newly advertised rents and successful rent increase
upon contract renewal. With stable management utilizing risk diversification, the occupancy rate of NMF’s
3

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

entire portfolio as of the end of the fiscal period under review was stable and high at 99.1%.
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 enhance theefficiency 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 promotes acquisitionof Green certification (Note2) under such policy. As of the end of the fiscal period under review, NMF has
acquired DBJ Green Building certification for a total of 84 properties and BELS certification for a total of
31 properties. As a result, the percentage of properties (Note3) with DBJ Green Building certification stood at
62.7 and that of BELS certification stood at 22.3.
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”,
reached at 51.2(Note4). NMF will continue to conduct its operations in consideration of ESG.
(Note 1) Green certification refers to either DBJ Green Building Certification, BELS Certification, or CASBEE for Real Estate.
(Note 2) The percentage figures of the certified properties are calculated based on total floor areas for properties excluding land owned by
NMF.
(Note 3) 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 borrowed ¥900 million on March 10, 2020 and ¥6,300
million on March 25, 2020, to use for a part of the acquisition of specified assets and related expenses.
NMF also refinanced ¥33,400 million in interest-bearing liabilities with approaching maturities. In order toextend maturities and diversify financing methods, NMF also issued investment corporation bonds (10-yearbonds (green bonds) totaling ¥7,000 million) on August 14, 2020 and allocated the funds to repayment ofexisting borrowings.
As a result, the balance of interest-bearing liabilities at the end of the fiscal period under review was¥517,884 million, and the ratio of interest-bearing liabilities to total assets (LTV) was 43.2%.
NMF's ratings at the end of the fiscal period under review are shown below. These ratings do not
represent judgments on NMF investment units. Concerning NMF investment units, there are no credit
ratings that credit rating agencies have provided or made available for inspection, nor are there credit
ratings that credit rating agencies are scheduled to provide or make available for inspection at the request of
NMF.
Credit rating agency

Rating description

Note

Japan Credit Rating Agency, Ltd. (JCR)

Long-term issuer rating:AA

Rating outlook:

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

Issuer rating:AA－

Rating outlook:

StableLong-term Issuer rating:A

Rating outlook:

StableShort-term Issuer rating

A-1

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

D. Business Performance and Distributions
In the 10th fiscal period, operating revenues totaled ¥37,577 million, operating profit reached¥15,212 million, ordinary income totaled ¥12,803 million, and net income came to ¥12,799 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¥15,640 million in
distributions (¥3,317 per investment unit). This figure was arrived at by adding to ¥12,799 million in
net income after taxes ¥2,622 million in amortization of goodwill, and by adding ¥218 million inconsideration of temporary decrease in operating revenues due to the impact of COVID-19
pandemic on per-unit distribution.
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)
4

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

came to ¥12,797 million (¥2,714 per investment unit). Distribution in excess of net income comprises
a distribution of ¥1,777 million (¥377 per investment unit) as allowance for temporary difference
adjustment and ¥1,065 million (¥226 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 by making
maximum use of the property management pipeline with a focus on strengthening its property brands. By
doing so, with both the external growth and the internal growth, NMF aims to secure the growth of
distribution and increase further unitholder value.

③

Forecasts of the Financial Results
Forecasts of the Financial Results for the fiscal period ending February 28, 2021 (11th fiscal period:
September 1, 2020 to February 28, 2021) and the fiscal period ending August 31, 2021 (12th fiscal period: March
1, 2021 to August 31, 2021) are stated below. Assumptions for forecasts of the financial results are referred to
the following “Assumptions Underlying Earnings Forecasts for the Fiscal Period Ending February 28, 2021 (11thfiscal period: September 1, 2020 to February 28, 2021) and the Fiscal Period Ending August 31, 2021 (12th fiscal
period: March 1, 2021 to August 31, 2021)”.

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)11th fiscal period ending

12th fiscal period ending

February 28, 2021

August 31, 2021

¥ 38,347 million¥ 15,413 million¥ 13,085 million¥ 13,084 million¥ 2,774¥ 38,390 million¥ 15,197 million¥ 12,882 million¥ 12,881 million¥ 2,731¥ 2,774¥ 2,731

¥ 556

¥ 557

¥ 3,330¥ 3,288④ Significant Subsequent Events
Not applicable.
(Reference)
A. Property acquisition
With regard to the assets stated below which NMF decided to acquire on September 23, 2020, NMF
completed the acquisition of Landport Ome II on October 1, 2020.
Property nameLandport Ome II

Type of asset

Real estate（Registry）

Location (Note 1)

2-9-13, Suehiro-cho, Ome City, Tokyo（Street）
2-9-13, Suehiro-cho, Ome City, Tokyo

Structure(Note 1)

RC, Alloy plating copper roofing, 3F

Land area(Note 1)

40,826.67 m2

Floor area (Note 1)

63,879.98 m2
5

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

Type of ownership（Land）Ownership（Building）Ownership

Completion date(Note 1)

February 20, 2020

Acquisition price (Note 2)¥14,620 million

Date of agreement
Date of acquisition
Seller

September 23, 2020
(Date of agreement on purchase and sale of realestate)October 1, 2020
(Date of delivery of real estate)
Nomura Real Estate Development, Co., Ltd.

(Note 1) Location (excluding Street), Structure, Land Area, Floor area and Completion Date are based on the information in thereal estate registry.
(Note 2) The acquisition price stated is that given on the real estate sale contract (or the sale contract of trust beneficiary interestin real estate) and does not include acquisition-related costs (property and other taxes, etc.).

6

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

Assumptions Underlying Earnings Forecasts
for the Fiscal Period Ending February 28, 2021 (11th fiscal period: September 1, 2020 to February 28, 2021) and the
Fiscal Period Ending August 31, 2021 (12th fiscal period: March 1, 2021 to August 31, 2021)
Item

Calculation period

Assumptions
・ Fiscal period ending February 28, 2021 (11th fiscal period): September 1, 2020 toFebruary 28, 2021
・ Fiscal period ending August 31, 2021 (12th fiscal period): March 1, 2021 to August 31,
2021

・ With respect to the 299 properties held by NMF as of this document’s publication, it isassumed that there will be no changes in assets under management (new property
acquisitions or sales of portfolio properties) through the end of the August 31, 2021
Assets Under Management(12th) fiscal period.
・ The forecasts may be revised due to actual changes in the portfolio.

Operating revenues

Operating expenses(excluding amortization
expenses for goodwill)・ Rental revenues are estimated based tenant trends, the presence of competing
properties nearby, real estate market conditions and other factors, with the assumptionthat there will be no delays in payment or failure to pay on the part of tenants.
・ Real estate rental expenses are expected to be ¥16,178 million in the February 28, 2021
(11th) fiscal period and ¥16,455 million in the August 31, 2021 (12th) fiscal period.
・ It is estimated that property and other taxes of ¥3,112 million in the February 28,2021(11th) fiscal period and ¥3,329 million in the August 31 ,2021(12th) fiscal period will berecorded as real estate rental expenses. In general, previous owners are reimbursed forthe property taxes and city planning taxes for the portion of the fiscal year in which theacquisition occurs from the time NMF acquires the assets onward. Accordingly,
property taxes and city planning taxes for the ten properties acquired in 2020 are
expected to be recorded as expenses starting from the August 2021 (12th ) fiscal
period.
・ Estimated property management costs (including building management fees andproperty management fees) of ¥2,876 million in the February 2021 (11th) fiscal periodand ¥2,904 million in the August 2021 (12th) fiscal period are expected to be recorded
as real estate rental expenses.
・ Expenses for building repairs and maintenance required for the fiscal period arerecorded as real estate rental expenses calculated based on the mid-to-long term repair
plans that NMF’s Asset Management Company has established. However, the actual
expenses for repairs and maintenance for the fiscal period may differ significantly fromestimates due to expenses for urgent repairs of damage to buildings caused by difficult
to foresee factors, significant year-on-year fluctuations in costs or non-periodic repair
expenses. Furthermore, expenses for repairs and maintenance are estimated at ¥1,490
million in the February 2021 (11h) fiscal period and ¥1,346 million in the August2021 (12th) fiscal period.
・ Depreciation of ¥5,470 million in the February 2021 (11th) fiscal period and ¥5,581
million in the August 2021 (12th) fiscal period is expected to be recorded as real estate
rental expenses.
・ Other operating expenses (including asset management fees, asset custody fees andgeneral administration fees) are estimated at ¥4,132 million in the February 2021
(11th) fiscal period and ¥4,115 million in the August 2021 (12th) fiscal period.
7

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

Item

Assumptions
・ 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 February 2021 (11th) and theAugust 2021 (12th) fiscal periods.

Amortization expenses
for goodwill

・ 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 tomake 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 ¥2,315
million in the February 2021 (11th) fiscal period and ¥2,301 million in the August 2021
Non-operating expenses(12th) fiscal period.
・ As of this document’s publication, the outstanding interest-bearing liabilities of NMF
are ¥517,884 million, consisting of ¥485,884 million in outstanding borrowings and¥32,000 million in investment corporation bonds.
・ Regarding the ¥29,442 million in borrowings that will come due by the end of the
February 2021 (11th) fiscal period and the ¥28,692 million in borrowings that will
come due in the August 2021 (12th) fiscal period (¥58,135 million in total), it isassumed that NMF will make scheduled, partial repayments of ¥42 million in each
Interest-bearing liabilities
the February 2021 (11th) fiscal period and the August 2021 (12th) fiscal period using
cash on 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 August2021 (12th) fiscal period.

Investment units

Distribution per unit

Distribution per unit inexcess of earnings per
unit

・ Forecasts are based on the number of investment units issued and outstanding as ofthis document’s publication, 4,715,200 units. NMF assumes that there will be no
additional issuance of new investment units through August 31, 2021 (the end of the
12th fiscal period).
・ The distribution per unit is calculated according to the distribution policy outlined
in NMF’s Articles of Incorporation.
・ NMF assumes that, of the allowance for temporary difference adjustments (“ATA”)
accrued up to the present, the amount eliminated in the February 2021 (11th) fiscal
period (¥5 million) and the August 2021 (12th) fiscal period (¥5 million) will bereversed from retained earnings at the respective period ends.
・ In the February 2021 (11th) fiscal period and the August 2021 (12th) fiscal period,
NMF assumes there will no change in the per-unit distribution by the change in fairvalue 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 based on
the assumption that, in order to alleviate the impact on distributions of the
8Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

Item

Assumptions
amortization of goodwill and other merger-related expenses (the “Merger
Expenses”) and the reversal of ATA, if the total difference between accounting andtax treatment for the relevant fiscal period is less than the sum of the Merger
Expenses and the reversal of ATA, NMF will make other distributions in excess of
net income in an amount not exceeding this difference and within the limit
prescribed by the regulations of the Investment Trusts Association, Japan (the“Investment Trusts Association Japan Regulations”), which restricts the amount to60/100 of the total amount of accumulated depreciation recorded as of the end of
the relevant fiscal period less the total amount of accumulated depreciation
recorded as of the end of the immediately preceding fiscal period.
・ The distribution in excess of net earnings per unit for the February 2021(11th) fiscal
period is expected to be ¥556, comprising ¥384 in distributions of ATA and ¥172 inother distributions in excess of net earnings. The distribution in excess of net earnings
per unit for the August 2021 (12th) fiscal period is expected to be ¥557, comprising¥389 in distributions of ATA and ¥168 in other distributions in excess of net
earnings.

Other

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

9Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

2. Financial Statements(1) Balance Sheet
Thousands of Yen
As of February 29, 2020

As of August 31, 2020

Cash and bank deposits

75,057,695

62,537,490

Cash and bank deposits in trust

12,541,371

12,628,868

Rental receivables

593,233

1,067,208

Prepaid expenses

803,222865,685

Derivatives assets

2,226

1,564

800,785

609,795

89,798,534

77,710,612

149,862,536

152,578,120

Less accumulated depreciation(16,204,854)(18,455,238)

Buildings, net

133,657,682

134,122,881

643,022666,293

Less accumulated depreciation(315,110)(341,768)

Structures, net

327,911

324,525

834,291

880,429

Less accumulated depreciation(500,882)(535,202)

Machinery, net

333,409345,227

398,249

458,386

Less accumulated depreciation(134,487)(169,698)

Tools, furniture and fixtures, net

263,761

288,687Land

294,597,869

301,575,945

Buildings in trust

188,908,437

196,980,348(28,109,043)(31,002,308)

AssetsCurrent assets

Other
Total current assets
Noncurrent assets
Property and equipment
Buildings

Structures

Machinery

Tools, furniture and fixtures

Less accumulated depreciation
Buildings in trust, net*3

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

Machinery in trust

160,799,393*3

165,978,040

1,063,016

1,130,731(885,893)(898,758)

177,122*3

231,972

681,985

821,977

Less accumulated depreciation(138,124)(174,637)

Machinery in trust, net

543,861

647,339

Tools, furniture and fixtures in trust

860,947

930,338

Less accumulated depreciation(315,398)(386,069)

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

545,548*3

544,269*3

416,796,827*3

422,908,935

4,752

4,752

Less accumulated depreciation

(528)

(924)

Leased assets, net

4,224

3,828

Construction in progress

24,761

16,224

10

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

Thousands of Yen
As of February 29, 2020

As of August 31, 2020

1,008,072,373

1,026,987,877

Goodwill

82,964,737

80,342,494

Leasehold rights

1,331,702

1,331,702

Leasehold rights in trust

7,626,831

7,626,445

32,78547,51091,956,057

89,348,152

Long-term prepaid expenses

2,065,881

2,090,012

Long-term deposits

519,577

527,473

Security deposits

936,452

936,452

Total investments and other assets

3,521,911

3,553,939

1,103,550,341

1,119,889,969

123,090

165,509

123,090

165,509

1,193,471,967

1,197,766,091

Total property and equipment
Intangible assets

Other
Total intangible assets
Investments and other assets

Total noncurrent assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets

11Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

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

As of February 29, 2020

As of August 31, 2020

2,559,513
5,000,000
60,885,600871
2,827,990
364,346
2,998
1,158,419
5,380,495
132,539
20,24439,952
10,171
78,383,142

2,536,859－
61,135,600871
2,883,286
337,398
3,774
134,705
5,584,162
112,213
3,811
64,132
36,74072,833,555

25,000,000
419,841,600
3,775
129,354
13,389,379
28,110,947
745,604
487,220,660
565,603,803

32,000,000
424,748,800
3,339
75,088
13,834,812
28,343,170
421,674
499,426,885
572,260,441

*3

*4

*2

12

*3

244,185,429

244,307,911

394,012,959

394,012,959(11,903,126)(10,738,678)*4(13,515,837)(12,398,315)(22,641,804)
371,371,154
13,094,910
384,466,064
628,651,494(25,914,153)
368,098,805
13,583,176
381,681,981
625,989,893(783,330)(783,330)
627,868,163
1,193,471,967(484,242)(484,242)
625,505,650
1,197,766,091*2

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

(2) Statement of Income and Retained Earnings

Previous period
from Sep. 1, 2019
to Feb.29, 2020

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

*1
*1

*1

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

13

Thousands of Yen
Current period
from Mar. 1, 2020
to Aug.31, 2020

33,877,972
3,049,384
36,927,357*1*1

15,720,670
3,291,289
59,207
169,605
7,800
2,622,242
383,086
22,253,901
14,673,456*1

34,884,255
2,693,169
37,577,424
15,678,281
3,420,656
56,792
170,478
7,800
2,622,242
408,203
22,364,455
15,212,969

415
4,123
3,379
176
8,095

496
3,561

1,813,077
210,186

1,809,934
160,997

5,584

5,984

416,21055,7275,255
2,506,040
12,175,510

431,408－
5,346
2,413,671
12,803,370*2

28,611
28,611－－*3

12,344
12,344
12,191,777
3,057
3,057
12,188,719
906,191
13,094,910－－
12,803,370
3,830
3,830
12,799,540
783,636
13,583,176

－
15
4,073

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

(3) Statement of Changes in Net Assets
Previous period (from September 1, 2019 to February 29, 2020)

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

214,855,487

394,012,959(10,439,617)(9,301,010)(19,740,627)

374,272,331

29,238,273

－

－

－

－

－

－

－

－

－

－

－

91,667－

91,667(91,667)

－

－

－

－

(1,555,176)－(1,555,176)(1,555,176)

－

－

－

(1,346,000)(1,346,000)(1,346,000)

－

－

－

－

－

－

－

－

－

－

－

－

29,329,941－(1,463,508)(1,437,668)(2,901,177)(2,901,177)

244,185,429

394,012,959(11,903,126) (10,738,678)(22,641,804)

371,371,154

14

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

Unitholders' equity
Surplus

Balance at the beginning of
the period
Changes of items during
the period
Issuance of new
investment units
Distributions ofretained earnings
Reversal of allowancefor temporary difference
adjustments
Distributions in excess
of net earnings fromallowance for temporary
difference adjustments
Other distributions inexcess of net earnings
Net income
Net changes of items
other than unitholders’equityTotal changes of items
during the period
Balance at the end of theperiodTotalunitholders'equityThousands of Yen
Valuation and translation
adjustments
Deferred
Valuation
Total net
gains orandassetsRetainedearnings

Total surplus

12,688,967

386,961,298

601,816,786(905,812)(905,812)

600,910,974－－

29,238,273－－

29,238,273(11,691,108)(11,691,108)(11,691,108)－－(11,691,108)(91,667)(91,667)

－

－

－

－

－

(1,555,176)(1,555,176)－－(1,555,176)－(1,346,000)(1,346,000)－－(1,346,000)

12,188,719

12,188,719

12,188,719－－

12,188,719

－

－

－

122,481

122,481

122,481405,943(2,495,234)

26,834,707

122,481

122,481

26,957,189

13,094,910

384,466,064

628,651,494(783,330)(783,330)

627,868,163

15

losses onhedgestranslation
adjustments

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

Current period (from March 1, 2020 to August 31, 2020)

Unitholders'
capitalBalance at the beginning of
the period
Changes of items during
the period
Distributions ofretained earnings
Reversal of allowancefor temporary difference
adjustments
Distributions in excess
of net earnings fromallowance for temporary
difference adjustments
Other distributions inexcess of net earnings
Net income
Net changes of items
other than unitholders’equityTotal changes of items
during the period
Balance at the end of theperiodCapitalsurplusThousands of Yen
Unitholders' equity
SurplusCapital surplus
Total deduction from capital surplus
Allowance
Deduction
Total
Net capitalforfrom otherdeduction
surplustemporary
capitalfrom capitaldifference
surplussurplusadjustment(10,738,678(11,903,126)(22,641,804)
371,371,154)

244,185,429

394,012,959

－

－

－

－

－

－

122,481－

122,481(122,481)

－

－

－

－

(1,735,193)－(1,735,193)(1,735,193)

－

－

－

(1,537,155)(1,537,155)(1,537,155)

－

－

－

－

－

－

－

－

－

－

－

－

122,481－(1,612,711)(1,659,637)(3,272,348)(3,272,348)

244,307,911

394,012,959(13,515,837) (12,398,315)(25,914,153)

368,098,805

16

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

Unitholders' equity
Surplus

Balance at the beginning of
the period
Changes of items during
the period
Distributions ofretained earnings
Reversal of allowancefor temporary difference
adjustments
Distributions in excess
of net earnings fromallowance for temporary
difference adjustments
Other distributions inexcess of net earnings
Net income
Net changes of items
other than unitholders’equityTotal changes of items
during the period
Balance at the end of theperiodTotalunitholders'equityThousands of Yen
Valuation and translation
adjustments
Deferred
Valuation
Total net
gains orandassetsRetainedearnings

Total surplus

13,094,910

384,466,064

628,651,494(783,330)(783,330)

627,868,163(12,188,792)(12,188,792)(12,188,792)－－(12,188,792)(122,481)(122,481)

－

－

－

－

－

(1,735,193)(1,735,193)－－(1,735,193)－(1,537,155)(1,537,155)－－(1,537,155)

12,799,540

12,799,540

12,799,540－－

12,799,540

－

－

－

299,087

299,087

299,087

488,266(2,784,082)(2,661,600)

299,087

299,087(2,362,512)

13,583,176

381,681,981

625,989,893(484,242)(484,242)

625,505,650

17losses onhedgestranslation
adjustments

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

(4) Statement of Cash Distributions

Yen
Previous period
from Sep. 1, 2019
to Feb. 29, 2020
13,094,910,659

Current period
from Mar. 1, 2020
to Aug. 31, 2020
13,583,176,757

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

3,272,348,800

2,843,265,600

1,735,193,600

1,777,630,400

1,537,155,200

1,065,635,200

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

122,481,948

299,087,803

122,481,948

299,087,803

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

15,461,140,800[3,279]12,188,792,000[2,585]

15,640,318,400[3,317]
12,797,052,800[2,714]

1,735,193,600

1,777,630,400

[368]

[377]

1,537,155,200

1,065,635,200

[326]

[226]

783,636,711

487,036,154

I. Retained earnings at end of period

V. Retained earnings carried forward
Calculation method for distributions

NMF calculates distributions inaccordance with the cash distribution
policies as specified in Article 36,
paragraphs 1 and 2 of NMF’s Articles ofIncorporation.
For the fiscal period under review,
NMF decided to implement a total of¥15,461,140,800 in distributions (¥3,279
per unit). This figure was arrived at by
excluding the portion for which per-unit
distribution comprising the types ofdividends laid out below would be lessthan ¥1 from ¥15,465,559,688 theamount calculated by adding to¥12,188,719,246 in net income after taxes¥2,622,242,820 in amortization of
goodwill, and by adding ¥654,597,622
in consideration of temporary decrease inoperating revenues due to the move outof a large tenant and effect to per-unit
distribution due to increase in investment
units by issuance of new investment units.
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 Investment Trusts Act
came to ¥12,188,792,000 (¥2,585 perinvestment unit). Distribution in excess of
net income comprises a distribution of18

NMF calculates distributions inaccordance with the cash distribution
policies as specified in Article 36,
paragraphs 1 and 2 of NMF’s Articles ofIncorporation.
For the fiscal period under review,
NMF decided to implement a total of¥15,640,318,400 in distributions (¥3,317
per investment unit). This figure wasarrived at by adding to ¥12,799,540,046 in
net income after taxes ¥2,622,242,820 inamortization of goodwill, and by adding¥218,535,534 in consideration of
temporary decrease in operating revenues
due to the impact of COVID-19
pandemic on per-unit distribution.
Total distributions comprise distributionof earnings and distribution in excess of
net income. Distribution of earnings as
stipulated in Article 136, paragraph 1 ofthe Investment Trusts Act came to¥12,797,052,800 (¥2,714 per investmentunit). Distribution in excess of net
income comprises a distribution of¥1,777,630,400 (¥377 per investmentunit) as allowance for temporary
difference adjustment and ¥1,065,635,200(¥226 per investment unit) in other
distribution in excess of net income.

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

¥1,735,193,600 (¥368 per investmentunit) as allowance for temporary
difference adjustment and ¥1,537,155,200(¥326 per investment unit) in other
distribution in excess of net income.

19

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

(5) Statement of Cash Flows

Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of goodwill
Investment units issuance costs
Amortization of investment corporation bond issuancecosts
Increase (decrease) in provision for loss on disaster
Interest income
Interest expenses
Loss on disposal of property and equipment
Decrease (increase) in rental receivables
Decrease (increase) in prepaid expenses
Decrease (increase) in consumption taxes receivable
Decrease (increase) in long-term prepaid expenses
Decrease (increase) in long-term deposits
Increase (decrease) in trade accounts payable
Increase (decrease) in other accounts payable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in accrued expenses
Increase (decrease) in rent received in advance
Other
SubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments for purchase of property and equipment
Payments for purchase of property and equipment in trust
Payments for purchase of intangible assets 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 short-term debt
Repayment of short-term debt
Proceeds from long-term debt
Repayment of long-term debt
Proceeds from issuance of investment corporation bonds
Repayment of investment corporation bonds
Payments for issuance of investment corporation bonds
Proceeds from issuance of investment units
Payment of investment units issuance expenses
Distributions of earnings to unitholders
20

Previous period
from Sep. 1, 2019
to Feb.29, 2020
to Aug.31, 2019

Thousands of Yen
Current period
from Mar. 1, 2020
to Aug. 31, 2020

12,191,777
5,153,337
2,622,242
55,727
5,584
20,244(415)
2,023,263
4,042
102,448
23,650657,804
66,061(10,628)(260,939)
16,901
1,158,419
53,619119,954
45,52424,048,621
415(2,088,004)(2,059)21,958,973

12,803,370
5,370,699
2,622,242－
5,984(16,433)(496)
1,970,931
5,711(476,056)(62,847)－(24,131)(7,896)(22,653)
11,576(1,023,713)
38,989203,667
217,376
21,616,320
496(2,072,086)(3,053)
19,541,676(16,921,301)(5,988,050)(4,620)(452,444)
1,085,861(413,385)
428,100
10,000(22,255,840)(9,727,485)(14,565,510)(13,553)(315,568)
763,083(280,207)
512,429－(23,626,812)－(8,000,000)
29,900,000(29,942,800)
8,000,000－(71,836)
29,238,273(55,727)(11,691,370)

7,000,000(7,000,000)
33,600,000(28,442,800)
7,000,000(5,000,000)(44,199)－－(12,188,068)

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

Distributions in excess of net earnings from allowancefor temporary difference adjustments
Other distributions in excess of net earnings
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

21(1,554,693)(1,735,356)(1,346,666)
14,475,179
14,178,313
73,420,753
87,599,067(1,537,147)(8,347,572)(12,432,707)
87,599,067
75,166,359

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

(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
4–70 years
Structures
2–45 years
Machinery
4–15 years
Tools, furniture and fixtures
3–20 years(2) Intangible assets
The straight-line method is adopted.
Goodwill is amortized using straight-line method over 20 years.
(3) Long-term prepaid expenses
The straight-line method is adopted.

2.

Accounting method fordeferred assets(1) Deferred investment corporation bond issuance costs
The straight-line method over the respective terms of the bonds.
(2) Investment units issuance costs
The entire amount is expensed as incurred.

3.

Allowance for doubtful
accounts(1) To be ready for possible losses arising from defaults on receivables, the uncollectableamount is estimated and recorded by investigating collectability based on historical loan
loss ratios for general receivables and on case-by-case examinations for doubtfulreceivables.
(2) Provision for loss on disaster

The amount that is reasonably estimated at the end of the previous fiscal period
under review is recorded to cover expenditures for restoration etc. following
Typhoon Faxai and Hagibis in 2019.

4.

Revenue and expenses
recognition

Accounting for fixed asset tax, etc.
Of the tax amount assessed and determined for fixed asset tax, city planning tax,
depreciable asset tax, etc. on real estate, etc. held by NMF, the method of charging theamount corresponding to the concerned fiscal period to expenses as real estate rental
expenses is adopted.
The amount equivalent to fixed asset tax, etc. for the fiscal year in which the acquisition
date falls paid to the seller as reimbursement upon acquisition of real estate or trust
beneficiary interests in real estate is included in the cost of acquisition of the concerned
real estate and not recorded as expenses. The amount equivalent to fixed asset tax, etc.
included in the cost of acquisition of real estate, etc. was ¥67,984 thousand in theprevious fiscal period and ¥108,493 thousand in the current fiscal period.

5.

Hedge accounting(1) Method of hedge accounting
Deferred hedge accounting is adopted. For interest-rate swap transactions that meetthe requirements for special treatment, special treatment is adopted.
(2) Hedging instruments and hedged items
Hedging instruments
Interest-rate swap transactions
Hedged items
Interest on loans(3)

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

(4)

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

22

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

6.

Other important bases
for preparing financial
statements

Method of accounting for trust beneficiary interests in real estate, etc.
Concerning trust beneficiary interests in real estate, etc., held by NMF, all assets
and liabilities within the trust assets as well as all revenues and expenses generated by
the trust assets are recorded under the corresponding items of the Balance Sheetand 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 trust(2) Buildings in trust; Structures in trust; Machinery in trust; Tools, furniture and fixturesin trust; Land in trust; Leased assets in trust(3) Leasehold rights in trust(4) Lease obligations in trust(5) Security deposits from tenants in trust② Method of accounting for consumption tax, etc.
Consumption tax and local consumption tax is accounted for using the tax-excluded
method. However, non-deductible consumption tax, etc., on such items, as noncurrent
assets is included in the acquisition costs of individual items.

7.

Cash and cash
equivalents as stated in
the Statement of Cash
Flows

Cash and cash equivalents in the statement of cash flows consist of cash on hand and cash intrust; deposits and deposits in trust that can be withdrawn at any time; and short-term
investments with a maturity of three months or less from the date of acquisition that arereadily convertible to cash and bear only an insignificant risk of price fluctuation.

①(Additional Information)(Notes Concerning Increases in and the Reversal of Allowance for Temporary Difference Adjustments)
Previous period
From Sep. 1, 2019
to Feb. 29, 2020
1．Reasons, related assets and amounts of allowanceThousands of Yen
Related assets,
etc.
Goodwill
Long-term
deposits

ReasonAmortization of
goodwill
Shortfall of reserve
for repair

Subtotal
Buildings,
facilities, etc.
Unearnedrevenue
Other
Subtotal
Total

Depreciation
deficiency
equivalent
Write-down of loss
on interest rate
swap
due to merger－

Allowance
temporarydifference
adjustment

Current period
from Mar. 1, 2020
to Aug. 31, 2020
1．Reasons, related assets and amounts of allowanceThousands of Yen

for
Related assets,
etc.

2,622,242

Goodwill

10,097Long-term
deposits

2,632,339

Subtotal(797,086)

Buildings,
facilities, etc.

(84,157)

Unearnedrevenue(15,902)(897,146)
1,735,193

Other
Subtotal
Total

23

ReasonAmortization of
goodwill
Shortfall of reserve
for repair

Allowance
temporarydifference
adjustmentfor2,622,242
5,835
2,628,078

Depreciation
deficiency
equivalent
Write-down of loss
on interest rate
swap
due to merger－(761,508)(74,207)(14,732)(850,448)
1,777,630

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

2．Reasons, related assets and amounts of reversals
Thousands of Yen
Allowance
forRelated assets,
temporary
Reasonetc.
difference
adjustment
Land, buildings, Sale
and
－
etc.
depreciationof(*)
properties
for
which
mergerexpenses
wererecordedDeferred gains Changes in fair
(122,481)
or losses onvalue of derivatives
hedges(122,481)
Total

2．Reasons, related assets and amounts of reversals
Thousands of Yen
Allowance
forRelated assets,
temporary
Reasonetc.
difference
adjustment
Land, buildings, Sale
and
－
etc.
depreciationof(*)
properties
for
which
mergerexpenses
wererecordedDeferred gains Changes in fair
(299,087)
or losses onvalue of derivatives
hedges(299,087)
Total(*) The amount of reversal during current period (¥5,534 thousand) is
included in “Depreciation deficiency equivalent” on “1. Reasons, related assets
and amounts of allowance”.

(*) The amount of reversal during current period (¥5,515 thousand) is
included in “Depreciation deficiency equivalent” on “1. Reasons, related
assets and amounts of allowance”.

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

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

(2) Merger expenses
Method of reversal
Item
Buildings, etc. Upon depreciation and sale, thecorresponding amounts are scheduled tobe reversed.
Land
Upon sale, etc., the corresponding
amount is scheduled to be reversed.
Buildings,
Upon depreciation and sale, theetc., in trust
corresponding amounts are scheduled tobe reversed.

(2) Merger expenses
Method of reversal
Item
Buildings, etc. Upon depreciation and sale, thecorresponding amounts are scheduled tobe reversed.
Land
Upon sale, etc., the corresponding
amount is scheduled to be reversed.
Buildings,
Upon depreciation and sale, theetc., in trust
corresponding amounts are scheduled tobe reversed.

Land in trust
LeaseholdrightsLeaseholdrights in trust

Land in trust
LeaseholdrightsLeaseholdrights in trust

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

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

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

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

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

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

24Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020(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.
Previous period(Feb. 29, 2020)
10,000,000－
10,000,000

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

Thousands of Yen
Current period(Aug. 31, 2020)
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.

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

Previous period(Feb. 29, 2020)
40,000,000－
40,000,000

Thousands of Yen
Current period(Aug. 31,2020)
40,000,000－
40,000,000*2. Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment
Corporations
Thousands of Yen
Previous period
Current period(Feb. 29, 2020)(Aug. 31, 2020)
50,00050,000*3. Asset offered as collateral and liabilities secured with collateralPrevious period(Feb. 29, 2020)

Thousands of Yen
Current period(Aug. 31, 2020)

Assets offered as collateral are as follows.
Buildings in trust
3,323,304
Land in trust
6,096,368
Structures in trust
2,528
Tools, furniture andfixtures in trust
122
Total
9,422,323

Assets offered as collateral are as follows.
Buildings in trust
3,298,689
Land in trust
6,096,368
Structures in trust
4,530
Tools, furniture andfixtures in trust
733
Total
9,400,322

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

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

25

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

*4. Allowance for temporary difference adjustments
Previous period (from September 1, 2019 to February 29, 2020)
1. Reasons, related assets and amounts
Thousands of Yen
ReasonInitialamountBalance atthe end of
previous
periodAllowance
set aside
duringperiodGoodwill

Amortization of
goodwill

14,733,612

8,108,244

1,560,840

Land, buildings,
etc.

Merger expenses

4,029,135

1,333,892(5,663)

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

Related assets,etc.

Balance atthe end ofcurrent
periodReason forreversal－

9,669,084－－

1,328,228－

Reversalduringperiod2,867,594

997,480－(91,667)

905,812

Changes infair value ofderivativetransactions

Increase –subtotal－

10,439,617

1,555,176(91,667)

11,903,126

－

Total

－

10,439,617

1,555,176(91,667)

11,903,126－

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

(2) Merger expenses
Item

Method of reversal

Buildings, etc.

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

Land

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

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

26

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

Current period (from March 1, 2020 to August 31, 2020)
1. Reasons, related assets and amounts
Thousands of Yen
ReasonInitialamountBalance atthe end of
previous
periodAllowance
set aside
duringperiodGoodwill

Amortization of
goodwill

17,355,854

9,669,084

1,740,727

Land, buildings,
etc.

Merger expenses

4,029,135

1,328,228(5,534)

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

Related assets,etc.

Balance atthe end ofcurrent
periodReason forreversal－

11,409,812－－

1,322,694－

Reversalduringperiod2,867,594

905,812－(122,481)

783,330

Changes infair value ofderivativetransactions

Increase –subtotal－

11,903,126

1,735,193(122,481)

13,515,837

－

Total

－

11,903,126

1,735,193(122,481)

13,515,837－

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

(2) Merger expenses
Item

Method of reversal

Buildings, etc.

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

Land

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

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

27

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

(Notes to Statement of Income and Retained Earnings)*1. Breakdown of real estate rental revenues and expenses
Previous period
from Sep. 1, 2019
to Feb. 29, 2020
A. Property related revenues
Rental revenues
Rent revenues
Common area charges
Other rental revenues
Parking revenues
Incidental income
Other miscellaneous revenues
Property related revenues
B. Property related expenses
Real estate rental expenses
Property management costs
Property management fees
Property and other taxes
Utility expenses
Casualty insurance
Repairs and maintenanceLand rents
Depreciation
Other rental expenses
Property related expenses

31,441,906
2,436,066

Thousands of Yen
Current period
from Mar. 1, 2020
to Aug. 31, 2020

33,877,972

32,456,559
2,427,695

609,203619,580

2,267,052
173,128

3,049,384

1,969,384
104,204

36,927,357

1,760,058
950,345
2,976,127
1,829,299
42,831
1,658,591
204,347
5,151,274
1,147,795

C. Real estate rental profits [A－B]

15,720,670
15,720,670
21,206,687

34,884,255

2,693,169
37,577,424

1,785,636
1,011,292
3,124,623
1,605,607
45,011
1,418,953
204,194
5,369,703
1,113,258

15,678,281
15,678,281
21,899,143*2. Breakdown of Extraordinary Gain
Previous period (from September 1, 2019 to February 29, 2020)
The insurance amount of ¥71,833 thousand related to the assets damaged by the Typhoons Faxai and
Hagibis in 2019 was offset by the loss amount of ¥43,222 thousand. Therefore, the amount of ¥28,611
thousand is recorded as insurance income.
Current period (from March 1, 2020 to August 31, 2020)
Not applicable.
*3. Breakdown of Extraordinary Loss

Previous period (from September 1, 2019 to February 29, 2020)
The loss amount of ¥13,840 thousand related to the assets damaged by the Typhoons Faxai and
Hagibis in 2019 was offset by the insurance amount of ¥1,495 thousand. Therefore, the amount of ¥12,344
thousand is recorded as loss on disaster.
Current period (from March 1, 2020 to August 31, 2020)
Not applicable.
(Notes on Investment and Rental Properties)
NMF owns leasable offices, leasable retail facilities, leasable logistics facilities, leasable residential facilities and leasable
hotels, etc. (including land) in Greater Tokyo area and other areas for the purpose of earning revenue from leasing.
The following are the carrying amount, amount of increase (decrease) during the fiscal period and fair value of theseinvestment and rental properties at the end of the fiscal period.

28

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

Previous period
from Sep. 1, 2019
to Feb. 29, 2020
Carrying amount
Balance at beginning of period
Amount of increase (decrease) during period
Balance at end of period
Fair value at end of period

999,049,393
17,969,957
1,017,019,350
1,158,232,000

Thousands of Yen
Current period
from Mar. 1, 2020
to Aug. 31, 2020
1,017,019,350
18,926,674
1,035,946,025
1,185,682,000(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 Akihabara Kita (¥8,547,300 thousand), PMO Higashi-Shinbashi(¥4,801,865 thousand), PROUDFLAT Shibuya Tomigaya(¥4,080,033 thousand), PROUD FLAT Miyazakidai (¥1,461,354 thousand) and PROUD FLAT
Asakusabashi III(¥1,282,437 thousand) . The decrease during the previous period is mainly attributable to depreciation
expenses (¥5,146,129 thousand). The increase during the current period is mainly attributable to the acquisition of PMO
Hamamatsucho(¥4,445,043 thousand), GEMS Sangenjaya(¥1,836,687 thousand), Lndport Higashi-Narashino(¥12,025,405 thousand), PROUD FLAT Togoshi-Koen (¥2,670,972 thousand). The decrease during the current period ismainly attributable to depreciation expenses (¥5,363,528 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.

The income (loss) in the previous period (from September 1, 2019 to February 29, 2020) and current period (fromMarch 1, 2020 to August 31, 2020) for investment and rental properties is as presented in “Notes to Statement of
Income and Retained Earnings” earlier in this report.

29

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

(Notes on Per Unit Information)
Previous period
from Sep. 1, 2019
to Feb. 29, 2020

Yen
Current period
from Mar. 1, 2020
to Aug. 31, 2020

Net assets per unit

133,158

132,657

Net income per unit

2,642

2,714

(Note 1)
(Note 2)

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

Previous period
from Sep. 1, 2019
to Feb. 29, 2020

Current period
from Mar. 1, 2020
to Aug. 31, 2020

12,188,719

12,799,540－－

Net income attributable to ordinary investment units (Thousands ofYen)

12,188,719

12,799,540

Average number of investment units during period (Units)

4,612,315

4,715,200

Net income (Thousands of Yen)
Amount not attributable to ordinary unitholders (Thousands of
Yen)(Notes on Significant Subsequent Events)
Not applicable.
[Disclosure Omissions]

A disclosure of notes concerning Statement of Changes in Net Assets, Statement of Cash Flows, Lease
Transactions, Financial Instruments, Securities, Derivative Transactions, Retirement Benefit Plans, Tax EffectAccounting, Equity Method Income and Retained Earnings, etc., Transactions with Related Parties, Asset
Retirement Obligations and Segment Information is omitted because such disclosure in this summary of financial
results is judged to be unnecessary.

30

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020(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 10th fiscal
period (August 31, 2020).

Date

Description

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

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

Note

Balance

October 1, 2015

Consolidation typemerger3,722,010

3,722,010

161,120

161,120(Note 2)September 1, 2016

Absorption typemerger461,120

4,183,130－

161,120(Note 3)－4,183,130

763

161,883(Note 4)－4,183,130

708

162,592(Note 4)－4,183,130

198

162,791(Note 4)

October 14, 2016

April 14, 2017

October 13, 2017

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

March 1, 2018

Public offering

132,000

4,315,130

17,572

180,363(Note 5)

March 20, 2018

Third party allotment
increase

6,670

4,321,800

887

181,251(Note 6)－

4,321,800

478

181,730(Note 4)－4,321,800

321

182,051(Note 4)

April 13, 2018

October 15, 2018

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

March 1, 2019

Public offering

214,760

4,536,560

31,241

213,293(Note 7)

March 26, 2019

Third party allotment
increase

10,7404,547,300

1,562

214,855(Note 8)October 15, 2019

Reversal of allowancefor temporary
difference adjustments－

4,547,300

91

214,947(Note 4)

December 20, 2019

Public offering

159,900

4,707,200

27,845

242,792(Note 9)January 21, 2020

Third party allotment
increase

8,000

4,715,200

1,393

244,185(Note 10)

April 14, 2020

Reversal of allowancefor temporary
difference adjustments－

4,715,200

122

244,307(Note 4)(Note 1)
(Note 2)

Figures have been truncated at the nearest million yen.
NMF was established through the consolidation type merger of the former Nomura 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 per 1.00 NOF unit and 4.45 NMF units per 1.00 NRF unit.
(Note 3) On September 1, 2016, as part of the absorption type merger, with NMF as the surviving corporation and TOP REIT, Inc.
(hereinafter “TOP”) as the absorbed corporation (hereinafter “the Absorption Type Merger with TOP”), NMF issued 2.62 NMF units
per 1.00 TOP unit, resulting in the issue of 461,120 new units. There was no change in the total amount of unitholders’ capital due tothis absorption type of merger.
(Note 4) NMF’s Board of Directors resolved to reverse the allowance for temporary difference adjustments and incorporate the amounts of said
reversals into unitholders’ capital at the Board of Directors meeting on each said date.
(Note 5) NMF issued new investment units through public offering at an issue price of ¥137,474 per unit (issue value: ¥133,125 per unit ) forthe purpose of procuring funds to acquire new properties.
(Note 6) NMF issued new investment units through third-party allotment at an issue value of ¥133,125 per unit together with the issuance of31Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

new investment units through public offering.
(Note 7) NMF issued new investment units through public offering at an issue price of ¥150,223 per unit (issue value: ¥145,471 per unit ) forthe purpose of procuring funds to acquire new properties.
(Note 8) NMF issued new investment units through third-party allotment at an issue value of ¥145,471 per unit together with the issuance of
new investment units through public offering.
(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 ) forthe purpose of procuring funds to acquire new properties.
(Note 10) 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.

32

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

3. Reference Information(1) Investment Status

9th fiscal period
10th fiscal period
As of February 29, 2020
As of August 31, 2020
Area
As a percentage
As a percentage
Type of asset
Use
Total amount held
Total amount held
(Note 1)of total amount ofof total amount of(Millions of Yen)
(Millions of Yen)
assets ()assets ()(Note 2)
(Note 2)
(Note 3)(Note 3)
Greater Tokyo area
141,46211.9
145,640
12.2
OfficeOther areas
21,3481.8
21,3191.8
properties
Subtotal
162,810
13.6
166,959
13.9
Greater Tokyo area
27,344
2.3
29,070
2.4
RetailOther areas
15,964
1.3
15,947
1.3
properties
Subtotal
43,3093.6
45,018
3.8Greater Tokyo area
49,6144.2
49,528
4.1
Logistics
properties
Subtotal
49,6144.2
49,528
4.1
Real estate
Greater Tokyo area
134,91711.3
136,921
11.4
Residential
Other areas
30,9982.6
30,712
2.6
properties
Subtotal
165,915
13.9
167,634
14.0
Other areas
3,725
0.3
3,711
0.3
Hotel
properties
Subtotal
3,725
0.3
3,711
0.3
Greater
Tokyo
area
5,136
0.4
5,136
0.4
Other
Properties
Subtotal
5,136
0.4
5,136
0.4
Subtotal
430,51236.1
437,988
36.6
Greater Tokyo area
258,50721.7
258,645
21.6
OfficeOther areas
51,518
4.3
51,896
4.3
properties
Subtotal
310,025
26.0
310,541
25.9
Greater Tokyo area
82,476
6.9
82,234
6.9
RetailOther areas
50,1494.2
50,158
4.2
properties
Subtotal
132,625
11.1
132,393
11.1
Greater Tokyo area
111,8139.4
123,041
10.3
Real estate
Logistics
in trust
Other areas
3,341
0.3
3,324
0.3
properties
Subtotal
115,1549.6
126,366
10.6
26,026
2.2
25,987
2.2
Residential Greater Tokyo area
properties
Subtotal
26,026
2.2
25,987
2.2
Other areas
2,675
0.2
2,667
0.2
Hotel
properties
Subtotal
2,675
0.2
2,667
0.2
Subtotal
586,50749.1
597,957
49.9
Subtotal
1,017,019
85.2
1,035,946
86.5
Deposits and other assets
176,452
14.8
161,82013.5
1,193,471
100.0
1,197,766
100
Total amount of assets
9th fiscal period
As of February 29, 2020
As a percentage
Amountof total amount(Millions of Yen)of assets ()(Note 4)(Note 3)
Total amount of liabilities
Total amount of net assets

10th fiscal period
As of August 31, 2020
As a percentage
Amountof total amount(Millions of Yen)of assets ()(Note 4)(Note 3)565,603

47.4

572,260

47.8

627,86852.6

625,505

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

33

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020(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. (298 properties) held as of August 31, 2020, (the end of
the 10th fiscal period) by NMF (this real estate and the beneficiary interests of trusts in which real estate
properties are the principal trust properties or the real estate that constitutes the underlying assets
thereof are hereinafter referred to as the “assets held at the end of the 10th fiscal period”). Unlessotherwise stated, the figures in the tables below are the figures as of August 31, 2020.

34

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

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 the10th fiscal period.
Number of properties

298

Gross leasable area (m2) (Note 1)

2,042,127.14

Gross leased area (m2) (Note 2)

2,024,053.57

Total number of tenants (Note 3)

1,392

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

5,829,879(Note 1)The sum total of the “leasable area” of each of the assets held at the end of the 10th fiscal period. “Leasable area” is thesum total area of office buildings, retail facilities, logistics facilities, residential facilities, or hotels etc. leasable in each asset(including the area of common-use space, etc., if leased). Leasable area is calculated based not on that presented in the registry,
but the area stated in the lease contract and the area calculated based on building completion drawings, etc. Accordingly, theleasable area may not be the same as the floor area based on that presented in the registry and may exceed the floor area. In thecase 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, NEC Head Office Building and Musashiurawa Shopping Square, the leasable area is the area calculated bymultiplying the building’s overall leasable area by the quasi co-ownership ratio of the beneficial interest in real estate trust owned
by NMF as of the end of the fiscal period. For NRE Tennozu Building, since the rent under the master lease agreement iscalculated 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 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 theleasable 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) 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 is the sumof (i) the leasable area of the exclusive area owned by NMF and (ii) the leasable area of the common 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 10th fiscal period. “Leased area” is the area thatis actually leased to an end-tenant (The area stated in the lease contract; provided, however, that such be limited to the area ofoffice properties, retail properties, logistics properties, residential properties, or hotel properties etc. (if all rental units arecollectively leased, then the area of the entire rental units) and not include the leased area of parking space, etc. However, if themaster lessee has a rent-guaranteed master lease for some or all rental units, the space is included in leased area regardless ofwhether or not there is a lease agreement with an end-tenant.) in each asset. In the case of land with leasehold right, the leased
area of the land is shown. For the Shinjuku Nomura Building, NEC Head Office Building and Musashiurawa Shopping Square,the leased area is the area calculated by multiplying the building’s overall leased area by the quasi co-ownership ratio of thebeneficial interest in real estate trust owned by NMF as of the end of the fiscal period. For the NRE Tennozu Building, since therent 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 the building’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 area of 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 the entire building multiplied by NMF’s shareof 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 10th fiscal period. In the calculation of“number of tenants,” when some or all rental units are collectively leased for the purpose of subleasing and the lessee in thelease agreement (master lease agreement) has concluded an agreement with an end-tenant (sublessee that is the actual user) for
subleasing the rental units, the lessee of the master lease agreement is counted as one tenant. However, in the case of assets
with a so-called pass-through master lease agreement, where the rent received from the lessee in the master lease agreement is
the same amount as the rent that the lessee receives from the end-tenant, the total number of end-tenants is shown. In addition,
if multiple rental units in a specific asset are leased to a specific tenant, this is counted as one tenant for the asset and, if
multiple assets are leased to a specific tenant, these are counted separately and the total of that number of tenants is shown. For
residential facilities or residential portions of “other” sector facilities, when some or all rental units are collectively leased for the
purpose of subleasing and the lessee in the lease agreement (master lease agreement) has concluded an agreement with an
end-tenant for subleasing the rental units, regardless of pass-through master lease agreement, the lessee of the master lease35

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

agreement is counted as one tenant, and the total number of tenants for the building as whole is shown.
(Note 4) The total amount of “total contracted rent” for August 2020 of each of the assets held at the end of the 10th fiscal period(amounts less than one thousand are truncated). “Total contracted rent” for August 2020 refers to the sum total of monthly
rent and common area charges in lease agreements actually concluded with end-tenants that are valid as of the last day ofAugust 2020 (This does not include parking space or other fees stated in parking space lease agreements or other suchagreements signed in addition to the tenant lease agreement. If common-use space, etc. is leased based on the lease agreement,
the rent for such is included and, if rent includes an amount equivalent to the fee for use of parking space, such amount isincluded. In addition, if the master lessee has a rent-guaranteed master lease for some or all rental units, the rent for the space isbased on the rent, etc., in the lease agreement concluded with the master lessee.). Furthermore, regarding tenants who havebeen exempt from rent payment for a certain period of time in their agreements, such exemption period is not considered in
the table above, and the rent is calculated based on the monthly rent and common area charges payable immediately after the
exemption period ends. In addition, the standard level of rent is used for tenants with sales-based rent and for tenants withvariable rent including cases in which a part of rent is variable rent. For the Shinjuku Nomura Building, NEC Head Office
Building and Musashiurawa Shopping Square, the total 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 theratio of the common areas that NMF owns through the trustee. For PMO Hatchobori Shinkawa, the total contract rent iscalculated by summing (i) the rent revenues earned from the leasable exclusive area of the entire building multiplied by the ratioof 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 interest of 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) (%)

August 31, 2018(end of 6th fiscal
period)February 28, 2019(end of 7th fiscal
period)August 31, 2019(end of 8th fiscal
period)February 29, 2020(end of 9th fiscal
period)August 31, 2020(end of 10th fiscal
period)

99.3

99.3

99.3

98.8

99.1

36

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

B. Price and Investment Share
The following is an overview of the assets held at the end of the 10th fiscal period (acquisition price,
carrying amount, opinion of value at end of period, investment share and appraiser).

Use

Area

Property nameAcquisition price(Millions of Yen)
(Note 1)

Carrying amount(Millions of Yen)
(Note 2)

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

Investment
share
(%)
(Note 4)

Shinjuku Nomura Building (Note5)

43,90046,44449,200

4.1

NRE Tennozu Building

20,50020,68821,600

1.8

Kojimachi Millennium Garden

26,70026,41228,0002.4

10,000

10,134

12,5001.1

10,40010,50910,7000.9

Secom Medical Building

11,10010,727

12,200

1.0

NMF Shiba Building

7,040

7,093

7,420

0.6

Nishi-Shinjuku Showa Building

8,140

8,170

8,050

0.7

NRE Shibuya Dogenzaka Building

5,310

5,307

5,840

0.5

Iwamoto-cho Toyo Building

4,050

4,035

4,950

0.4

NMF Surugadai Building

4,690

4,686

5,630

0.5

PMO Nihonbashi Honcho

4,320

4,111

5,080

0.4

PMO Nihonbashi Kayabacho

5,010

4,784

6,210

0.5

NMF Gotanda Ekimae Building

4,430

4,622

5,280

0.4

NRE Higashi-nihonbashi Building

3,570

3,653

4,310

0.4

PMO Akihabara

4,240

4,052

5,800

0.5

Hatchobori NF Building

2,480

2,441

2,540

0.2

4,160

4,202

4,390

0.4

2,830

2,836

3,280

0.3

PMO Hatchobori

2,880

2,707

3,650

0.3

PMO Nihonbashi Odenmacho

2,210

2,108

2,940

0.2

PMO Higashi-nihonbashi

1,690

1,578

2,110

0.2

NRE Ueno Building

6,470

6,572

7,030

0.6

NF Hongo Building.

4,890

4,895

5,160

0.4

Crystal Park Building

3,390

3,333

3,450

0.3

NMF Kichijoji Honcho Building

1,780

1,841

2,140

0.2

Faret Tachikawa Center Square

3,850

3,848

4,550

0.4

7,830

8,015

9,350

0.8

5,460

5,614

7,580

0.6

2,620

2,783

3,080

0.3

PMO Tamachi

6,210

6,109

8,200

0.7

PMO Ginza Hatchome

3,970

3,930

5,100

0.4

PMO Shibakoen

3,900

3,841

5,200

0.4

44,10044,44645,4003.8

18,20017,93518,8001.6

10,40010,46913,600

1.1

NMF
Shinjuku
Minamiguchi
Building
NMF Shibuya Koen-dori Building

Greater
Office Tokyo
area

NMF
Kanda
Iwamoto-cho
Building
NMF Takanawa Building

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

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

37

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

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

Use

Area

Acquisition price(Millions of Yen)
(Note 1)

Carrying amount(Millions of Yen)
(Note 2)

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

Investment
share
(%)
(Note 4)

8,330

8,377

8,980

0.8

8,180

8,053

8,930

0.8

NMF Kayabacho Building

6,070

6,089

7,830

0.7

NMF Shinjuku EAST Building

5,710

5,658

6,370

0.5

NMF Shiba-Koen Building

3,620

3,803

4,280

0.4

NMF Ginza 4-chome Building

1,850

1,917

2,310

0.2

Faret East Building

1,850

1,864

2,110

0.2

PMO Shinnihonbashi

4,440

4,397

5,170

0.4

PMO Hirakawacho

3,410

3,387

4,220

0.4

PMO Nihonbashi Mitsukoshi-mae

4,310

4,320

5,480

0.5

PMO Shibadaimon

2,130

2,136

2,410

0.2

PMO Tamachi Higashi(Note 8)

10,90010,95012,000

1.0

PMO Hatchobori Shinkawa

3,805

3,822

4,220

0.4

PMO Kyobashi Higashi(Note 8)

2,880

2,897

3,180

0.3

PMO Ochanomizu

3,890

3,906

4,300

0.4

PMO Akihabara Kita

8,450

8,524

9,110

0.8

PMO Higashi-Shinbashi

4,730

4,795

5,240

0.4

PMO Hamamatsucho

4,380

4,430

4,920

0.4

Sapporo North Plaza

6,250

6,371

8,200

0.7

NRE Sapporo Building

4,140

3,786

4,960

0.4

NMF Sendai Aoba-dori Building

2,030

2,200

2,690

0.2

NMF Utsunomiya Building

2,320

2,490

2,380

0.2

NMF Nagoya Fushimi Building

2,240

2,022

2,300

0.2

NMF Nagoya Yanagibashi Building

2,280

2,377

2,190

0.2

Omron Kyoto Center Building

18,30018,023

19,200

1.6

SORA Shin-Osaka 21

12,10011,948

11,400

1.0

NRE Osaka Building

6,100

7,655

7,240

0.6

NRE Nishi-Umeda Building

3,450

3,562

3,820

0.3

NRE Yotsubashi Building

4,000

4,110

4,690

0.4

NRE Hiroshima Building

2,280

2,386

2,740

0.2

NMF Hakata Ekimae Building

4,210

4,207

5,700

0.5

NMF Tenjin-Minami Building

2,230

2,072

2,670

0.2

473,585

477,501

531,560

44.8

Yokosuka More’s City

13,64013,73015,700

1.3

Recipe SHIMOKITA

10,407

10,363

11,500

1.0

Kawasaki More’s

6,080

6,700

8,640

0.7

EQUINIA Shinjuku

4,260

4,299

5,240

0.4

EQUINA Ikebukuro

3,990

4,033

4,540

0.4

covirna machida

3,440

3,783

4,340

0.4

Property nameNMF Takebashi Building
Harumi Island
Office Tower Z

GreaterTokyo
area

Office

Other
areas

TritonOffice subtotal

RetailGreaterTokyo
area

Square38

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

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

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

Use

Area

Acquisition price(Millions of Yen)
(Note 1)

Carrying amount(Millions of Yen)
(Note 2)

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

Investment
share
(%)
(Note 4)

Nitori Makuhari

3,080

2,717

3,960

0.3

Konami Sports Club Fuchu

2,730

2,550

3,350

0.3

FESTA SQUARE

2,600

2,261

3,470

0.3

GEMS Shibuya

2,490

2,379

2,880

0.2

Sundai Azamino

1,700

1,493

2,120

0.2

EQUINIA Aobadai

1,560

1,586

2,580

0.2

Property name

Megalos Kanagawa

1,000

952

1,550

0.1

2,740

2,764

3,340

0.3

Mitsubishi Motors Chofu（Land）

1,760

1,776

1,750

0.1

Mitsubishi Motors Nerima（Land）

1,240

1,251

1,420

0.1

Mitsubishi（Land）

950

959

1,300

0.1

Mitsubishi Motors Takaido（Land）

850

859

875

0.1

Mitsubishi（Land）

800

808

888

0.1

800

808

895

0.1

770

779

1,090

0.1

600

606

701

0.1

Mitsubishi Motors Higashiyamato（Land）

450

455

535

0.0

The Tanizawa Sogo
Appraisal Co., Ltd.

Mitsubishi Motors Motosumiyoshi（Land）

370

375

403

0.0

Japan Real
Institute

350

355

434

0.0

The Tanizawa Sogo
Appraisal Co., Ltd.

200

204

181

0.0

Mitsubishi（Land）

MotorsMotorsKawasakiKatsushika

MotorsSekimachi

Mitsubishi
MotorsKawagoe（Land）(Note 8)
Mitsubishi
Motors
Edogawa（Land）
Mitsubishi Motors Sayama（Land）

Retail

160

163

186

0.0

NRE Kichijoji Building

10,410

10,22011,500

1.0

GEMS Ichigaya

2,080

2,046

2,210

0.2

Sagamihara Shopping Center

6,840

6,849

6,950

0.6

2,720

2,581

2,910

0.2

700

747

792

0.1

GEMS Daimon

2,060

2,028

2,150

0.2

GEMS Kanda

1,500

1,481

1,550

0.1

Summit Store Mukodaicho

5,100

5,085

5,270

0.4

GEMS Shinbashi

2,810

2,831

2,800

0.2

GEMS Kayabacho

2,594

2,593

2,740

0.2

Summit Store Honamanuma

2,160

2,170

2,900

0.2

GEMS Shin-Yokohama

1,820

1,815

1,900

0.2

GEMS Sangenjaya

1,815

1,831

1,780

0.2

Universal CityWalk Osaka

15,50015,253

17,200

1.5

Izumiya Senrioka

8,930

8,561

11,500

1.0

Izumiya Yao

4,406

4,036

5,620

0.5

Izumiya Obayashi

3,020

3,193

4,120

0.3

Musashiurawa Shopping Square(Note 6)
Summit Store Naritahigashi (Land)

Other
areas

Japan 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
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
Institute

Mitsubishi Motors Meguro（Land）

Mitsubishi Motors Higashikurume（Land）
Mitsubishi Motors Setagaya（Land）

GreaterTokyo
area

Appraiser

39

Japan Real
InstituteJapan Real
InstituteJapan Real
Institute

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

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

Use

Retail

Area

Other
areas

Acquisition price(Millions of Yen)
(Note 1)

Carrying amount(Millions of Yen)
(Note 2)

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

Investment
share
(%)
(Note 4)Ichibancho stear

4,700

4,464

5,660

0.5

EQUINIA Aobadori

1,640

1,344

2,010

0.2

MEL Building

1,060

1,049

1,200

0.1

nORBESA

8,500

8,668

8,930

0.8

Nakaza Cui-daore Building

11,60012,125

10,6000.9

NMF Kobe Myodani Building

3,560

3,588

3,650

0.3

GEMS Namba

3,800

3,822

4,310

0.4

Property name

178,342

177,411204,120

17.2

Landport Urayasu

17,40016,165

21,9001.8

Landport Itabashi

15,71014,621

19,4001.6

Landport Kawagoe

13,70011,94317,0001.4

Landport Atsugi

11,410

10,23812,000

1.0

Sagamihara Tana Logistics Center

10,6009,816

13,000

1.1

Sagamihara
Center

8,700

7,977

11,400

1.0

Landport Hachioji

8,250

7,317

10,1000.9

Landport Kasukabe

7,340

6,306

8,610

0.7

4,590

4,140

5,730

0.5

Retail subtotal

GreaterTokyo
Logistics area

Other
areas

Onodai

Logistics

Atsugi Minami Logistics Center B
Tower
Hanyu Logistics Center

3,810

3,348

4,590

0.4

Kawaguchi Logistics Center B
Tower

3,750

3,586

4,450

0.4

Kawaguchi Logistics Center A
Tower

2,830

2,764

3,560

0.3

Atsugi Minami Logistics Center A
Tower

2,690

2,532

3,440

0.3

Kawaguchi Ryoke Logistics Center

10,790

10,323

13,6001.1

Landport Kashiwa Shonan II

10,80010,697

11,700

1.0

Landport Kashiwa Shonan I

9,900

9,756

10,2000.9

Landport Hachioji II

9,230

9,204

9,530

0.8

Landport Iwatsuki

6,090

6,099

6,490

0.5

Landport Ome I

13,64013,771

14,2001.2

Landport Higashi-Narashino

11,872

11,956

15,700

1.3

3,460

3,324

4,060

0.3

186,562

175,895

220,660

18.6

3,400

3,232

3,540

0.3

PROUD FLAT Yoyogi Uehara

989

964

994

0.1

PROUD FLAT Hatsudai

713

682

717

0.1

750

713

725

0.1

PROUD FLAT Gakugei Daigaku

746

704

844

0.1

PROUD
Gyoninzaka

939

887

1,050

0.1

PROUD FLAT Sumida Riverside

2,280

2,112

2,600

0.2

PROUD FLAT Kagurazaka

1,590

1,489

1,650

0.1

Hirakata Kuzuha Logistics Center

Logistics subtotal
PROUD
Takanawa

Resident
ial

Greater
Tokyo
area

PROUD
Sakuragaoka

FLAT

FLAT

FLAT

Shirokane

ShibuyaMeguro40

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

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

Use

Area

Acquisition price(Millions of Yen)
(Note 1)

Carrying amount(Millions of Yen)
(Note 2)

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

Investment
share
(%)
(Note 4)

1,110

1,036

1,170

0.1

932

873

1,020

0.1

PROUD FLAT Sangen Jaya

1,190

1,110

1,220

0.1

PROUD FLAT Kamata

1,160

1,060

1,250

0.1

PROUD FLAT Kamata II

3,320

3,063

3,460

0.3

PROUD FLAT Shinotsuka

623

569

573

0.0

PROUD
Shirakawa

928

857

978

0.1

PROUD FLAT Monzen Nakacho
II

652

609

643

0.1

PROUD FLAT Monzen Nakacho
I

1,030

947

1,010

0.1

PROUD FLAT Fujimidai

1,470

1,371

1,830

0.2

PROUD FLAT Asakusa Komagata

1,920

1,758

2,250

0.2

PROUD FLAT Yokohama

2,090

1,928

2,340

0.2

PROUD FLAT Kamioooka

2,710

2,493

2,880

0.2

PROUD FLAT Tsurumi II

1,650

1,512

1,900

0.2

PRIME URBAN Azabu Juban

1,100

1,098

1,010

0.1

PRIME URBAN Akasaka

938

923

975

0.1

PRIME URBAN Tamachi

972

933

1,000

0.1

PRIME URBAN Shibaura LOFT

1,830

1,729

2,040

0.2

PRIME URBAN Yoyogi

359

343

342

0.0

PRIME URBAN Ebisu II

1,140

1,114

1,490

0.1

PRIME URBAN Bancho

1,090

1,058

1,140

0.1

PRIME URBAN Chiyoda Fujimi

679

653

684

0.1

PRIME URBAN Iidabashi

2,040

1,940

1,870

0.2

PRIME URBAN Ebisu

1,260

1,247

1,310

0.1

PRIME URBAN Naka Meguro

1,410

1,377

1,410

0.1

PRIME URBAN Gakugei Daigaku

775

743

849

0.1

PRIME URBAN Senzoku

474

459

484

0.0

PRIME URBAN Meguro Riverside

414

389

413

0.0

PRIME URBAN Meguro Ohashi
Hills

2,970

2,823

3,280

0.3

PRIME URBAN Meguro Aobadai

1,310

1,267

1,700

0.1

PRIME URBAN Gakugei Daigaku
II

1,080

1,043

1,310

0.1

PRIME URBAN Naka Meguro II

2,850

2,819

3,370

0.3

PRIME URBAN Kachidoki

2,570

2,605

2,450

0.2

PRIME URBAN Shinkawa

2,100

2,125

2,520

0.2

4,220

3,951

4,760

0.4

1,550

1,489

1,900

0.2

PRIME URBAN Hongo Ikizaka

557

524

630

0.1

PRIME URBAN Hakusan

866

795

930

0.1

Property name

PROUD FLAT Waseda
PROUD
Kawadacho

Resident
ial

Greater
Tokyo
area

FLAT
(Note 7)

Shinjuku

FLAT

PRIME URBAN
Yokoyamacho
PRIME URBAN
Hamacho

Kiyosumi

Nihonbashi
Nihonbashi

41

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

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

Use

Property nameAcquisition price(Millions of Yen)
(Note 1)

Carrying amount(Millions of Yen)
(Note 2)

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

Investment
share
(%)
(Note 4)PRIME URBAN Yotsuya Gaien
Higashi

1,490

1,457

1,460

0.1

PRIME URBAN Nishi Shinjuku I

1,090

1,043

1,240

0.1

PRIME URBAN Nishi Shinjuku II

885

837

897

0.1

PRIME
URBAN
Naitomachi

430

428

451

0.0

PRIME URBAN Nishi Waseda

421

389

463

0.0

PRIME URBAN Shinjuku Ochiai

594

597

639

0.1

PRIME URBAN Mejiro

1,430

1,381

1,700

0.1

PRIME URBAN Kagurazaka

2,900

2,735

3,450

0.3

PRIME URBAN Sangen Jaya III

718

713

659

0.1

PRIME
URBAN
Karasuyama

717

730

652

0.1

PRIME URBAN Sangen Jaya

724

691

741

0.1

PRIME
URBAN
Karasuyama

667

625

759

0.1

549

517

579

0.0

Daiwa Real EstateAppraisal Co., Ltd.

338

319

357

0.0

Daiwa Real EstateAppraisal Co., Ltd.

746

703

756

0.1

PRIME URBAN Yoga

1,390

1,320

1,670

0.1

PRIME URBAN Shinagawa Nishi

494

505

433

0.0

PRIME URBAN Osaki

1,860

1,793

1,930

0.2

PRIME URBAN Oimachi II

1,040

1,091

1,080

0.1

PRIME URBAN Yukigaya

951

939

785

0.1

PRIME URBAN Omori

905

854

892

0.1

PRIME
Minami

774

719

740

0.1

1,720

1,659

1,860

0.2

498

461

534

0.0

PRIME URBAN Takaido

1,060

1,048

821

0.1

PRIME URBAN Nishi Ogikubo

414

399

431

0.0

PRIME URBAN Nishi Ogikubo II

1,790

1,739

1,990

0.2

PRIME URBAN Otsuka

730

688

714

0.1

PRIME URBAN Komagome

437

441

402

0.0

PRIME URBAN Ikebukuro

3,800

3,593

4,440

0.4

PRIME
Nakacho

2,420

2,286

2,500

0.2

PRIME URBAN Kameido

779

714

774

0.1

PRIME URBAN Sumiyoshi

632

581

619

0.1

PRIME URBAN Mukojima

528

516

484

0.0

PRIME URBAN Kinshi Koen

1,290

1,177

1,260

0.1

PRIME URBAN Kinshicho

758

702

735

0.1

PRIME URBAN Hirai

722

657

710

0.1

PRIME URBAN Kasai

640

589

630

0.1

Area

PRIME
Galleria

URBAN

Shinjuku

ChitoseMinami
Karasuyama

PRIME URBAN Karasuyama
Court
PRIME
URBAN
ChitoseFunabashi

Greater
Resident
Tokyo
ial
area

URBAN

Denenchofu

PRIME
URBAN
Kamiikedai

Nagahara

PRIME
URBAN
Kamitakada

NakanoURBAN

Monzen42

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

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

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

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

Use

Resident
ial

Area

GreaterTokyo
area

Acquisition price(Millions of Yen)
(Note 1)

Carrying amount(Millions of Yen)
(Note 2)

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

Investment
share
(%)
(Note 4)PRIME URBAN Kasai II

981

895

918

0.1

PRIME URBAN Kasai East

1,140

1,046

1,280

0.1

PRIME
URBAN
Kuyakushomae

1,080

998

1,280

0.1

PRIME URBAN Asakusa

384

381

310

0.0

PRIME URBAN Machiya South
Court

1,910

1,844

2,120

0.2

PRIME URBAN Musashi Koganei

1,910

1,922

2,060

0.2

PRIME URBAN Musashino Hills

1,280

1,298

1,390

0.1

PRIME URBAN Koganei Honcho

791

749

889

0.1

PRIME URBAN Kumegawa

1,520

1,365

1,520

0.1

PRIME URBAN Musashi Kosugi
comodo

1,940

1,949

2,340

0.2

PRIME URBAN Kawasaki

962

947

1,090

0.1

PRIME URBAN Shinyurigaoka

1,020

941

1,280

0.1

PRIME URBAN Tsurumi Teraya

493

484

412

0.0

PRIME URBAN Urayasu

804

754

846

0.1

PRIME URBAN Gyotoku I

633

597

654

0.1

PRIME URBAN Gyotoku II

730

689

791

0.1

PRIME URBAN Gyotoku Ekimae

488

452

496

0.0

PRIME URBAN Gyotoku Ekimae
II

469

452

544

0.0

PRIME URBAN Gyotoku III

747

725

869

0.1

PRIME URBAN Nishi Funabashi

761

684

806

0.1

PRIME URBAN Kawaguchi

1,580

1,485

1,720

0.1

PROUD FLAT Hatchobori

920

921

1,140

0.1

PROUD FLAT Itabashi Honcho

720

710

895

0.1

PRIME URBAN Meguro Mita

1,058

1,116

1,130

0.1

Fukasawa House Towers H&I

7,140

7,041

7,830

0.7

PRIME URBAN Toyosu

5,290

5,060

5,850

0.5

PRIME URBAN
Kayabacho

2,850

2,785

3,140

0.3

1,320

1,273

1,340

0.1

1,310

1,259

1,430

0.1

1,300

1,375

1,380

0.1

PROUD FLAT Omori Ⅲ

1,110

1,125

1,330

0.1

PROUD FLAT Kinshicho

785

793

978

0.1

PROUD FLAT Sangenjaya II

2,750

2,797

3,090

0.3

PROUD FLAT Sotkanda

2,280

2,333

2,670

0.2

PROUD FLAT Noborito

1,216

1,246

1,390

0.1

PROUD FLAT Yoyogi Hachiman

966

988

1,120

0.1

PROUD FLAT Nakaochiai

844

865

910

0.1

PROUD FLAT Shibuya Tomigaya

3,960

4,060

4,480

0.4

Property nameItabashiNihonbashi

PRIME URBAN Yoga II
PRIME URBAN Musashi Koganei
II
PRIME URBAN Gakugei daigaku
parkfront

43

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

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

Use

Acquisition price(Millions of Yen)
(Note 1)

Carrying amount(Millions of Yen)
(Note 2)

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

Investment
share
(%)
(Note 4)

PROUD FLAT Miyazakidai

1,390

1,450

1,490

0.1

PROUD FLAT Asakusabashi III

1,230

1,283

1,260

0.1

PROUD FLAT Togoshi-Koen

2,580

2,662

2,630

0.2

PROUD FLAT Itsutsubashi

652

575

695

0.1

PROUD FLAT Kawaramachi

735

639

705

0.1

PROUD FLAT Shin Osaka

1,620

1,429

1,790

0.2

PRIME URBAN Kita Juyo Jo

274

247

270

0.0

PRIME URBAN Odori Koen I

502

451

496

0.0

PRIME URBAN Odori Koen II

334

303

305

0.0

PRIME URBAN Kita Juichi Jo

547

484

580

0.0

PRIME URBAN Miyanosawa

475

417

480

0.0

PRIME URBAN Odori Higashi

394

352

419

0.0

PRIME URBAN Chiji Kokan

249

218

263

0.0

PRIME URBAN Maruyama

229

204

220

0.0

PRIME URBAN Kita Nijuyo Jo

437

384

458

0.0

PRIME URBAN Sapporo Idaimae

616

546

628

0.1

PRIME
Riverfront

4,480

4,009

4,730

0.4

PRIME URBAN Kita Sanjo Dori

1,730

1,541

1,910

0.2

PRIME
Icchome

1,140

1,029

1,100

0.1

PRIME URBAN Yaotome Chuo

466

409

448

0.0

PRIME URBAN
Amamiya

949

933

959

0.1

PRIME URBAN Aoi

712

661

669

0.1

PRIME URBAN Kanayama

553

495

608

0.1

PRIME URBAN Tsurumai

1,020

900

1,060

0.1

PRIME URBAN Kamimaezu

1,590

1,437

1,690

0.1

PRIME URBAN Izumi

3,770

3,428

4,000

0.3

1,810

1,638

1,990

0.2

PRIME URBAN Hakata

588

530

607

0.1

PRIME URBAN Yakuin Minami

265

236

287

0.0

PRIME URBAN Kashii

398

351

356

0.0

PRIME URBAN Hakata Higashi

622

552

550

0.0

PRIME URBAN Chihaya

604

551

583

0.0

Serenite Shinsaibashi Grande

5,567

5,747

5,770

0.5

202,047

193,622

217,472

18.3

Hotel Vista Sapporo Odori

3,600

3,711

3,750

0.3

Red Planet Naha Okinawa

2,650

2,667

2,690

0.2

6,250

6,378

6,440

0.5

4,900

5,136

5,430

0.5

Area

GreaterTokyo
area

Resident
ial

Other
areas

Property name

URBAN

Sapporo

URBAN

Nagamachi

Tsutsumidori

PRIME
URBAN
Honmachi

Sakaisuji

Residential subtotal
Hotels

Other
areas

Hotel subtotal
Other

GreaterTokyo
area

Ryotokuji
University
Shin-UrayasuCampus (Land)

44

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

Valuers

Co.,

Valuers

Co.,

Japan Real
Institute

EstateNomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

Use

Area

Property nameAcquisition price(Millions of Yen)
(Note 1)

Carrying amount(Millions of Yen)
(Note 2)

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

Investment
share
(%)
(Note 4)

4,900

5,136

5,430

0.5

1,051,686

1,035,946

1,185,682

100.0

Other subtotal
Total(Note 1)

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

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

(Note 3)

“Opinion of value at end of period” is the appraisal or investigation value provided by the respective real estate appraiser (the value calculated by therespective real estate appraiser with the date of the 10th fiscal period-end (August 31, 2020) as the effective date of value and the value indicated by the
income approach as a standard) in accordance with NMF’s Articles of Incorporation and the Regulations Concerning Accounting of Investment
Corporations.
The appraisal or investigation value of real estate is no more than an indication of the opinion of the value of the appraised real estate at the time ofappraisal by the respective real estate appraiser, etc., conducted in accordance with the Act on Real Estate Appraisal (Act No. 152 of 1963, including
subsequent amendments), and real estate appraisal standards, etc. Reappraisal of the same real estate may result in a different appraisal or investigation
value, depending on the real estate appraiser conducting the appraisal and the method or timing of the appraisal. In addition, the appraisal of real estate is
not a guarantee or promise of the possibility of transactions at present or in the future at the appraised value.
Furthermore, the cost approach and income approach (direct capitalization approach and discounted cash flow approach) are used in appraisal
calculations. The appraisal value is determined by the income approach if the subject real estate’s price is estimated with an emphasis on investment
profitability in the market and it is seen as an investment target for qualified institutional investors, etc. The value indicated by the cost approach is used as
an index to verify the value indicated by the income approach.
The “direct capitalization approach” is a method where the net revenue in a certain period is capitalized by the capitalization rate. It is a method ofseeking the value indicated by the income approach (a method of seeking the estimated value of real estate by seeking the sum of the present value ofthe net revenue the real estate is expected to generate in the future).
The “discounted cash flow (DCF) approach” is a method where the net income and terminal value arising in multiple successive periods are discounted
to present value according to their periods and totaled. It is also a method of seeking the value indicated by the income approach.

(Note 4)

“Investment share” is the period-end opinion of value of the respective asset as a percentage of the total amount of the period-end opinion of value ofthe entire portfolio (298 properties in total). The figures are rounded to the first decimal place. Accordingly, the sum total may not be exactly 100.0.

(Note 5)

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

(Note 6)

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

(Note 7)

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 the(Note 8)

NMF changed the name of the following portfolio properties as of October 1, 2020 after the end of the 10th fiscal period (the end of August 2020).

amount equivalent to the book value of the transferred portion at the time of execution of the transfer.
The same shall be applied throughout this document.

Use of Property
OfficeRetailNew Name

Former NamePMO Tamachi II

PMO Tamachi Higashi

PMO Hatchobori III

PMO Kyobashi Higashi

Welcia Kawagoe（Land）

Mitsubishi Motors Kawagoe (Land)

45

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

C. Status of Capital Expenditures(a) Schedule of Capital Expenditures
Of the scheduled amount of capital expenditures associated with renovation and other work planned (orcompleted) as of the date of this document’s publication for the assets held at the end of the 10th fiscal
period, the following are the major capital expenditures. Please note that the scheduled construction costlisted below include the portion charged to expenses in accounting.
Scheduled construction cost(Thousands of Yen)
AmountTotal
paid during
Totalamountthe 10thamountalreadyfiscalpaid
periodName of real estate, etc.
(Location)

PurposeScheduled period

NMF Shinjuku EAST Building(Shinjuku Ward, Tokyo)

Renewal of air conditioner at thefirst and the second floors

From Sep. 2020
To Feb. 2021

97,000--

NMF Takanawa Building(Shinagawa Ward, Tokyo)

Renewal of elevator

From Oct. 2020
To Aug. 2021

32,000--

NRE Osaka Building(Osaka City, Osaka)Renewal of horizontal watersupply and drainage pipe (I/II)

From Apr. 2020
To Jan. 2021

130,000--

NRE Osaka Building(Osaka City, Osaka)Renewal of horizontal watersupply and drainage pipe (II/II)

From Dec. 2020
To Jun. 2021

130,000--

NRE Yotsubashi Building(Osaka City, Osaka)Renewal of emergency power
generator

From Dec. 2019
To Nov. 2020

83,000--NRE Yotsubashi Building(Osaka City, Osaka)Renewal of passenger elevator(phase I)

From Oct. 2019
To Feb. 2021

95,000--NRE Yotsubashi Building(Osaka City, Osaka)Renewal of passenger elevator(phase II)

From Apr. 2020
To Aug. 2021

95,000--

NMF Ginza 4-chome Building(Chuo Ward, Tokyo)

Renewal of elevator main body

From Sep. 2020
To Feb. 2022

45,000--

Renewal of power receiving and
NRE
Higashi-nihonbashi
transforming equipment (phase
Building (Chuo Ward, Tokyo)
III)

From Jul. 2020
To Dec. 2020

36,000--

NMF Hakata Ekimae Building（Fukuoka City, Fukuoka）

From Oct. 2020
To Dec. 2020

45,100--PRIME URBAN Shinagawa Installation of pressure water
Nishi (Shinagawa Ward, Tokyo) service system

From Sep. 2020
To Sep. 2020

6,500

-

-

PRIME URBAN Shibaura LOFT
Repair of exterior wall
(Minato Ward, Tokyo)

From Sep. 2020
To Feb. 2021

42,800--PRIME URBAN Nishi Shinjuku
Repair of exterior wall
II (Shinjuku Ward, Tokyo)

From Sep. 2020
To Feb. 2021

29,000

-

-

PRIME
URBAN
Minami
Karasuyama (Setagaya Ward, Repair of exterior wall
Tokyo)

From Sep. 2020
To Feb. 2021

12,400--PRIME URBAN Nishi Funabashi
Repair of exterior wall
(Funabashi City, Chiba)

From Sep. 2020
To Feb. 2021

8,210

-

-

PROUD FLAT Shin Osaka(Osaka City, Osaka)

From Sep. 2020
To Jan. 2021

27,800--

Renewalsystemof

air-conditioning

Repair of exterior wall

(Note) Total amount already paid does not include the amount paid during the 10th fiscal period.

(b) Capital Expenditures during the 10th Fiscal Period
The following is an overview of the major construction work falling under the category of capital
expenditures that was conducted during the 10th fiscal period for the assets held as of the end of the10th fiscal period. Capital expenditures during the 10th fiscal period were ¥3,261,865 thousand and,
when combined with the ¥1,418,953 thousand repair expenses classified as expenses during the 10th
fiscal period, a total of ¥4,680,818 thousand in construction work was implemented. The following
46

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 10th Fiscal Period Ended August 31, 2020

construction cost shows the amount equivalent to capital expenditures.
Name of real estate, etc.
(Location)

PurposeNRE Osaka Building
Renewal of power generator(Osaka City, Osaka)
NMF Hakata Ekimae Building
Renewal of air conditioner(Fukuoka City, Fukuoka)
NRE Hiroshima Building
Renewal of air conditioner(Hiroshima City, Hiroshima)
PRIME
URBAN Musashino
Hills
Renewal of passenger elevator(Koganei City, Tokyo)
PRIME URBAN Shinagawa
Nishi
Renewal of passenger elevator(Shinagawa Ward, Tokyo)
PRIME URBAN Komagome(Toshima Ward, Tokyo)

Repair of exterior wall

PRIME URBAN Shinagawa
Installation ofNishi
system(Shinagawa Ward, Tokyo)
Other real estate, etc.

pressure water service

Improvement of features
Total

PeriodConstruction cost(Thousands of Yen)

From Sep. 2019
To .Aug. 2020

250,022

From Mar. 2020
To .May. 2020

46,870From Mar. 2020
To .Jun. 2020

35,499From Jul. 2020
To .Aug. 2020

15,665

From Jul. 2020
To .Aug. 2020

15,387

From Mar. 2020
To .Mar. 2020

8,180

From Aug. 2020
To .Aug. 2020

6,750

From Mar. 2020
To .Aug. 2020

2,883,489
3,261,865

47