ESG Annual Report
2024.7
Nomura Real Estate Master Fund, Inc.

ESG Annual Report 2024.7

C o n t e n t s
Policies and Management Structure

P.3

Materiality

P.10

Stakeholder Engagement

P.16

Standards

P.17

ESG Disclosure Policy and Reporting Framework

P.30

International Initiatives and Certifications

P.32

Climate Change

P.38

Environmental Performance

P.48

Raising the Proportion of "Green" Properties in Our Portfolio

P.51

GHG Reductions

P.58

Water Resources and Waste Reduction, etc

P.64

Solving Social Issues Through Real Estate
Investment

P.67

Safety and Dignity

P.72

Physical and Mental Health

P.77

Affluent Economy

P.84

Attractive Communities

P.86

Governance

P.92

Compliance

P.98

Risk Management

P.103

Supplier Management

P.106

Sustainability Finance

P.107

This report was prepared based on information on NMF official website
as of July 2024.
For the more updated information on NMF’s ESG activities, please refer
to its official website.

Policies and Management Structure

Policies andManagement Structure

Materiality

Stakeholder

Standards

Engagement(GRI Standards)

Standards

ESG Disclosure Policy and(SASB Standards)

Reporting Framework

NMF$s Approach to Sustainability
Based on the recognition that it is essential for our sustainable growth to realize a sustainable society, we believe our contribution tosolving social issues through our business is in line with our fundamental philosophy of :securing stable pro;t over the medium tolong term< and :steadily achieving growth in assets under management.< Consequently, it would contribute to improving ourunitholder value.
With this in mind, alongside its asset management company, Nomura Asset Management Company Co., Ltd., NMF has carried out
asset management that gives due consideration to ESG issues since its founding. We set goals or KPIs for ESG issues of particularimportance (hereinafter referred to as :materiality<) and are promoting eNorts to achieve the goals.

Net zero greenhouse gas (GHG) emissions by 2050
We recognize that :countering climate change< is of especially high importance among our materiality issues.
We believe that successful transition to a decarbonized society through achieving net zero greenhouse gas (GHG) emissions will
eventually have a big impact on our medium- to long-term performance. Based on this idea, in October 2022, we set the goal ofachieving net zero greenhouse gas (GHG) emissions by 2050. In addition, In October 2023, we revised our interim GHG reduction
target upwards, aiming for 80% reduction in greenhouse gas (GHG) emissions by 2030 (compared with the 2019 level).Towardachieving that goal, we have been working to systematically reduce GHG emissions to the minimum so that our absolute emissionsof GHG will become closer to zero. We are doing this by, for example, actively introducing energy-saving facilities and electricity
generated from renewable energy sources for properties that we own.

We will continue to actively promote our sustainability initiatives based on the policies, targets and KPIs set for each materiality
issue, as well as promoting bidirectional communication and working together with our unitholders, tenants, employees, supply
chains, local communities and other stakeholders through our ESG disclosures.

Shuhei Yoshida
Executive Director

3Sustainability Policy
NREAM recognizes that integration of sustainability activities is indispensable in order to enhance value for unitholders over the
medium- to long-term. Based on the Sustainability Policy(Group`s Vision of 2050) of the Nomura Real Estate Group, we will integratesustainability activities throughout all its real estate investment management services.
Nomura Real Estate Asset Management Co., Ltd. has set Purpose Values as the overarching concept of its sustainability
policy. Click here for details

STRIVING WITH CONVICTION
towards a meaningful future for us all
We, as a ;duciary of investor capital, will keep generating new value by instilling our real estate asset management business withsustainability to ensure the continued preservation of our earth and our society.

Through our daily eNorts in sustainable asset management, we will preserve our environment and bring revitalization to ourcommunity, thereby allowing local economies and industries to develop in an enduring way.

We believe that sustainability is key to our business, as we contribute to building the growth of this society.
By generating and expanding this sustainability cycle with everyone, we are striving with conviction towards a meaningful future for
us all.

4

Stakeholder
We believe collaboration with stakeholders is crucial to creating a more meaningful future.

Materiality
We strive forward with these materiality issues to create a more meaningful future.

1. Making the foundation to continue our action.
1) Engagement and collaboration
To improve both economic and social value, we will regularly hold dialogue with stakeholders and collaborate with them.

2) Expand the sustainability cycle through information disclosure
By disclosing sustainability-related information, we will contribute to the growth of the sustainability cycle.

3) Cultivation of sustainability culture
We will build eNective in-house systems, encouraging personal relevance to each employee in sustainability actions.

52. Actions focusing on PEOPLE and COMMUNITY
1) Ensuring the safety and security of Real Estate
To prepare for intensifying natural disasters, we will improve the resiliency of real estate, which is the foundation of society, fromboth tangible (building facilities) and intangible (maintenance/management) sides.

2) Revitalizing local communities
We will promote networking and revitalize communities, utilizing its landscape and contribute to building local culture.

3) Diversity and Inclusion
We aim to foster a more meaningful future, where diverse perspectives and values are embraced, everyone`s dignity is protected,
and no one is left behind. In addition, we will maintain a workplace environment where well-being is promoted.

3. Actions for coexisting with nature
1) Mitigation of global warming
We will actively improve the energy ecciency and adopt renewable energy in our properties, which aims to meet the ZEB/ZEH
standard.
Our goal is to achieve GHG net zero target by 2050, both in our company and funds.

2) Adaptation to climate change
We will take measures to deal with both physical risk and transition risk, such as intensi;ed natural disaster and changes in ourlifestyles moving toward decarbonized society.

3) Transition to circular economy
We will always consider the impact on nature and make eNorts to realize the circular economy by utilizing water eNectively,
preserving environment and reducing waste.

Our 10 Declarations
Turn electricity into renewable

Promote paperless

Power saving ②: Setting the air

energyTurn stationery, etc. into eco-conditioning temperature

Contributing to recycling byfriendly products

Contribute to tree planting using

strengthening garbage separation

Power saving ①: Turn oN lights

search engines

The company uses eco bags

frequently

Reuse unnecessary ;xtures asmuch as possible

Eliminate plastics from guest
drinks6

Sustainability Promotion Structure
Nomura Real Estate Asset Management Co., Ltd. (NREAM), an asset management company for NMF, has in place the following
structure to promote initiatives under its Sustainability Policy in a constant and organized manner.

（1）Board of Directors
The Board of Directors formulates and revises the Sustainability Policy, sustainability promotion rules and other in-housepolicies and rules. Based on the sustainability promotion rules, the Board of Directors receives reports on the performanceof initiatives related to sustainability throughout the year at least once a year from the Chief Sustainability Occer. The
Board of Directors continually carries out monitoring of the initiatives related to sustainability based on those reports.

（2）Chief Sustainability OJcer
The President and Executive occer, a member of the Investment Committee, is appointed as the Chief Sustainability Occer
who designates funds that focus heavily on the promotion of sustainability from among the funds managed by the AssetManagement Company. (NMF falls under the category of designated funds.) The Chief Sustainability Occer is involved indecision-making at the Investment Committee as the chief occer for sustainability and reports to the Board of Directors atleast once a year based on the sustainability promotion rules.

（3）Sustainability Operating OJcer
The Head of NMF Investment Management Group who controls NMF`s investments is appointed as the Sustainability
Operating Occer. As the person responsible for the execution of sustainability promotion, the Sustainability Operating
Occer convenes the Sustainability Promotion Committee, submits matters for discussion and reports to the Investment
Committee.

（4）Investment Committee
The Investment Committee is the decision-making body concerning NMF`s investments. It is chaired by the President andExecutive Occer and is comprised of Executive Occers. Based on the sustainability promotion rules, the Investment
Committee deliberates on and determines targets, measures and other matters regarding NMF`s sustainability at least twicea year.

（5）Sustainability Promotion Committee
The Sustainability Promotion Committee is a body responsible for setting sustainability targets, measures and othermatters, making recommendations and conducting monitoring (including risk management). It is chaired by the
Sustainability Operating Occer The Committee is convened at least four times a year in accordance with the sustainability
promotion rules.

7

＜Sustainability Promotion Structure＞＜Annual Schedule＞

Environmental Management System (EMS)
NMF became the ;rst J-REIT to be certi;ed and registered for :EcoAction 21< Program.

8

Sustainability Promotion Manuals
Nomura Real Estate Asset Management Co., Ltd. (NREAM) formulated sustainability promotion manuals to provide basic policies
with regard to and clarify procedures for its sustainability promotion initiatives, including those aimed at constantly monitoring andreducing the volume of energy and water consumption and greenhouse gas and waste emissions as well as those aimed atpromoting green procurement through external collaboration. Through the distribution of these manuals, NREAM is striving toenhance the eNectiveness of its sustainability initiatives.

＜Overview of Sustainability Promotion Manuals＞
TitlesContent

Manuals for energy
saving,
GHG reduction,water saving andwaste reduction

Basic policies for the constant monitoring of and achieving ongoing reductions in consumption

Green procurement
manualAdditional criteria to be assessed in the course of product and service procurement (energy-saving

and emission volumes
Procedures for the monitoring, management and analysis of consumption and emission volumes
and reporting to the Sustainability Promotion Committee

potential, vendors` eNorts to reduce the use of substances leading to environmental pollution,
product durability and recyclability and other factors associated with environmental load
reduction)
Additional criteria to be assessed in the course of the selection and evaluation of suppliers basedon their involvement in sustainability initiatives (sustainability promotion structures,
collaboration with environmental load reduction, etc.)

Sustainability Risk Assessments
Our assets under management are subject to periodic sustainability risk assessments.
Whenever assessment results reveal a critical sustainability risk, in-house specialists charged with assessments propose
improvement measures at the Sustainability Promotion Committee. In this way, we are ensuring that any sustainability risk isproperly identi;ed, monitored and addressed.
Sustainability Risk Assessments are carried out in rotation for about 5 years for all properties.

Training for O?cers and Employees
We aim to empower our occers and employees to play greater roles in sustainability promotion and help raise their sustainability
awareness, to this end providing them with special training. At least once a year, these individuals attend training sessions designed
to call their attention to the importance of sustainability, address the latest trends in sustainability initiatives and brief them on thestatus of NMF`s sustainability measures and targets and the progress it has made. These training sessions thus help attendees stayacutely aware of and properly updated about various sustainability issues.

9Materiality

Policies andManagement Structure

Materiality

Stakeholder

Standards

Engagement(GRI Standards)

Standards

ESG Disclosure Policy and(SASB Standards)

Reporting Framework

Materiality
ESG Materiality Issues Identi2ed by NMF
At NMF, we recognize that realizing a sustainable society is essential for our sustainable growth. Based on such recognition, we
believe that our contribution to solving social issues through our business is in line with our fundamental philosophy of ?securing
stable pro@t over the medium to long termA and ?steadily achieving growth in assets under management,A ultimately helping to
improve our unitholder value. In order to engage in speci@c sustainability initiatives, we engaged in repeated discussions in
consideration of the expectations and interests of our stakeholders as well as the impact on our business and performance, andidenti@ed ESG issues (materiality) that are particularly important for us as shown below.

Materiality, Policy and Target

Supporting SDGs

Raising the proportion of /green0 properties in our investment portfolio

Enviroment
E

TargetRaise the ratio of properties acquired green certi4cation (withthree stars or more or equivalent to) to70% by 2030

KPI

‧Ratio of green certi4cation (with three stars or more orequivalent to) ※‧Ratio of Green Certi4cation※ Green certi)cation (with three stars or more or equivalent to) refers to DBJ
Green Building Certi)cation (three stars or more) or BELS Certi)cation (threestars or more), or CASBEE for Real Estate (B+ or higher )Reported
Location

Raising the Proportion of AGreenB Properties in Our Portfolio

10Materiality, Policy and Target

Supporting SDGs

Countering climate change

Target‧Achieve net zero greenhouse gas (GHG) emissions by 2050
‧Achieve 80% reduction in greenhouse gas (GHG) emissions by
2030 (compared with the 2019 level)

KPI

Enviroment

Reported
Location‧Greenhouse gas (GHG) emissions

Environmental Measures/Counting Climate Change

E
Countering water resources

Target‧Achieve 10% reduction in water use per Qoor area (intensity)
in our portfolio by 2030 compared with the 2016 level.

KPI

Reported
Location‧Water use per Qoor area (intensity)

Environmental Measures/Preserving Water Resources

Maintaining safety and dignity

Policy and

Maintain safety and dignity through preparation against natural

Targetdisasters, etc. (resilience), measures for children and the fallingbirthrate and aging population, realization of diversity andinclusion, and respect for human rights

KPI‧Utilization of disaster alert systems (Development status);
installation of disaster kits in warehouses, elevators, etc.
(Number of properties installing such kits and installation rate);
installation of damp proof barriers for properties with highQood damage risk (Number of properties installing suchbarriers and installation rate)‧Participation in \Dining Room for Children\ events incollaboration with tenants of GEMS, etc. (Number of events,
number of participating tenants, and number of provided
meals)‧Diverse talent composition at the Asset Management Company

SocietyS(Background, etc. of fund management members)‧Provision of residential space to foreigners (Number andproportion of residential units for foreigners); posting ofnotices in multiple languages in common areas of residential
properties (Number of units responding and response rate)‧Installation of universal toilets and toilets for persons withdisabilities (Number and proportion of properties installingsuch toilets)

ReportedSocial Responsibility/Safety and Dignity

Location

Realizing physical and mental health

Policy andTargetRealize physical and mental health through a healthy and safe
life and work style (health & safety) and a comfortable and highly
convenient environment (wellness)

KPI‧Invitation of blood donation events (Number of properties
holding events and number of participants)

11

Materiality, Policy and Target

Supporting SDGs

‧Promotion of Qexible work styles at the Asset Management
Company (Paid leave acquisition rate, etc.)
KPI‧Installation of delivery boxes (Number of properties installingdelivery boxes and installation rate)‧Tenant satisfaction assessment survey (Percentage of\satis4ed\ and \somewhat satis4ed\ in overall satisfaction)

ReportedSocial Responsibility/Physical and Mental Health

Location

Realizing an aDuent economy

Policy andRealize an aauent economy through talent empowerment,

Targetenhancement of productivity, and revitalization of regional
economies and industry (innovation)

KPI

SocietyS

Reported
Location‧Implementation of property manager (PM) commendation
programs (Date of program implementation, award-winningcases)‧Enhancement of training programs, encouragement ofacquisition of quali4cations, and promotion of job rotation at
the Asset Management Company (Training hours per employee
and outline of training, status of employees with quali4cations)‧Utilization of recycled goods (Implemented areas, CO2
reduction amount)‧Collection of clothing at residential facilities (Collection
volume, CO2 reduction amount)

Social Responsibility/Aauent Economy

Forming attractive communities

Policy andTargetForm attractive communities through formation andrevitalization of community attractions and cultures (identity),
restoration and formation of local communities, and easy-tomove environments (mobility)

KPI‧Holding of regional invigoration events at the GEMS series, etc.
(Number of prefectures where events were held, number ofparticipating tenants, number of used foodstues)‧Holdings of exchange events and tenant gathering seminars at
owned properties (Number of events and seminars, number ofparticipating companies)‧Introduction of shared mobility (Total travel distance, time andCO2 emissions amount reduced through use)

Reported
Location

Social Responsibility/Attractive Communities

Strengthening corporate governanceTargetGovernanceG‧Establish an eeective sustainability promotion system throughappropriate operation of PDCA cycle as well as a governancesystem which ensures impartiality and diversity of thedirectors.
‧Promote investment management that prioritizes theunitholdersf interest by aligning the interests of theunitholders, NMF and the Asset Management Company byintroducing asset management fees linked to management
performance.
‧Aim to improve management performance throughappropriate management based on the market research

12Materiality, Policy and Target
Target

KPI

Supporting SDGs

function of the Asset Management Company and selective
investment backed by our own valuation method at the time ofacquisition.

‧NMFfs ① Outside director ratio ② Female director ratio ③
Board of directorsf meeting attendance ratio‧External evaluation of the sustainability promotion system

Reported

Governance/Governance of the Investment Corporation

Location

Policies and Management Structure
Investment Management Structure Prioritizing Unitholdersf
Interest

Establishment of an eHective internal control system

Target‧Ensure legal compliance through raising awareness ofcompliance.
‧Prevent risks to the soundness of management and business
continuity through appropriate risk management such as
elimination of conQicts of interest in transactions withinterested parties.
‧Ensure the eeectiveness of internal control process throughinternal audits.

Governance
G
KPI‧Compliance training attendance rate(Target:100%)‧Risk assessments frequency(Target: once a year)‧BCP training frequency(Target: once a year)‧Safety drill frequency utilizing safety con4rmation
system(Target: 4 times a year)‧Internal audit frequency(Target: once an year)

Reported
Location

Governance/Compliance
Governance/Risk Management

Stakeholder engagement and timely and appropriate information disclosure

Target‧Build solid relationships with and win the trust of all
stakeholders by engaging in the timely, appropriate andproactive disclosure of 4nancial/non-4nancial information andby maintaining constructive dialogue

KPI‧Number of IR meetings‧ESG rating assessment

Reported

Stakeholder Engagement

Location

Disclosure Policy
International Initiatives and Certi4cations

13

Identifying Process on Materiality Issues
Process 1：Selection of Issues to Be Considered
We have selected issues of particular concern in terms of securing NMFPs sustainable growth from among a broad range ofenvironmental, social and governance (ESG) issues. This selection was made in reference to various guidelines, such as SASB(Note1)
Standards and GRI Guidelines (Note 2), United Nations SDGs(Note 3), and evaluation criteria speci@ed by ESG rating agencies,
including MSCI and Sustainalytics, as well as the status of initiatives undertaken by our peers in the same industry.
（Note 1） The Sustainability Accounting Standards Board:
A U.S.-based non-pro)t organization aimed at helping businesses identify industry-speci)c materiality issues that could aOect the judgment of rational investors andengaging in the development of standards for sustainability-related information disclosure（Note 2） The GRI Guidelines:
International guidelines concerning sustainability reporting formulated by GRI (Global Reporting Initiative) which is an oScial body of the UNEP as well as a non-pro)t
organization whose mission is to create and disseminate a sustainability report.
（Note 3） Sustainable Development Goals:
Adopted at a United Nations Summit in September 2015, SDGs comprise 17 goals and 169 targets for international initiatives to be undertaken to achieve United Nations\2030 agenda for sustainable development.

＜SDGs 17 Goals＞

Process 2：Determining Priorities and Preparing a Materiality Matrix
We have determined priorities among the selected issues in line with their materiality by assessing their impact on NMFPs businessand performance on various fronts, including its corporate philosophies, @nancial results and business plans. In the course of thisprocess, we have also examined the issues from the perspectives of a variety of stakeholders within and outside the Nomura Real
Estate Group. Each issue has thus been prioritized in light of its materiality to NMFPs sustainable growth from two aspectsWthe
opportunity arising from it and the risk associated with itWwith its positioning being indicated in NMFPs materiality matrix.

Process 3：Discussion for Approval on Identifying NMFFs Materiality Issues in theInvestment Committee
Having determined their priorities, we have discussed these issues at the Sustainability Promotion Committee and oXcially
positioned them as NMFPs materiality issues associated with sustainability after obtaining the approval of the Investment
Committee, which serves as the highest decision making body.

14

＜Materiality Matrix＞

To further strengthen initiatives in the Society (S) @eld, we considered fundamental initiatives for solving social issues that can only
be implemented by real estate owners and revised our materiality issues.
See below for the identi@cation process and other details.

15

Stakeholder Engagement

Policies andManagement Structure

Materiality

Stakeholder

Standards

Engagement(GRI Standards)

Standards

ESG Disclosure Policy and(SASB Standards)

Reporting Framework

Stakeholder Engagement
Basic Policy
As an investment corporation, our business activities are supported by relationships with a variety of stakeholders. With this in mind,
we believe that ful;lling our social responsibilities, such as helping create a sustainable society, is essential to our ongoing
operations.
Having identi;ed unitholders, tenants, business partners and employees as well as residents of neighboring communities as our key
stakeholders, we will strive to win their trust by maintaining constructive dialogue and sincerely addressing their expectations andrequests. In these ways, we will improve NMFDs operations and ESG-related initiatives.

Communication with Stakeholders

16

Standards (GRI Standards)

Policies andMateriality

Management Structure

Stakeholder

Standards

Engagement(GRI Standards)

Standards

ESG Disclosure Policy and(SASB Standards)

Reporting Framework

Universal Standards
TOPIC

Disclosure
102

1

Organizational pro.leLocation

General Disclosures

1

Name of the organization

Corporate Pro.le2

Activities, brands, products, and services

Strength of NMF
Disclosure Materials（Fnancial Information）
Portfolio Summary

3

Location of headquarters

Corporate Pro.le（Pro.le and history）

4

Location of operations

Corporate Pro.le（Pro.le and history）

5

Ownership and legal form

Corporate Pro.le（Pro.le and history）

6

Markets served

Articles of Incorporation
Portfolio Summary

7

Scale of the organization

Corporate Pro.le（Director and Employee
Information）
Disclosure Materials（Fnancial Information）
Asset Management Company
ESG Management

17

TOPIC

Disclosure

Location

102 General Disclosures
1

Organizational pro.le8

Information on employees and other

Corporate Pro.leworkers（Director and Employee Information）
Asset Management Company
ESG Management

9

Supply chain

Supplier Management
Structure

10

Signi.cant changes to the organization and

Not applicableits supply chain
11

Precautionary Principle or approach

Policies and Management Structure
Governance（Compliance）
Governance（Risk Management）

12

External initiatives

International Initiatives and Certi.cations
Signatory to Initiatives

13

Membership of associations

International Initiatives and Certi.cations
Asset Management Company
Corporate Pro.le2

Strategy

14

Statement from senior decision-maker

Policies and Management Structure

15

Key impacts, risks, and opportunities

Policies and Management Structure
ESG Materiality Identi.ed by NMF
Climate Change

3

Ethics and integrityv

16

Values, principles, standards, and norms of

Policies and Management Structure

behavior
Asset Management Company
Corporate Philosophy
Nomura Real Estate Group
NREG Code of Action
17

Mechanisms for advice and concerns about

Governanceethics（Risk Management）
Asset Management Company
ESG Management

4

Governance18

Governance structure

Governance
Policies and Management Structure

19

Delegating authority

Policies and Management Structure

18

TOPIC

Disclosure

Location

102 General Disclosures
4

Governance

20

Executive-level responsibility for economic,

Policies and Management Structure

environmental,
and social topics
21

Consulting stakeholders on economic,
environmental,
and social topics

Stakeholder Engagement
Policies and Management Structure

22

Composition of the highest governance bodyand its committees

Governance23

Composition of the highest governance bodyand its committees

Governance24

Nominating and selecting the highest
governance body

Governance25

ConXicts of interest

Governance（Compliance）
Capital and Major Unitholders
Structure

26

ConXicts of interest

Policies and Management Structure

27

Collective knowledge of highest governance

-

body
28

Evaluating the highest governance body[s-performance
29

Identifying and managing economic,
environmental,
and social impacts

30

Policies and Management Structure
ESG Materiality Identi.ed by NMF

E\ectiveness of risk management processes

Policies and Management Structure
Governance(risk management)

31

Review of economic, environmental,andsocial topics

Policies and Management Structure

32

Highest governance body[s role insustainability reporting

Policies and Management Structure

33

Communicating critical concerns

Policies and Management Structure
Governance34

Nature and total number of critical concerns-

35

Remuneration policies

Governance

36

Process for determining remuneration

Governance37

Stakeholders[ involvement in remuneration-

19

TOPIC

Disclosure

Location

102 General Disclosures
38
39

Percentage increase inannual total

Annual total compensation ratio-

40

List of stakeholder groups

Stakeholder Engagement41

Collective bargaining agreements

Not applicable as NMF does not have
employees.

-

compensation ratio
5

Stakeholder
engagement

Asset Management Company
ESG Management（Creating Fair Work Environments with
Meaningful Work）
42

Identifying and selecting stakeholders

Stakeholder Engagement

43

Approach to stakeholder engagement

Stakeholder Engagement44

Key topics and concerns raised

ESG Materiality Identi.ed by NMF
Stakeholder Engagement

6

Reporting practice45

Entities included in the consolidated.nancial statements

ESG Disclosure Policy and Reporting
Framework46

De.ning report content and topic
Boundaries

ESG Disclosure Policy and Reporting
Framework

47

List of material topics

ESG Materiality Identi.ed by NMF

48

Restatements of information

Not applicable

49

Changes in reporting

Not applicable

50

Reporting period

ESG Disclosure Policy and Reporting
Framework

51

Date of most recent report

ESG Disclosure Policy and Reporting
Framework

52

Reporting cycle

ESG Disclosure Policy and Reporting
Framework

53

Contact point for questions regarding theESG Disclosure Policy and Reporting

reportFramework

54

Claims of reporting in accordance with the
GRI Standards

ESG Disclosure Policy and Reporting
Framework

55

GRI content index

GRI Standards

56

External assurance

-

103
1

General requirements forreporting themanagement approach

1

Management Approach

Explanation of the material topic and its
Boundary

20

ESG Materiality Identi.ed by NMF

TOPIC

Disclosure

Location

102 General Disclosures
General requirements forreporting the2

The management approach and its
components

management approach

ESG Materiality Identi.ed by NMF

International Initiatives and Certi.cations
Environmental Measures
Social Responsibility
Asset Management Company
ESG Management
Governance
Securing an Investment Management
Structure That Prioritizes Unitholders[Interest
Stakeholder Engagement
3

Evaluation of the management approach

Policies and Management Structure
Governance

Topic-speci3c Standards
TOPIC

Disclosure
200

201

Economic Performance1

Location

Economic

Direct economic value generated and-distributed
2

Financial implications and other risks andEnvironmental Measures

opportunities due to climate change
Green Portfolio
3De.ned bene.t plan obligations and other-retirement plans
4

Financial assistance received from-government
202

Market Presence

1

Ratios of standard entry level wage by-

gender compared to local minimum wage
2

Proportion of senior management hired-from the local community
203

Indirect Economic

1

Impacts

Infrastructure investments and services-

supported2

Signi.cant indirect economic impacts

21-

TOPIC

Disclosure
200

Location

Economic

204

Procurement Practices

1

Proportion of spending on local suppliers-

205

Anti-corruption

1

Operations assessed for risks related tocorruption-

2

Communication and training about anticorruption policies and procedures

Governance（Compliance）

3

Con.rmed incidents of corruption andactions taken-

1

Legal actions for anti-competitive behavior,anti-trust, and monopoly practices-

206

Anti-competitive
Behavior

300
301

原材料

Environmental

1

Materials used by weight or volume

Environmental Measures（Environmental Performance）

2

Recycled input materials used-3

Reclaimed products and their packaging-

materials
302

Energy1

Energy consumption within the organization

Environmental Measures（Environmental Performance）

2

Energy consumption outside of the-organization
3

Energy intensity

Environmental Measures（Environmental Performance）

4

Reduction of energy consumption

Environmental Measures（Environmental Performance）

5

Reductions in energy requirements of-products and services
303

Water and Eduents

1

Water withdrawal by source

Environmental Measures（Environmental Performance）

2

Water sources signi.cantly a\ected by-withdrawal of water

304

Biodiversity

3

Water recycled and reused-1

Operational sites owned, leased, managed-

in, or adjacent to, protected areas and areasof high biodiversity value outside protectedareas
2

Signi.cant impacts of activities, products,-

and services on biodiversity
3

Habitats protected or restored

22-

TOPIC

Disclosure
200
4Location

Economic

IUCN Red List species and national-

conservation list species with habitats inareas a\ected by operations
305

306

Emissions

Eduents and Waste

1

Direct (Scope 1) GHG emissions

Environmental Measures（Environmental Performance）

2

Indirect (Scope 2) GHG emissions

Environmental Measures（Environmental Performance）

3

Other indirect (Scope 3) GHG emissions

Environmental Measures（Environmental Performance）

4

GHG emissions intensity

Environmental Measures（Environmental Performance）

5

Reduction of GHG emissions

Environmental Measures（Environmental Performance）

6

Emissions of ozone-depleting substances
(ODS)

-

7

Nitrogen oxides (NOX), sulfur oxides (SOX),
and other signi.cant air emissions-

1

Water discharge by quality and destination-

2

Waste by type and disposal method

Environmental Measures（Environmental Performance）

3

Signi.cant spills-

4

Transport of hazardous waste-

5

Water bodies a\ected by water discharges-

and/or runo\
307

Environmental

1Compliance
308

Environmental

Non-compliance with environmental laws-

and regulations
1

Assessment

New suppliers that were screened using-

environmental criteria
2

Negative environmental impacts in the

Supplier Management

supply chain and actions taken
400
401

Employment

Social1

New employee hires and employee turnover

ESG Management（Human Capital）

2

Bene.ts provided to full-time employeesthat are not provided to temporary or part-

ESG Management（Creating Fair Work Environments withtime employees

Meaningful Work）

Parental leave

ESG Management

3（Promotion of Diversity）

23

TOPIC

Disclosure
200

402

Labor/Management

1

Relations403

Occupational Health

Location

Economic

Minimum notice periods regarding-

operational changes
1and Safety

Workers representation in formal joint-

management-worker health and safetycommittees
2

Types of injury and rates of injury,
occupational diseases, lost days, and

ESG Management（Health and Safety of Employees）

absenteeism, and number of work-related
fatalities

404

Training and Education

3

Workers with high incidence or high risk of
diseases related to their occupation-

4

Health and safety topics covered in formal
agreements with trade unions-

1

Average hours of training per year per
employee

ESG Management（High Degree of Specialization）

2

Programs for upgrading employee skills andtransition assistance programs

ESG Management（High Degree of Specialization）

3

Percentage of employees receiving regularperformance and career development

ESG Management（High Degree of Specialization）

reviews
405

Diversity and Equal

1

Opportunity

Diversity of governance bodies andGovernanceemployees
ESG Management（Promotion of Diversity）
2

Ratio of basic salary and remuneration of
women to men-

406

Non-discrimination

1

Incidents of discrimination and corrective
actions taken-

407

Freedom of Association
and Collective

1

Operations and suppliers in which the rightto freedom of association and collective-

Bargaining
408

Child Labor

bargaining may be at risk
1

Operations and suppliers at signi.cant risk-

for incidents of child labor
409

Forced or Compulsory

1

Labor

Operations and suppliers at signi.cant risk-

for incidents of forced or compulsory labor

410

Security Practices

1

Security personnel trained in human rights
policies or procedures-

411

Rights of Indigenous
Peoples1

Incidents of violations involving rights ofindigenous peoples-

412

Incidents of violations
involving rights of1

Operations that have been subject tohuman rights reviews or impact-

indigenous peoples

assessments

24

TOPIC

Disclosure
200
2

Economic

Employee training on human rights policies
or procedures

3

Location

ESG Management（High Degree of Specialization）

Signi.cant investment agreements and-contracts that include human rights clausesor that underwent human rights screening
413

Local Communities

1

Operations with local community

Social Responsibility

engagement, impact assessments, anddevelopment programs
2

Operations with signi.cant actual and-potential negative impacts on local
communities
414

Supplier Social
Assessment

1

New suppliers that were screened usingsocial criteria-

2

Negative social impacts in the supply chain
and actions taken

Supplier Management

415

Public Policy

1

Political contributions-

416

Customer Health and
Safety1

Assessment of the health and safety impacts
of product and service categories-

2

Incidents of non-compliance concerning thehealth and safety impacts of products andservices-

1

Requirements for product and service
information and labeling-2

Incidents of non-compliance concerning
product and service information andlabeling-

3

Incidents of non-compliance concerningmarketing communications-

417

Marketing and Labeling

418

Customer Privacy

1

Substantiated complaints concerning
breaches of customer privacy and losses ofcustomer data-

419

Socioeconomic
Compliance1

Non-compliance with laws and regulationsin the social and economic area-25

Standards (SASB Standards)

Policies andManagement Structure

Materiality

Stakeholder

Standards

Engagement(GRI Standards)

Standards

ESG Disclosure Policy and(SASB Standards)

Reporting Framework

Table 1. Sustainability Disclosure Topics & Accounting Metrics
TOPIC

ACCOUNTING METRIC

EnergyManagement

Energy consumption data
coverage as a percentage of total
6oor area, by property subsector

Year 2023(From March 1, 2023
to February 29, 2024)
O:ce
Retail Facilities
Logistics
Residential
HotelsOther

CODE

100.0%
100.0%
100.0%
26.3%
0.0%
ー

IF-RE-130a.1※Properties (or portions of properties) over which
NMF holds management authority.
In addition, the properties held during eachcalculation period and held throughout the year arecovered.
Total energy consumed by
portfolio area with data coverage

O:ceRetail Facilities
Logistics
Residential
HotelsOther137,330,393kWh
99,634,634kWh
52,541,265kWh
5,638,186kWh
2,515,560kWhーpercentage grid electricity

O:ce
Retail Facilities
Logistics
Residential
Hotels
Other

59.4%
71.0%
93.1%
82.1%
49.7%
ー

percentage renewable, byproperty subsector

O:ce
Retail Facilities

13.6%
2.0%

Logistics

6.6%

26

IF-RE-130a.2

TOPIC

Year 2023(From March 1, 2023
to February 29, 2024)

ACCOUNTING METRIC

CODE

Residential

4.6%

Hotels
Other

0.0%
ー

Like-for-like percentage change inenergy consumption for the

O:ceRetail Facilities-13.4%-10.6%

portfolio area with data coverage,
by property subsector

Logistics
Residential-12.3%-14.4%

HotelsOther-34.4%ー

O:ce
Retail Facilities

17.5%
2.3%

Logistics
Residential

80.2%
0.3%

Hotels
Other

0.0%
0.0%

EnergyManagement

Percentage of eligible portfoliothat has an energy rating

IF-RE-130a.3

IF-RE-130a.4*Properties counted are those that have acquired BELS
Certi[cation.
(Reference) Ratio of properties
that have acquired environmental
certi[cation

O:ce
Retail Facilities

55.0%
27.8%

Logistics
Residential

80.2%
34.1%

Hotels
Other

0.0%
0.0%

*Properties counted are those that have acquired DBJ
Green Building Certi[cation, BELS Certi[cation or
CASBEE for Real Estate.
Percentage of eligible portfolio

Real estate is not subject to the ENERGY STAR programthat is certi[ed to ENERGYSTAR, byproperty subsector

in Japan.

Description of how building energy
management considerations are

Please refer to following page of ESG Annual
Report（July, 2024）.

integrated into property
investment analysis andp.3~7（Policies and Management Structure）
p.8~12（Materiality）

operational strategy

p.26~30（Raising the Proportion of cGreend Properties
in Our Portfolio）

IF-RE-130a.5

p.31~40（Climate Change）
Water
Management

Water withdrawal data coverage asa percentage of total 6oor area

O:ce

69.4%

Retail Facilities
Logistics

28.3%
37.3%

Residential
Hotels

26.0%
0.0%

Other
Water withdrawal data coverage as

IF-RE-140a.1ー

No proprerties in these areas.

a percentage of 6oor area inregions with High or ExtremelyHigh Baseline Water Stress, byproperty subsector
Total water withdrawn by portfolio
area with data coverage

O:ceRetail Facilities
Logistics

326,831㎥
298,593㎥
23,071㎥

Residential

34,773㎥

Hotels
Other

27

0㎥
ー

IF-RE-140a.2

TOPIC

Water
Management

Year 2023(From March 1, 2023
to February 29, 2024)

ACCOUNTING METRIC

percentage in regions with High or

CODE

No proprerties in these areas.

Extremely High Baseline Water
Stress, by property subsector
Like-for-like percentage change inwater withdrawn for portfolio area

O:ce
Retail Facilities

7.0%
13.1%

with data coverage, by property
subsector

Logistics
Residential

0.4%
-1.8%

Hotels
Other

0.0%
ー

Description of water management
risks and discussion of strategies

Please refer to following page of ESG Annual
Report（July, 2024）.

and practices to mitigate thoserisks

p.3~7（Policies and Management Structure）
p.8~12（Materiality）

IF-RE-140a.3

IF-RE-140a.4

p.41~42（Water Resources and Waste Reduction, etc）
Management ofPercentage of new leases that

TenantSustainability

contain a cost recovery clause forresource e:ciencyrelated capital

Impactsー

IF-RE-410a.1

improvements
associated leased 6oor area, by

ーproperty subsector(Reference) Ratio of green leaseagreements concluded

O:ce

84.3%

Retail Facilities
Logistics

17.0%
42.1%

Residential
Hotels

1.1%
71.9%

Other

0%

*The leased area of a tenant which has a contract
including one or more green lease clauses is listed forthe leased area.
Percentage of tenants that are
separately metered or submeteredfor grid electricity consumption
Percentage of tenants that are
separately metered or submeteredfor water withdrawals, by property

O:ceRetail Facilities

69.4%
27.9%

Logistics
Residential

37.3%
0.0%

Hotels
Other

0.0%
ー

IF-RE-410a.2

subsector
Discussion of approach toPlease refer to following page of ESG Annual

measuring, incentivizing, andimproving sustainability impacts

Report（July, 2024）.
p.3~7（Policies and Management Structure）

of tenants

p.8~12（Materiality）
P.14（Stakeholder Engagement）
p.39~40（Collaboration with Tenants）
P.49（Customer Satisfaction Surveys）

28

IF-RE-410a.3

TOPICACCOUNTING METRIC

Climate Change

Area of properties located in 100-

Adaptation

Year 2023(From March 1, 2023
to February 29, 2024)

year 6ood zones, by property
subsector

CODE

O:ce

790,858㎡

Retail Facilities

382,530㎡

Logistics
Residential

996,200㎡
395,758㎡

Hotels

10,740㎡

Other

ー

IF-RE-450a.1※Amount recorded refers to the total 6oor area ofproperties located in areas where inundation of morethan 0 m in depth is expected based on the hazard
map issued by the local government.
Description of climate change risk

Please refer to following page of ESG Annual

exposure analysis, degree ofReport（July, 2024）.

systematic portfolio exposure, andstrategies for mitigating risks

p.28~36（Climate Change）

IF-RE-450a.2

Table 2. Activity Metrics
Year 2023(From March 1, 2023
to February 29, 2024)

ACTIVITY METRIC

CODE

Number of assets, by property subsector (Note)

O:ce
Retail Facilities
Logistics
Residential
Hotels
Other

65
50
24
148
3
1

IF-RE-000.A

Leasable 6oor area, by property subsector (Note)

O:ce
Retail Facilities
Logistics
Residential
HotelsOther

477,193.23㎡
365,301.07㎡
978,855.29㎡
337,978.08㎡
10,821.00㎡
14,431.35㎡

IF-RE-000.B

Percentage of indirectly managed assets, by property subsector

O:ce
Retail Facilities
Logistics
Residential
Hotels
Other

30.6%
72.1%
62.7%
100.0%
100.0%
100.0%

IF-RE-000.C

Average occupancy rate, by property subsector

O:ce
Retail Facilities
Logistics

97.7%
99.0%
100.0%

IF-RE-000.D

Residential
HotelsOther

97.1%
100.0%
100.0%(Note) As the end of February 2024

29

ESG Disclosure Policy and Reporting Framework

Policies andManagement Structure

Materiality

Stakeholder

Standards

Engagement(GRI Standards)

Standards

ESG Disclosure Policy and(SASB Standards)

Reporting Framework

ESG Annual Report
NMF publishes an ESG Annual Report once a year in order to deepen understanding of NMF<s ESG activities.

「ESG Annual Report（Jul. 2023）」

Information Disclosure Policy
This website was created to help our stakeholders understand the status of initiatives undertaken by Nomura Real Estate Master
Fund, Inc. and Nomura Real Estate Asset Management Co., Ltd., which acts as the formerGs asset management company, to addressenvironmental, social and governance (ESG) issues and concepts behind their initiatives. We are striving to fulKll stakeholder
expectations with regard to information disclosure by giving due consideration to international frameworks associated with ESG
issues as well as requests from investors and external rating agencies.

Reporting Coverage, Period and Updating Timing
Reporting Coverage：Nomura Real Estate Master Fund, Inc. and Nomura Real Estate Asset Management, Co., Ltd. (Note 1)
Reporting Period：FY 2021 (from March 2021 to February 2022) (Note 2)
Updating Timing：July of each year in principle（Note 1） Employees at Nomura Real Estate Asset Management Co., Ltd. mainly consist of individuals seconded from Nomura Real Estate Development Co., Ltd. Accordingly,
some topics associated with the former as part of overarching initiatives undertaken by the Nomura Real Estate Group (e.g., human resource strategies) may bepresented as initiatives undertaken by Nomura Real Estate Holdings, Inc.
（Note 2） Excluding those that separately specify the period and time. Also, for qualitative information such as various initiatives, examples up to the most recent time may be
included.

30

Reference Guidelines
NMF refers to Global Reporting Initiative (GRI) standards for reporting on ESG policies and initiatives.

Please refer to GRI Standards for more details.

Inquiries
For your inquiry concerning ESG related matters, please contact to the following.

Asset Management Company

Nomura Real Estate Asset Management, Co., Ltd.

Telephone+81-(0)3-3365-8767

E-mailnmf3462@nomura-re.co.jp

Operating Hours

9:30 am – 5:30 pm (Monday to Friday)（Saturday, Sunday and holidays are closed）

31

International Initiatives and Certi/cations

International Initiatives and Certi/cations
The Principles for Responsible Investment (PRI) initiative is an international network of investors working together to put six
principles for responsible investment into practice. The principles, which were proposed for the @nancial sector in 2006 by the then
UN Secretary-General, Ko@ Annan, are promoted by the United Nations Environment Programme (UNEP) and the United Nations
Global Compact (UNGC).
The principles call on investors to incorporate environmental, social and corporate governance (ESG) issues into investment
decision-making. By including those issues in the investment process, the goal is to improve long-term investment performance andfurther enhance @duciary duty.
NREAM subscribes to the fundamental principles of the PRI and became a signatory in December 2017.

For more information, please refer to PRI website.

Support for TCFD Recommendations
In July 2020, NREAM expressed its support for the recommendations of the Task Force on Climate-related Financial Disclosures(TCFD) launched by the Financial Stability Board (FSB) for the purpose of discussing the disclosures of climate-related @nancial
information and the responses by @nancial institutions, and also decided to participate in the TCFD Consortium which is a group of
domestic companies that supports TCFD recommendations.

For more information, please refer to TCFD website.

32

Participation in Japan Climate Initiative (JCI)NREAM has joined Japan Climate Initiative (JCI) which is a network of various non-state actors such as companies, local
governments, organizations and NGOs actively engaged in climate action.

For more information, please refer to JCI website.

Signatory to PFA21
NREAM has become a signatory to the Principles for Financial Action for the 21st Century (PFA21) in July 2019. PFA21 wasestablished in October 2011 as a guideline for @nancial institutions seeking to ful@l their roles and responsibilities in shaping asustainable society, with the Ministry of Environment taking on the role of secretariat.

For more information, please refer to PFA21 website.

33

NREAM Received Minister of the Environment Award
from PFA21 in FY2019
NREAM received Minister of the Environment Award in the general category
from PFA21 as the most excellent eZorts in @scal year 2019.

＜Award Details＞
The Most Excellent EZorts in Fiscal Year 2019,
Minister of the Environment Award in the General Category.

＜NREAM1s E2orts Evaluated＞
The certi@cation and registration for an Environmental Management System(EMS)by the third party as the @rst J-REIT (EcoAction21)(※).
※For more information, please refer to 0Certi2cation and Registration for EcoAction 21 Program,Environmental Management System (EMS) in JapanC below thi

For more information, please refer to the selection results.

34

Participation in GRESB Membership
GRESB
GRESB is an annual benchmarking assessment to measure ESG (Environmental, Social and Governance) integration of real estatecompanies and funds, as well as the name of organization which runs the assessment. It was founded in 2009 by a group of major
European pension funds who played leading roles in launching Principles for Responsible Investment (PRI).
GRESB Real Estate Assessment does not focus on individual properties, but rather on sustainability initiatives by real estatecompanies, REITs and private real estate funds. Currently, over 150 investor members use the GRESB data for selecting investment
destinations and holding dialogues with their portfolio companies, and in Japan, multiple institutions, including the Government
Pension Investment Fund (GPIF), use the GRESB assessment results.
In the 2023 GRESB Real Estate Assessment, a total of 2,084 listed and unlisted real estate companies and funds participatedworldwide.

For more information, please refer to GRESB website.

Participation in GRESB Membership
Nomura Real Estate Asset Management Co., Ltd. (NREAM) has become a GRESB Real Estate/ COMPANY & FUND MEMBER to better
ful@ll its role as an asset manager in light of the growing importance of ESG issues in the investment management industry. Having
become a part of the international GRESB initiative, NREAM will engage in networking and information sharing with external
corporations that implement cutting-edge ESG activities while introducing best practices undertaken in Japan to its global peers. In
this way, NREAM will strive to promote sustainability.

About C4 StarsE and CGreen StarE in the GRESB Real Estate Assessment
NMF received a c4 Starsd in GRESB Rating, which is based on GRESB Overall Score and its quintile position relative to global
participants. NMF also won a cGreen Stard designation for the eighth consecutive year by achieving high performance both incManagement Componentd that evaluates policies and organizational structure for ESG promotion, and cPerformance Componentdthat assesses environmental performance and tenant engagement of properties owned.

35

About an CAE Rating under the GRESB Public Disclosure Level Evaluation Scheme
We received an cAd rating for the seventh consecutive year, the highest rating given under the @ve-grade GRESB Public Disclosure
Level evaluation scheme introduced in 2017 or our proactive information disclosure practices in connection with environmental andsustainability initiatives.

Participate in CDP climate change program
NMF responded to a questionnaire from the CDP (Carbon Disclosure Project) Climate Change Program, which evaluates eZorts todisclose information on climate change. Furthermore, in the 2023 evaluation, we received a gBg score in the climate change @eld.

For more information, please refer to CDP website.

36

Certi/cation and Registration for EcoAction 21 Program,Environmental Management System (EMS) in JapanThe EcoAction 21 Certi@cation/Registration Program is the certi@cation and registration system by a third party for business
operators promoting environmental management based on gEcoAction 21 Guidelinesg formulated by Japanhs Ministry of theEnvironment as part of its Environmental Management System. NMF became the @rst J-REIT to be certi@ed and registered forcEcoAction 21d Program.

＜Scope of Certi;cation and Registration＞
For more information, please refer to EcoAction 21 website (Available only in Japanese).

Reception of 2021 Climate Change Action Environment
MinisterKs Commendation
The Climate Change Action Environment Ministerhs Commendation is a commendation presented by the Ministry of the Environment
to individuals and organizations that have made outstanding achievements to addressing climate change.
The ministry launched the Environment Ministerhs Commendation for Global Warming Prevention Activities in 1998 as part of its
global warming countermeasures, but in consideration of factors such as recent trends in climate change countermeasures insociety, the commendation was updated in 2020 to the Climate Change Action Environment Ministerhs Commendation.
The cAsset Management Companyd has received the 2021 Climate Change Action Environment Ministerhs Commendation(Dissemination/Promotion category), sponsored by the Ministry of the Environment, in recognition of NMFhs ongoing eZorts for
mitigationd and cadaptationd in the area of climate change.

For more information, please refer to 2021 Climate Change Action Environment Ministerhs Commendation website

37

Climate Change

Climate Change

Raising the Proportion ofEnvironmental

6Green6 Properties
in Our Portfolio

Performance

GHG Reductions

Water Resources andWaste Reduction, etc

Policy on climate change
Our Awareness of Climate Change
The concept of sustainable development was put forward in Our Common Future, the report submitted by the World Commission on
Environment and Development (the Brundtland Commission) to the United Nations in 1987. As a result, climate change caused by
global warming and its impacts was broadly recognized throughout the world as a major factor relating to environmental issues. In
the early 1990s, the need to conclude international agreements on climate change countermeasures increased, and the United
Nations Framework Convention on Climate Change was adopted at the United Nations Conference on Environment and Develop(known as The Earth Summit) held in Rio de Janeiro in 1992 with the objective of stabilizing the atmospheric concentrations ofgreenhouse gases.
Under the UN Framework Convention on Climate Change, the Conference of the Parties (COP) has been held annually since 1995.
The Kyoto Protocol, which sets greenhouse gas emissions targets for developed countries, was adopted at COP3 in 1997. This was anextremely signiXcant step as an international global warming countermeasure, since it imposes speciXc duties on individual
countries to take action to reduce emissions.
Subsequently, the Paris Agreement was adopted at COP21, which was held in Paris in 2015. It seeks to pursue eZorts to keep the
global average temperature rise to 1.5°C while keeping it well below 2°C compared to before the Industrial Revolution, withagreement reached that each UN member establish its own greenhouse gas reduction targets.

One representative impact of climate change that has been measured to date is the increase in average temperatures. According toMeteorological Agency data, global average annual temperatures are rising at a rate of 0.75°C per century, and in Japan, the annual
average temperature is increasing by 1.26°C per century.

There are concerns about the impact of climate change, which is thought to be the eZect of global warming, and the impact of large-

38

scale natural disasters on ecosystems around the world. In addition, the damage caused by large typhoons and torrential rains,which are thought to be the eZects of climate change, has been occurring one after another. According to the Japan Meteorological
Agency, the annual number of occurrences of precipitation of 50 mm or more per hour nationwide was about 226 times during the
10 years from 1976 to 1985, but about 334 times during the 10 years from 2011 to 2020.

As a result of these tangible eZects of climate change as well as eZorts to reinforce global frameworks concerning global warming
and climate change exempliXed by the Paris Agreement, climate change has been attracting increasing attention in recent years notjust as something to be addressed by countries and governments, but also as a social responsibility to be fulXlled by the private
sector.

Positioning of Climate Change by NMF and Basic Policy
Based on the idea that it is essential for our sustainable growth to realize sustainable society, we also believe our contribution tosolving social issues through our business is in line with our fundamental philosophy of asecuring stable proXt over the medium tolong termb and asteadily achieving growth in assets under management.b Consequently, it would contribute to improving ourunitholder value. When undertaking speciXc initiatives, we have engaged in repeated discussions taking into consideration theimpacts on NMFcs business and performance and the expectations and interests of stakeholders, and we have identiXed ESG
material issues (materiality) that are particularly important to us.
Based on Our Awareness of Climate Change set forth in (1) above, responses to climate change are an urgent management issue thatNMF will face while undertaking sustainable business activities, and we have positioned it as a materiality issue.
For details on NMFcs materiality issues, the materiality identiXcation process, and the relationships among materiality issues andthe SDGs, refer to the Materiality page.

Climate change involves medium- to long-term risks, and if we are unable to respond appropriately to those risks, there is apossibility that NMF will not be able to achieve steady growth of assets under management and that it will be diecult to achieve
increases in unitholder value over the medium to long term.
On the other hand, we believe that climate change will present new business opportunities. If we are able to address these issues
appropriately, this will lead to increases in the value of assets under management as well as higher unitholder value.
Based on this recognition, we aim to contribute to the transition to a low-carbon society and expand the proXt opportunities, andwhile fully managing the physical and transition risks associated with climate change, it also uses greenhouse gases. We willcontinue to promote eZorts such as emission reduction.

Expression of Support for TCFD Recommendations
In July 2020, the asset management company to which NMF entrusts management of its assets expressed its support for the TCFD
Recommendations and decided to join the TCFD Consortium, an organization of companies in Japan that support the TCFD Rec
ommendations. The objectives are to promote dialogue with unitholders and other stakeholders and collaborate with them to achieve continuous improvement through expansion and enhancement of information disclosures relating to policies and initiatives
regarding climate change.
The TCFD is the Task Force on Climate-related Financial Disclosures established by the Financial Stability Board (FSB) for the purpo
se of investigating climate change related disclosures and how Xnancial institutions should respond. Climate change is aserious
risk for the global economy, and the TCFD has announced recommendations urging companies and other organizations to asc
ertain and disclose information relating to governance, strategy, metrics and targets, and risk management.
The TCFD Consortium is an organization that was established with a view to encouraging concerted eZorts by companies and
Xnancial institutions that support the TCFD and discussion of eZective corporate disclosure and initiatives that link disclosed
information to appropriate investment decisions on the part of Xnancial institutions and other organizations.

39

（Disclosure Items Recommended by the TCFD）
Disclosure Item

Disclosure Details

Governance

Organizational governance relating to climate-related risks and opportunities

Strategy

Actual and potential impacts from climate-related risks and opportunities on the organization9s businesses,
strategies, and <nancial planning

Risk management

The organization9s climate-related risk identi<cation, assessment, and management processes

Metrics and Targets

Metrics and targets used to assess and manage climate-related risks and opportunities

NMF2s Initiatives regarding the Disclosure Items Recommended
by TCFD
Governance
For information regarding the implementation structures relating to sustainability (here and hereafter, including responses toclimate change) of the asset management company to which NMF has entrusted operation of its assets, refer to the Policies andManagement Structure page.

Strategy
NMF has identiXed risks and opportunities relating to climate change risks that will aZect it and has conducted scenario analysis toinvestigate the eZects on business. In this series of investigation processes, we took into consideration the Green Growth Strategy
Towards 2050 Carbon Neutrality based on Japancs 2050 Carbon Neutral Declaration.

Scenario Analysis Assumptions
NMF conducted scenario analysis using future climate predictions announced by various international organizations and othergroups as the main information sources. The main information sources referenced by NMF are indicated below. Climate change risks
can be broadly classiXed as transition risks and physical risks, and it is believed that the relationship between these two types ofrisks is one of interdependence and trade-oZs.

40

Climate Change Risks
Transition risks

Physical risks

Main Information Sources Referenced

Risks arising from new regulations, tax systems,

IEA (International Energy Agency) World Energy Outlook

technologies, and so on introduced to create a2023

decarbonized societyInternational Energy Agency (IEA), World Energy Outlook
2023

Risks arising from climate change itself, such as

Intergovernmental Panel on Climate Change (IPCC), Fifthchanges in weather

Assessment Report (AR6)In light of the intent of the Paris Agreement, NMF set three patternsfa 4°C scenario, 2°C scenario, and 1.5°C scenariofas theassumed scenarios for scenario analysis. Overviews of each scenario are set forth below.

2°C Scenario and 1.5°C Scenario
The 1.5°C scenario assumes that greenhouse gas emissions will trend downward as a result of the adoption of more strict
regulations, tax systems, and so on to achieve a decarbonized society. This scenario entails low physical risks and high transition
risks.
The 2°C scenario is positioned between the 4°C scenario and the 1.5°C scenario and assumes that greenhouse gas emissions will becurtailed to some degree as a result of the adoption of more strict regulations, tax systems, and so on, similar to the 1.5°C scenario.
This scenario entails low physical risks and high transition risks, but not to the same degree as the 1.5°C scenario.

41

4°C Scenario
The 4°C Scenario assumes that more strict regulations, tax systems, and so on will not be introduced to create a decarbonizedsociety and that greenhouse gas emissions will continue to increase. This scenario entails high physical risks and low transition
risks.

Veri;cation of Financial Impact Amounts Based on Scenario Analysis
NMF veriXed the scope of the Xnancial impacts from the identiXed risks and pportunities for each of the three scenario patterns
described above. Impacts were veriXed at 2030 (medium-term outlook) and 2050 (long-term outlook) for each scenario. A summaryof the results is set forth in the table below.
This veriXcation made reference to scenarios announced by the IEA, IPCC, and other organizations, objective forecast data
announced by other third-party specialized organizations, and other data available at the time, and involved qualitative andquantitative veriXcation based on the status of the NMFcs asset holdings, but the known risks entail uncertainties, and unknown
risks and other factors are inherent, and consequently, there is no guarantee of the accuracy or safety of that information.

42

1.5°C Scenario＜Risk details＞

Chronic

Increasing severity ofnatural disasters

Increase in averagetemperature

Decrease in funding costs
through green loans, etc.

Physical risk

Acute

Changes in banks9lending decisions
based on the
Principles for
Responsible Banking

2050(Single year)▲4.7(Single year)▲13.0(Single year)▲8.5(Single year)
▲13.0

ー(*1)

Occurrence/increase in property
damage due to Zoods and storm
surges and decrease in rental
income due to businesssuspension(Cumulative)▲8.0(Cumulative)▲36.2

Increase in non-life insurance
premiums(Single year)▲0.1(Single year)▲0.6

Increase in cooling costs(Single year)▲0.1(Single year)▲0.1(Single year)▲18.0(Cumulative)▲8.0(Single year)▲22.2(Cumulative)
▲36.2

Total
（①）

*1 Because the impact is minor, it is not included in the calculation.
*2 For the prerequisites for calculating each risk, please see here.

43

2030

2050

Risk mitigation

Declining competitiveness ofproperties with poor
environmental performance(properties that have notobtained environmental
certi<cation)

2030

Financial impact amountOpportunity/Response cost

Reduced burden of carbon tax
due to energy saving
construction and introductionof renewable energy electricity(Single year)＋3.7(Single year)＋6.6

Required cost

Increasing number ofcompanies aiming tobecome carbon
neutral
Selection ofproperties withemphasis on energy
creation and energy
saving performanceby tenants

Incurrence/increase of carbon tax
burdenTransition risk

Introduction ofcarbon tax system

Financial impact amount

Cost increase due tointroduction of renewableenergy electricity(Single year)▲0.3(Single year)▲0.3

Opportunity

Risk

Improving the competitivenessof properties with highenvironmental performance(properties with environmental
certi<cation)(Single year)＋9.4(Single year)＋9.4

Risk mitigation

MarketPolicyCategorycorresponding costs＞

Restore and improve
competitiveness by improving
environmental performance(obtaining environmental
certi<cation)(Single year)＋4.6(Single year)＋4.6

Required cost

the world＞（hundred million yen）
＜Details of opportunities/risk reduction andEnvironmental certi<cationacquisition and maintenancecosts(Single year)▲0.3(Single year)▲0.3

ー

Risk mitigation/Opportunity＜Changes inー(*1)

Generation/increase of
insurance income

Reduce heating costs(Cumulative)+8.0(Cumulative)
+36.2

ー(*1)

Total
（②）

(Single year)＋17.1(Cumulative)＋8.0(Single year)＋20.0(Cumulative)＋36.2

Residual risk（①-②）

(Single year)▲0.9(Cumulative)-(Single year)▲2.2(Cumulative)-

NMF response policy
Category

NMF response policy and initiatives
Reducing carbon taxes by reducing GHG emissions■Goal (KPI)

Net zero greenhouse gas (GHG) emissions by 2050
PolicyReduce greenhouse gas (GHG) by 80% by 2030 (2019Introduction of carbon tax systemstandard)
Renewable energy electricity: 100% introduction by 2030 *(*Applicable to properties for which the Investment Corporation has
management authority)

Transition risk related

Maintaining and improving property competitiveness byMarketIncreasing number of companies aiming
to become carbon neutral
Selection of properties with emphasison energy creation and energy saving
performance by tenants

Risk mitigation/Opportunity

improving the environmental performance of owned properties
and obtaining environmental certiXcation■Goal (KPI)

We aim to increase the percentage of properties we own thathave acquired green certiXcation (equivalent to 3★ orhigher) to 70%* by 2030.
*Green certi=cation (equivalent to 3★ or higher) refers to DBJ Green Building
certi=cation 3★ or higher, BELS certi=cation 3★ or higher, or CASBEE real estate
B+ or higher.
*Based on owned properties excluding land properties, and based on total Moor
area.

Physical risk related

Changes in banks9 lending decisions
based on the Principles for Responsible
Banking

Acute

Increasing severity of natural disasters

Chronic

Increase in average temperature‧Formulation of green <nance framework, etc.
‧Green loan borrowing, green bond issuance, etc.

‧When making a new investment: Investigation of climate changerisks such as Zooding risk during the due diligence process‧During property operation: Periodic sustainability risk
assessment (including climate change risks such as Zooding risk)‧Disaster countermeasures in terms of both hardware andsoftware(Hardware side: waterproof version installation, road heating
installation, etc.)(Intangible aspects: inland Zood risk alert distribution system,
BCP planning, disaster prevention training, etc.)‧Appropriate insurance against disaster risks

44

4°C Scenario (reference)（hundred million yen）
＜Risk details＞

Chronic

Increase in averagetemperature

2050(Single year)▲0.1(Single year)
▲0.1

-

-

ー(*1)

Occurrence/increase in property
damage due to Zoods and storm
surges and decrease in rental
income due to businesssuspension(Cumulative)▲8.8(Cumulative)▲49.5

Increase in non-life insurance
premiums(Single year)▲0.2(Single year)▲1.1

Increase in cooling costs(Single year)▲0.1(Single year)▲0.3(Single year)▲0.4(Cumulative)▲8.8(Single year)▲1.5(Cumulative)
▲49.5

Total
（①）

*1 Because the impact is minor, it is not included in the calculation.
*2 For the prerequisites for calculating each risk, please see here.

45

2030

2050

Risk mitigation

Increasing severity ofnatural disasters

Decrease in funding costs throughgreen loans, etc.

Physical risk

Acute

Changes in banks9lending decisions
based on the
Principles for
Responsible Banking

Declining competitiveness ofproperties with poor
environmental performance(properties that have notobtained environmental
certi<cation)

2030

Financial impact amountOpportunity/Response cost

Reduced burden of carbon tax
due to energy saving
construction and introduction ofrenewable energy electricity(Single year)＋0.1(Single year)＋0.1

Required cost

Increasing number ofcompanies aiming tobecome carbon
neutral
Selection ofproperties withemphasis on energy
creation and energy
saving performanceby tenants

Incurrence/increase of carbon tax
burdenTransition risk

Introduction of carbon
tax system

Financial impact amount

Cost increase due tointroduction of renewableenergy electricity(Single year)▲0.3(Single year)▲0.3

Opportunity

Risk

Improving the competitivenessof properties with highenvironmental performance(properties with environmental
certi<cation)--

Risk mitigation

MarketPolicyCategorycorresponding costs＞

Restore and improve
competitiveness by improving
environmental performance(obtaining environmental
certi<cation)--

Required cost

the world＞

Environmental certi<cationacquisition and maintenance
costs

-

-

(Cumulative)+8.8(Cumulative)
+49.5

ー

Risk mitigation/Opportunity＜Changes in＜Details of opportunities/risk reduction andー(*1)

Generation/increase of
insurance income

Reduce heating costs

ー(*1)

Total
（②）

(Single year)＋0.2(Cumulative)＋8.8(Single year)＋0.2(Cumulative)＋49.5

Residual risk（①-②）

(Single year)▲0.6(Cumulative)-(Single year)▲1.7(Cumulative)-Risk Management
The risk management systems relating to sustainability of the asset management company to which NMF has entrusted operation of
its assets are as set forth below.

At the time of investment decision
When making new investments in assets under management, the Investment Committee makes investment decisions in the due
diligence process taking into consideration various investigations of climate change related risks. SpeciXcally, with respect to thepossibility of jooding and inundation of a target property, the inundation level and inundation history are investigated andconXrmed using various hazard maps and the history of hydraulic engineering work implementation is also investigated andconXrmed. In addition, the presence of environmental and energy-conserving facilities including acquisition of environmental
certiXcation, the status of business continuity planning, and other factors are conXrmed.

During operation
The Sustainability Promotion Committee performs management and monitoring of overall risks relating to sustainability including
climate change risks. SpeciXcally, the status of implementation of energy-conservation measures to achieve greenhouse gas (GHG)
emissions reduction targets (see (4) Metrics and Targets below for details) and the status of GHG reductions based on such
implementation are monitored for each property, and this information is visualized to analyze the factors of increases or decreases
in GHG emissions, and necessary countermeasures are investigated as needed. In addition, sustainability and risk assessment sheets
are prepared for each property and the likelihood of climate change risks and other risks occurring is evaluated. These evaluations
are conducted for a certain proportion of owned properties each year in accordance with a rotation of approximately Xve years for allproperties. All sustainability initiatives, including climate change risk, are promoted based on the management and supervision of
the Chief Executive Oecer (Director) for Sustainability Promotion.

Metrics and Targets
NMF is aware that solving environmental problems exempliXed by climate change is an important management issue within its
sustainable business and its business strategies for achieving sustainable business. Based on this understanding, NMF is investing inlower environmental impact buildings, taking measures to increase the eeciency of energy usage and reduce GHG emissions
through the implementation of environmental and energy conservation measures at owned properties, and seeks to establish a low
environmental impact portfolio.

Making owned properties greener

Key Performance Indicator
Raise the ratio of properties acquired green certi3cation (with three stars or more or equivalent to) to 70％ by
2030.

※Green certi=cation (with three stars or more or equivalent to) refers to DBJ Green Building Certi=cation (three stars or more) or BELS Certi=cation (three stars or more), or
CASBEE for Real Estate (B+ or higher)※The =gure is calculated based on the Moor area of our properties excluding land.
※For actual results to KPI, please refer here.

46

Greenhouse Gas (GHG) Emissions

Key Performance Indicator (KPI)
Achieve net zero greenhouse gas (GHG) emissions by 2050
Achieve 80% reduction in greenhouse gas (GHG) emissions by 2030 (compared with the 2019 level)

Water Use

Key Performance Indicator (KPI)
Achieve 10％ reduction in water use per Foor area (intensity) in our portfolio by 2030 compared with the2016 levels

47

Environmental Performance

Climate Change

Raising the Proportion ofEnvironmental

6Green6 Properties
in Our Portfolio

Performance

GHG Reductions

Water Resources andWaste Reduction, etc

Environmental Performance
Green Properties in Our Portfolio

Key Performance Indicator (KPI)
Raise the ratio of properties acquired green certi3cation (with three stars or more or equivalent to) to 70％ by
2030.

※Green certi)cation (with three stars or more or equivalent to) refers to DBJ Green Building Certi)cation (three stars or more) or BELS Certi)cation (three stars or more), or
CASBEE for Real Estate (B+ or higher)※The )gure is calculated based on the Foor area of our properties excluding land.

48

Environmental Certi.cation
Number of Properties

Floor Area (㎡)Certi7ed Ratio

Green certi)cation(with three stars or more orequivalent to)71

1,356,915.29

56.4%

Green certi)cation

79

1,399,414.34

57.6%

DBJ Green Building Certi)cation

69

1,282,788.59

52.8%

BELS Certi)cation

46

923,780.47

38.0%（※ 1）Total number of properties with environmental certi)cation includes Musashiurawa Shopping Square which has received CASBEE for Real Estate Certi)cations.
（※ 2）Acquisition status as of today.
（※ 3）Calculated based on properties in the fund excluding land.
（※ 4）Calculated based on the Foor area multiplied by the fund share of the property or on the Foor area of exclusively owned space.

Greenhouse Gas (GHG) Emissions

Key Performance Indicator (KPI)
Achieve net zero greenhouse gas (GHG) emissions by 2050
Achieve 80% reduction in greenhouse gas (GHG) emissions by 2030 (compared with the 2019 level)

Actual results of our GHG emissions
FY2020

FY2021

FY2022

FY2023

FY2030(Target Year)

t-CO2

111,795

93,180108,184

91,723－

Scope 1

t-CO2

1,598

1,358

1,289

1,196

－

Scope 2t-CO224,125

19,63722,047

18,379－

Scope 3 Category 13(Fuel and electricity related to tenant management assets)

t-CO2

86,072

72,18584,84872,148－%--16.7%-3.2%-18.0%▲80.0%

t-CO2/㎡

0.04590.03500.04050.0404－

Energy Consumption（②）%--23.8%-11.9%-12.1%－

Energy Consumption Intensity

Kl

62,44658,19359,321

52,115

－

①/② ※

%

-

-6.8%

-5.0%

-16.5%－Unit

GHG Emissions（①）

GHG Emissions Intensity
Reduction Rate

※ This has been retroactively revised due to changes in the standards for properties subject to aggregation.
※ Scope 3 is subject to emissions derived from areas controlled by tenants.
※ Please refer to Basis for Calculating Environmental Performance Data for the calculation standards for various indicators.

49

Water Use

Key Performance Indicator (KPI)
Achieve 10％ reduction in water use per Foor area (intensity) in our portfolio by 2030 compared with the2016 levels

Actual results of our water use
FY2016(Base Year)FY2020

FY2021

FY2022

FY2023

FY2030(Target Year)㎥

777,209549,879

519,153622,090683,268

－

㎥/㎡

0.665

0.464

0.456

0.543

0.582

－

％

-

－30.3%－31.5%－18.3%－12.5%－10.0%

Unit

Water Use
Water Use Intensity
Reduction Rate

Waste Amount
Actual results of our water use
Unit
Waste Disposed
Waste Amount Intensity

FY2016FY2020

FY2021

FY2022

FY2023Kg

5,825,674

5,065,665

4913502

5,128,652

6,037,563

Kg/㎡

9.01

6.74

6.80

7.15

8.44

※Until FY2022: The aggregation period is from April to March, FY2023: The aggregation period is from March to February

50

Raising the Proportion of 0Green0 Properties in Our
Portfolio

Climate Change

Raising the Proportion ofEnvironmental

6Green6 Properties
in Our Portfolio

Performance

GHG Reductions

Water Resources andWaste Reduction, etc

Raising the Proportion of 0Green2 Properties in Our Portfolio
Basic Policy
NMF recognizes that helping resolve environmental problems, such as issues associated with climate change, is of criticalimportance to the success of its business strategies aimed at securing ongoing operations. Based on this recognition, NMF is striving
to minimize environmental burdens attributable to its portfolio. NMF therefore engages in investment in environmentally friendly
properties while working to enhance the e?ciency of its energy use by, for example, introducing eco-friendly and energy-saving
countermeasures at its properties.
We will consider acquiring green certiDcation for all existing portfolios and all properties to be acquired in the future, and promote
the acquisition of green certiDcation (3 ★ equivalent or higher), which is the standard for KPIs.

Key Performance Indicator
Raise the ratio of properties acquired green certi3cation (with three stars or more or equivalent to) to 70％ by
2030.

※Green certi)cation (with three stars or more or equivalent to) refers to DBJ Green Building Certi)cation (three stars or more) or BELS Certi)cation (three stars or more),
or CASBEE for Real Estate (B+ or higher)※The )gure is calculated based on the Foor area of our properties excluding land.
※For actual results to KPI, please refer here.

51

DBJ Green Building Certi6cation
The DBJ Green Building CertiDcation is a certiDcation system created by the Development Bank of Japan (DBJ) to support real estate
properties with environmental and social awareness. The certiDcation system evaluates convenience, comfort, disaster/crime
prevention, energy-saving, involvement with communities, etc. in addition to environmental performance, and evaluation results
are expressed in Dve-level ratings (5 stars ★★★★★ to 1 star ★).

Acquisition of BELS Certi6cation
BELS certiDcation is provided under a public evaluation system, which evaluates the energy conservation performance of nonresidential buildings based on the Building Energy E?ciency Act.
The assessment is on the basis of the Building Energy Index (BEI) value derived from primary energy consumption based on thebuilding energy e?ciency standards provided by the Japanese government.
Third parties evaluate the performance of buildings from various points of view, regardless of whether a building is new or not, andthe evaluation result is represented by a number of stars (from one star O★ O to Dve stars O★★★★★O).
※From 2024, the number of stars (6 stars ★★★★★★ to 1 star ★) will change.

Acquisition of CASBEE for Real Estate
CASBEE (Comprehensive Assessment System for Built Environment E?ciency) is a method of evaluating and rating theenvironmental performance of buildings and is being promoted under the leadership of the Ministry of Land, Infrastructure,
Transport and Tourism. The evaluation is based on 5 categories: OEnergy and greenhouse gasesO, \Water], OResource use andsafetyO, OBiodiversity and sitesO ,OIndoor environmentO, and the evaluation results are presented in 5 levels (from Rank C ★ to Rank
S ★ ★ ★ ★).

52

Acquisition status of environmental certi2cations
Sector

DBJ Green
Building

Residential★★★★★

PMO Akihabara Kita

O<ce

★★★★

Yokosuka More?s City

RetailFacilities(Near★★★★

Properties

Fukasawa House Towers H&I

Stations)

BELS

★★★

Landport Itabashi

Logistics

★★★★

★★

Landport Atsugi

Logistics

★★★★

★★★★★

PRIME URBAN Ikebukuro

Residential★★★★

PRIME URBAN Sapporo Riverfront

Residential★★★★

Shinjuku Nomura Building

O<ce

★★★

NRE Tennozu Building

O<ce

★★★

PMO Nihonbashi Honcho

O<ce

★★★

★★

PMO Akihabara

O<ce

★★★

★

PMO Hatchobori

O<ce

★★★

★

PMO Nihonbashi Odenmacho

O<ce

★★★

★★

PMO Higashi-nihonbashi

O<ce

★★★

★

PMO Tamachi

O<ce

★★★

★★

PMO Ginza Hatchome

O<ce

★★★

★★

PMO Shibakoen

O<ce

★★★

★★

NEC Head O<ce Building

O<ce

★★★

O<ce Tower Z

O<ce

★★★

PMO Shinnihonbashi

O<ce

★★★

★★★★

PMO Hirakawacho

O<ce

★★★

★★

PMO Nihonbashi Mitsukoshi-mae

O<ce

★★★

★★★

PMO Shibadaimon

O<ce

★★★

★★

PMO Tamachi Ⅱ

O<ce

★★★

★★★

PMO Hatchobori Shinkawa

O<ce

★★★

★★★

Harumi Island Triton Square

53

CASBEE

Sector

DBJ Green
Building

BELS

PMO Hatchobori Ⅲ

O<ce

★★★

★★★

PMO Ochanomizu

O<ce

★★★

★★★

PMO Higashi-Shinbashi

O<ce

★★★

★★★

PMO Hamamatsucho

O<ce

★★★

★★

PMO Hamamatsucho Ⅱ

O<ce

★★★

★★

Sapporo North Plaza

O<ce

★★★

Omron Kyoto Center Building

O<ce

★★★

SORA Shin-Osaka 21

O<ce

★★★

Universal CityWalk Osaka

RetailFacilities(Near
Stations)★★★

nORBESA

RetailFacilities(Near
Stations)★★★

Landport Urayasu

Logistics★★★

★★

Landport Kawagoe

Logistics

★★★

★
★★
★★★
★★

Landport Kasukabe

Logistics★★★

★★

Atsugi Minami Logistics Center B Tower

Logistics★★★

★★

Hanyu Logistics Center

Logistics★★★

Landport Ome I

Logistics★★★

Landport Ome III

Logistics★★★

PROUD FLAT Shirokane Takanawa

Residential★★★

PROUD FLAT Sumida Riverside

Residential★★★

PROUD FLAT Kamata II

Residential★★★

PROUD FLAT Asakusa Komagata

Residential★★★

PROUD FLAT Yokohama

Residential★★★

PROUD FLAT Kamioooka

Residential★★★

PROUD FLAT Tsurumi II

Residential★★★

PRIME URBAN Shinkawa

Residential★★★

Properties

54

★

★★★★★
（ZEB Ready）★★★★★
（ZEB Ready）★★★★★

CASBEE

Sector

DBJ Green
Building

PRIME URBAN Nihonbashi Yokoyamacho

Residential★★★

PRIME URBAN Kagurazaka

Residential★★★

PRIME URBAN Monzen Nakacho

Residential★★★

PRIME URBAN Machiya South Court

Residential★★★

PRIME URBAN Toyosu

Residential★★★

PRIME URBAN Nihonbashi Kayabacho

Residential★★★

PROUD FLAT Omori Ⅲ

Residential★★★

PROUD FLAT Shibuya Tomigaya

Residential★★★

PRIME URBAN Izumi

Residential★★★

PRIME URBAN Sakaisuji Honmachi

Residential★★★

Serenite Shinsaibashi Grande

Residential★★★

Landport Kashiwa Shonan Ⅰ

Logistics

Landport Hachioji Ⅱ

Logistics

Landport Iwatsuki

Logistics

Landport Higashi-Narashino

Logistics

Landport Ome Ⅱ

Logistics

Landport Shinonome / Yasuda Soko

Logistics

Landport Hachioji

Logistics★★★★

Landport Kashiwa Shonan Ⅱ

Logistics★★★★

PMO Nihonbashi Kayabacho

O<ce

★★★

GEMS Ichigaya

RetailFacilities(Near
Stations)★★

GEMS Shinbashi

RetailFacilities(Near
Stations)★★

GEMS Sangenjaya

RetailFacilities(Near
Stations)★★

Properties

55

BELS

★★★★★

★★★★★
（ZEB Ready）★★★★★
（ZEB Ready）★★★★★
（ZEB Ready）

★★★★★

★★★★★
（ZEB Ready）

CASBEEProperties

Sector

DBJ Green
Building

BELS

CASBEE

RetailGEMS Namba

Facilities(Near★★

Stations)
Secom Medical Building

GEMS Shibuya

PROUD FLAT Kinshicho

O<ceRetailFacilities(Near
Stations)
Residential
RetailMusashiurawa Shopping Square

Facilities(Near
Stations)

Details of DBJ Green Building.

56

★

★

★

S
(equivalent5★)

Acquiring BELS certi6cation using Subsidy
We acquired BELS certiDcation for the following properties using subsidies based on \The existing building energy conservation
promotion project 2023 (support for diagnosis and display of energy conservation performance)].

Hanyu Logistics

Landport

Landport

CenterHachiojiⅡ

Iwatsuki

PMO
Nihonbashi

PMO
Ochanomizu

PMO
Hirakawacho

Landport Ome I

PMO
Shibadaimon

Mitsukoshi-mae

PMO

Landport

Shinnihonbashi

HachiojiAtsugi Minami
Logistics Center

PMO Higashinihonbashi

B Tower

Omron Kyoto
Center Building

57

GHG Reductions

Climate Change

Raising the Proportion ofEnvironmental

6Green6 Properties
in Our Portfolio

Performance

GHG Reductions

Water Resources andWaste Reduction, etc

Greenhouse gas emissions
Key Performance Indicator (KPI)
Achieve net zero greenhouse gas (GHG) emissions by 2050
Achieve 80% reduction in greenhouse gas (GHG) emissions by 2030 (compared with the 2019 level)

For actual results to KPI, please refer here.

58

Solar Power Generation Facilities
We are utilizing renewable energy by installing solar power generation panels on the rooftops of logistics facilities.

（FY2023 actual results）
Number of properties

Annual output

12 properties

14,867,000 kWh※Targeting properties that can be managed and tabulated by Nomura Real Estate Heating and Cooling Supply Co., Ltd.
※For properties acquired or sold during the period, the holding period is counted.

Landport Urayasu

Landport KasukabeLandport Atsugi

Energy Saving via a Switchover to LED Lighting
We are promoting a switchover to LED lighting at our properties to reduce energy consumption.

Shinjuku Nomura Building

Landport Kashiwa Shonan 1

Energy Saving via the Renewal of Air-Conditioning Facilities
We are engaging in the renewal of air-conditioning facilities at our properties to reduce energy consumption.

NMF Shiba-koen Building

59Energy Saving via installing double sash
We are installing double sash to improve heat insulation and reduce the air conditioning energy required to keep the room
temperature constant to reduce energy consumption.
（Sapporo North Plaza, NRE Yotsubashi Building）

Advanced energy-saving initiative: multiple e5ects realized through double skin (installation of double
sash windows)
Most eOcient energy-saving measure for existing buildings: Reduction of air-conditioning load (approx. 40% of total building energy
consumption)

In addition to replacing lighting and air conditioning at end of useful life with high-performance equipment, the retroWtting ofhighly cost-eXective double sash windows improves thermal insulation and achieves further energy savings(Note 1) Attributable to downsizing of air handling units (AHUs) and associated reductions in maintenance costs.

Installed inner glass
Slimmer window frames improved design and helped increase property value.
3 layers of glass in total:
Window on existing exterior wall (1 layer) + Double sash windows (hightransmittance, triple low-E glass: 1 layer + high transmittance glass: 1 layer)
NRE Yotsubashi Building

Received Award of Excellence in the mitigation category at the 2022 Osaka Climate Change Action Awards
OutlineAward given to businesses and other organizations that undertaken particularly
outstanding exemplar initiatives with regard to measures against climatechange and measures mitigating the heat island phenomenon, in recognitionof their achievements.

60

The installation of double sash windows has the eXect of improving indoor comfort as well as saving energy.
Eliminates ]cold drafts^ from air cooled by the window surface _owing at foot level
Reduces condensation that occurs around windows such as with existing glass/aluminum sash windows and air conditioning
outlets
Creates room spaces where the indoor temperature does not _uctuate much and there is little temperature diXerence between
the window area and the center of the room
Shortens the time for heating up, and improves sound insulation, etc.

Collaboration with Tenants
Based on an understanding that real property operation that takes into consideration global environmental issues will lead to stable
operations over the medium to long term, NMF is collaborating with tenants in owned properties and entering into green leaseagreements to address global environmental issues including reducing energy and water use as well as reduction and proper
disposal of waste throughout the entire business supply chain.

Green Lease ClausesStandard lease contracts proposed by NMF include the following clauses aimed at ensuring that NMF and tenants work together toreduce environmental burdens.
Collaboration in the implementation of energy- and water-saving measures and waste reduction eXorts to improve
environmental performance and acquire relevant external certiWcations
Information sharing pertaining to status and goals with regard to energy consumption and other environmental performanceindicators＜An example of a green lease scheme＞
Under this scheme, NMF and its tenants agreed to share expenses for investment in energy-saving facility upgrades (i.e., aswitchover to LED lighting)
NRE Yotsubashi Building
SORA Shin-Osaka 21
Sagamihara Tana Logistics Center

61

A System for Making It Easier to Check Energy Consumption (PMO Series)
Tenant Engagement Program
On top of using smart meters and Building and Energy Management Systems (BEMS), NMF cooperates with tenants to promote
initiatives for the environment. Properties leased under the PREMIUM MIDSIZE OFFICE (PMO) brand are furnished with tablet
terminals that make it easier to check the status of energy consumption, with the aim of ensuring that NMF and tenant companies
share an acute awareness of the need to pursue eco-friendly operations and reduce environmental burdens.

Replacement of Power Companies
NMF is engaged in the selection of power companies from a broad range of candidates, including Power Producer and Supplier (PPS)
companies inaugurated following the liberalization of Japanes electricity market . For each candidate, NMF gives due consideration
to such factors as their cost competitiveness and supply stability as well as CO2 emission coeOcients attributable to their energy
source mixes.

Adaption to Climate Change
We are proactively expanding greenery at our properties to curb rises in temperatures and reduce energy consumption. Also, we are
implementing a number of countermeasures to secure resilience against damage attributable to natural disasters arising fromclimate change.

Expanding GreeneryWe are proactively planting grasses and trees on the rooftops of our properties while striving to allocate larger spaces to greenery inthe course of facility renovation.

NRE Yotsubashi Building

NRE Kichijoji Building

62

Countermeasures against Flooding
Flood prevention barriers are in place at such facilities as the NRE Tennozu Building and the Sagamihara Tana Logistics Center toprotect them from surges attributable to high tides and heavy rainfalls.

NRE Tennozu Building

Sagamihara Tana Logistics Center

Countermeasures against Heavy Snowfalls
In Sapporo, Hokkaidogthe northernmost prefecture in Japangour properties are equipped with road heating systems to lessen theinconvenience of heavy snowfalls. Moreover, we have improved facilities to prevent the accumulation of snow near the roof edges inorder to ensure that passers-by are protected from the sudden heavy falls from above.

63

Water Resources and Waste Reduction, etc

Climate Change

Raising the Proportion ofEnvironmental

6Green6 Properties
in Our Portfolio

Performance

GHG Reductions

Water Resources andWaste Reduction, etc

Preserving Water Resources
Our Stance on and Basic Policy for Preserving Water Resources
Currently, 70% of the Earth3s surface is covered by water. However, fresh water, which is essential to human activities, including
business activities, constitutes only 2.5% of the Earth3s overall water volume. Furthermore, with a portion of the fresh water existingin the form of ice, the ratio of fresh water actually available to human society amounts to less than 1% of overall water volume.
Therefore, NMF recognizes that eIorts to preserve water resources and maintain the sustainable use of such resources is an integral
part of its business operations and sustainability initiatives. In line with this recognition, NMF is continuously striving to ensure theappropriate and eKcient use of water while reducing the overall water consumption of its properties.

Key Performance Indicator (KPI)
Achieve 10% reduction in water use per 0oor area (intensity) in our portfolio by 2030 compared withthe 2016 level.

For actual results to KPI, please refer here.

Renewal of Toilet Equipment
We renew toilet equipment in conjunction with tenant turnover. This practice is expected to help reduce water consumption.

64

Installation of Smart Sprinkler Systems
We have installed smart sprinkler systems at some of properties leased under the Landport brand. These systems utilize rainwater
stored in tanks and are expected to reduce the properties3 water consumption.

Proactive Use of Rainwater and Well Water
Other initiatives aimed at reducing water consumption include the use of rainwater and well water for Uushing toilets and watering
plants.
Rainwater：Some logistics facilities and oKce properties utilize rainwater to Uush toilets and water plants.
Well water：Some commercial facilities are equipped with well-water Xltering systems that provide clean water for Uushing toilets.

Promoting Waste Reduction
NMF strives to reduce waste through continuous monitoring of waste discharge and education for the tenants on waste reduction,
reduction of waste generation and recycle rate improvement.

Installation of Food-Waste Disposers
We have installed food-waste disposers at some properties in collaboration with tenants, thereby striving to reduce the volume ofwaste generated.

65

Prevention of Pollution and brown;eld development

Due Diligence Prior to Property Acquisition
Prior to making a decision about property acquisition, we address such factors as environmental risk associated with the land
subject to possible acquisition. In principle, we green-light investment only when the property in question fulXlls both of thefollowing criteria.
The building engineering report alleges no issues arising from the use or storage of hazardous substances to exist
There is no potential for soil pollution
Regarding the following properties owned by NMF, there was soil pollution before the land was acquired by Nomura Real Estate, butthey were acquired after soil pollution had been fully cleaned up. As stated above, when acquiring properties, NMF makes
investment decisions after considering the investment criteria related to environmental risks and other factors.
Landport Kashiwa Shonan I
Landport Ome I, etc.

Urban Redevelopment
With the aim of reducing its environmental burden, Nomura Real Estate Development Co., Ltd., which serves as NMFs sponsor, isstriving to acquire environmental certiXcation for its properties. Currently, properties developed for leasing under four proXtablebrands (PMO, GEMS, Landport and PROUD FLAT) in the four key development sectors are being certiXed one by one under the DBJ
Green Building, the Building-Housing Energy-eKciency Labeling System, CASBEE for Real Estate and other certiXcation programs
and NMF is actively acquiring these properties. NMF also acts in collaboration with its sponsor to re-develop its aged assets.
SpeciXcally, NMF sells these assets to the sponsor, which, in turn, takes advantage of its abundant development capabilities torenovate them, thereby reducing the environmental burden attributable to its portfolio.

※Please refer to Environmental Certi1cation for our acquisition status of environmental certi1cations to our properties.
※Please refer to our Sponsor8s website

with respect to the e<ort to acquire environmental certi1cations by the Sponsor.

66

Solving Social Issues Through Real Estate Investment

Solving Social Issues
Through Real Estate
Investment

Safety and Dignity

Physical and Mental Health

A>uent Economy

Attractive Communities

Solving Social Issues Through Real Estate Investment
Initiatives for Solving Social Issues
NMF recognizes that solving various social issues, creating new value, andcontributing to society through real estate investment will help improve local
attractions and real estate value, ultimately leading to higher unitholder value.

We identi=ed issues that we want to solve through our real estate investment(materiality) after engaging in repeated discussions in light of the issues facedby our stakeholders (local communities, tenants, property managers (PMs) andbuilding managers (BMs), employees, etc.) as well as the DPractical Guidance
for FSocial Impact Real EstateKL issued by the Ministry of Land, Infrastructure,
Transport and Tourism（Only Japanese）
Source: )Practical Guidance for 3Social Impact
Real Estate:; by the Ministry of Land,
Infrastructure, Transport and Tourism（OnlyJapanese）（Please refer to the table below for
applicable items.）

Materiality/KPI and performance trends
In order to resolve social issues, we have established policies, goals, speci=c initiatives and KPIs for the Investment Corporation. We
will continue to discuss speci=c initiatives and make additions and changes.

67

StageSocial Issue to Be Solved

Policy and Target

Speci=c Initiative and KPI at NMF

Fiscal 2023 Result(as of =scal year-end)*1‧Installation of estimatedseismic intensity
information distribution

Utilization of disaster risk alert systems(Development status)

Preparation against
natural disasters, etc.
(resilience)alert distribution system
for inland waterPrepare for natural
disasters, etc.,
aiming forproperties that canbe used safely withpeace of mind

system‧Installation of e-mailinundation risk
Installation of disaster kits inwarehouses, elevators, etc. (Number ofproperties installing such kits and

94 properties (34.2％)/275
properties

installation rate)
Installation of Jood protection facilities
in properties in preparation for Jood
damage risk (Number of properties
installing such facilities and installationrate)

47 properties (19.3%)/243
properties(Total(from January2022))‧Number of events: 7
events‧Number ofparticipating tenants:(1) Safety and Dignity

Measures for children
and the fallingbirthrate and aging
population

Contribute to NNO
POVERTYN for
children by holding
NDining Room forChildrenN events,
etc.

Participation in NDining Room forChildrenN events in collaboration withtenants of GEMS, etc. (Number of events,
number of participating tenants, andnumber of provided meals)

20 tenants‧Number of provided
meals: 1,400 meals＜Results for =scal 2023＞
‧Number of events: 2
events‧Number ofparticipating tenants:
6 tenants‧Number of provided
meals: 400 meals

Create diverse
value through real

Realization of diversity
and inclusion

estate investment
by diverse talent at

Diverse talent composition at the AssetManagement Company (Background,the Asset
Management

etc. of employees)

Safety and Dignity

Company
Provision of residential space at
OZer living spacethat provides peaceof mind to users
regardless ofnationality

Respect for humanrightsRealize diversity,
inclusion, andrespect for humanrights throughinstallation of
barrier-freeresidential facilities to foreigners(Number and proportion of residential

603 units (6.2％)/9,766
units

units for foreigners)
Posting of notices in English in common
areas of residential facilities (Number ofunits responding and response rate)

Installation of barrier-free toilets(Number and proportion of properties
installing such toilets) *2

facilities, etc.

68

7 properties (4.9％)/ 143
properties

84 properties (6.1％)/127
properties

StageSocial Issue to Be Solved

Policy and Target

Speci=c Initiative and KPI at NMF

Fiscal 2023 Result(as of =scal year-end)*1

Contribute to

Realization of ahealthy and safe life
and work style (health& safety)promoting people_s
health andInvitation of blood donation events at
owned properties (Number of properties

realizing a safe life
through various

holding such events and number ofparticipants)

and after `scal 2024)

eventsRealize healthy
workstyles withhigh productivity
through promotionof Jexible(2) Physical and Mental Health- (Scheduled to be held inworkstyles at theAsset Management

Promotion of Jexible work styles at theAsset Management Company (Paid leaveacquisition rate, etc.)

Physical and Mental
HealthCompany
Installation of delivery boxes at
Provide acomfortable andhighly convenientenvironment

Comfortable andhighly convenientthroughenhancement offacilities andservices, etc.

environment

residential facilities (Number ofproperties installing delivery boxes andinstallation rate) and introduction of
package-drop system (Number ofproperties introducing such a system
and introduction rate); through thesemeasures, also contribute to improving
the labor environment of delivery‧Delivery box 134
properties (93.7%)/143
properties‧Package-drop system
122 properties(86.5%)/143 properties

companies and reducing CO2 emissions
amount by reducing redeliveries(wellness)
Conduct a regularsurvey of tenants_satisfaction toenhance the
comfortability andconvenience ofTenant satisfaction assessment survey*Percentage of Nsatis`edN and（Survey target sectors for`scal 2023）

Nsomewhat satis`edN in overallsatisfaction‧Logistics sector 58.6％‧Housing sector 73.4％

tenants

69

StageSocial Issue to Be Solved

Policy and Target

Speci=c Initiative and KPI at NMF

Fiscal 2023 Result(as of =scal year-end)*1

Increase PMs_
motivation throughPM commendation
programs for talent
empowerment andhigherproductivity;
also shareknowledge by
disseminating thedetails of theTalent empowerment

commended workand revitalize theand enhancement ofreal estate

productivity

excellent role in property management
work for owned properties (Date ofprogram implementation, awardwinning cases)ー (Scheduled to be held
in and after `scal 2024)

investment
business
Develop andreinforce
employees_
capabilities
through(3) Afuent Economy

Grant awards to PMs who played anenhancement oftraining programs
at the AssetManagement
Company

Enhancement of training programs andencouragement of acquisition ofquali`cations at the Asset Management
Company, as well as training hours per
employee and outline of training, statusof employees with quali`cations

Afuent Economy

Contribute tomaintaining andRevitalization ofregional economies
and industry(innovation)

circulating
resources throughpromotion ofutilization ofrecycled goods
Contribute to
reducing theamount of waste
and CO2 emissions,and maintaining
and circulating
resources throughcollection ofdisused articles,
etc.

Utilization of recycled goods for carpet
tiles (Implemented areas, CO2 reductionー (Scheduled to be
implemented in and after

amount)`scal 2024)

Collection of clothing that became nolonger needed by residents at residential
facilities (Collection volume, CO2
reduction amount)ー (Scheduled to be
implemented in and after`scal 2024)

70

StageSocial Issue to Be Solved

Policy and Target

Speci=c Initiative and KPI at NMF

Fiscal 2023 Result(as of =scal year-end)*1(Total (from January2022))‧Number ofparticipating
prefectures: 15‧Number ofparticipating tenants:

Support producers,
disseminate local

Formation andrevitalization ofcommunity attractions
and cultures (identity)

358 tenants

foodstuZs, andprovide ample

Holding of regional invigoration events

customerat the GEMS series, etc. (Number ofexperience andprefectures where events were held,

support tonumber of participating tenants, number＜Results for =scal 2023

restaurants byholding regionalof used foodstuZs)＞‧Number ofinvigoration‧Number of usedfoodstuas: 135

participating

events, etc.

prefectures: 12‧Number ofparticipating tenants:
222 tenants‧Number of provided(4) Attractive Communities

meals: 35（Total (from April 2023)‧Number of events andRestoration andformation of local
communities

Restore and form
local and tenantcommunities byholding seminars
and otherexchange eventsand tenant
gathering seminars
at owned
properties

seminars: 9‧Number ofparticipatingcompanies: 342
Holdings of exchange events and tenant
gathering seminars at owned properties(Number of events and seminars,
number of participating companies)

Easy-to-moveenvironment(mobility)＜Results for =scal 2023＞
‧Number of events andseminars: 9‧Number ofparticipatingcompanies: 342

OZer an easy-tomove environment
for residents andneighbors throughinstallation ofshared mobility
vehicles, etc.; also
contribute to
reducing theamount of CO2
emitted while on
the move* A gathering seminar isscheduled for
November 12, 2024

Installation of shared mobility vehicles(Number of properties installing
vehicles, number of vehicles, travel
distance, time and CO2 emissions
amount reduced through use)

‧Number of properties
installing vehicles: 5
properties‧Number of vehicles:
57 vehicles（Total）‧Travel distance:
134,054 km‧Reduced time: 13,542
hours‧Reduced CO2: 8.9 tons
＜Results for =scal 2023＞
‧Travel distance:
134,054 km‧Reduced time: 13,542
hours‧Reduced CO2: 8.9 tons

*1 The 'scal year runs from March to February.
*2 Residential facilities are excluded.

71

Safety and Dignity

Solving Social Issues
Through Real Estate
Investment

Safety and Dignity

Physical and Mental Health

A>uent Economy

Attractive Communities

Safety and Dignity
Preparation of disaster alerts (earthquakes, inland waters) and installation of disasterprevention equipment
Prepare for natural disasters, etc., aiming for properties that can be used safely with peace of mind
Installation of estimated seismic intensity information distribution system
Installation of e-mail alert distribution system for inland water inundation risk
Installation of disaster kits in warehouses, elevators, etc.
(Number of installed properties: 94 properties Ratio: 34.2%)
Installation of Xood protection facilities in properties in preparation for Xood damage risk
(Number of installed properties: 47 properties Ratio: 19.3%)

Estimated seismic intensity information distribution system
The estimated seismic intensity information distribution system is an estimated seismic intensity and damage information
distribution system provided by Engineering and Risk Services Corporation and KAJIMA CORPORATION, based on estimated seismic
intensity information provided by National Research Institute for Earth Science and Disaster Resilience and location deHned bylatitude and longitude of NMFJs portfolio properties, specifying estimated seismic intensity of each property after the earthquake
and notifying an estimated seismic intensity and damage information to the Asset Manager.
This system enables us to implement initial responses quickly and eLciently, such as making judgements on emergency evacuationand conHrming damages by grasping information on potential damage to properties and sharing that information with relevant
parties.

72

E-mail Alert Distribution System for Inland Water Inundation Risk
E-mail Alert Distribution System for Inland Water Inundation Risk is a system that distributes information on assumed damage topersons in charge at the asset management company by predicting inland water inundation for each property based on
precipitation information, altitude data, drainage capacity information and such which CTI Engineering Co., Ltd., the service
provider, has collected from multiple administrative agencies as well as on the location information (latitude and longitude)
possessed by NMF.
With this system, we aim to minimize damage from inland water inundation and to reduce damage to assets of owners and tenants.

DChildrenFs Cafeteria EventG held at GEMS, etc.
Contribute to ^NO POVERTY^ for children by holding ^Dining Room for Children^ events, etc.

(Total(from January 2022))
Number of events: 7
eventsNumber of participating
tenants:
20 tenants
Number of provided
meals: 1,400 meals＜Results for Hscal 2023＞
Number of events: 2
eventsNumber ofparticipating tenants:
6 tenants
Number of provided
meals: 400 meals

73Fund management by diverse members [Initiatives at the asset managementcompany]
As an asset management company, we create various values through real estate management by diverse human resources.

Member composition of Nomura Real Estate Asset Management Co., Ltd.
Gender ratio

Age composition

Ratio of new graduates and midcareer graduates* Figures exclude executives, temporary employees, and employees on leave.

Experienced work of NMF Group Members
Current aLliation

Department name

Asset Management
ⅠDepartment(o0ce/logistics)
Asset Management
ⅡDepartment(RetailAM

Of
NumberPM BM Acquisition
which,
RetailofOLce Logistics
Residential HotelgeneralFacilities
peoplejobs

FMPlanning,
Finance Accounting development,
sales, etc.

12

2

ー

ー

2

3

1

3

1

3

0

0

0

8

15

4

4

2

ー

ー

ー

4

1

1

3

1

0

6

7

1

1

2

1

1

1

1

0

1

ー

0

1

5

Facilities/Residential/Hotel)Fund Management
Department(FM)74Providing living space to foreigners and multilingualizing notices in housing common
areas
Oder living space that provides peace of mind to users regardless of nationality
Number of foreign residents(percentage): 603 units (6.2%)
Number of buildings with English
display on notices (percentage): 7
properties (4.9%)

Installation of universal toilets and disabled toilets
Realize diversity, inclusion, and respect for human rights through installation of barrier-free facilities, etc.
Number of properties implemented (percentage): 84
properties (6.1%)

75

The long-duration seismic activity measures:
Shinjuku Nomura Building features seismic performance with the engineering works against the long-duration seismic activity
which is comparable to the most advanced skyscraper buildings. We prioritize the safety and security of tenants and visitors byinstalling seismometers on every Xoor which enables us to analyze the displacement amount of the building and the real time
monitor called Yuremoni which we can monitor the safe condition.

Fire drills
We regularly conduct Hre drills in our properties to improve the response capability in the event of a disaster.

Initiatives to ensure the safety and security of the tenants and the visitors
Elevators are equipped with emergency disaster kits and disaster kits have been distributed to tenants for the safety and security oftenants and visitors.

76

Physical and Mental Health

Solving Social Issues
Through Real Estate
Investment

Safety and Dignity

Physical and Mental Health

A>uent Economy

Attractive Communities

Physical and Mental Health
Attracting blood donation events
Through various events, we contribute to promoting people6s health and realizing safe living.

KPIs and planned disclosure items *Scheduled to be implemented from FY2024 onwards
Number of participants (cumulative)
Number of properties implemented (total)

Recommending 3exible working styles [Initiatives at asset managementcompanies]
By encouraging @exible work styles at asset management companies, we aim to achieve healthy and highly productive work
styles.

＜Various measures and results (FY2023)＞

Comfortable working environment
Implementation of telecommuting
Utilization of satellite oSce [H1T usage rate: 5.8%]
Introduction of super @extime work (no core time)
Liberalization of clothing77

Flexible working styles that suit your lifestyle
Taking childcare leave [Number of people taking: 7 people Taking rate: 100% (Note) Average number of days taken: 202.1
days]
Actively take paid vacation [Average number of paid vacation days taken: 18 days (Nomura Real Estate Investment
Advisors target: 12 days)]
Curbing long working hours [Average non-statutory working hours: 6.7 hours]

Utilizing digital
Popularization of mobile PCs [Rate of employees owning mobile PCs: 100%]
Popularization of company smartphones [Rate of employees owning company smartphones: 100%]
Implementation of DX training
Utilization of electronic signatures(Note) Calculated using the number of employees who gave birth to children within the year covered by the calculation as the denominator, and the number of
employees who took childcare leave during the year covered by the calculation (including employees who gave birth to a child in the past year) as the numerator.

Installation of delivery box
We will provide tenants and users with a comfortable and convenient environment by expanding our facilities and services.
Number of buildings with delivery boxes installed(percentage): 135 properties (94.4%)
Number of buildings with delivery system installed(percentage): 118 properties (79.2%)

Pursuing comfort and convenience based on tenant satisfaction surveys
We regularly conduct tenant satisfaction surveys and aim to improve the comfort and convenience of our tenants.

Percentage of [satis\ed[ and [slightly satis\ed[ in overall satisfaction (sectors targeted for this year6s implementation)
Logistics sector 58.6%
Housing sector 73.4%
Implementation measures
Insect control measures (already implemented at LP Itabashi)
Redevelopment of vehicle wiring within the facility (already implemented at LP Atsugi)
Garbage storage area was renovated in response to complaints of strange odors (already implemented at PU Ikebukuro and PU
Oimachi II)

78

Opened the innovative space NEON in Shinjuku Nomura Building

Support for tenants of PMO, Landport, GEMS and PROUD FLAT(*)Limited to PMO tenants for their job interviews, twice a year.

Please refer to PMO oScial website

79

Please refer to Landport oScial website (available only in Japanese)

Assisting tenants in kicking o- their operations
In addition to assisting tenants in recruiting, we ojer a broad range of support by referring them to partnered companies
specializing in such tasks as facility construction work, fund procurement and interior layouts.
We are also working on recruiting human resources to deal with the shortage of human resources.

80

Support for residents5 comfortable lives
We ojer k Chintai Hotto Supportl exclusively for residents and telephone reception is available for responding to any equipment
troubles 24/7, 365 days a year

＜Trouble case examples＞

Measures to improve tenant satisfaction
Ojered a variety of services for residents at owned residential properties

Items sharing services
Provision of monthly subscription services for high-quality
home electrical appliances
Proposal for a sustainable living such as kre-leasing, notdiscardingl

Please refer to PROUD FLAT oScial website (available only in Japanese)

Please refer to nom-rent.com (available only in Japanese)81

Customer Satisfaction Surveys
We regularly conduct customer satisfaction surveys to stay apprised of requests from and the opinions of our tenants, residents andusers. The results of these surveys are shared with property managers, building managers, developers and other relevant parties
and utilized to enhance the features and equipment of each property as well as services available to tenants. We have a policy toregularly conduct surveys in each sector. For the residential sector, surveys are conducted throughout the year; and for the oSce,
retail and logistics sectors, surveys are conducted in one sector each year, or in a three-year rotation. (In FY2020, surveys wereconducted in the residential and logistics sectors.) We have proactively utilized the valuable opinions collected through the surveys
to improve future satisfaction, as shown in the implementation examples below.

(Implementation example)
Based on opinions and requests obtained through tenant satisfaction surveys conducted at NMF Ginza 4-chome Building, we
installed a lounge on the \rst @oor by making ejective use of space in the entrance so that customers visiting tenants can use thespace for waiting or business meetings.

After

BeforeRenewal of the 1st @oor entrance and empty space at Sapporo North Plaza. Improve tenant comfort and maintain property
competitiveness.

BeforeAfter

BeforeAfter

BeforeAfter82

At PROUD FLAT Shibuya Tomigaya and PROUD FLAT Sangenjaya, we made shared bicycles available to residents to improvetransportation convenience and help them address lack of exercise due to work from home, and attracted mobile stores that provide
quality foodstuj and meals to enrich their time at home.

Shared bicycles

Mobile stores

Introduced Toilet Congestion Prevention Media Service (AirKnock Ads) at NMF Aoyama 1-chome Building.
By displaying the congestion status and usage time, congestion is alleviated and the comfort of residents is improved.

Investments in real estate with convenient transport access
When making investment decisions in real estate, etc., NMF considers accessibility to public transport systems, etc. from thestandpoint of convenience for tenants and visitors, etc.

83

A"uent Economy

Solving Social Issues
Through Real Estate
Investment

Safety and Dignity

Physical and Mental Health

A>uent Economy

Attractive Communities

A"uent Economy
Implementation of PM reward system
Through the implementation of a PM reward system, we aim to increase the motivation of PM personnel, and realize humanresource advancement and productivity improvements.
We also aim to disseminate the award details, share knowledge, and revitalize the real estate management business.

KPIs and planned disclosure items *Scheduled to be implemented from FY2024 onwards
Event dateAward examples

Enhancing the training system [Initiatives at the asset management company]
We aim to develop and strengthen the abilities of our employees by enhancing the training system at our asset managementcompany.

＜Various measures and results (FY2023)＞
Enhanced training [Training time per person: 12.88 hours Training cost per person: 145,714 yen]
Acquisition of qualiZcations [Real estate transaction specialist holder: 149 people (87.6%) Real estate securitization
master holder: 98 people (57.6%)]
English learning [Number of participants in English reinforcement training: 27 people (15.9%)]
Human resources dispatch program to overseas a_liated asset management companies [Number of dispatched people:
5 (cumulative)]84

Promoting the use of recycled products
We contribute to the maintenance and circulation of resources by promoting the use of recycled products.

＜Utilization of carpet tiles＞

KPIs and planned disclosure items *Scheduled to be implemented from FY2024 onwards
CO2 reduction amount
Number of tsubos

Collection of clothing, etc. at residential facilities
By collecting unnecessary items, etc., we contribute to reducing waste and CO2 emissions, and preserving and recycling resources.

KPIs and planned disclosure items *Scheduled to be implemented from FY2024 onwards
Collection amountCO2 removal amount85

Attractive Communities

Solving Social Issues
Through Real Estate
Investment

Safety and Dignity

Physical and Mental Health

A>uent Economy

Attractive Communities

Attractive Communities
Holding )regional revitalization events1 through the GEMS series, etc.
Through holding ,regional revitalization events, and other events, we aim to support producers, disseminate local ingredients,
enrich customer experiences, and support restaurants.

(Total (from January 2022))
Number of participating prefectures:
15
Number of participating tenants:
358 tenants
Number of ingredients used: 135＜Results for Bscal 2023＞
Number of participating
prefectures: 12
Number of participating
tenants: 222 tenants
Number of provided meals: 35

First edition of regional revitalization

2nd edition of regional revitalization

Third round of regional revitalization

through eating EGEMS x Nagasaki FairL

through eating EGEMS x Kyoto Fair

through eating EGEMS x Yamagata FairL

86

4th edition of regional revitalization

GEMS Sake Brewery Support Festival

through eating EGEMS x Nagano FairLGEMS Tohoku Support/Scallop Eating
Support Campaign

Eating and Regional Revitalization Part 5
EGEMS x Kochi FairL

Holding social events and tenant social seminars at owned properties
We aim to revitalize and form a community in the area and among tenants by holding exchange events such as seminars and tenantsocial seminars through our owned properties.

(Total (from April 2023))
Number of events held: 9 times
Number of participating companies:
342*November 2024 social seminarscheduled to be held

＜Results for Bscal 2023＞
Number of events and seminars:
9
Number of participatingcompanies: 342

Introduction of shared mobility
We will create an environment that makes it easy for residents and nearby residents to move around by installing shared mobility
systems.
It also helps reduce CO2 emissions during transportation.
Number of properties installed: 5properties
Number of installed units: 57 units(Cumulative)
Travel distance: 134,054 km＜Results for Bscal 2023＞
Travel distance: 134,054 km
Reduced time: 13,542 hours
Reduced CO2: 8.9 tons

Time saved: 13,542 hours
CO2 reduction: 8.9 tons

87Connection with Local Community
We hold several events for active communication with tenants and local residents.

Hosting and Participating in Community Events
Decorating properties. interior spaces in conjunction with a Halloween parade that took place in Sapporo8s
main street while introducing a costume leasing service plan

Organizing a vocational experience event, ?BIC Global Education Week?, in cooperation with tenants.

Contribution to regional revitalization through educational support for children
In collaboration with Yokosuka Junior Village, dressings developed by children are sold over-the-counter at Yokosuka Morebs City.
Supporting social education through agricultural business experience.

Collaboration event with a local design school (Machida Design & Architecture College) was held at theproperty covirna machida
Exhibition of paintings about Machida and the artist himself under the title ,I&MACHIDA,

88

Universal CityWalk Osaka: Improvement of tenant environment and reduction of waste
Reused discarded umbrellas (handed out for free) and distributed free drinks as a measure against heatstroke
At same time, posted and distributed SDGs popups
Not only improved job environment for tenant employees, but also led to a reduction in waste and greater awareness for ESG among
employees

Received Award of Excellence in the
mitigation category at the 2022 Osaka
Climate Change Action Awards

Popup

Organizing Events for Tenants
Organizing a Hfamily dayK event, inviting families of tenant companies. employees to tour their oLces andworksites

Holding an e vent at which toddlers are presented with toys in conjunction with the International Volunteer
Day

89

EDorts for regional revitalization
By acquiring large-scale logistics facilities, we are working to revitalize the local economy, such as creating employment in theregion.

Agreements with Local Community
Megalos Kanagawa:
We made an agreement with Kanagawa Bre department on the use of swimming pool water for BreBghting operations in the eventof disaster such as large scale earthquakes.

Shinjuku Nomura Building:
We contribute to local disaster prevention by making an agreement with Shinjuku City Ogce to accommodate the stranded people
in the event of disaster such as large scale earthquakes.

90Supporting UNHCR campaign:
ORering a space for supporting UNHCR activities.

Cooperation to anti-terrorism training:
We cooperated to anti-terrorism training with Osaka Prefectural Police Department by providing a space in ourbuilding.

Health & Welfare
We are contributing to not only a child caring support for both local residents and workers but local health and welfare by leasing
our properties to nursery schools and clinics.

91

Governance

GovernanceCompliance

Risk Management

Supplier Management

Governance of the Investment Corporation
Governance of NMF
The organization of the Investment Corporation consists of the General Meeting of Unitholders which is composed of unitholders,
one Executive Director, three Supervisory Directors, the Board of Directors* whose members include Executive Directors andSupervisory Directors, and an Independent Auditor. The Investment CorporationGs Independent Auditor is Ernst & Young ShinNihon
LLC.
※Based on the Act on Investment Trusts and Investment Corporations and the Investment Corporation6s Articles of Incorporation, the number of supervisory directors must be
the number of executive directors plus 1 or more.
※Although NMF has a Board of Directors comprised of an executive director and supervisory directors, it is required that operations are outsourced as the use of employees is
prohibited under law.

For details on the above organization, see the latest Securities Report, NPart 1. Fund Information / Section 1. Status of the Fund / 1.
Overview of the Investment Corporation / (4) Structure of the FundV. Only available in Japanese.

Executive Director and Supervisory Directors

The status and term of o/ce for the executive director and the supervisory directors
The Executive Director has authority to execute NMFGs business and perform any and all acts in or out of court regarding the NMFGs
business on behalf of NMF.
Supervisory Directors have authority to supervise the Executive DirectorGs execution of duties.
At Board of Directors meetings of NMF, each Supervisory Director receives a report from the Executive Director on the status ofbusiness execution, the status of asset management by the Asset Management Company and matters regarding compliance andrisks and, if necessary, the Executive Director is asked to attend the Board of Directors meeting to report those matters.

See About NMF/Corporate ProYle/Director information.
The term of oZce has been set as two years in the Articles of Incorporation for both the executive director and the supervisory
directors.

92

Criteria for Electing Executive Director and Supervisory Director
Candidates for directors are elected provided there are no causes for disqualiYcation as stipulated in the Act on Investment Trusts
and Investment Corporations (ITA) and other laws and regulations (Articles 98 and 100 of the ITA and Article 244 of Ordinance for
Enforcement of the ITA). Moreover, they are appointed under the following reasons upon the passing of a resolution at the General
Meeting of Unitholders. The current directors are all external experts (lawyers, accountant, real estate appraiser) who have no
special interests in the Investment Corporation.

Title

GenderAttendance atBoard ofDirectors meetings(FY2023)

Male

100％
（11 times/ 11
times）

Mineo
Uchiyama

As a certiFed public accountant, Mr. Uchiyama is well versed inaccounting and tax matters. He also has experience auditing theaccounts of companies listed on the Tokyo Stock Exchange, and has
supervised the Executive DirectorOs tasks as a Supervisory Director for
NMF. Mr. Uchiyama was selected as a Supervisory Director as it wasdetermined that he has suIcient knowledge and experience to conduct
the work required as a member of the Board of Directors for NMF.

Male

100％
（11 times/ 11
times）Mika
Okada(Note1)

As a lawyer, Ms. Okada is well versed in various related laws andregulations including real estate transactions. She was selected as a
Supervisory Director as it was determined that she has suIcientknowledge and experience to supervise the Executive DirectorOs tasks as
a Supervisory Director for NMF and to conduct the work required as amember of the Board of Directors for NMF.

Female100％（11 times/ 11
times）

Toko
Koyama(Note2)

As a real estate auditor, Mr. Owada possesses vast insight regarding thefairness and transparency of real estate transactions. He has also had
experience as Director, etc., at multiple corporations and has supervised
the Executive DirectorOs tasks as a Supervisory Director for NMF. Mr.
Owada was selected as a Supervisory Director as it was determined that
he has suIcient knowledge and experience to conduct the workrequired as a member of the Board of Directors for NMF.

Female100％（11 times/ 11
times）

Name

Reasons for election

Mr. Yoshida was the Supervisory Director of the former Nomura Real

Executive
Director

Supervisory
Director

Supervisory
Director

Supervisory
Director

Shuhei
YoshidaEstate Master Fund, Inc. and NMF, and is an attorney. As such, he is anexpert in the ITA and related laws and regulations, specializing in thenewest laws and regulations for real estate, particularly land andbuilding leases, Fxed-term land lease holdings, Fxed-term house rentals,
and lifetime leases. Upon considering his abundant experience, Mr.
Yoshida was selected as Executive Director as it was determined that hehas suIcient knowledge and experience for the position and to exercise
his right to represent NMF.

(Note 1) Concerning Ms. Okada, the name described above is the former and professional name, but the name on the family register is Mika Furusawa. In addition, her term ofoJce has started from June 1, 2019.
(Note 2) Term starts on June 1, 2023

Director Equity Policy
Directors of NMF may not buy or sell investment units of NMF in order to prevent insider trading as stipulated in the Insider Trading
Management Regulations.

Administration Fees, etc.
Administration fees the Investment Corporation pays are as follows:93Compensation for Executive Directors and Supervisory Directors
Compensation for an executive director shall be no more than 800,000 yen per month, while compensation for a supervisory
director shall be no more than 700,000 yen per month. The amount of compensation shall be determined by the Board of Directors,
taking into account the levels of compensation of directors and statutory auditors performing similar work in similar positions forother companies and legal entities, general economic trends, trends concerning wages and other factors.
For total amounts of compensation by operation period, see the Asset Management Report, NOverview of the Investment
Corporation, (3) Matters Concerning Directors, etc.V Only available in Japanese.

Title

Name

Total compensation amount (FY2022)

Executive Director

Shuhei Yoshida4,800 thousand yen

Supervisory Director

Mineo Uchiyama

3,600 thousand yen

Supervisory Director

Mika Okada

3,600 thousand yen

Supervisory Director

Toko Koyama

2,700 thousand yen

Compensation for Independent Auditor
The compensation amount to the independent auditor for each Yscal period subject to audit shall be determined by the Board ofD
irectors within a maximum amount of 30 million yen. For total amounts of compensation by operation period, see the Asset Man
agement Report, NOverview of the Investment Corporation, (3) Matters Concerning Directors, etc.V Only available in Japanese.

Title
Independent Auditor

NameTotal compensation amount (FY2022)

Ernst & Young ShinNihon LLC

54,445 thousand yen（Note1）Executive directors, supervisory directors or independent auditors (here and hereafter in this Article, referred to as the QDirectors Etc.R) are liable for damages to NMF ifthey have neglected to perform their duties. However, if Directors, Etc., have performed their duties in good faith and without gross negligence, and when NMF Tnds it
particularly necessary, taking into consideration the details of the facts that are the source of liability, the status of the execution of the duties of such Directors Etc., andother circumstances, NMF may, to the extent permitted by laws and regulations, by resolution of the Board of Directors, exempt such Directors Etc., from liability fordamages under the Act on Investment Trusts and Investment Corporations and the Investment Corporation6s Articles of Incorporation.
（Note2）Of the remuneration paid to the Independent Auditor, ¥49 million was for Accounting adit and ¥3 million was for preparing a comfort letter（non-Audit）

94

Compensation for the Asset Management Company
Compensations for the Asset Management Company are comprised of Management Fees, Acquisition Fees, and Disposition Fees,
and are decided by the following calculation method determined in the Investment CorporationGs Articles of Incorporation.
As for the compensation structure for the Asset Management Company, a system (Management Fee II) has been implemented toincrease or decrease compensation based on the amount of proYts for the Investment Corporation. It is thought that this will
strengthen the asset management companyGs sense of commitment in terms property management, such as increasing rents andcutting appropriate costs, and funds procurement, such as negotiating decreases in Ynancing conditionality with lenders.
With the implementation of this compensation system, the linkage with net income will rise, and it is thought that this willcontribute to further increases in unitholder value.
For total amounts of compensation for each position by operation period, see the Asset Management Report, NConditions of Costsand Liabilities, (1) Details of Costs for Operations, etc.V Only available in Japanese.

Fee structure

Calculation method

Asset management feeⅠ（Total assets-linked）

Total assets (*1) ×

0.45％（annual basis）

Asset management fee II（Net income-linked）

Net income (*2)

×

5.5％

Acquisition fee

Acquisition Price ×

1.0％

Disposition fee

Disposition Price ×

1.0％（*1）Excludes unamortized goodwill.
（*The amount obtained by adding goodwill amortization cost to Net Income before Deduction of Management Fee II and deducting gain on negative goodwill, after
compensation of loss carried forward (if any).

For details on the above compensation for management and compensation for management, etc., of other asset custody companies, general administrative agents (administration, accounting), and administrator of the investorsf registries, see thelatest Securities Report, NPart 1. Fund Information / Section 1. Status of the Fund / 4. Commissions, etc., and Taxes.V Only
available in Japanese.

95

Management Structure of NMF
NMF has appointed Nomura Real Estate Asset Management Co., Ltd. (NREAM), to perform all asset management services for NMF.
NREAM manages NMFGs assets in accordance with the Asset Management Agreement conducted between NMF and NREAM.
NREAM is entrusted with the management of assets of multiple investment corporations including NMF and other real estate funds
in addition to ogering advice on investments.

96

＜Overview of Each Committee＞
Name of Committee

Overview
A Committee that deliberates on investment decisions.

Investment
Committee

This committee is charged with the deliberation of Nomura Master FundGs policies governing
important matters. SpeciYcally, it discusses the fundGs basic policies for asset management andinvestment advisory activities along with its asset administration policies and Ynances. Thus, thecommittee acts as a decision-making body for the Asset Management Company.
A body that monitors risks and deliberates on assessment, analysis of risks, etc.
This committee regularly conducts monitoring, assessment, and analysis of investment risk, externalrisk, and disaster risk associated mainly with asset management, and provides necessary guidance
and advice to each department.
Constituents

Chair：President and Executive OIcer
Members：Executive OIcers, Compliance OIcer, and any other person appointed by the chair.
(Note) Excluding Head of Fund or Head of each department of NMF Investment Management Group and parttime Executive OIcer

Frequency of
meetings

As a basic rule, the chair calls a meeting once a week.
However, a meeting can be held immediately if needed.

A committee that deliberates and makes decisions regarding compliance.

Compliance
Committee

In addition to monitoring the status of legal compliance, this committee works to avoid coniicts ofinterest. To this end, it deliberates on and gives approval for speciYc transactions as internallydeYned by the Rules Concerning Transactions with Related Parties.
Constituents

Chair：Compliance OIcer
Members：outside experts appointed by the chair

Frequency of
meetings

As a basic rule, the chair calls a meeting once every three months.
However, a meeting can be held immediately if needed.

A body that monitors, assesses, and analyzes risks; and deliberates on risk countermeasures, etc.

Risk Management
Committee

This committee regularly conducts monitoring, assessment, and analysis of disaster risk andinternal risk associated mainly with corporate management as well as internal risk associated withasset management; and concerning these risks, deliberates on basic policies and such for actions forrisk prevention, response to risk after occurrence, prevention of reoccurrence, etc.
Constituents

Chair：Executive OIcer in charge of Legal & Compliance Department
Chair：Executive OIcer in charge of Legal & Compliance Department Members: Vice President and Executive
OIcer, Senior Managing Executive OIcer, and Managing Executive OIcer

Frequency of
meetings

The chair calls a meeting at least once every three months.
However, a meeting can be held immediately if needed.

A committee that prevents coniicts of interest between operated funds prior to their occurrence

Project Screening
Committee

In order to secure appropriate handling of information where investments overlap between funds,
etc., and to prevent coniicts of interest between funds, etc., prior to their occurrence, the AssetManagement Company obtains information on a candidate property, the Compliance OZcer
convenes a committee meeting aimed at determining which subsidiary would take precedence overits counterparts in negotiations for the particular property acquisition.
Constituents

General manager of the Acquisition Department, managers of business units operating under thatdepartment, and the fund managers of each operating funds.

For details regarding the management structure of the asset management company, see the Securities ReportGs NPart 2. Detailed
Information of the Investment Corporation / Section 4. Status of Related Corporations / 1. Conditions of the Asset Management
Company.V Only available in97Compliance

GovernanceCompliance

Risk Management

Supplier Management

Compliance
Basic Policy on Compliance
The Asset Management Company, under the basic recognition that the management operations of NMF;s assets comprise themanagement of the capital of NMF;s unitholders, believes that con>rming the status of compliance with laws, and su@ciently
securing the elimination, etc., of conBicts of interest in transactions with stakeholders, etc., as stipulated in the Act on Investment
Trusts and Investment Corporations, and with transactions, etc., where stakeholders, etc., manage the assets or oEer advice relating
to management or operations, is particularly important in protecting unitholder;s pro>ts and securing the trust of unitholders. From
this perspective, the Asset Management Company has established the following structure regarding compliance, and has madesu@cient considerations to ensure that this gets consistently implemented.

Compliance Structure
Board of Directors
The Board of Directors strives to achieve and ensure compliance by establishing the system necessary for compliance, formulating acompliance manual, and promoting its implementation.

Compliance Committee
The Compliance Committee has been established as an organ to con>rm the status of compliance with laws and regulations and todeliberate upon transactions, etc., with stakeholders, etc.
One lawyer and one professor in graduate school have been appointed to the Compliance Committee and attend meetings asexternal committee members. Both are third parties that do not have conBicts of interest with the Investment Corporation or withsponsor company groups. Because there is a system of checks by independent third parties which is well suited for compliance, we
believe that this secures the eEectiveness of observing compliance.

Please see the following for constituents and frequency of meetings of the Compliance Committee. (link for the corporate
governance page)98

Legal & Compliance Department and Compliance O7cer
In order to establish an appropriate management structure and to conduct business with clients honestly and fairly by securing the
optimization of tasks in Type II Financial Instruments Business, etc., an internal system of checks-and-balances has been secured
through the establishment of the Legal & Compliance Department as the department in charge of compliance.
Moreover, the head of the Legal & Compliance Department will be the Compliance O@cer, the person in charge of compliance, andwill constantly monitor the Asset Management Company;s conduct of aEairs to ensure that these are being conducted based on laws
and regulations. For this reason, the Compliance O@cer must ensure that all proposals drafted by the Investment Committee
observe laws and regulations and that there are no problems in terms of other compliance issues. In addition, the ComplianceO@cer will attend meetings held by the Investment Committee (decision-making organ), which is the committee which decides
management policies, etc., for each fund, etc. Here they can state their opinion on the situation of compliance in terms of thedeliberative process and conclusions for all proposals drafted by the Investment Committee. However, the Compliance O@cer does
not have the right to vote at the Investment Committee in order to maintain neutrality when it comes to decision-making (thisincludes cases where the Compliance O@cer is also the Executive Director).
(Note) NREAM is contracted for asset management and investment advice for multiple investment corporations (NMF and Nomura Real Estate Private REIT, Inc.)and other real estate funds, etc. (these include special purpose companies and corporations or associations of other structures which are vehicles forinvestments, settlor companies of investment trusts, and trustees, etc., but are not limited to these.). These multiple investment corporations and other realestate funds, etc., will be called Cfunds, etc.D

Decision-Making Process for Investment Management and Prevention of Con=ict ofInterest in Transactions
At Investment Committee meetings, the Asset Management Company is responsible for deliberating on basic policies related tooperating the assets of the Investment Corporation, operation management policies related to assets, and policies regarding
important matters such as >nance. In addition, the Asset Management Company also deliberates on acquisition or sale of assets
based on relevant policies, operation management, and important matters related to operating the assets of the Investment
Corporation such as funds procurement, and conducts decision making as the asset management company.
All proposals to be submitted to the Investment Committee are to be screened by the Compliance O@cer for violations and conBict
with laws and regulations and if they violate any other compliance issues. When a proposal is deemed an Vimportant transaction
with stakeholder,W as internally de>ned by the Rules Concerning Transactions with Related Parties, or when it is deemed necessary
in view of other details, a Compliance Committee meeting is called and further deliberation is conducted upon the observance oflaws and regulations and violation of other compliance issues. Unless proposals have gained approval through this process, theycannot be proposed at the Investment Committee.
Furthermore, subsequent to approval by the Board of Directors of the Asset Management Company, approval from the Investment
Corporation;s Board of Directors is required prior to a transaction involving the acquisition, disposition or lending of securities orreal estate between the Investment Corporation and a related party (as de>ned in Article 201-1 of the Investment Trust Act) of theAsset Management Company, except certain transactions determined not to have a signi>cant impact on each investment
corporation under the Ordinance for Enforcement of the Act on Investment Trusts and Investment Corporations.
The Board of Directors has determined that transactions with a related party shall always be conducted fairly based on market
prices.

99

Establishment and Execution of Compliance Manual
Nomura Real Estate Group Code of Action has set the basic standards that all executives and staE of the Group should observe. With
the purpose of actualizing the Nomura Real Estate Group Code of Ethics, a Compliance Manual was established which indicatesgoverning laws and regulations (Financial Instruments and Exchange Act, Act on Investment Trusts and Investment Corporations,etc.) that all executives and staE should observe, basic policies and the roles of each organization in executing compliance, andoperational procedures for executives and staE.
Based on this Compliance Manual, a Compliance Program is drawn up each >scal year as a basic rule as a detailed plan to realize
compliance, and thorough compliance with laws are aimed for through executing compliance training.

Compliance Training, Education
In order to observe compliance and cultivate awareness, the Asset Management Company conducts regular compliance training(every month) for all employees,（including contract employees, etc.), mainly outlining basic policies of compliance and thoroughobservance standards ensuring that employees master laws and regulations that must be observed. Moreover, individual training for
new employees and for those departments that have special characteristics are also conducted. Moreover, training is also conducted
throughout the year based on the Compliance Program set by Nomura Real Estate Group.

100MonthTraining Session Theme

Attendance Rate

Mar-23This year.s summary

100.0%

Apr-23Fiscal 2022 Compliance Activity Plan(From the 2023 compliance program)

100.0%

May-23

ConCict of Interest Management System

100.0%

Jun-23

ConCict of Interest Management System(Practice problem)

100.0%

Jul-23

Information management : Consignment of handling of important information

100.0%

Aug-23

Information management system(Practice problem)

100.0%

Sep-23

Principle-based compliance(1st)「Prinsimple-based compliance risk management in the real estate investment management industry」

100.0%

Oct-23

Principle-based compliance(2st)100.0%

Nov-23

EOorts to eliminate anti-social forces

100.0%

Dec-23Insider trading regulations

100.0%

Jan-23

AML/CFT management system

100.0%

Fwb-23

Securities inspection and member survey

100.0%

Please see the following for the initiatives to raise awareness for the compliance by Nomura Real Estate Group. (link)

Response to Compliance Violations
The Asset Management Company has developed the Information Communication Guidelines which describe in-house structuresand speci>c procedures so that if a risk occurs that should be managed by the Asset Management Company, such as a complianceviolation, information regarding the case that has occurred can be communicated quickly and accurately.
Based on the Guidelines and other various regulations on compliance, the Compliance O@cer (Head of the Legal & ComplianceDepartment) who receives the information regarding a case that has occurred asks relevant departments, etc. to investigate andreport on the causes of the case and measures to be taken, considers the materiality of the case, and if necessary, reports and oEers
an opinion to the Director and President and asks for appropriate measures to be taken.
With regard to improper behavior or behavior that may be considered improper from the standpoint of compliance, if determined
necessary by the Compliance O@cer, responses to improper behavior or behavior that may be considered improper are deliberated
on by the Compliance Committee.

101Responding to Antisocial Forces
The Asset Management Company will observe the Code of Ethics implemented by Nomura Real Estate Group, of which it is a part,and its basic policy is to cut all relations with antisocial forces. In addition, the Asset Management Company has established its own
VBasic Policies against Antisocial ForcesW which takes into consideration VGuideline for How Companies Prevent Damage from AntiSocial Forces (Government policy)W and the VComprehensive Guidelines for Supervision of Financial Instruments Business
Operators,W and will deal with antisocial forces with a resolute attitude to cut any relations with them.
In addition to constructing and executing a screening structure to identify antisocial forces during transactions by partnering with
Nomura Real Estate Holdings, Inc., we will also execute speci>c initiatives looking at cutting relations with antisocial forces throughimplementing articles excluding organized crime from agreements with clients and by ensuring thorough examination when making
transactions under the Act on Prevention of Transfer of Criminal Proceeds.
We thoroughly implement the above eEorts even when dealing with outsourced companies, intermediaries, etc. at asset
management companies.

Preventing Bribery, Corruption
The Asset Management Company will observe the Code of Ethics implemented by Nomura Real Estate Group, of which it is a part,and works towards preventing bribery when entertaining clients or giving gifts.
Speci>cally, the Group Code of Action provides, with regard to receipt or provision of entertainment or gifts from or to business
partners, ^Nomura Real Estate Group o@cers and employees shall not request, provide, or receive entertainment or gifts
incompatible with sound business practices or common sense^ and ^No o@cer or employee shall use their professional position torequest or accept bene>ts or favors from a business partner.^ The Group strictly implements the Code of Conduct, for instance,
detailed reporting and documentation of the details of entertainment or goods provided or received by its o@cers and employees.
Moreover, with a high regard for the VGuideline to Prevent Bribery of Foreign Public O@cials,W formulated by the Ministry of
Economy, Trade and Industry, a VBasic Policy on Preventing Bribery of Foreign Public O@cialsW and has been established andreleased on its website. Under the same policy, the Asset Management Company has also established VRegulations on Preventing
Bribery of Foreign Public O@cialsW and VGuidelines on Preventing Bribery,W and conducts speci>c internal processes when dealing
with foreign o@cials such as entertaining, giving gifts, inviting, donating, and utilizing their agencies, etc.
In addition, the Compliance Department regularly monitors the status of entertainment and gifts given to o@cers and employees(once every six months).
We aim to distribute this knowledge to executives and employees by conducting regular training regarding bribery prevention for
executives and employees in Nomura Real Estate Group;s foreign business departments and by incorporating it into the training
material for the monthly Compliance Training conducted by the Asset Management Company.
In >scal 2019, there were no signi>cant legal violations, >nes or penalties related to corruption or bribery.

102

Risk Management

GovernanceCompliance

Risk Management

Supplier Management

Risk Management
Basic Policy on Risk Management
As an expert in asset management, the Asset Management Company recognizes its responsibility to conduct the best management
possible by understanding and managing various risks appropriately, particularly risks involving management. Moreover,understanding that non-thorough risk management damages the assets it manages and thus hurts the pro>ts of its clients, it
positions appropriate management and control of risks based on the characteristics of operations and risks as one of its mostimportant tasks in management. From this perspective, the Asset Management Company has established the following structure
regarding risk management, and has made suBcient considerations to ensure that this gets consistently implemented.

Risk Management Structure
Board of Directors
The Board of Directors serves as the integrated management body for the risks to be managed by the Asset Management Company.
The Board of Directors regularly conducts monitoring, assessment, and analysis of investment risk and external risk associatedmainly with corporate management among other risks, and provides necessary guidance and advice to each department. Details ofdeliberations at the Investment Committee and the Risk Management Committee are reported to the Board of Directors on a regularbasis.

Investment Committee
The Investment Committee regularly conducts monitoring, assessment, and analysis of investment risk, external risk, and disasterrisk associated mainly with asset management among other risks, and provides necessary guidance and advice to each department.
It also reports the results of the assessment and analysis and the contents of the guidance and advice to the Board of Directors.
Please click here for the members and frequency of meetings of the Investment Committee.

103

Risk Management Committee
The Risk Management Committee regularly conducts monitoring, assessment, and analysis of disaster risk and internal risk mainly
associated with corporate management as well as internal risk associated with asset management; and concerning these risks,deliberates on basic policies and such for actions for risk prevention, response to risk after occurrence, prevention of reoccurrence,etc. It also reports the contents to the Board of Directors.
Please click here for the members and frequency of meetings of the Risk Management Committee.

Legal & Compliance Department and Compliance O<cer
The Legal & Compliance Department and Compliance OBcer control risk management of the Asset Management Company andconduct monitoring, etc. of the eQectiveness of risk management operations of each department as well as the appropriateness ofmeasures and the status of their implementation.
In addition, the Compliance OBcer (Head of the Legal & Compliance Department) fully veri>es the details of identi>cation, analysis,
evaluation and management of risks of each department.

Establishment and Execution of Risk Management Manual
In addition to maintaining an appropriate risk management structure by establishing risk management regulations to specify themethods of risk management, monitoring, etc., the Asset Management Company works towards thorough risk management throughthe monitoring, assessment, analysis, etc. conducted by the Board of Directors, Investment Committee, and Risk Management
Committee.
Based on this Risk Management Manual, each department can understand and evaluate the risks that exist within their respective
areas of work, appropriately compile potential responses based on the evaluation, and can establish a yearly plan regarding risk. By
implementing these, a posture capable of conducting risk management appropriately at the opportune time is enabled, enhancing
eQectiveness, enabling the prevention of risk manifestation and reduction of adverse eQects when risks do manifest. Various related
regulations for risk management are reviewed regularly to decide if they need to be revised and, if necessary, they are revised or new
regulations are established. Furthermore, where appropriate, advice or validation is sought from external professionals for the
purpose of validating the appropriateness of risk management methods, etc.

Risk Assessment
In principle, the Asset Management Company conducts risk assessment once a year based on the risk management manual. Th
e Asset Management Company carries out risk management in a timely and appropriate manner, such as the prevention of risk man
ifestation and reduction of adverse eQects when risks do manifest by accurate identi>cation of risks inherent in business operations (clari>cation and visualization), calculation of potential risks (risk-speci>c assessment without assumption of internal con
trol system) and residual risks (risks remaining even after taking into consideration the eQectiveness of the internal control
system) of such risks, and formulation of countermeasures (selection of monitoring targets and consideration of additional risk measures) based on these risks.

104

BCP Measures
In addition to preemptively preventing the expansion of damages during disasters, the Asset Management Company has establishedthe necessary internal structure and a Business Continuity Plan which outlines necessary matters which will help secure thecontinuation of business operations during disasters and the early return to regular business practices. This plan regulates the Uow(process) of operations from the occurrence of a disaster to the full recovery of operations, and clari>es decision-makers and asystem of command that will enable Uexibly responses to matters aQected by the disaster, depending on the details of the disasterand the size of the damages. Moreover, after large-scale disasters occur, we will evaluate the eQectiveness of the plan and theimportant tasks list, and will also identify matters that can be improved. We will continually work to improve the eQectiveness of thisplan, etc.
In order to raise awareness of disaster prevention among executives and employees and to improve the eQectiveness of WBusinessContinuity PlanX, the Asset Management Company conducts BCP training once a year in principle.

Con>rmation of Executive and Employee Safety
Nomura Real Estate Group, which the Asset Management Company belongs to, has implemented a safety con>rmation system via
the internet and email to quickly comprehend the situation of the disaster and the safety of executives and employees during adisaster. A safety con>rmation drill is held four times a year to all executives and employees of the Group.

Establishment of Inquiry/Assistance Service
The Group has set up the Nomura Real Estate Group Human Rights Desk as a point of contact for consultation on human rights
issues which is accessible to all employees regardless of employment status, the Sexual and Power Harassment Hotline as anexternal point of contact for consultation, and the Nomura Real Estate Group Risk Helpline as a point of contact for whistle-blowing
and general consultation on human rights abuse and other issues prohibited in the Code of Action. The Group also established aninternal point of contact, as well as external points of contact (the Company[s lawyer and outsourcing contractors). In addition, theGroup established the Helpline for Business Partners (Corporate Customers) as a point of contact for reporting on human rights
abuses or possible abuses by Group employees. Reports and consultations received through these points of contact are accepted
anonymously, and the Group ensures that the content of information received is kept con>dential. If, as a result of investigation,
there is a clear violation of respect for human rights, the Group takes appropriate action against the perpetrator, and protects thevictim and whistleblower so that they are not treated prejudicially for having made a report.

Internal Audit
The Asset Management Company has established the Internal Audit Department as a division to conduct internal audits. The
Internal Audit Department formulates an audit plan for each >scal year and, based on the plan, conducts internal audits across all
operations of all departments for each department once a year in principle. The Internal Audit Department uses a risk-based
approach from an independent and objective standpoint to assess the eQectiveness of the risk management, risk control, andgovernance processes and works to improve organizational operations. and the department con>rm that appropriate businessexecution is carried out based on various regulations and manuals that stipulate business procedures in accordance with the
Nomura Real Estate Group Ethics Regulations and various laws and regulations related to the business.

105Supplier Management

GovernanceCompliance

Risk Management

Supplier Management

Supplier Management
Green Purchasing Manuals
We have formulated Green Purchasing Manuals to clarify procedures for external collaboration. By doing so, we ensure that products
and services being purchased in connection with the management of NMFAs real estate portfolio are preferentially selected fromthose satisfying our prescribed standards associated with the reduction of environmental burdens. Moreover, with regard to theselection of suppliers (e.g., property managers (PMs), building managers (BMs) and construction Drms), we have made the status of
their sustainability initiatives a key consideration alongside such factors as their product quality, price competitiveness,creditworthiness and service content.

Periodic Assessments of PMs and BMs
In principle, we annually assess our PMs and BMs, which are commissioned to manage NMFAs assets, to determine their Dnancial
soundness and quality of their services while engaging in constant monitoring aimed at evaluating such items as the status of theirsustainability policies and sustainability promotion frameworks, legal and regulatory compliance and information management.
Based on assessment and evaluation results, we provide them with feedback and, if necessary, guidance with regard to areas inneed of improvement. We also consider replacing any PM or BM that fails to enact improvements in accordance with such guidance.

ESG-Related Training for PMs
We aim to help raise sustainability awareness among PMs and step up collaboration with them, to this end providing them with
relevant training sessions at least once a year. With external specialists serving as lecturers, these training sessions are designed tocall their attention to the importance of sustainability, address the latest trends in sustainability initiatives and brief them on thestatus of NMFAs sustainability measures and targets and the progress it has made. In these ways, we ensure that all PMs share ouracute awareness of sustainability and are properly updated.

106Sustainability FinanceGreen Finance
NMF practices investment management taking into consideration Environment, Society and Governance (:ESG;). As a part of suchinitiatives, NMF strives to realize a sustainable environment and society by implementation of green Enance including green bonds
and green loans etc...

Green Bonds
Green bonds are a type of bond instrument to Enance eligible green projects and they are issued in accordance with the Green Bond
Principles established by the International Capital Markets Association.

Green Loans
Green loans, like green bonds, are borrowings to procure funds to be used for environmentally friendly businesses, in accordancewith the Green Loan Principles, an international guideline.

Green Finance Framework
NMF established Green Finance Framework in order to implement green Enance.

（1）Use of Proceeds
NMF will allocate all procured proceeds from green Enance for the following funds.
The funds for acquisition of eligible green projects(*)
The funds for reEnancing of borrowings used to acquire eligible green projects
The funds for redemption of outstanding investment corporation bonds issued to acquire eligible green projects.
※Eligible green projects are existing or new speci3ed assets that ful3ll the criteria indicated in (2) Eligible Criteria below.

107

（2）Eligible Criteria
Eligible Criteria must acquire any of the valid certiEcations or be recertiEed in a. through c. below within 36 months after the date ofreceiving proceeds from green Enance, or must be scheduled to acquire such (re)certiEcation in the future.
a.3, 4, or 5 Stars under DBJ Green Building CertiEcationb.3, 4, or 5 Stars under BELS CertiEcation
c.B+, A or S rank under CASBEE CertiEcation for Real Estate.
※Please refer to NMFIs acquisition status of raising the Proportion of KGreenM Properties in Our Portfolio.

（3）Project Evaluation and Selection Process
Eligible criteria are established by the Sustainability Promotion Committee (committee chaired by the Head of the NMF Investment
Management Group) of Nomura Real Estate Asset Management Co., Ltd., the asset management company of NMF, and determinedby the Investment Committee.
Eligible green projects in which proceeds from green Enance will be invested are evaluated and chosen by the NMF Investment
Management Group and Finance & Accounting Department based on eligible criteria, and the selection is made upon approval by
the Investment Committee or the Head of the NMF Investment Management Group based on decision-making authority rules of theasset manager.

（4）Management of Proceeds
NMF shall set the debt amount calculated by multiplying the total book value of eligible green projects owned by NMF by total assets
LTV (Loan-to-Value Ratio) as of the most recent Escal period end calculable as of the date of obtaining proceeds (the YEligible Green
Debt AmountY) as the upper limit of the balance of green Enance. NMF manages to ensure that the balance of green Enance will not
exceed the Eligible Green Debt Amount. Furthermore, as long as the balance of green Enance exists, NMF will internally track andmanage the allocated funds on a portfolio basis.

Total book value of eligible
green projects

480.7billion yen

LTV ratio

43.9%

Total eligible green debt
amount211.1billion yen(Note) The total book value of eligible green project and LTV ratio are as of the end of February 2024.

108

（5）Reportinga.. eporting on Allocation of Proceeds
NMF[s allocation of proceeds as to green Enance is as follows.

Total amount of outstanding
green bonds

10,000 million yen

Amount of proceeds not yet
allocated-

Total amount of outstanding
green loan

4,000 million yen

Amount of proceeds not yet
allocated-

Green Bond

Name

AmountissuedInterest rate
(Millions ofyen)Issuance date

Redemption date

Term

Nomura Real Estate Master Fund, Inc.
Unsecured Bonds No.4
（Green Bonds）

3,000

0.53%

September 20, 2019

September 20, 2029

10 Years

Nomura Real Estate Master Fund, Inc.
Unsecured Bonds No.6
（Green Bonds）

7,000

0.54%

August 14, 2020

August 14, 2030

10 Years

Drawdown Date

Terms of Repayment

Term

Green Loan

LenderAmount(Millions of Interest rateyen)

SUMITOMO LIFE INSURANCECOMPANY

2,500

0.78474%

August 26, 2022

February 26, 2031

8 Years
and 6
MonthsNippon Life Insurance Company

1,000

1.28875%

August 28, 2023

August 26, 2032

9 Years

Nippon Life Insurance Company

500

1.42188%

August 28, 2023

August 26, 2033

10 Years109

b.Impact Reporting
NMF shall disclose the following indices as of the end of every February as long as the balance of green Enance remains.
Number of Eligible Green Projects
Level of each green certiEcation acquired
Greenhouse gas (GHG) emissions, energy consumption and water consumption at Eligible Green Projects(*)※The range of Eligible Green Projects and actual 3gures are disclosed as of the time of report submission.
Until the 2022 results, this covered the portion over which the NMF possesses control authority, after 2023 results, the scope has also been expanded to include areas overwhich the NMF possesses no control authority about Greenhouse gas (GHG) emissions, energy consumption due to changes in materiality in the environment of the NMF.
Regarding water consumption, we will cover the portion over which the NMF possesses control authority even after 2023 results.

Unit

2021

2022

2023

properties

59

70

65

GHG Emissions

t-CO2

25,84829,674

43,123

GHG Emissions Intensity

t-CO2/㎡

0.0396

0.04390.0363

Energy ConsumptionKl

15,012

15,90425,236

Energy Consumption Intensity

Kl/㎡

0.023

0.02350.0212

Water Use㎥

226,879

305,654322,260

Water Use Intensity㎥/㎡

0.34750.45250.5261

Properties※For level of each green certi3cation acquired please see here.

Evaluation by External Organization
NMF has acquired :Green 1(F);, the highest rating in JCR Green Finance Framework Evaluation by Japan Credit Rating Agency, Ltd.
(JCR) for its eligibility of green Enance framework.

JCR Green Finance Evaluation：https://www.jcr.co.jp/en/greenEnance/green/110