(Reference) SUMMARY OF FINANCIAL RESULTS (REIT)
For the 13th Fiscal Period Ended February 28, 2022
April 19, 2022
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

May 27, 2022
May 24, 2022
Yes
Yes
[Amounts less than one million yen are truncated]

1. Financial Results for the 13th Fiscal Period (from September 1, 2021 to February 28, 2022)(1) Operating Results[figures are the rate of increase (decrease) compared with the previous period]
Operating revenues
Period ended
February 28, 2022
August 31, 2021

million yen
37,52037,519Operating profit

%
0.0
(1.4)

Net income
per unit
Period ended
February 28, 2022
August 31, 2021

million yen
14,593
14,741

Ordinary income
%
(1.0)
(4.1)

%
(0.4)
(4.7)

Ratio ofordinary income
to total assets

Return on unitholders’equityyen

million yen
12,38012,435

%

2,625
2,637

Net income%

million yen
12,377
12,434

(0.5)
(4.5)

Ratio ofordinary income
to operating revenues
%

2.0
2.0

%

1.0
1.0

33.0
33.1

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

yen
2,625
2,637

million yen
12,377
12,433

Period ended
February 28, 2022
August 31, 2021

Distribution
in excess of
net income per
unit

Total
distributions
in excess of
net income

yenmillion yen
2,918
3,069

619
651

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

3,244
3,288

million yen
15,296
15,503yen

Distribution
payout ratio

Ratio ofdistributions to
net assets

%

%

99.9
99.9

2.0
2.0

(Note 1) Of the ¥651 distribution in excess of net income per unit in the fiscal period ended August 31, 2021, ¥387 is a distribution of the allowance fortemporary difference adjustments and ¥264 is other distributions in excess of net income. Furthermore, the ratio of decreasing surplus is 0.003.
Of the ¥619 distribution in excess of net income per unit in the fiscal period ended February 28, 2022, ¥444 is a distribution of the allowance fortemporary difference adjustments and ¥175 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
February 28, 2022
August 31, 2021

million yen
1,187,420
1,192,507

Net assets
million yen
616,878
619,901

Net assets to total assets

Net assets per unit

%
52.0
52.0

yen
130,827
131,468(4) Status of Cash FlowsNet cashprovided by (used in)operating activities
Period ended
February 28, 2022
August 31, 2021

Net cashprovided by (used in)investing activities

million yen
22,51021,261

Net cashprovided by (used in)financing activities

million yen(19,837)(6,251)

Cash andcash equivalents
at end of period

million yen(15,547)(15,739)

million yen
50,237
63,111

2. Earnings Forecasts for the 14th Fiscal Period (from March 1, 2022 to August 31, 2022) and the 15th Fiscal Period(from September 1, 2022 to February 28, 2023)[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

August 31, 2022
February 28, 2023%

mllion yen%

million yen

38,762

3.3

38,243(1.3)

15,467

6.0

15,069(2.6)%

income)%million yen

yen

yen

13,271

7.2

13,220

6.8

2,800

496

3,296

12,889(2.9)

12,888

(2.5)

2,732

557

3,289

(Reference) Forecasted net income per unit
For the fiscal period ending August 31, 2022: ¥2,803
For the fiscal period ending February 28, 2023: ¥2,733*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:

Yes
None

③ Changes in accounting estimates:
None④ Retrospective restatements:
None(Note) For details of ①, please refer to “Notes Concerning Changes in Accounting Policies” on page 23.
(2) Number of Investment Units Issued and Treasury Investment Units① Number of investment units issued (including treasury investment units)
As of February 28, 2022:
4,715,200 units
As of August 31, 2021:
4,715,200 units② Number of treasury investment units
As of February 28, 2022:– units
As of August 31, 2021:– 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 32.
* This summary of financial results is not subject to audit procedures by a certified public accountant or an audit
firm.
* Forward-looking statements
The earnings forecasts and other forward-looking statements contained in this document are based on
information currently available to and certain assumptions deemed reasonable by NMF. Accordingly, actual
earnings performance and other results may differ materially due to a variety of factors. Furthermore, suchforward-looking statements do not constitute a guarantee of future distributions. For more information on
the assumptions underlying forward-looking statements and the use of such statements, please refer to“Assumptions Underlying Earnings Forecasts for the Fiscal Period Ending August 31, 2022 (14th fiscal
period: March 1, 2022 to August 31 2022) and the Fiscal Period Ending February 28, 2023 (15th fiscal
period: September 1, 2022 to February 28 2023) ” on page 8.

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 thistranslation and the Japanese original, the Japanese original shall prevail.

yenAttachment

Table of Contents
1.

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

Financial Statements ..................................................................... 11(1) Balance Sheet .......................................................................... 11(2) Statement of Income and Retained Earnings .................................................. 14(3) Statement of Changes in Net Assets ......................................................... 15(4) Statement of Cash Distributions ............................................................ 19(5) Statement of Cash Flows ................................................................. 21(6) Notes Concerning the Going Concern Assumption ............................................. 22(7) Notes Concerning Significant Accounting Policies .............................................. 22(8) Notes Concerning Changes in Accounting Policies.............................................. 23(9) Notes to Financial Statements ............................................................. 25(10) Increase (Decrease) in Total Number of Investment Units Issued and Outstanding .................... 34

3. Reference Information ...................................................................... 36(1) Investment Status ....................................................................... 36(2) Investment Assets ...................................................................... 37

1

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

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 undermanagement (Note). In order to realize this basic policy, NMF adopts an investment strategy that centers on the
Greater Tokyo area (Tokyo, Kanagawa, Chiba and Saitama prefectures), which offers strong tenant demand,
while also considering regional diversification through investment in all of Japan’s three major metropolitan
areas and other major cities. By combining the “diversified type strategy” which enables sustainable growthby investing in a variety of facilities, such as offices, retail facilities, logistics facilities, residential facilities andother 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 oneof the group company of the Nomura Real Estate Group (Nomura Real Estate Holdings, Inc. and its
consolidated subsidiaries etc. The same shall apply hereinafter.), NMF aims to increase unitholder value by
securing stable income over the medium to long term and the steady growth of assets under management.
(Note)

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)
The Japanese economy during the fiscal period under review continued to recover, especially in
manufacturing industries. However, downward pressure increased again for spending on some services suchas restaurants and hotels while the difficult situation due to COVID-19 continued. Varied conditions wereseen, depending on the industries.
(Real Estate Leasing Market)
As was the case in the previous fiscal period, the situation in the real estate leasing market during the fiscal
period under review varied according to the sector.
Although the office sector had seen a rising vacancy rate in Tokyo since the second half of 2020 as officedemand decreased due to the economic downturn and expansion of teleworking associated with COVID-19,
the current vacancy rate has declined slightly. Meanwhile, new demand shows signs of recovery but remains
limited compared to the pre-COVID-19 level, which has resulted in a continued decline in advertised rents.
The vacancy rate increased in some regional cities but increases in vacancy rates and declines in advertised
rents were generally moderate, due in part to low teleworking rates compared to Tokyo.
In the retail facility sector, business continued to be robust at retailers, especially supermarkets and drug
stores. Meanwhile, sales remained weak particularly in the restaurant industry due to the spread of COVID19 and the subsequent declaration of a state of emergency.
In the logistics sector, demand from providers of third-party logistics (3PL) (Note), NMF’s main logistics
tenants, and e-commerce-related operators continues to be robust. In the Greater Tokyo area, the vacancy
rate rose slightly, despite strong demand, due to a large supply of logistics facilities. Meanwhile, the vacancy
rate in the Kinki area remained low due to low supply.
(Note) Third-party logistics (3PL) refers to logistics services outsourced by shippers for part or all of their logistics functions.

In the rental apartment sector, the Tokyo metropolitan area maintains a high occupancy rate. However,2Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

demand for rental apartments, especially single type in the city center, continues to weaken, being impacted
by more people moving out due to the expansion of teleworking and less people moving in due to changes in
employment conditions. Meanwhile, with regard to demographic trends in Tokyo, an overall net outflow ofpeople was recorded since July 2020, but a net inflow was recorded in January 2022, which has resulted in a
recent modest recovery in demand for rental apartments.
The hotel sector was temporarily on a recovery trend as COVID-19 settled down but has been in a severe
state again following the resurgence of infections.
(Real Estate Transaction Market)
The trading volume of commercial real estate in 2021 saw a slight increase year on year. Some companies
sold properties as their financial performance deteriorated due to the COVID-19 pandemic or because theywanted to increase asset efficiency. Meanwhile, there continued to be large-scale acquisitions by overseas
investors, real estate companies in Japan, J-REITs and private placement funds.
(J-REIT Market)
After having declined significantly due to the spread of COVID-19 in the first half of 2020, the TSE REIT
Index was on a recovery trend in line with the global monetary easing that was implemented and the economic
recovery. However, overall downward pressure became strong with the rising U.S. interest rates and otherfactors in the fiscal period under review, which led to a decline in the index to 1,877.38 points as of February
28, 2022 from 2,142.91 points as of August 31, 2021.
B. Management Performance
Under the circumstances described above in A. Investment Environment, during the fiscal period underreview (13th fiscal period), NMF acquired 1 property (Landport Ome III) and disposed of 2 properties (NMF
Utsunomiya Building and Sundai Azamino). As a result, at the end of the fiscal period under review (as ofFebruary 28, 2022), NMF held 298 properties (total acquisition price: ¥1,081,389 million), the ratio ofinvestment in the Greater Tokyo area was 83.2%, the gross leasable area of the portfolio was 2,166,670.21m2 ,and the portfolio remained highly diversified.
In terms of property and facility management, as described above in A. Investment Environment, theimpact of the renewed spread of COVID-19 infections varies according to sector. Although NMF offeredrent reduction/exemption (¥65 million) and other relief to support some of its retail tenants that closed or
took other measures in response to the renewed spread of COVID-19 infections and the declaration of thesecond state of emergency, the impact on entire portfolio revenue was limited. Furthermore, the office sector
and the rental apartment sector continued to see a rise in the vacancy rate and a decline in advertised rents inthe market as a whole. In the meantime, NMF continued to manage the portfolio with an eye to securing
stable revenues through internal growth with appropriate and flexible leasing activities based on market trends
as well as rent increases upon renewal of contracts with tenants. As a result, the occupancy rate of the whole
portfolio was 98.7% at the end of the fiscal period under review, up 0.6 points from the end of the previous
fiscal period.
In February 2019, NMF set ESG materiality issues that are of high importance to be addressed by NMF
in order to contribute to the realization of a sustainable society by resolving social issues through its businessactivities. Based on the policies, targets and key performance indicators (KPI) set for each materiality, NMF
engages in investment in environmentally friendly properties while working to enhance the efficiency of its
energy use by, for example, introducing eco-friendly and energy-saving countermeasures at its properties,
striving for building a portfolio with low environmental impact. NMF promotes acquisition of Greencertification (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 75 properties and BELS certification for a total of 33 properties.
As a result, the percentage of properties (Note3) with DBJ Green Building certification stood at 56.2 and thatof BELS certification stood at 27.1.
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 56.1(Note4).
In addition, based on the recommendations of the Task Force on Climate-related Financial Disclosure(“TCFD”) for which Nomura Real Estate Asset Management Co., Ltd. ("NREAM"), the asset management
3Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

company to which NMF entrusts management of its assets, expressed its support on July 14, 2020, NMF
summarized policies and initiatives of NMF and NREAM according to the four disclosure items
recommended by the TCFD—Governance, Strategy, Risk Management, and Metrics and Targets—anddisclosed them on NMF’s official website on February 26, 2021. Note that in analyzing and verifying thefinancial impact in Strategy, NMF first assessed the risks and opportunities that climate change risks bring to
NMF Then, based on future climate forecasts published by various international organizations such as die
International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC) as the main
information sources, three possible scenarios—the 4℃, 2℃, and 1.5℃ Scenarios—were set as assumptions
in conducting scenario analysis, and financial impacts were analyzed and verified for each of the risks andopportunities identified. NMF’s policy is to promote initiatives aimed at helping the shift to a low-carbon
society and expanding NMF’s revenue opportunities through greenhouse gas emissions reduction and otherefforts, while adequately managing physical and transition risks associated with climate change.
(Note 1) Green certification refers to either DBJ Green Building Certification, BELS Certification, or CASBEE for Real Estate.
(Note 2) The percentage 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 refinanced ¥30,025 million in interest-bearing liabilities withmaturities.
As a result, the balance of interest-bearing liabilities at the end of the fiscal period under review was¥517,756 million, and the ratio of interest-bearing liabilities to total assets (LTV) was 43.6%.
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 thatcredit 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:

StableD. Business Performance and Distributions
In the 13th fiscal period, operating revenues totaled ¥ 37,520 million, operating profit reached ¥ 14,593
million, ordinary income totaled ¥12,380 million, and net income came to ¥ 12,377 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 ¥15,296 million in distributions(¥3,244 per investment unit). This figure was arrived at by adding to ¥12,377 million in net income aftertaxes ¥2,622 million in amortization of goodwill and ¥300 million in loss on sale of real estate, and excludingfrom the amount of ¥15,300 million the portion for which the per-unit distribution comprising the typesof dividends referred to below would be less than ¥1.
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) came to¥12,377 million (¥2,625 per investment unit). Distribution in excess of net income comprises a distributionof ¥2,093 million (¥444 per investment unit) as allowance for temporary difference adjustment and ¥825
million (¥175 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 by leveraging
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, withboth the external growth and the internal growth, NMF aims to secure the growth of distribution and increase
further unitholder value.
4Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022③

Forecasts of the Financial Results
Forecasts of the Financial Results for the fiscal period ending August 31, 2022 (14th fiscal period: March 1,2022 to August 31, 2022) and the fiscal period ending February 28, 2023 (15th fiscal period: September 1, 2022
to February 28, 2023) are stated below. Assumptions for forecasts of the financial results are referred to thefollowing “Assumptions Underlying Earnings Forecasts for the Fiscal Period Ending August 31, 2022 (14th fiscal
period: March 1, 2022 to August 31, 2022) and the Fiscal Period Ending February 28, 2023 (15th fiscal period:
September 1, 2022 to February 28, 2023)”.

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)14th fiscal period ending
August 31, 2022

15th fiscal period ending
February 28, 2023

¥ 38,762 million¥ 15,467 million¥ 13,271 million¥ 13,220 million¥ 2,803¥ 38,243 million¥ 15,069 million¥ 12,889 million¥ 12,888 million¥ 2,733¥ 2,800¥ 2,732

¥ 496

¥ 557

¥ 3,296¥ 3,289④ Significant Subsequent Events
A. Transfer of the asset(a)NMF sold the following asset after the conclusion of the 13th fiscal period (February 28, 2022).
Ichibancho stear Type of asset
Trust beneficiary interest in mainly real estate Use
Retail Contract date
January 27, 2022
 Transfer date
March 18, 2022
 Transfer price¥5,382 million
 Buyer
Domestic consolidated company
 Impact on 14th fiscal period earnings¥757 million(Scheduled)(b)NMF decided to sell the following asset after the conclusion of the 13th fiscal period (February 28,2022).
NRE Higashi-nihonbashi Building
 Type of asset
Real estate Use
Office Contract date
March 8, 2022
 Transfer date(Scheduled)
September 15, 2022 (Quasi co-ownership of 50%)
March 15, 2023 (Quasi co-ownership of 50%)
 Transfer price(Scheduled)¥2,260 million (Quasi co-ownership of 50%)
¥2,260 million (Quasi co-ownership of 50%)
 Buyer
Domestic general business company
 Impact on 15th fiscal period earnings¥370 million(Scheduled) Impact on 16th fiscal period earnings¥386 million(Scheduled)
The impact of (a) and (b), above, on earnings for the 14th fiscal period (March 1, 2022 to August 31, 2022),
15th fiscal period (September 1, 2022 to February 28, 2023) and 16th fiscal period (March 1, 2023 to August
31, 2023) will be recorded as gain on sales of real estate under operating revenues.
5Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

(Reference)
A. Property acquisition(a) NMF decided to acquire the assets referred to below on January 27, 2022 and completed the acquisition
on March 1 and April 1, 2022.
Property namePMO Hamamatsucho Ⅱ

Type of asset

Real estate（Registry）

Location (Note 1)

2-101-2 Shibakoen, Minato Ward, Tokyo（Street）
2-3-6 Shibakoen, Minato Ward, Tokyo

Structure(Note 1)

Nine-floor steel-framed structure with flat roof

Land area(Note 1)

494.24㎡

Floor area (Note 1)

3,109.42㎡

Type of ownership（Land）Land lease right（Building）Ownership

Completion date(Note 1)

July 29, 2020

Acquisition price (Note 2)¥5,500 million

Date of agreement

January 28, 2022

Date of acquisition

April 1, 2022

Seller

Nomura Real Estate Development, Co., Ltd.

Property name

PROUD FLAT Togoshi-Ginza

Type of asset

Real estate（Registry）

Location (Note 1)

Structure(Note 1)

2-619-2 Hiratsuka, Shinagawa Ward, Tokyo（Street）
2-11-1 Hiratsuka, Shinagawa Ward, Tokyo
Eleven-floor steel-reinforced concrete structure withflat roof

Land area(Note 1)

557.74㎡(Note 3)

Floor area (Note 1)

2,839.75㎡(Note 4)

Type of ownership（Land）Right of site
（Building）Compartmentalized ownership (96.2%)

Completion date(Note 1)

February 18, 2020

Acquisition price (Note 2)¥2,550 million

Date of agreement

January 28, 2022

Date of acquisition

March 1, 2022

Seller

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 indicates the amount, excluding the various expenses required to acquire the property such as taxes
and public dues, etc. (the amount of the transaction payment described in the real estate sale agreement).

6

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

(Note 3) “Land Area” is the total area of the entire building site, and the share of the right of site (co-ownership interest) is
227,602/236,682.
(Note 4) “Floor Area” is the total area of the entire building. The exclusive area of the compartmentalized ownership to be acquiredby the Fund is 2,180.59 m2.

(b) NMF decided to acquire the asset referred to below on March 8, 2022 and completed the acquisition on
March 15, 2022.
Property namePRIME URBAN Higashi Nakano Court (Note 1)

Type of asset

Real estate（Registry）

Location (Note 2)

Structure(Note 2)

4-9-5, 4-9-4 Kita-Shinjuku, Shinjuku Ward, Tokyo（Street）
4-9-12 Kita-Shinjuku, Shinjuku Ward, Tokyo
Ten-floor steel reinforced concrete structure with flat
roofLand area(Note 2)

3,025.78㎡

Floor area (Note 2)

9,235.40㎡

Type of ownership（Land）Ownership（Building）Ownership

Completion date(Note 2)

April 20, 2009

Acquisition price (Note 3)¥7,020 million

Date of agreement

March 8, 2022

Date of acquisition

March 15, 2022

SellerUndisclosed (Note 4)(Note 1) As of June 1, 2022, the name of the property is scheduled to be changed to “PRIME URBAN Higashi Nakano Court”
from the present name of “ACOLT Shinjuku Ochiai”.
(Note 2) Location (excluding Street), Structure, Land Area, Floor area and Completion Date are based on the information in thereal estate registry.
(Note 3) The acquisition price indicates the amount, excluding the various expenses required to acquire the property such as taxes
and public dues, etc. (the amount of the transaction payment described in the real estate sale agreement).
(Note 4) Undisclosed, since a consent has not been obtained from the seller.

7Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

Assumptions Underlying Earnings Forecasts
for the Fiscal Period Ending August 31, 2022 (14th fiscal period: March 1, 2022 to August 31, 2022) and the Fiscal
Period Ending February 28, 2023 (15th fiscal period: September 1, 2022 to February 28, 2023)
Item

Calculation period

Assets Under
Management

Operating revenues

Assumptions
・ Fiscal period ending August 31, 2022 (14th fiscal period): March 1, 2022 to August 31,
2022
・ Fiscal period ending February 28, 2023 (15th fiscal period): September 1, 2022 toFebruary 28, 2023
・ In addition to properties held by the Fund as of the date hereof (300 properties) (the“Acquired Assets”), it is assumed that the Fund will dispose of NRE Higashinihonbashi Building (quasi co-ownership: 50%) (the “Asset to be Disposed of ”) on
September 15, 2022, which is one of the assets to be disposed of announced in the“Notification Concerning Property Acquisition and Disposition” dated March 8, 2022.
・ The forecasts are based on the assumption that the Asset to be Disposed of is disposedof on the above-mentioned date, and that there will be no other changes in assets undermanagement (new property acquisitions or sales of portfolio properties) through theend of the Fiscal Period Ending February 28, 2023 (15th Fiscal Period).
・ The forecasts may be revised due to actual changes in the portfolio.
・ 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 ¥16,493 million in the August 31, 2022
(14th) fiscal period and ¥16,435 million in the February 28, 2023 (15th) fiscal period.
・ Regarding property and other taxes, it is estimated that ¥3,325 million for the Fiscal
Period Ending August 31, 2022 (14th Fiscal Period) and ¥3,312 million for the Fiscal
Period Ending February 28, 2023 (15th Fiscal Period) will be recorded as real estate
rental expenses. In general, the fixed asset taxes and urban planning taxes that will be
imposed, relevant to the year in which such properties will be acquired, will be divided
between the seller and the purchaser on a pro-rata basis based on holding period andsettled at the time of acquisition, and such taxes are deemed as acquisition costs and, are
not included in the expenses. Therefore, the fixed asset taxes and urban planning taxes
regarding the assets to be acquired will not be recorded as expenses for the Fiscal PeriodEnding August 31, 2022 (14th Fiscal Period) and the Fiscal Period Ending February 28,
2023 (15th Fiscal Period).
・ Estimated property management costs (including building management fees andOperating expenses
property management fees) of ¥2,933 million August 31, 2022 (14th) fiscal period and(excluding amortization¥2,860 million in the February 28, 2023 (15th) fiscal period are expected to be recorded
expenses for goodwill)
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 ¥1,271
million in the August 31, 2022 (14th) fiscal period and ¥1,370 million in the February 28,
2023 (15th) fiscal period.
・ Depreciation of ¥5,751 million in the August 31, 2022 (14th) fiscal period and ¥5,712
million in the February 28, 2023 (15th) fiscal period is expected to be recorded as realestate rental expenses.
・ Other operating expenses (including asset management fees, asset custody fees and8Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

Item

Assumptions
general administration fees) are estimated at ¥4,179 million in the August 31, 2022
(14th) fiscal period and ¥4,116 million in the February 28, 2023 (15th) fiscal period.

・ Goodwill is scheduled to be amortized using the straight-line method over 20 years
pursuant to the Business Combination Accounting Standards. Goodwill amortization
expenses are expected to be ¥2,622 million in each the August 31, 2022 (14th) and the
February 28, 2023 (15th) fiscal periods.
Amortization expenses
・ Amortization of goodwill causes a difference between accounting and tax treatment
for goodwill
and may result in the imposition of corporation tax or other tax. NMF intends to make
distributions in excess of net income for the purpose of securing tax relief during the
goodwill amortization period, and it is expected that NMF will be able to avoid suchtaxation.
・ Interest expenses and other borrowing-related expenses are estimated to be ¥ 2,186
million in the August 31, 2022 (14th) fiscal period and ¥2,170 million in the February
Non-operating expenses
28, 2023 (15th) fiscal period.
・ As of this document’s publication, the outstanding interest-bearing liabilities of NMF
are ¥517,756 million, consisting of ¥485,756 million in outstanding borrowings and¥32,000 million in investment corporation bonds.
・ Regarding the ¥25,022 million in borrowings that will come due by the end of theAugust 2022 (14th) fiscal period and the ¥33,592 million in borrowings that will comedue in the February 2023 (15th) fiscal period (¥58,615 million in total), it is assumed
Interest-bearing liabilities
that NMF will make scheduled, partial repayments of ¥42 million in each the August2022 (14th) fiscal period and the February 2023 (15th) 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 interestbearing liabilities other than those stated above through the end of the February 2023
(15th) fiscal period.
・ 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
Investment units
additional issuance of new investment units through February 28, 2023 (the end of the
15th 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 August 31, 2022 (14th) fiscal
period (¥14 million) and the February 28, 2023 (15th) fiscal period (¥8 million) will
be reversed from retained earnings at the respective period ends.
Distribution per unit
・ In the August 31, 2022 (14th) fiscal period and the February 28, 2023 (15th) fiscal
period, NMF assumes there will no change in the per-unit distribution by the change
in fair value of interest rate swaps.
・ The per-unit distribution may vary due to various factors, including changes in theinvestment portfolio, changes in rent income caused by tenant replacements, andunforeseen repairs.
・ 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
Distribution per unit inamount as ATA for the purpose of tax relief. The estimate is based on theexcess of earnings per
assumption that, in order to alleviate the impact on distributions of the amortization
unitof goodwill and other merger-related expenses (the “Merger Expenses”) and thereversal of ATA, if the total difference between accounting and tax treatment for the
relevant fiscal period is less than the sum of the Merger Expenses and the reversal of9Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

Item

Other

Assumptions
ATA, NMF will make other distributions in excess of net income in an amount notexceeding this difference and within the limit prescribed by the regulations of theInvestment Trusts Association, Japan (the “Investment Trusts Association Japan
Regulations”), which restricts the amount to 60/100 of the total amount ofaccumulated depreciation recorded as of the end of the relevant fiscal period less thetotal 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 August 31, 2022 (14th) fiscal
period is expected to be ¥496, comprising ¥404 in distributions of ATA and ¥92 inother distributions in excess of net earnings. The distribution in excess of net earnings
per unit for the February 28, 2023 (15th) fiscal period is expected to be ¥557,
comprising ¥355 in distributions of ATA and ¥202 in other distributions in excess of
net earnings.
・ It is assumed that there will be no amendments in legislation, taxation, accounting
principles, listing requirements, the regulations of the Investment Trusts Association,
Japan, or other laws or regulations that would affect the above forecasts.
・ It is assumed that there will be no unexpected material changes in general economic
conditions and real estate markets.

10Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

2. Financial Statements(1) Balance Sheet
Thousands of Yen
As of August 31, 2021

As of February 28, 2022

Cash and bank deposits

50,213,329

37,690,998

Cash and bank deposits in trust

12,898,209

12,546,482

Rental receivables

722,315577,103

Prepaid expenses

794,071846,265

Derivatives assets－
488,420

4,829
526,178

65,116,347

52,191,857

159,432,901

159,801,735

Less accumulated depreciation(23,101,335)(25,429,558)

Buildings, net

136,331,566

134,372,177

820,055

821,082

Less accumulated depreciation(403,639)(434,005)

Structures, net

416,415

387,076

AssetsCurrent assets

Other
Total current assets
Noncurrent assets
Property and equipment
Buildings

Structures

Machinery

1,049,441

1,113,640

Less accumulated depreciation(594,655)(627,866)

Machinery, net

454,786

485,773

569,914620,439

Less accumulated depreciation(254,552)(300,902)

Tools, furniture and fixtures, net

315,361

319,536

313,197,582

313,203,327

Tools, furniture and fixtures

Land
Buildings in trust
Less accumulated depreciation
Buildings in trust, net*3

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

Machinery in trust

201,463,270

207,049,386(36,928,594)(39,305,841)

164,534,675*3

167,743,545

1,163,791

1,256,410(918,988)(928,254)

244,803*3

328,156

968,161

968,086

Less accumulated depreciation(263,601)(297,250)

Machinery in trust, net

704,560

670,835

Tools, furniture and fixtures in trust

1,088,132

1,150,284

Less accumulated depreciation(541,993)(615,736)

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

546,139*3

534,547*3

422,871,240*3

431,974,656

4,752

4,752

Less accumulated depreciation(1,716)(2,112)

Leased assets, net

3,036

2,640

Construction in progress

124,467

70,431

1,039,744,634

1,050,092,704

Total property and equipment
11

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

Thousands of Yen
As of August 31, 2021

As of February 28, 2022

Goodwill

75,098,009

72,475,766

Leasehold rights

1,331,702

1,331,702

Leasehold rights in trust

7,625,672

7,625,286

51,71450,162

84,107,098

81,482,917

Long-term prepaid expenses

1,979,162

2,176,053

Long-term deposits

478,665445,088

Security deposits

925,784885,773

Derivative assets

6,336

4,632

3,389,950

3,511,547

1,127,241,683

1,135,087,169

149,540

141,555

149,540

141,555

1,192,507,570

1,187,420,582

Intangible assets

Other
Total intangible assets
Investments and other assets

Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets

12Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

Thousands of Yen
Liabilities
Current liabilities
Trade accounts payable
Current portion of long-term debt
Lease obligations in trust
Other accounts payable
Accrued expenses
Accrued income taxes
Accrued consumption taxes
Rent received in advance
Unearned revenue
Provision for loss on disaster
Derivatives liabilities
Other current liabilities
Total current liabilities
Long-term liabilities
Investment corporation bonds
Long-term debt
Lease obligations in trust
Long-term advances received
Security deposits from tenants
Security deposits from tenants in trust
Derivatives liabilities
Total long-term liabilities
Total liabilities
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 August 31, 2021

As of February 28, 2022

2,588,017
55,090,600
871
2,763,065
357,458
1,125
957,285
5,655,117
60,23330,45061,671
11,18867,577,084

1,627,787
58,615,600
871
2,475,394
317,250
2,683
182,3425,588,079
26,694
20,37027,412
17,75568,902,241

32,000,000
430,708,200
2,468
14,854
14,203,988
27,957,577
141,998
505,029,087
572,606,171

32,000,000
427,140,400
2,032
7,706
14,028,101
28,385,395
76,619501,640,254
570,542,496

*3

*4

*2

13

*3

244,739,887

244,893,909

394,012,959

394,012,959(16,624,976)(14,815,391)*4(18,295,737)(16,214,225)(31,440,368)
362,572,590
12,786,253
375,358,843
620,098,731(34,509,963)
359,502,995
12,575,751
372,078,747
616,972,656(197,332)(197,332)
619,901,398
1,192,507,570(94,570)(94,570)
616,878,085
1,187,420,582*2

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

(2) Statement of Income and Retained Earnings

Previous period
from Mar. 1, 2021
to Aug.31, 2021

Operating revenues
Rental revenues
Other rental revenues
Gain on sales of real estate
Total operating revenues
Operating expenses
Real estate rental expenses
Loss on sales of real estate
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

34,679,385
2,839,881－
37,519,267*1

16,097,387－
3,394,277
57,154
178,250
7,800
2,622,242
420,739
22,777,851
14,741,415
328
3,024

Interest expenses on investment corporation bonds
Amortization of investment corporation bondissuance costs
Loan arrangement fees
Other non-operating expenses
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes—current
Total income taxes
Net income
Retained earnings brought forward
Retained earnings at end of period

14

Thousands of Yen
Current period
from Sep. 1, 2021
to Feb.28, 2022
*1
*1
*2

34,654,862
2,703,224
162,853
37,520,940*1*3

15,972,567
300,369
3,385,703
57,099172,5677,800
2,622,242
409,372
22,927,722
14,593,218

－
1,142
4,494

292
2,845
7
6
3,152

1,677,807
173,528

1,585,499
170,560

7,984

7,984

446,432

449,3534,824
2,310,577
12,435,333
12,435,333
1,171
1,171
12,434,161
352,091
12,786,253

2,740
2,216,139
12,380,230
12,380,230
2,727
2,727
12,377,502
198,249
12,575,751

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

(3) Statement of Changes in Net Assets
Previous period (from March 1, 2021 to August 31, 2021)

Unitholders'
capitalBalance at the beginning of
the period
Changes of items during
the period
Distributions ofretained earnings
Reversal of allowancefor temporary difference
adjustments
Distributions in excess
of net earnings fromallowance for temporary
difference adjustments
Other distributions inexcess of net earnings
Net income
Net changes of items
other than unitholders’equityTotal changes of items
during the period
Balance at the end of theperiodThousands of Yen
Unitholders' equity
SurplusCapital surplus
Total deduction from capital surplus
Allowance for
Deduction
Total
Net capital
temporaryfrom otherdeduction
surplusdifference
capitalfrom capitaladjustment
surplussurplusCapitalsurplus244,606,999

394,012,959(14,994,380)(13,763,038)(28,757,419)

365,255,539

－

－

－

－

－

－

132,888－

132,888(132,888)

－

－

－

－

(1,763,484)－(1,763,484)(1,763,484)

－

－

－

(919,464)(919,464)(919,464)

－

－

－

－

－

－

－

－

－

－

－

－

132,888－(1,630,596)(1,052,352)(2,682,948)(2,682,948)

244,739,887

394,012,959(16,624,976)(14,815,391)(31,440,368)

362,572,590

15

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

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

13,503,646

378,759,186

623,366,185(351,354)(351,354)

623,014,831(13,018,667)(13,018,667)(13,018,667)－－(13,018,667)(132,888)(132,888)

－

－

－

－

－

(1,763,484)(1,763,484)－－(1,763,484)－(919,464)(919,464)－－(919,464)

12,434,161

12,434,161

12,434,161－－

12,434,161

－

－

－

154,021

154,021

154,021(717,393)(3,400,342)(3,267,454)

154,021

154,021(3,113,432)

12,786,253

375,358,843

620,098,731(197,332)(197,332)

619,901,398

16

losses onhedgestranslation
adjustments

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

Current period (from September 1, 2021 to February 28, 2022)

Unitholders'
capitalBalance at the beginning of
the period
Changes of items during
the period
Distributions ofretained earnings
Reversal of allowancefor temporary difference
adjustments
Distributions in excess
of net earnings fromallowance for temporary
difference adjustments
Other distributions inexcess of net earnings
Net income
Net changes of items
other than unitholders’equityTotal changes of items
during the period
Balance at the end of theperiodThousands of Yen
Unitholders' equity
SurplusCapital surplus
Total deduction from capital surplus
Allowance for
Deduction
Total
Net capital
temporaryfrom otherdeduction
surplusdifference
capitalfrom capitaladjustment
surplussurplusCapitalsurplus244,739,887

394,012,959(16,624,976)(14,815,391)(31,440,368)

362,572,590

－

－

－

－

－

－

154,021－

154,021(154,021)

－

－

－

－

(1,824,782)－(1,824,782)(1,824,782)

－

－

－

(1,244,812)(1,244,812)(1,244,812)

－

－

－

－

－

－

－

－

－

－

－

－

154,021－(1,670,760)(1,398,834)(3,069,595)(3,069,595)

244,893,909

394,012,959(18,295,737)(16,214,225)(34,509,963)

359,502,995

17

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

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

12,786,253

375,358,843

620,098,731(197,332)(197,332)

619,901,398(12,433,982)(12,433,982)(12,433,982)－－(12,433,982)(154,021)(154,021)

－

－

－

－

－

(1,824,782)(1,824,782)－－(1,824,782)－(1,244,812)(1,244,812)－－(1,244,812)

12,377,502

12,377,502

12,377,502－－

12,377,502

－

－

－

102,762

102,762

102,762(210,501)(3,280,096)(3,126,075)

102,762

102,762(3,023,312)

12,575,751

372,078,747

616,972,656(94,570)(94,570)

616,878,085

18

losses onhedgestranslation
adjustments

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

(4) Statement of Cash Distributions

Yen
Previous period
from Mar. 1, 2021
to Aug. 31, 2021
12,786,253,162

Current period
from Sep. 1, 2021
to Feb. 28, 2022
12,575,751,402

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

3,069,595,200

2,918,708,800

1,824,782,400

2,093,548,800

1,244,812,800

825,160,000

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

154,021,761

102,762,213

154,021,761

102,762,213

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

15,503,577,600[3,288]12,433,982,400

15,296,108,800[3,244]
12,377,400,000[2,637][2,625]

1,824,782,400

2,093,548,800

[387]

[444]

1,244,812,800

825,160,000

[264]

[175]

V. Retained earnings carried forward

198,249,001

95,589,189

I. Retained earnings at end of period

Calculation method for distributions

NMF calculates distributions inaccordance with the cash distribution
policies as specified in Article 36,
paragraphs 1 and 2 of NMF’s Articles ofIncorporation.
For the fiscal period under review,
NMF decided to implement a total of¥15,503,577,600 in distributions (¥3,288
per investment unit). This figure wasarrived at by adding to ¥12,434,161,779 in
net income after taxes ¥2,622,242,820 inamortization of goodwill, and byadding ¥447,173,001 in considerationof 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¥12,433,982,400 (¥2,637 per investmentunit). Distribution in excess of net
income comprises a distribution of¥1,824,782,400 (¥387 per investmentunit) as allowance for temporary
difference
adjustment
and¥1,244,812,800 (¥264 per investmentunit) in other distribution in excess of net

19

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¥15,296,108,800 in distributions (¥3,244
per investment unit). This figure wasarrived at by adding to ¥12,377,502,401
in net income after taxes ¥2,622,242,820
in amortization of goodwill and¥300,369,335 in loss on sale of realestate, and excluding from the amount of¥15,300,114,556 the portion for which
the per-unit distribution comprising thetypes of dividends referred to below
would be less than ¥1.
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¥12,377,400,000 (¥2,625 per investmentunit). Distribution in excess of net
income comprises a distribution of¥2,093,548,800 (¥444 per investmentunit) as allowance for temporary

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

income.

difference adjustment and ¥825,160,000(¥175 per investment unit) in other
distribution in excess of net income.

20

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

(5) Statement of Cash Flows
Previous period
from Mar. 1, 2021
to Aug. 31, 2021
Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of goodwill
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 long-term prepaid expenses
Decrease (increase) in long-term deposits
Increase (decrease) in trade accounts payable
Increase (decrease) in other accounts payable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in rent received in advance
Decrease in property and equipment in trust due to sales
Other
SubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments for purchase of property and equipment
Payments for purchase of property and equipment in trust
Payments for purchase of intangible assets in trust
Reimbursement of security deposits to tenants
Proceeds from security deposits from tenants
Reimbursement of security deposits to tenants in trust
Proceeds from security deposits from tenants in trust
Proceeds from security deposits
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term debt
Repayment of long-term debt
Distributions of earnings to unitholders
Distributions in excess of net earnings from 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

12,435,333
5,587,125
2,622,242
7,984
(550)
(328)
1,851,336
15,436
97,507(15,916)(3,130)63,569105,630(108,257)
404,292
13,987－
48,82823,125,092
328(1,862,616)(1,074)
21,261,729

Thousands of Yen
Current period
from Sep. 1, 2021
to Feb. 28, 2022
12,380,230
5,610,152
2,622,242
7,984(10,080)(292)
1,756,060
5,191
134,952(52,193)(196,890)
33,577(960,230)(15,348)(774,942)(67,037)
3,896,189(21,112)
24,348,452
292(1,836,956)(1,170)22,510,618(3,222,641)(2,700,281)(17,636)(538,354)
715,517(1,056,593)
568,963－(6,251,026)(641,372)(19,527,403)(4,339)(623,369)
491,383(1,043,034)
1,470,852

28,650,000(28,692,800)(13,014,277)

30,025,000(30,067,800)(12,434,078)(1,763,205)(1,825,166)(919,559)(15,739,842)(729,140)
63,840,679
63,111,539(1,245,360)(15,547,404)(12,874,058)
63,111,539
50,237,480

40,011(19,837,271)

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

(6) Notes Concerning the Going Concern Assumption
Not applicable.

(7) Notes Concerning Significant Accounting Policies
1.

Depreciation of
noncurrent assets(1) Property and equipment (including trust assets)
The straight-line method is adopted.
The useful lives of major property and equipment are as follows:
Buildings
3–70 years
Structures
5–45 years
Machinery
6–17 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.

2.

Accounting method fordeferred assets

3.

Allowance for doubtful
accounts(3) Long-term prepaid expenses
The straight-line method is adopted.
Deferred investment corporation bond issuance costs
The straight-line method over the respective terms of the bonds.
(1) To be ready for possible losses arising from defaults on receivables, 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 11th fiscal period under review isrecorded to cover expenditures for restoration etc. following the 2021 Fukushima
Earthquake.

4.

Revenue and expenses
recognition(1) 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 the amountcorresponding 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 realestate and not recorded as expenses. The amount equivalent to fixed asset tax, etc. includedin the cost of acquisition of real estate, etc. was not applicable in the previous fiscal periodand ¥114,569 thousand in the current fiscal period.
(2) Revenue recognition
Main performance obligations concerning revenues from contracts with NMF’s customers
and normal points in time when the obligations are satisfied (normal points in time whenrevenues are recognized) are as follows:① Disposition of real estate
Gains on sale of real estate are recorded at the points in time when customers or the buyers
acquire control over the real estate by NMF satisfying delivery obligations stipulated in thecontracts on real estate disposition.
② Utility expense revenues
Utility expense revenues are recorded according to the supply of electricity, water, etc. tocustomers or the tenants based on the lease contracts and attached agreements.
Among utility expense revenues, when judged that NMF is applicable as an agent, it is NMF’s
policy to recognize net amounts as revenues after deducting the amounts paid to the
suppliers of electricity, gas, etc. from the amounts NMF received as utility charges.

22Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

5.

Hedge accounting(1) Method of hedge accounting
Deferred hedge accounting is adopted. For interest-rate swap transactions that meet therequirements 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.

6.

Other bases for
preparing financial
statements(1) Method of accounting for trust beneficiary interests in real estate, etc.
Concerning trust beneficiary interests in real estate, etc., held by NMF, all assets
and liabilities within 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 trust② Buildings in trust; Structures in trust; Machinery in trust; Tools, furniture and fixturesin trust; Land in trust; Leased assets in trust③ Leasehold rights in trust④ Lease obligations in trust

7.

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

⑤ Security deposits from tenants in trust(2) Method of accounting for non-deductible consumption tax, etc.
Non-deductible consumption tax, etc., on such items, as noncurrent assets is included in
the acquisition costs of individual items.
Cash and cash equivalents in the statement of cash flows consist of cash on hand and cash 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 are readily
convertible to cash and bear only an insignificant risk of price fluctuation.

(8) Notes Concerning Changes in Accounting Policies
1. Adoption of accounting standard concerning revenue recognition
NMF decided that it would adopt the “Accounting Standard for Revenue Recognition” (Corporate AccountingStandard No. 29 issued on March 31, 2020) from the beginning of the accounting period under review, and that it
would recognize revenues with the amounts expected to be received in exchange for promised goods or services atthe point in time when control over the goods or services is transferred to customers. There is no impact on thefinancial statements in the accounting period under review due to this change.
In accordance with the transitional treatment stipulated in item 89-3 of the Accounting Standard for Revenue
Recognition, the note “Concerning Revenue Recognition” pertaining to the previous accounting period is notpresented.
2. Adoption of the accounting standard concerning fair value measurement
NMF decided that it would adopt the “Accounting Standard for Fair Value Measurement” (Corporate AccountingStandard No. 30 issued on July 4, 2019) from the beginning of the accounting period under review, and that it
would adopt the new accounting policies stipulated in the Accounting Standard for Fair Value Measurement in the
future according to the transitional treatment stipulated in item 19 of the Accounting Standard for Fair Value
Measurement and item 44-2 of the “Accounting Standard for Financial Instruments” (Corporate AccountingStandard No. 10 issued on July 4, 2019). There is no impact on the financial statements in the accounting period
under review by this change.

23

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

(Additional Information)(Notes Concerning Increases in and the Reversal of Allowance for Temporary Difference Adjustments)
Current period
from Mar. 1, 2021
to Aug. 31, 2021
1．Reasons, related assets and amounts of allowanceThousands of Yen
Related assets,
etc.
Goodwill
Long-term
deposits
Subtotal
Buildings,
facilities, etc.
Unearnedrevenue
Other
Subtotal
Total

ReasonAmortization of
goodwill
Shortfall of reserve
for repair
Depreciation
deficiency
equivalent
Write-down of loss
on interest rate
swap due to merger－

Allowance fortemporarydifference
adjustment

Current period
from Sep. 1, 2021
to Feb. 28, 2022
1．Reasons, related assets and amounts of allowanceThousands of Yen
Related assets,
etc.

2,622,242

Goodwill

7,161
2,629,404

Long-term
deposits
Other(741,188)

Subtotal(54,234)

Buildings,
facilities, etc.

(9,199)(804,622)
1,824,782

UnearnedrevenueLand
Subtotal
Total

ReasonAmortization of
goodwill
Shortfall of reserve
for repair－

Allowance fortemporarydifference
adjustment
2,622,242
51,45813,6782,687,379

Depreciation
deficiency
equivalent
Write-down of loss
on interest rate
swap due to merger
Cost of sales ofland(306,277)(40,687)(246,865)(593,831)
2,093,548

2．Reasons, related assets and amounts of reversals
Thousands of Yen
Allowance for
Related assets,
temporary
Reasonetc.
difference
adjustment
Land, buildings, Sale and－etc.
depreciation of(*)
properties forwhich merger
expenses wererecordedDeferred gains Changes in fair
(154,021)
or losses onvalue of derivatives
hedges(154,021)
Total

2．Reasons, related assets and amounts of reversals
Thousands of Yen
Allowance for
Related assets,
temporary
Reasonetc.
difference
adjustment
Land, buildings, Sale and
－
(*)
etc.
depreciation ofproperties forwhich merger
expenses wererecordedDeferred gains Changes in fair
(102,762)
or losses onvalue of derivatives
hedges(102,762)
Total(*) The amount of reversal during current period (¥5,440 thousand) is included
in “Depreciation deficiency equivalent” on “1. Reasons, related assets andamounts of allowance”.

(*) The amount of reversal during current period (¥12,575 thousand) is
included in “Depreciation deficiency equivalent” on “1. Reasons, related
assets and amounts of allowance”.

24Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

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, etc., Upon depreciation and sale, thein 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, etc., Upon depreciation and sale, thein 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.

(9) Notes to Financial Statements(Notes to Balance Sheet)*1. Commitment line agreement① NMF has concluded a commitment line agreement with two lending financial institutions for both previous
period and current period as follows.

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

Previous period(Aug. 31, 2021)
10,000,000－
10,000,000

Thousands of Yen
Current period(Feb. 28, 2022)
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(Aug. 31, 2021)
40,000,000－
40,000,000

25

Thousands of Yen
Current period(Feb. 28, 2022)
40,000,000－
40,000,000

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

*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(Aug. 31, 2021)(Feb. 28, 2022)
50,00050,000*3. Asset offered as collateral and liabilities secured with collateralThousands of Yen
Previous period
Current period(Aug. 31, 2021)(Feb. 28, 2022)
Assets offered as collateral are as follows.
Buildings in trust
3,239,960
Land in trust
6,096,368
Structures in trust
4,794
Tools, furniture andfixtures in trust
3,710
Total
9,344,833

Assets offered as collateral are as follows.
Buildings in trust
3,212,180
Land in trust
6,096,368
Structures in trust
4,696
Tools, furniture andfixtures in trust
3,324
Total
9,316,569

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

26

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

*4. Allowance for temporary difference adjustments
Previous period (from March 1, 2021 to August 31, 2021)
1. Reasons, related assets and amounts
Thousands of Yen
ReasonInitialamountBalance atthe end of
previous
periodAllowance
set aside
duringperiodGoodwill

Amortization of
goodwill

22,600,340

13,192,958

1,769,017

Land, buildings,
etc.

Merger expenses

4,029,135

1,317,179(5,533)

Deferred gains
or losses onhedgesLoss on interestrate swaps
recognized at
the end of the
fiscal period

Related assets,etc.

Balance atthe end ofcurrent
periodReason forreversal－

14,961,976－－

1,311,646－

Reversalduringperiod2,867,594

484,242－(132,888)

351,354

Changes infair value ofderivativetransactions

Increase –subtotal－

14,994,380

1,763,484(132,888)

16,624,976

－

Total

－

14,994,380

1,763,484(132,888)

16,624,976－

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 13th Fiscal Period Ended February 28, 2022

Current period (from September 1, 2021 to February 28, 2022)
1. Reasons, related assets and amounts
Thousands of Yen
ReasonInitialamountBalance atthe end of
previous
periodAllowance
set aside
duringperiodGoodwill

Amortization of
goodwill

25,222,583

14,961,976

1,830,223

Land, buildings,
etc.

Merger expenses

4,029,135

1,311,646(5,440)

Deferred gains
or losses onhedgesLoss on interestrate swaps
recognized at
the end of the
fiscal period

Related assets,etc.

Balance atthe end ofcurrent
periodReason forreversal－

16,792,199－－

1,306,205－

Reversalduringperiod2,867,594

351,354－(154,021)

197,332

Changes infair value ofderivativetransactions

Increase –subtotal－

16,624,976

1,824,782(154,021)

18,295,737

－

Total

－

16,624,976

1,824,782(154,021)

18,295,737－

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.

28

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

(Notes to Statement of Income and Retained Earnings)*1. Breakdown of real estate rental revenues and expenses

Thousands of Yen
Current period
from Sep. 1, 2021
to Feb. 28, 2022

Previous period
from Mar. 1, 2021
to Aug. 31, 2021
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

32,344,406
2,334,97834,679,385

32,379,033
2,275,828

622,960

629,997

1,806,838
410,0822,839,881

1,925,291
147,934

37,519,267

1,832,875
975,826
3,263,841
1,431,766
54,1101,531,578
201,748
5,586,593
1,219,046

C. Real estate rental profits [A－B]

16,097,387
16,097,387
21,421,880

1,829,209
951,283
3,246,576
1,584,054
59,873
1,273,461
177,522
5,609,620
1,240,965

Previous period (from March 1, 2021 to August 31, 2021)
Not applicable.

NMF Utsunomiya Building
Proceeds from sales of real estate
Cost of sales of real estate
Other related sales expenses
Gain on sales of real estate

Thousands of Yen

2,720,000
2,445,354
111,792
162,853*3. Breakdown of loss on sales of real estatePrevious period (from March 1, 2021 to August 31, 2021)
Not applicable.
Current period (from September 1, 2021 to February 28, 2022)
Thousands of Yen

Sundai Azamino
Proceeds from sales of real estate
Cost of sales of real estate
Other related sales expenses
Loss on sales of real estate

1,200,000
1,450,835
49,534300,36929

2,703,224
37,358,086*2. Breakdown of gain on sales of real estate

Current period (from September 1, 2021 to February 28, 2022)

34,654,862

15,972,567
15,972,567
21,385,518

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

(Notes on Investment and Rental Properties)
NMF owns leasable offices, leasable retail facilities, leasable logistics facilities, leasable residential facilities and leasable
hotels, etc. (including land) in Greater Tokyo area and other areas for the purpose of earning revenue from leasing.
The following are the carrying amount, amount of increase (decrease) during the fiscal period and fair value of theseinvestment and rental properties at the end of the fiscal period.

Previous period
from Mar. 1, 2021
to Aug. 31, 2021
Carrying amount
Balance at beginning of period
Amount of increase (decrease) during period
Balance at end of period
Fair value at end of period

1,048,917,843(215,834)
1,048,702,009
1,218,347,000

Thousands of Yen
Current period
from Sep. 1, 2021
to Feb. 28, 2022
1,048,702,009
10,347,682
1,059,049,692
1,252,960,000(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 Universal CityWalk Osaka (Land) (¥2,178,530 thousand). The decrease during the previous period is mainly
attributable to depreciation expenses (¥5,578,207 thousand). The increase during the current period is mainly attributable tothe acquisition of Landport Ome III (¥17,238,207 thousand). The decrease during the current period is mainly attributable
to the sale of NMF Utsunomiya Building (¥2,445,354thousand) and Sundai Azamino (¥1,450,835 thousand) as well as
depreciation (¥5,602,175 thousand).
(Note 3) Fair value at the end of the period is the appraisal value or investigation value determined by investigation, found by anoutside real estate appraiser. However, in the current fiscai period, transfer price is used as the fair value for Ichibancho stear ,and the scheduled transfer price is used as the fair value for NRE Higashi-nihonbashi Building.

The income (loss) in the previous period (from March 1, 2021 to August 31, 2021) and current period (September
1, 2021 to February 28, 2022) for investment and rental properties is as presented in “Notes to Statement of Income andRetained Earnings” earlier in this report.

(Notes Concerning Revenue Recognition)
1. Information classifying revenues from contracts with customers
Current period (from September 1, 2021 to February 28, 2022)
Revenues from contracts withcustomers(Note 1)
Proceeds from sales of realestateUtility expense revenues
Other
Total

Thousands of Yen
Sales to external customers

3,920,000（Note 2）162,853

1,331,843－
5,251,843

1,331,843
36,026,243
37,520,940(Note 1) Leasing business revenues, which are subject to the Corporate Accounting Standard No. 13, “Accounting Standard for Lease Transactions,” and realestate transfers, which are subject to the “Practical Guidelines Concerning Accounting for the Transferors in Securitization of Real Estate Using SPCs”
of the JICPA Accounting System Committee Report No. 15, are not applicable to the Accounting Standard for Revenue Recognition, and are thus notincluded in the above amount. Note that the main revenues from contracts with customers are gains on sale of real estate and utilities expense revenues.
(Note 2) Gains on sale of real estate are recorded as profits/losses on sale of real estate (the amount after deducting real estate disposition costs and otherdisposition costs from gains on sale of real estate) in the statement of income and retained earnings. Since NMF records gains on sale of real estate as
operating revenues and losses on sale of real estate as operating expenses, only the amounts of gains on sale of real estate are described in the abovetable.

2. Basic information for understanding revenues from contracts with customers
Current period (from September 1, 2021 to February 28, 2022)
Refer to the description in the notes concerning matters pertaining to significant accounting policies.
3. Information on the satisfaction of performance obligations based on contracts with customers, relationships withcash flows arising from the contracts, and the amounts of revenues which arise from outstanding contracts withcustomers as of the end of the accounting period under review and will be recognized in the next accounting period
onwards, as well as the timing to recognize the revenues

30

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

(1) Balances of contract assets and liabilities

Thousands of Yen
Current period
from Sep. 1, 2021
to Feb. 28, 2022

Receivables from contracts with customers(balance as of the beginning of the fiscal period)
Receivables from contracts with customers(balance as of the end of the fiscal period)
Contract assets (balance as of the beginning of
the fiscal period)
Contract assets (balance as of the end of the
fiscal period)
Contract liabilities (balance as of the beginningof the fiscal period)
Contract liabilities (balance as of the end of the
fiscal period)

363,492372,248－－－－(2) Transaction prices allocated to remaining performance obligations
Not applicable.
Concerning utility expense revenues, NMF recognizes them with the amounts for which it has the right to claim
according to item 19 of the Implementation Guidance on the Accounting Standard for Revenue Recognition. Thisis because NMF has the right to receive the amounts of consideration, which directly correspond to the value forcustomers or tenants, from customers for the portions where the obligations are satisfied before the end of a fiscal
period. Accordingly, adopting the stipulation of item 80-22 (2) of the Accounting Standard for Revenue
Recognition, utility expense revenues are not included in the note on transaction prices allocated to remaining
performance obligations.

31Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

(Notes on Per Unit Information)
Previous period
from Mar. 1, 2021
to Aug. 31, 2021

Yen
Current period
from Sep. 1, 2021
to Feb. 28, 2022

Net assets per unit

131,468

130,827

Net income per unit

2,637

2,625

(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 Mar. 1, 2021
to Aug. 31, 2021

Current period
from Sep. 1, 2021
to Feb. 28, 2022

12,434,161

12,377,502－－

Net income attributable to ordinary investment units (Thousands ofYen)

12,434,161

12,377,502

Average number of investment units during period (Units)

4,715,200

4,715,200

Net income (Thousands of Yen)
Amount not attributable to ordinary unitholders (Thousands of
Yen)(Notes on Significant Subsequent Events)
Transfer of the asset(a)NMF sold the following asset after the conclusion of the 13th fiscal period (February 28, 2022).
Ichibancho stear Type of asset
Trust beneficiary interest in mainly real estate Use
Retail Contract date
January 27, 2022
 Transfer date
March 18, 2022
 Transfer price¥5,382 million
 Buyer
Domestic consolidated company
 Impact on 14th fiscal period earnings¥757 million(Scheduled)(b)NMF decided to sell the following asset after the conclusion of the 13th fiscal period (February 28,2022).
NRE Higashi-nihonbashi Building
 Type of asset
Real estate Use
Office Contract date
March 8, 2022
 Transfer date(Scheduled)
September 15, 2022 (Quasi co-ownership of 50%)
March 15, 2023 (Quasi co-ownership of 50%)
 Transfer price(Scheduled)¥2,260 million (Quasi co-ownership of 50%)
¥2,260 million (Quasi co-ownership of 50%)
 Buyer
Domestic general business company
 Impact on 15th fiscal period earnings¥370 million(Scheduled) Impact on 16th fiscal period earnings¥386 million(Scheduled)
The impact of (a) and (b), above, on earnings for the 14th fiscal period (March 1, 2022 to August 31, 2022), 15th fiscal
period (September 1, 2022 to February 28, 2023) and 16th fiscal period (March 1, 2023 to August 31, 2023) will be recorded
as gain on sales of real estate under operating revenues.
32

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

[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.

33

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

(10) 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 13th fiscal
period (February 28, 2022).

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)－

4,715,200

122

244,307(Note 4)－

4,715,200

299

244,606(Note 4)－

4,715,200

132

244,739(Note 4)－

4,715,200

154

244,893(Note 4)

April 14, 2020

October 14, 2020

April 14, 2021

October 13, 2021
(Note 1)

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

Figures have been truncated at the nearest million yen.

34

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

(Note 2)

NMF was established through the consolidation type merger of the former Nomura Real Estate Master Fund (hereinafter “former
NMF”), Nomura Real Estate Office Fund (hereinafter “NOF”) and Nomura Real Estate Residential Fund (hereinafter” NRF”) on
October 1, 2015 (hereinafter “the Merger of the Three REITs”). Upon its establishment, NMF allotted 1 NMF unit per former 1.00
NMF unit, 3.60 NMF units 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 to this absorption
type of merger.
(Note 4) NMF’s Board of Directors resolved to reverse the allowance for temporary difference adjustments and incorporate the amounts of said
reversals into unitholders’ capital at the Board of Directors meeting on each said date.
(Note 5) NMF issued new investment units through public offering at an issue price of ¥137,474 per unit (issue value: ¥133,125 per unit ) forthe purpose of procuring funds to acquire new properties.
(Note 6) NMF issued new investment units through third-party allotment at an issue value of ¥133,125 per unit together with the issuance of
new investment units through public offering.
(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.

35

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

3. Reference Information(1) Investment Status

12th fiscal period
13th fiscal period
As of August 31, 2021
As of February 28, 2022
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
145,39612.2
145,018
12.2
OfficeOther areas
21,3391.8
21,282
1.8
properties
Subtotal
166,735
14.0
166,301
14.0
Greater Tokyo area
28,831
2.4
28,712
2.4
RetailOther areas
18,126
1.5
18,1191.5
properties
Subtotal
46,957
3.9
46,832
3.9
Greater Tokyo area
63,830
5.4
63,533
5.4
Logistics
properties
Subtotal
63,830
5.4
63,533
5.4
Real estate
Greater Tokyo area
135,572
11.4
134,808
11.4
Residential
Other areas
30,194
2.5
29,883
2.5
properties
Subtotal
165,76713.9
164,692
13.9
Other areas
3,681
0.3
3,665
0.3
Hotel
properties
Subtotal
3,681
0.3
3,665
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
452,10937.9
450,161
37.9
Greater Tokyo area
259,266
21.7
259,330
21.8
OfficeOther areas
52,5444.450,453
4.2
properties
Subtotal
311,81126.1
309,784
26.1
Greater Tokyo area
81,767
6.9
80,095
6.7
RetailOther areas
49,766
4.2
49,537
4.2
properties
Subtotal
131,53411.0
129,632
10.9
Greater Tokyo area
121,460
10.2
137,866
11.6
Real estate
Logistics
in trust
Other areas
3,295
0.3
3,280
0.3
properties
Subtotal
124,755
10.5
141,147
11.9
25,7972.2
25,641
2.2
Residential Greater Tokyo area
properties
Subtotal
25,7972.2
25,641
2.2
Other areas
2,693
0.2
2,683
0.2
Hotel
properties
Subtotal
2,693
0.2
2,683
0.2
Subtotal
596,592
50.0
608,888
51.3
Subtotal
1,048,702
87.9
1,059,049
89.2
Deposits and other assets
143,805
12.1
128,370
10.8
1,192,507
100.0
1,187,420
100.0
Total amount of assets
12th fiscal period
As of August 31, 2021
As a percentage
Amountof total amount(Millions of Yen)of assets (%)(Note 4)(Note 3)
Total amount of liabilities
Total amount of net assets

13th fiscal period
As of February 28, 2022
As a percentage
Amountof total amount(Millions of Yen)of assets (%)(Note 4)(Note 3)572,606

48.0

570,54248.0

619,901

52.0

616,87852.0(Note 1) “Greater Tokyo area” refers to Tokyo, Kanagawa Prefecture, Chiba Prefecture and Saitama Prefecture. “Other areas” refers to cabinet-orderdesignated cities, prefectural capitals, and cities with a population of 100,000 persons or more as well as surrounding areas of these cities thatare 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.

36

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

(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 February 28, 2022, (the end of
the 13th 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 13th fiscal period”). Unless otherwise stated,the figures in the tables below are the figures as of February 28, 2022.

37

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

A. Overview of Portfolio and Leasing Status and Changes in Occupancy Rate(a) Overview of Portfolio and Leasing Status
The following is an overview of the portfolio and leasing status for the assets held at the end of the
13th fiscal period.
Number of properties

298

Gross leasable area (m2) (Note 1)

2,166,670.21

Gross leased area (m2) (Note 2)

2,138,525.13

Total number of tenants (Note 3)

1,329

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

5,916,284(Note 1)The sum total of the “leasable area” of each of the assets held at the end of the 13th fiscal period. “Leasable area” is the sum
total area of office buildings, retail facilities, logistics facilities, residential facilities, or hotels etc. leasable in each asset (including thearea of common-use space, etc., if leased). Leasable area is calculated based not on that presented in the registry, but the area statedin the lease contract and the area calculated based on building completion drawings, etc. Accordingly, the leasable area may not be
the same as the floor area based on that presented in the registry and may exceed the floor area. In the case 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 by multiplying 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 is calculated as the building’s overall
rent multiplied by the ownership ratio of the common areas, the leasable area is calculated as the building’s overall leasable areamultiplied by the ownership ratio of the common areas. For PMO Hatchobori Shinkawa, upon the master lease agreement, therent paid to each compartmentalized owner is the sum of (i) the rent to be earned from the leasable exclusive area of the entire
building (excluding the exclusive area subject to the selfuse by other compartmentalized owners; the same shall apply hereinafter
for PMO Hatchobori Shinkawa) 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 thecommon area, etc.. Therefore, the leasable area of PMO Hatchobori Shinkawa is the sum of (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 ofownership interest of the common area.
(Note 2)The sum total of “leased area” of each of the assets held at the end of the 13th fiscal period. “Leased area” is the area that is
actually leased to an end-tenant (The area stated in the lease contract; provided, however, that such be limited to the area of officeproperties, retail properties, logistics properties, residential properties, or hotel properties etc. (if all rental units are collectively
leased, then the area of the entire rental units) and not include the leased area of parking space, etc. However, if the master lessee
has a rent-guaranteed master lease for some or all rental units, the space is included in leased area regardless of whether or notthere 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 isshown. For the Shinjuku Nomura Building, NEC Head Office Building and Musashiurawa Shopping Square, the leased area is thearea calculated by multiplying the building’s overall leased area by the quasi co-ownership ratio of the beneficial interest in realestate trust owned by NMF as of the end of the fiscal period. For the NRE Tennozu Building, since the rent under the master
lease agreement is calculated as the building’s overall rent multiplied by the ownership ratio of the common areas, the leased area
is calculated as 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 eachcompartmentalized owner, and (ii) the rent to be earned from the common area, etc. of the building multiplied by the share interestin ownership of the common area, etc.. Therefore, the leased area of PMO Hatchobori Shinkawa is the sum of (i) the leased areaof 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 share of ownership interest of the common
area.
(Note 3) The sum total of “total number of tenants” of each of the assets held at the end of the 13th 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 the leaseagreement (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 witha so-called pass-through master lease agreement, where the rent received from the lessee in the master lease agreement is the sameamount 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 areleased 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 therental units, regardless of pass-through master lease agreement, the lessee of the master lease agreement is counted as one tenant,38

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

and the total number of tenants for the building as whole is shown.
(Note 4) The total amount of “total contracted rent” for February 2022 of each of the assets held at the end of the 13th fiscal period(amounts less than one thousand are truncated). “Total contracted rent” for February 2022 refers to the sum total of monthly
rent and common area charges in lease agreements actually concluded with end-tenants that are valid as of the last day of February
2022 (This does not include parking space or other fees stated in parking space lease agreements or other such agreements signed
in addition to the tenant lease agreement. If common-use space, etc. is leased based on the lease agreement, the rent for such 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 have been
exempt from rent payment for a certain period of time in their agreements, such exemption period is not considered in the table
above, and the rent is calculated based on 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 with variable rent
including cases in which a part of rent is variable rent. For the Shinjuku Nomura Building, NEC Head Office Building andMusashiurawa Shopping Square, the total contracted rent is calculated by multiplying the building’s overall rent revenues by thequasi co-ownership ratio of the beneficial interest in real estate trust owned by NMF as of the end of the fiscal period. For the
NRE Tennozu Building, the the total contracted rent is calculated as the building’s overall rent revenues multiplied by the ratio of thecommon areas that NMF owns through the trustee. For PMO Hatchobori Shinkawa, the total contract rent is calculated by summing(i) the rent revenues earned from the leasable exclusive area of the entire building multiplied by the ratio of the area of the
exclusive area owned by NMF, and (ii) the rent revenues earned from the common area, etc. of the building multiplied by NMF’s
share of ownership 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) (%)

February 29, 2020(end of 9th fiscal
period)August 31, 2020(end of 10th fiscal
period)February 28, 2021
(end of 11th fiscal
period)August 31, 2021
(end of 12th fiscal
period)February 28, 2022
(end of 13th fiscal
period)

98.8

99.1

98.8

98.1

98.7

39

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

B. Price and Investment Share
The following is an overview of the assets held at the end of the 13th fiscal period (acquisition price,
carrying amount, opinion of value at end of period, investment share and appraiser).

Use

Area

Greater
Office Tokyo
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 (Note 5)

43,90046,95450,400

4.0

NRE Tennozu Building

20,50020,647

21,600

1.7

Kojimachi Millennium Garden

26,70026,446

29,200

2.3

NMF
Shinjuku
Building

10,000

10,131

13,100

1.0

NMF Shibuya Koen-dori Building

10,40010,522

10,8000.9

Secom Medical Building

11,10010,611

12,600

1.0

NMF Shiba Building

7,040

7,115

7,210

0.6

Nishi-Shinjuku Showa Building

8,140

8,191

8,040

0.6

NRE Shibuya Dogenzaka Building

5,310

5,371

5,790

0.5

Iwamoto-cho Toyo Building

4,050

4,089

4,880

0.4

NMF Surugadai Building

4,690

4,705

5,200

0.4

PMO Nihonbashi Honcho

4,320

4,054

4,870

0.4

PMO Nihonbashi Kayabacho

5,010

4,740

6,610

0.5

NMF Gotanda Ekimae Building

4,430

4,595

5,340

0.4

NRE Higashi-nihonbashi Building

3,570

3,760

4,350

0.3

PMO Akihabara

4,240

4,017

5,570

0.4

Hatchobori NF Building

2,480

2,428

2,540

0.2

NMF Kanda Iwamoto-cho Building

4,160

4,185

4,580

0.4

NMF Takanawa Building

2,830

2,876

3,460

0.3

PMO Hatchobori

2,880

2,683

3,530

0.3

PMO Nihonbashi Odenmacho

2,210

2,090

3,030

0.2

PMO Higashi-nihonbashi

1,690

1,550

2,020

0.2

NRE Ueno Building

6,470

6,580

7,250

0.6

NF Hongo Building.

4,890

4,912

5,140

0.4

Crystal Park Building

3,390

3,303

3,370

0.3

NMF Kichijoji Honcho Building

1,780

1,835

2,240

0.2

Faret Tachikawa Center Square

3,850

3,835

4,440

0.4

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

NMF Kawasaki
Building

Higashiguchi

7,830

8,012

9,570

0.8

Japan Valuers Co., Ltd.

NMF
Yokohama
Building

Nishiguchi

5,460

5,583

8,430

0.7

NMF Shin-Yokohama Building

2,620

2,756

2,890

0.2

PMO Tamachi

6,210

6,073

8,820

0.7

PMO Ginza Hatchome

3,970

3,900

5,360

0.4

PMO Shibakoen

3,900

3,816

5,430

0.4

NEC Head Office Building (Note6)

44,10044,45247,700

3.8

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

Harumi Island Triton Square OfficeTower Y18,20017,902

17,300

1.4

Daiwa Real EstateAppraisal Co., Ltd.

Minamiguchi

40

AppraiserNomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

Use

Area

GreaterTokyo
area

Office

Other
areas

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)

NMF Aoyama 1-chome Building

10,400

10,546

13,900

1.1

NMF Takebashi Building

8,330

8,505

8,950

0.7

Harumi Island Triton Square OfficeTower Z

8,180

8,006

8,470

0.7

NMF Kayabacho Building

6,070

6,054

8,110

0.6

NMF Shinjuku EAST Building

5,710

5,800

6,440

0.5

NMF Shiba-Koen Building

3,620

3,767

4,600

0.4

NMF Ginza 4-chome Building

1,850

1,961

2,230

0.2

Faret East Building

1,850

1,829

2,100

0.2

PMO Shinnihonbashi

4,440

4,360

5,410

0.4

PMO Hirakawacho

3,410

3,363

4,300

0.3

PMO Nihonbashi Mitsukoshi-mae

4,310

4,301

5,760

0.5

PMO Shibadaimon

2,130

2,132

2,610

0.2

PMO Tamachi Ⅱ

10,90010,86012,800

1.0

PMO Hatchobori Shinkawa

3,805

3,786

4,290

0.3

PMO Hatchobori Ⅲ

2,880

2,879

3,290

0.3

PMO Ochanomizu

3,890

3,877

4,590

0.4

PMO Akihabara Kita

8,450

8,428

9,540

0.8

PMO Higashi-Shinbashi

4,730

4,754

5,490

0.4

PMO Hamamatsucho

4,380

4,395

5,130

0.4

Sapporo North Plaza

6,250

6,582

8,980

0.7

NRE Sapporo Building

4,140

3,695

5,140

0.4

NMF Sendai Aoba-dori Building

2,030

2,188

2,610

0.2

NMF Nagoya Fushimi Building

2,240

1,975

2,630

0.2

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

NMF Nagoya Yanagibashi Building

2,280

2,530

2,290

0.2

Japan Valuers Co., Ltd.

Omron Kyoto Center Building

18,30018,206

19,900

1.6

Japan Real
Institute

SORA Shin-Osaka 21

12,10011,971

12,600

1.0

Japan Valuers Co., Ltd.

NRE Osaka Building

6,100

7,740

7,540

0.6

NRE Nishi-Umeda Building

3,450

3,640

3,840

0.3

NRE Yotsubashi Building

4,000

4,452

4,960

0.4

NRE Hiroshima Building

2,280

2,460

2,880

0.2

NMF Hakata Ekimae Building

4,210

4,254

6,030

0.5

NMF Tenjin-Minami Building

2,230

2,036

2,960

0.2

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
Institute471,265

476,085

543,030

43.3

Yokosuka More’s City

13,64013,72915,700

1.3

The Tanizawa Sogo
Appraisal Co., Ltd.

Recipe SHIMOKITA

10,407

10,222

11,000

0.9

Japan Valuers Co., Ltd.

Kawasaki More’s

6,080

6,579

8,520

0.7

EQUINIA Shinjuku

4,260

4,271

5,150

0.4

EQUINA Ikebukuro

3,990

4,010

4,540

0.4

covirna machida

3,440

3,793

4,090

0.3

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

Office subtotal

RetailGreater
Tokyo
area

41

Appraiser

EstateNomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

Use

Area

GreaterTokyo
area

RetailAcquisition 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

2,639

3,960

0.3

Konami Sports Club Fuchu

2,730

2,527

3,390

0.3

FESTA SQUARE

2,600

2,192

3,580

0.3

GEMS Shibuya

2,490

2,348

2,750

0.2

EQUINIA Aobadai

1,560

1,566

2,630

0.2

Megalos Kanagawa

1,000

945

1,550

0.1

Mitsubishi Motors Meguro（Land）

2,740

2,764

3,460

0.3

Mitsubishi Motors Chofu（Land）

1,760

1,776

1,730

0.1

Mitsubishi Motors Nerima（Land）

1,240

1,251

1,470

0.1

Mitsubishi（Land）

950

959

1,300

0.1

Mitsubishi Motors Takaido（Land）

850

859

856

0.1

Mitsubishi Motors（Land）(Note 7)

762

770

880

0.1

Mitsubishi Motors Higashikurume（Land）

800

808

909

0.1

Mitsubishi Motors Setagaya（Land）

770

779

1,160

0.1

Mitsubishi（Land）

600

606

733

0.1

Japan Real
InstituteJapan Real
InstituteJapan Real
Institute

Mitsubishi Motors Higashiyamato（Land）

450

455

537

0.0

The Tanizawa Sogo
Appraisal Co., Ltd.

Mitsubishi Motors Motosumiyoshi（Land）

370

375

416

0.0

Japan Real
Institute

WelciaKawagoe Shinmeicho（Land）

350

355

438

0.0

The Tanizawa Sogo
Appraisal Co., Ltd.

Mitsubishi（Land）

200

204

179

0.0

160

163

187

0.0

NRE Kichijoji Building

10,41010,128

11,400

0.9

GEMS Ichigaya

2,080

2,025

2,110

0.2

Sagamihara Shopping Center

6,840

6,788

7,550

0.6

Musashiurawa(Note 6)

2,720

2,529

2,830

0.2

Summit Store Naritahigashi (Land)

700

747

801

0.1

GEMS Daimon

2,060

1,999

2,070

0.2

GEMS Kanda

1,500

1,460

1,440

0.1

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

Summit Store Mukodaicho

5,100

5,048

5,330

0.4

Japan Valuers Co., Ltd.

GEMS Shinbashi

2,810

2,807

2,690

0.2

GEMS Kayabacho

2,594

2,561

2,660

0.2

Summit Store Honamanuma

2,160

2,157

2,890

0.2

GEMS Shin-Yokohama

1,820

1,778

1,820

0.1

GEMS Sangenjaya

1,815

1,816

1,780

0.1

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.

Universal CityWalk Osaka

17,63917,13918,600

1.5

Japan Valuers Co., Ltd.

Izumiya SC Senrioka (Note 8)

8,930

8,495

11,500

0.9

Izumiya SC Yao (Note 8)

4,406

3,990

5,600

0.4

Izumiya SC Obayashi (Note 8)

3,020

3,145

4,120

0.3

Ichibancho stear

4,700

4,409

5,270

0.4

The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.

Property name

MotorsKawasakiKatsushika

MotorsSekimachi

Motors

Edogawa

Mitsubishi Motors Sayama（Land）

Other
areas

Shopping Square

42

Appraiser
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
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
EstateEstateEstateEstateNomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

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)EQUINIA Aobadori

1,640

1,296

1,820

0.1

MEL Building

1,060

1,048

1,200

0.1

nORBESA

8,500

8,617

8,570

0.7

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

Nakaza Cui-daore Building

11,60012,1549,760

0.8Japan Valuers Co., Ltd.

NMF Kobe Myodani Building

3,560

3,577

3,680

0.3

Japan Valuers Co., Ltd.

GEMS Namba

3,800

3,781

4,300

0.3

JLL Morii Valuation &Advisory K.K.

178,744

176,465

200,906

16.0

Landport Urayasu

17,40015,85523,4001.9

Landport Itabashi

15,71014,40021,2001.7

Landport Kawagoe

13,700

11,631

18,9001.5

Landport Atsugi

11,4109,891

12,900

1.0

Sagamihara Tana Logistics Center

10,6009,563

13,700

1.1

Sagamihara
Center

8,700

8,025

12,200

1.0

Landport Hachioji

8,250

7,128

10,9000.9

Landport Kasukabe

7,340

6,107

9,190

0.7

Atsugi Minami Logistics Center B
Tower

4,590

4,055

6,320

0.5

Hanyu Logistics Center

3,810

3,227

4,870

0.4

Kawaguchi Logistics Center B
Tower

3,750

3,530

4,750

0.4

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.

Kawaguchi Logistics Center A
Tower

2,830

2,737

3,800

0.3

Daiwa Real EstateAppraisal Co., Ltd.

Atsugi Minami Logistics Center A
Tower

2,690

2,504

3,700

0.3

Kawaguchi Ryoke Logistics Center

10,790

10,253

14,200

1.1

The Tanizawa Sogo
Appraisal Co., Ltd.
JLL Morii Valuation &Advisory K.K.

Landport Kashiwa Shonan II

10,80010,52812,000

1.0

Japan Valuers Co., Ltd.

Landport Kashiwa Shonan I

9,900

9,618

11,300

0.9

Japan Valuers Co., Ltd.

Landport Hachioji II

9,230

9,080

9,960

0.8

Japan Valuers Co., Ltd.

Landport Iwatsuki

6,090

6,018

6,740

0.5

Japan Valuers Co., Ltd.

Landport Ome I

13,64013,58214,800

1.2

Japan Valuers Co., Ltd.

Landport Higashi-Narashino

11,872

11,74016,400

1.3

Japan Valuers Co., Ltd.

Landport Ome II

14,62014,704

16,200

1.3

Japan Valuers Co., Ltd.

Landport Ome III

17,00017,21418,700

1.5

Japan Valuers Co., Ltd.

Hirakata Kuzuha Logistics Center

3,460

3,280

4,330

0.3

Daiwa Real EstateAppraisal Co., Ltd.

218,182

204,680

270,460

21.6

3,400

3,180

3,750

0.3

PROUD FLAT Yoyogi Uehara

989

950

1,040

0.1

PROUD FLAT Hatsudai

713

675

748

0.1

750

703

736

0.1

PROUD FLAT Gakugei Daigaku

746

690

884

0.1

PROUD
Gyoninzaka

939

875

1,090

0.1

2,280

2,068

2,730

0.2

Property nameRetail subtotal

GreaterTokyo
Logistics area

Other
areas

Onodai

Logistics

Logistics subtotal
PROUD
Takanawa

Greater
Resident
Tokyo
ial
area

PROUD
Sakuragaoka

FLAT

FLAT

FLAT

Shirokane

ShibuyaMeguroPROUD FLAT Sumida Riverside

43

Appraiser

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 13th Fiscal Period Ended February 28, 2022

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)

PROUD FLAT Kagurazaka

1,590

1,456

1,740

0.1

PROUD FLAT Waseda

1,110

1,012

1,220

0.1

932

856

1,050

0.1

PROUD FLAT Sangen Jaya

1,190

1,083

1,280

0.1

PROUD FLAT Kamata

1,160

1,028

1,320

0.1

PROUD FLAT Kamata II

3,320

2,989

3,450

0.3

PROUD FLAT Shinotsuka

623

557

566

0.0

PROUD
Shirakawa

928

835

1,020

0.1

PROUD FLAT Monzen Nakacho
II

652

594

641

0.1

PROUD FLAT Monzen Nakacho I

1,030

923

975

0.1

PROUD FLAT Fujimidai

1,470

1,340

1,980

0.2

PROUD FLAT Asakusa Komagata

1,920

1,705

2,420

0.2

PROUD FLAT Yokohama

2,090

1,882

2,460

0.2

PROUD FLAT Kamioooka

2,710

2,442

2,940

0.2

PROUD FLAT Tsurumi II

1,650

1,477

2,070

0.2

PRIME URBAN Azabu Juban

1,100

1,095

1,060

0.1

PRIME URBAN Akasaka

938

921

1,050

0.1

PRIME URBAN Tamachi

972

919

1,060

0.1

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

PRIME URBAN Shibaura LOFT

1,830

1,693

2,060

0.2

Japan Valuers Co., Ltd.

PRIME URBAN Yoyogi

359

340

345

0.0

PRIME URBAN Ebisu II

1,140

1,105

1,610

0.1

PRIME URBAN Bancho

1,090

1,047

1,150

0.1

PRIME URBAN Chiyoda Fujimi

679

650

726

0.1

PRIME URBAN Iidabashi

2,040

1,907

1,950

0.2

PRIME URBAN Ebisu

1,260

1,240

1,370

0.1

PRIME URBAN Naka Meguro

1,410

1,360

1,490

0.1

PRIME URBAN Gakugei Daigaku

775

728

890

0.1

PRIME URBAN Senzoku

474

450

506

0.0

PRIME URBAN Meguro Riverside

414

380

433

0.0

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

PRIME URBAN Meguro Ohashi
Hills

2,970

2,782

3,310

0.3

Japan Valuers Co., Ltd.

PRIME URBAN Meguro Aobadai

1,310

1,252

1,850

0.1

PRIME URBAN Gakugei Daigaku
II

1,080

1,029

1,430

0.1

PRIME URBAN Naka Meguro II

2,850

2,804

3,620

0.3

PRIME URBAN Kachidoki

2,570

2,586

2,470

0.2

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

PRIME URBAN Shinkawa

2,100

2,108

2,570

0.2

Japan Valuers Co., Ltd.

PRIME URBAN
Yokoyamacho

Nihonbashi

4,220

3,901

4,900

0.4

Japan Valuers Co., Ltd.

PRIME URBAN
HamachoNihonbashi

1,550

1,462

2,040

0.2

Japan Real
Institute

557

515

636

0.1

Japan Valuers Co., Ltd.

Property name

PROUD
Kawadacho

Resident
ial

Greater
Tokyo
area

FLAT
(Note 7)

Shinjuku

FLAT

Kiyosumi

PRIME URBAN Hongo Ikizaka

44

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

EstateNomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

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)

Appraiser

PRIME URBAN Hakusan

866

771

948

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Yotsuya Gaien
Higashi

1,490

1,437

1,520

0.1

PRIME URBAN Nishi Shinjuku I

1,090

1,022

1,310

0.1

PRIME URBAN Nishi Shinjuku II

885

817

961

0.1

PRIME
URBAN
Naitomachi

430

422

472

0.0

PRIME URBAN Nishi Waseda

421

381

482

0.0

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

PRIME URBAN Shinjuku Ochiai

594

599

617

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Mejiro

1,430

1,361

1,780

0.1

PRIME URBAN Kagurazaka

2,900

2,686

3,810

0.3

PRIME URBAN Sangen Jaya III

718

707

681

0.1

PRIME
URBAN
Karasuyama

717

724

685

0.1

PRIME URBAN Sangen Jaya

724

676

776

0.1

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

PRIME
URBAN
Karasuyama

667

612

782

0.1

Japan Valuers Co., Ltd.

549

505

608

0.0

Daiwa Real EstateAppraisal Co., Ltd.

338

312

375

0.0

Daiwa Real EstateAppraisal Co., Ltd.

746

689

759

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Yoga

1,390

1,298

1,820

0.1

PRIME URBAN Shinagawa Nishi

494

505

451

0.0

PRIME URBAN Osaki

1,860

1,761

2,030

0.2

PRIME URBAN Oimachi II

1,040

1,110

1,150

0.1

PRIME URBAN Yukigaya

951

934

813

0.1

PRIME URBAN Omori

905

835

913

0.1

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

PRIME
Minami

774

702

677

0.1

Japan Valuers Co., Ltd.

1,720

1,638

1,980

0.2

Japan Real
Institute

498

451

551

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Takaido

1,060

1,038

854

0.1

PRIME URBAN Nishi Ogikubo

414

394

453

0.0

PRIME URBAN Nishi Ogikubo II

1,790

1,722

2,120

0.2

PRIME URBAN Otsuka

730

671

750

0.1

PRIME URBAN Komagome

437

437

429

0.0

PRIME URBAN Ikebukuro

3,800

3,527

4,890

0.4

PRIME URBAN Monzen Nakacho

2,420

2,247

2,680

0.2

PRIME URBAN Kameido

779

695

815

0.1

PRIME URBAN Sumiyoshi

632

571

662

0.1

PRIME URBAN Mukojima

528

514

496

0.0

PRIME URBAN Kinshi Koen

1,290

1,139

1,340

0.1

PRIME URBAN Kinshicho

758

689

783

0.1

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.

Area

Property nameGreaterTokyo
area

ChitoseMinami

PRIME
Galleria

URBAN

Karasuyama

PRIME
Court

URBAN

Karasuyama

PRIME
Funabashi

Resident
ial

Shinjuku

URBAN

ChitoseURBAN

Denenchofu

PRIME
URBAN
Kamiikedai

Nagahara

PRIME
URBAN
Kamitakada

Nakano45

EstateNomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

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 Hirai

722

649

755

0.1

PRIME URBAN Kasai

640

574

670

0.1

PRIME URBAN Kasai II

981

864

977

0.1

PRIME URBAN Kasai East

1,140

1,017

1,330

0.1

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

PRIME
URBAN
Kuyakushomae

1,080

972

1,340

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Asakusa

384

376

322

0.0

PRIME URBAN Machiya South
Court

1,910

1,816

2,280

0.2

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

PRIME URBAN Musashi Koganei

1,910

1,928

1,940

0.2

Japan Valuers Co., Ltd.

PRIME URBAN Musashino Hills

1,280

1,307

1,410

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Koganei Honcho

791

737

900

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Kumegawa

1,520

1,320

1,630

0.1

Japan Real
Institute

PRIME URBAN Musashi Kosugi
comodo

1,940

1,930

2,430

0.2

Japan Valuers Co., Ltd.

PRIME URBAN Kawasaki

962

947

1,080

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Shinyurigaoka

1,020

920

1,310

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Tsurumi Teraya

493

492

486

0.0

PRIME URBAN Urayasu

804

738

960

0.1

PRIME URBAN Gyotoku I

633

592

640

0.1

PRIME URBAN Gyotoku II

730

683

875

0.1

PRIME URBAN Gyotoku Ekimae

488

439

558

0.0

PRIME URBAN Gyotoku Ekimae
II

469

447

610

0.0

PRIME URBAN Gyotoku III

747

717

988

0.1

PRIME URBAN Nishi Funabashi

761

656

914

0.1

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

PRIME URBAN Kawaguchi

1,580

1,462

1,760

0.1

Japan Valuers Co., Ltd.

PROUD FLAT Hatchobori

920

909

1,210

0.1

PROUD FLAT Itabashi Honcho

720

692

942

0.1

Japan Real
InstituteJapan Real
Institute

PRIME URBAN Meguro Mita

1,058

1,110

1,130

0.1

Japan Valuers Co., Ltd.

Fukasawa House Towers H&I

7,140

6,957

8,260

0.7

PRIME URBAN Toyosu

5,290

4,979

5,980

0.5

PRIME URBAN
Kayabacho

2,850

2,747

3,270

0.3

PRIME URBAN Yoga II

1,320

1,250

1,400

0.1

PRIME URBAN Musashi Koganei
II

1,310

1,228

1,490

0.1

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.

PRIME URBAN Gakugei daigaku
parkfront

1,300

1,361

1,450

0.1

PROUD FLAT Omori Ⅲ

1,110

1,107

1,410

0.1

PROUD FLAT Kinshicho

785

777

1,010

0.1

PROUD FLAT Sangenjaya II

2,750

2,763

3,260

0.3

PROUD FLAT Sotkanda

2,280

2,300

2,840

0.2

PROUD FLAT Noborito

1,216

1,220

1,470

0.1

PROUD FLAT Yoyogi Hachiman

966

977

1,180

0.1

Property nameItabashiNihonbashi

46

Appraiser

EstateEstateEstateEstateEstateEstateEstateEstateEstateEstateEstateDaiwa 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.

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

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 Nakaochiai

844

851

969

0.1

PROUD FLAT Shibuya Tomigaya

3,960

4,023

4,800

0.4

PROUD FLAT Miyazakidai

1,390

1,438

1,580

0.1

PROUD FLAT Asakusabashi III

1,230

1,267

1,310

0.1

PROUD FLAT Togoshi-Koen

2,580

2,654

2,750

0.2

PROUD FLAT Itsutsubashi

652

553

708

0.1

PROUD FLAT Kawaramachi

735

616

554

0.0

PROUD FLAT Shin Osaka

1,620

1,377

2,060

0.2

PRIME URBAN Kita Juyo Jo

274

239

285

0.0

PRIME URBAN Odori Koen I

502

435

531

0.0

PRIME URBAN Odori Koen II

334

294

326

0.0

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

PRIME URBAN Kita Juichi Jo

547

467

576

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Miyanosawa

475

401

482

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Odori Higashi

394

339

416

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Chiji Kokan

249

209

259

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Maruyama

229

197

215

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Kita Nijuyo Jo

437

368

453

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Sapporo Idaimae

616

527

622

0.0

Japan Valuers Co., Ltd.

PRIMERiverfront

4,480

3,941

4,740

0.4

Japan Valuers Co., Ltd.

PRIME URBAN Kita Sanjo Dori

1,730

1,495

1,920

0.2

Japan Valuers Co., Ltd.

PRIME
Icchome

1,140

998

974

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Yaotome Chuo

466

393

356

0.0

Japan Valuers Co., Ltd.

PRIME URBAN
Amamiya

949

927

984

0.1

PRIME URBAN Aoi

712

646

674

0.1

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

PRIME URBAN Kanayama

553

478

586

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Tsurumai

1,020

863

1,020

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Kamimaezu

1,590

1,399

1,650

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Izumi

3,770

3,322

3,910

0.3

Japan Valuers Co., Ltd.

1,810

1,589

2,240

0.2

PRIME URBAN Hakata

588

519

635

0.1

PRIME URBAN Yakuin Minami

265

232

300

0.0

PRIME URBAN Kashii

398

336

280

0.0

PRIME URBAN Hakata Higashi

622

537

477

0.0

PRIME URBAN Chihaya

604

534

514

0.0

Serenite Shinsaibashi Grande

5,567

5,638

6,100

0.5

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.

202,047

190,333

226,582

18.1

Area

GreaterTokyo
area

Resident
ial

Other
areas

Property name

URBAN

Sapporo

URBAN

Nagamachi

Tsutsumidori

PRIME
URBAN
Honmachi

Residential subtotal

Sakaisuji

47

AppraiserNomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

Use

Area

Hotels

Other
areas

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)

Appraiser

Hotel Vista Sapporo Odori

3,600

3,665

3,730

0.3

Japan Valuers Co., Ltd.

Comfort Inn Naha Tomari
Port

2,650

2,683

2,520

0.2

Japan Valuers Co., Ltd.

6,250

6,348

6,250

0.5

4,900

5,136

5,450

0.4

4,900

5,136

5,450

0.4

1,081,389

1,059,049

1,252,678

100.0

Hotel subtotal
Other

GreaterTokyo
area

Ryotokuji University
UrayasuCampus (Land)

Shin-

Other subtotal
Total(Note 1)

Japan Real
Institute

Estate“Acquisition Price” refers to the following. Of the assets succeeded as a result of the merger of three REITs, the appraisal value as of September 30, 2015
for NRE Shibuya Dogenzaka Building and as of April 30, 2015 for other assets succeeded from NOF; and the appraisal value as of September 30, 2015
for PRIME URBAN Shinyurigaoka and as of May 31, 2015 for other assets succeeded from NRF are recorded as said assets’ respective acquisition prices.
Furthermore, the appraisal value as of March 31, 2016 or April 1, 2016 for other assets succeeded from TOP are recorded as said assets’ respective
acquisition prices. For all other assets, “Acquisition price” indicates the amount, excluding the various expenses required to acquire the property, includingtransaction 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 13th fiscal period-end (February 28, 2022) 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 themarket 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 of seeking
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 of the 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 topresent 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 amountequivalent to the book value of the transferred portion at the time of execution of the transfer.

(Note 8)

NMF changed the name of the following portfolio properties as of April 19, 2022.
Use of Property
RetailNew Name

Former Name

Izumiya SC Senrioka

Izumiya Senrioka

Izumiya SC Yao

Izumiya Yao

Izumiya SC Obayashi

Izumiya Obayashi

48

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 13th Fiscal Period Ended February 28, 2022

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 13th 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.

Name of real estate, etc.
(Location)

PurposeScheduled period

Scheduled construction cost(Thousands of Yen)
AmountTotal
paid during
Totalamountthe 13thamountalreadyfiscalpaid
periodSapporo North Plaza(Sapporo City, Hokkaido)

Renewal of air conditioner
system (phaseⅢ/Ⅳ)

From Apr. 2022
To Aug. 2022

78,500--PRIME URBAN Hakusan(Bunkyo Ward, Tokyo)

Repair of exterior wall

From Feb. 2021
To Aug. 2022

36,700--PRIME URBAN Yotsuya Gaien
Repair of exterior wall
Higashi (Shinjuku Ward, Tokyo)

From Mar. 2022
To Aug. 2022

36,700--PRIME URBAN Shinyurigaoka(Kawasaki City, Kanagawa)

Repair of exterior wall

From Nov. 2021
To Mar. 2022

36,560--Musashiurawa Shopping Square(Saitama City, Saitama)

Renewal of air-conditioning
system in common-use and the
Nitori areas

From Mar. 2022
To May. 2022

34,500--

NMF Kawasaki Higashiguchi
Renewal of emergency power
Building
generator(Kawasakiv City, Kanagawa)

From Apr. 2022
To Aug. 2023

89,000--(Note) Total amount already paid does not include the amount paid during the 13th fiscal period.

(b) Capital Expenditures during the 13th Fiscal Period
The following is an overview of the major construction work falling under the category of capital
expenditures that was conducted during the 13th fiscal period for the assets held as of the end of the 13th
fiscal period. Capital expenditures during the 13th fiscal period were ¥2,654,571 thousand and, whencombined with the ¥1,273,461 thousand repair expenses classified as expenses during the 13th fiscal period,a total of ¥3,928,033 thousand in construction work was implemented. The following construction costshows the amount equivalent to capital expenditures.
Name of real estate, etc.
(Location)

PurposeNMF
NagoyaYanagibashi
Building
Renewal of elevator（Nagoya City, Aichi）
NRE Yotsubashi Building
Installation of double glazed sash windows(Osaka City, Osaka)
Sapporo North Plaza
Renewal of air conditioner system(II/IV)(Sapporo City, Hokkaido)
NRE Nishi-Umeda Building
Renewal of elevator (phase Ⅱ)(Osaka City, Osaka)

PeriodConstruction cost(Thousands of Yen)

From Apr. 2021
To Dec. 2021

151,101

From Sep. 2021
To Feb. 2022

88,780From Sep. 2021
To Nov. 2021

72,570From Apr. 2020
To Nov. 2021

45,691NMF Ginza 4-chome Building(Chuo Ward, Tokyo)

Renewal of elevator body

From Jul. 2021
To Sep. 2021

42,912

covirna machida(Machida City, Tokyo)

Increase the signs and refurbish the facade(separate derivative works on the first, thirdand fifth floors)

From Jan. 2022
To Feb. 2022

37,906

Other real estate,etc.

Improvement of features

From Sep. 2021
To Feb. 2022

2,215,608

Total

2,654,571

49