Nomura Real Estate Master Fund., Inc.

Supplement Documentation for“Notice Concerning Acquisition and Disposition of Trust Beneficial

Interest in Domestic Real Estate,” etc. dated today
July 9, 2024

Measures and Their Effects
Unitholder return measures

Portfolio reinforcement(1) Continuous replacementwith high quality asset✓ Acquire a good logistics facility anddispose of an office facility(2) Acquisition of own
investment units✓ Address the weak investment unit prices[Acquisition] Landport Tama (Logistics)

Amount equivalent
to the gain onsales(4.2 billion yen)(3) Increase in distribution✓ Boost distribution by acquiring own investment
units✓ Carry out even distribution across four fiscal
periods (Note 2) based on the basic strategies＜ Example of distribution ＞(Note 3)
Funds on hand
(3.5 billion yen)

(Note1)[Disposition]
Harumi Y
Distribution of
the amountequivalent to
the gain on
sales

Even distribution acrossfour fiscal periods(0.7 billion yen)

Acquisition of own
investment units(7 billion yen)
Construction completed in Jun.
2022
Scheduled acquisition price:17.5 billion yen

As of Apr. 30, 2024

Construction completed in Dec. 2001
Scheduled disposition price:22.8 billion yen

After the Acquisition
and Disposition

Cruising
distribution

Total value of acquisition

7 billion yen(at maximum)

Total number ofinvestment units acquired

60,000 units(at maximum)

Acquisition period

Jul. 10, 2024
to Aug. 15, 2024

Acquisition ratio

1.27%

Period ending Aug.
31, 2024

Period ending Feb.
28, 2025

Cruising distribution (Note 4)Distribution of the amount equivalent to the gain on sales (Note 5)

Office40.3%

Office42.0%

Logistics
20.3%

Logistics
21.9%

Reduction in the office share from 42.0% to 40.3%

Distribution of the amount equivalent to the gain on sales of Harumi Island Triton
Square Office Tower Y
Cruising distribution effects of the boost in the acquisition of own investment units(Note 1) The effects of increases in asset management fees II etc. are added to the gain on sale. The same applies below.
(Note 2) A portion of gain on sales generated during the sale period will be kept as internal reserves, and this amount will be used to carry out distributions in excess of net earnings
across the subsequent three fiscal periods (approximately one third for each period).
(Note 3) The example of distribution is an estimated value calculated based on the assumption that the Fund acquires 49,434 units at the closing price of July 5, 2024 (141,600 yen)against the total value of the acquisition, and Even distribution across four fiscal periods and expected impacts of the boost in the acquisition of own investment units werereflected in the financial performance forecast for the period ending Aug. 31, 2024 announced today and in the financial performance forecast for the period ending Feb. 28,
2025 announced on Apr. 17, thus differing from the actual distribution.
(Note 4) Cruising distribution＝Distribution - (Distribution from the amount equivalent to the gain on sales (*including even distribution and excluding impacts of the increase in asset
management fees II in the period when sale is recorded) + Use of internal reserves)(Note 5) This refers to the amount equivalent to the gain on sales acquired from the dispositions that have been already announced ((1) PU Kanayama, PU Kamimaezu, and PU
Chihaya, (2) Nomura Real Estate Ueno Building, and (3) PU Iidabashi)

2

Flexible Changes to the Announced Management Strategy
With the background of the weak investment unit
prices, diversifying unitholder returns
Diversification of unitholder returns
considering the environment
Recognition of an
appropriate environment
Announcement andpromotion of the strategy

Weak investment unit price shift
against solid operating conditions
TSE
REIT Index
東証REIT指数

Basic strategy

Taking advantage of the features of NMF,
Return to unitholder through Acquisition of own
investment units and Even distribution across four
fiscal periods
Amount equivalent tothe gain on sales(Approx. 4.2 billion yen)

TheFund
本投資法人

105

Fully utilize the amount equivalent to
the gain on sales generated for even 100
distribution across four fiscal periods.

0.7 billion yen

Funds on hand
(3.5 billion yen)

3.5 billion yen

3.5 billion yen

95(conceptual)
90

Amount equivalent to thegain on sales(Approx. 4.2 billion yen)85

80
2024/1Jan.

Even distribution acrossfour fiscal periods(4.2 billion yen in total)

2024

2024/2Feb.

2024/3
Mar.

2024

2024

2024/4
Apr.

2024/5May.

2024/6Jun.

2024/7
Jul.

2024

2024

2024

2024

Even distribution
across four fiscalperiods(0.7 billion yen)

Acquisition of own
investment units(7 billion yen)

Continuousimplementation

New measure

Make unrealized gains tangible toacquire own investment units
3

Possible to Utilize the Amount Equivalent to the Gain on Sales as Free Cash (Note1)
Differences in the book values for accounting purposes andtax purposes after two mergers

Book value image[Property A]

Former NMF

Comprehensive type＜Composite type

Reverse to themarket value asof the merger

Take over thebook value as ofthe merger

Regarding the properties owned by NOF, NRF, and TOP, which are the Consolidated Investment
Corporations in each merger, the book value for accounting purposes after the merger is the market value
at the time of the merger (=appraisal value), and the book value for tax purposes after the merger takes
over the book value for tax purposes of the Consolidated Investment Corporations, resulting in differences
in book values for accounting purposes and tax purposes.

Comprehensive type

Accounting
purposesTax purposes

NMFNOFTOP

NRF[Property B]＞

For office typeFor residential facility typeMerger of the three REITs
in Oct. 2015

Merger with Top REIT
in Sept. 2016

Tax purposes

Accountingpurposes

Handling of the amount equivalent to the gain on sale acquired from the disposition of Harumi Island Triton Square Office Tower Y
The book value before the merger of Harumi Island Triton Square Office Tower Y, owned by Top REIT,
was higher than the market value at the time of the merger (=appraisal value), and as its book value at
NMF for tax purposes is higher than that for accounting purposes, gain and loss on sales against thedisposition price differ.
Bool value for tax purposes
28.1 billion yen

Disposition
price
22.8 billion yen

Loss on sales
5.6 billion yen
Amount equivalent tothe gain on sales
4.2 billion yen

Book value for accounting
purposes
17.8 billion yen

Tax

Not taxable income because it
is a gain on sales foraccounting purposes but aloss on sales for tax purposes⇒ Under accounting principles, the gain on
sales does not necessarily have to bedistributed. Internally reserving a part of thegain on sales while satisfying conduit
requirements, etc. enables us to utilize thegain as free cash (note2).

Accounting(Note1) The principal distribution policy of the Fund is to distribute the amount of positive amortization of goodwill, etc. in excess of earnings on net income excluding the gain on sales foraccounting purposes. If the gain on sales for accounting purposes is generated, the Fund can reserve free cash by not distributing a portion of the distributions in excess of earnings equivalent tothe gain on sales. (Note2) There is a set upper limit for each fiscal period on the amount of reserved free cash4

This document has been prepared for the purpose of provision of information only, and should not be construed as an offer, solicitation or commercial conduct of any nature associated with any specific products. Investors wishing to purchase the investment units ofNomura Real Estate Master Fund, Inc. should contact their own securities brokers or dealers. A fee may be charged by your financial instruments business operator in relation to the sale or purchase of investment units. For management fees that the Fund pays toNomura Real Estate Asset Management Co., Ltd., please refer to the terms and conditions of the Fund, etc. The forward-looking statements with respect to the future financial results contained in this document are based on the current facts about the investment
policy of the Fund, applicable laws and regulations, the market environment, business practice, etc., as of the preparation date of this document and do not reflect or consider any changes in the circumstances after the preparation date. These forward-looking
statements inherently reflect uncertainty about known risks as well as unknown risks and other factors and may deviate from the actual operating and management results, financial conditions, etc., of the Fund. Investment in real estate investment securities may
result in a loss due to a decline in the transaction price caused by, for example, changes in the price or the revenue-generating capability of the underlying properties or deterioration of the financial conditions of the issuer. Although the information contained in thisdocument is intended to be complete and thorough, there is no assurance of precision and safety of the same. Please note that the contents of this document is subject to change or cancellation without prior notice. It is prohibited to make duplication, reproduction,
distribution or use of any part or whole of the information contained in this document without express prior written consent.