Financial Results of 7th Fiscal Period(Ended April 30, 2007)

Contents

1. Overview of Fund Management

4. Fund Management Results• Highlights of the 7th Fiscal Period• Changes in Performance• Results of Investment Sector• Portfolio Status• Diversification of Tenants• Results of Asset Management Sector• Increase in Rent of Portfolio• Enhancing Competitiveness of
Property by Renovation• End-of-Period Appraisal Value• Move-ins and Move-Outs• Results of Financial Sector• End-of-Period Financial Status (1)• End-of-Period Financial Status (2)23

2. Future Management Policies• Analysis of the Market• Future Growth Strategies

56

3. Details of the Financial Results• Income Statement• Balance Sheet• Cash Distribution• Interest-Bearing Debts• Unitholders• 8th Fiscal Period (October 2007)
Forecast

8
9
10
11
12

Appendix
15
16
17
18
19
20
21
22
23
24
25

• List of Property

27• Earnings by Property

28• List of End-of-Period Appraisal Value 29• Map of Property

30• Acquisition Channel of Property

31• Fund Summary

32• Cash Flow Statement33• Unit Price and Market Capitalization(Dec. 4, 2003 – June 15, 2007)34• Organization of the AssetManagement Company

35

13

April 2007

1. Overview of Fund Management

Highlights of the 7th Fiscal Period
Performance of the Current Period (181 business days)
Current Period(April 2007)

Comparison
with Previous Period

Operating Revenues¥ 11,090 mln+ ¥ 351 mln+ 3.3％¥ 10,914 mln+ ¥ 176 mln+ 1.6％

Operating Income¥ 5,137 mln- ¥ 45 mln- 0.9％¥ 4,941 mln+ ¥ 196 mln+ 4.0％Net Income¥ 4,466 mln+ ¥ 236 mln+ 5.6％¥ 4,327 mln+ ¥ 138 mln+ 3.2％¥16,750 / unit

+ ¥ 845 / unit

+ 5.3％¥ 16,275 / unit

+ ¥ 475 / unit

+ 2.9％Cash Distribution
per Unit

Forecasts
as of February 22, 2007

Comparison
with Actual Results

Notable Activities (November 1, 2006 – April 30, 2007)
Investment Sector
Utilization of Nomura Real
Estate Group’s Pipelinez Acquisition of Omron Kyoto
Center Bldg (¥23.7 bln)

Asset Management Sector
Improved Rental Levelz Steady increase in rents for both
new and renewed tenantsz Implementation of various
refurbishment works

End-of-Period Total Portfolio:¥282.8282.8 bln

Others

Improved Financial Stabilityz Improved credit ratingsz Issuance of Investment Corporation
Bonds (total of ¥14.5 bln)

Average Unit Rent for Portfolio:

・Duration+1.6% (30 properties held at

・Fixed Interest

the end of 6th period)

1. Overview of Fund Management

Financial Sector

6.0 years(Average of Total LongLong-term Debt)

94.2%

Established Superficies for NOF
Sendai Aoba-dori Bldg
z Executed superficies contract with
Sendai City, which plans to build a
subway in the underground portion of
the site.
z Receipt of compensation from Sendai
City contributed to temporary increasein earnings

2Changes in Performance(¥ mln)14,000(¥ mln)＜Operating Revenues＞

12,00010,739

11,09011,749
5,000

6,656

Oct.
2006

Apr.
2007

5,426

4,000

7,106

2,930
3,000

4,531

3,228

2,313

2,000

4,000
2,000

5,137

4,111

8,641

8,000

5,182
4,558

9,810

10,0006,000＜Operating Income＞

6,000

1,000
Apr.
2004

Oct.
2004

(¥ mln)

Apr.
2005

Oct.
2005

Apr.
2006

Oct.
2006

(¥)

＜Net Income ＞

5,000

Apr.
2004

Apr. Oct.
2007 2007(Forecast)

4,229

4,426

Oct.
2004

Apr.
2005

3,484

Apr.
2006

Oct.
2007
(Forecast)＜Cash Distribution per Unit＞

18,00016,7504,201
16,000

4,000

Oct.
2005

3,596

14,114

14,52015,15015,63815,90515,80014,0003,000

2,606 2,681
12,0002,000

10,273
1,526

10,000
8,000

1,000
Apr.
2004

Oct.
2004

1. Overview of Fund Management

Apr.
2005

Oct.
2005

Apr.
2006

Oct.
2006

Apr.
2007

Oct.
2007
(Forecast)

Apr.
2004

Oct.
2004

Apr.
2005

Oct.
2005

Apr.
2006

Oct.
2006

Apr.
2007

Oct.
2007
(Forecast)3

2. Future Management Policies

Analysis of the Market

Real Estate Investment Market
Current

Future• Aggressive forecast of rental increase continues to be
priced in (decrease in cap rate at the time of acquisition)• Originators have continued to hold• Hikes in long-term interest rates will result in gradual bottoming-out of cap rates• Increase in sales to realize capital gains (moves to sell property at time of
implementation of Financial Products Exchange Act or Refinancing)Continue to focus on movements of interest rate and property
owners. At the same time, enhance financing capacities toprepare for change in market conditions

Office Leasing Market
FutureCurrent• Market rent (asked rent) continues to increase, centering
on large Tokyo metropolitan area properties• Increase in rental levels in regional cities are limited to
few areas (Osaka, Nagoya)• In Tokyo metropolitan area, rent increase will spread to medium-sized properties
and surrounding areas• In regional cities, rents in cities other than Osaka and Nagoya will start to increase
For the time being, emphasis on increasing renewed rents
centering on Tokyo metropolitan area.

J-REIT Market
FutureCurrent• Market lead by foreign investors• Investment in asset management companies
and large volume holding by foreign capital

2. Future Management Policies• Incorporation of J-REITs to global real estate markets
Offering strategies and IR activities targeting overseas
investors become increasingly important5

Future Growth Strategies
External Growth: “Utilization of 2% Capital Cost”
Cost”• Continue investment in carefully selected premium properties• Actively acquire development and large-size properties• Continue “the Premium Capital Increase” along with expansion of asset size

• Stabilize profit through portfolio
expansion• Improve BPS

Aim for“Further Stabilization of Fund Profits”
And“Steady Growth of EPS”

• Improve portfolio NOI• Control interest rate expenses• Smooth repair expenses• Maintain / secure financing capacities

Internal Growth: “2% increase in Rental Level”
Level”

Financial Strategy: “Preparing for 2% interest rates”• Increase in average unit rent (2-3% p.a.)• Early implementation of large-scale repair works• Consider fixing rent for large tenants• Maintain stable financial position in preparation for interest rate hikes

2. Future Management Policies• Control interest rate expenses and secure property acquisition
capacities through appropriate LTV controls63. Details of the Financial Results

Rental Business Revenues

Operating Profits

Rental business revenues
Rental revenues
Common area charges
Other rental business revenues
Monthly parking revenues
Incidental income
Other rental revenues
Miscellaneous revenues
Total Rental Business Revenues

Rental Business Expenses

Current Profits

Income Statement

Property management costs
Taxes and duties
Utility expenses
Insurance expenses
Repairs and maintenances
Other expenses
Depreciation
Total Rental Business Expenses

Rental Profits
Asset management fees
Selling and administrative expenses

Non-operating Profits

Operating Profits
Non-operating revenues
Compensation for superficies establishment
Other non-operating revenues

Non-operating expenses
Interest expenses
Interest expenses on bonds
Amortization of bond issuance costs
Loan arrangement fees
Investment unit issuance costs
Other non-operating expenses
Non-operating Profits
Current Profits
Income before income taxes
Corporate, local and enterprise taxes
Tax adjustment
Net Income
Retained earnings brought forward
Retained earnings at end of period

6th Fiscal Period

7th Fiscal Period

May 1, 2006 - Oct 31, 2006

Nov 1, 2006 - Apr 30, 2007(¥000)(%)(¥000)(%)

9,531,459
7,620,705
1,910,754
1,208,377
222,897
913,792
70,522
1,165
10,739,836
1,065,237
827,338
882,91223,439198,792
150,382
1,471,825
4,619,929
6,119,907
781,981
154,975
5,182,950
13,813－
13,813
966,442
510,507
270,423
38,42968,116
63,58815,378▲ 952,628
4,230,321
4,230,321
1,057▲6
4,229,270
23
4,229,293

88.7
71.0
17.8
11.3
2.1
8.5
0.7
0.0
100.0
9.9
7.7
8.2
0.2
1.9
1.4
13.7
43.0
57.0
7.3
1.4
48.3
0.1
－
0.1
9.0
4.8
2.5
0.4
0.6
0.6
0.1
▲ 8.9
39.4
39.4
0.0
0.0
39.4
0.0
39.4

9,981,093
8,038,230
1,942,862
1,109,894
238,824
798,947
70,899
1,222
11,090,987
1,135,710
857,744784,754
22,713350,087
176,271
1,478,414
4,805,696
6,285,290
976,483
171,125
5,137,681
404,195
295,747
108,447
1,075,054
563,127
306,543
40,641
87,973－76,768▲ 670,858
4,466,823
4,466,823
605
22
4,466,195
106
4,466,301

90.0
72.5
17.5
10.0
2.2
7.2
0.6
0.0
100.0
10.2
7.7
7.1
0.2
3.2
1.6
13.3
43.3
56.7
8.8
1.5
46.3
3.6
2.7
1.0
9.7
5.1
2.8
0.4
0.8
－
0.7
▲ 6.0
40.3
40.3
0.0
0.0
40.3
0.0
40.3

3.Details of the Financial Results

Rental Business Revenues
The total number of properties in the portfolio at the 7th period has
become 31 as a result of new acquisition of 1 property:
Omron Kyoto Center Building.
Occupancy rate for the 7th period (April 2007) was 98.5%, up 0.3%
from 98.2% for the 6th period (October 2006).

Taxes and Duties
Property taxes, urban planning taxes and other duties for the 7th
period were charged on the 29 properties out of the total 31 properties
held at the end of the 7th period.

Repairs and Maintenances
In addition to cost of repair of ¥350 mln, there was capital expenditureof ¥757 mln, of which ¥131 mln was an initial reserve.

Rental Profits: ¥6,825 mln(+ ¥165 mln from the previous period)
Additional revenues from the newly acquired 1 property: + ¥46 mln
Increase in revenues from the existing 30 properties: + ¥119 mln

Incidental Revenues:

Revenues received as utility charges, charges forusage of facility and signboard, etc.
Other Rental Revenues:
Hourly parking charges, etc.
Miscellaneous Revenues: Ground rents, etc.
Other Expenses:
Trust fees, commissions, other maintenance fees, etc.
Operating Expenses:
Administrative service, custodian, and auditing fees, etc.
Non-operating Expenses: Cost of restitution in integrum, etc

8Balance Sheet

AssetsAssetsCurrent Assets
Cash and cash equivalents
Cash and cash equivalents in trust
Other current assets
Fixed Assets
Tangible assets
Propeties
Buildings
Lands
Properties in trust
Buildings
Lands
Other tangible assets
Other tangible assets
Intangible assets
Trust and other intangible assets
Investments and other assets
Security deposits
Investments and other assets
Deferred Assets
Issuing cost of corporation bonds

Total Assets

6th Fiscal Period

7th Fiscal Period

as of Oct 31, 2006(¥000)(%)
28,237,092
9.8%
11,190,780
3.9%
16,678,494
5.8%
367,818
0.1%
259,699,550
90.2%
259,449,826
90.1%
15,253,597
5.3%
4,252,633
1.5%
11,000,964
3.8%
244,190,524
84.8%
70,325,629
24.4%
173,864,895
60.4%
5,704
0.0%
5,704
0.0%
2,031
0.0%
2,031
0.0%
247,692
0.1%
211,230
0.1%
36,4620.0%
124,0070.0%
124,0070.0%

as of Apr 30, 2007(¥000)(%)
32,816,788
10.4%
12,046,410
3.8%
20,004,404
6.3%
765,973
0.2%
282,376,844
89.5%
282,130,219
89.5%
15,209,137
4.8%
4,201,142
1.3%
11,007,994
3.5%
266,903,384
84.6%
79,250,169
25.1%
187,653,215
59.5%
17,6970.0%
17,697
0.0%
1,929
0.0%
1,929
0.0%
244,695
0.1%
211,230
0.1%
33,4650.0%
208,9250.1%
208,9250.1%

288,060,650

315,402,557

100.0%Net Assets

Liabilities

Long-term debt to be repaid within 1 year

Other accounts payable
Rent received in advance
Other current liabilities
Fixed Liabilities
Corporation bonds
Long-term debt
Security deposits
Security deposits in trust
Other fixed liabilities

Deposits in own name
Equivalent to security deposits received
Equivalent to reserved capital expenditure
Others(¥ mln)12,046
1,913
3,554
6,578

Deposits in trust
Equivalent to security deposits received
Equivalent to reserved capital expenditures
Others

20,004
12,790190
7,023

Tangible Assets
Acquisition Accumulated
pricedepreciation

100.0%

Liabilities and Net Assets

Current Liabilities
Trade accounts payable
Short-term debt

Cash and Cash Equivalents

6th Fiscal Period

7th Fiscal Period

as of Oct 31, 2006(¥000)(%)
23,181,723
8.0%
553,3990.2%
2,000,000
0.7%
17,500,000
6.1%
1,252,622
0.4%
1,759,142
0.6%
116,559
0.0%
103,874,728
36.1%
30,000,000
10.4%
56,500,000
19.6%
660,3270.2%
16,705,318
5.8%
9,082
0.0%

as of Apr 30, 2007(¥000)(%)
26,768,779
8.5%
644,5030.2%
1,500,000
0.5%
21,000,000
6.7%
1,586,180
0.5%
1,880,883
0.6%
157,2120.0%
127,412,588
40.4%
44,500,000
14.1%
63,000,000
20.0%
662,645
0.2%
19,195,895
6.1%
54,0480.0%

Total Liabilities

127,056,452

44.1%

154,181,368

48.9%

Unitholders' Equity
Unitholders' capital
Retained earnings
Variance from valuation and translation
Deferred hedge gains

160,996,487
156,767,193
4,229,293
7,710
7,710

55.9%
54.4%
1.5%
0.0%
0.0%

161,233,495
156,767,193
4,466,301▲ 12,305▲ 12,305

51.1%
49.7%
1.4%
▲ 0.0%▲ 0.0%

Total Net Assets
Total Liabilities and Net Assets

161,004,197
288,060,650

55.9%
100.0%

161,221,189
315,402,557

51.1%
100.0%

3.Details of the Financial Results(¥ mln)Depreciation for End-of-termcurrent term
book value

Properties

290,3298,217(1,478)282,112

Buildings in trust

87,352

8,101(1,411)

79,250Lands in trust

187,653--

187,653

Buildings

4,316

115

(67)

4,201

Lands

11,007--

11,007

Debts
Balance of interest-bearing debts

Interest-bearing debts ratio¥130,000 mln

S/T debts + L/T debts + Corp bonds
Total assets
41.2%

Long-term interest-bearing debt ratio

L/T debts + Corp bonds
Total debts

82.7%

9

Cash Distribution

Cash Distribution
6th Fiscal Period

7th Fiscal Period

from May 1, 2006
to Oct 31, 2006

from November 1, 2006
to April 30, 2007

Retained Earnings(\000)

4,229,293

4,466,301

Cash Distribution(\000)

4,229,187

4,453,875

15,905

16,750106

12,426

Cash Distribution per Unit(\)

Balance Carried Forward(\000)z Cash Distribution
Cash distribution for the 7th period was decided to be within the maximum
earnings amount prescribed in Article 136 of the Law Concerning
Investment Trust and Investment Corporations (amount calculated bysubtracting the total unitholders’ capital, etc., from net assets on thebalance sheet ), or ¥ 4,453,995,000, out of the retained earnings amount of¥4,466,301,000.
With pay-out to total outstanding number of units as of the period-end of
265,903, cash distribution per unit was ¥16,750.

Comparison with Forecasts
Forecasts

Actual Results

announced on
Feb 22, 2007

for the 7th
Fiscal Period

Difference Difference(amount)(%)

Operating Revenues(\mln )

10,914

11,090176

1.6

Current Profits(\mln )

4,328

4,466

138

3.2

Net Income(\mln )

4,327

4,466

138

3.2

(\)

16,275

16,750475

2.9Cash Distribution per Unit

3.Details of the Financial Resultsz Difference between Forecasts and Actual ResultszOperating Revenues
Incremental revenues brought by acquisition of Omron Kyoto Center
Bldg and the other 30 bldgs: ¥176 mlnzCurrent Profits
Difference in non-operating profits from increase in interest payments,
etc.: - ¥58 mln

10Interest-Bearing Debts
As of April 30, 2007
AmountLenderShort-term debt(including long-term
debt
due for repayment
within one year)
Total short-term debt

Type of Interest

Interest Rate (p.a.)

Repayment Date

Floating

1.10727% (From Mar 19, 2007 to Aug 26, 2007)

Aug. 27, 2007

5 finan insti¥1,500 mln

1 finan insti¥2,000 mln

Floating

1.24636% (From Feb 28, 2007 to Aug 28, 2007)

Aug. 28, 2007

6 finan insti¥8,500 mln

Fixed (Note 3)

1.00625% (Weighted average after interest rate swap)

Dec. 8, 2007

5 finan insti¥7,500 mln

Fixed (Note 2)

1.22500% (Weighted average after interest rate swap)

Feb. 26, 2008

1 finan insti¥3,000 mln

Fixed

1.05250%

Feb. 26, 2008

12 finan insti¥22,500 mln

-

-

-

4 finan insti¥4,000 mln

Floating

1.08818% (From Feb 26, 2007 to Aug 27, 2007)

Aug. 26, 2008
Dec. 8, 2008

5 finan insti¥8,000 mln

Fixed (Note 1)

1.66750% (Weighted average after interest rate swap)

4 finan insti¥5,000 mln

Fixed

1.51625%

Dec. 8, 2008

2 finan insti¥2,000 mln

Fixed (Note 4)

1.19000% (Weighted average after interest rate swap)

Feb. 26, 2009

1 finan insti¥3,000 mln

Fixed (Note 2)

1.77500% (Weighted average after interest rate swap)

Feb. 26, 2010
Feb. 26, 2010

Remarks

Unsecured /Unguaranteed-

1 finan insti¥1,000 mln

Fixed

1.50625%

3 finan insti¥2,500 mln

Fixed

1.48375%

Feb. 26, 2010

2 finan insti¥2,000 mln

Fixed

1.65500%

Aug. 26, 2010

5 finan insti¥7,500 mln

Fixed (Note 4)

1.68000% (Weighted average after interest rate swap)

Feb. 26, 2011

3 finan insti¥4,000 mln

Fixed (Note 6)

1.63825% (Weighted average after interest rate swap)

Aug. 26, 2011

7 finan insti¥11,000 mln

Fixed (Note 5)

1.89764% (Weighted average after interest rate swap)

Feb. 26, 2012

5 finan insti¥5,000 mln

Fixed

1.43750%

Aug. 26, 2012

1 finan insti¥1,000 mln

Fixed

1.53625%

Aug. 26, 2012

1 finan insti¥1,000 mln

Fixed

1.75250%

Feb. 26, 2013

1 finan insti¥2,000 mln

Fixed

1.99250%

Feb. 26, 2013

3 finan insti¥4,000 mln

Fixed

1.98000%

Mar. 19, 2014

Total long-term debt

27 finan insti¥63,000 mln

-

-

-

-

Total debt

28 finan insti¥85,500 mln

-

-

-

-

1st series corp bondPrivate placement¥5,000 mln

Fixed

1.85%

Mar. 16, 2015

2nd series corp bond Private placement¥5,000 mln

Fixed

2.47%

Mar. 16, 2020

3rd series corp bondPublic offering¥10,000 mln

Fixed

1.19%

Nov. 29, 2010

4th series corp bondPublic offering¥10,000 mln

Fixed

2.05%

Nov. 30, 2015

5th series corp bondPublic offering¥5,000 mln

Fixed

1.61%

Mar. 19, 2012

6th series corp bondPublic offering¥5,000 mln

Fixed

2.21%

Mar. 17, 2017

7th series corp bondPublic offering¥4,500 mln

Fixed

2.90%

Mar. 17, 2028

Total corporation bond-

¥44,500 mln

-

-

-

-

Grand total

28 finan insti¥130,000 mln

-

-

-

-

Long-term debt

(Note 1) Fixed by interest rate swap from Dec 8, 2003
(Note 2) Fixed by interest rate swap from May 27, 2004

(Note 3) Fixed by interest rate swap from Dec 8, 2004
(Note 4) Fixed by interest rate swap from Feb 27, 2006

3.Details of the Financial Results

Unsecured /Unguaranteed

Unsecured /Unguaranteed(Note 5) Fixed by interest rate swap from Dec 8, 2006
(Note 6) Fixed by interest rate swap from Mar 19, 200711

Unitholders

Breakdown of Financial Institutions

Number of Unitholders(Units)Individuals
14,573 （95.8％）

6th Period(Oct. 2006)

Financial Institutions
Other Domestic Corporations
Foreign Corporations

191 （1.3％）
242 （1.6％）
199 （1.3％）

15,205Unitholders
Individuals
11,887 （95.1％）

7th Period(Apr. 2007)

Financial Institutions
Other Domestic Corporations
Foreign Corporations

167 （1.3％）
191 （1.5％）
255 （2.0％）

6th Period

7th PeriodBanks58,53022.0%

43,868

16.5%

Trust Banks

71,00526.7%

71,192

26.8%

Life companies

9,185

3.5%

7,413

2.8%

Non-Life Companies

5,458

2.1%

3,600

1.4%

Other Financial Instituions

19,426

7.3%

16,612

6.2%

163,604

61.5%

142,685

53.7%

Units

Ratio

1 Japan Trustee Services Bank, Ltd.

17,140

6.45%

2 NikkoCiti Trust and Banking Corporation

16,6596.27%

3 The Master Trust Bank of Japan, Ltd.

16,3946.17%

4 Nomura Real Estate Development Co., Ltd.

13,326

5.01%

5 Trust & Custody Services Bank, Ltd.

11,642

4.38%

6 The Nomura Trust and Banking Co., Ltd.

7,086

2.66%

7 Kawasaki Gakuen

7,000

2.63%

8 The Bank of New York, Treaty JASDEC Account

6,602

2.48%

9 The Bank of IKEDA, Ltd.

4,691

1.76%

10 National Mutual Insurance Federation of Agricultural Cooperatives

4,393

1.65%

12,500Unitholders

Top 10 Unitholders
0%

25%

50%

75%

100%

Unitholders

Number of Investment Units

6th Period
Individuals(Oct. 2006) 36,878 units（13.9％）
265,903
Units

7th Period(Apr. 2007)
265,903
Units

Financial Institutions
163,604 units（61.5％）

Individuals
29,915 units（11.3％）

Financial Institutions
142,685 units（53.7％）

Foreign
Other Domestic
Corporations Corporations
27,032 units 38,389 units（14.4％）（10.2％）

Other Domestic
Corporations
26,032 units（9.8％）

Foreign
Corporations
67,271units（25.3％）

Total
0%

25%

50%

75%

104,933 39.46%

100%(The ratio of Top 10 Unitholders for the 6th Period: 40.66%)
3.Details of the Financial Results

128th Fiscal Period (October 2007) Forecast

7th Period

8th Period
Forecasts

Rental business revenues
Other rental business revenues
Total rental business revenues
Property management costs
Taxes and duties
Utility expenses
Insurance expenses
Repairs and maintenances
Other expenses
Depreciation
Total rental business expenses
Profits from rental business
Asset Management fees
Operating expenses
Operating Profits
Non-operating revenues
Non-operating expenses
Non-operating Profits
Current Profits
Income beofore income taxes
Corporate, local and enterprise taxes
Tax adjustment
Net Income
Retained earnings brought forward
Retained earnings at end of period(¥mln)
9,981
1,109
11,090
1,135
857
784
22
350
176
1,478
4,805
6,285
976
171
5,137
404
1,075
▲670
4,466
4,466
0
0
4,466
0
4,466

(¥mln)
10,578
1,171
11,749
1,283
934
886
23
494
181
1,476
5,280
6,469
854
188
5,426
22
1,246
▲1,224
4,202
4,202
1
0
4,201
12
4,213

Outstanding units at period-end (unit)

265,903

Cash distribution per unit (¥)

16,750Difference(¥mln)(%)

Rental Business Revenues

597
61
658
147
76
101
0
144
5
▲1
474
183
▲122
17
288
▲381
171
▲553
▲264
▲264
0
0
▲265
－
－

6.0
5.5
5.9
13.0
8.9
13.0
2.7
41.3
2.9
▲0.1
9.9
2.9
▲12.5
10.0
5.6
▲94.5
16.0
82.5
▲5.9
▲5.9
65.3
－
▲5.9
－
－

Other Rental Business Revenues:
Revenues received as monthly parking charges,
utility charges, charges for usage of facility, etc.
Other Expenses: Trust fees, commissions, other maintenance fees,
etc.
Operating Expenses:
Administrative service, custodian, and auditing
fees, etc.
Non-operating Expenses:

265,9030

0.0Interests on debts, cost of issuance of investment
corporation bonds, etc.

15,800

▲950

▲ 5.7

3.Details of the Financial Results

Forecasts were made for the 8th period on the basis that the
number of properties under management would remain to be
31 without any new acquisition or sale.

Taxes and Duties
Property taxes, urban planning taxes and other duties for the
8th period were estimated on the basis that 31 properties,
which were held at the end of the 7th period, would betaxable for that period.

13

4. Fund Management Results

Results of Investment Sector

Investment Environments

Changes in Total Portfolio (by Acquisition Price)(¥ bln)350

Capital in-flow to market

Shinjuku Nomura Bldg

Supply of properties to market

282.8

300

240.8

250

259.1

• Capital demand: continue to• Property information:

be strong

210.1

decreasing trend

184.6

200

151.5

100

104.2

127.2

100

• Investor groups: expand• Property owners: tend to hold• Competitors in property• Development: increasing trendacquisition: increase

50
0

37.2%

30.4%

Dec 2003 Apr 2004
at Listing 1st Period

25.6%

21.0%

18.4%

16.1%

14.9%

13.7%

Oct 2004 Apr 2005 Oct 2005 Apr 2006 Oct 2006 Apr 2007
2nd Period 3rd Period 4th Period 5th Period 6th Period 7th PeriodMarket continues to be tight as a result of gaps remaining between the two

Steady growth of portfolio sizez

Result of collaboration with Nomura Real Estate Groupz

Carefully selected investment in prime properties that
contribute to improvement in portfolio stability and growth<Number of information about acquirable properties> *Office use only
6th Fiscal Period

142

7th Fiscal Period

125

Diversification of portfolioz

Weight of Shinjuku Nomura Bldg decreased to 13.7%zIncrease in investment risk taking capacities for development
and large-size properties• Cleared standard for consideration: 87• Considered in detail: 24• Currently under consideration: 12

4.Fund Management Results

15

Portfolio Status

Acquired in the 7th Period: Omron Kyoto Center Bldg

Diversification of Portfolio (7th Period-End)z Diversification by Location

Other Regional Cities※Based on Acquisition PriceCentral Tokyo
61.1%

25.0%

Greater Tokyo
13.8%

z Diversification by Property (Main Top 10 Properties)
Location
Floor
Type ofOwnership
Acquisition
Price
Date of
Acquisition
Seller

Shimogyo-ku, Kyoto City
34,616.84m

2（10,471.59 tsubo）(Land) Ownership(Bldg) Ownership¥ 23,700 mln

March 20, 2007

Nomura Real Estate
Development Co., Ltd.

【Features】
・ 5 minutes’ walk from Kyoto Station
・ Completed in July 2000
(Building age: 7 years)
・ Long-term leasing contract with
Omron Corporation(until March 2021)【Policy】
・Long-term leasing contract withexcellent tenant
Improved stability of portfolio revenues

Shinjuku Nomura Bldg

NOF Kawasaki
Higashiguchi Bldg
3.4%
NOF Shiba Bldg

13.7%
Other 21
Buildings
34.0%

3.5%
Secom Medical Bldg
4.1%
NOF Shibuya
Koen-dori Bldg
4.2%
NOF Midosuji Bldg
4.6%

4.Fund Management Results

JAL Bldg
11.7%
Omron Kyoto
Center Bldg
NOF Nihonbashi
Honcho Bldg
Tennozu Park
Side Bldg

8.4%

7.3%

5.2%

16

Diversification of Tenants

Top 10 Tenants (by Space)

Diversification in Business (by Space)
As ofApril 30,
2007inWeightLeasedIndustry

Property

Expiry ofcontract

Flagship Properties
Private Company

Real Estate

JAL Bldg.

Mar. 31, 2015

2

OMRON Corporation

Electronic
Devices

3

XYMAX AXISCORPORATION

Tenant1

4

FUJITSU LIMITED

Omron Kyoto
Mar. 29, 2021
Center Bldg.
NOF Toyo-cho
Real EstateNov. 30, 2009Bldg.
NOF Technoport
Mar. 31, 2009
Kamata Center Bldg.
Electronic
Faret Tachikawa
Dec. 31, 2007
Devices
Center Square
NOF Shin-Yokohama
Sep. 30, 2008
Bldg.

6

7

8

9

SECOM Co., Ltd.

Nomura Real Estate
Development Co., Ltd.

Nomura Facilities Co., Ltd.

FUJI XEROXOFFICE SUPPLY
Shinsei Bank, Limited.

FUJITSU COMMUNICATION10SERVICES LIMITED
Total

ServicesRealEstateReal
EstateWholesale

Bank

IT

portfolio(%)

Weightforprevious
term (%)

42,084.11

12.2

13.6

34,616.84

10.0－

18,218.17

5.3

5.9

3,813.62

1.1

1.2

255.150.1

0.1

6,547.74

1.9

2.1

8,821.24

2.6

2.8

Dec. 31, 2008755.690.2

0.2

Nov. 30, 2013

4,916.89

1.4

1.2

Nomura Osaka Bldg. Nov. 30, 2013345.370.1

0.1

Nov. 30, 2013

1,266.19

0.4

0.4

May 31, 2008

574.11

0.2

0.4

Dec. 31, 2007

1,140.85

0.3

0.4

Nov. 30, 2007

1,847.63

0.5

0.6

Mar. 31, 2009

2,834.48

0.8

0.9

Apr. 30, 2007

4,160.94

1.2

1.3

NOF Midosuji Bldg. Jan. 31, 2010

2,774.75

0.8

0.9

647.010.2

0.2

3,283.17

1.0

1.2

138,903.95

40.2

Secom Medical Bldg. Feb. 28, 2025
5

space
（㎡）

NOF Sendai
Aoba-dori Bldg.
Shinjuku
Nomura Bldg.

NomuraYotsubashi Bldg.
Shinjuku
Nomura Bldg.
NOF Utsunomiya
Bldg.
NomuraYotsubashi Bldg.
NomuraHiroshima Bldg.
NOF Surugadai
Plaza Bldg.

Hiroshima Tatemachi
Jan. 31, 2010
NOF Bldg.
Tennozu Park
Feb. 28, 2009
Side Bldg.

As of April 30, 2007

Other 21
Businesses
Construction 16.2%

Electronics
16.2%

2.2%
Banking
2.7%
Insurance
3.9%

Total

Real Estate
4.5%

Tenants

IT
15.3%

517

Retail
4.6%Service
14.4%

Wholesale
7.2%
Airline
12.8%(Note) Broken-down by business of the sub-lessees in case of sub-lets.

Stable (Mid-to-Long Term) Contracts
Mid-to-long term contracts expiring after three years from now:
7th Period End

33.3％ (based on floor space)
24.3％ (based on contract rent)

4.Fund Management Results

17

Results of Asset Management Sector

Changes in Average Unit Rent*1

Changes in NOI Return of Portfolioz Ratio of change between 6th and 7th periods[Changes in NOI Return of Portfolio (%)]

NOI of Portfolio

Apr
2004

Oct
2004

Apr
2005

Oct
2005

Apr
2006

Oct
2006

Apr
2007

7.2

6.2

6.1

6.1

5.9

6.0

5.7

[Breakdown by the number of properties held at each Period-end (%)]
15 for 1st Period
18 for 2nd Period

7.2

Average for
entire portfolio

Average for Tokyo
metropolitan properties(30 properties at
the 6th periodperiod-end)(excluding bldgs
with longlong-term fixed contracts*2)

+1.6%

+2.9%

6.5

6.7

6.6

6.6

7.1

6.9

6.2

6.3

6.4

6.3

6.8

6.7

6.1

6.2

6.1

6.4

6.3

6.1

6.0

6.2

6.1

5.9

6.1

6.0

104

6.0

5.9

103

1st Period: 15 bldgs

2nd Period: 18 bldgs

5.7

102

3rd Period: 19 bldgs

4th Period: 23 bldgs

5th Period: 28 bldgs

6th Period: 30 bldgs*1 Average Unit Rent: Average of monthly rent and common area charges prescribed inlease contracts as of period-end.
*2 JAL Building and Secom Medical Building.

19 for 3rd Period
23 for 4th Period
28 for 5th Period
30 for 6th Period
31 for 7th Periodz Changes in average unit rent
(Average initial rent for portfolio at period-end = 100)

101z Main factors for change in NOI between 6th and 7th periods(based on 28 properties held at the beginning of 6th period)•

Increase of rent/common service fees: + ¥107 mln (+1.2% from previous
period) (rent increase from tenant turnover / lease renewals)•

Increase in outsourcing expenses: - ¥48 mln (+4.6% from previous period)(mainly increased renewal incentive fees)•

Increase in repair costs: - ¥142 mln (+73.4% from previous period)(due to the low level resulted in the previous period)

100
99
98
97
96
1st
Period2nd
Period3rd
Period4.Fund Management Results

4thPeriod5th
Period6th
Period7th
Period18

Increase in Rent of Portfolio

Stable Occupancy Rate
6th Period (Results)

Rent before and after Upward Revision

7th Period (Results)

8th Period (Forecasts)

100.0%* Change = ((Rent of renewed contracts / rent of previous contracts) – 1) x 100(Including common area charges)

12.0%
98.3%

98.5%

98.2%

10.0%

Average Change ＋9.6％+10.0%

8.0%

95.0%

6th Period
Average Change

+8.6%

97.5%

+ 6.9％

+7.2%

6.0%
4.0%
90.0%

Central Tokyo
Greater Tokyo
Other Regional Cities
Average

85.0%

0.0%

Central Tokyo

Apr. 2007
End of
7th Period

Oct. 2006
End of
6th Period

Apr. 2006
Beginning of
6th Period

2.0%

Oct. 2007
End of
8th Period

Results of Contract Renewals (number of renewals)
100%

4.0%

6.5%

1.9%
14.6%

21.0%

80%

Flat

70.0%

50%

12.5%

9.0%

Down
2.4%

0.9%

1st
Period2nd
Period3rd
Period4th
Period5th
Period6th
Period7th
Period

50

46

54

48

100

85

116

6th Period
Average Change+ 12.1％+25.2%

20%-12.1%

0%

44.8%

44.0%
14.8%

891㎡

Average Change ＋20.4％+35.5%

10%

64.7%

0%
Number of
RenewedContracts

5,946㎡

30%
72.9%

23.9%

29,832㎡

Rent of the Same Space before Move-out and after Move-in

40%

83.3%

40%
20%

Up

32.9%
54.3%

69.6%

Greater Tokyo Other Regional Cities* Change = ((Rent of move-in / rent of move-out) – 1) X100 (Including common area charges)

52.0%
60%

Space subject
to revision

-10%
-20%
Central Tokyo
Space vacated& re-occupied

Greater Tokyo Other Regional Cities

3,918㎡

4.Fund Management Results

397㎡

3,267㎡

19

Enhancing Competitiveness of Property by Renovation
Major Renovation Work in the 7th Periodz NOF Kanda Iwamoto-cho Building: Entrance Renovation

Before

After

104.0

Changes in Average Rent of
NOF Kanda IwamotoIwamoto-cho Building
Rent as of April 30, 2006＝100.0

103.0
102.0
101.0
100.0
99.0
98.0
April 2006

October 2006

April 2007

BeforeAfter

4.Fund Management Results

20End-of-Period Appraisal Value
Increase in Appraisal Values
Appraisal Values at 7th Period-End(based on 28 buildings held at 5th period-end)z Changes in Appraisal Value(¥mln)

6th Period
End
AppraisalValue(¥mln)
mln)

7th Period
End
AppraisalValue(¥mln)
mln)

325,000

Change(¥mln)
16,000z Changes in Assumptions
for Appraisal Value
NCF*

15,500300,000

Average
Cap Rate*

15,000

198,400

Greater Tokyo(7 bldgs)

43,342

216,830
45,285+ 9.3%+ 4.5%

Other Cities(11 bldgs)*75,995

78,268+ 3.0%

Total Portfolio(31 bldgs)* 317,737

340,383+ 7.1%

250,000

5.2%
5.1%

275,000
14,500Central Tokyo(13 bldgs)

5.3%

5.0%

14,0004.9%

225,000

13,500200,000

13,000

4.8%
4.7%

5th Period

6th Period

7th Period

5th Period

6th Period

7th Period*NCF: Portfolio (28 bldgs) total of net cash flows based on direct capitalization method* Average Cap Rate: NCF/Portfolio (28 bldgs) total of income based on direct capitalization method

Changes in Unrealized Gains/Losses for Portfolio◇ Please refer to “Appendix” for details on individual properties.
* Appraisal value at acquisition is added for property acquired in the 7th period.

(¥ mln) (Appraisal Value at Period-End – Book Value)
70,000Total Appraisal Value¥ mln

340,383

Total Book Value¥ mln

282,130

60,000Total Unrealized Gain/Loss¥ mln

58,25250,000

Unrealized Gain/Loss per Unit¥

219,075

40,00058,252

34,58730,000* Unrealized gain/loss: Appraisal value – Book Value

19,21820,000(For Reference) Net Asset per Unit

7,813

10,000

BPS (Book Value)¥606,315NAV (Based on Appraisal Value)¥825,390

30

-315

1,883

0
-10,000
1st Period

2nd Period 3rd Period

4.Fund Management Results

4th Period

5th Period

6th Period

7th Period

21Move-ins and Move-Outs

600

400

200

Greater Tokyo+187 tsubo-190 tsubo-3 tsubo
Other Regional Cities+798 tsubo-975 tsubo-177 tsubo

Nomura Yotsubashi Bldg
Nomura Osaka Bldg

Omron Kyoto Center Bldg
NOF Nagoya Yanagibashi Bldg
NOF Utsunomiya Bldg
NOF Sendai Aoba-dori Bldg
Sapporo North PlazaNOF Shin-Yokohama Bldg
NOF Yokohama Nishiguchi Bldg
NOF Kawasaki Higashiguchi Bldg

Faret Tachikawa Center Square
Crystal Park Bldg
NOF Technoport Kamata Center Bldg

NOF Toyo-cho Bldg
NOF Minami Shinjuku Bldg
NOF Kanda Iwamoto-cho Bldg
NOF Surugadai Plaza Bldg
NOF Shinagawa Konan Bldg
NOF Tameike Bldg
Nishi-Shinjuku Showa Bldg
NOF Shiba Bldg
Secom Medical Bldg
NOF Shibuya Koen-dori Bldg
Tennozu Park Side Bldg
NOF Nihonbashi Honcho Bldg

-800

JAL Bldg-600

Shinjuku Nomura Bldg

-400

22
4.Fund Management Results

Nomura Hiroshima Bldg

+276 tsubo

Hiroshima Tatemachi NOF Bldg

-1,205 tsubo-200

Move-outs
Move-ins+1,482 tsubo

NOF Kobe Kaigan Bldg

800

Central Tokyo

NOF Midosuji Bldg

(tsubo)Change8,160 ㎡ (2,468 tsubo) : 2.4% of weighted averageof total floor spaceMove-outs 7,842 ㎡ (2,372 tsubo) : 2.3% of weighted averageof total floor space⇒ Change 318 ㎡ (96 tsubo): More move-ins than move-outs

Move-outs

Move-ins

Move-ins

0Space occupied by move-ins and vacated by move-outszResults of Financial Sector
Major Achievements

10-year JGB Yield vs. NOF’s Dividend Yields(%)（2006/6/15 - 2007/6/15）

4.0
10-year JGB yield

NOF dividend yieldz Improvement in Credit Ratings
RatingAgency3.5
3.0

RatingOutlookLong-term Corporate Credit Rating: A
Short-term Corporate Credit Rating: A-1

S&P

Stable2.5

Moody’sIssuer Rating: A2

StableR&I

Issuer Rating: AA-

Stable2.0
1.5
Nov 2006

1.0
Jun 2006

Sep 2006

Apr 2007

7th Fiscal Period

Dec 2006

Mar 2007(Note) NOF’s dividend yield is calculated on forecasts.

Moody’s: Upgraded from A3 to A2 effective November 17, 2006
R&I
: Upgraded from A＋ to AA－ effective February 6, 2007

Jun 2007

Source: Bloomberg

Objectives of Management in Financing
z Maintenance of LTV at a conservative levelz Issuance of Investment Corporation Bonds
SeriesAmountDate

Maturity

Yield

Security /Guarantee

5th¥ 5 bln

3/19/2007

3/19/2012(5-year)

1.61%
p.a.

Unsecured /Unguaranteed

6th¥ 5 bln

3/19/2007

3/17/2017(10-year)

2.21%
p.a.

Unsecured /Unguaranteed

7th¥ 4.5 bln

3/19/2007

3/17/2028(21-year)

2.90%
p.a.

Unsecured /Unguaranteed

Total¥ 14.5 blnz Prolongation of periods and fixing of interest ratesz Diversification of repayment dates (4-5 years on average)z Diversification of financing methodsz Effective use of capital (security deposits received, etc.)

4.Fund Management Results

23End-of-Period Financial Status (1)LTV (Loan to Value)

Duration and Borrowing Rate
41.2％

z LTV as of 7th Period Endz

Average remaining duration of long-term fixed debts(including Investment Corporation Bonds)

Interest-Bearing Debts ¥130.0 bln（borrowings¥85.5 bln)
（corporation bonds ¥44.5 bln）
Total Assets

6.0 yearsz Weighted average of interest rate of all the debts¥315.4 bln

1.65％

Maintaining Conservative LTV Levelz Duration of Long-term fixed interest borrowings andz Changes in LTVchanges in average borrowing rates (all)※Unaudited

60％(year)

7
50％

46.4%
41.2%

40％

※

36.2%

37.2%

38.9%

41.2%

※

5.1 5.0536.4% 36.8%

※

33.8%

※

6.0

6

44.7%

30.9%

4

30％

3.9

4.4 4.3
3.8

3.7

4.6
3.9

3.3

3
20％
’03.
12

’04.’04.
4 5

’04.
10

’05. ’05.
4 5

’05.
10

’06.
4

’06.
6

’06.
10

’07.
4

2

1.2% 1.0% 1.1%
’03. ’04. ’04.
12
4 5

1.1% 1.1% 1.3%
’04.
’05. ’05.
10
4 5

1.1%
’05.
10

1.3% 1.4% 1.4%
’06. ’06.
’06.
4 6
10

1.7%
’07.
4

Controling LTV Between 35% to 45%
Steadily Promoting Prolongation of Duration

4.Fund Management Results24End-of-Period Financial Status (2)Interest-Bearing Debts

List of Lenders (Total 28 Financial Institutions)(¥ mln)z

Short-term vs. Long-term Debts
6th
6th Period
Period End
End
Short-term Debts¥19.5 bln
（18.4％）

Total Amount
Total Amountof Debt
Lenderof Debt
Remaining
Remaining
13,675Development Bank of Japan
2,000
6,875
Zen-Kyo-Ren
2,000
5,150
Sumitomo Life Insurance Company
2,000
5,150
Hachijuni Bank
1,500
5,000
Hiroshima Bank
1,500
5,000
Keiyo Bank
1,000
4,000
Mitsui Sumitomo Insurance
1,000
4,000
Chugoku Bank
1,000
3,500
Bank of Fukuoka
1,000
3,150
Aozora Bank
1,000
3,000
Yamanashi Chuo Bank
1,000
3,000
Sompo Japan Insurance Inc.
1,000
3,000
Tokio Marine & Nichido Fire Insurance Co., Ltd.
1,000
3,000
Nippon Life Insurance Company
1,000
Total borrowings
85,500

Lender

7th
7th Period
Period End
End
Short-term Debts¥22.5 bln
（17.3％）

Long-term Debts*¥86.5 bln
（81.6％）

Long-term Debts*¥107.5 bln（82.7％）*Including Investment Corporation Bonds*Including Investment Corporation Bonds

Bank of Tokyo-Mitsubishi UFJ
Sumitomo Mitsui Banking Corp.
Mitsubishi UFJ Trust and Banking
Sumitomo Trust & Banking Corp.
Norinchukin Bank
Dai-Ichi Mutual Life Insurance
Nomura Trust and Banking
Mitsui Life insurance
Iyo Bank
Mizuho Corporate Bank
Chiba Bank
Chuo Mitsui Trust and Banking
Taiyo Life Insurance
Daido Life Insurance(Reference) Investment Corporation Bonds

44,500

Diversification of MaturityzFloating vs. Fixed Rates
6th
6th Period
Period EndEnd

7th
7th Period
Period EndEnd(\ bln)19

17.5
Borrowings

16

15

Investment Corporation Bonds

10

Floating Rate
¥8.0 bln
Fixed Rate* （7.5％）¥98.0 bln
（92.5％）

Floating Rate
¥7.5 bln
Fixed Rate* （5.8％）¥122.5 bln（94.2％）

6.5
3.5

2007
*Including Interest Rate Swaps

6

4

4
2
2009

2011

3

4

2013

5

5

2015

2017

5

2019

4.5

2021

2023

2025

2027

*Including Interest Rate Swaps

4.Fund Management Results

25Appendix

List of Property
As of April 30, 2007
Property Name
Shinjuku Nomura Bldg
JAL Bldg
NOF Nihonbashi Honcho Bldg
Tennozu Park Side Bldg

Other Regional Cities

Greater Tokyo

Central TokyoNOF Shibuya Koen-dori Bldg
Secom Medical Bldg
NOF Shiba Bldg

Location

Nishi-Shinjuku,
1978. 5
Shinjuku-ku
Higashi-Shinagawa,1996. 6
Shinagawa-ku
Nihonbashi
1961. 4(Extension 1968.4)
Honcho,Higashi-Shinagawa,1995. 1
Shinagawa-ku
Udakawa-cho,
1987. 9Shibuya-ku
Nibancho,2005.2
Chiyoda-ku
Shiba,
1991. 3
Minato-ku

Nishi-Shinjuku,
Shinjuku-ku
Akasaka,NOF Tameike Bldg
Minato-ku
Higashi-Shinagawa,NOF Shinagawa Konan Bldg
Shinagawa-ku
Kanda Surugadai,
NOF Surugadai Plaza Bldg
Chiyoda-ku
Iwamoto-cho,
NOF Kanda Iwamoto-cho Bldg
Chiyoda-ku
Sendagaya,
NOF Minami Shinjuku Bldg
Shibuya-ku
Shinsuna,
NOF Toyo-cho Bldg
Koto-ku
Minami-Kamata,NOF Technoport Kamata Center Bldg
Ota-kuGotenyama,
Crystal Park Bldg
Musashino City
Akebono-cho,
Faret Tachikawa Center Square
Tachikawa City
Kawasaki-ku,
NOF Kawasaki Higashiguchi Bldg
Kawasaki City
Nishi-ku,
NOF Yokohama Nishiguchi Bldg
Yokohama City
Kohoku-ku,
NOF Shin-Yokohama Bldg
Yokohama City
Chuo-ku,
Sapporo North Plaza
Sapporo City
Aoba-ku,NOF Sendai Aoba-dori Bldg
Sendai City
Baba-dori,
NOF Utsunomiya Bldg
Utsunomiya City
Nakamura-ku,
NOF Nagoya Yanagibashi Bldg
Nagoya City
Simogyo-ku,
Omron Kyoto Center Bldg
Kyoto City
Chuo-ku,
NOF Midosuji Bldg
Osaka City
Chuo-ku,
Nomura Osaka Bldg
Osaka City
Nishi-ku,
Nomura Yotsubashi Bldg
Osaka City
Chuo-ku,
NOF Kobe Kaigan Bldg
Kobe City
Naka-ku,
Hiroshima Tatemachi NOF Bldg
Hiroshima City
Naka-ku,
Nomura Hiroshima Bldg
Hiroshima City
Nishi-Shinjuku Showa Bldg

Total

Completion

Floors Total Floor Space(Ground)(Note 1, 2)
117,258.88
50(Entire building)①81,421.13
26②25,260.48

Leasable
Space （㎡）
31,589.26# ofLeased Space Occupancy
Rate
Tenants（㎡）
31,392.07

99.4%

85

Standard Floor
Space （㎡）

Air
Conditioning

1,262.37

Each 1/4 floor

Room
PML
Height （㎜） (Note 3)
2,600

5%

Acquisition
Date

Acquisition
Price (￥mln)

2003.1238,73042,084.11

42,084.11

100.0%

1

2,214.55

Each 1/6 floor

2,700

6%

2005. 333,0808

29,430.67

19,233.28

19,233.28

100.0%

13

2,615.23

Each span

2,650

14%

2003.12

20,60021①43,893.46②17,587.30

18,051.61

18,051.61

100.0%

14

1,331.14

Each 1/4 floor

2,650

6%

2004. 214,8008

5,358.55

3,420.16

3,420.16

100.0%

3

442.38Each span

2,500

12%

2004. 912,00078,683.73

8,821.24

8,821.24

100.0%

1

980.00Each span

2,500～2,7004%

2006. 911,50010,000

7

11,425.20

8,165.10

8,165.10

100.0%

9

1,260.41

Each span

2,600

14%

2004. 5

1982.411①10,902.22②5,858.26

5,659.96

5,659.96

100.0%

20

585.99Each span

2,500

13%

2005.118,800

1959. 896,478.50

4,715.20

4,715.20

100.0%

13

519.06

Each span

2,500

17%

2005. 97,400

1987.118

10,077.02

7,850.99

7,850.99

100.0%

5928.29Each floor

2,600

11%

2003.12

5,500

1997. 48

5,782.27

4,160.94

4,160.94

100.0%

1

626.33

Each 1/2 floor

2,700

6%

2004. 2

5,150

1988. 7

94,698.97

4,076.38

4,076.38

100.0%

8

480.07

Each floor

2,550

14%

2004. 2

3,080

1986. 38

3,160.05

2,464.71

2,464.71

100.0%

5

327.66

Each floor

2,500

12%

2004. 62,280

1989.117

18,051.08

18,218.17

18,218.17

100.0%

1

1,986.46

Each span

2,550

14%

2003.12

7,550

1990. 911

13,683.46

13,683.46

100.0%

14

1,148.45

Each span

2,650

10%

2003.126,430

1991.10113,900.85

3,900.85

100.0%

11

193.93～590.35

Each floor

2,500

14%

2006. 2

3,700
3,290

21,516.54(Entire B ridge)①6,462.19②3,868.36①33,706.03②6,865.80

1994.12126,853.38

6,853.38

100.0%

17

1,099.32

Each 1/4 floor

2,600

10%

2003.121988. 3

12

10,932.69

8,258.09

8,026.72

97.2%

26

684.62Each 1/3 floor

2,550

16%

2005. 6

9,500

1985.109

10,055.13

6,817.76

6,722.91

98.6%

30

794.75

Each 1/8 floor

2,500

14%

2005. 5

5,050

1990.10

9

11,149.99

8,074.83

8,074.83

100.0%

3

940.84Each span

2,500

17%

2003.12

3,600

1981. 812

18,842.51

13,744.24

12,154.10

88.4%

44

1,105.75

Each floor
Auxiliary

2,580

2%

2006. 6

6,820

1968. 7

11

12,977.45

6,160.26

5,863.05

95.2%

28

802.79Each span

2,480

8%

2005.11

3,200

1999.12

10

10,479.63

5,887.40

5,887.40

100.0%

25

664.68Each span

2,700

5%

2003.122,970

1991. 312

7,363.25

4,655.74

4,655.74

100.0%

12405.96

Each 1/2 floor

2,460

14%

2005. 93,550

2000.7

11

34,616.84

34,616.84

34,616.84

100.0%

1

2,035.94

Each 1/16
floor

2,600

9%

2007. 323,7001974. 410

21,007.98

12,240.88

12,240.88

100.0%

16

1,234.14

Each 1/4 floor

2,600

13%

2005.11

12,9002,500

19%2003.12

6,410

2,650

13%

2003.123,940

Each floor
Auxiliary
Each floor
Auxiliary

1983.12

12

23,522.82

16,977.79

16,977.79

100.0%

28

1,336.52

1991.1115

16,845.87

11,558.68

11,558.68

100.0%

17797.35

1998. 2

16

10,292.93

6,425.16

5,137.97

80.0%

28

528.43

Each span

2,600

7%

2003.123,280

1966.1112

8,206.91

4,433.44

3,192.62

72.0%

23

515.17

Each span

2,450

13%

2005.11

2,100

1976. 7

9

11,950.37

7,912.09

7,447.58

94.1%

15

1,047.54

Each floor
Auxiliary

2,450

11%

2003.121,930

350,712.00

345,308.72

98.5%

517

7.0%

282,840(Note 1) Total floor space is taken from the registry book.
(Note 2) Total floor space of the properties owned in compartment, except NOF Technoport Kamata Center Bldg, is expressed as ① entire building, and ② portion owned by NOF.
(Note 3) Rate of PML (Probable Maximum Loss) for each building was calculated by Shimizu Construction. 7.0% at the bottom field is for the entire portfolio.

Appendix27

Earnings by Property(¥000)
Property Name
Number of business days
Rental business revenues
Rental revenues *incl. common charges
Other revenues
Rental business expenses
Property management costs
Taxes and duties
Utility expenses
Insurance expenses
Repairs and maintenances
Other expenses
Depreciation
Rental Profits
Net Operating Income (NOI)
Property Name
Number of business days
Rental business revenues
Rental revenues *incl. common charges
Other revenues
Rental business expenses
Property management costs
Taxes and duties
Utility expenses
Insurance expenses
Repairs and maintenances
Other expenses
Depreciation
Rental Profits
Net Operating Income (NOI)
Property Name
Number of business days
Rental business revenues
Rental revenues *incl. common charges
Other revenues
Rental business expenses
Property management costs
Taxes and duties
Utility expenses
Insurance expenses
Repairs and maintenances
Other expenses
Depreciation
Rental Profits
Net Operating Income (NOI)

Shinjuku
Nomura Bldg.
181
1,808,091
1,626,411
181,679
848,111
214,933
159,635
184,217
3,196
63,72863,743
158,656
959,979
1,118,636
NOF Kanda
Iwamoto-cho Bldg.
181
150,994
135,427
15,56647,181
13,858
9,208
7,491
241
669
575
15,136
103,812
118,949

NOF Nihonbashi
Honcho Bldg.
181
181
850,712807,019
43,693262,948
74,22837,77943,666
1,354
12,882
6,426
145,714
86,610614,248587,763
759,963
674,374

JAL Bldg.*

NOF Minami
Shinjuku Bldg.
181
101,876
88,111
13,76437,904
7,730
8,325
7,107
173
3,804
1,920
8,843
63,971
72,815

NOF Toyo-cho
Bldg.*181

NOF Utsunomiya
NOF Nagoya
Bldg.
Yanagibashi Bldg.
181
181
174,007
133,743
143,931
121,435
30,07512,307108,172
88,83923,837
13,136
14,725
12,16917,77911,024
585
356
6,635
15,7834,180
3,776
40,42832,59365,83444,904106,262
77,497

Omron Kyoto
Center Bldg.*
4253,147
196,756
249,904

53,474
46,828100,303

Tennozu Park
Side Bldg.
181774,362
661,548
112,814417,611
169,352
51,492
31,421
836
3,213
5,497
155,797356,751
512,549

Tennozu Park
Side Bldg.
181364,644335,854
28,79086,142
16,04823,834
11,550
277
5,595
1,929
26,907
278,501
305,409

NOF Technoport
Crystal Park Bldg.
Kamata Center Bldg.

181
421,522362,215
59,307
231,144
50,97535,12042,196
1,001
28,982
5,640
67,227
190,377
257,604
NOF Midosuji
Bldg.
181
488,067
420,253
67,813
239,687
40,863
51,63930,983938
49,563
6,608
59,090248,380
307,470

181
125,523
112,652
12,87153,07322,296
5,980
241
2,321
123
22,10972,45094,560

Secom Medical
Bldg.*
181

45,026203,232
248,259

NOF Shiba Bldg.
181
332,949
294,991
37,958125,877
24,573
22,84020,177
563
7,378
3,627
46,716207,072
253,788

Nishi-Shinjuku
Showa Bldg.
181
300,574
275,200
25,373
115,748
38,65927,884
17,144748
1,417
11,01018,885
184,825
203,710

NOF Tameike
NOF Shinagawa
Bldg.
Konan Bldg.
181
181
204,136
257,754
189,523
224,573
14,612
33,18080,221
98,31816,752
24,997
16,655
15,35015,21522,227
318
529
5,712
3,615
5,069
2,541
20,497
29,058
123,915
159,435
144,413
188,494

Faret Tachikawa
NOF Kawasaki
NOF Yokohama
NOF ShinCenter Square Higashiguchi Bldg. Nishiguchi Bldg. Yokohama Bldg.*
181
181
181
181
234,192
328,773245,445
211,514283,624
217,337
22,67745,14828,107
122,923
145,962
99,41339,875
22,137
22,582
14,132
18,50818,16931,966
24,77916,788
501
569
510
32
12,983
15,762
5,285
2,846
1,951
31,12964,137
23,64842,348111,268
182,811
146,031
82,835
142,397
246,949
169,679
125,184

NomuraNomuraNOF Kobe Kaigan
Osaka Bldg.
Yotsubashi Bldg.
Bldg.
181
181
181
534,057
324,401
160,764444,351
289,728
133,228
89,70534,672
27,535
217,772
171,521112,20765,45343,36323,31040,65029,58016,17254,89230,39919,979
1,160
795
703
7,731
19,870
8,931
3,768
3,982
8,327
44,115
43,52934,783
316,284
152,879
48,557360,400
196,408
83,340Hiroshima
NomuraTatemachi
Hiroshima Bldg.
181
181
101,223
209,638
84,070186,490
17,15323,14858,99384,85015,811
27,795
11,39818,608
11,746
17,701
331
537
5,581
6,595
4,180
2,137
9,942
11,47542,230124,788
52,173
136,263

Sapporo North
Plaza
181
338,260
287,362
50,898161,329
36,953
14,84554,2301,066
13,567
7,997
32,669176,930
209,599

NOF Surugadai
Plaza Bldg.*
18130,427
116,948
147,375
NOF Sendai
Aoba-dori Bldg.
181
168,932
142,448
26,484
94,17724,98817,543
15,683
545
9,387
1,819
24,20974,75598,964
Total 31 Properties
11,090,987
9,981,093
1,109,894
4,805,622
1,135,710
857,744784,754
22,713350,087
176,271
1,478,340
6,285,364
7,763,705* Detailed figures are not disclosed due to compelling reasons. However, they are included in "Total 31 bldgs."

Appendix28

List of End-of-Period Appraisal Value

Central Tokyo
Greater Tokyo
Other Regional Cities(¥ mln)Book Valueat 7th Period End(¥ mln)Appraisal Valueat 7th Period End(¥ mln)Appraisal Valueat 6th Period End(¥ mln)38,73033,08020,60014,80012,00011,50010,000
8,800
7,400
5,500
5,150
3,080
2,280
172,920
7,550
6,430
3,700
3,290
9,500
5,050
3,600
39,120
6,820
3,200
2,970
3,550
23,70012,900
6,410
3,940
3,280
2,100
1,930
70,800282,840

39,076
33,66820,54913,923
12,558
11,510
10,119
8,786
7,665
5,472
5,147
3,064
2,268
173,811
7,141
6,227
3,698
3,094
9,634
5,053
3,417
38,267
6,934
3,181
2,732
3,617
23,324
12,789
6,392
3,759
3,062
2,080
2,176
70,051
282,130

67,20032,10025,00019,70013,90011,60010,800
10,200
7,920
6,480
5,600
3,670
2,660
216,830
8,190
7,130
4,050
5,120
10,1006,625
4,070
45,285
6,868
3,400
3,390
3,760
23,70013,400
9,790
6,070
3,420
2,150
2,320
78,268340,383

54,20031,22023,50017,90013,90011,50010,40010,000
7,900
6,260
5,520
3,550
2,550
198,400
8,100
7,040
3,900
4,740
9,690
5,952
3,920
43,342
6,825
3,380
3,320
3,590
23,70013,300
8,560
5,510
3,420
2,100
2,290
75,995
317,737（Ａ）（Ｂ）

Acquisition Price

Property Name

Shinjuku Nomura Bldg
JAL Bldg
NOF Nihonbashi Honcho Bldg
Tennozu Park Side Bldg
NOF Shibuya Koen-dori Bldg
Secom Medical Bldg
NOF Shiba Bldg
Nishi-Shinjuku Showa Bldg
NOF Tameike Bldg
NOF Shinagawa Konan Bldg
NOF Surugadai Plaza Bldg
NOF Kanda Iwamoto-cho Bldg
NOF Minami Shinjuku Bldg
Total Central TokyoNOF Toyo-cho Bldg
NOF Technoport Kamata Center Bldg
Crystal Park Bldg
Faret Tachikawa Center Square
NOF Kawasaki Higashiguchi Bldg
NOF Yokohama Nishiguchi Bldg
NOF Shin-Yokohama Bldg
Total Greater Tokyo
Sapporo North PlazaNOF Sendai Aoba-dori Bldg
NOF Utsunomiya Bldg
NOF Nagoya Yanagibashi Bldg
Omron Kyoto Center Bldg.
NOF Midosuji Bldg
Nomura Osaka Bldg
Nomura Yotsubashi Bldg
NOF Kobe Kaigan Bldg
Hiroshima Tatemachi NOF Bldg
Nomura Hiroshima Bldg
Total Other Regional Cities
Grand Total

Difference between Book Value and Appraisal Value\ 58,252 mln*

Difference between
6th and 7th Period(¥ mln)Change13,000
880
1,500
1,800
100
400
200
20
220
80
120
110
18,430
90
90
150
380
410
673
150
1,943
43
20
70
170
100
1,230
560
50
30
2,273
22,646

24.0%
2.8%
6.4%
10.1%
0.9%
3.8%
2.0%
0.3%
3.5%
1.4%
3.4%
4.3%
9.3%
1.1%
1.3%
3.8%
8.0%
4.2%
11.3%
3.8%
4.5%
0.6%
0.6%
2.1%
4.7%
0.8%
14.4%
10.2%
2.4%
1.3%
3.0%
7.1%

* For these buildings acquired at the 7th Period,
appraisal value is that of the time of acquisition.

（\219,075 / unit）（Ｂ）－（Ａ）
Appendix29

Map of Property
Central Tokyo
01

02

Shinjuku Nomura Bldg

03

NOF Nihonbashi
Honcho Bldg

05

NOF Shibuya
Koen-dori Bldg

Greater Tokyo
15

JAL Bldg

NOF Technoport
Kamata Center Bldg

04

Tennozu Park
Side Bldg

06

Secom Medical Bldg

Other Regional Cities

17

Faret tachikawa
Center Square

18

24

NOF Kawasaki
Higashiguchi Bldg

NOF Nagoya
Yanagibashi Bldg

26

28

Nomura Osaka Bldg

NOF Kobe
Kaigan Bldg

Appendix30

Acquisition Channel of Property
Acquisition
ChannelOriginally owned
by or developedby Nomura Real
Estate Group
Companies

Key Properties
Acquired at Listing

Shinjuku
Nomura Bldg.

Faret Tachikawa
Center Square

Key Properties Acquired after Listing

Tennozu Park
Side Bldg.

Secom Medical Bldg.

Omron Kyoto
Center Bldg.

8 Properties
Cumulative Acquisition Price:¥ 104.3 bln

Nomura Yotsubashi Nomura Osaka Bldg.
Bldg.

• Information fromor
• Intermediation *by Nomura Real
Estate Group
Companies

NOF Nihonbashi
Honcho Bldg.

NOF Shinagawa
Konan Bldg.

JAL Bldg. *NOF Minami
Shinjuku Bldg.

Nishi-Shinjuku
Showa Bldg.

Sapporo North Plaza

16 Properties
Cumulative Acquisition Price:¥ 127.2 bln

NOF Toyo-cho Bldg.

NOF Kobe
Kaigan Bldg.

NOF Yokohama
Nishiguchi Bldg.

NOF Sendai
Aoba-dori Bldg.

NOF
Midosuji Bldg.

Hiroshima Tatemachi
NOF Bldg.

Information fromsources outside
Nomura Real
Estate Group

7 PropertiesNOF Shiba Bldg.

NOF Shibuya
Koen-dori Bldg.

NOF Kawasaki
Higashiguchi Bldg.

NOF
Tameike Bldg.

Cumulative Acquisition Price:¥ 51.3 bln
Appendix31

Fund Summary
1st Period
April 2004

2nd Period
October 2004

3rd Period
April 2005

4th Period
October 2005

5th Period
April 2006

6th Period
October 2006

7th Period
April 2007

Total Assets
Interest-bearing Liabilities
LTV (Based on Total Assets)
Unitholders' Capital
Outstanding Units Issued
Net Assets
Net Assets per Unit
End-of-Period Closing Unit PriceMarket Capitalization

¥ mln
¥ mln
%
¥ mln
unit
¥ mln
¥
¥
¥ mln

147,946
61,00041.2
71,706
148,600
73,233492,820
645,000
95,847

173,545
64,50037.2
92,168
184,650
94,774513,266
767,000
141,626

208,00396,50046.4
92,168
184,650
94,849513,672
758,000
139,964

239,067
93,00038.9
124,610
229,970
128,094
557,004
782,000
179,836

268,559
120,000
44.7
124,610
229,970
128,206
557,492
998,000
229,510

288,060
106,000
36.8
156,767
265,903
161,004
605,499
991,000
263,509

315,402130,000
41.2
156,767
265,903
161,221606,315
1,490,000
396,195

Operating Revenues
Operating Income
Net Income
Total Cash Distribution
Cash Distribution per Unit

¥ mln
¥ mln
¥ mln
¥ mln
¥

4,531
2,313
1,526
1,526
10,273

6,656
2,930
2,606
2,606
14,114

7,106
3,228
2,681
2,681
14,520

8,641
4,111
3,484
3,484
15,150

9,810
4,558
3,596
3,596
15,638

10,739
5,182
4,229
4,229
15,905

11,090
5,137
4,466
4,453
16,750Total Portfolio (Based on Acquisition Price)
Number of Properties
Leasable Space
Number of Tenants
Occupancy Rate

¥ mln

%

127,260
15
180,793.50
264
93.3

151,540
18
194,673.65
277
94.4

184,62019
236,904.67
287
98.1

210,12023
261,428.50
357
97.3

240,82028
293,464.10
467
98.4

259,14030
316,132.49
512
98.2

282,84031
350,712.00
517
98.5

Return on Assets (ROA)(annualized)
Return on Equity (ROE)(annualized)
Capital-Asset Ratio
Debt-Service Coverage Ratio （DSCR）

%
%
%
%
%
x

1.1
2.8
2.1
5.2
49.5
11.45

1.6
3.1
2.8
5.6
54.6
11.05

1.4
2.8
2.8
5.7
45.6
9.95

1.5
3.1
2.7
5.4
53.6
10.08

1.4
2.9
2.8
5.7
47.7
7.92

1.5
3.0
2.7
5.4
55.9
8.35

1.5
3.0
2.8
5.6
51.1
7.88

End-of-Period Total Book Value
End-of-Period Total Appraisal Value
Total Latent Profit and Loss
Latent Profit and Loss per Unit
Net Asset Value per Unit (Based on Appraisal Value)

¥ mln
¥ mln
¥ mln
¥
¥

127,089
127,12030
202
493,023

151,815
151,500-315-1,707
511,559

185,406
187,290
1,883
10,199523,872

211,566
219,380
7,813
33,975590,979

241,901
261,120
19,21883,572641,064

259,449
294,037
34,587130,074
735,574

282,130
340,383
58,252
219,075
825,390

NOI
Rate of NOI (p.a.)
Depreciation
Capital ExpendituresFFO
FFO per Unit

¥ mln
%
¥ mln
¥ mln
¥ mln
¥

3,350
7.2
666
22
2,193
14,757

4,451
6.2
949
511
3,555
19,255

4,970
6.1
1,023
484
3,719
20,142

6,125
6.1
1,229
1,016
4,727
20,559

6,952
5.9
1,399
934
5,034
21,889

7,591
6.0
1,471
588
5,739
21,585

7,763
5.7
1,478
757
5,985
22,509㎡

Appendix32

Cash Flow Statement
6th Fiscal Period

7th Fiscal Period

May 1, 2006 - Oct 31, 2006

Nov 1, 2006 - Apr 30, 2007(¥000)(¥000)

I. Cash Flow of Operating Activities
Income before income taxes
Depreciation
Amortization of long-term prepaid expenses
Amortization of corporate bond issuance costs
Interest income
Interest expenses
Compensation for superficies establishment
Loss on disposal of tangible assets
Change in rental receivables
Change in consumption tax refundable
Change in trade accounts payable
Change in other accounts payable
Change in rent received in advance
Change in security deposits received
OthersSubtotalInterest received
Interest paid
Taxes and duties
Net cash provided by operating activities

4,230,321
1,471,853
808
38,429▲ 2,917780,930175▲ 13,054
50,71841,524▲ 101,964
115,861
86,56961,9686,761,226
2,917▲ 794,534▲ 1,482
5,968,126

4,466,823
1,478,442
1,227
40,641▲ 14,027
869,671▲295,747
5,505▲ 319,807
91,104229,100
121,741
37,697▲ 52,063
6,660,309
14,027▲ 832,617▲ 3,279
5,838,440

II. Cash Flow of Investing Activities▲ 11,549,180
Purchase of tangible assets▲ 7,455,511
Purchase of tangible assets in trust▲ 132
Purchase of intangible assets▲ 8,835
Security deposits paid
Security deposits received
502,614▲ 354,491
Security deposits in trust paid
Security deposits in trust received
622,974▲ 6,052
Long-term prepaid expenses
Compensation for superficies establishment received
Net cash used in investing activities▲ 18,248,614▲ 22,675▲ 24,070,591
2,317▲ 854,929
3,345,506
295,747▲ 21,304,624

III. Cash Flow of Financing Activities
Proceeds from short-term debt
Repayment of short-term debt
Proceeds from long-term debt
Repayment of long-term debt
Proceeds from investment corporation bonds
Issuing cost of investment corporation bonds
Proceeds from investment units
Cash distribution to unitholders
Net cash provided by financing activities

2,000,000▲ 16,000,000
32,156,980▲ 3,594,338
14,562,642

1,500,000▲ 2,000,000
25,500,000▲ 15,500,000
14,500,000▲ 124,542▲ 4,227,732
19,647,724

2,282,154
25,587,120
27,869,274

4,181,540
27,869,274
32,050,815

IV. Change in Cash and Cash Equivalent
V. Starting Balance of Cash and Cash Equivalent
VI. Ending Balance of Cash and Cash Equivalent

Appendix33

Unit Price and Market Capitalization (Dec. 4, 2003 – June 15, 2007)

1,600,000

Market Capitalization (\ mln)

Unit Price (\)

As of June 15, 2007
Market Capitalization : \343,014 mln
All-time High Price :\1,560,000
All-time Low Price :\505,000

1,500,000
1,400,000

Market Capitalization

1,300,000

TSE REIT Index (Note)

700,000

600,000
Unit Price
500,000

1,200,000

Initial Public Offering\500,000

1,100,000

2nd Public Offering\588,000

3rd Public Offering\740,782

4th Public Offering\926,100

400,000

1,000,000
300,000

900,000
800,000

200,000
700,000
600,000

100,000

500,000
400,000
2003/12

2004/3

2004/6

2004/92004/12

2005/3

2005/6

2005/92005/12

2006/3

2006/6

2006/92006/12

2007/30
2007/6(Note) TSE REIT Index on June 15, 2006 = NOF’s closing unit price on the same date (one year from June 15, 2006)

Appendix34

Organization of the Asset Management Company

Corporate Profile
Shareholders’ Meeting[ Registered Trade Name ]Nomura Real Estate Asset Management Co., Ltd.

Auditors
Board of Directors[ Date of Incorporation ]January 24, 2003

Executive
Director
Compliance
Committee

Compliance & Risk
Management Group *[ Capital ]¥300,000,000

Office Management
Division

Residence Management
Division

Investment Committee

Investment Committee

Acquisition
Group

Asset
Management
Group

Fund
Management
Group

Financial &Control Group(Responsibilities)(Responsibilities)(Responsibilities)(Responsibilities)

 Businesses Businesses Businesses
 Fund raising.
relevant to due
relevant torelevant todiligence andmanagement,
management of  Accounting,taxes andacquisition ofmaintenanceportfolio,
liability
properties to be
and sale ofdisclosure ofmanagement
invested.
properties in theinformation (IR).
of NOF.
portfolio.
 Accounting,taxes andadministration of
NREAM.

Acquisition
Group

Asset
Management
Group

Fund
Management
Group

Financial &Control Group(Note)
Responsibilities of Groups under Residence Management Division are
omitted because these groups are not engaged in management of NOF.

*Compliance & Risk Management Group(Responsibilities)
 Businesses relevant to compliance and risk management.
 Internal audit.

[ Shareholder ]Nomura Real Estate Holdings Inc. (100%)[ Number of Employees ]54 (including Directors)[ Description of Business ]Asset management business for investment
corporations (J-REITs)◆Licensed as an investment corporation engaged
in asset management business:
Prime Minister No. 28◆Licensed for discretionary proxy in realty trading:
Minister of Land, Infrastructure and Transport
No. 18◆Licensed for real estate trading:Governor of Tokyo No. (1) 81679

NOF Management Division

Appendix35

Below is a message announced jointly with the asset management company at the time of listing on December 4, 2003.

We, at Nomura Real Estate Office Fund Inc., believe that listingof Real Estate Investment Trust (REIT) serves to form a baseon which the nation can build their financial resources. The
long-term investment capital will contribute to stabilization of not
only the real estate market, but also the Japanese economy asa whole.
Many investors wish stable investment more than anything else.
Responding to such needs of asset building, we have set ourinvestment policy as being “stable over mid- to long-term”.
Wishing to make a contribution to the nation’s economic growth
in any way, we are determined to continue doing the best of ourability in our function to combine the private financial resources
directly with the real estates.
AN INVESTOR ORIENTED COMPANY
respecting the trust and expectation of the investors
Nomura Real Estate Office Fund, Inc.
(TSE code: 8959)
http://www.nre-of.jp/english/
Fund Manager: Nomura Real Estate Asset Management Co., Ltd.

This document has been prepared for the purpose of provision of information only, andshould not be construed as an offer, solicitation or commercial conduct of any natureassociated with any specific products. Investors wishing to purchase the investment
units of Nomura Real Estate Office Fund, Inc. should contact their own securities
brokers or dealers.
The forward-looking statements with respect to the future financial results contained inthis document should not be construed as a guarantee of the actual performance in the
future.
Although the information contained in this document is intended to be complete andthorough, there is no assurance of precision and safety of the same. Please note thatthe contents of this document is subject to change or cancellation without prior notice.
It is prohibited to make duplication, reproduction, distribution or use of any part or wholeof the information contained in this document without express prior written consent.