(Reference) SUMMARY OF FINANCIAL RESULTS (REIT)
For the 5th Fiscal Period Ended February 28, 2018
April 13, 2018
REIT securities issuer:
Representative:

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

Asset management company:
Representative:
Inquiries:

Nomura Real Estate Asset Management Co., Ltd.
Norio Ambe, President and Chief Executive Officer
Kenichi Okada, Head of NMF Investment Management Group

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

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

TEL: +81-3-3365-8767

May 29, 2018
May 18, 2018
Yes
Yes (for institutional investors and analyst)[Amounts less than one million yen are truncated]

1. Financial Results for the 5th Fiscal Period (from September 1, 2017 to February 28, 2018)(1) Operating Results[% figures are the rate of increase (decrease) compared with the previous period]
Operating revenues
Period ended
February 28, 2018
August 31, 2017

million yen
34,21838,139Operating profit%(10.3)
9.9

Net income
per unit
Period ended
February 28, 2018
August 31, 2017

million yen
13,212
15,735

Ordinary income%(16.0)
39.9

Return on unitholders’equityyen

million yen
10,715
13,190%(18.8)
52.1

Ratio ofordinary income
to total assets

%

2,561
3,153

Net income%

million yen
10,714
13,190(18.8)
52.1

Ratio ofordinary income
to operating revenues
%

1.9
2.4

%

1.0
1.2

31.3
34.6

(2) Distributions

Period ended
February 28, 2018
August 31, 2017

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

yen
2,624
3,037

million yen
10,976
12,704

Distribution
in excess of
net income per
unit

Total
distributions
in excess of
net income

yenmillion yen
1,769
－

423
－

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

3,047
3,037

million yen
12,745
12,704yen

Distribution
payout ratio

Ratio ofdistributions to
net assets

%
102.4
96.3

%
1.9
2.2

(Note 1) There was no distribution in excess of net income for the period ended August 31, 2017. Of the ¥423 distribution in excess of net income perunit in the fiscal period ended February 28, 2018, ¥284 is a distribution of the allowance for temporary difference adjustments and ¥139 is other
distributions in excess of net earnings. (see 2. Management Policy and Management Status (2) Management Status ⑤ Business Performance andDistributions, below).Furthermore, the ratio of decreasing surplus is 0.002.
(Note 2) Distribution Payout Ratio is calculated using the below formula and truncated at the first decimal place.
Distribution Payout Ratio = Total Distributions (excluding distribution in excess of Net Income) / Net Income × 100(Note 3) Ratio of Distributions to Net Assets is calculated using the below formula and truncated at the first decimal place.
Ratio of Distributions to Net Assets = Distribution Per Unit (excluding distribution in excess of Net Income) / {(Net Assets per Unit at the
beginning of the fiscal period + Net Assets per Unit at the end of the fiscal period) / 2} × 100(3) Financial Position
Period ended
February 28, 2018
August 31, 2017

Total assets

Net assets

million yen
1,089,820
1,095,828

million yen
555,090556,649- 1 -Net assets to total assets

Net assets per unit

%
50.9
50.8

yen
132,697
133,069

(4) Status of Cash FlowsNet cashprovided by (used in)operating activities
Period ended
February 28, 2018
August 31, 2017

Net cashprovided by (used in)investing activities

million yen
39,57365,298million yen(18,983)(44,666)

Net cashprovided by (used in)financing activities

Cash andcash equivalents
at end of period

million yen(15,280)(22,735)

million yen
76,536
71,227

2．Earnings Forecasts for the 6th Fiscal Period (from March 1, 2018 to August 31, 2018)[% figures are the ratio of increase (decrease) compared with the previous period]
Distribution
per unit

Operating revenues

Operating profit

Ordinary income(excluding
distribution
in excess of
net income)Net income

Periodmillionmillionmillionmillion%%%ending
yen
yen
yen
yen
August 31,
34,605
1.1
13,253
0.3
10,698(0.2)
10,6972018(Reference) Forecast net income per unit for the fiscal period ending August 31, 2018 is ¥2,475

Distribution
in excess of
net income
per unit

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

%

yen

yen

yen

(0.2)

2,474

607

3,081

*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 February 28, 2018:
4,183,130 units
As of August 31, 2017:
4,183,130 units② Number of treasury investment units
As of February 28, 2018:– units
As of August 31, 2017:– 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 46.
* Status of audit procedure implementation
At the time of the disclosure of this document, audit procedures for financial statements pursuant to the
Financial Instruments and Exchange Act (Act No. 25 of 1948, including subsequent amendments) have notbeen completed.
* 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 about
the assumptions underlying forward-looking statements and the use of such statements, please refer to“Assumptions Underlying Earnings Forecasts for the Fiscal Period Ending August 31, 2018 (6th fiscal period:
March 1, 2018 to August 31, 2018 ) and the Fiscal Period Ending February 28, 2019 (7th fiscal period:
September 1, 2018 to February 28, 2019)” on page 14.

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.

- 2 -Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

Attachment
1. Related Corporations of the Investment Corporation
Disclosure is omitted because there are no significant changes from the information presented under“Structure of the Investment Corporation” in the most recently published securities report (filed on
November 29, 2017).
2. Management Policy and Management Status(1) Management Policy
On December 19, 2017, the Investment Corporation revised its Asset Management Guidelines, which lay out
operational policy and other matters. Changes in investment policy from the content presented under “Section 1.
Fund Information 2. Investment Policy (1) Investment Policy” in the most recent securities report (filed on
November 29, 2017) are as follows. Updated portions are underlined.
Other than the changes indicated below, disclosure is omitted, since there are no significant changes from the“Investment Policy,” “Investment Targets” and “Distribution Policy” presented in the most recent securities report(filed on November 29, 2017).
Section 1.
Fund Information
No. 1 Status of the Fund
2. Investment Policy(1) Investment Policy② Investment Policy[…]
B. Investment Standards
1. Property Selection Standards by Sector(i) Logistics Facilitiesa) Definition of Sector
At the point of acquisition, the leasable floor space and other factors attributable to each useof the real estate targeted for acquisition shall be assessed to determine its main use; properties
whose main use is thus found to be logistics shall be considered logistics facilities (Note).
When investing only in a building’s site or in superficies or leasehold rights of such a site
(real estate that constitutes the main body of a building’s site and superficies or leasehold rights
of such sites are hereinafter referred to as “sites, etc.”), the sector of the site, etc. shall be thesector whose definition matches or is expected to match the building on the site, etc. (the same istrue for all sectors).
(Note) Investments can also target consumer warehouses (trunk rooms, rental storage space, etc.) and in such acase the property size standards in b) below shall not apply.

[…](ii) Retail Facilitiesa) Definition of Sector
At the point of acquisition, the leasable floor space and other factors attributable to each useof the real estate targeted for acquisition shall be assessed to determine its main use; properties
whose main use is thus found to be retail shall be considered retail facilities (Note).
(Note) NMF classifies retail facilities into the following two types.

- 3 -Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

Classification

Station area

Residential area

Facilities that rely on the ability of a Facilities backed by a population of nearby(terminal) station to gather customers
residents
・ Number of arriving and departing
passengers at the station
・ Trade area population
・ Distance to the station (accessibility) ・ Transportation access
Main evaluation ・ Commercial concentration
・ Trends of competing stores
items(vibrancy)
・ Substitutability of tenants and sector
・ Visibility
・ Length of lease contract period・ Synergy with other retail facilities
・ Tenant credit
・ Specifications of building facilities
・ Food supermarkets
・ Service sector tenants
Main types of・ General supermarkets
・ Merchandise stores
tenants
・ Furniture retailers
・ Restaurants, etc.
・ Sports clubs, etc.
Overview[…](iii) Officesa) Definition of Sector
At the point of acquisition, the leasable floor space and other factors attributable to eachuse of the real estate targeted for acquisition shall be assessed to determine its main use;
properties whose main use is thus found to be as offices shall be considered offices (Note).
(Note) The sections occupied by tenants for restaurants and shops are not included.

[…](iv) Residential Facilitiesa) Definition of Sector
At the point of acquisition, the leasable floor space and other factors attributable to each useof the real estate targeted for acquisition shall be assessed to determine its main use; properties
whose main use is thus found to be residential shall be considered residential facilities (Note).
(Note) Residential facilities refer to the following facilities, etc. Regarding residential facilities other than rental
apartments, in addition to normal lease schemes, management entrustment schemes for dedicated operatorsthat will manage the facility will be considered based on the property’s management form.

Rental apartments(Including company housing thatis whole leased to companies andstudent condominiums whose
occupants are solely students)
Short-stay condominiums
Serviced apartments
Dormitories
Housing for the elderly

Residential facilities used for the purpose of general
residency and whose leasing is in principle for more than ayear.
Residential facilities with furniture that are used for the
purpose of short-term stay on a weekly or monthly basis(less than a year).
Residential facilities with furniture and that provide services
such as linen (bedding replacements), front desk services andconcierge services.
Residential facilities that are used as so-called dormitories,
having, for example, public spaces, facilities for the provisionof food, etc.
Residential facilities with nursing care services.

(v) Hotelsa) Definition of Sector
At the point of acquisition, the leasable floor space and other factors attributable to each useof the real estate targeted for acquisition shall be assessed to determine its main use; properties
whose main use is thus found to be hotels shall be considered hotels. Hotels include any attachedrestaurants, meeting rooms, banquet halls, spas or similar facilities.
- 4 -Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018b) Standards for Determining the Contract TypeIn principle, hotels to be acquired shall be managed as leased facilities (including
variable-rent leases), and Nomura Real Estate Master Fund, Inc. shall not directly commission
their operation.
c) Property Selection Policy
When investing in hotels, in addition to the provisions of “2. Property Selection Standards
Applied Regardless of Sector,” below, the Asset Management Company’s property selection
policy shall be to invest with balanced consideration of profitability and stability.
In particular, hotels shall be selected with regard to their location in light of such factors as
the strength of the local economy, trends in visitors from overseas and the potential impact on
the surrounding area of natural disasters. Furthermore, as the profitability of hotels is greatly
impacted by such factors as the ability of the operator and brand strength, particular weight shallbe given to the conditions of the property’s lease contract and the operator’s creditworthiness andsubstitutability. Consideration shall also be given to the division between the Asset Management
Company and the operator of assets, including furniture, fixtures and equipment, as well as thedivision of the burden for repairs and renovations.
(vi) Other Sectors
Other real estate targeted for investment falls into a wide range of sectors. As such, specificlimits on size and such will not be established in light of the diversity of investment standards
according to sector. Investment in other sectors will be made upon comprehensive considerationsof the locality based on location characteristics, ease of securing substitute tenants, generalversatility of facilities, etc. of each individual real estate targeted for investment.
2. Property Selection Standards Applied Regardless of Sector[…](viii) Tenant composition
Investment will be made in properties where the tenants’ creditworthiness and purpose of use areappropriate.
In principle, with the exception of hotels, investment will be made in properties targeting multiple
tenants. Regarding properties leased to a single tenant or to a small number of tenants, investment
decisions will be made upon comprehensive consideration of the content of lease agreements, thecreditworthiness of the companies, etc. according to the commercial register of said companies or tosurveys by corporate analysis firms, expected ability to attract tenants after departures, characteristics ofthe sector, etc.
[…]
③ Management Policy[…]
A. Basic Strategy
1. Leasing Activities[…]（a） Understanding the State of the Relevant Market
The Asset Management Company shall analyze the forecast tenant demand, rent levels,
occupancy rates and trends at competing properties in the markets to which its real estate
under management belongs based on such information as its own research, third-party- 5 -Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

market reports and information provided by real estate brokers, consultants or other market
actors. In cases where the surrounding market is undergoing structural change (such as atrend toward the new development of rental real estate, the opening of new transportation
systems or new stations, etc.), the Asset Management Company shall analyze the impact ofsuch changes. For hotels, in addition to the abovementioned structural changes, the AssetManagement Company shall analyze such factors as trends at nearby tourist facilities andtrends related to tourists, including those from overseas.
[…]（f）Operator Selection Standards
The profitability of a hotel depends in great part on the ability of the operator. Accordingly, theAsset Management Company shall consider such factors as the operator’s financial condition and pastrecord of operating hotels.

(2) Management Status①Outline of Fiscal Period under Review
NMF’s basic policy is to manage its assets mainly as investments in real estate, etc. (meaning the assets
specified in the Ordinance for Enforcement of the Act on Investment Trusts and Investment Corporations(Prime Minister’s Office Ordinance No. 129 of 2000, including subsequent amendments)), specifically realestate, leaseholds of real estate, surface rights, and the beneficial interests of trusts formed by entrustmentof only these assets, to secure stable income over the medium to long term and steady growth of assets
under management (Note). In order to realize this basic policy, NMF adopts an investment strategy that
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 threemajor metropolitan areas and other major cities. By combining the “diversified type strategy,” in whichinvestments are made in a variety of facilities, such as offices, retail facilities, logistics facilities andresidential facilities, with the “large-scale REIT strategy,” which increases portfolio stability throughproperty and tenant diversification, as well as the “leasing value chain” with the sponsor, the Nomura Real
Estate Group, NMF aims to increase unitholder value by securing stable income over the medium to longterm and the steady growth of assets under management.
During the two years from NMF’s establishment on October 1, 2015, NMF sold 28 properties for a totalof ¥99.5 billion, greatly surpassing its target for its management strategy’s initial quality phase of 20 to 25
properties for ¥50 billion. NMF also acquired 42 properties, mainly from the sponsor, Nomura Real Estate
Development Co., Ltd., for a total of ¥232.3 billion (including assets acquired through M&A, namely anabsorption type merger). These asset replacements improved the quality of NMF’s portfolio. In light ofthese achievements, NMF decided to transition to the medium- to long-term management strategy’s second
phase, the growth phase, in October 2017. In the growth phase, NMF will target external growth throughthe property acquisition pipeline leveraging the Nomura Real Estate Group’s property development
capabilities and internal growth by making maximum use of the property management pipeline with a focus
on strengthening its property brands. By doing so, NMF aims to grow distributions and further increase
unitholder value.
Furthermore, as of September 1, 2017, NMF changed its asset management fee scheme, adopting ascheme that links asset management fees to net income for each fiscal period. This change will promoteincreased consideration of unitholder interests in management by enhancing the link between said interests
and asset management fees.
(Note)

Throughout this document, “assets under management” refers to assets that belong to NMF.
Furthermore, “Real estate, etc.” refers to assets defined in Article 29, Paragraph 1 (1) or (2) of NMF’s Articles of Incorporation, and “realestate backed securities” refers to assets defined in Article 29, Paragraph 1 (3) of NMF’s Articles of Incorporation (“Real estate, etc.” and“real estate-backed securities” are hereinafter collectively referred to as “real estate-related assets”).
Real estate and the underlying real estate of real estate-related assets are together referred to as the “real estate under management” or“properties.”② Investment Environment
The Japanese economy has continued to gradually improve, backed by increased exports, capital investment- 6 -Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

and production due to improvement in the global economy. Going forward, moderate growth is expected tocontinue on the back of firm corporate performance. However, interest rate hikes as central banks aroundthe world move toward normalizing monetary policy and deterioration in market sentiment due to excessive
volatility in stock prices globally could potentially lead to deceleration in the global economy and thus
remain causes for concern.
In the J-REIT market, conditions were somewhat lackluster, reflecting net selling mainly by investment
trusts. However, net buying by overseas investors has led to recovery, and overall conditions are firm.
With regard to the office leasing market, the vacancy rate continued to gradually decline. Rents
continued to rise, albeit slowly, as the market tightened, reflecting firm demand for increased floor space andexpansion in existing buildings. While central Tokyo will see the start of a large supply of new officeproperties in 2018, improvement in corporate performance is expected to generate demand for increased
floor space. Accordingly, NMF believes that a rapid rise in the vacancy rate is unlikely. In major regional
cities, the new supply of office properties will be limited relative to demand, and vacancy rates are expected
to remain low, with rents generally increasing.
In the leased retail facility market, despite improvement in consumer confidence, retail remains stagnant
due in part to the growth of e-commerce. In major urban retail areas, increases in asset prices andconsumption by inbound tourists are driving increases in department store sales of cosmetics and luxury
items. However, while rents had been increasing, the completion of large-scale retail facilities has absorbed
demand for new luxury brand stores. As a result of this and other factors, rent increases seem to havepaused for the moment.
In the leased logistics facility market, overall demand has been firm, due in part to brisk sales reportedby third-party logistics providers (Note), NMF’s main logistics facility tenants, and online shopping outlets.
An increase in logistics facility development projects in the greater Tokyo area and Kinki area has caused
some local demand imbalances, but overall rents remained steady.
(Note) Third-party logistics (3PL) refers to logistics services outsourced by shippers for part or all of their logistics functions.

Concerning the environment surrounding the rental apartment market, the Greater Tokyo Area andother major urban areas continue to see net population inflow, keeping demand firm, while new supply ofhigh-quality rental condominiums in prime locations is low. Reflecting these conditions, the overall
occupancy rate of J-REIT-owned rental condominiums remains high. Rents are forecast to follow a gentle
upward trajectory for the time being, backed by tight supply and improving incomes.
In the real estate transaction market, overall investor appetite remains strong, but prices have remained
high, competition to acquire properties is growing more intense, and it remains extremely difficult toacquire properties at justifiable prices. The current market balance is expected to stay largely unchanged forsome time under the accommodative financial environment, but shifts in domestic and foreign financial
markets could lead to signs of change.
③ Management Performance
Under the circumstances described above, during the 5th fiscal period, NMF acquired five properties(PMO Shin-Nihonbashi, PMO Hirakawacho, GEMS Daimon, EMS Kanda and Summit Store Mukodaicho;
total acquisition price: ¥16,510 million). Also during the 5th fiscal period, NMF sold two properties (Morisia
Tsudanuma and Funabashi Logistics Center; total sale price: ¥23,480 million). As a result, at the end of the
fiscal period under review, NMF held 271 properties (total acquisition price: ¥922,568 million), the ratio ofinvestment in the Greater Tokyo area was 81.9%, the gross leasable area of the portfolio was 1,791,262.45
m2, and the portfolio remained highly diversified.
Since the close of the 5th fiscal period (February 28, 2018), NMF has carried out its first public offering
since its founding. Furthermore, on March 1, 2018, NMF acquired two properties (Landport Hachioji II
and Landport Iwatsuki; total acquisition price: ¥15,320 million). On March 5, 2018, NMF acquired one
property (Watermark Hotel Sapporo; acquisition price: ¥3,600 million). On April 2, 2018, NMF acquired
seven properties (PMO Nihonbashi Mitsukoshimae, PMO Shibadaimon, PROUD FLAT Sangenjaya II,
PROUD FLAT Sotokanda, PROUD FLAT Noborito, PROUD FLAT Yoyogi Hachiman and PROUDFLAT Nakaochiai; total acquisition price: ¥14,496 million).
In terms of property and facility management, as described above in “② Investment Environment,”
rental demand is expanding, backed by the gradual recovery of the Japanese economy. Accordingly, theoccupancy rate of the entire portfolio as of the end of the fiscal period under review was stable and high, at
98.6%. In the office sector, a key upside sector (Note), the rental market has seen particularly notable- 7 -Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

recovery, with rises in newly advertised rents and successful rent increases upon contract renewal driving theinternal growth of the portfolio as a whole.
(Note) Upside sectors refer to sectors for which an increase of rental revenue can be expected, particularly offices as well as retail facilities in station
areas.

④ Status of Fund Procurement
During the fiscal period under review, in order to extend the maturities of its borrowings and diversify
its means of funding, on November 16, 2017 NMF issued the first investment corporation bonds since its
founding (ten-year bonds; total of ¥2,000 million). Furthermore, NMF refinanced ¥28,820 million(including ¥4,000 million in investment corporation bonds) in interest-bearing liabilities with approaching
maturities (including repayments using cash on hand).
As a result, the balance of interest-bearing liabilities at the end of the fiscal period under review was¥486,198 million, and the ratio of interest-bearing liabilities to total assets (LTV) was 44.6%.
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

Rating description

Note

Japan Credit Rating Agency, Ltd. (JCR)

Long-term issuer rating:AA

Rating outlook:

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

Issuer rating:A+

Rating outlook:

StableA

Rating outlook:

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

Long-term corporate credit
rating:Short-term corporate credit
rating:Stable- 8 -A-1

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

⑤Business Performance and Distributions
In the 5th fiscal period, operating revenues totaled ¥34,218 million, operating profit reached ¥13,212
million, ordinary income totaled ¥10,715 million, and net income came to ¥10,714 million. NMF calculates
cash distributions in accordance with the cash distribution policies specified in Article 36 paragraphs 1 and
2 of NMF’s Articles of Incorporation.
For the fiscal period under review, NMF decided to implement a total of ¥12,745 million in
distributions (¥3,047 per investment unit). This figure was calculated as ¥10,714 million in net income aftertaxes plus ¥2,622 million in amortization of goodwill minus ¥587 million in gains on sale of real estateminus the portion for which per-unit distributions comprising the types of dividends laid out below would
be less than ¥1.
Total distributions comprise distributions of earnings and distributions in excess of net income.
Distributions of earnings came to ¥10,976 million (¥2,624 per investment unit), calculated as income as
stipulated in Article 136 Paragraph 1 of the Act on Investment Trusts and Investment Corporations (ActNo. 198 of 1951, hereinafter the Investment Trust Act), less reversal of allowance for temporary difference
adjustments (as stipulated in Article 2 Paragraph 2 (30) of the Regulations Concerning Accounting ofInvestment Corporations; hereinafter ATA). Distributions in excess of net income comprise a ¥1,188
million (¥284 per investment unit) distribution of ATA and ¥581 million (¥139 per investment unit) inother distributions in excess of net earnings.
Note that all of the ¥587 million gain on sales of real estate recorded in the 5th fiscal period will be
designated as retained earnings to facilitate stable operations over the medium and long terms. Said retained
earnings do not violate the relevant conduit requirements, and the depreciation deficiency equivalent arisingfrom the merger will not be taxed.

⑥ Outlook for Next Fiscal Period
Under the conditions described above in ② Investment Environment, NMF will continue to
implement growth phase initiatives. As part of said initiatives, NMF will target external growth by leveraging
the Nomura Real Estate Group’s property development capabilities and internal growth by making
maximum use of the property management pipeline with a focus on strengthening its property brands. By
doing so, with both the external growth and the internal growth, NMF aims to secure the growth of income
and increase further unitholder value.
⑦ Significant Subsequent Events
Ａ．Issuance of New Investment Units
At the Board of Directors meetings held on February 1, 2018 and February 13, 2018, NMF
resolved to issue new investment units, as shown below. Payments for new investment units issued via
a public offering concluded on March 1, 2018, and payments for new investment units issued via
third-party allocation concluded on March 20, 2018. As a result, unitholders’ capital stands at¥181,251,569 thousand, and the total number of investment units issued and outstanding is
4,321,800.
Issuance of New Investment Units through Public Offering (Primary Offering)Number of units offered
132,000 units
Issue price (offer price)¥137,474 per unit
Total issue price (total offer price)¥18,146,568,000
Amount to be paid (issue value)¥133,125 per unit
Total amount to be paid (total issue value)¥17,572,500,000
Payment date
March 1, 2018
Issuance of New Investment Units through Third-Party Allotment (Third-Party Allotment)
Number of investment units offered
6,670 units
Amount to be paid (issue value)¥133,125 per unit
Total amount to be paid (total issue value)¥887,943,750
Payment date
March 20, 2018
Allottee
Nomura Securities Co., Ltd.
- 9 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

Use of proceeds
The proceeds obtained from the Primary Offering and the Third-party Allotment were used for a part of theacquisition of the nine assets acquired on March 1, 2018 and April 2, 2018.

(Reference)
A. Property acquisition
NMF decided to acquire the assets stated below on December 19, 2017, concluding the acquisition
on March 5, 2018.
Property name

Watermark Hotel Sapporo

Type of asset

Real estate

Location (Note 1)（Registry）
5-16 Minamisanjonishi , Chuou Ward,
Sapporo City, and other 2 lots
（Street）
5-16 Minamisanjonishi , Chuou Ward,
Sapporo City

Structure (Note 1)

RC 13F

Land area (Note 1)

553.20㎡

Floor area (Note 1)

4,348.23㎡

Type of ownership（Land）Ownership（Building）Ownership

Completion date
(Note 1)
Acquisition price(Note 2)
Date of agreement

March 25, 2008
¥3,600 million
December 20, 2017
(Date of agreement on purchase and sale of realestate)Date of acquisition
SellerMarch 5, 2018
(Date of delivery of real estate)

Watermark Hotel Japan Co., Ltd.

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

NMF decided to acquire the assets stated below on February 1, 2018, concluding the acquisition on March 1,
2018 regarding to Landport Hachioji II and Landport Iwatsuki, and concluding the acquisition on April 2, 2018
regarding to PMO Nihonbashi Mitsukoshi-mae, PMO Shibadaimon, PROUD FLAT Sangenjaya II, PROUDFLAT Soto Kanda, PROUD FLAT Noborito, PROUD FLAT Yoyogi Hachiman and PROUD FLAT Nakaochiai.
Property nameLandport Hachioji II

Landport Iwatsuki

Type of asset

Real estate

Real estate

Location (Note 1)（Registry）
2970-3 Ishikawacho, Hachioji City, Tokyo（Street）
2970-3 Ishikawacho, Hachioji City, Tokyo(Note 3)Structure (Note 1)（Registry）
5-2-9 Ueno, Iwatsuki Ward, Saitama City,
Saitama（Street）
5-2-9 Ueno, Iwatsuki Ward, Saitama City,
Saitama (Note 3)
S4F

S4F- 10 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018Land area (Note 1)

16,466.84 m2

11,926.85 m2

Floor area (Note 1)

33,028.63 m2 (Note 4)

24,177.15 m2 (Note 5)

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

September 16, 2016

May 13, 2016

¥9,230 million¥6,090 million

February 1, 2018
(Date of agreement on purchase and sale of real

February 1, 2018
(Date of agreement on purchase and sale of realestate)estate)Date of acquisition

March 1, 2018
(Date of delivery of real estate)

March 1, 2018
(Date of delivery of real estate)

Seller

Nomura Real Estate Development, Co., Ltd.

Nomura Real Estate Development, Co., Ltd.

Property name

PMO Nihonbashi Mitsukoshi-mae

PMO Shibadaimon

Type of asset

Real estate

Real estate（Registry）（Registry）

3-3-12 Nihonbashi-Honcho, Chuo Ward,
Tokyo and 7 other lots
（Street）

1-703-2 Shibadaimon, Minato Ward, Tokyo（Street）

Completion date
(Note 1)
Acquisition price(Note 2)
Date of agreement

Location (Note 1)

1-10-18 Shibadaimon, Minato Ward, Tokyo

3-4-5 Nihonbashi-Honcho, Chuo Ward,
Tokyo
Structure (Note 1)

S11F

S9F

Land area (Note 1)(1) 365.95 m2 (2) 70.52 m2 (Note 6)

289.59 m2

Floor area (Note 1)

2,968.75 m2

1,755.21 m2

Type of ownership（Land）Ownership (partly co-ownership)（Building）Ownership（Land）Ownership（Building）Ownership

May 31, 2016

September 24, 2014

¥4,310 million¥2,130 million

February 1, 2018
(Date of agreement on purchase and sale of real

February 1, 2018
(Date of agreement on purchase and sale of realestate)estate)April 2, 2018

April 2, 2018

(Date of delivery of real estate)(Date of delivery of real estate)

Seller

Nomura Real Estate Development, Co., Ltd.

Nomura Real Estate Development, Co., Ltd.

Property name

PROUD FLAT Sangenjaya II

PROUD FLAT Soto Kanda

Type of asset

Real estate

Real estate

Completion date
(Note 1)
Acquisition price(Note 2)
Date of agreement

Date of acquisition（Registry）
Location (Note 1)

1-1-88 Taishido, Setagaya Ward, Tokyo and 1
other lot
（Street）

1-15-31 Taishido, Setagaya Ward, Tokyo
Structure (Note 1)

RC 6F（Registry）
2-57-23 Sotokanda, Chiyoda Ward, Tokyo（Street）

2-5-9 Sotokanda, Chiyoda Ward, Tokyo
RC 11F- 11 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018Land area (Note 1)

1,534.91 m2

407.54 m2

Floor area (Note 1)

3,522.92 m2

2,882.48 m2

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

January 14, 2014

April 22, 2016

¥2,750 million¥2,280 million

February 1, 2018
(Date of agreement on purchase and sale of real

February 1, 2018
(Date of agreement on purchase and sale of realestate)estate)Date of acquisition

April 2, 2018
(Date of delivery of real estate)

April 2, 2018
(Date of delivery of real estate)

Seller

Nomura Real Estate Development, Co., Ltd.

Nomura Real Estate Development, Co., Ltd.

Property name

PROUD FLAT Noborito

PROUD FLAT Yoyogi Hachiman

Type of asset

Real estate

Real estate（Registry）（Registry）

3470-1 Aza Shinkochi, Noborito, Tama Ward,
Kanagawa, other 3 lots (Note 7)（Street）

2-1462-21 Tomigaya, Shibuya Ward, Tokyo（Street）

Completion date
(Note 1)
Acquisition price(Note 2)
Date of agreement

Location (Note 1)

2-16-11 Tomigaya, Shibuya Ward, Tokyo

3333-1 Aza Shinkochi, Noborito, Tama
Ward, Kanagawa, other 2 lots (Note 3)
Structure (Note 1)

RC11F

RC7F

Land area (Note 1)

518.80 m2 (Note 7)

335.87 m2

Floor area (Note 1)

2,000.91 m2

1,081.03 m2

Type of ownership（Land）Right to use and profit from land(ownership) (Note 8)（Building）Ownership（Land）Ownership（Building）Ownership

Completion date
(Note 1)

April 19, 2016

January 8, 2016

¥1,216 million¥966 million

February 1, 2018

February 1, 2018

(Date of agreement on purchase and sale of realestate)(Date of agreement on purchase and sale of realestate)Date of acquisition

April 2, 2018
(Date of delivery of real estate)

April 2, 2018
(Date of delivery of real estate)

Seller

Nomura Real Estate Development, Co., Ltd.

Nomura Real Estate Development, Co., Ltd.

Property name

PROUD FLAT NakaochiaiType of asset

Real estate

Acquisition price(Note 2)
Date of agreement（Registry）
Location (Note 1)

1-1820-2 Nakaochiai, Shinjuku Ward, Tokyo（Street）

1-6-16 Nakaochiai, Shinjuku Ward, Tokyo- 12 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

Structure (Note 1)

RC7F

Land area (Note 1)

423.28 m2

Floor area (Note 1)

1,333.42 m2

Type of ownership（Land）Ownership（Building）Ownership

Completion date
(Note 1)

December 6, 2016

Acquisition price(Note 2)¥844 million
February 1, 2018

Date of agreement

Date of acquisition
Seller(Date of agreement on purchase and sale of realestate)April 2, 2018
(Date of delivery of real estate)

Nomura Real Estate Development, Co., Ltd.

(Note 1) Location (registry), Structure, Completion Date, and Land Area, Floor area are based on the information in the realestate registry.
(Note 2) The acquisition price stated is that given on the real estate sale contract and does not include acquisition-related costs(property and other taxes, etc.).
(Note 3) As the Street Address is not indicated officially, the building location in the real estate registry is noted.
(Note 4) Floor area of storage, etc. (28.91 m2) adjacent to the building is also included.
(Note 5) Floor area of a garbage disposal area (19.44 m2) adjacent to the building is also included.
(Note 6) The area in figure (1) is the land owned by the Fund, and the area in figure (2) is the land jointly owned(NMF holds a 50% interest). The area in figure (1) includes 16.47 m2 that is to be deemed part ofa road under Article 42, Paragraph 2 of the Building Standards Act (setback area). The area in figure (2) is to bedeemed a road under Article 42, Paragraph 2 of the Building Standards Act (private road).
(Note 7) The lot number and area of the original land prior to the pre-allotment is given. The area of the land of the Property(total area of the pre-allotted land) given on the Certificate of Pre-allotment Designation, etc. is 460 m2.
(Note 8) The right held by NMF as of the date of this financial results are a right to use and profit from land (and theownership of the original land) of pre-allotted land based on the pre-allotment designation. The ownership of the
pre-allotted land is scheduled to be acquired by NMF on the day following the public notice of the replotting.

B. Forecast of the Financial Results for the Fiscal Period Ending February 28, 2019 (7th fiscal period:
September 1, 2018 to February 28, 2019)
Forecast of the Financial Results for the Fiscal Period Ending February 28, 2019 (7th fiscal
period: September 1, 2018 to February 28, 2019) is stated below. Assumptions for Forecast of the
Financial Results for the Fiscal Period Ending February 28, 2019 (7th fiscal period: September 1, 2018
to February 28, 2019) is referred to the following Assumptions Underlying Earnings Forecasts for the
Fiscal Period Ending August 31st, 2018 (6th fiscal period: March 1, 2018 to August 31, 2018) and the
Fiscal Period Ending February 28, 2019 (7th fiscal period: September 1, 2018 to February 28, 2019).
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)- 13 -¥ 34,429 million¥ 13,285 million¥ 10,789 million¥ 10,788 million¥ 2,496¥ 2,494¥ 608¥ 3,102

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

Assumptions Underlying Earnings Forecasts
for the Fiscal Period Ending August 31, 2018 (6th fiscal period: March 1, 2018 to August 31, 2018 ) andthe Fiscal Period Ending February 28, 2019 (7th fiscal period: September 1, 2018 to February 28, 2019)
Item

Assumptions

・ Fiscal period ending August 31, 2018 (6th fiscal period): March 1, 2018 to August 31,
2018
Calculation period・ Fiscal period ending February 28, 2019 (7th fiscal period): September 1, 2018 to
February 28, 2019・ With respect to the 281 properties held by NMF as of this document’s publication, it isassumed that there will be no changes in assets under management (new property
acquisitions or sales of portfolio properties) through the end of the February 2019
Assets Under Management(7th) fiscal period.
・ The forecasts may be revised due to actual changes in the portfolio.

Operating revenues

・ Rental revenues are estimated based tenant trends, the presence of competing
properties nearby, real estate market conditions and other factors, with the assumptionthat there will be no delays in payment or failure to pay on the part of tenants.

Operating expenses(excluding amortization
expenses for goodwill)・ Real estate rental expenses are expected to be ¥15,032 million in the August 2018 (6th)fiscal period and ¥14,814 million in the February 2019 (7th) fiscal period.
・ It is estimated that property and other taxes of ¥2,809 million in the August 2018 (6th)fiscal period and ¥2,799 million in the February 2019 (7th) fiscal period will berecorded as real estate rental expenses. In general, previous owners are reimbursed forthe property taxes and city planning taxes for the portion of the fiscal year in which theacquisition occurs from the time NMF acquires the assets onward. However, because
the amount equivalent to such reimbursement is included in the cost of acquisition andis capitalized, NMF will not record it as property taxes and city planning taxes in theAugust 2018 (6th) fiscal period and the February 2019 (7th) fiscal period concerning theproperties acquired on both March 1, 2018 and April 12, 2018.
・ Estimated property management costs (including building management fees andproperty management fees) of ¥3,026 million in the August 2018 (6th) fiscal period and¥3,015 million in the February 2019 (7th) fiscal period are expected to be recorded asreal estate rental expenses.
・ Expenses for building repairs and maintenance required for the fiscal period arerecorded as real estate rental expenses calculated based on the mid-to-long term repair
plans that NMF’s Asset Management Company has established. However, the actual
expenses for repairs and maintenance for the fiscal period may differ significantly fromestimates due to expenses for urgent repairs of damage to buildings caused by difficult
to foresee factors, significant year-on-year fluctuations in costs or non-periodic repair
expenses. Furthermore, expenses for repairs and maintenance are estimated at ¥1,535
million in the August 2018 (6th) fiscal period and ¥1,489 million in the February 2019(7th) fiscal period.
・ Depreciation of ¥4,892 million in the August 2018 (6th) fiscal period and ¥4,879
million in the February 2019 (7th) fiscal period is expected to be recorded as real estate
rental expenses.
・ Other operating expenses (including asset management fees, asset custody fees andgeneral administration fees) are estimated at ¥3,698 million in the August 2018 (6th)fiscal period and ¥3,707 million in the February 2019 (7th) fiscal period.

- 14 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

Item

Assumptions

・ Goodwill is scheduled to be amortized using the straight-line method over 20 years
pursuant to the Business Combination Accounting Standards. Goodwill amortization
expenses are expected to be ¥2,622 million in each the August 2018 (6th) and the
February 2019 (7th) fiscal periods.
Amortization expenses
・ Amortization of goodwill causes a difference between accounting and tax treatment
for goodwill
and may result in the imposition of corporation tax or other tax. NMF intends tomake distributions in excess of net income for the purpose of securing tax relief
during the goodwill amortization period, and it is expected that NMF will be able to
avoid such taxation.
・ NMF expects one-time expenses in the August 2018 (6th) fiscal period of ¥19 million
in costs related to the issuance of new investment units resolved at the February 1,
2018 meeting of the Board of Directors (“the issue of new investment units”).
Non-operating expenses
Furthermore, interest expenses and other borrowing-related expenses are estimated tobe ¥2,527 million in the August 2018 (6th) fiscal period and ¥2,485 million in the
February 2019 (7th) fiscal period.
As of this document’s publication, the outstanding interest-bearing liabilities of
NMF are ¥497,198 million, consisting of ¥476,698 million in outstanding
borrowings and ¥20,500 million in investment corporation bonds.
・ Regarding the ¥22,872 million in borrowings that will come due by the end of theAugust 2018 (6th) fiscal period and ¥28,417 million in borrowings that will comedue by the end of the February 2019 (7th) fiscal period, it is assumed that NMF will
Interest-bearing liabilities
make scheduled, partial repayments of ¥42 million in each the August 2018 (6th)and February 2019 (7th) fiscal periods using cash on hand, while refinancing theremainder 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 by the February 2019(7th)fiscal period.
・

Investment units

Distribution per unit

Distribution per unit inexcess of earnings per
unit

・ Forecasts are based on the number of investment units issued and outstanding as ofthis document’s publication, 4,321,800 units. NMF assumes that there will be no
additional issuance of new investment units through February 28, 2019 (the end of
the 7th fiscal period).
・ The distribution per unit is calculated according to the distribution policy outlined
in NMF’s Articles of Incorporation.
・ NMF assumes that, of the allowance for temporary difference adjustments (“ATA”)
accrued up to the present, the amount eliminated in the August 2018 (6th) fiscal
period (¥5 million) and the February 2019 (7th) fiscal period (¥5 million) will bereversed from retained earnings at the respective period ends.
・ NMF assumes that there will be no change in the August 2018 (6th) and the
February 2019 (7th) fiscal periods to the ¥1,093 million in deferred losses on hedges
of interest rate swaps recorded under valuation and translation adjustments
continuing from the February 2018 (5th) fiscal period. The per-unit distribution(excluding the distribution in excess of net income per unit) is calculated bysubtracting this amount from the distributable amount.
・ The per-unit distribution may vary due to various factors, including changes in theinvestment portfolio, changes in rent income caused by tenant replacements, andunforeseen repairs.
・ The amount of distribution in excess of net income is estimated on the assumption
NMF will distribute the amount of valuation and translation adjustments deductedfrom the total difference between accounting and tax treatment and the
distributable amount as ATA for the purpose of tax relief. The estimate is based on
the assumption that, in order to alleviate the impact on distributions of the- 15 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

Item

Other

Assumptions
amortization of goodwill and other merger-related expenses (the “Merger
Expenses”) and the reversal of ATA, if the total difference between accounting andtax treatment for the relevant fiscal period is less than the sum of the Merger
Expenses and the reversal of ATA, NMF will make other distributions in excess of
net income in an amount not exceeding this difference and within the limit
prescribed by the regulations of the Investment Trusts Association, Japan (the“Investment Trusts Association Japan Regulations”), which restricts the amount to60/100 of the total amount of accumulated depreciation recorded as of the end of
the relevant fiscal period less the total amount of accumulated depreciation
recorded as of the end of the immediately preceding fiscal period.
・ The distribution in excess of net earnings per unit for the August 2018 (6th) fiscal
period is expected to be ¥607, comprising ¥312 in distributions of ATA and ¥295 inother distributions in excess of net earnings. The distribution in excess of net earnings
per unit for the February 2019 (7th) fiscal period is expected to be ¥608, comprising¥347 in distributions of ATA and ¥261 in other distributions in excess of net
earnings.
・ It is assumed that there will be no amendments in legislation, taxation, accounting
principles, listing requirements, the regulations of the Investment Trusts
Association, Japan, or other laws or regulations that would affect the above
forecasts.
・ It is assumed that there will be no unexpected material changes in general economic
conditions and real estate markets.

- 16 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

3. Financial Statements(1) Balance Sheet
Thousands of Yen
As of August 31, 2017

As of February 28, 2018

Cash and bank deposits

58,143,774

64,532,866

Cash and bank deposits in trust

13,083,900

12,004,072

Rental receivables

787,203556,648

Prepaid expenses

778,510

696,79055

54511,026

276,924

73,304,471

78,067,357

118,103,608

121,437,497

Less accumulated depreciation(6,534,321)(8,322,612)

Buildings, net

111,569,286

113,114,885

AssetsCurrent assets

Income taxes receivable
Other
Total current assets
Noncurrent assets
Property and equipment
Buildings

Structures

402,117423,996

Less accumulated depreciation(135,600)(171,650)

Structures, net

266,517

252,345597,359

620,042

Less accumulated depreciation(235,885)(298,650)

Machinery, net

361,473

321,391

143,822

190,500

Less accumulated depreciation(23,985)(37,880)

Tools, furniture and fixtures, net

119,836

152,619Land

214,805,613

223,024,636

Buildings in trust

187,039,446

178,717,511(15,656,794)(17,195,122)

Machinery

Tools, furniture and fixtures

Less accumulated depreciation
Buildings in trust, net*3

Structures in trust

171,382,651*3

161,522,389

950,998

969,309

Less accumulated depreciation(626,012)(697,276)

Structures in trust, net

324,986

272,032

231,240

284,564

Less accumulated depreciation(24,552)(36,334)

Machinery in trust, net

206,688248,230

Machinery in trust

Tools, furniture and fixtures in trust

466,104

379,389

Less accumulated depreciation(105,141)(104,417)

Tools, furniture and fixtures in trust, net

360,962*3

274,972

415,162,899*3

406,677,823

Land in trust*3

Leased assets in trust

23,90023,900(14,950)(18,850)

Leased assets, net

8,950

5,050

Construction in progress

5,229

98,999914,575,096

905,965,376

Less accumulated depreciation

Total property and equipment
Intangible assets- 17 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

Thousands of Yen
As of August 31, 2017

As of February 28, 2018

96,075,951

93,453,708

Leasehold rights

951,943

1,331,702

Leasehold rights in trust

7,628,763

7,628,377

33,06049,156

104,689,719

102,462,945

Long-term prepaid expenses

1,692,616

1,725,575

Long-term deposits

566,019537,247

Security deposits

945,753

945,963

Derivatives Assets

35,372

74,639Goodwill

Other
Total intangible assets
Investments and other assets

Total investments and other assets
Total noncurrent assets

3,239,761

3,283,426

1,022,504,578

1,011,711,748

19,66640,964

19,66640,964

1,095,828,716

1,089,820,070

Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets- 18 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

As of August 31, 2017
Liabilities
Current liabilities
Trade accounts payable
Current portion of investment corporation bonds
Current portion of long-term debt
Lease obligations in trust
Other accounts payable
Accrued expenses
Accrued income taxes
Accrued consumption taxes
Rent received in advance
Unearned revenue
Derivatives liabilities
Other current liabilities
Total current liabilities
Long-term liabilities
Investment corporation bonds
Long-term debt
Lease obligations in trust
Long-term advances received
Security deposits from tenants
Security deposits from tenants in trust
Derivatives liabilities
Total long-term liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
SurplusCapital surplus
Deductions from capital surplus
Allowance for temporary difference adjustments
Other deductions from capital surplus
Total deduction from capital surplus
Capital surplus, net
Retained earnings
Total surplus
Total unitholders' equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Valuation and translation adjustments
Total net assets
Total liabilities and net assets

*3

*4

*2

- 19 -

Thousands of Yen
As of February 28, 2018

3,078,364
4,000,000

2,223,178

54,760,600
6,630
1,536,890
333,666605
1,227,566
4,942,249
300,134
50,648299,281
70,536,637

58,315,600
3,797
2,437,546
291,069605
223,118
4,896,718
263,51249,32546,66868,751,140

18,500,000
411,480,600
2,956
574,827
9,107,525
27,467,719
1,509,405
468,643,035
539,179,673

20,500,000
407,382,800
1,591
449,677
9,737,166
26,788,158
1,118,774
465,978,169
534,729,310－*3

162,592,573

162,791,125

394,012,959

394,012,959(7,367,727)(5,801,916)*4(7,169,175)(6,000,467)(13,169,643)
380,843,315
14,737,836
395,581,151
558,173,725(13,169,643)
380,843,315
12,549,780
393,393,095
556,184,220(1,524,682)(1,524,682)
556,649,043
1,095,828,716(1,093,460)(1,093,460)
555,090,759
1,089,820,070*2

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018(2) Statement of Income and Retained Earnings
Previous period
from Mar. 1, 2017
to Aug. 31, 2017

Operating revenues
Rental revenues
Other rental revenues
Gain on sales of real estate
Total operating revenues
Operating expenses
Real estate rental expenses
Asset management fees
Asset custody fees
Administrative service fees
Directors' compensation
Amortization of goodwill
Other operating expenses
Total operating expenses
Operating profit
Non-operating revenues
Interest income
Reversal of dividends payable
Interest on refund
Other non-operating revenues
Total non-operating revenues
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bondissuance costs
Loan arrangement fees
Investment units issuance costs
Other non-operating expenses
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes—current
Total income taxes
Net income
Retained earnings brought forward
Retained earnings at end of period- 20 -

Thousands of Yen
Current period
from Sep. 1, 2017
to Feb. 28, 2018

*1
*1
*2

31,656,774
3,375,225
3,107,662
38,139,662

*1
*1

*1

15,962,925
3,063,128
56,591
174,470
7,200
2,622,242
517,291
22,403,849
15,735,812*1*2

30,724,009
2,907,617
587,249
34,218,876
14,785,472
3,007,249
56,139154,619
6,000
2,622,242
374,816
21,006,539
13,212,336

365
23,673852
48
24,939635
11,4371,950,878
206,638

1,873,772
187,113

1,372

2,147

405,749－5,310
2,569,949
13,190,803
13,190,803
605
605
13,190,198
1,547,638
14,737,836

396,804
42,462
6,862
2,509,162
10,715,266
10,715,266
605
605
10,714,661
1,835,119
12,549,780－
19
12,092

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018(3) Statement of Changes in Net Assets
Previous period (from March 1, 2017 to August 31, 2017)

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

Capitalsurplus161,883,752

394,012,959(5,374,246)(3,800,508)(9,174,754)

384,838,204

－

－

－

－

－

－

708,820－

708,820(708,820)

－

－

－

－

(2,702,301)－(2,702,301)(2,702,301)

－

－

－

(1,292,587)(1,292,587)(1,292,587)

－

－

－

－

－

－

－

－

－

－

－

－

708,820－(1,993,481)(2,001,407)(3,994,889)(3,994,889)(*1)162,592,573

394,012,959(7,367,727)(5,801,916)(13,169,643)

380,843,315- 21 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

Valuation and translation
adjustments

Unitholders' equity
Surplus

Balance at the beginning of
the period
Changes of items during
the period
Distributions ofretained earnings
Reversal of allowancefor temporary difference
adjustments
Distributions in excess
of net earnings fromallowance for temporary
diccerence adjustments
Other distributions inexcess of net earnings
Net income
Net changes of items
other than unitholders’equityTotal changes of items
during the period
Balance at the end of theperiodTotalunitholders'equityDeferred
gains orlosses onhedgesValuationandtranslation
adjustments

Total net
assetsRetainedearnings

Total surplus

10,928,087

395,766,292

557,650,045(1,545,633)(1,545,633)

556,104,411(8,671,628)(8,671,628)(8,671,628)－－(8,671,628)(708,820)(708,820)

－

－

－

－

－

(2,702,301)(2,702,301)－－(2,702,301)－(1,292,587)(1,292,587)－－(1,292,587)

13,190,198

13,190,198

13,190,198－－

13,190,198

－

－

－

20,951

20,951

20,951

3,809,748(185,140)

523,680

20,951

20,951

544,631

14,737,836

395,581,151

558,173,725(1,524,682)(1,524,682)

556,649,043- 22 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

Current period (from September 1, 2017 to February 28, 2018)

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

Capitalsurplus162,592,573

394,012,959(7,367,727)(5,801,916)(13,169,643)

380,843,315

－

－

－

－

－

－

198,551－

198,551(198,551)

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

198,551－

198,551(198,551)－－(*1)162,791,125

394,012,959(7,169,175)(6,000,467)(13,169,643)

380,843,315- 23 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

Valuation and translation
adjustments

Unitholders' equity
Surplus

Balance at the beginning of
the period
Changes of items during
the period
Distributions ofretained earnings
Reversal of allowancefor temporary difference
adjustments
Distributions in excess
of net earnings fromallowance for temporary
diccerence adjustments
Other distributions inexcess of net earnings
Net income
Net changes of items
other than unitholders’equityTotal changes of items
during the period
Balance at the end of theperiodTotalunitholders'equityDeferred
gains orlosses onhedgesValuationandtranslation
adjustments

Total net
assetsRetainedearnings

Total surplus

14,737,836

395,581,151

558,173,725(1,524,682)(1,524,682)

556,649,043(12,704,165)(12,704,165)(12,704,165)－－(12,704,165)(198,551)(198,551)

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

10,714,661

10,714,661

10,714,661－－

10,714,661

－

－

－

431,221431,221431,221(2,188,056)(2,188,056)(1,989,504)

431,221431,221(1,558,283)

12,549,780

393,393,095

556,184,220(1,093,460)(1,093,460)

555,090,759- 24 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018(4) Statement of Cash Distributions
Yen
Previous period
from Mar. 1, 2017
to Aug. 31, 2017
14,737,836,769

Current period
from Sep. 1, 2017
to Feb. 28, 2018
12,549,780,041

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

1,769,463,990－

1,188,008,920－

581,455,070

III. Incorporation into unitholders'capital
Of which, reversal of allowancefor
temporarydifference
adjustments

198,551,954
198,551,954

478,516,800
478,516,800

IV. Distributions[Distributions per unit]
Of which, distributions of earnings[Of which, distributions ofearnings per unit]
Of which, allowance temporary
difference adjustments[Of which, distributions in excess
of retained earnings per unit [ofallowance for temporary difference
adjustments] ]Of which, other distributions inexcess of net earnings[Of which, distributions in excess
of retained earnings per unit [ofother distributions in excess of net
earnings] ]12,704,165,810(3,037)
12,704,165,810(3,037)

12,745,997,110(3,047)
10,976,533,120(2,624)－

1,188,008,920

－

(284)

－

581,455,070

－

(139)

V. Retained earnings carried forward

1,835,119,005

1,094,730,121

Calculation method for distributions

NMF calculates distributions inaccordance with the cash distribution
policies as specified in Article 36,
paragraphs 1 and 2 of NMF’s Articles ofIncorporation.
For the fiscal period under review,
NMF
decidedtoimplement¥12,704,165,810 in distributions, for a
distribution per unit of ¥3,037. This
figure was calculated as ¥13,190,198,124
in net income plus ¥2,622,242,820 inamortizationofgoodwillminus¥3,107,662,242 in gains on sale of realestate, for a subtotal of ¥12,704,778,702,
from which the portion for which
per-unit distributions would be less than
¥1 was excluded.
Note that, for the fiscal period underreview, the distribution consists entirelyof the distribution of earnings, and there
is no distribution in excess of earnings as
defined in Article 36, Paragraph 2 of
NMF’s Articles of Incorporation.

NMF calculates distributions inaccordance with the cash distribution
policies as specified in Article 36,
paragraphs 1 and 2 of NMF’s Articles ofIncorporation.
For the fiscal period under review,
NMF
decidedtoimplement¥12,745,977,110 in distributions, for a
distribution per unit of ¥3,047. This
figure was calculated as ¥10,714,661,036
in net income plus ¥2,622,242,820 inamortizationofgoodwill
minus¥587,249,509 in gains on sale of realestate, for a subtotal of ¥12,745,997,110,
from which the portion for which
per-unit distributions comprising thetypes of dividends laid out below would
be less than ¥1 was excluded.
Total distributions comprise distributionsof earnings and distributions in excess of
net income. Distributions of earnings
came to ¥10,976,533,120 (¥2,624 perunit), calculated as income as stipulated in
Article 136 Paragraph 1 of the Act on
Investment Trusts and Investment
Corporations, less reversal of allowancefor temporary difference adjustments(hereinafter ATA). Distributions in excess

I. Retained earnings at end of period- 25 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018of net income comprise a ¥1,188,008,920(¥284 per unit) distribution of ATA and¥581,455,070 (¥139 per unit) in other
distributions in excess of net earnings.

- 26 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018(5) Statement of Cash Flows
Previous period
from Mar. 1, 2017
to Aug. 31, 2017
Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of goodwill
Investment units issuance costs
Amortization of investment corporation bond issuance
costs
Interest income
Interest expenses
Loss on disposal of property and equipment
Decrease (increase) in rental receivables
Decrease (increase) in prepaid expenses
Decrease (increase) in consumption taxes receivable
Decrease (increase) in long-term prepaid expenses
Decrease (increase) in long-term deposits
Increase (decrease) in trade accounts payable
Increase (decrease) in other accounts payable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in accrued expenses
Increase (decrease) in rent received in advance
Decrease in property and equipment in trust due to sales
Decrease in intangible assets in trust due to sales
Other
SubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments for purchase of property and equipment
Payments for purchase of property and equipment in trust
Payments for purchase of intangible assets
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
Payments for security deposits
Proceeds from security deposits
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term debt
Repayment of short-term debt
Proceeds from long-term debt
Repayment of long-term debt
Proceeds from issuance of investment corporation bonds
Repayment of investment corporation bonds
Payments for issuance of investment corporation bonds
Distributions of earnings to unitholders- 27 -

13,190,803
4,862,890
2,622,242

Thousands of Yen
Current period
from Sep. 1, 2017
to Feb. 28, 2018

－
1,372
(365)
2,157,516
4,997(324,496)(56,437)
147,670(92,370)(32,777)
667,990(59,415)
1,227,566
9,343(141,431)
43,502,593－
2,274
67,689,965
365(2,389,746)(1,605)65,298,979

10,715,266
4,738,059
2,622,242
42,462
2,147(635)
2,060,886
6,256
226,256
81,225－(32,959)
28,771(855,186)
318(1,004,447)
839,836(45,530)
22,433,392
1,828(21,837)
41,838,353
635(2,264,760)(603)
39,573,624(26,570,750)(16,789,989)－(469)(221,253)
552,436(2,660,618)
1,013,247－
11,000(44,666,399)(11,649,878)(6,890,362)(393,847)(3,464)(272,297)
905,217(1,327,230)
648,688(210)－(18,983,384)

31,700,000(36,700,000)
45,070,000(45,112,800)－(5,000,000)－－
24,320,000(24,862,800)
2,000,000(4,000,000)
23,444(12,712,708)－(8,699,523)

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

Distributions in excess of net earnings from allowancefor temporary difference adjustments
Other distributions in excess of net earnings
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 28 -(2,701,640)(1,108)(1,291,979)(22,735,943)(2,103,362)
73,331,038(*1)71,227,675(915)(15,280,976)(5,309,263)
71,227,675(*1)76,536,938

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018(6) Notes Concerning the Going Concern Assumption
Not applicable.

(7) Notes Concerning Significant Accounting Policies
1. Depreciation of
noncurrent assets① 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
2–45 years
Machinery
2–15 years
Tools, furniture and fixtures
2–20 years② Intangible assets
The straight-line method is adopted.
Goodwill is amortized using straight-line method over 20 years.
③ Long-term prepaid expenses
The straight-line method is adopted.

2. Accounting method fordeferred assets

3. Allowance for doubtful
accounts
4. Revenue and expenses
recognition

5. Hedge accounting①Deferred investment corporation bond issuance costs
The straight-line method over the respective terms of the bonds.
②Investment units issuance costs
The entire amount is expensed as incurred.
To be ready for possible losses arising from defaults on receivables, the uncollectable amountis estimated and recorded by investigating collectability based on historical loan loss ratios forgeneral receivables and on case-by-case examinations for doubtful receivables.
Accounting for fixed asset tax, etc.
Of the tax amount assessed and determined for fixed asset tax, city planning tax,
depreciable asset tax, etc. on real estate, etc. held by NMF, the method of charging theamount corresponding to the concerned fiscal period to expenses as real estate rental
expenses is adopted.
The amount equivalent to fixed asset tax, etc. for the fiscal year in which the acquisition
date falls paid to the seller as reimbursement upon acquisition of real estate or trust
beneficiary interests in real estate is included in the cost of acquisition of the concerned
real estate and not recorded as expenses. The amount equivalent to fixed asset tax, etc.
included in the cost of acquisition of real estate, etc. was ¥135,274 thousand in theprevious fiscal period, and ¥12,466 thousand in the current fiscal period.
① Method of hedge accounting
Deferred hedge accounting is adopted. For interest-rate swap transactions that meetthe requirements for special treatment, special treatment is adopted.
② Hedging instruments and hedged items
Hedging instruments
Interest-rate swap transactions
Hedged items
Interest on loans③ Hedging policy
NMF conducts derivative transactions for the purpose of hedging risks prescribed in
the Articles of Incorporation in accordance with the Basic Policy on Risk Management.
④ Method for assessing effectiveness of hedging
The effectiveness of hedging is assessed by the correlation between changes in the fairvalue of hedging instruments and hedged items.

6. Other important bases for
preparing financial
statements① Method of accounting for trust beneficiary interests in real estate, etc.
Concerning trust beneficiary interests in real estate, etc., held by NMF, all assets andliabilities within the trust assets as well as all revenues and expenses generated by the trust
assets are recorded under the corresponding items of the Balance Sheet and Statement of
Income and Retained Earnings.
Of the trust assets thus recorded, the following major items are listed as separate itemson the balance sheet.
(1) Cash and bank deposits in trust- 29 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

7. Cash and cash equivalents
as stated in the Statementof Cash Flows(2) Buildings in trust; Structures in trust; Machinery in trust; Tools, furniture and fixturesin trust; Land in trust; Leased assets in trust(3) Leasehold rights in trust(4) Lease obligations in trust(5) Security deposits from tenants in trust② Method of accounting for consumption tax, etc.
Consumption tax and local consumption tax is accounted for using the tax-excluded
method.
However, non-deductible consumption tax, etc., on such items as noncurrent assets is
included in the acquisition costs of individual items.
Cash and cash equivalents in the statement of cash flows consist of cash on hand and cash intrust; deposits and deposits in trust that can be withdrawn at any time; and short-term
investments with a maturity of three months or less from the date of acquisition that arereadily convertible to cash and bear only an insignificant risk of price fluctuation.

(Additional Information)(Notes Concerning Increases in and the Reversal of Allowance for Temporary Difference Adjustments)
Previous period
from Mar. 1, 2017
to Aug.31, 2017
1．Reasons, related assets and amounts of reversals
Thousands of Yen
Allowance
forRelated assets,
Reasontemporaryetc.
difference
adjustment
Land, buildings, Sale and depreciation(91,221)etc.
of properties for whichmerger expenses wererecordedLand, buildings, Sale of property on(86,378)etc.
which impairment wasrecognizedDeferred gains Changes in fair value(20,951)
or losses on of derivatives
hedgesTotal(198,551)
2. Method of reversal(1) Amortization of goodwill
In principle, amortization of goodwill is not reversed.
(2) Merger expenses
Method of reversal
Item
Buildings, etc. Upon depreciation and sale, thecorresponding amounts are scheduled tobe reversed.
Land
Upon sale, etc., the corresponding
amount is scheduled to be reversed.
Buildings,
Upon depreciation and sale, theetc., in trust
corresponding amounts are scheduled tobe reversed.
Land in trust
LeaseholdrightsLeaseholdrights in trust

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

(3)Impairment loss
Upon the sale ofCurrent period
from Sep. 1, 2017
to Feb. 28, 2018
1．Reasons, related assets and amounts of allowanceThousands of Yen
Related assets,
etc.
Goodwill
Long-term
deposits
Subtotal
Buildings,
facilities, etc.
Unearnedrevenueother
Subtotal
Total

ReasonAmortization of
goodwill
Shortfall of reserve
for repair

Allowance
temporarydifference
adjustmentfor2,622,242
7,570
2,629,813

Depreciation
deficiency
equivalent
Write-down of loss
on interest rate
swap
due to merger－(1,234,822)(161,277)(45,704)(1,441,804)
1,188,008

2．Reasons, related assets and amounts of reversals
Thousands of Yen
Allowance
forRelated assets,
temporary
Reasonetc.
difference
adjustment
Land, buildings, Saleand
(47,295)
etc.
depreciationofproperties
for
which
mergerexpenses
wererecordedDeferred gains Changes in fair
(431,221)or losses on value of derivatives
hedges(478,516)
Total

the relevant properties, the- 30 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

corresponding amount is scheduled to be reversed.

3. Method of reversal(1) Amortization of goodwill(4)Deferred gains or losses on hedges
The amount corresponding to changes in the fair valueof derivatives used as hedging instruments is scheduled
to be reversed.

In principle, amortization of goodwill is not reversed.
(2) Merger expenses
Method of reversal
Item
Buildings, etc. Upon depreciation and sale, thecorresponding amounts are scheduled tobe reversed.
Land
Upon sale, etc., the corresponding
amount is scheduled to be reversed.
Buildings,
Upon depreciation and sale, theetc., in trust
corresponding amounts are scheduled tobe reversed.
Land in trust
LeaseholdrightsLeaseholdrights in trust

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

(3) Long-term deposits
In principle, long-term deposits are not reversed.
(4) Deferred gains or losses on hedges
The amount corresponding to changes in the fair value ofderivatives used as hedging instruments is scheduled to bereversed.

- 31 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018(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 as follows.

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

Previous period(Aug. 31, 2017)
10,000,000
10,000,000

Thousands of Yen
Current period(Feb. 28, 2018)
10,000,000
10,000,000② NMF has concluded a commitment line agreement with five lending financial institutions as follows.

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

Previous period(Aug. 31, 2017)
40,000,000－
40,000,000

Thousands of Yen
Current period(Feb. 28, 2018)
40,000,000－
40,000,000*2. Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment
Corporations
Thousands of Yen
Previous period
Current period(Aug. 31, 2017)(Feb. 28, 2018)
50,00050,000*3. Asset offered as collateral and liabilities secured with collateralPrevious period(Aug. 31, 2017)
Assets offered as collateral are as follows.
Buildings in trust
3,319,061
Land in trust
6,096,368
Total
9,415,429
Liabilities secured by collateral are as follows.
Security deposits fromtenants in trust
726,648
Total
726,648- 32 -

Thousands of Yen
Current period(Feb. 28, 2018)
Assets offered as collateral are as follows.
Buildings in trust
3,327,532
Land in trust
6,096,368
Tools, furniture andfixtures in trust
206
Total
9,424,106
Liabilities secured by collateral are as follows.
Security deposits fromtenants in trust
726,648
Total
726,648

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

*4. Allowance for temporary difference adjustments
Previous period (from March 1, 2017 to August 31, 2017)
1. Reasons, related assets and amounts
Thousands of Yen
ReasonInitialamountBalance atthe end of
previous
periodAllowance
set aside
duringperiodGoodwill

Amortization of
goodwill

4,244,640

1,622,397

2,622,242

Land, buildings,
etc.

Merger expenses

4,029,135

1,497,394(6,319)Deferred gains
or losses onhedgesLoss oninterest-rate
swaps
recognized at
the end of the
fiscal period

2,867,594

2,254,454－(708,820)

Land, buildings,
etc.

Impairment loss

269,797－

86,378－86,378－Long-term
deposits

Shortfall ofreserve forrepair15,185

－

－

－

－

－

－

5,374,246

2,702,301(708,820)

7,367,727－

Depreciation
deficiency
equivalent(1,302,166)

－

－

－

－

－

Unearnedrevenue, etc.

Write-down ofloss on interest
rate swap
due to merger(216,261)

－

－

－

－

－

Other

－

(76,768)

－

－

－

－

－

Decrease –subtotal

－

－

－

－

－

－

Total

－

5,374,246

2,702,301(708,820)

7,367,727－

Related assets,
etc.

Increase –subtotal
Buildings,
building
improvements,etc.

- 33 -

Balance atthe end ofcurrent
periodReason forreversal－

4,244,640－－

1,491,074－

ReversalduringperiodChanges infair value of
1,545,633
derivativetransactions

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

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

Method of reversal

Buildings, etc.

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

Land

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

Buildings in trust, Upon depreciation and sale, the corresponding amount is scheduled to be reversed.
etc.
Land in trust
Upon sale, the corresponding amount is scheduled to be reversed.
Leasehold rights
Leasehold rights intrust(3) Impairment loss
Upon the sale of the relevant properties, the corresponding amount is scheduled to be reversed.
(4) 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.

- 34 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

Current period (from September 1, 2017 to February 28, 2018)
1. Reasons, related assets and amounts
Thousands of Yen
Related assets,
etc.
Goodwill

ReasonInitialamountBalance atthe end of
previous
periodAllowance
set aside
duringperiodAmortization of
goodwill

4,244,640

4,244,640－

Land, buildings,
etc.

Merger expenses

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

Land, buildings,
etc4,029,135

2,867,594

1,491,074

1,545,633－－

Reversalduringperiod－(91,221)

Balance atthe end ofcurrent
periodReason forreversal

4,244,640－

Sale anddepreciation ofproperties for
1,399,852 which merger
expenses wererecorded(20,951)

Changes infair value of
1,524,682
derivativetransactions
Sale ofproperties
for whichimpairment
loss wererecorded

269,797

86,378－(86,378)－

Increase –subtotal－

7,367,727－(198,551)

7,169,175

－

Total

－

7,367,727－(198,551)

7,169,175－

Impairment loss

- 35 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

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

(2) Merger expenses
Item

Method of reversal

Buildings, etc.

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

Land

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

Buildings in trust, Upon depreciation and sale, the corresponding amount is scheduled to be reversed.
etc.
Land in trust
Upon sale, the corresponding amount is scheduled to be reversed.
Leasehold rights
Leasehold rights intrust(3) Impairment loss
Upon the sale of the relevant properties, the corresponding amount is scheduled to be reversed.
(4) 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.

- 36 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

(Notes to Statement of Income and Retained Earnings)*1. Breakdown of real estate rental revenues and expenses
Previous period
from Mar. 1, 2017
to Aug. 31, 2017
A. Property related revenues
Rental revenues
Rent revenues
Common area charges
Other rental revenues
Parking revenues
Incidental income
Other miscellaneous revenues
Property related revenues
B. Property related expenses
Real estate rental expenses
Property management costs
Property management fees
Property and other taxes
Utility expenses
Casualty insurance
Repairs and maintenanceLand rents
Depreciation
Other rental expenses
Property related expenses

29,096,278
2,560,496

Thousands of Yen
Current period
from Sep. 1, 2017
to Feb. 28, 2018

31,656,774

28,294,468
2,429,540

661,983

584,7422,507,619
205,621

3,375,225

2,198,012
124,862

35,032,000

1,697,880
955,304
2,883,602
2,013,031
46,032
2,083,225
208,035
4,862,343
1,213,470

C. Real estate rental profits [A－B]- 37 -

15,962,925
15,962,925
19,069,074

30,724,009

2,907,617
33,631,626

1,592,435
888,375
2,699,055
1,784,615
43,247
1,758,408
210,4394,737,224
1,071,669

14,785,472
14,785,472
18,846,154

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

*2. Breakdown of gain on sale of real estatePrevious period (from March 1, 2017 to August 31, 2017)
NOF Nihonbashi Honcho Building
Proceeds from sales of real estate
Cost of sales of real estate
Other related sales expenses
Gain on sales of real estate
NOF Technoport Kamata Center Building
Proceeds from sales of real estate
Cost of sales of real estate
Other related sales expenses
Gain on sales of real estate
Tennozu Park Side Building
Proceeds from sales of real estate
Cost of sales of real estate
Other related sales expenses
Gain on sales of real estate
Mitsubishi Motors Shibuya（Land）
Proceeds from sales of real estate
Cost of sales of real estate
Other related sales expenses
Gain on sales of real estate
Mitsubishi Motors Suginami（Land）
Proceeds from sales of real estate
Cost of sales of real estate
Other related sales expenses
Gain on sales of real estate
Ito-Yokado Higashi-Narashino Store
Proceeds from sales of real estate
Cost of sales of real estate
Other related sales expenses
Gain on sales of real estate
Merad Owada
Proceeds from sales of real estate
Cost of sales of real estate
Other related sales expenses
Gain on sales of real estate
Ota Nitta Logistics Center,
Ota Higashishinmachi Logistics Center,
Ota Kiyohara Logistics Center andChiyodamachi Logistics Center(*)
Proceeds from sales of real estate
Cost of sales of real estate
Other related sales expenses
Gain on sales of real estate

Thousands of Yen
11,730,000
10,889,175
60,292780,532
5,020,000
4,725,469
294,531－
12,700,000
12,467,899
232,101－
1,720,000
1,586,458
10,786
122,755
896,000
748,922
6,581
140,496
664,000
641,752
6,771
15,476
7,380,000
6,510,260
84,372785,3677,304,250
5,932,656
108,560
1,263,033(*) This assignment is an assignment to a single assignee under a single purchase agreement.

The purchase price of each property is not disclosed as the assignee’s consent to the disclosure
thereof has not been obtained.

Current period (from September 1, 2017 to February 28, 2018)
Thousands of Yen
Morisia Tsudanuma
Proceeds from sales of real estate
Cost of sales of real estate
Other related sales expenses
Gain on sales of real estate
Funabashi Logistics Center

18,000,000
17,897,287
94,5038,208- 38 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

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

5,480,000
4,537,933
363,026
579,040(Notes to Statement of Changes in Net Assets)
Previous period
from Mar. 1, 2017
to Aug. 31, 2017

Current period
from Sep. 1, 2017
to Feb. 28, 2018

Total number of investment units authorized

20,000,000 units

20,000,000 units

Total number of investment units issued and outstanding

4,183,130 units

4,183,130 units*1. Total number of investment units authorized andtotal number of investment units issued and outstanding(Notes to Statement of Cash Flows)*1. Reconciliation of cash and cash equivalents at end of period to balance sheet items
Previous period
from Mar. 1, 2017
to Aug. 31, 2017
58,143,774

Cash and bank deposits

Thousands of Yen
Current period
from Sep. 1, 2017
to Feb.28, 2018
64,532,866

Cash and bank deposits in trust

13,083,900

12,004,072

Cash and cash equivalents

71,227,675

76,536,938- 39 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

(Notes on Financial Instruments)
1. Matters concerning status of financial instruments(1) Policy for handling financial instruments
NMF procures funds through such means as debt financing, the issuance of investment corporation bonds and theissuance of investment units for the acquisition of real estate related assets. In procuring funds throughinterest-bearing liabilities, NMF adopts the basic financial policy of procuring funds with due consideration forextending the loan period, converting the interest rate to a fixed rate and laddering the repayment dates, etc. forinterest-bearing liabilities.
NMF enters into derivative transactions for the purpose of hedging risks of future interest rates rising and adopts
the policy of not engaging in speculative transactions.
(2) Description of financial instruments and associated risks, and risk management structure
Funds from debt and investment corporation bonds are primarily used to fund the acquisition of real estate-related
assets and to fund the repayment of debts and redemption of investment corporation bonds. These are exposed toliquidity risks of failure to procure alternative funds at the time of repayment or redemption. NMF controls and limits
these risks by diversifying the lending financial institutions it uses, while considering and implementing various
procurement of funds, including the effective use of surplus funds, procuring funds from the capital market throughissuance of investment units. In addition, floating interest rates debt is exposed to risks of the interest rate payablerising. NMF limits the impact that the interest rate payable rising has on NMF’s operations by keeping LTV (ratio ofinterest-bearing liabilities to total assets) at a low level and keeping the ratio of borrowings that are long-term andfixed-rate borrowings at a high level. Furthermore, derivative transactions (interest-rate swap transactions, etc.) areavailable as a hedging instrument for hedging risks of floating interest rates rising and effectively fixing interest rates.
Deposits are made for investing NMF’s surplus funds and are exposed to risks of failure of the financial
institutions that are holding the deposits and other credit risks, but NMF limits the risks by diversifying the financial
institutions that are holding the deposits.
(3) Supplementary explanation on matters concerning fair value, etc. of financial instruments
The fair value of financial instruments, aside from values based on market price, includes values based onreasonable calculation when there is no market price. Certain assumptions are adopted in the calculation of theconcerned values. Accordingly, there may be cases where the concerned values will vary when different assumptions
are adopted. In addition, concerning the contract amount, etc. of derivative transactions presented in “Notes on
Derivative Transactions” later in this document, the amount itself does not represent the market risk involved in thesederivative transactions.
2. Matters concerning fair value, etc. of financial instruments
The following are the carrying amounts and fair values as of August 31, 2017, and the differences between theseamounts.
Thousands of Yen

Carrying amount(Note 1)
(1) Cash and bank deposits(2) Cash and bank deposits in trust(3) Current portion of investment
corporation bonds(4) Current portion of long-term debt
(5) Investment corporation bonds(6) Long-term debt
(7) Derivative transactions

Fair value(Note 1)

Amount of difference

58,143,774
13,083,900

58,143,774
13,083,900－－(4,000,000)(4,011,828)

11,828(54,760,600)(18,500,000)(411,480,600)(1,539,851)(54,912,627)(19,932,756)(417,122,162)(1,539,851)

152,027
1,432,756
5,641,562－

The following are the carrying amounts and fair values as of February 28, 2018, and the differences between theseamounts.
Thousands of Yen

Carrying amount(Note 1)
(1) Cash and bank deposits(2) Cash and bank deposits in trust(3) Current portion of investment
corporation bonds(4) Current portion of long-term debt
(5) Investment corporation bonds(6) Long-term debt
(7) Derivative transactions

Fair value(Note 1)

Amount of difference

64,532,866
12,004,072

64,532,866
12,004,072

－
－

－

－

－

(58,315,600)(20,500,000)(407,382,800)(1,097,928)(58,423,277)(21,791,171)(412,310,168)(1,097,928)

107,677
1,291,171
4,927,368－(Note 1) Liabilities are shown in parentheses.
(Note 2) Matters concerning method for calculating fair value of financial instruments and derivative transactions.
(1) Cash and bank deposits; (2) Cash and bank deposits in trust
As these are settled within a short period of time, the fair value is approximately the same as the book value and is thus stated at that bookvalue.

- 40 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

(3) Current portion of investment corporation bonds; (5) Investment corporation bonds
The fair value of investment corporation bonds issued by the Company is determined based on their market prices(4) Current portion of long-term debt; (6) Long-term debt
As long-term debt with floating interest rates reflect market interest rates within a short period of time, the fair value is thought to beapproximately the same as the book value and is thus stated at that book value (However, the fair value of long-term debt with floatinginterest rates that is subject to special treatment for interest-rate swaps (please refer to “Notes on Derivative Transactions” later in thisdocument) is based on the method of calculating by discounting the sum total amount of principal and interest accounted for as one
transaction together with the concerned interest-rate swap by the interest rate that is reasonably estimated as being applicable in the event ofdrawdown of a similar debt financing). In addition, the fair value of long-term debt with fixed interest rates is calculated based on the methodof calculating by discounting the sum total amount of principal and interest by the interest rate that is reasonably estimated as being
applicable in the event of drawdown of a similar debt financing.
(7) Derivative transactions
Please refer to “Notes on Derivative Transactions” later in this document.
(Note 3) Redemption of monetary claims scheduled to be due after the date of settlement of accounts (August 31, 2017)

Due within
1 yearCash and bank deposits
Cash and bank deposits in trust
Total

58,143,774
13,083,900
71,227,675

Due after
1 year,within2 years－－－

Due after
2 years,
within3 years－－－

Due after
3 years,
within4 years－－－

Thousands of Yen

Due after
4 years,
within5 years－－－

Due after
5 years－－－

Amount of redemption of monetary claims scheduled to be due after the date of settlement of accounts (February 28, 2018)
Thousands of Yen

Due within
1 yearCash and bank deposits
Cash and bank deposits in trust
Total

64,532,866
12,004,072
76,536,938

Due after
1 year,within2 years－－－

Due after
2 years,
within3 years－－－

Due after
3 years,
within4 years－－－

Due after
4 years,
within5 years－－－

Due after
5 years－－－(Note 4) Amount of repayment of investment corporation bonds, long-term debt and other interest-bearing liabilities scheduled to be due after thedate of settlement of accounts (August 31, 2017)
Thousands of Yen

Due within
1 yearShort-term debt
Investment corporation bonds
Long-term debt
Total－
4,000,000
54,760,600
58,760,600

Due after
1 year,within2 years－－
63,160,600
63,160,600

Due after
2 years,
within3 years－
5,000,000
58,385,600
63,385,600

Due after
3 years,
within4 years－－
52,235,600
52,235,600

Due after
4 years,
within5 years－－
44,715,600
44,715,600

Due after
5 years－
13,500,000
192,983,200
206,483,200

Amount of repayment of investment corporation bonds, long-term debt and other interest-bearing liabilities scheduled to be due after thedate of settlement of accounts (February 28, 2018)
Thousands of Yen

Due within
1 yearShort-term debt
Investment corporation bonds
Long-term debt
Total

－
－
58,315,600
58,315,600

Due after
1 year,within2 years－－
64,685,600
64,685,600(Notes on Securities)
Previous period (As of August 31, 2017)
Not applicable.
Current period (As of February 28, 2018)
Not applicable.

- 41 -

Due after
2 years,
within3 years－
5,000,000
59,655,600
64,655,600

Due after
3 years,
within4 years－－
47,715,600
47,715,600

Due after
4 years,
within5 years－－
51,615,600
51,615,600

Due after
5 years－
15,500,000
183,710,400
199,210,400

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

(Notes on Derivative Transactions)
1. Transactions not subject to hedge accounting
Previous period (As of August 31, 2017)
Not applicable.
Current period (As of February 28, 2018)
Not applicable.
2. Transactions subject to hedge accounting
Previous period (As of August 31, 2017)
The following is the contract amount or the amount equivalent to the principal provided in the contract, etc. as ofthe date of settlement of accounts for each method of hedge accounting.
Method ofhedge accounting
Principal treatment method
Special treatment forinterest-rate swaps

Type ofderivative transaction
Interest-rate swap transaction
Floating receivable
Fixed payable
Interest-rate swap transaction
Floating receivable
Fixed payable

Thousands of Yen
Fair value(Note 2)Main hedged
item

Contract amount (Note 1)
Due after 1 year

Long-term debt

154,100,000

129,380,000(Note 3) (1,539,851)

Long-term debt

101,718,100

89,475,300(Note 4) (1,402,532)

255,818,100

218,855,300(2,942,383)

Total(Note 1) Contract amount is based on notional amount.
(Note 2) Fair value is calculated by the swap counterparty, based on the actual market interest rate, etc.
(Note 3) Out of the fair value, (¥15,169 thousand) is booked as “accrued expenses” on the Balance Sheet.
(Note 4) Out of the fair value, (¥1,402,532 thousand) is not marked to market on the Balance Sheet, due to the adoption of special treatment forinterest-rate swaps.

Current period (As of February 28, 2018)
The following is the contract amount or the amount equivalent to the principal provided in the contract, etc. as ofthe date of settlement of accounts for each method of hedge accounting.
Method ofhedge accounting
Principal treatment method
Special treatment forinterest-rate swaps

Type ofderivative transaction
Interest-rate swap transaction
Floating receivable
Fixed payable
Interest-rate swap transaction
Floating receivable
Fixed payable

Thousands of Yen
Fair value(Note 2)Main hedged
item

Contract amount (Note 1)
Due after 1 year

Long-term debt

134,780,000

116,080,000(Note 3) (1,097,928)

Long-term debt

101,696,700

83,753,900(Note 4) (1,043,451)

236,476,700

199,833,900(2,141,379)

Total(Note 1) Contract amount is based on notional amount.
(Note 2) Fair value is calculated by the swap counterparty, based on the actual market interest rate, etc.
(Note 3) Out of the fair value, (¥4,467thousand) is booked as “accrued expenses” on the Balance Sheet.
(Note 4) Out of the fair value, (¥1,043,451 thousand) is not marked to market on the Balance Sheet, due to the adoption of special treatment forinterest-rate swaps.

(Notes on Business Combination)
Previous period (As of August 31, 2017)
Not applicable.
Current period (As of February 28, 2018)
Not applicable.

(Notes on retirement benefit plans)Previous period (As of August 31, 2017)
Not applicable, as NMF has no retirement benefit system.
Current period (As of February 28, 2018)
Not applicable, as NMF has no retirement benefit system.

- 42 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

(Notes on Tax Effect Accounting)
1. Breakdown of main causes for occurrence of deferred tax assets and deferred tax liabilities
Thousands of Yen

Previous period(August 31, 2017)

Current period(February 28, 2018)

Deferred tax assets
Accepted valuation difference at merger

21,965,966

21,567,576

Deferred gains or losses on hedges

481,703345,465Interest received in advance

275,397

224,444Over-depreciated long-term prepaid expenses

25,63422,193

Denied amortization of leasehold right in trust

855

977

Subtotal deferred tax assets

22,749,557

22,160,656

Valuation allowance(22,749,557)(22,160,656)

Total deferred tax assets－－

Net deferred tax assets－－

2. Breakdown of major components that caused significant differences between statutory tax rate and effective tax
rate after application of tax effect accounting
Previous period(August 31, 2017)

Current period(February 28, 2018)31.74%

31.74%

Deductible cash distributions
Valuation allowance(16.57%)(35.26%)(21.48%)(4.24%)

Amortization of goodwill

6.31%

7.77%

Other

0.00%

0.01%

Effective tax rate after application of tax effectaccounting

0.00%

0.01%

Statutory tax rate
(Adjustments)(Notes on equity method income and retained earnings, etc.)
Previous period (from March 1, 2017 to August 31, 2017)
Not applicable, as NMF has no subsidiaries or affiliates.
Current period (from September 1, 2017 to February 28, 2018)
Not applicable, as NMF has no subsidiaries or affiliates.

(Notes on Transactions with Related Parties)
1. Parent company and major corporate unitholders
Previous period (from March 1, 2017 to August 31, 2017)
Not applicable.
Current period (from September 1, 2017 to February 28, 2018)
Not applicable.
2. Subsidiaries and affiliates
Previous period (from March 1, 2017 to August 31, 2017)
Not applicable.
Current period (from September 1, 2017 to February 28, 2018)- 43 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

Not applicable.
3. Fellow subsidiaries
Previous period (from March 1, 2017 to August 31, 2017)
Not applicable.
Current period (from September 1, 2017 to February 28, 2018)
Not applicable.
4. Directors and major individual unitholders
Previous period (from March 1, 2017 to August 31, 2017)
Not applicable.
Current period (from September 1, 2017 to February 28, 2018)
Not applicable.

(Notes on asset retirement obligations)
Previous period (from March 1, 2017 to August 31, 2017)
Not applicable.
Current period (from September 1, 2017 to February 28, 2018)
Not applicable.

(Notes on Investment and Rental Properties)

NMF owns leasable offices, leasable retail facilities, leasable logistics facilities and leasable residential, etc(includingland) in Greater Tokyo area and other areas for the purpose of earning revenue from leasing.
The following are the carrying amount, amount of increase (decrease) during the fiscal period and fair value of theseinvestment and rental properties at the end of the fiscal period.
Previous period
from Mar. 1, 2017
to Aug. 31, 2017
Carrying amount
Balance at beginning of period
Amount of increase (decrease) during period
Balance at end of period
Fair value at end of period(Note 1)
(Note 2)

(Note 3)928,836,719(5,680,915)
923,155,804
1,002,630,000

Thousands of Yen
Current period
From Sep. 1, 2017
to Feb. 28, 2018
923,155,804(8,321,623)
914,834,180
1,001,250,000

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 nORBESA (¥8,638,004 thousand),NRE Kichijoji Building (¥5,141,844 thousand), Nakaza Cui-daore
Building (¥12,165,807 thousand),Landport Kashiwa Shonan Ⅰ(¥10,040,496 thousand),PRIME URBAN Gakugei Daigaku
Parkfront (¥1,402,842 thousand), PROUD FLAT Omori Ⅲ(¥1,165,489 thousand), PROUD FLAT Kinshicho (¥831,191
thousand), Summit Store Narita-Higashi(Land) (¥744,810 thousand). The decrease during the previous period is mainly
attributable to the sale of NOF Technoport Kamata Center Building (¥4,725,469 thousand),NOF Nihonbashi Honcho
Building (¥10,889,175 thousand), Tennozu Park Side Building (¥12,467,899 thousand), Mitsubishi Motors Shibuya(Land)(¥1,586,458 thousand), Mitsubishi Motors Suginami(Land) (¥748,922 thousand), Ito-Yokado Higashi-Narashino
Store (¥641,752 thousand), Merad Owada (¥6,510,260 thousand), Ota Nitta Logistics Center (¥3,081,630 thousand), Ota
Higashishinnmachi Logistics Center (¥1,958,017 thousand), Ota Kiyohara Logistics Center(¥578,054 thousand) andChiyodamachi Logistics Center (¥314,953 thousand) as well as depreciation (¥4,858,613 thousand).The increase during thecurrent period is mainly attributable to the acquisition of PMO Shinnihonbashi (¥4,496,617 thousand), PMO Hirakawacho(¥3,460,311 thousand), GEMS Daimon (¥2,087,357 thousand), GEMS Kanda(¥1,520,710 thousand) and Summit Store
Mukodaicho (¥5,159,847 thousand). The decrease during the current period is mainly attributable to the sale of Morisia
Tsudanuma (¥17,897,287 thousand) and Funabashi Logistics Center (¥4,537,933 thousand) as well as depreciation(¥4,733,427 thousand).
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, the scheduled transfer price is used as the fair value for Morisia Tsudanuma in theprevious period.

The income (loss) in the previous period (from March 1, 2017 to August 31, 2017) and current period (fromSeptember 1, 2017 to February 28, 2018) for investment and rental properties is as presented in “Notes to Statement of
Income and Retained Earnings” earlier in this report.
- 44 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

(Notes on Segment Information)(Segment Information)
Since NMF has only one segment, the real estate leasing business, segment information has been omitted.
(Related Information)
Previous period (from March 1, 2017 to August 31, 2017)
1. Information by product and service
Disclosure is omitted, since revenues from external customers of a single product/service category account for morethan 90% of the operating revenues presented on the Statement of Income and Retained Earnings.
2. Information by geographical area
(1) Revenues
Disclosure is omitted, since revenues from external customers in Japan account for more than 90% of the operating
revenues presented on the Statement of Income and Retained Earnings.
(2) Property and equipment
Disclosure is omitted, since the amount of property and equipment located in Japan accounts for more than 90% of
the amount of property and equipment presented on the Balance Sheet.
3. Information by major customer

Customer name
Nomura Real Estate Partners
Co., Ltd.

Revenues (Thousands of Yen)

Related segment name4,708,156

Rental real estate businessCurrent period (from September 1, 2017 to February 28, 2018)
1. Information by product and service
Disclosure is omitted, since revenues from external customers of a single product/service category account for morethan 90% of the operating revenues presented on the Statement of Income and Retained Earnings.
2. Information by geographical area
(1) Revenues
Disclosure is omitted, since revenues from external customers in Japan account for more than 90% of the operating
revenues presented on the Statement of Income and Retained Earnings.
(2) Property and equipment
Disclosure is omitted, since the amount of property and equipment located in Japan accounts for more than 90% of
the amount of property and equipment presented on the Balance Sheet.
3. Information by major customer

Customer name
Nomura Real Estate Partners
Co., Ltd.

Revenues (Thousands of Yen)

Related segment name4,773,517

Rental real estate business- 45 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

(Notes on Per Unit Information)
Yen
Previous period
from Mar. 1, 2017
to Aug. 31, 2017

Current period
from Sep. 1, 2017
to Feb. 28, 2018

Net assets per unit

133,069

132,697

Net income per unit

3,153

2,561

(Note 1)
(Note 2)

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

Previous period
from Mar. 1, 2017
to Aug. 31, 2017

Current period
from Sep. 1, 2017
to Feb. 28, 201813,190,198

10,714,661－－

Net income attributable to ordinary investment units (Thousands ofYen)

13,190,198

10,714,661

Average number of investment units during period (Units)

4,183,130

4,183,130

Net income (Thousands of Yen)
Amount not attributable to ordinary unitholders (Thousands of
Yen)(Notes on Significant Subsequent Events)
1.Issuance of New Investment Units
At the Board of Directors meetings held on February 1, 2018 and February 13, 2018, NMF resolved toissue new investment units, as shown below. Payments for new investment units issued via a public offering
concluded on March 1, 2018, and payments for new investment units issued via third-party allocation concluded
on March 20, 2018. As a result, unitholders’ capital stands at ¥181,251,569 thousand, and the total number ofinvestment units issued and outstanding is 4,321,800.

Issuance of New Investment Units through Public Offering (Primary Offering)Number of units offered
132,000 units
Issue price (offer price)¥137,474 per unit
Total issue price (total offer price)¥18,146,568,000
Amount to be paid (issue value)¥133,125 per unit
Total amount to be paid (total issue value)¥17,572,500,000
Payment date
March 1, 2018
Issuance of New Investment Units through Third-Party Allotment (Third-Party Allotment)
Number of investment units offered
6,670 units
Amount to be paid (issue value)¥133,125 per unit
Total amount to be paid (total issue value)¥887,943,750
Payment date
March 20, 2018
Allottee
Nomura Securities Co., Ltd.

Use of proceeds
The proceeds obtained from the Primary Offering and the Third-party Allotment were used for apart of the acquisition of the nine assets acquired on March 1, 2018 and April 2, 2018.
[Disclosure Omissions]
A disclosure of notes concerning lease transactions is omitted because such disclosure in this summary offinancial results is judged to be unnecessary.
- 46 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018(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 andoutstanding during the period from the date of incorporation of NMF through the end of the current fiscal
period (February 28, 2018).

Date

Description

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

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

Note

Balance

October 1, 2015

Consolidation typemerger3,722,010

3,722,010

161,120

161,120(Note 2)September 1, 2016

Absorption typemerger461,120

4,183,130－

161,120(Note 3)－4,183,130

763

161,883(Note 4)－4,183,130

708

162,592(Note 4)－4,183,130

1,987

162,791(Note 4)

October 14, 2016

April 14, 2017

October 13, 2017
(Note 1)
(Note 2)

(Note 3)(Note 4)

Reversal of Allowancefor temporary
difference adjustments
Reversal of Allowancefor temporary
difference adjustments
Reversal of Allowancefor temporary
difference adjustments

Figures have been truncated at the nearest million yen.
NMF was established through the consolidation type merger of the former Nomura Master Fund (hereinafter “former NMF”),
Nomura Office Fund (hereinafter “NOF”) and Nomura Residential Fund (hereinafter” NRF”) on October 1, 2015 (hereinafter “theMerger 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.
On September 1, 2016, as part of the absorption type merger, with NMF as the surviving corporation and TOP REIT, Inc.
(hereinafter “TOP”) as the absorbed corporation (hereinafter “the Absorption Type Merger with TOP”), NMF issued 2.62 NMF units
per 1.00 TOP unit, resulting in the issue of 461,120 new units.
At its October 14, 2016, April 14, 2017 and October 13, 2017 NMF Directors’ meetings, NMF’s Board of Directors resolved to reverse
the allowance for temporary difference adjustments and incorporate the amounts of said reversals into unitholders’ capital.

- 47 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

4. Changes in Directors(1) Changes in NMF Directors
Timely disclosure of changes in directors is made when the relevant details are determined.
During the 5th fiscal period, there was no change in directors.
(2) Changes in Asset Management Company Directors
Timely disclosure of changes in directors is made when the relevant details are determined. During the 5th
fiscal period, there was no change in directors.
After the end of the 5th fiscal period, there were some changes in directors as shown below. For details,
please refer to the press release dated March 2, 2018 titled “Notice Concerning Changes of Director andImportant Employees in Asset Management Company”.
Appointments (as of April 1, 2018)
Name
Title (New)Director and Managing Executive
Officer In charge of the International
Daisuke Kimura
Business Planning Section and theInvestment Management Department
Resignations (as of March 31, 2018)
Name
Shoji Yoshihara

Title (New)(Resignation)

Other changes (as of April 1, 2018)
Name
Title (New)
Representative Director and Senior
Managing Executive Officer
Supervisor of the International
Business Planning Section, Client
Fumiki Kondo
Relations & Marketing Department
and the Investment Management
Department In charge of the
Corporate Planning Department andthe Finance & Accounting Department
Director and Managing Executive
Officer In charge of the Client
Relations & Marketing Department,
Noriaki Ido
the Product Development Department
and the NPR Investment Management
Department- 48 -

Title (Former)(New appointment)

Title (Former)
Director and Executive Officer Headof the NPR Investment Management
Department
Title (Former)
Representative Director and Senior
Managing Executive Officer
Supervisor of the Investment
Management Department In charge of
the Corporate Planning Department,
the International Business Planning
Section and the Finance & Accounting
Department
Director and Managing Executive
Officer In charge of the Client
Relations & Marketing Department,
the Investment Management
Department and the ProductDevelopment Department

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

5. Reference Information(1) Investment Status
4th fiscal period
5th fiscal period
As of August 31, 2017
As of February 28, 2018
Area
As a percentage
As a percentage
Type of asset
Use
Total amount held
Total amount held
(Note 1)of total amount ofof total amount of(Millions of Yen)
(Millions of Yen)
assets (%)
assets (%)(Note 2)
(Note 2)
(Note 3)(Note 3)
Greater Tokyo area
93,1978.5
100,845
9.3
OfficeOther areas
21,6302.0
21,521
2.0
properties
Subtotal
114,827
10.5
122,366
11.2
Greater Tokyo area
16,854
1.5
20,3901.9
RetailOther areas
12,1571.1
12,1591.1
properties
Subtotal
29,012
2.6
32,5493.0
Real estate
Greater Tokyo area
20,8101.9
20,8191.9
Logistics
properties
Subtotal
20,8101.9
20,819
1.9Greater Tokyo area
126,920
11.6
126,303
11.6
Residential
Other areas
31,3672.9
31,0222.8
properties
Subtotal
158,287
14.4
157,326
14.4
Greater Tokyo area
5,136
0.5
5,136
0.5
Other
properties
Subtotal
5,136
0.5
5,136
0.5
Greater Tokyo area
257,332
23.5
257,388
23.6
OfficeOther areas
50,5694.6
50,524
4.6
properties
Subtotal
307,901
28.1
307,912
28.3
Greater Tokyo area
93,6928.5
80,995
7.4
RetailOther areas
47,263
4.3
47,066
4.3
properties
Real estate
Subtotal
140,955
12.9
128,06211.8
in trust
Greater Tokyo area
120,48811.0
115,032
10.6
Logistics
Other areas
3,453
0.3
3,430
0.3
properties
Subtotal
123,94211.3
118,463
10.9
22,281
2.0
22,1992.0
Residential Greater Tokyo area
properties
Subtotal
22,281
2.0
22,1992.0
Subtotal
923,155
84.2
914,834
83.9
Deposits and other assets
172,672
15.8
174,985
16.1
1,095,828
100.0
1,089,820
100.0
Total amount of assets
4th fiscal period
As of August 31, 2017
As a percentage
Amountof total amount(Millions of Yen)of assets (%)(Note 4)(Note 3)
Total amount of liabilities
Total amount of net assets

5th fiscal period
As of February 28, 2018
As a percentage
Amountof total amount(Millions of Yen)of assets (%)(Note 4)(Note 3)539,17949.2

534,72949.1

556,64950.8

555,090

50.9(Note 1) “Greater Tokyo area” refers to Tokyo, Kanagawa Prefecture, Chiba Prefecture and Saitama Prefecture. “Other areas” refers tocabinet-order-designated cities, prefectural capitals, and cities with a population of 100,000 persons or more as well as surrounding areas ofthese cities that are not included in the Greater Tokyo area.
(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.

- 49 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018(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. (271 properties) held as of February 28, 2018 (end of the
5th fiscal period) by NMF (this real estate and the beneficiary interests of trusts in which real estate
properties are the principal trust properties or the real estate that constitutes the underlying assets thereof
are hereinafter referred to as the “assets held at the end of the 5th fiscal period”). Unless otherwise stated,the figures in the tables below are the figures as of February 28, 2018.

- 50 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

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
5th fiscal period.
Number of properties

271

Gross leasable area (m2) (Note 1)

1,791,262.45

Gross leased area (m2) (Note 2)

1,766,762.16

Total number of tenants (Note 3)

1,261

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

5,098,851(Note 1) The sum total of the “leasable area” of each of the assets held at the end of the 5th fiscal period. “Leasable area” is the sum
total area of office facilities, retail facilities, logistics facilities, or residential facilities, etc. leasable in each asset (including the areaof common-use space, etc., if leased). Leasable area is calculated based not on that presented in the registry, but the area statedin the lease contract and the area calculated based on building completion drawings, etc. Accordingly, the leasable area may not
be the same as the floor area based on that presented in the registry and may exceed the floor area. In the case of land withleasehold right, the land area based on that presented in the registry is used as contracted area. For the Shinjuku Nomura
Building, NEC Head Office Building and Musashiurawa Shopping Square the leasable area is the area calculated by multiplying
the building’s overall leasable area by the quasi co-ownership ratio of the beneficial interest in real estate trust owned by NMF
as of the end of the fiscal period. For 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 leasable area is calculated as thebuilding’s overall leasable area multiplied by the ownership ratio of the common areas. Land with leasehold interest indicates theland area in the registry as contracted space.
(Note 2) The sum total of “leased area” of each of the assets held at the end of the 5th fiscal period. “Leased area” is the area that is
actually leased to an end-tenant (The area stated in the lease contract; provided, however, that such be limited to the area ofoffice properties, retail properties, logistics properties, or residential properties, etc. (if all rental units are collectively leased,
then the area of the entire rental units) and not include the leased area of parking space, etc. However, if the master lessee has arent-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 with an end-tenant.) in each asset. In the case of land with leasehold right, the leased area of the land isshown. For the Shinjuku Nomura Building, NEC Head Office Building and Musashiurawa Shopping Square the leased area isthe area calculated by multiplying the building’s overall leased area by the quasi co-ownership ratio of the beneficial interest inreal estate trust owned by NMF as of the end of the fiscal period. For the NRE Tennozu Building, since the rent under the
master lease agreement is calculated as the building’s overall rent multiplied by the ownership ratio of the common areas, theleased area is calculated as the building’s overall leased area multiplied by the ownership ratio of the common areas.
(Note 3) The sum total of “total number of tenants” of each of the assets held at the end of the 5th fiscal period. In the calculation of“number of tenants,” when some or all rental units are collectively leased for the purpose of subleasing and the lessee in thelease agreement (master lease agreement) has concluded an agreement with an end-tenant (sublessee that is the actual user) for
subleasing the rental units, the lessee of the master lease agreement is counted as one tenant. However, in the case of assets
with a so-called pass-through master lease agreement, where the rent received from the lessee in the master lease agreement is
the same amount as the rent that the lessee receives from the end-tenant, the total number of end-tenants is shown. In addition,
if multiple rental units in a specific asset are leased to a specific tenant, this is counted as one tenant for the asset and, if
multiple assets are leased to a specific tenant, these are counted separately and the total of that number of tenants is shown. For
residential facilities or residential portions of “other” sector facilities, when some or all rental units are collectively leased for the
purpose of subleasing and the lessee in the lease agreement (master lease agreement) has concluded an agreement with an
end-tenant for subleasing the rental units, the lessee of the master lease agreement is counted as one tenant, and the total
number of tenants for the building as whole is shown.
(Note 4) The total amount of “total contracted rent” for February 2018 of each of the assets held at the end of the 5th fiscal period(amounts less than one thousand are truncated). “Total contracted rent” for February 2018 refers to the sum total of monthly
rent and common area charges in lease agreements actually concluded with end-tenants that are valid as of the last day of
February 2018 (This does not include parking space or other fees stated in parking space lease agreements or other suchagreements signed in addition to the tenant lease agreement. If common-use space, etc. is leased based on the lease agreement,
the rent for such is included and, if rent includes an amount equivalent to the fee for use of parking space, such amount isincluded. In addition, if the master lessee has a rent-guaranteed master lease for some or all rental units, the rent for the space isbased on the rent, etc., in the lease agreement concluded with the master lessee.). Furthermore, regarding tenants who havebeen exempt from rent payment for a certain period of time in their agreements, such exemption period is not considered in
the table above, and the rent is calculated based on the monthly rent and common area charges payable immediately after the
exemption period ends. In addition, the standard level of rent is used for tenants with sales-based rent. For the Shinjuku- 51 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

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 calcuclated as thebuilding’s overall rent revenues multiplied by the ratio of the common areas that NMF owns through the trustee.

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

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

February 29, 2016(end of 1st fiscal
period)August 31, 2016(end of 2nd fiscal
period)February 28, 2017(end of 3rd fiscal
period)August 31, 2017(end of 4th fiscal
period)February 28, 2018(end of 5th fiscal
period)

98.9

99.1

99.2

98.4

98.6

- 52 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

B. Price and Investment Share
The following is an overview of the assets held at the end of the 5th fiscal period (acquisition price,
carrying amount, opinion of value at end of period, investment share and appraiser).
Use

OfficeArea

GreaterTokyo
area

Acquisition price(Millions of Yen)
(Note 1)

Carrying amount(Millions of Yen)
(Note 2)

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

Investment
share
(%)
(Note 4)

Shinjuku Nomura Building (Note 5)

43,90045,861

49,200

4.9

NRE Tennozu Building

20,50020,45521,800

2.2

Kojimachi Millennium Garden

26,70026,537

27,200

2.7

NMF Shinjuku Minamiguchi Building

10,00010,146

11,400

1.1

NMF Shibuya Koen-dori Building

10,40010,44010,600

1.1

Secom Medical Building

11,10010,925

11,300

1.1

NMF Shiba Building

7,040

7,062

7,250

0.7

Nishi-Shinjuku Showa Building

8,140

8,144

8,120

0.8

NRE Shibuya Dogenzaka Building

5,310

5,314

5,760

0.6

Iwamoto-cho Toyo Building

4,050

4,059

4,190

0.4

NMF Surugadai Building

4,690

4,691

5,050

0.5

PMO Nihonbashi Honcho

4,320

4,203

4,640

0.5

PMO Nihonbashi Kayabacho

5,010

4,898

5,540

0.6

NMF Gotanda Ekimae Building

4,430

4,613

4,920

0.5

NRE Higashi-nihonbashi Building

3,570

3,555

3,510

0.4

PMO Akihabara

4,240

4,126

4,830

0.5

Hatchobori NF Building

2,480

2,458

2,660

0.3

NMF Kanda Iwamoto-cho Building

4,160

4,195

4,120

0.4

NMF Takanawa Building

2,830

2,812

2,900

0.3

PMO Hatchobori

2,880

2,794

3,240

0.3

PMO Nihonbashi Odenmacho

2,210

2,147

2,570

0.3

PMO Higashi-nihonbashi

1,690

1,629

1,890

0.2

NRE Ueno Building

6,470

6,488

6,640

0.7

NF Hongo Building.

4,890

4,857

5,150

0.5

Crystal Park Building

3,390

3,359

3,420

0.3

NMF Kichijoji Honcho Building

1,780

1,849

1,950

0.2

Faret Tachikawa Center Square

3,850

3,839

4,270

0.4

The Tanizawa Sogo
Appraisal Co., Ltd.
Daiwa
Real
EstateAppraisal Co., Ltd.
Japan
Real
EstateInstitute
Japan
Real
EstateInstitute
Daiwa
Real
EstateAppraisal Co., Ltd.
Japan
Real
EstateInstitute
Daiwa
Real
EstateAppraisal Co., Ltd.
Appraisal Firm A Square
Ltd.
Daiwa
Real
EstateAppraisal Co., Ltd.
Japan
Real
EstateInstitute
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan
Real
EstateInstitute
Japan
Real
EstateInstitute
Daiwa
Real
EstateAppraisal Co., Ltd.
Japan
Real
EstateInstitute
Japan
Real
EstateInstitute
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan
Real
EstateInstitute
Japan
Real
EstateInstitute
Japan
Real
EstateInstitute
Japan
Real
EstateInstitute
Japan
Real
EstateInstitute
Japan
Real
EstateInstitute
Daiwa
Real
EstateAppraisal Co., Ltd.
Appraisal Firm A Square
Ltd.
Japan
Real
EstateInstitute
The Tanizawa Sogo
Appraisal Co., Ltd.

NMF Kawasaki Higashiguchi Building

7,830

7,903

9,270

0.9

Japan Valuers Co., Ltd.

NMF Yokohama Nishiguchi Building

5,460

5,671

6,640

0.6

NMF Shin-Yokohama Building

2,620

2,818

3,000

0.3

PMO Tamachi

6,210

6,229

6,910

0.7

PMO Ginza Hatchome

3,970

3,985

4,430

0.4

PMO Shibakoen

3,900

3,909

4,320

0.4

NEC Head Office Building (Note 6)

44,10044,194

45,100

4.4

Harumi Island Triton Square Office Tower
Y

18,20018,08718,500

1.9

NMF Aoyama 1-chome Building

10,40010,45011,800

1.2

NMF Takebashi Building

8,330

8,304

8,700

0.9

Harumi Island Triton Square Office Tower
Z

8,180

8,105

8,170

0.8

Property name- 53 -

Appraiser

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

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

Use

Area

Other
areas

RetailRetailGreaterTokyo
area

Acquisition price(Millions of Yen)
(Note 1)

Carrying amount(Millions of Yen)
(Note 2)

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

Investment
share
(%)
(Note 4)

NMF Kayabacho Building

6,070

6,035

6,200

0.6

NMF Shinjuku EAST Building

5,710

5,719

5,990

0.6

NMF Shiba-Koen Building

3,620

3,713

3,760

0.4

NMF Ginza 4-chome Building

1,850

1,871

1,960

0.2

Faret East Building

1,850

1,838

1,940

0.2

PMO Shinnihonbashi

4,440

4,479

4,680

0.5

PMO Hirakawacho

3,410

3,447

3,560

0.4

Sapporo North Plaza

6,250

6,318

7,230

0.7

NRE Sapporo Building

4,140

3,934

4,740

0.5

NMF Sendai Aoba-dori Building

2,030

2,156

2,480

0.2

NMF Utsunomiya Building (Note 8)

2,320

2,573

2,330

0.2

NMF Nagoya Fushimi Building

2,240

2,132

2,310

0.2

Japan
Real
EstateInstitute
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan
Real
EstateInstitute
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan
Real
EstateInstitute
Japan
Real
EstateInstitute
Japan
Real
EstateInstitute
Japan
Real
EstateInstitute
JLL Morii Valuation &Advisory K.K.(Note 7)
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan
Real
EstateInstitute

NMF Nagoya Yanagibashi Building

2,280

2,341

2,200

0.2

Japan Valuers Co., Ltd.

Omron Kyoto Center Building

18,30018,16019,100

1.9

Japan
Real
Institute

SORA Shin-Osaka 21

12,10011,98912,100

1.2

Japan Valuers Co., Ltd.

NRE Osaka Building

6,100

6,373

6,210

0.6

NRE Nishi-Umeda Building

3,450

3,465

3,640

0.4

NRE Yotsubashi Building

4,000

3,999

4,170

0.4

NRE Hiroshima Building

2,280

2,268

2,620

0.3

NMF Hakata Ekimae Building

4,210

4,179

4,830

0.5

NMF Tenjin-Minami Building

2,230

2,153

2,380

0.2

Office subtotal

428,110430,278455,390

45.5

Yokosuka More’s City

13,64013,85916,500

1.6

The Tanizawa Sogo
Appraisal Co., Ltd.

Recipe SHIMOKITA

10,407

10,554

11,100

1.1

Japan Valuers Co., Ltd.

Kawasaki More’s

6,080

6,779

7,980

0.8

EQUINIA Shinjuku

4,260

4,313

4,920

0.5

EQUINA Ikebukuro

3,990

4,061

4,460

0.4

covirna machida

3,440

3,769

4,260

0.4

Nitori Makuhari

3,080

2,846

3,810

0.4

Konami Sports Club Fuchu

2,730

2,591

3,400

0.3

FESTA SQUARE

2,600

2,383

3,250

0.3

GEMS Shibuya

2,490

2,434

2,660

0.3

Sundai Azamino

1,700

1,570

2,090

0.2

EQUINIA Aobadai

1,560

1,624

1,930

0.2

Megalos Kanagawa

1,000

977

1,410

0.1

Mitsubishi Motors Meguro（Land）

2,740

2,764

3,190

0.3

Mitsubishi Motors Chofu（Land）

1,760

1,776

1,770

0.2

Mitsubishi Motors Nerima（Land）

1,240

1,251

1,400

0.1

Mitsubishi Motors Kawasaki（Land）

950

959

1,170

0.1

Mitsubishi Motors Takaido（Land）

850

859

884

0.1

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

Mitsubishi Motors Katsushika（Land）

800

808

882

0.1

Japan

Property name- 54 -

Appraiser

EstateThe Tanizawa Sogo
Appraisal Co., Ltd.
Daiwa
Real
EstateAppraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan
Real
EstateInstitute
Japan
Real
EstateInstituteRealEstateNomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

Use

Area

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

Carrying amount(Millions of Yen)
(Note 2)

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

Investment
share
(%)
(Note 4)

Appraiser
Institute

700

747

776

0.1

GEMS Daimon

2,060

2,077

2,110

0.2

GEMS Kanda

1,500

1,513

1,530

0.2

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

Summit Store Mukodaicho

5,100

5,151

5,160

0.5

Japan Valuers Co., Ltd.

Universal CityWalk Osaka

15,50015,473

18,200

1.8

Japan Valuers Co., Ltd.

Izumiya Senrioka

8,930

8,552

10,900

1.1

Izumiya Yao

4,406

4,122

5,510

0.6

Izumiya Obayashi

3,020

3,258

3,960

0.4

Ichibancho stear

4,700

4,558

5,650

0.6

EQUINIA Aobadori

1,640

1,447

2,030

0.2

MEL Building

1,060

1,057

1,190

0.1

nORBESA

8,500

8,595

8,540

0.9

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.
Japan
Real
EstateInstitute
Japan
Real
EstateInstitute

Nakaza Cui-daore Building

11,60012,159

11,100

1.1

Japan Valuers Co., Ltd.

Retail subtotal

159,783

160,611

180,734

18.1

Landport Urayasu

17,40016,50421,5002.1

Landport Itabashi

15,71014,996

19,2001.9

Landport Kawagoe

13,70012,58016,5001.6

Landport Atsugi

11,41010,722

11,600

1.2

Sagamihara Tana Logistics Center

10,60010,19912,300

1.2

Sagamihara Onodai Logistics Center

8,700

8,120

11,1001.1

Landport Hachioji

8,250

7,650

9,650

1.0

Landport Kasukabe

7,340

6,665

8,730

0.9

Atsugi Minami Logistics Center B Tower

4,590

4,334

5,570

0.6

Hanyu Logistics Center

3,810

3,566

4,380

0.4

Kawaguchi Logistics Center B Tower

3,750

3,668

4,620

0.5

Kawaguchi Logistics Center A Tower

2,830

2,802

3,500

0.4

Atsugi Minami Logistics Center A Tower

2,690

2,589

3,330

0.3

Kawaguchi Ryoke Logistics Center

10,79010,62813,0001.3

Mitsubishi Motors Higashikurume（Land）

800

808

884

0.1

Mitsubishi Motors Setagaya（Land）

770

779

922

0.1

Mitsubishi Motors Sekimachi（Land）

600

606

690

0.1

Mitsubishi Motors Higashiyamato（Land）

450

455

513

0.1

Mitsubishi Motors Motosumiyoshi（Land）

370

375

385

0.0

Mitsubishi Motors Kawagoe（Land）

350

355

379

0.0

Mitsubishi Motors Edogawa（Land）

200

204

184

0.0

Mitsubishi Motors Sayama（Land）

160

163

175

0.0

10,41010,377

11,100

1.1

GEMS Ichigaya

2,080

2,084

2,080

0.2

Sagamihara Shopping Center

6,840

6,832

6,900

0.7

Musashiurawa Shopping Square (Note 6)

2,720

2,666

2,800

0.3

NRE Kichijoji Building(Note 9)Summit Store Naritahigashi (Land)

Other
areas

Logistics

GreaterTokyo
area- 55 -The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan
Real
EstateInstitute
The Tanizawa Sogo
Appraisal Co., Ltd.
Daiwa
Real
EstateAppraisal Co., Ltd.
Japan
Real
EstateInstitute
Japan
Real
EstateInstitute
Japan
Real
EstateInstitute
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.

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

Use

Area

Other
areas

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

Carrying amount(Millions of Yen)
(Note 2)

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

Investment
share
(%)
(Note 4)

Landport Kashiwa Shonan II

10,80010,828

11,400

1.1

Japan Valuers Co., Ltd.

Landport Kashiwa Shonan I

9,900

9,991

10,200

1.0

Japan Valuers Co., Ltd.

Hirakata Kuzuha Logistics Center

3,460

3,430

3,850

0.4

Daiwa
Real
EstateAppraisal Co., Ltd.

145,730

139,282

170,430

17.0

3,400

3,316

3,440

0.3

PROUD FLAT Yoyogi Uehara

989

980

942

0.1

PROUD FLAT Hatsudai

713

698

762

0.1

PROUD FLAT Shibuya Sakuragaoka

750

731

689

0.1

PROUD FLAT Gakugei Daigaku

746

723

789

0.1

PROUD FLAT Meguro Gyoninzaka

939

914

1,010

0.1

PROUD FLAT Sumida Riverside

2,280

2,194

2,480

0.2

PROUD FLAT Kagurazaka

1,590

1,538

1,730

0.2

PROUD FLAT Waseda

1,110

1,072

1,200

0.1

947

917

931

0.1

PROUD FLAT Sangen Jaya

1,190

1,147

1,260

0.1

PROUD FLAT Kamata

1,160

1,110

1,240

0.1

PROUD FLAT Kamata II

3,320

3,194

3,330

0.3

PROUD FLAT Shinotsuka

623

597

547

0.1

PROUD FLAT Kiyosumi Shirakawa

928

892

983

0.1

PROUD FLAT Monzen Nakacho II

652

629

605

0.1

PROUD FLAT Monzen Nakacho I

1,030

987

952

0.1

PROUD FLAT Fujimidai

1,470

1,420

1,630

0.2

PROUD FLAT Asakusa Komagata

1,920

1,836

2,130

0.2

PROUD FLAT Yokohama

2,090

2,004

2,170

0.2

PROUD FLAT Kamioooka

2,710

2,603

2,670

0.3

PROUD FLAT Tsurumi II

1,650

1,581

1,760

0.2

PRIME URBAN Azabu Juban

1,100

1,102

1,140

0.1

PRIME URBAN Akasaka

938

932

904

0.1

PRIME URBAN Tamachi

972

954

932

0.1

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

1,830

1,771

1,950

0.2

Japan Valuers Co., Ltd.

PRIME URBAN Yoyogi

359

349

321

0.0

PRIME URBAN Ebisu II

1,140

1,128

1,260

0.1

PRIME URBAN Bancho

1,090

1,073

1,080

0.1

679

666

648

0.1

PRIME URBAN Iidabashi

2,040

1,992

2,000

0.2

PRIME URBAN Ebisu

1,260

1,246

1,280

0.1

PRIME URBAN Naka Meguro

1,410

1,396

1,330

0.1

PRIME URBAN Gakugei Daigaku

775

762

820

0.1

PRIME URBAN Senzoku

474

468

485

0.0

PRIME URBAN Meguro Riverside

414

399

441

0.0

Logistics subtotal
PROUD FLAT Shirokane Takanawa

PROUD FLAT Shinjuku Kawadacho

Residential

Greater
Tokyo
area

PRIME URBAN Shibaura LOFTPRIME URBAN Chiyoda Fujimi- 56 -

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

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

Use

Area

Greater
Residential Tokyo
area

Acquisition price(Millions of Yen)
(Note 1)

Carrying amount(Millions of Yen)
(Note 2)

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

Investment
share
(%)
(Note 4)PRIME URBAN Meguro Ohashi Hills

2,970

2,893

3,110

0.3

PRIME URBAN Meguro Aobadai

1,310

1,288

1,440

0.1

PRIME URBAN Gakugei Daigaku II

1,080

1,063

1,170

0.1

PRIME URBAN Naka Meguro II

2,850

2,834

3,030

0.3

PRIME URBAN Kachidoki

2,570

2,578

2,390

0.3

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

PRIME URBAN Shinkawa

2,100

2,082

2,300

0.2

Japan Valuers Co., Ltd.

PRIME URBAN Nihonbashi Yokoyamacho

4,220

4,082

4,520

0.5

Japan Valuers Co., Ltd.

PRIME URBAN Nihonbashi Hamacho

1,550

1,515

1,710

0.2

Japan Real Estate
Institute

PRIME URBAN Hongo Ikizaka

557

541

603

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Hakusan

866

832

955

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Yotsuya Gaien Higashi

1,490

1,471

1,400

0.1

PRIME URBAN Nishi Shinjuku I

1,090

1,071

1,150

0.1

PRIME URBAN Nishi Shinjuku II

885

868

974

0.1

PRIME URBAN Shinjuku Naitomachi

430

429

465

0.0

PRIME URBAN Nishi Waseda

421

405

448

0.0

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

PRIME URBAN Shinjuku Ochiai

594

595

637

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Mejiro

1,430

1,409

1,540

0.2

PRIME URBAN Kagurazaka

2,900

2,817

3,040

0.3

PRIME URBAN Sangen Jaya III

718

720

629

0.1

PRIME URBAN Chitose Karasuyama

717

722

752

0.1

PRIME URBAN Sangen Jaya

724

705

771

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

667

644

754

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Karasuyama Galleria

549

531

573

0.1

PRIME URBAN Karasuyama Court

338

327

357

0.0

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

PRIME URBAN Chitose Funabashi

746

724

721

0.1

Japan Valuers Co., Ltd.

1,390

1,351

1,490

0.1

494

490

522

0.1

PRIME URBAN Osaki

1,860

1,834

1,800

0.2

PRIME URBAN Oimachi II

1,040

1,042

1,100

0.1

PRIME URBAN Yukigaya

951

945

725

0.1

PRIME URBAN Omori

905

874

834

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

774

744

720

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Nagahara Kamiikedai

1,720

1,686

1,770

0.2

Japan Real Estate
Institute

PRIME URBAN Nakano Kamitakada

498

479

547

0.1

Japan Valuers Co., Ltd.

1,060

1,049

1,120

0.1

PRIME URBAN Nishi Ogikubo

414

403

422

0.0

PRIME URBAN Nishi Ogikubo II

1,790

1,763

1,870

0.2

PRIME URBAN Otsuka

730

712

770

0.1

PRIME URBAN Komagome

437

434

452

0.0

PRIME URBAN Ikebukuro

3,800

3,692

4,000

0.4

PRIME URBAN Monzen Nakacho

2,420

2,354

2,530

0.3

Property namePRIME URBAN Yoga
PRIME URBAN Shinagawa Nishi

PRIME URBAN Takaido- 57 -

Appraiser

Japan Valuers Co., Ltd.

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

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

Use

Area

Acquisition price(Millions of Yen)
(Note 1)

Carrying amount(Millions of Yen)
(Note 2)

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

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

779

746

803

0.1

PRIME URBAN Sumiyoshi

632

608

647

0.1

PRIME URBAN Mukojima

528

529

542

0.1

PRIME URBAN Kinshi Koen

1,290

1,233

1,200

0.1

PRIME URBAN Kinshicho

758

733

708

0.1

PRIME URBAN Hirai

722

690

758

0.1

PRIME URBAN Kasai

640

614

603

0.1

PRIME URBAN Kasai II

981

941

883

0.1

PRIME URBAN Kasai East

1,140

1,094

1,210

0.1

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 Itabashi Kuyakushomae

1,080

1,037

1,160

0.1

Japan Valuers Co., Ltd.

384

388

297

0.0

PRIME URBAN Machiya South Court

1,910

1,874

1,990

0.2

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

PRIME URBAN Musashi Koganei

1,910

1,907

2,000

0.2

Japan Valuers Co., Ltd.

PRIME URBAN Musashino Hills

1,280

1,275

1,340

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Koganei Honcho

791

770

853

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Kumegawa

1,520

1,442

1,420

0.1

Japan Real Estate
Institute

PRIME URBAN Musashi Kosugi comodo

1,940

1,932

2,180

0.2

Japan Valuers Co., Ltd.

962

947

1,060

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Shinyurigaoka

1,020

984

1,210

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Tsurumi Teraya

493

493

394

0.0

PRIME URBAN Urayasu

804

777

748

0.1

PRIME URBAN Gyotoku I

633

615

560

0.1

PRIME URBAN Gyotoku II

730

704

664

0.1

PRIME URBAN Gyotoku Ekimae

488

473

437

0.0

PRIME URBAN Gyotoku Ekimae II

469

456

483

0.0

PRIME URBAN Gyotoku III

747

738

776

0.1

PRIME URBAN Nishi Funabashi

761

727

703

0.1

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

PRIME URBAN Kawaguchi

1,580

1,531

1,710

0.2

Japan Valuers Co., Ltd.

PROUD FLAT Hatchobori

920

942

1,000

0.1

PROUD FLAT Itabashi Honcho

720

739

783

0.1

Japan Real Estate
InstituteJapan Real Estate
Institute

PRIME URBAN Meguro Mita

1,058

1,128

1,110

0.1

Japan Valuers Co., Ltd.

Fukasawa House Towers H&I

7,140

7,061

7,310

0.7

PRIME URBAN Toyosu

5,290

5,211

5,390

0.5

PRIME URBAN Nihonbashi Kayabacho

2,850

2,826

2,900

0.3

PRIME URBAN Yoga II

1,320

1,304

1,330

0.1

PRIME URBAN Musashi Koganei II

1,310

1,285

1,380

0.1

PRIME URBAN Gakugei daigaku
parkfront

1,300

1,394

1,310

0.1

PROUD FLAT Omori Ⅲ

1,110

1,154

1,190

0.1

PROUD FLAT Kinshicho

785

820

878

0.1

PROUD FLAT Itsutsubashi

652

612

711

0.1

PROUD FLAT Kawaramachi

735

687

686

0.1

Property namePRIME URBAN Asakusa

PRIME URBAN Kawasaki

GreaterTokyo
area
Residential

Other
areas

- 58 -

Appraiser

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

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

Use

Residential

Other(Note 1)

Area

Other
areas

GreaterTokyo
area

Acquisition price(Millions of Yen)
(Note 1)

Carrying amount(Millions of Yen)
(Note 2)

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

Investment
share
(%)
(Note 4)

PROUD FLAT Shin Osaka

1,620

1,526

1,700

0.2

PRIME URBAN Kita Juyo Jo

274

261

282

0.0

PRIME URBAN Odori Koen I

502

477

529

0.1

PRIME URBAN Odori Koen II

334

319

349

0.0

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

PRIME URBAN Kita Juichi Jo

547

516

597

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Miyanosawa

475

443

504

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Odori Higashi

394

373

431

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Chiji Kokan

249

233

274

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Maruyama

229

215

240

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Kita Nijuyo Jo

437

411

471

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Sapporo Idaimae

616

581

654

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Sapporo Riverfront

4,480

4,238

4,650

0.5

Japan Valuers Co., Ltd.

PRIME URBAN Kita Sanjo Dori

1,730

1,628

1,860

0.2

Japan Valuers Co., Ltd.

PRIME URBAN Nagamachi Icchome

1,140

1,085

1,070

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Yaotome Chuo

466

440

441

0.0

Japan Valuers Co., Ltd.

PRIME URBAN Tsutsumidori Amamiya

949

947

926

0.1

PRIME URBAN Aoi

712

690

737

0.1

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

PRIME URBAN Kanayama

553

522

604

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Tsurumai

1,020

959

1,110

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Kamimaezu

1,590

1,511

1,670

0.2

Japan Valuers Co., Ltd.

PRIME URBAN Izumi

3,770

3,593

4,120

0.4

Japan Valuers Co., Ltd.

PRIME URBAN Esaka I

652

626

663

0.1

PRIME URBAN Esaka II

794

761

845

0.1

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

PRIME URBAN Esaka III

1,190

1,123

1,180

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Tamatsukuri

1,020

974

1,080

0.1

Japan Valuers Co., Ltd.

PRIME URBAN Sakaisuji Honmachi

1,810

1,723

1,830

0.2

PRIME URBAN Hakata

588

559

614

0.1

PRIME URBAN Yakuin Minami

265

252

282

0.0

PRIME URBAN Kashii

398

374

342

0.0

PRIME URBAN Hakata Higashi

622

587

527

0.1

PRIME URBAN Chihaya

604

577

565

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 Chikusa

1,110

1,182

1,130

0.1

Japan Valuers Co., Ltd.

Residential subtotal

184,045

179,525

189,546

18.9

4,900

5,136

5,150

0.5

Other subtotal

4,900

5,136

5,150

0.5

Total

922,568

914,834

1,001,250

100.0

Property name

Ryotokuji University Shin-Urayasu
Campus (Land)

Appraiser

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

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

- 59 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

(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 5th fiscal period-end (February 28, 2017) as the effective date of value and the value indicated by the
income approach as a standard) in accordance with NMF’s Articles of Incorporation and the Regulations Concerning Accounting of Investment
Corporations.
The appraisal or investigation value of real estate is no more than an indication of the opinion of the value of the appraised real estate at the time ofappraisal by the respective real estate appraiser, etc., conducted in accordance with the Act on Real Estate Appraisal (Act No. 152 of 1963, including
subsequent amendments), and real estate appraisal standards, etc. Reappraisal of the same real estate may result in a different appraisal or investigation
value, depending on the real estate appraiser conducting the appraisal and the method or timing of the appraisal. In addition, the appraisal of real estate is
not a guarantee or promise of the possibility of transactions at present or in the future at the appraised value.
Furthermore, the cost approach and income approach (direct capitalization approach and discounted cash flow approach) are used in appraisal
calculations. The appraisal value is determined by the income approach if the subject real estate’s price is estimated with an emphasis on investment
profitability in the market and it is seen as an investment target for qualified institutional investors, etc. The value indicated by the cost approach is used as
an index to verify the value indicated by the income approach.
The “direct capitalization approach” is a method where the net revenue in a certain period is capitalized by the capitalization rate. It is a method ofseeking the value indicated by the income approach (a method of seeking the estimated value of real estate by seeking the sum of the present value ofthe net revenue the real estate is expected to generate in the future).
The “discounted cash flow (DCF) approach” is a method where the net income and terminal value arising in multiple successive periods are
discounted to present value according to their periods and totaled. It is also a method of seeking the value indicated by the income approach.

(Note 4)

“Investment share” is the period-end opinion of value of the respective asset as a percentage of the total amount of the period-end opinion of value ofthe entire portfolio (271 properties in total). The figures are rounded to the first decimal place. Accordingly, the sum total may be exactly 100.0%.

(Note 5)

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

(Note 6)

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

(Note 7)After the end of the 5th fiscal period, the company name was changed to “JLL Morii Valuation & Advisory K.K.” from “Morii Appraisal & Investment
Consulting, Inc.” as of April 1, 2018.

(Note 8)Property name was changed as of April 1, 2018 for the following property.

Use
Office(Note 9)New name

Old name(After change)(Before change)

NMF Utsunomiya Building

NOF Utsunomiya Building

NMF’s acquisition of quasi co-ownership of the beneficial interest in the property was made in two stages. The acquisition price given is the total forboth transactions.

- 60 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

C. Status of Major Tenants
Details concerning the leasing status of major tenants are shown below. Major tenants are those who, as ofFebruary 28, 2018, account for 10% or more of the total leased area of the assets held by NMF as ofFebruary 28, 2018 (in cases where multiple assets have the same tenant, this is calculated using the total leased
area for all assets leased by said tenant).
TenantBusinename(Note 1) ss type

Property nameShinjuku Nomura Building

Contract termination
date

March 31, 2020

Annual rent(m2)(Millions of Yen)

(Note 1)

(Note 2)-

Leasehold andsecurity deposits(Millions of Yen)
(Note 3)117

93

227.0811

8797.8340

27

March 31, 2019

4,649.80

223

32

PROUD FLAT Shirokane Takanawa

February 28, 20192,877.98

182

37

PROUD FLAT Yoyogi Uehara

February 28, 2019

1,128.14

58

6

PROUD FLAT HatsudaiFebruary 28, 2019958.9847

4

PROUD FLAT Shibuya Sakuragaoka February 28, 2019

638.7041

5PROUD FLAT Gakugei Daigaku

February 28, 2019934.3948

5

PROUD FLAT Meguro Gyoninzaka

February 28, 2019834.0652

5

PROUD FLAT Sumida Riverside

February 28, 20193,004.49

145

14

PROUD FLAT Kagurazaka

February 28, 2019

1,793.43

93

2

PROUD FLAT Waseda(Fixed-term lease contract)

NRE Yotsubashi Building (Note 5)-

March 31, 2018
Kojimachi Millennium Garden(Residential building)

1,021.25

Contract shall be extended for
additional terms of two years
unless either party notifies theother party in writing of its
intention to terminate thiscontract no later than six
months prior to the expirationof the initial term or any
extended term thereof.

March 31, 2018

NomuraReal
EstateReal
Partners estateCo., Ltd.
（Note 4)Contract Extension

Leased area

(Fixed-term lease contract)

February 28, 2019

1,428.90

68

6

PROUD FLAT Shinjuku Kawadacho February 28, 2019

1,080.79

55

8

PROUD FLAT Sangen Jaya

February 28, 2019

1,277.82

69

6

PROUD FLAT Kamata

February 28, 2019

1,475.64

71

6

PROUD FLAT Kamata II

3,946.72

199

22

PROUD FLAT Fujimidai

February 28, 2019 Contract shall be extended for
additional terms of one year
February 28, 2019 unless either party notifies the
February 28, 2019 other party in writing of its
intention to terminate thisFebruary 28, 2019 contract no later than threemonths prior to the expiration
February 28, 2019 of the initial term or any
February 28, 2019 extended term thereof.

PROUD FLAT Asakusa Komagata

February 28, 2019

PROUD FLAT Yokohama

February 28, 2019

PROUD FLAT Kamioooka
PROUD FLAT Tsurumi II

PROUD FLAT Shinotsuka
PROUD FLAT Kiyosumi Shirakawa
PROUD FLAT Monzen Nakacho II

752.0939

31,209.5659

9830.5540

41,191.0864

62,222.05110

142,685.39

123

17

3,024.02

137

15

February 28, 2019

4,872.17

182

15

February 28, 2019

2,219.74

113

20

PRIME URBAN Azabu Juban

February 28, 2019

1,196.76

66

6

PRIME URBAN Akasaka

February 28, 2019

1,025.82

54

5

PRIME URBAN Tamachi

February 28, 2019

1,084.56

59

6

PRIME URBAN Shibaura LOFT

February 28, 2019

1,905.39

114

9

PRIME URBAN Yoyogi

February 28, 2019439.5623

2

PRIME URBAN Ebisu II

February 28, 2019

1,098.98

64

5

PRIME URBAN Bancho

February 28, 2019

1,194.85

62

4

PRIME URBAN Chiyoda Fujimi

February 28, 2019793.8742

4PRIME URBAN Iidabashi

February 28, 2019

2,065.46

119

15

PRIME URBAN Ebisu

February 28, 2019

1,296.10

63

6

PROUD FLAT Monzen Nakacho I- 61 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

TenantBusinename(Note 1) ss type

Property namedate

Contract Extension

Leased area

Annual rent(m2)(Millions of Yen)

(Note 1)

(Note 2)

Leasehold andsecurity deposits(Millions of Yen)
(Note 3)PRIME URBAN Naka Meguro

February 28, 2019

1,249.2676

8

PRIME URBAN Gakugei Daigaku

February 28, 2019

1,008.39

49

4

PRIME URBAN Senzoku

February 28, 2019

621.2328

2PRIME URBAN Meguro Riverside

February 28, 2019453.7728

2February 28, 2019

2,904.89

164

15

PRIME URBAN Meguro Ohashi
Hills
PRIME URBAN Meguro Aobadai

February 28, 2019

1,416.69

73

11

PRIME URBAN Gakugei Daigaku II February 28, 2019

1,090.47

60

10PRIME URBAN Naka Meguro II

February 28, 2019

2,362.48

153

36

PRIME URBAN Kachidoki

February 28, 2019

4,419.50

179

18

February 28, 2019

5,687.14

242

38

February 28, 2019

2,026.4494

9

PRIME URBAN Nihonbashi
Yokoyamacho
PRIME URBAN Nihonbashi
Hamacho
PRIME URBAN Hongo Ikizaka

February 28, 2019

662.5833

3PRIME URBAN Hakusan

February 28, 2019

1,069.82

52

4

February 28, 2019

1,723.3888

8

PRIME URBAN Nishi Shinjuku I

February 28, 2019

1,412.72

71

6

PRIME URBAN Nishi Shinjuku II

February 28, 2019

1,162.55

56

5

578.18272507.1128

2

1,007.45

39

3

1,648.40

82

52,733.56

158

21

924.6644

3

February 28, 2019

1,602.52

45

9February 28, 2019823.2643

4

February 28, 2019

1,024.61

45

3

February 28, 2019758.9235

2PRIME URBAN Karasuyama Court

February 28, 2019526.2022

1

PRIME URBAN Chitose Funabashi

February 28, 2019

1,001.28

45

4

PRIME URBAN Yoga

February 28, 2019

1,704.9280

9PRIME URBAN Shinagawa Nishi

February 28, 2019941.5442

7PRIME URBAN Osaki

February 28, 2019

2,043.31

109

10

PRIME URBAN Oimachi II

February 28, 2019

1,730.73

88

8

PRIME URBAN Yukigaya

February 28, 2019

1,454.83

67

6

PRIME URBAN Omori

February 28, 2019

1,124.55

55

6

February 28, 2019

1,042.47

47

4

February 28, 2019

2,177.45

92

10February 28, 2019798.7336

3February 28, 2019

1,665.90

77

5

PRIME URBAN Yotsuya Gaien
Higashi

PRIME URBAN Shinjuku
Naitomachi
NomuraReal
EstateReal
Partners estateCo., Ltd.
（Note 4)Contract termination

February 28, 2019PRIME URBAN Nishi Waseda

February 28, 2019PRIME URBAN Shinjuku Ochiai

February 28, 2019PRIME URBAN Mejiro

February 28, 2019PRIME URBAN Kagurazaka

February 28, 2019PRIME URBAN Sangen Jaya III

February 28, 2019PRIME URBAN Chitose
Karasuyama
PRIME URBAN Sangen Jaya
PRIME URBAN Minami
Karasuyama
PRIME URBAN Karasuyama
Galleria

PRIME URBAN Denenchofu
Minami
PRIME URBAN Nagahara
Kamiikedai
PRIME URBAN Nakano
Kamitakada
PRIME URBAN Takaido

Contract shall be extended for
additional terms of one year
unless either party notifies theother party in writing of its
intention to terminate thiscontract no later than threemonths prior to the expirationof the initial term or any
extended term thereof.

- 62 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

TenantBusinename(Note 1) ss type

Property namedate

Contract Extension

Leased area

Annual rent(m2)(Millions of Yen)

(Note 1)

(Note 2)

Leasehold andsecurity deposits(Millions of Yen)
(Note 3)PRIME URBAN Nishi Ogikubo

February 28, 2019

519.8825

2PRIME URBAN Nishi Ogikubo II

February 28, 2019

2,225.33

99

10

PRIME URBAN Otsuka

February 28, 2019924.9746

4PRIME URBAN Komagome

February 28, 2019

991.9435

4PRIME URBAN Ikebukuro

February 28, 2019

3,924.21

194

19

PRIME URBAN Monzen Nakacho

February 28, 2019

3,154.60

148

17

PRIME URBAN Kameido

February 28, 2019

1,054.34

47

6

PRIME URBAN Sumiyoshi

February 28, 2019792.5137

3

PRIME URBAN Mukojima

February 28, 2019

1,068.31

42

2

PRIME URBAN Kinshi Koen

February 28, 2019

1,837.20

80

8PRIME URBAN Kinshicho

February 28, 2019

991.6246

7

PRIME URBAN Hirai

February 28, 2019

1,095.91

48

5

PRIME URBAN Kasai

February 28, 2019865.6038

3PRIME URBAN Kasai II

February 28, 2019

1,395.54

61

6

PRIME URBAN Kasai East

February 28, 2019

1,884.62

75

7February 28, 2019

1,700.30

72

6February 28, 2019876.7029

2February 28, 2019

3,989.70

137

34

PRIME URBAN Musashi Koganei

February 28, 2019

5,763.00

132

13

PRIME URBAN Musashino Hills

February 28, 2019

2,961.06

89

18

PRIME URBAN Koganei Honcho

February 28, 2019PRIME URBAN Kumegawa

February 28, 2019PRIME URBAN Itabashi
Kuyakushomae
PRIME URBAN Asakusa
PRIME URBAN Machiya South
Court

NomuraReal
EstateReal
Partners estateCo., Ltd.
（Note 4)Contract termination

PRIME URBAN Musashi Kosugi
comodoFebruary 28, 2019

Contract shall be extended for
additional terms of one year
unless either party notifies theother party in writing of its
intention to terminate thiscontract no later than six
months prior to the expirationof the initial term or any
extended term thereof.

1,561.16

55

72,548.93

107

35

3,527.70130

27

1,635.0466

7

1,687.35

70

11

PRIME URBAN Kawasaki

February 28, 2019PRIME URBAN Shinyurigaoka

February 28, 2019PRIME URBAN Tsurumi Teraya

February 28, 2019

952.0637

3

PRIME URBAN Urayasu

February 28, 2019

1,243.84

53

7

PRIME URBAN Gyotoku I

February 28, 2019

1,107.12

41

4

PRIME URBAN Gyotoku II

February 28, 2019

1,244.00

47

3

PRIME URBAN Gyotoku Ekimae

February 28, 2019

778.1933

3PRIME URBAN Gyotoku Ekimae II February 28, 2019907.1739

5PRIME URBAN Gyotoku III

February 28, 2019

1,720.60

63

6

PRIME URBAN Nishi Funabashi

February 28, 2019

1,196.54

51

5

PRIME URBAN Kawaguchi

February 28, 2019

2,374.96

104

27

PROUD FLAT Hatchobori

February 28, 2019992.7555

5PROUD FLAT Itabashi Honcho

February 28, 2019

1,109.90

44

5

PRIME URBAN Meguro Mita

February 28, 2019

1,065.79

53

5

February 28, 2019

1,446.82

70

5

PROUD FLAT Omori Ⅲ

February 28, 2019

1,390.61

68

7

PROUD FLAT Kinshicho

February 28, 2019

1,022.36

50

5PRIME URBAN Shinkawa

February 28, 2019

3,458.39

133

39

PRIME URBAN Toyosu

February 28, 2019

6,687.76

327

35

February 28, 2019

3,443.17

175

20

February 28, 2019

1,342.81

65

6

PRIME URBAN Gakugei Daigaku
Parkfront

PRIME URBAN Nihonbashi
Kayabacho
PRIME URBAN Yoga II- 63 -

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

TenantBusinename(Note 1) ss type

Property nameContract termination
date

Leased area

Annual rent(m2)(Millions of Yen)

(Note 1)

(Note 2)Contract Extension

PRIME URBAN Musashi Koganei II February 28, 2019
Total
(Note 1)--

Leasehold andsecurity deposits(Millions of Yen)
(Note 3)2,010.1783

9200,748.42

9,355

1,283

In the case of assets with a so-called pass-through master lease agreement, where the rent received from the lessee in the master lease agreement is thesame amount as the rent that the lessee receives from the end-tenant, the end-tenant is shown as the tenant, and the lessee is not shown as a tenant.
However, for residential facilities, the master lessee is shown as the tenant, and the leased area shown is that that actually rented and subject to thetenant agreements with end tenants.

(Note 2)

“Annual rent” is calculated by multiplying by 12 the sum of monthly rent and common area charges in lease agreements for each property actuallyconcluded with end-tenants that are valid as of the last day of February 2018 (this does not include parking space or other fees stated in parking spacelease agreements or other such agreements signed in addition to the tenant lease agreement. If common-use space, etc. is leased based on the leaseagreement, the rent for such is included, and if rent includes an amount equivalent to the fee for use of parking space, such amount is included. In
addition, if the master lessee has a rent-guaranteed master lease, the rent for the space covered in said lease is based on the rent, etc., in the leaseagreement concluded with the master lessee.); amounts less than one thousand yen are truncated. Accordingly, the sum of each tenant’s annual rent
may not be exactly the same as the figure given the “Total” row. Furthermore, regarding tenants who have been exempt from rent payment for acertain period of time in their agreements, such exemption period is not considered in the table above.

(Note 3)For residential facilities, the lessee of the master lease agreement shown in the “Tenant name” column receives leasehold and security deposits fromthe end-tenants and deposits this amount with NMF or the trustee as the leasehold and security deposits of the master lease agreement.

(Note 4)This client is an interested party of NMF as specified in the Investment Trust Act.

(Note 5) After the end of the 5th fiscal period (February 28, 2018), the contract was changed to the fixed-term lease contract with termination date of March 31,
2021 regarding the total leased area as of March 14, 2018.

D. Status of Major Properties
Not applicable.
E. Overview of Leasing to Interested Parties
As of February 28, 2018, some of the assets held by NMF at the same date were leased to interested parties
as defined in the Investment Trust Act.
The following is an overview of the status of leasing of said assets to interested parties as defined in theInvestment Trust Act.
Tenant name

Property name

Nomura Real Estate Partners
Co., Ltd.

Shinjuku Nomura Building
NRE Yotsubashi Building
Total of PROUD FLAT Shirogane-Takanawa,
and 115 others
Shinjuku Nomura Building
NMF Yokohama Nishiguchi Building
NRE Yotsubashi Building

Nomura Real Estate
Development Co., Ltd

Nomura Real Estate Life &Megalos Kanagawa
Sports Co.,Ltd.
Nomura Real Estate Urban Net
Shinjuku Nomura Building
Co., Ltd.
NMF Gotanda Ekimae Building
NMF Kichijoji Honcho Building
NMF Kawasaki Higashiguchi Building
NMF Yokohama Nishiguchi Building
NRE Nishi-Umeda Building
Geo Akamatsu Co., Ltd.
NRE Yotsubashi Building
Nomura Real Estate Amenity
NRE Yotsubashi Building
Service Co., Ltd.

- 64 -

Leased area(m2)
1,021.25
1,024.91
198,702.26
6,625.91
94.83
1,369.84
6,217.85
1,740.51
198.90269.37216.54373.27404.41357.0680.01

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 5th Fiscal Period Ended February 28, 2018

F. Collateral
Assets held by NMF and offered as collateral at the end of the 5th period under review are as follows.

Property Name

Type ofcollateral

Konami Sports Club Fuchu
Sagamihara Shopping Center

Mortgage
Mortgage

Secured party
Konami Sports Club Co., Ltd. (Note)
Ito-Yokado Co., Ltd. (Note)(Note) The secured claims are rights held by the security interest holders to claim the return of leasehold deposits.

- 65 -

Recent appraisal
value(Millions of Yen)
3,400
6,900