(Reference) SUMMARY OF FINANCIAL RESULTS (REIT)
For the 14th Fiscal Period Ended August 31, 2022
October 18, 2022
REIT securities issuer:

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

Stock exchange listing:

Securities code:
Representative:

3462
Shuhei Yoshida, Executive Director

URL:

Tokyo Stock Exchange

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

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

Hiroshi Ishigooka, Head of NMF Investment Management Group

Scheduled date of filing of securities report:

November 29, 2022

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

November 18, 2022
Yes
Yes

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

1.

Financial Results for the 14th Fiscal Period (from March 1, 2022 to August 31, 2022)(1) Operating Results[figures are the rate of increase (decrease) compared with the previous period]

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

million yen
39,022
37,520%4.0
0.0

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

Operating profit
million yen
15,584
14,593

Ordinary income

%
6.8
(1.0)

Return on unitholders’equityyen

million yen
13,392
12,380

Ratio ofordinary income
to total assets

%

2,862
2,625

Net income

%
8.2
(0.4)

%

2.2
2.0

1.1
1.0

million yen
13,49912,377

%
9.1
(0.5)

Ratio ofordinary income
to operating revenues
%
34.3
33.0

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

Period ended
August 31, 2022
February 28, 2022

Total
distributions(excluding
distribution
in excess of
net income)yen million yen
2,863
13,4992,625
12,377

Distribution
in excess of
net income per
unit

Total
distributions
in excess of
net income

yen million yen
437
2,060
619
2,918

Distribution
per unit(including
distribution inexcess of net
income)Total
distributions(including
distribution
in excess of
net income)yen million yen
3,300
15,5603,244
15,296

Distribution
payout ratio

Ratio ofdistributions
to net assets

%
100.0
99.9

%
2.1
2.0

(Note 1) 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.
Of the ¥437 distribution in excess of net income per unit in the fiscal period ended August 31, 2022, ¥403 is a distribution of the allowance for temporary
difference adjustments and ¥34 is other distributions in excess of net income. Furthermore, the ratio of decreasing surplus is 0.001.
(Note 2) Distribution Payout Ratio is calculated using the below formula and truncated at the first decimal place.
Distribution Payout Ratio = Total Distributions (excluding distribution in excess of Net Income) / Net Income × 100(Note 3) Ratio of Distributions to Net Assets is calculated using the below formula and truncated at the first decimal place.
Ratio of Distributions to Net Assets = Distribution Per Unit (excluding distribution in excess of Net Income) / {(Net Assets per Unit at the
beginning of the fiscal period + Net Assets per Unit at the end of the fiscal period) / 2} × 100(3) Financial Position
Total assets
Period ended
August 31, 2022
February 28, 2022

million yen
1,187,581
1,187,420

Net assets
million yen
615,128
616,878

Net assets to total assets

Net assets per unit

%
51.8
52.0

yen
130,456
130,827

(4) Status of Cash Flows

Period ended
August 31, 2022
February 28, 2022

Net cashprovided by (used in)operating activities
million yen
28,12822,510Net cashprovided by (used in)investing activities
million yen(17,889)(19,837)

Net cashprovided by (used in)financing activities
million yen(15,584)(15,547)

Cash andcash equivalents
at end of period
million yen
44,89250,237

2. Earnings Forecasts for the 15th Fiscal Period (from September 1, 2022 to February 28, 2023) and the 16th Fiscal
Period (from March 1, 2023 to August 31, 2023)[figures are the ratio of increase (decrease) compared with the previous period]

Operatingrevenues

Operating profit Ordinary income

Net income

million yen% mllion yen% million yen% million yen%
Period ending
February 28, 2023
40,0082.5
16,2404.2
14,0595.0
14,0584.1
August 31, 2023
38,923 △2.7
14,968 △7.8
12,757 △9.3
12,756 △9.3
(Reference) Forecasted net income per unit
For the fiscal period ending February 28, 2023: ¥2,981
For the fiscal period ending August 31, 2023: ¥2,705

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

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

yen

yen

yen

2,977
2,704

335
557

3,312
3,261

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

None
None
None
None

(2) Number of Investment Units Issued and Treasury Investment Units① Number of investment units issued (including treasury investment units)
As of August 31, 2022:
4,715,200 units
As of February 28, 2022:
4,715,200 units② Number of treasury investment units
As of August 31, 2022:– units
As of February 28, 2022:– units(Note) For the number of investment units used as the basis for calculation of net income per unit, please refer to“Notes on Per Unit Information” on page 34.
* This summary of financial results is not subject to audit procedures by a certified public accountant or an audit
firm.
* Forward-looking statements
The earnings forecasts and other forward-looking statements contained in this document are based on
information currently available to and certain assumptions deemed reasonable by NMF. Accordingly, actual
earnings performance and other results may differ materially due to a variety of factors. Furthermore, suchforward-looking statements do not constitute a guarantee of future distributions. For more information on
the assumptions underlying forward-looking statements and the use of such statements, please refer to“Assumptions Underlying Earnings Forecasts for the Fiscal Period Ending February 28, 2023 (15th fiscal
period: September 1, 2022 to February 28 2023) and the Fiscal Period Ending August 31, 2023 (16th fiscal
period: March 1, 2023 to August 31 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 this translation and the Japanese original, the Japanese original shall prevail.

Attachment

Table of Contents
1.

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

2.

Financial Statements………………………………………………………………………………………… 11(1) Balance Sheet ……………………………………………………………………………………………… 1122(2) Statement of Income and Retained Earnings ……………………………………………………………… 14(3) Statement of Changes in Net Assets ……………………………………………………………………… 16(4) Statement of Cash Distributions …………………………………………………………………………… 20(5) Statement of Cash Flows…………………………………………………………………………………… 22(6) Notes Concerning the Going Concern Assumption ……………………………………………………… 23(7) Notes Concerning Significant Accounting Policies ……………………………………………………… 23(8) Notes to Financial Statements……………………………………………………………………………… 26(9) Increase (Decrease) in Total Number of Investment Units Issued and Outstanding …………………… 37
3. Reference Information ………………………………………………………………………………………… 39(1) Investment Status ………………………………………………………………………………………… 39(2) Investment Assets ………………………………………………………………………………………… 40

- 1 -

1.

Management Status(1) Management Status① Outline of Fiscal Period under Review
NMF’s basic policy is to manage its assets mainly as investments in real estate, etc. (meaning the assets
specified in the Ordinance for Enforcement of the Act on Investment Trusts and Investment Corporations(Prime Minister’s Office Ordinance No. 129 of 2000, including subsequent amendments)), specificallyreal estate, leaseholds of real estate, surface rights, and the beneficial interests of trusts formed by
entrustment of only these assets, to secure stable income over the medium to long term and steady growth(Note)of assets under management. In order to realize this basic policy, NMF adopts an investment strategy
that centers on the Greater Tokyo area (Tokyo, Kanagawa, Chiba and Saitama prefectures), which offers
strong tenant demand, while also considering regional diversification through investment in all of Japan’s
three major metropolitan areas and other major cities. By combining the “diversified type strategy” whichenables sustainable growth by investing in a variety of facilities, such as offices, retail facilities, logistics
facilities, residential facilities and other facilities, the “large-scale REIT strategy” which increases
portfolio stability through property and tenant diversification, the “portfolio centered on the Greater
Tokyo area” which is expected to improve cash flow stability through investment area diversification, anda strong property supply and operation support system based on the “leasing value chain” with theSponsor, Nomura Real Estate Development Co. Ltd. which is one of the group company of the Nomura
Real Estate Group (Nomura Real Estate Holdings, Inc. and its consolidated subsidiaries etc. The same
shall apply hereinafter.), NMF aims to increase unitholder value by securing stable income over the
medium to long term and the steady growth of assets under management.
(Note)

A.

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

Investment Environment(Japanese Economy)
The Japanese economy during the fiscal period under review saw signs of a pick-up, especially inconsumer spending as the sixth wave of COVID-19 subsided, but uncertainty remains with the
emergence of a seventh wave and rising prices.
(Real Estate Leasing Market)
As was the case in the previous fiscal period, the situation in the real estate leasing market during the
fiscal period under review varied according to the sector.
Although the office sector had seen a rising vacancy rate in Tokyo since the second half of 2020 as
office demand decreased due to the economic downturn and expansion of teleworking associated with
COVID-19, this rise is easing off. Meanwhile, advertised rents continued to decline due to thecontinued high vacancy rate. Since regional cities have lower teleworking rates than Tokyo, those withlow office supply are seeing vacancy rates fall, stabilizing advertised rent overall.
In the retail facility sector, business continued to be robust at retailers like supermarkets that provide
daily necessities, but recovery in restaurant sales varied by area due to changes in people’s behavior.
In the logistics sector, demand from providers of third-party logistics (3PL) (Note), NMF’s main
logistics tenants, and e-commerce-related operators continues to be strong. In the Greater Tokyo area,
the vacancy rate is rising due to a large supply of logistics facilities despite strong demand. Meanwhile,
the vacancy rate in the Kinki area remains low due to low supply.
(Note) Third-party logistics (3PL) refers to logistics services outsourced by shippers for part or all of
their logistics functions.
In the rental apartment sector, there had been a net outflow of people in Tokyo since July 2020 as more
people moved out due to expansion of teleworking and fewer people moved in due to changes in
employment conditions, but in 2022, the impact of COVID-19 has lessened and a net inflow returned,- 2 -bolstering the occupancy rate as of late. Regional cities are also showing generally strong occupancy
rates.
The hotel sector remains in a severe state, but the impact of COVID-19 is lessening, for example withno behavior restrictions accompanying the seventh wave.
(Real Estate Transaction Market)
The trading volume of commercial real estate in the first half of 2022 declined year on year due to lessacquisition by J-REITs. Meanwhile, the appetite of overseas investors for acquisition increased due tothe weakening yen and widening disparities in interest rates between Japan and western nations,
resulting in some acquisitions of large rental apartment properties.
(J-REIT Market)
The TSE REIT Index could have declined in 2022 due to U.S. interest rate hikes, but overall, it rosefrom 1,877.38 points as of February 28, 2022, and to 2,033.71 points as of August 31, 2022, due to
expectations of economic recovery.
B.

Management Performance
Under the circumstances described above in A. Investment Environment, during the fiscal period underreview (14th fiscal period), NMF acquired 3 property (PROUD FLAT Togoshi-Ginza, PRIME URBAN
Higashi Nakano Court, and PMO Hamamatsucho II) and disposed of 1 properties (Ichibantyo stear). As aresult, at the end of the fiscal period under review (as of August 31, 2022), NMF held 300 properties(total acquisition price: ¥1,091,759 million), the ratio of investment in the Greater Tokyo area was 83.8%,
2
the gross leasable area of the portfolio was 2,173,632.71m , and the portfolio remained highly
diversified.
In terms of property and facility management, as described above in A. Investment Environment, theimpact of the spread of COVID-19 infections varies according to sector. In the retail sector, although
priority measures to prevent prolonged COVID-19 infection continued to request that retail facilities
shorten their operating hours, the impact on entire portfolio revenue was limited. The office sector and therental apartment sector continued to see a rise in the vacancy rate and a decline in advertised rents in themarket 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.
In February 2019, NMF set ESG materiality issues that are of high importance to be addressed by NMF
in order to contribute to the realization of a sustainable society by resolving social issues through its
business activities. Based on the policies, targets and key performance indicators (KPI) set for eachmateriality, NMF engages in investment in environmentally friendly properties while working to enhancethe efficiency of its energy use by, for example, introducing eco-friendly and energy-saving
countermeasures at its properties, striving for building a portfolio with low environmental impact. NMF(Note1)
promotes acquisition of Green certification
under such policy.
Furthermore, as of the end of the fiscal period under review, the progress toward the newly established
KPI, “Achieving 70 of green certification with three stars or more or equivalent up to fiscal year 2030”,(Note2)reached at 58.2.
In addition, based on the recommendations of the Task Force on Climate-related Financial Disclosure(“TCFD”) for which Nomura Real Estate Asset Management Co., Ltd. ("NREAM"), the asset
management company to which NMF entrusts management of its assets, expressed its support on July 14,
2020, NMF summarized policies and initiatives of NMF and NREAM according to the four disclosure
items recommended by the TCFD—Governance, Strategy, Risk Management, and Metrics and Targets—and disclosed them on NMF’s official website on February, 2021. Note that in analyzing and verifying
the financial impact in Strategy, NMF first assessed the risks and opportunities that climate change risks
bring to NMF Then, based on future climate forecasts published by various international organizations
such as die International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change(IPCC) as the main information sources, three possible scenarios—the 4℃, 2℃, and 1.5℃ Scenarios—
were set as assumptions in conducting scenario analysis, and financial impacts were analyzed and verified
for each of the risks and opportunities identified. Furthermore, NMF is actively promoting measures to- 3 -achieve carbon neutrality based on the 2050 Carbon Neutrality Declaration announced in October 2022.
NMF’s policy is to promote initiatives aimed at helping the shift to a low-carbon society and expanding
NMF’s revenue opportunities through greenhouse gas emissions reduction and other efforts, while
adequately managing physical and transition risks associated with climate change.
(Note 1) Green certification refers to either DBJ Green Building Certification, BELS Certification, or CASBEE for Real Estate.
(Note 2) The percentage of properties which certified either DBJ Green Building Certification (three stars or more), BELS Certification (threestars or more), or CASBEE for Real Estate (B+ or higher) are calculated based on total floor areas subject to properties excluding
land owned by NMF.

C.

Status of Fund Procurement
During the fiscal period under review, NMF refinanced ¥24,730 million in interest-bearing liabilities ofwith ¥24,980 million maturities.
As a result, the balance of interest-bearing liabilities at the end of the fiscal period under review was¥517,463 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 that credit rating agencies are scheduled to provide or make available for inspection at the requestof NMF.
Credit rating agency

D.

Rating description

Note

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

Rating outlook:

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

AA－

Rating outlook:

StableIssuer rating:Business Performance and Distributions
In the 14th fiscal period, operating revenues totaled ¥ 39,022 million, operating profit reached ¥15,584 million, ordinary income totaled ¥13,392 million, and net income came to ¥ 13,499 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 ¥15,560 millon in
distributions (¥3,300 per investment unit). This figure was arrived at by ¥13,499 millon in net income
after taxes and ¥2,622 millon in amortization of goodwill and subtracting ¥561 millon, the total of a
portion of gains on sale of real estate and gain on donation of fixed assets.
Total distributions comprise distribution of earnings and distribution in excess of net income.
Distribution of earnings as stipulated in Article 136, Paragraph 1 of the Act on Investment Trusts andInvestment Corporations (Act No. 198 of 1951 as amended, hereinafter the Investment Trust Act) cameto ¥13,499 million (¥2,863 per investment unit). Distribution in excess of net income comprises a
distribution of ¥1,900 million (¥403 per investment unit) as allowance for temporary difference
adjustment and ¥160 million (¥34 per investment unit) in other distribution in excess of net earnings.

②

Outlook for Next Fiscal Period
Under the conditions described above in ① Outline of Fiscal Period under Review /A. Investment
Environment, NMF will continue to target external growth through property acquisition pipelines byleveraging the Nomura Real Estate Group's property development capabilities and internal growth bymaking maximum use of the property management pipeline with a focus on strengthening its property
brands. By doing so, with both the external growth and the internal growth, NMF aims to secure thegrowth of distribution and increase further unitholder value.

③

Forecasts of the Financial Results
Forecasts of the Financial Results for the fiscal period ending February 28, 2023 (15th fiscal period:
September 1, 2022 to February 28, 2023) and the fiscal period ending August 31, 2023 (16th fiscal
period: March 1, 2023 to August 31, 2023) are stated below. Assumptions for forecasts of the financial
results are referred to the following “Assumptions Underlying Earnings Forecasts for the Fiscal PeriodEnding February 28, 2023 (15th fiscal period: September 1, 2022 to February 28, 2023) and the Fiscal
Period Ending August 31, 2023 (16th fiscal period: March 1, 2023 to August 31, 2023)”.

- 4 -Operating Revenues
Operating Profit
Ordinary Income
Net Income
Net Income Per Unit
Distribution Per Unit
(Excluding Distribution in Excess of Net Income)Distribution in Excess of Net Income Per Unit
Total Distributions Per Unit
(Including Distribution in Excess of Net Income)- 5 -15th fiscal period ending 16th fiscal period ending
February 28, 2023
August 31, 2023
¥ 40,008 million¥ 38,923 million¥ 16,240 million¥ 14,968 million¥ 14,059 million¥ 12,757 million¥ 14,058 million¥ 12,756 million¥ 2,981¥ 2,705¥ 2,977¥ 2,704

¥ 335

¥ 557

¥ 3,312¥ 3,261④

Significant Subsequent Events
A. Transfer of the asset(a)NMF sold the following asset after the conclusion of the 14th fiscal period (August 31, 2022).
NRE Higashi-nihonbashi Building
Type of asset
Trust beneficial interest in trust of real estate (Note)
Use
OfficeContract date
March 8, 2022
Transfer date
September 15, 2022 (Quasi co-ownership of 50%)
Transfer price¥2,260 million (Quasi co-ownership of 50%)
Buyer
Domestic general business company
Impact on 15th fiscal period earnings ¥350 million(Scheduled)(b) NMF is going to sell the following asset after the conclusion of the 14th fiscal period (August 31,2022).
NRE Higashi-nihonbashi Building
Type of asset
Trust beneficial interest in trust of real estate (Note)
Use
OfficeContract date
March 8, 2022
Transfer date (Scheduled)
March 15, 2023 (Quasi co-ownership of 50%)
Transfer price (Scheduled)¥2,260 million (Quasi co-ownership of 50%)
Buyer(Scheduled)
Domestic general business company
Impact on 16th fiscal period earnings ¥347 million(Scheduled)(Note) At the end of the 14th fiscal period, the asset to be transferred was real estate, but on
September 15, 2022, a trust agreement was concluded and it has become a trust beneficial interestin trust of real estate.
(c) NMF decided to sell the assets referred to below on October 18, 2022.
Transfer
price(Scheduled)Impact on
15th fiscal
periodearnings(Scheduled)(¥ million)

1,310

222

636

94

967

281

763

92

1,281

382

300

82

257

51

459

78

Total
5,974
(Note) Undisclosed, since a consent has not obtained from the scheduled transferee.

1,286

Property namePRIME URBAN
TakaidoPRIME URBAN
Mukojima
PRIME URBAN
Nisni funabashi
PRIME URBAN
Aoi
PRIME URBAN
Tsurumai
PRIME URBAN
Chiji Kokan
PRIME URBAN
Maruyama
PRIME URBAN
Kita Nijuyo jo

Type
of
asse

Real
estate

Use

Resi
dent
ial

Contract
date(Scheduled)Transferdate(Schedule
d)

Buyer
(Sche
dule
d)

Undis
close
d(Not
e)
October 18, October 31,
2022
2022

Undis
close
d(Not
e)

- 6 -

The impact of (a), (b) and (c), above, on earnings for 15th fiscal period (September 1, 2022 toFebruary 28, 2023) and 16th fiscal period (March 1, 2023 to August 31, 2023) will be recorded asgain on sales of real estate under operating revenues.
(Reference)
A. Property acquisition(a) NMF decided to acquire the assets referred to below on October 18, 2022.
Property name

PROUDFLAT Nedu-yanaka

Type of asset

Real estate(Note 1)

（Registry）
2-5-26, 2 other lands, Yanaka, Taito Ward, Tokyo（Street）
1-1-26 Yanaka, Taito Ward, Tokyo(Note 1)

Eight-floor steel reinforced concrete structure with flat roof

(Note 1)391.63㎡(Note 1)

1,671.64㎡

Location

Structure

Land area

Floor area

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

July 15, 2020

(Note 2)

¥1,400 million

Completion date

Acquisition priceDate of agreement

October 18, 2022

Date of acquisition

January 6, 2023

Seller
Nomura Real Estate Development, Co., Ltd.
(Note 1)Location (excluding Street), Structure, Land Area, Floor area and Completion Date are basedon the information in the real estate registry.
(Note 2)The acquisition price indicates the amount, excluding the various expenses required to acquire
the property such as taxes and public dues, etc. (the amount of the transaction payment
described in the real estate sale agreement).

- 7 -Assumptions Underlying Earnings Forecaststhfor the Fiscal Period Ending February 28, 2023 (15 fiscal period: September 1, 2022 to February 28, 2023) and theth
Fiscal Period Ending August 31, 2023 (16 fiscal period: March 1, 2023 to August 31, 2023)
Item

Assumptionsth

Fiscal period ending February 28, 2023 (15 fiscal period): September 1, 2022 toFebruary 28, 2023
Calculation periodth・ Fiscal period ending August 31, 2023 (16 fiscal period): March 1, 2023 toAugust 31, 2023
・ In addition to properties held by NMF as of the date hereof (300 properties) (the“Acquired Assets”), it is assumed that NMF will dispose of NRE
Higashinihonbashi Building (quasi co-ownership: 50%), which is one of the assets
to be disposed of announced in the Notification Concerning Property Acquisition
and Disposition dated March 8, 2022, on March 15, 2023, will dispose of theassets to be disposed of announced in the Notification Concerning Property
Acquisition and Disposition dated today (PRIME URBAN Takaido, PRIMEURBAN Mukojima, PRIME URBAN Nishi Funabashi, PRIME URBAN Aoi,
PRIME URBAN Tsurumai, PRIME URBAN Chiji Kokan, PRIME URBAN
Maruyama, and PRIME URBAN Kita Nijuyo Jo) on October 31, 2022 (the nine
Assets Under
properties referenced above are referred to as the “Assets to be Disposed of”), andManagement
will acquire the asset to be acquired announced in the Notification Concerning
Property Acquisition and Disposition dated today (Proud Flat Nezu Yanaka; the“Asset to be Acquired”) on January 6, 2023.
・ The forecasts are based on the assumption that the Assets to be Disposed of will
be disposed of on the above-mentioned date, that the Assets to be Acquired will
be acquired on the above-mentioned date, and that there will be no other changes
in assets under management (new property acquisitions or sales of portfolio
properties) through the end of the Fiscal Period Ending August 31, 2023 (16th
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
Operating revenues
assumption that there will be no delays in payment or failure to pay on the part oftenants.
・ Real estate rental expenses are expected to be ¥16,940 million in the February 28,thth2023 (15 ) fiscal period and ¥17,199 million in the August 31, 2023 (16 ) fiscal
period.
・ Regarding property and other taxes, it is estimated that ¥3,286 million in thethFebruary 28, 2023 (15 ) fiscal period and ¥3,362 million in the August 31, 2023th(16 ) fiscal period will be recorded as real estate rental expenses. In general, thefixed asset taxes and urban planning taxes that will be imposed, relevant to the
Operating expenses
year in which such properties will be acquired, will be divided between the seller(excluding amortizationand the purchaser on a pro-rata basis based on holding period and settled at theexpenses for goodwill)time of acquisition, and such taxes are deemed as acquisition costs and, are notincluded in the expenses. Therefore, the fixed asset taxes and urban planning taxes
regarding the assets to be acquired will not be recorded as expenses in thethth
February 28, 2023 (15 ) fiscal period and the August 31, 2023 (16 ) fiscal period.
・ Estimated property management costs (including building management fees andthproperty management fees) of ¥2,904 million in the February 28, 2023 (15 )thfiscal period and ¥2,899 million in the August 31, 2023 (16 ) fiscal period are
expected to be recorded as real estate rental expenses.
・

- 8 -

Item

Assumptions
・

・

・

・

Amortization expenses
・
for goodwill

・Non-operating expenses
・・Interest-bearing
liabilities

・

Expenses for building repairs and maintenance required for the fiscal period arerecorded as real estate rental expenses calculated based on the mid-to-long term
repair plans that NMF’s Asset Management Company has established. However,
the actual expenses for repairs and maintenance for the fiscal period may differ
significantly from estimates due to expenses for urgent repairs of damage tobuildings caused by difficult to foresee factors, significant year-on-year
fluctuations in costs or non-periodic repair expenses. Furthermore, expenses forrepairs and maintenance are estimated at ¥1,294million in the February 28, 2023thth(15 ) fiscal period and ¥1,332 million in the August 31, 2023 (16 ) fiscal period.
thDepreciation of ¥5,671 million in the February 28, 2023 (15 ) fiscal period andth¥5,725 million in the August 31, 2023 (16 ) fiscal period is expected to berecorded as real estate rental expenses.
Other operating expenses (including asset management fees, asset custody fees
and general administration fees) are estimated at ¥4,204million in the Februarythth28, 2023 (15 ) fiscal period and ¥4,133 million in the August 31, 2023 (16 )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 February 28,thth2023 (15 ) and the August 31, 2023 (16 ) fiscal periods.
Amortization of goodwill causes a difference between accounting and tax
treatment and may result in the imposition of corporation tax or other tax. NMF
intends to make distributions in excess of net income for the purpose of securing
tax relief during the goodwill amortization period, and it is expected that NMF
will be able to avoid such taxation.
Interest expenses and other borrowing-related expenses are estimated to be ¥th2,170 million in the February 28, 2023 (15 ) fiscal period and ¥2,200 million inth
the August 31, 2023 (16 ) fiscal period.
As of this document’s publication, the outstanding interest-bearing liabilities of
NMF are ¥517,463 million, consisting of ¥485,463 million in outstanding
borrowings and ¥32,000 million in investment corporation bonds.
Regarding the ¥29,592 million in borrowings that will come due by the end of thethFebruary 28, 2023 (15 ) fiscal period and the ¥30,842 million in borrowings thatwill come due in the August 31, 2023 (16th) fiscal period (¥64,435 million in
total), it is assumed that NMF will make scheduled, partial repayments of ¥42thmillion in each the February 28, 2023 (15 ) fiscal period and the August 31, 2023
(16th) fiscal period using cash on hand, while refinancing the remainder with new
borrowings.
It is assumed that there will be no changes in the amount of the outstanding
interest-bearing liabilities other than those stated above through the end of theAugust 31, 2023 (16th) fiscal period.

- 9 -

Item

Assumptions
・

Investment units・・Distribution per unit

・

・

・

Distribution per unit inexcess of earnings per
unit

・

・
Other
・

Forecasts are based on the number of investment units issued and outstanding asof this document’s publication, 4,715,200 units. NMF assumes that there will be
no additional issuance of new investment units through August 31, 2023 (the endof the 16th fiscal period).
The distribution per unit is calculated according to the distribution policy outlined
in NMF’s Articles of Incorporation.
NMF assumes that, of the allowance for temporary difference adjustments(“ATA”) accrued up to the present, the amount eliminated in the February 28,thth2023 (15 ) fiscal period (¥17 million) and the August 31, 2023 (16 ) fiscal period(¥8 million) will be reversed from retained earnings at the respective period ends.
thth
In the February 28, 2023 (15 ) fiscal period and the August 31, 2023 (16 ) fiscal
period, NMF assumes there will no change in the per-unit distribution by thechange in fair value of interest rate swaps.
The per-unit distribution may vary due to various factors, including changes in theinvestment portfolio, changes in rent income caused by tenant replacements, andunforeseen repairs.
The amount of distribution in excess of net income is estimated on the assumption
NMF will distribute the amount of valuation and translation adjustments deductedfrom the total difference between accounting and tax treatment and the
distributable amount as ATA for the purpose of tax relief. The estimate is basedon the assumption that, in order to alleviate the impact on distributions of theamortization of goodwill and other merger-related expenses (the “Merger
Expenses”) and the reversal of ATA, if the total difference between accounting
and tax treatment for the relevant fiscal period is less than the sum of the Merger
Expenses and the reversal of ATA, NMF will make other distributions in excess
of net income in an amount not exceeding this difference and within the limit
prescribed by the regulations of the Investment Trusts Association, Japan (the“Investment Trusts Association Japan Regulations”), which restricts the amount to60/100 of the total amount of accumulated depreciation recorded as of the end of
the relevant fiscal period less the total amount of accumulated depreciation
recorded as of the end of the immediately preceding fiscal period.
th
The distribution in excess of net earnings per unit for the February 28, 2023 (15 )fiscal period is expected to be ¥335, comprising ¥331 in distributions of ATA and¥4 in other distributions in excess of net earnings. The distribution in excess of net
thearnings per unit for the August 31, 2023 (16 ) fiscal period is expected to be¥557, comprising ¥373 in distributions of ATA and ¥184 in other distributions inexcess 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 -

2.

Financial Statements(1) Balance Sheet
As of February 28, 2022

Thousands of Yen
As of August 31, 2022

37,690,998
12,546,482
577,103846,265
4,829
526,178
52,191,857

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

159,801,735(25,429,558)
134,372,177
821,082(434,005)

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

387,076

389,583

1,113,640(627,866)

1,124,449(663,494)

485,773
620,439(300,902)
319,536

460,954
666,985(347,263)
319,721313,203,327
207,049,386(39,305,841)
167,743,545

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

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

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

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

Total property and equipment

1,256,410(928,254)
328,156
968,086(297,250)
670,835
1,150,284(615,736)
534,547
431,974,656
4,752(2,112)
2,640
70,431
1,050,092,704- 11 -

*3

*3

*3
*3

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

As of February 28, 2022

Thousands of Yen
As of August 31, 2022

Intangible assets
Goodwill
Leasehold rights
Leasehold rights in trust
Other
Total intangible assets

72,475,766
1,331,702
7,625,286
50,162
81,482,917

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

Investments and other assets
Long-term prepaid expenses
Long-term deposits
Security deposits
Derivative assets
Total investments and other assets

2,176,053
445,088885,773
4,632
3,511,547

2,076,655
354,007885,773－
3,316,436

1,135,087,169

1,140,392,497

141,555
141,555

133,571
133,571

1,187,420,582

1,187,581,625

Total noncurrent assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets- 12 -

Thousands of Yen
As of February 28, 2022

As of August 31, 2022

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

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

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

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

Liabilities
Current liabilities
Trade accounts payable
Current portion of long-term debt
Lease obligations in trust
Other accounts payable
Accrued expenses
Accrued income taxes
Accrued consumption taxes
Rent received in advance
Unearned revenue
Provision for loss on disaster
Derivatives liabilities
Other current liabilities
Total current liabilities
Long-term liabilities
Investment corporation bonds
Long-term debt
Lease obligations in trust
Long-term advances received
Security deposits from tenants
Security deposits from tenants in trust
Derivatives liabilities
Total long-term liabilities
Total liabilities*3

Net assets
Unitholders' equity
Unitholders' capital
SurplusCapital Surplus
Deductions from capital surplus
Allowance for temporary difference
adjustments
Other deductions from capital surplus
Total deduction from capital surplus
Capital surplus, net*4Retained earnings
Total surplus
Total unitholders' equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Valuation and translation adjustments
Total net assets
Total liabilities and net assets*2- 13 -*3244,893,909

244,996,671

394,012,959

394,012,959(18,295,737)*4(20,286,524)(16,214,225)(17,142,147)(34,509,963)
359,502,995(37,428,672)
356,584,286

12,575,751
372,078,747
616,972,656

13,594,898
370,179,185
615,175,856(94,570)(94,570)(47,825)(47,825)

616,878,085
1,187,420,582*2

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

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

Operating revenues
Rental revenues
Other rental revenues
Gain on sales of real estatePrevious period
from Sep. 1, 2021

Current period
from Mar. 1, 2022

to Feb.28, 2022

to Aug.31, 2022

*1
*134,654,862
2,703,224*1*1

35,249,227
3,015,254*2

162,853*2

757,969

Total operating revenues

37,520,940

39,022,452

Operating expenses
Real estate rental expenses
Loss on sales of real estate
Asset management fees
Asset custody fees
Administrative service fees
Directors' compensation*1*3

Amortization of goodwill
Other operating expenses
Total operating expenses

15,972,567
300,369
3,385,703
57,099172,567
7,800*1

16,652,112－
3,460,491
56,990171,889
6,600

2,622,242
409,372

2,622,242
467,615

22,927,722

23,437,941

14,593,218

15,584,510

292

256

Reversal of dividends payable
Interest on refund

2,845
7

3,080
133

Other non-operating revenues
Total non-operating revenues

6

6

3,152

3,476

1,585,499
170,560

1,578,165
173,239

7,984

7,984

449,3532,740

434,0132,286

2,216,139

2,195,689

12,380,230

13,392,297

Operating profit
Non-operating revenues
Interest income

Non-operating expenses
Interest expenses
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
Extraordinary gain
Gain on donation of non-current assets－

Total extraordinary gain*4

155,651
155,651－

Extraordinary loss
Loss on disaster－

Total extraordinary loss－

46,51912,380,230

13,501,429

2,727

2,119

Income before income taxes
Income taxes—current- 14 -*5

46,519

Total income taxes
Net income

2,727

2,119

12,377,502

13,499,309

Retained earnings brought forward

198,249

95,589Retained earnings at end of period

12,575,751

13,594,898- 15 -

(3) Statement of Changes in Net Assets
Previous period (from September 1, 2021 to February 28, 2022)
Thousands of Yen

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

Balance at the beginning244,739,887 394,012,959
of the period
Changes of items during
the period
Distributions of－－retained earnings
Reversal of allowancefor temporary
154,021－
difference
adjustments
Distributions inexcess of net earnings
from allowance for－－temporary difference
adjustments
Other distributions in－－excess of net earnings
Net income－

Net capitalsurplus(16,624,976) (14,815,391) (31,440,368) 362,572,590

－

－

－

－

154,021(154,021)－－(1,824,782)－(1,824,782)(1,824,782)－(1,244,812)(1,244,812)(1,244,812)

－

－

－

－

－

Net changes of items
other than
－
－
－
－
－
－
unitholders’ equity
Total changes of items
154,021(1,670,760) (1,398,834) (3,069,595) (3,069,595)－
during the period
Balance at the end of the244,893,909 394,012,959 (18,295,737) (16,214,225) (34,509,963) 359,502,995
period- 16 -

Thousands of Yen
Valuation and translation
Unitholders' equity
adjustments
Total net
Surplus
Total
Deferred gains Valuation andassetsunitholders' or losses ontranslation
Retained
Total
equityhedgesadjustments
earnings
surplus
Balance at the beginning
12,786,253 375,358,843 620,098,731
of the period
Changes of items during
the period
Distributions of(12,433,982) (12,433,982) (12,433,982)
retained earnings
Reversal of allowancefor temporary(154,021)(154,021)－
difference
adjustments
Distributions inexcess of net earnings
from allowance for－ (1,824,782) (1,824,782)
temporary difference
adjustments
Other distributions in－ (1,244,812) (1,244,812)
excess of net earnings
Net income
Net changes of items
other thanunitholders’ equity
Total changes of items
during the period
Balance at the end of theperiod(197,332)(197,332) 619,901,398－－ (12,433,982)

－

－

－

－

－

(1,824,782)－－(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- 17 -

Current period (from March 1, 2022 to August 31, 2022)

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

Balance at the beginning
244,893,909 394,012,959
of the period
Changes of items during
the period
Distributions of－－retained earnings
Reversal of allowancefor temporary
102,762－difference
adjustments
Distributions inexcess of net earnings
from allowance for－－temporary difference
adjustments
Other distributions in－－excess of net earnings
Net income－(18,295,737) (16,214,225) (34,509,963) 359,502,995

－

－

－

－

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

－

－

－

－

－

Net changes of items
other than
－
－
－
－
－
－
unitholders’ equity
Total changes of items
102,762(1,990,786)(927,922) (2,918,708) (2,918,708)－
during the period
Balance at the end of the244,996,671 394,012,959 (20,286,524) (17,142,147) (37,428,672) 356,584,286
period- 18 -

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

－

－

－

－

－

(2,093,548)－－(825,160)

13,499,309

13,499,309

13,499,309－－

13,499,309

－

－

－

46,744

46,744

46,744

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

46,744

46,744(1,750,054)

13,594,898 370,179,185

615,175,856(47,825)(47,825) 615,128,031- 19 -

(4) Statement of Cash Distributions
Yen
Previous period
from Sep. 1, 2021
to Feb. 28, 2022
12,575,751,402

Current period
from Mar. 1, 2022
to Aug. 31, 2022
13,594,898,383

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

2,918,708,800

2,060,542,400

2,093,548,800

1,900,225,600

825,160,000

160,316,800

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

102,762,213

46,744,842

102,762,213

46,744,842

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]

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

15,560,160,000[3,300]13,499,617,600[2,625][2,863]

2,093,548,800

1,900,225,600

[444]

[403]

825,160,000

160,316,800

[175]

[34]

V. Retained earnings carried forward

95,589,189

48,535,941

I. Retained earnings at end of period- 20 -

Yen

Calculation method for distributions

Previous period
from Sep. 1, 2021
to Feb. 28, 2022
NMF calculates distributions inaccordance
with
the
cash
distribution policies as specified in
Article 36, paragraphs 1 and 2 of
NMF’s Articles of Incorporation.
For the fiscal period underreview,
NMF
decidedtoimplement
a
total
of
¥15,296,108,800 in distributions(¥3,244 per investment unit). This
figure was arrived at by adding to¥12,377,502,401 in net income
after taxes ¥2,622,242,820 inamortization of goodwill and¥300,369,335 in loss on sale ofreal estate, and excluding fromthe amount of ¥15,300,114,556
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 anddistribution in excess of net
income. Distribution of earnings
as stipulated in Article 136,
paragraph 1 of the Investment
TrustsAct
came
to¥12,377,400,000 (¥2,625 perinvestment unit). Distribution inexcess of net income comprises a
distribution of¥2,093,548,800(¥444 per investment unit) as
allowance
for
temporarydifference
adjustment
and¥825,160,000
(¥175
per
investment
unit)
in
other
distribution in excess of net
income.

- 21 -

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

(5) Statement of Cash Flows
Thousands of Yen
Previous period
from Sep. 1, 2021
to Feb. 28, 2022
Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of goodwill
Amortization of investment corporation bond issuance costs
Increase (decrease) in provision for loss on disaster
Interest income
Interest expenses
Gain on donation of non-current assets
Loss on disposal of property and equipment
Decrease (increase) in rental receivables
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Decrease (increase) in long-term deposits
Increase (decrease) in trade accounts payable
Increase (decrease) in other accounts payable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in rent received in advance
Decrease in property and equipment in trust due to sales
Other
SubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

Current period
from Mar. 1, 2022
to Aug. 31, 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)

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

24,348,452

29,856,452

292(1,836,956)(1,170)256(1,725,040)(2,714)22,510,618

28,128,954(641,372)(19,527,403)－(4,339)(623,369)
491,383(1,043,034)
1,470,852
40,011(11,859,316)(1,930,483)(4,270,403)(2,085)(717,306)
1,139,108(1,394,583)
1,145,183－(19,837,271)(17,889,886)

30,025,000(30,067,800)(12,434,078)

24,730,000(25,022,800)(12,373,419)(1,825,166)(2,093,294)

Cash flows from investing activities
Payments for purchase of property and equipment
Payments for purchase of property and equipment in trust
Payments for purchase of intangible assets
Payments for purchase of intangible assets in trust
Reimbursement of security deposits to tenants
Proceeds from security deposits from tenants
Reimbursement of security deposits to tenants in trust
Proceeds from security deposits from tenants in trust
Proceeds from security deposits
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term debt
Repayment of long-term debt
Distributions of earnings to unitholders
Distributions in excess of net earnings from allowance fortemporary difference adjustments
Other distributions in excess of net earnings
Net cash provided by (used in) financing activities(1,245,360)(825,004)(15,547,404)(15,584,517)

Net increase (decrease) in cash and cash equivalents(12,874,058)(5,345,450)

Cash and cash equivalents at beginning of period

63,111,539

50,237,480

Cash and cash equivalents at end of period

50,237,480

44,892,030- 22 -

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

(7) Notes Concerning Significant Accounting Policies
1.

Depreciation of
noncurrent assets(1) Property and equipment (including trust assets)
The straight-line method is adopted.
The useful lives of major property and equipment are as follows:
Buildings
3–70 years
Structures
6–45 years
Machinery
6–17 years
Tools, furniture and fixtures 3–20 years(2) Intangible assets
The straight-line method is adopted.
Goodwill is amortized using straight-line method over 20 years.

Accounting method fordeferred assets
3. Allowance for doubtful
accounts

2.

4.

Revenue and expenses
recognition(3) Long-term prepaid expenses
The straight-line method is adopted.
Deferred investment corporation bond issuance costs
The straight-line method over the respective terms of the bonds.
(1) To be ready for possible losses arising from defaults on receivables, theuncollectable amount is estimated and recorded by investigating collectability
based on historical loan loss ratios for general receivables and on case-bycase examinations for doubtful receivables.
(2) Provision for loss on disaster
The amount that is reasonably estimated at the 14th fiscal period underreview is recorded to cover expenditures for restoration, etc. following the2021 Fukushima Earthquake and 2022 Fukushima Earthquake.
(1) Accounting for fixed asset tax, etc.
Of the tax amount assessed and determined for fixed asset tax, city planningtax, depreciable asset tax, etc. on real estate, etc. held by NMF, the method of
charging the amount corresponding to the concerned fiscal period to expenses
as real estate rental expenses is adopted.
The amount equivalent to fixed asset tax, etc. for the fiscal year in which theacquisition date falls paid to the seller as reimbursement upon acquisition ofreal estate or trust beneficiary interests in real estate is included in the cost of
acquisition of the concerned real estate and not recorded as expenses. The
amount equivalent to fixed asset tax, etc. included in the cost of acquisition ofreal estate, etc. was ¥114,569 thousand in the previous fiscal period and¥33,773 thousand in the current fiscal period.

(2) Revenue recognition
Main performance obligations concerning revenues from contracts with
NMF’s customers and normal points in time when the obligations are satisfied(normal points in time when revenues are recognized) are as follows:① Disposition of real estate
Gains on sale of real estate are recorded at the points in time whencustomers or the buyers acquire control over the real estate by NMF
satisfying delivery obligations stipulated in the contracts on real estate
disposition.
② Utility expense revenues
Utility expense revenues are recorded according to the supply of electricity,water, etc. to customers or the tenants based on the lease contracts andattached agreements.
Among utility expense revenues, when judged that NMF is applicable as anagent, it is NMF’s policy to recognize net amounts as revenues after
deducting the amounts paid to the suppliers of electricity, gas, etc. from theamounts NMF received as utility charges.
- 23 -

5.

Hedge accounting(1) Method of hedge accounting
Deferred hedge accounting is adopted. For interest-rate swap transactions
that meet the requirements for special treatment, special treatment is adopted.

(2) Hedging instruments and hedged items
Hedging instruments
Interest-rate swap transactions
Hedged items
Interest on loans(3) Hedging policy
NMF conducts derivative transactions for the purpose of hedging risksprescribed in the Articles of Incorporation in accordance with the Basic Policy
on Risk Management.

6.

Other bases for
preparing financial
statements

7.

Cash and cash
equivalents as stated in
the Statement of Cash
Flows(4) Method for assessing effectiveness of hedging
The effectiveness of hedging is assessed by the correlation between changes
in the fair value of hedging instruments and hedged items.
(1) Method of accounting for trust beneficiary interests in real estate, etc.
Concerning trust beneficiary interests in real estate, etc., held by NMF, allassets and liabilities within the trust assets as well as all revenues andexpenses generated by the trust assets are recorded under the corresponding
items of the Balance Sheet and Statement of Income and Retained Earnings.
Of the trust assets thus recorded, the following major items are listed as
separate items on the balance sheet.
① Cash and bank deposits in trust② Buildings in trust; Structures in trust; Machinery in trust; Tools, furnitureand fixtures in trust; Land in trust; Leased assets in trust③ Leasehold rights in trust④ Lease obligations in trust⑤ Security deposits from tenants in trust(2) Method of accounting for non-deductible consumption tax, etc.
Non-deductible consumption tax, etc., on such items, as noncurrent assets is
included in the acquisition costs of individual items.
Cash and cash equivalents in the statement of cash flows consist of cash on
hand and cash in trust; deposits and deposits in trust that can be withdrawn at any
time; and short-term investments with a maturity of three months or less from thedate of acquisition that are readily convertible to cash and bear only an
insignificant risk of price fluctuation.

- 24 -

(Additional Information)(Notes Concerning Increases in and the Reversal of Allowance for Temporary Difference Adjustments)
Previous period
Current period
from Sep. 1, 2021
from Mar. 1, 2022
to Feb. 28, 2022
to Aug. 31, 2022
1．Reasons, related assets and amounts of allowance
1．Reasons, related assets and amounts of allowanceThousands of Yen
Thousands of Yen
Allowance for
Allowance for
Relatedtemporary
Relatedtemporary
ReasonReasonassets, etc.
difference
assets, etc.
difference
adjustment
adjustment
Goodwill
Amortization of
2,622,242
Goodwill
Amortization of
2,622,242
goodwill
goodwill
Long-term
Shortfall of
51,458Subtotal
2,622,242
deposits
reserve for repair
Buildings,
Depreciation(686,268)
Other
13,678－facilities, etc. deficiency
Subtotal

2,687,379

Buildings,
Depreciation
facilities, etc. deficiency
equivalent
Unearned
Write-down ofrevenueloss on interest
rate swap due tomergerLand
Cost of sales ofland(306,277)(40,687)

Unearnedrevenue

Land
Other

(246,865)

Subtotal(593,831)

Total

2,093,548

equivalent
Write-down ofloss on interest
rate swap due tomergerCost of sales ofland－(19,546)(11,410)(4,792)

Subtotal(722,017)

Total

1,900,225

2．Reasons, related assets and amounts of reversals
Thousands of Yen
Allowance for
Related assets,
temporary
Reasonetc.
difference
adjustment
Land,
Sale and－buildings,
depreciation of(*)
etc.
properties forwhich merger
expenses wererecordedDeferred
Changes in fair
(102,762)
gains
value ofor losses on derivatives
hedges(102,762)
Total

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

(*) The amount of reversal during current period (¥14,266 thousand) is
included in “Depreciation deficiency equivalent” on “1. Reasons, related
assets and amounts of allowance”.

- 25 -

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

Item

Item

Method of reversal

Method of reversal

Buildings,
etc.

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

Buildings,
etc.

Upon depreciation and sale, thecorresponding amounts are scheduled
to be reversed.
Land
Upon sale, etc., the corresponding
amount is scheduled to be reversed.
Buildings,
Upon depreciation and sale, theetc., in trust corresponding amounts are scheduled
to be reversed.
Land in trust Upon sale, etc., the corresponding
amount is scheduled to be reversed.
LeaseholdrightsLeaseholdrights in trust(3) Long-term deposits
In principle, long-term deposits are not reversed.

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

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

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

(8) Notes to Financial Statements(Notes to Balance Sheet)*1. Commitment line agreement① NMF has concluded a commitment line agreement with two lending financial institutions for both previous
period and current period as follows.
Thousands of Yen
Previous period
Current period(Feb. 28, 2022)(Aug. 31, 2022)
Committed line of credit
10,000,000
10,000,000
Balance of used line－－
Balance of unused line
10,000,000
10,000,000② NMF has concluded a commitment line agreement with four lending financial institutions for both previous
period and current period as follows.
Thousands of Yen
Previous period
Current period(Feb. 28, 2022)(Aug. 31, 2022)
Committed line of credit
40,000,000
40,000,000
Balance of used line－－
Balance of unused line
40,000,000
40,000,000- 26 -

*2. Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment
Corporations
Thousands of Yen
Previous period
Current period(Feb. 28, 2022)(Aug. 31, 2022)
50,00050,000*3. Asset offered as collateral and liabilities secured with collateralThousands of Yen
Current period(Aug. 31, 2022)

Previous period(Feb. 28, 2022)
Assets offered as collateral are as follows.

Assets offered as collateral are as follows.

Buildings in trust

3,212,180

Buildings in trust

3,169,322

Land in trust

6,096,368

Land in trust

6,096,368

Structures in trust

4,696

Tools, furniture andfixtures in trust

5,040

Tools, furniture and
3,324

Total

Structures in trust

9,316,569

Liabilities secured by collateral are as follows.

Security deposits from

fixtures in trust
Total

2,938
9,273,670

Liabilities secured by collateral are as follows.
Security deposits fromtenants in trust

726,648

tenants in trust

726,648

Total

726,648

Total

726,648- 27 -

*4. Allowance for temporary difference adjustments
Previous period (from September 1, 2021 to February 28, 2022)
1. Reasons, related assets and amounts

Related assets,
etc.

ReasonInitialamountBalance atthe end of
previous
periodAmortization
25,222,583 14,961,976
of goodwill
Land,
Merger
4,029,135 1,311,646
buildings, etc.
expenses
Loss on interestDeferred gains
rate swaps
or losses onrecognized at
2,867,594
351,354
hedgesthe end of the
fiscal period
Increase –－ 16,624,976
subtotal
Goodwill

Total－ 16,624,976

Allowance
set aside
duringperiod
1,830,223(5,440)－

ReversalduringperiodThousands of Yen
Balance atthe end of Reason for
current
reversal
period－ 16,792,199－

1,306,205－－(154,021)

Changes infair value of
197,332
derivativetransactions

1,824,782(154,021) 18,295,737－

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 intrust, etc.
Land in trust

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

Leasehold rights
Leasehold rights
in trust(3) Deferred gains or losses on hedges
Based on changes in the fair value of derivatives used as hedging instruments, the corresponding amount isscheduled to be reversed.

- 28 -

Current period (from March 1, 2022 to August 31, 2022)
1. Reasons, related assets and amounts

Related assets,
etc.

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

Total－ 18,295,737

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

1,293,629－－(102,762)

Changes infair value of
94,570derivativetransactions

2,093,548(102,762) 20,286,524－

2,093,548(102,762) 20,286,524－

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

(2) Merger expenses
Item

Method of reversal

Buildings, etc.

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

Land

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

Buildings intrust, etc.
Land in trust

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

Leasehold rights
Leasehold rights
in trust(3) Deferred gains or losses on hedges
Based on changes in the fair value of derivatives used as hedging instruments, the corresponding amount isscheduled to be reversed.

- 29 -

(Notes to Statement of Income and Retained Earnings)*1. Breakdown of real estate rental revenues and expenses
Thousands of Yen
Current period
from Mar. 1, 2022
to Aug. 31, 2022

Previous period
from Sep. 1, 2021
to Feb. 28, 2022
A.

Property related revenues
Rental revenues
Rent revenues
Common area charges

32,379,033
2,275,828

Other rental revenues
Parking revenues

629,997

Incidental income
Other miscellaneous revenues
Property related revenues
B.

C.

34,654,862

35,249,227

647,115

1,925,291
147,934

32,975,247
2,273,980

2,249,949
2,703,224

118,189

37,358,086

3,015,254
38,264,482

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

1,829,209
951,283

1,855,012
1,071,906

Property and other taxes

3,246,576

3,313,137

Utility expenses
Casualty insurance

1,584,054
59,873

1,878,814
64,370

Repairs and maintenanceLand rents
Depreciation

1,273,461
177,522
5,609,620

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

Other rental expenses
Property related expenses

1,240,965

Real estate rental profits [A－B]

15,972,567

1,214,97815,972,567

16,652,112

21,385,518

21,612,370*2. Breakdown of gain on sales of real estatePrevious period (from September 1, 2021 to February 28, 2022)
Thousands of Yen
NMF Utsunomiya Building
Proceeds from sales of real estate
Cost of sales of real estate

2,720,000
2,445,354

Other related sales expenses

111,792

Gain on sales of real estate

162,853

Current period (from March 1, 2022 to August 31, 2022)
Thousands of Yen
Ichibancho stear
Proceeds from sales of real estate

5,382,000

Cost of sales of real estate
Other related sales expenses

4,406,579
217,451

Gain on sales of real estate

757,969- 30 -

16,652,112

*3. Breakdown of loss on sales of real estatePrevious period (from September 1, 2021 to February 28, 2022)
Thousands of Yen
Sundai Azamino
Proceeds from sales of real estate

1,200,000

Cost of sales of real estate
Other related sales expenses

1,450,835
49,534

Loss on sales of real estate

300,369

Current period (from March 1, 2022 to August 31, 2022)
Not applicable.
*4.Breakdown of Extraordinary Gain
Previous period (from September 1, 2021 to February 28, 2022)
Not applicable.
Current period (from March 1, 2022 to August 31, 2022)
The ¥155 million related to the donation of building fixtures that belonged to tenants at the time of tenant vacation isrecorded as a gain on donation of fixed assets.
*5.Breakdown of Extraordinary Loss
Previous period (from September 1, 2021 to February 28, 2022)
Not applicable.
Current period (from March 1, 2022 to August 31, 2022)
Losses related to assets damaged by the 2022 Fukushima Earthquake totaling ¥46,519 thousand are recorded as loss on
disaster.

- 31 -

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

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

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

Thousands of Yen
Current period
from Mar. 1, 2022
to Aug. 31, 2022

1,048,702,009

1,059,049,692

10,347,682

8,126,606

1,059,049,692
1,252,960,000

1,067,176,298
1,286,608,958(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 Landport Ome III (¥17,238,207 thousand). The decrease during the previous period is mainly attributable
to the sale of NMF Utsunomiya Building (¥2,445,354 thousand) and Sundai Azamino (¥1,450,835 thousand) as well as
depreciation (¥5,602,175 thousand). The increase during the current period is mainly attributable to the acquisition of
PMO Hamamatsucho II (¥5,559,469 thousand),PROUD FLAT Togoshi-Ginza (¥2,644,993 thousand),PRIME URBAN
Higashi Nakano Court (¥7,292,801thousand). The decrease during the current period is mainly attributable to the sale of
Ichibancho stear (¥4,406,579 thousand) as well as depreciation (¥5,731,074 thousand).
(Note 3) Fair value at the end of the period is the appraisal value or investigation value determined by investigation, found by anoutside real estate appraiser. However, in the previous period, transfer price is used as the fair value for Ichibancho stear ,and the scheduled transfer price is used as the fair value for NRE Higashi-nihonbashi Building. In the current fiscal
period, transfer price is used as the fair value for NRE Higashi-nihonbashi Building (September 15,2022), the scheduledtransfer price is used as the fair value for NRE Higashi-nihonbashi Building (March 15,2023), PRIME URBAN Takaido,
PRIME URBAN Mukojima, PRIME URBAN Nishi Funabashi, PRIME URBAN Chiji Kokan, PRIME URBAN
Maruyama, PRIME URBAN Kita Nijyuyo Jo, PRIME URBAN Aoi, PRIME URBAN Tsurumai.

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

(Notes Concerning Revenue Recognition)
1. Information classifying revenues from contracts with customers
Previous period (from Sep. 1, 2021 to Feb. 28, 2022)
Thousands of Yen

Proceeds from sales of real estate
Utility expense revenues
Other
Total

Revenues from contracts with(Note 1)
customers
3,920,000
1,331,843－
5,251,843- 32 -

Sales to external customers(Note 2)

162,853
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,” andreal estate transfers, which are subject to the “Practical Guidelines Concerning Accounting for the Transferors in Securitization of Real Estate Using
SPCs” of the JICPA Accounting System Committee Report No. 15, are not applicable to the Accounting Standard for Revenue Recognition, and arethus not included in the above amount. Note that the main revenues from contracts with customers are gains on sale of real estate and utilities
expense revenues.
(Note 2) Gains on sale of real estate are recorded as profits/losses on sale of real estate (the amount after deducting real estate disposition costs and otherdisposition costs from gains on sale of real estate) in the statement of income and retained earnings. Since NMF records gains on sale of real estate
as operating revenues and losses on sale of real estate as operating expenses, only the amounts of gains on sale of real estate are described in theabove table.

Current period (from March 1, 2022 to August 31, 2022)
Thousands of Yen

Proceeds from sales of real estate
Utility expense revenues
Other
Total

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

Sales to external customers(Note 2)757,969
1,531,876
36,732,606
39,022,452(Note 1) Leasing business revenues, which are subject to the Corporate Accounting Standard No. 13, “Accounting Standard for Lease Transactions,” andreal estate transfers, which are subject to the “Practical Guidelines Concerning Accounting for the Transferors in Securitization of Real Estate Using
SPCs” of the JICPA Accounting System Committee Report No. 15, are not applicable to the Accounting Standard for Revenue Recognition, and arethus not included in the above amount. Note that the main revenues from contracts with customers are gains on sale of real estate and utilities
expense revenues.
(Note 2) Gains on sale of real estate are recorded as profits/losses on sale of real estate (the amount after deducting real estate disposition costs and otherdisposition costs from gains on sale of real estate) in the statement of income and retained earnings. Since NMF records gains on sale of real estate
as operating revenues and losses on sale of real estate as operating expenses, only the amounts of gains on sale of real estate are described in theabove table.

2. Basic information for understanding revenues from contracts with customers
Previous period (from September 1, 2021 to February 28, 2022)
Refer to the description in the notes concerning matters pertaining to significant accounting policies.
Current period (from Mar 1, 2022 to Aug 31, 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
with cash flows arising from the contracts, and the amounts of revenues which arise from outstanding contracts
with customers as of the end of the accounting period under review and will be recognized in the next accounting
period onwards, as well as the timing to recognize the revenues(1) Balances of contract assets and liabilities
Thousands of Yen
Current period
from Mar. 1, 2022
to Aug. 31, 2022

Previous period
from Sep. 1, 2021
to Feb. 28, 2022
Receivables from contracts with customers (balance asof the beginning of the fiscal period)

363,492372,248

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

372,248497,211

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

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

－

－

－

－

－

－

Contract liabilities (balance as of the beginning of the
fiscal period)
Contract liabilities (balance as of the end of the fiscal
period)- 33 -

(2) Transaction prices allocated to remaining performance obligations
Previous period (from Sep. 1, 2021 to Feb. 28, 2022)
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. This is because NMF has
the right to receive the amounts of consideration, which directly correspond to the value for customers or tenants, from
customers for the portions where the obligations are satisfied before the end of a fiscal period. Accordingly, adopting the
stipulation of item 80-22 (2) of the Accounting Standard for Revenue Recognition, utility expense revenues are not includedin the note on transaction prices allocated to remaining performance obligations.

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

(Notes on Per Unit Information)
Yen
Previous period
from Sep. 1, 2021
to Feb. 28, 2022

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

Net assets per unit

130,827

130,456

Net income per unit

2,625

2,862

(Note 1)

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

(Note 2)

In addition, the diluted net income per unit is not stated, since there are no dilutive investment units.
The following is the basis for calculation of net income per unit.

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

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

12,377,502

13,499,309

Amount not attributable to ordinary unitholders (Thousands of
Yen)

－

－

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

12,377,502

13,499,309

Average number of investment units during period (Units)

4,715,200

4,715,200

Net income (Thousands of Yen)

- 34 -

(Notes on Significant Subsequent Events)
Transfer of the asset(a)NMF sold the following asset after the conclusion of the 14th fiscal period (August 31, 2022).
NRE Higashi-nihonbashi Building● Type of asset
Trust beneficial interest in trust of real estate(Note)● Use
Office● Contract date
March 8, 2022
● Transfer date
September 15, 2022 (Quasi co-ownership of50%)● Transfer price¥2,260 million (Quasi co-ownership of 50%)
● Buyer
Domestic general business company● Impact on 15th fiscal period earnings¥350 million(Scheduled)(b)NMF decided to sell the following asset after the conclusion of the 14th fiscal period (August 31,2022).
NRE Higashi-nihonbashi Building● Type of asset
Trust beneficial interest in trust of real estate(Note)● Use
Office● Contract date
March 8, 2022
● Transfer date(Scheduled)
March 15, 2023 (Quasi co-ownership of 50%)
● Transfer price(Scheduled)¥2,260 million (Quasi co-ownership of 50%)
● Buyer(Scheduled)
Domestic general business company● Impact on 16th fiscal period earnings¥347 million(Scheduled)(Note) At the end of the 14th fiscal period, the asset to be transferred was real estate, but on
September 15, 2022, a trust agreement was concluded and it has become a trust beneficial interestin trust of real estate.
(c)NMF decided to sell the following asset after the conclusion of the October 18, 2022.
Type
of
asset

Use

Contract
date(Sch
eduled)Transferdate(Sch
eduled)Buyer(Scheduled)

PRIME URBAN Takaido
PRIME URBAN Mukojima

Undisclosed

PRIME URBAN Nishi Funabashi
PRIME URBAN Chiji Kokan
PRIME URBAN MaruyamaRealestate

Resi
denti
al

(Note)

October
18, 2022

PRIME URBAN Kita Nijyuyo Jo

October
31, 2022
Undisclosed

PRIME URBAN Aoi(Note)PRIME URBAN Tsurumai

1,310

Impact on 15th
fiscal period
earnings(Scheduled)(¥ million)
222

636

94

967

281

763

92

1,281

382

300

82

257

51

459

78

5,974

1,286

Transfer
price(Scheduled)

Total(Note) Undisclosed, since a consent has not obtained from the scheduled transferee.
The impact of (a), (b) and (c), above, on earnings for the 15th fiscal period (September 1, 2022 to February
28, 2023), 16th fiscal period (March 1, 2023 to August 31, 2023) will be recorded as gain on sales of realestate under operating revenues.
[Disclosure Omissions]
A disclosure of notes concerning Statement of Changes in Net Assets, Statement of Cash Flows, Lease Transactions,
Financial Instruments, Securities, Derivative Transactions, Retirement Benefit Plans, Tax Effect Accounting, Equity Method
Income and Retained Earnings, etc., Transactions with Related Parties, Asset Retirement Obligations and Segment Information is- 35 -

omitted because such disclosure in this summary of financial results is judged to be unnecessary.

- 36 -

(9) Increase (Decrease) in Total Number of Investment Units Issued and Outstanding
The following is the increase (decrease) in unitholders’ capital and total number of investment units
issued and outstanding during the period from the date of incorporation of NMF through the end of the 14th
fiscal period (August 31, 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 type merger

461,120

4,183,130－

161,120(Note 3)－4,183,130

763

161,883(Note 4)－4,183,130

708

162,592(Note 4)－4,183,130

198

162,791(Note 4)132,000

4,315,130

17,572

180,363(Note 5)6,670

4,321,800

887

181,251(Note 6)－

4,321,800

478

181,730(Note 4)－4,321,800

321

182,051(Note 4)

214,760

4,536,560

31,241

213,293(Note 7)

10,7404,547,300

1,562

214,855(Note 8)－4,547,300

91

214,947(Note 4)

159,900

4,707,200

27,845

242,792(Note 9)8,000

4,715,200

1,393

244,185(Note 10)－

4,715,200

122

244,307(Note 4)－

4,715,200

299

244,606(Note 4)－

4,715,200

132

244,739(Note 4)－

4,715,200

154

244,893(Note 4)

October 14, 2016

April 14, 2017

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

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

October 14, 2020

April 14, 2021

October 13, 2021

Reversal of allowancefor temporary difference
adjustments
Reversal of allowancefor temporary difference
adjustments
Reversal of allowancefor temporary difference
adjustments
Public offering
Third party allotment
increase
Reversal of allowancefor temporary difference
adjustments
Reversal of allowancefor temporary difference
adjustments
Public offering
Third party allotment
increase
Reversal of allowancefor temporary difference
adjustments
Public offering
Third party allotment
increase
Reversal of allowancefor temporary difference
adjustments
Reversal of allowancefor temporary difference
adjustments
Reversal of allowancefor temporary difference
adjustments
Reversal of allowancefor temporary difference
adjustments- 37 -

April 19, 2022
(Note 1)
(Note 2)

Reversal of allowancefor temporary difference
adjustments－

4,715,200

102

244,996(Note 4)

Figures have been truncated at the nearest million yen.
NMF was established through the consolidation type merger of the former Nomura Real Estate Master Fund (hereinafter “former NMF”),
Nomura Real Estate Office Fund (hereinafter “NOF”) and Nomura Real Estate Residential Fund (hereinafter” NRF”) on October 1, 2015
(hereinafter “the Merger of the Three REITs”). Upon its establishment, NMF allotted 1 NMF unit per former 1.00 NMF unit, 3.60 NMF units
per 1.00 NOF unit and 4.45 NMF units per 1.00 NRF unit.

(Note 3)On September 1, 2016, as part of the absorption type merger, with NMF as the surviving corporation and TOP REIT, Inc. (hereinafter “TOP”)(Note 4)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.
NMF’s Board of Directors resolved to reverse the allowance for temporary difference adjustments and incorporate the amounts of said

(Note 5)reversals into unitholders’ capital at the Board of Directors meeting on each said date.
NMF issued new investment units through public offering at an issue price of ¥137,474 per unit (issue value: ¥133,125 per unit ) for the
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 ) for the(Note 8)

purpose of procuring funds to acquire new properties.
NMF issued new investment units through third-party allotment at an issue value of ¥145,471 per unit together with the issuance of new
investment units through public offering.

NMF issued new investment units through public offering at an issue price of ¥179,830 per unit (issue value: ¥174,141 per unit ) for the
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(Note 9)investment units through public offering.

- 38 -

3.

Reference Information(1) Investment Status

Subtotal
Deposits and other assets
Total amount of assets

13th fiscal period
14th fiscal period
As of February 28, 2022
As of August 31, 2022
As a percentage
As a percentage
Total amount held
Total amount heldof total amount ofof total amount of(Millions of Yen)
(Millions of Yen)
assets (%))
assets (%))
(Note 2)
(Note 2)
(Note 3)(Note 3)145,01812.2
150,094
12.6
21,282
1.8
21,2591.8
166,301
14.0
171,354
14.4
28,712
2.4
28,595
2.4
18,119
1.5
18,0991.5
46,832
3.9
46,694
3.9
63,533
5.4
63,472
5.3
63,533
5.4
63,472
5.3
134,808
11.4
144,040
12.1
29,883
2.5
29,591
2.5
164,692
13.9
173,632
14.6
3,665
0.3
3,648
0.3
3,665
0.3
3,648
0.3
5,136
0.4
5,136
0.4
5,136
0.4
5,136
0.4
450,16137.9
463,93739.1
259,33021.8
259,160
21.8
50,453
4.2
50,527
4.3
309,78426.1
309,68826.1
80,095
6.7
79,957
6.7
49,537
4.2
45,0363.8
129,63210.9
124,993
10.5
137,866
11.6
137,056
11.5
3,280
0.3
3,267
0.3
141,14711.9
140,324
11.8
25,641
2.2
25,5602.2
25,641
2.2
25,560
2.2
2,683
0.2
2,671
0.2
2,683
0.2
2,671
0.2
608,88851.3
603,23850.8
1,059,049
89.2
1,067,176
89.9
128,370
10.8
120,405
10.1
1,187,420
100.0
1,187,581
100.0

Total amount of liabilities
Total amount of net assets

13th fiscal period
14th fiscal period
As of February 28, 2022
As of August 31, 2022
As a percentage
As a percentage
AmountAmountof total amount ofof total amount of(Millions of Yen)
(Millions of Yen)
assets (%)
assets (%)(Note 4)(Note 4)(Note 3)(Note 3)
570,54248.0
572,45348.2
616,87852.0
615,12851.8

Type of asset

Use

Officeproperties
Retailproperties

Real estate

Logistics
properties
Residential
properties
Hotelproperties
Other
Properties

Officeproperties
Retailproperties
Real estatein trust

Logistics
properties
Residential
properties
Hotelproperties

Area(Note 1)

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

- 39 -

(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. (300 properties) held as of August 31, 2022, (the end of
the 14th fiscal period) by NMF (this real estate and the beneficiary interests of trusts in which realestate properties are the principal trust properties or the real estate that constitutes the underlying assets
thereof are hereinafter referred to as the “assets held at the end of the 14th fiscal period”). Unlessotherwise stated, the figures in the tables below are the figures as of August 31, 2022.

- 40 -

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 14th fiscal period.
Number of properties

300
2 (Note 1)

2,173,632.71

Gross leasable area (m )2 (Note 2)

2,145,632.10

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

1,352

Total of all contracted rent (Thousands of Yen)

(Note 4)

5,974,821(Note 1) The sum total of the “leasable area” of each of the assets held at the end of the 14th fiscal period. “Leasable area” is the sum total areaof office buildings, retail facilities, logistics facilities, residential facilities, or hotels etc. leasable in each asset (including the area ofcommon-use space, etc., if leased). Leasable area is calculated based not on that presented in the registry, but the area stated in the lease
contract and the area calculated based on building completion drawings, etc. Accordingly, the leasable area may not be the same as thefloor area based on that presented in the registry and may exceed the floor area. In the case of land with leasehold right, the land area
based on that presented in the registry is used as contracted area. For the Shinjuku Nomura Building, NEC Head Office Building andMusashiurawa 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 ratioof the common areas, the leasable area is calculated as the building’s overall leasable area multiplied by the ownership ratio of thecommon areas. For PMO Hatchobori Shinkawa and PROUD FLAT Togoshi-ginza, upon the master lease agreement, the rent paid toeach compartmentalized owner is the sum of (i) the rent to be earned from the leasable exclusive area of the entire building (excluding
the exclusive area subject to the selfuse by other compartmentalized owners; the same shall apply hereinafter for PMO Hatchobori
Shinkawa and PROUD FLAT Togoshi-ginza) multiplied by the ratio of the area of the exclusive area owned by eachcompartmentalized owner, and (ii) the rent to be earned from the common area, etc. of the building multiplied by the share interest inownership of the common area, etc.. Therefore, the leasable area of PMO Hatchobori Shinkawa and PROUD FLAT Togoshi-ginza is
the sum of (i) the leasable area of the exclusive area owned by NMF and (ii) the leasable area of the common area, etc. of the entire
building multiplied by NMF’s share of ownership interest of the common area.
(Note 2) The sum total of “leased area” of each of the assets held at the end of the 14th fiscal period. “Leased area” is the area that is actuallyleased to an end-tenant (The area stated in the lease contract; provided, however, that such be limited to the area of office properties,
retail properties, logistics properties, residential properties, or hotel properties etc. (if all rental units are collectively leased, then thearea of the entire rental units) and not include the leased area of parking space, etc. However, if the master lessee has a rent-guaranteed
master lease for some or all rental units, the space is included in leased area regardless of whether or not there is a lease agreement withan end-tenant.) in each asset. In the case of land with leasehold right, the leased area of the land is shown. For the Shinjuku Nomura
Building, NEC Head Office Building and Musashiurawa Shopping Square, the leased area is the area calculated by multiplying thebuilding’s overall leased area by the quasi co-ownership ratio of the beneficial interest in real estate trust owned by NMF as of the endof 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 areamultiplied by the ownership ratio of the common areas. For PMO Hatchobori Shinkawa, upon the master lease agreement, the rent paid
to each compartmentalized owner is the sum of (i) the rent to be earned from the leasable exclusive area of the entire building
multiplied by the ratio of the area of the exclusive area owned by each compartmentalized owner, and (ii) the rent to be earned from thecommon area, etc. of the building multiplied by the share interest in ownership of the common area, etc.. Therefore, the leased area of
PMO Hatchobori Shinkawa is the sum of (i) the leased area of the leasable exclusive area of the entire building multiplied by the ratioof 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 14th fiscal period. In the calculation of “numberof tenants,” when some or all rental units are collectively leased for the purpose of subleasing and the lessee in the lease agreement(master lease agreement) has concluded an agreement with an end-tenant (sublessee that is the actual user) for subleasing the rental
units, the lessee of the master lease agreement is counted as one tenant. However, in the case of assets with a so-called pass-throughmaster lease agreement, where the rent received from the lessee in the master lease agreement is the same amount as the rent that thelessee receives from the end-tenant, the total number of end-tenants is shown. In addition, if multiple rental units in a specific asset areleased to a specific tenant, this is counted as one tenant for the asset and, if multiple assets are leased to a specific tenant, these arecounted separately and the total of that number of tenants is shown. For residential facilities or residential portions of “other” sector
facilities, when some or all rental units are collectively leased for the purpose of subleasing and the lessee in the lease agreement(master lease agreement) has concluded an agreement with an end-tenant for subleasing the rental units, regardless of pass-throughmaster lease agreement, the lessee of the master lease agreement is counted as one tenant, and the total number of tenants for thebuilding as whole is shown.
(Note 4) The total amount of “total contracted rent” for August 2022 of each of the assets held at the end of the 14th fiscal period (amounts less- 41 -

than one thousand are truncated). “Total contracted rent” for August 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 August 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 leaseagreement. If common-use space, etc. is leased based on the lease agreement, the rent for such is included. In addition, if the master
lessee has a rent-guaranteed master lease for some or all rental units, the rent for the space is based on the rent, etc., in the leaseagreement concluded with the master lessee.). Furthermore, regarding tenants who have been exempt from rent payment for a certain
period of time in their agreements, such exemption period is not considered in the table above, and the rent is calculated based on themonthly rent and common area charges payable immediately after the exemption period ends. In addition, the standard level of rent isused for tenants with sales-based rent and for tenants with variable rent including cases in which a part of rent is variable rent. For the
Shinjuku Nomura Building, NEC Head Office Building and Musashiurawa Shopping Square, the total contracted rent is calculated bymultiplying the building’s overall rent revenues by the quasi co-ownership ratio of the beneficial interest in real estate trust owned by
NMF as of the end of the fiscal period. For the NRE Tennozu Building, the the total contracted rent is calculated as the building’s
overall rent revenues multiplied by the ratio of the common areas that NMF owns through the trustee. For PMO Hatchobori Shinkawa
and PROUD FLAT Togoshi-ginza, the total contract rent is calculated by summing (i) the rent revenues earned from the leasable
exclusive area of the entire building multiplied by the ratio of the area of the exclusive area owned by NMF, and (ii) the rent revenues
earned from the common area, etc. of the building multiplied by NMF’s share of ownership interest of the common area, etc..

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

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

August 31, 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)August 31, 2022
(end of 14th fiscal
period)

99.1

98.8

98.1

98.7

98.7

- 42 -

B. Price and Investment Share
The following is an overview of the assets held at the end of the 14th fiscal period (acquisition price,
carrying amount, opinion of value at end of period, investment share and appraiser).

Use

Area

GreaterTokyo
area

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

Investment
share
(%)
(Note 4)

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

Shinjuku Nomura Building (Note 5)

43,90046,88351,800

4.0

NRE Tennozu Building

20,50020,59821,700

1.7

Kojimachi Millennium Garden

26,70026,43530,2002.3

10,00010,12913,400

1.0

NMF Shibuya Koen-dori Building

10,40010,512

10,5000.8

Secom Medical Building

11,10010,567

13,000

1.0

NMF Shiba Building

7,040

7,104

7,380

0.6

Nishi-Shinjuku Showa Building

8,140

8,186

8,040

0.6

NRE Shibuya Dogenzaka Building

5,310

5,358

5,940

0.5

Iwamoto-cho Toyo Building

4,050

4,109

4,990

0.4

NMF Surugadai Building

4,690

4,688

5,260

0.4

PMO Nihonbashi Honcho

4,320

4,029

4,930

0.4

PMO Nihonbashi Kayabacho

5,010

4,718

6,680

0.5

NMF Gotanda Ekimae Building

4,430

4,573

5,440

0.4

NRE Higashi-nihonbashi Building

3,570

3,752

4,350

0.3

PMO Akihabara

4,240

3,990

5,670

0.4

Hatchobori NF Building

2,480

2,428

2,610

0.2

NMF Kanda Iwamoto-cho Building

4,160

4,189

4,620

0.4

NMF Takanawa Building

2,830

2,864

3,530

0.3

PMO Hatchobori

2,880

2,664

3,530

0.3

PMO Nihonbashi Odenmacho

2,210

2,072

3,090

0.2

PMO Higashi-nihonbashi

1,690

1,533

2,010

0.2

NRE Ueno Building

6,470

6,564

7,270

0.6

NF Hongo Building.

4,890

4,897

5,230

0.4

Crystal Park Building

3,390

3,292

3,290

0.3

NMF Kichijoji Honcho Building

1,780

1,838

2,240

0.2

Faret Tachikawa Center Square

3,850

3,832

4,520

0.4

Higashiguchi

7,830

7,992

9,650

0.8

Japan Valuers Co., Ltd.

Nishiguchi

5,460

5,559

8,610

0.7

NMF Shin-Yokohama Building

2,620

2,732

2,950

0.2

PMO Tamachi

6,210

6,055

8,880

0.7

PMO Ginza Hatchome

3,970

3,887

5,440

0.4

PMO Shibakoen

3,900

3,797

5,530

0.4

NEC Head Office Building (Note 6)

44,10044,556

48,900

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.

NMF
Shinjuku
Building

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

Property nameNMF
Kawasaki
Building
NMF
Yokohama
Building

Minamiguchi- 43 -

Use

Area

GreaterTokyo
area

Office

Other
areas

Office subtotal

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

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

Investment
share
(%)
(Note 4)

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

Harumi Island Triton Square OfficeTower Y18,20017,87817,400

1.4

NMF Aoyama 1-chome Building

10,40010,567

13,900

1.1

NMF Takebashi Building

8,330

8,528

9,140

0.7

Harumi Island Triton Square OfficeTower Z

8,180

7,994

8,480

0.7

NMF Kayabacho Building

6,070

6,031

8,350

0.6

NMF Shinjuku EAST Building

5,710

5,789

6,600

0.5

NMF Shiba-Koen Building

3,620

3,756

4,730

0.4

NMF Ginza 4-chome Building

1,850

1,981

2,270

0.2

Faret East Building

1,850

1,818

2,150

0.2

PMO Shinnihonbashi

4,440

4,343

5,580

0.4

PMO Hirakawacho

3,410

3,354

4,340

0.3

PMO Nihonbashi Mitsukoshi-mae

4,310

4,289

5,910

0.5

PMO Shibadaimon

2,130

2,123

2,650

0.2

PMO Tamachi Ⅱ

10,90010,83013,100

1.0

PMO Hatchobori Shinkawa

3,805

3,772

4,380

0.3

PMO Hatchobori Ⅲ

2,880

2,869

3,350

0.3

PMO Ochanomizu

3,890

3,867

4,700

0.4

PMO Akihabara Kita

8,450

8,395

9,770

0.8

PMO Higashi-Shinbashi

4,730

4,737

5,610

0.4

PMO Hamamatsucho

4,380

4,379

5,280

0.4

PMO Hamamatsucho II

5,500

5,543

6,100

0.5

Sapporo North Plaza

6,250

6,700

9,270

0.7

NRE Sapporo Building

4,140

3,651

5,570

0.4

NMF Sendai Aoba-dori Building

2,030

2,178

2,620

0.2

NMF Nagoya Fushimi Building

2,240

1,957

2,650

0.2

NMF Nagoya Yanagibashi Building

2,280

2,516

2,260

0.2

Japan Valuers Co., Ltd.
Japan Real
Institute

EstateOmron Kyoto Center Building

18,30018,237

20,200

1.6

SORA Shin-Osaka 21

12,10012,00912,900

1.0

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

NRE Osaka Building

6,100

7,735

7,680

0.6

NRE Nishi-Umeda Building

3,450

3,641

3,840

0.3

NRE Yotsubashi Building

4,000

4,441

5,140

0.4

NRE Hiroshima Building

2,280

2,455

2,920

0.2

NMF Hakata Ekimae Building

4,210

4,237

6,120

0.5

NMF Tenjin-Minami Building

2,230

2,025

3,030

0.2

476,765

481,042559,170

43.5- 44 -

Use

RetailArea

GreaterTokyo
area

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

Property name

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

Investment
share
(%)
(Note 4)

Appraiser

Yokosuka More’s City

13,64013,73615,300

1.2

The Tanizawa Sogo
Appraisal Co., Ltd.

Recipe SHIMOKITA

10,407

10,175

10,800

0.8

Japan Valuers Co., Ltd.

Kawasaki More’s

6,080

6,553

8,500

0.7

EQUINIA Shinjuku

4,260

4,266

5,160

0.4

EQUINA Ikebukuro

3,990

4,001

4,550

0.4

covirna machida

3,440

3,821

4,200

0.3

Nitori Makuhari

3,080

2,617

3,950

0.3

Konami Sports Club Fuchu

2,730

2,520

3,390

0.3

FESTA SQUARE

2,600

2,168

3,580

0.3

GEMS Shibuya

2,490

2,338

2,790

0.2

EQUINIA Aobadai

1,560

1,557

2,720

0.2

Megalos Kanagawa

1,000

944

1,550

0.1

Mitsubishi Motors Meguro (Land)

2,740

2,764

3,460

0.3

Mitsubishi Motors Chofu (Land)

1,760

1,776

1,740

0.1

Mitsubishi Motors Nerima (Land)

1,240

1,251

1,500

0.1

Mitsubishi Motors Kawasaki (Land)

950

959

1,300

0.1

Mitsubishi Motors Takaido (Land)

850

859

859

0.1

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

762

770

880

0.1

800

808

916

0.1

Mitsubishi Motors Setagaya (Land)

770

779

1,190

0.1

Mitsubishi Motors Sekimachi (Land)

600

606

740

0.1

Mitsubishi Motors Higashiyamato(Land)
Mitsubishi Motors Motosumiyoshi(Land)
WelciaKawagoe
Shinmeicho(Land)

450

455

537

0.0

370

375

425

0.0

350

355

438

0.0

Mitsubishi Motors Edogawa (Land)

200

204

179

0.0

Mitsubishi Motors Sayama (Land)

160

163

188

0.0

NRE Kichijoji Building

10,41010,102

11,400

0.9

GEMS Ichigaya

2,080

2,017

2,120

0.2

Sagamihara Shopping Center

6,840

6,753

7,550

0.6

2,720

2,538

2,820

0.2

Summit Store Naritahigashi (Land)

700

747

801

0.1

GEMS Daimon

2,060

1,989

2,030

0.2

GEMS Kanda

1,500

1,454

1,440

0.1

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

Summit Store Mukodaicho

5,100

5,035

5,330

0.4

Japan Valuers Co., Ltd.

GEMS Shinbashi

2,810

2,802

2,690

0.2

GEMS Kayabacho

2,594

2,549

2,660

0.2

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

Musashiurawa(Note 6)

Shopping

Square- 45 -

Use

Property nameArea

GreaterTokyo
area

Retail
Other
areas

Other
areas
Logistics subtotal

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

Investment
share
(%)
(Note 4)

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

Summit Store Honamanuma

2,160

2,153

2,960

0.2

GEMS Shin-Yokohama

1,820

1,765

1,840

0.1

GEMS Sangenjaya

1,815

1,809

1,790

0.1

Universal CityWalk Osaka

17,63917,041

18,300

1.4

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

Izumiya SC Senrioka (Note 8)

8,930

8,474

11,700

0.9

Izumiya SC Yao (Note 8)

4,406

3,978

5,630

0.4

Izumiya SC Obayashi (Note 8)

3,020

3,123

3,850

0.3

EQUINIA Aobadori

1,640

1,274

1,830

0.1

MEL Building

1,060

1,046

1,200

0.1

nORBESA

8,500

8,700

8,440

0.7

Nakaza Cui-daore Building

11,60012,1489,760

0.8Japan Valuers Co., Ltd.

NMF Kobe Myodani Building

3,560

3,580

3,680

0.3

Japan Valuers Co., Ltd.

GEMS Namba

3,800

3,767

4,310

0.3

JLL Morii Valuation &Advisory K.K.

174,044

171,688

194,973

15.2

Landport Urayasu

17,40015,77623,9001.9

Landport Itabashi

15,71014,381

21,6001.7

Landport Kawagoe

13,70011,50819,4001.5

Landport Atsugi

11,4109,827

13,300

1.0

Sagamihara Tana Logistics Center

10,6009,490

13,800

1.1

Sagamihara Onodai Logistics Center

8,700

7,976

12,600

1.0

Landport Hachioji

8,250

7,057

11,1000.9

Landport Kasukabe

7,340

6,037

9,410

0.7

Atsugi Minami Logistics Center B
Tower

4,590

4,027

6,490

0.5

Hanyu Logistics Center

3,810

3,188

4,980

0.4

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

3,750

3,511

4,860

0.4

2,830

2,724

3,860

0.3

2,690

2,494

3,790

0.3

Kawaguchi Ryoke Logistics Center

10,790

10,23814,6001.1

Landport Kashiwa Shonan II

10,80010,475

12,100

0.9

Japan Valuers Co., Ltd.

Landport Kashiwa Shonan I

9,900

9,572

11,600

0.9

Japan Valuers Co., Ltd.

Landport Hachioji II

9,230

9,266

11,500

0.9

Japan Valuers Co., Ltd.

Landport Iwatsuki

6,090

5,997

6,870

0.5

Japan Valuers Co., Ltd.

Landport Ome I

13,64013,521

15,200

1.2

Japan Valuers Co., Ltd.

Landport Higashi-Narashino

11,872

11,667

16,800

1.3

Japan Valuers Co., Ltd.
Japan Valuers Co., Ltd.

Retail subtotal

GreaterTokyo
Logistarea
ics

Acquisition price Carrying amount(Millions of Yen) (Millions of Yen)
(Note 1)
(Note 2)The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Japan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
JLL Morii Valuation &Advisory K.K.

Landport Ome II

14,62014,63916,6001.3

Landport Ome III

17,00017,147

19,400

1.5

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

Hirakata Kuzuha Logistics Center

3,460

3,267

4,330

0.3

218,182

203,796

278,090

21.6- 46 -Use

Area

Investment
share
(%)
(Note 4)

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

3,400

3,163

3,860

0.3

PROUD FLAT Yoyogi Uehara

989

944

1,070

0.1

PROUD FLAT Hatsudai

713

676

764

0.1

750

699

752

0.1

PROUD FLAT Gakugei Daigaku

746

690

907

0.1

PROUD FLAT Meguro Gyoninzaka

939

870

1,120

0.1

PROUD FLAT Sumida Riverside

2,280

2,055

2,800

0.2

PROUD FLAT Kagurazaka

1,590

1,445

1,750

0.1

PROUD FLAT Waseda

1,110

1,003

1,260

0.1

932

849

1,080

0.1

PROUD FLAT Sangen Jaya

1,190

1,076

1,310

0.1

PROUD FLAT Kamata

1,160

1,016

1,330

0.1

PROUD FLAT Kamata II

3,320

2,964

3,530

0.3

PROUD FLAT Shinotsuka

623

554

571

0.0

PROUD FLAT Kiyosumi Shirakawa

928

827

1,050

0.1

PROUD FLAT Monzen Nakacho II

652

590

657

0.1

PROUD FLAT Monzen Nakacho I

1,030

914

1,000

0.1

PROUD FLAT Fujimidai

1,470

1,330

2,000

0.2

PROUD FLAT Asakusa Komagata

1,920

1,689

2,500

0.2

PROUD FLAT Yokohama

2,090

1,869

2,520

0.2

PROUD FLAT Kamioooka

2,710

2,423

3,010

0.2

PROUD FLAT Tsurumi II

1,650

1,464

2,120

0.2

PRIME URBAN Azabu Juban

1,100

1,096

1,080

0.1

PRIME URBAN Akasaka

938

920

1,050

0.1

PRIME URBAN Tamachi

972

915

1,080

0.1

PRIME URBAN Shibaura LOFT

1,830

1,680

2,090

0.2

Japan Valuers Co., Ltd.

PRIME URBAN Yoyogi

359

340

347

0.0

PRIME URBAN Ebisu II

1,140

1,101

1,620

0.1

PRIME URBAN Bancho

1,090

1,045

1,170

0.1

PRIME URBAN Chiyoda Fujimi

679

648

680

0.1

PRIME URBAN Iidabashi

2,040

1,896

1,990

0.2

PRIME URBAN Ebisu

1,260

1,238

1,400

0.1

PRIME URBAN Naka Meguro

1,410

1,354

1,520

0.1

PRIME URBAN Gakugei Daigaku

775

722

905

0.1

PRIME URBAN Senzoku

474

447

521

0.0

PRIME URBAN Meguro Riverside

414

377

445

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

2,770

3,320

0.3

PROUD
Kawadacho

GreaterTokyo
area

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

PROUD FLAT Shirokane Takanawa

PROUD
Sakuragaoka

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

Property name

FLAT

FLAT
(Note 7)

Shibuya

Shinjuku- 47 -

Japan Valuers Co., Ltd.

Use

Resid
entialArea

GreaterTokyo
area

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

Property name

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

Investment
share
(%)
(Note 4)

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

PRIME URBAN Meguro Aobadai

1,310

1,246

1,860

0.1

PRIME URBAN Gakugei Daigaku
II

1,080

1,024

1,430

0.1

PRIME URBAN Naka Meguro II

2,850

2,800

3,700

0.3

PRIME URBAN Kachidoki

2,570

2,578

2,500

0.2

PRIME URBAN Shinkawa

2,100

2,106

2,590

0.2

Japan Valuers Co., Ltd.

PRIME
URBAN
Yokoyamacho
PRIME
URBAN
HamachoNihonbashi

4,220

3,875

4,970

0.4

Japan Valuers Co., Ltd.

Nihonbashi

1,550

1,453

2,120

0.2

Japan Real
Institute

PRIME URBAN Hongo Ikizaka

557

511

638

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Hakusan

866

764

953

0.1

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

EstatePRIME URBAN Yotsuya Gaien
Higashi

1,490

1,432

1,550

0.1

PRIME URBAN Nishi Shinjuku I

1,090

1,015

1,340

0.1

PRIME URBAN Nishi Shinjuku II

885

810

986

0.1

PRIME
URBAN
Naitomachi

430

420

484

0.0

PRIME URBAN Nishi Waseda

421

380

494

0.0

PRIME URBAN Shinjuku Ochiai

594

597

624

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Mejiro

1,430

1,354

1,810

0.1

PRIME URBAN Kagurazaka

2,900

2,669

3,870

0.3

PRIME URBAN Sangen Jaya III

718

708

682

0.1

PRIME
URBAN
Karasuyama

717

723

707

0.1

PRIME URBAN Sangen Jaya

724

672

794

0.1

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

PRIME
URBAN
Minami
Karasuyama
PRIME
URBAN
Karasuyama
Galleria

667

607

798

0.1

Japan Valuers Co., Ltd.

549

500

623

0.0

PRIME URBAN Karasuyama Court

338

310

384

0.0

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

PRIME URBAN Chitose Funabashi

746

685

761

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Yoga

1,390

1,291

1,820

0.1

PRIME URBAN Shinagawa Nishi

494

505

461

0.0

PRIME URBAN Osaki

1,860

1,756

2,070

0.2

PRIME URBAN Oimachi II

1,040

1,113

1,170

0.1

PRIME URBAN Yukigaya

951

932

761

0.1

PRIME URBAN Omori

905

828

920

0.1

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

PRIME
URBAN
Denenchofu
Minami
PRIME
URBAN
Nagahara
Kamiikedai
PRIME
URBAN
NakanoKamitakada

774

696

681

0.1

Japan Valuers Co., Ltd.

1,720

1,630

2,030

0.2

Japan Real
Institute

498

448

553

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Takaido

1,060

1,034

873

0.1

PRIME URBAN Nishi Ogikubo

414

393

462

0.0

PRIME URBAN Nishi Ogikubo II

1,790

1,716

2,160

0.2

PRIME URBAN Otsuka

730

666

767

0.1

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

Shinjuku

Chitose- 48 -

EstateUse

Area

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

Property nameGreaterTokyo
area

Investment
share
(%)
(Note 4)

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

PRIME URBAN Komagome

437

438

437

0.0

PRIME URBAN Ikebukuro

3,800

3,505

5,050

0.4

PRIME URBAN Monzen Nakacho

2,420

2,240

2,750

0.2

PRIME URBAN Kameido

779

691

831

0.1

PRIME URBAN Sumiyoshi

632

567

675

0.1

PRIME URBAN Mukojima

528

512

501

0.0

PRIME URBAN Kinshi Koen

1,290

1,133

1,310

0.1

PRIME URBAN Kinshicho

758

688

784

0.1

PRIME URBAN Hirai

722

652

765

0.1

PRIME URBAN Kasai

640

571

682

0.1

PRIME URBAN Kasai II

981

855

990

0.1

PRIME URBAN Kasai East

1,140

1,007

1,350

0.1

1,080

963

1,360

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Asakusa

384

377

342

0.0

PRIME URBAN Machiya South
Court

1,910

1,807

2,340

0.2

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

PRIME URBAN Musashi Koganei

1,910

1,939

1,950

0.2

Japan Valuers Co., Ltd.

0.1

Japan Valuers Co., Ltd.

Itabashi

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

1,280

1,308

1,420

PRIME URBAN Koganei Honcho

791

735

906

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Kumegawa

1,520

1,304

1,640

0.1

Japan Real
Institute

PRIME URBAN Musashi Kosugi
comodo

1,940

1,923

2,470

0.2

Japan Valuers Co., Ltd.

PRIME URBAN Kawasaki

962

955

1,080

0.1

Japan Valuers Co., Ltd.

0.1

Japan Valuers Co., Ltd.
Japan Real
InstituteJapan Real
InstituteJapan Real
InstituteJapan Real
InstituteJapan Real
InstituteJapan Real
InstituteJapan Real
InstituteJapan Real
Institute

EstatePRIME URBAN Shinyurigaoka

1,020

917

1,330

PRIME URBAN Tsurumi Teraya

493

489

497

0.0

PRIME URBAN Urayasu

804

734

1,000

0.1

PRIME URBAN Gyotoku I

633

590

671

0.1

PRIME URBAN Gyotoku II

730

683

743

0.1

PRIME URBAN Gyotoku Ekimae

488

436

570

0.0

PRIME URBAN Gyotoku Ekimae II

469

446

641

0.0

PRIME URBAN Gyotoku III

747

714

1,030

0.1

PRIME URBAN Nishi Funabashi

761

647

958

0.1

PRIME URBAN Kawaguchi

1,580

1,452

1,790

0.1

Japan Valuers Co., Ltd.

PROUD FLAT Hatchobori

920

905

1,250

0.1

PROUD FLAT Itabashi Honcho

720

686

967

0.1

Japan Real
InstituteJapan Real
Institute

PRIME URBAN Meguro Mita

1,058

1,108

1,140

0.1

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

Fukasawa House Towers H&I

7,140

6,953

8,460

0.7

PRIME URBAN Toyosu

5,290

4,950

6,100

0.5

2,850

2,738

3,340

0.3

1,320

1,246

1,430

0.1

PRIME
URBAN
Kayabacho
PRIME URBAN Yoga II

Nihonbashi- 49 -

EstateEstateEstateEstateEstateEstateEstateEstateEstateEstateUse

Area

Greater
Tokyo
area

Resid
ential

Other
areas

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

Property name

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

Investment
share
(%)
(Note 4)

Appraiser

PRIME URBAN Musashi Koganei
II
PRIME URBAN Gakugei daigaku
parkfront

1,310

1,220

1,540

0.1

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

1,300

1,357

1,480

0.1

PROUD FLAT Omori Ⅲ

1,110

1,101

1,450

0.1

PROUD FLAT Kinshicho

785

771

1,040

0.1

PROUD FLAT Sangenjaya II

2,750

2,752

3,350

0.3

PROUD FLAT Sotkanda

2,280

2,290

2,890

0.2

PROUD FLAT Noborito

1,216

1,212

1,530

0.1

PROUD FLAT Yoyogi Hachiman

966

973

1,210

0.1

PROUD FLAT Nakaochiai

844

847

994

0.1

PROUD FLAT Shibuya Tomigaya

3,960

4,010

4,930

0.4

PROUD FLAT Miyazakidai

1,390

1,430

1,620

0.1

PROUD FLAT Asakusabashi III

1,230

1,261

1,340

0.1

PROUD FLAT Togoshi-Koen

2,580

2,645

2,820

0.2

PROUD FLAT Togoshi-Ginza

2,550

2,633

2,700

0.2

PRIME URBAN Higashi Nakano
Court

7,020

7,268

8,250

0.6

PROUD FLAT Itsutsubashi

652

545

705

0.1

PROUD FLAT Kawaramachi

735

608

554

0.0

PROUD FLAT Shin Osaka

1,620

1,360

2,110

0.2

PRIME URBAN Kita Juyo Jo

274

236

291

0.0

PRIME URBAN Odori Koen I

502

430

540

0.0

PRIME URBAN Odori Koen II

334

290

333

0.0

PRIME URBAN Kita Juichi Jo

547

462

580

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Miyanosawa

475

396

482

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Odori Higashi

394

335

416

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Chiji Kokan

249

206

252

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Maruyama

229

195

215

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Kita Nijuyo Jo

437

363

456

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Sapporo Idaimae

616

521

631

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Sapporo Riverfront

4,480

3,915

4,740

0.4

Japan Valuers Co., Ltd.

PRIME URBAN Kita Sanjo Dori

1,730

1,479

1,950

0.2

Japan Valuers Co., Ltd.

1,140

987

971

0.1

Japan Valuers Co., Ltd.

466

388

346

0.0

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

PRIME
IcchomeURBAN

Nagamachi

PRIME URBAN Yaotome Chuo
PRIME
URBAN
AmamiyaTsutsumidori

949

925

1,010

0.1

PRIME URBAN Aoi

712

640

679

0.1

PRIME URBAN Kanayama

553

472

581

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Tsurumai

1,020

851

1,020

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Kamimaezu

1,590

1,385

1,670

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Izumi

3,770

3,285

3,890

0.3

Japan Valuers Co., Ltd.

- 50 -

Use

Area
PRIME
HonmachiResidential

Other
areas

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

Property name
URBAN

Sakaisuji

Other
areas

Other

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.

2,290

0.2

PRIME URBAN Hakata

588

513

645

0.1

PRIME URBAN Yakuin Minami

265

229

305

0.0

PRIME URBAN Kashii

398

331

287

0.0

PRIME URBAN Hakata Higashi

622

529

485

0.0

PRIME URBAN Chihaya

604

528

522

0.0

Serenite Shinsaibashi Grande

5,567

5,602

6,240

0.5

211,617

199,192

241,465

18.8

Hotel Vista Sapporo Odori

3,600

3,648

3,740

0.3

Japan Valuers Co., Ltd.

Comfort Inn Naha Tomari Port

2,650

2,671

2,520

0.2

Japan Valuers Co., Ltd.

6,250

6,320

6,260

0.5

4,900

5,136

5,460

0.4

4,900

5,136

5,460

0.4

1,091,759

1,067,176

1,285,418

100.0

Ryotokuji
University
UrayasuCampus (Land)

Other subtotal
Total(Note 1)

Appraiser

1,572

Hotel subtotal
GreaterTokyo
area

Investment
share
(%)
(Note 4)

1,810

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

Shin-

Japan Real
Institute

Estate“Acquisition Price” refers to the following. Of the assets succeeded as a result of the merger of three REITs, the appraisal value as of September 30,
2015 for NRE Shibuya Dogenzaka Building and as of April 30, 2015 for other assets succeeded from NOF; and the appraisal value as of September
30, 2015 for PRIME URBAN Shinyurigaoka and as of May 31, 2015 for other assets succeeded from NRF are recorded as said assets’ respective
acquisition prices. Furthermore, the appraisal value as of March 31, 2016 or April 1, 2016 for other assets succeeded from TOP are recorded as said

assets’ respective acquisition prices. For all other assets, “Acquisition price” indicates the amount, excluding the various expenses required to acquire
the property, including transaction brokerage fees, taxes and public dues, etc. (the amount of transaction payment for real estate, etc., described in thesales agreement).
(Note 2)“Carrying amount” is the sum total amount of the acquisition price (including various expenses required for the acquisition) of land, buildings,

structures, tools, furniture and fixtures, construction in progress, and leasehold rights (including these assets in trust), less accumulated depreciation.
(Note 3)

“Opinion of value at end of period” is the appraisal or investigation value provided by the respective real estate appraiser (the value calculated by therespective real estate appraiser with the date of the 14th fiscal period-end (August 31, 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 orinvestigation value, depending on the real estate appraiser conducting the appraisal and the method or timing of the appraisal. In addition, the appraisalof real estate is not a guarantee or promise of the possibility of transactions at present or in the future at the appraised value.
Furthermore, the cost approach and income approach (direct capitalization approach and discounted cash flow approach) are used in appraisal
calculations. The appraisal value is determined by the income approach if the subject real estate’s price is estimated with an emphasis on investment
profitability in the market and it is seen as an investment target for qualified institutional investors, etc. The value indicated by the cost approach isused as an index to verify the value indicated by the income approach.
The “direct capitalization approach” is a method where the net revenue in a certain period is capitalized by the capitalization rate. It is a method ofseeking the value indicated by the income approach (a method of seeking the estimated value of real estate by seeking the sum of the present value ofthe net revenue the real estate is expected to generate in the future).
The “discounted cash flow (DCF) approach” is a method where the net income and terminal value arising in multiple successive periods are

discounted to present value according to their periods and totaled. It is also a method of seeking the value indicated by the income approach.
(Note 4)

“Investment share” is the period-end opinion of value of the respective asset as a percentage of the total amount of the period-end opinion of value of(Note 5)

NMF holds quasi co-ownership of 50.1 of beneficial interest in real estate. For the opinion of value and carrying price in the table above, price of this(Note 6)

NMF holds quasi co-ownership of 50.0 of beneficial interest in real estate. For the opinion of value and carrying price in the table above, price of thisthe entire portfolio (300 properties in total). The figures are rounded to the first decimal place. Accordingly, the sum total may not be exactly 100.0.
quasi co-ownership interest ratio is stated for opinion of value and carrying price.
quasi co-ownership interest ratio is stated for opinion of value and carrying price.
(Note 7)

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

NMF changed the name of the following portfolio properties as of April 19, 2022.

- 51 -

Use of Property
RetailNew Name

Former Name

Izumiya SC Senrioka

Izumiya Senrioka

Izumiya SC Yao

Izumiya Yao

Izumiya SC Obayashi

Izumiya Obayashi- 52 -

C. Status of Capital Expenditures(a)

Schedule of Capital Expenditures
Of the scheduled amount of capital expenditures associated with renovation and other work
planned (or completed) as of the date of this document’s publication for the assets held at the endof the 14th fiscal period, the following are the major capital expenditures. Please note that thescheduled construction cost listed below include the portion charged to expenses in accounting.

Name of real estate, etc.
(Location)

Sapporo North Plaza(Sapporo City, Hokkaido
NRE Sapporo Building(Sapporo City, Hokkaido)
NRE Sapporo Building(Sapporo City, Hokkaido)
NRE Sapporo Building(Sapporo City, Hokkaido)
PRIME URBAN Meguro Aobadai(Meguro Ward, Tokyo)
PRIME URBAN Omori(Ota Ward, Tokyo)
PRIME URBAN Yaotome Chuo
(Sendai City, Miyagi)
PRIME URBAN Kita Juyo Jo(Sapporo City, Hokkaido)
PRIME URBAN Izumi(Nagoya City, Aichi)

PurposeScheduled period

Renewal of air conditioner
system (phase IV/IV)
Renewal of outdoor AC units(phase I/III)
Renewal of outdoor AC units(phase II/III)
Renewal of outdoor AC units(phase III/III)

From Sep. 2022
To Nov. 2022
From Apr. 2022
To Nov. 2022
From Dec. 2022
To Jul. 2023
From Aug. 2023
To Nov. 2023
From Jul. 2022
To Nov. 2022
From Aug. 2022
To Dec. 2022
From Sep. 2022
To Feb. 2023
From Aug. 2022
To Nov. 2022
From Aug. 2022
To Dec. 2022

Repair of exterior wall
Repair of exterior wall
Common corridor expansion
joint cover repair
Repair of exterior wall
Repair of exterior wall

Scheduled construction cost(Thousands of Yen)
Amount
Total
paid
Total
amountduring theamountalready
14th fiscal
paid
period
71,700--53,100--52,800--60,900--25,300--21,000

-

-

5,990

-

-

32,650--64,000--(Note) Total amount already paid does not include the amount paid during the 14th fiscal period.

(b)Capital Expenditures during the 14th Fiscal Period
The following is an overview of the major construction work falling under the category of capital
expenditures that was conducted during the 14th fiscal period for the assets held as of the end of
the 14th fiscal period. Capital expenditures during the 14th fiscal period were ¥2,609,449
thousand and, when combined with the ¥1,326,497 thousand repair expenses classified as
expenses during the 14th fiscal period, a total of ¥3,935,946 thousand in construction work was
implemented. The following construction cost shows the amount equivalent to capital
expenditures.

Name of real estate, etc.
(Location)
Sapporo North Plaza(Sapporo City, Hokkaido)Musashiurawa Shopping Square(Saitama City, Saitama)
Other real estate,etc.

Purpose

PeriodRenewal of air conditioner system From Apr. 2022
(phaseⅢ/Ⅳ)
To Jul. 2022
Renewal of air-conditioning system in From Mar. 2022
common-use and the Nitori areas
To May. 2022
From May. 2022
Improvement of features
To Aug. 2022
Total

Construction cost(Thousands of Yen)
74,24429,301
2,505,902
2,609,449- 53 -