July 18, 2014
To All Concerned Parties
Issuer of Real Estate Investment Trust Securities
4-1, Nihonbashi 1-chome, Chuo-Ku,
Tokyo 103-0027
Nippon Accommodations Fund Inc.
Executive Director
Nobumi Tobari(Code Number 3226)
Investment Trust Management Company
Mitsui Fudosan Accommodations Fund Management Co., Ltd.
President and CEO
Kosei Murakami
Contact CFO and Director
Satoshi Nohara(TEL. 03-3246-3677)

Notification of Partial Early Repayment of Borrowing Funds
This is a notification that Nippon Accommodations Fund Inc. (“NAF”) decided on a partial early repayment of its existingborrowings as shown below.
1. Details of Loans for Early Repayment
LenderLoanAmountInterest Rate

Sumitomo Mitsui Banking
Corporation

5 billion yen(*1)0.64636%

Sumitomo Mitsui Trust Bank,
Limited3 billion yen(*1)0.64636%

Mitsubishi UFJ Trust and Banking
Corporation

6 billion yen(*2)0.45636%

Loan Type&
Repayment Method
Unsecured &unguaranteed,
Bullet repayment
Unsecured &unguaranteed,
Bullet repayment
Unsecured &unguaranteed,
Bullet repayment

Date of Loan

Date of Maturity

November 30,
2010

November 30,
2015

November 30,
2010

November 30,
2015

September 1,
2011September 3,2018(*1) The interest rate is applied from June 30, 2014 to July 30, 2014.
For further details of the loan, please refer to the “Notification of Borrowing Funds” dated November 26, 2010.
(*2) The interest rate is applied from July 1, 2014 to July 31, 2014.
For further details of the loan, please refer to the “Notification of Borrowing Funds” dated August 30, 2011.

2. Outline of Early Repayment
Lender

Early Repayment Amount

Balance after Early
Repayment

Repayment Date

Source of Funds

Sumitomo Mitsui BankingCorporation

1 billion yen

4 billion yen

July 31, 2014

Own Funds

Sumitomo Mitsui Trust Bank,
Limited1 billion yen

2 billion yen

July 31, 2014

Own Funds

Mitsubishi UFJ Trust and BankingCorporation

1 billion yen

5 billion yen

August 1, 2014

Own Funds

3. Status of Interest-bearing Debt After this Event (as of August 1, 2014)(Unit: billion yen)

Before this Event(*1)

After this Event

ChangeShort-term debt

4.0

4.0－

Long-term debt

138.5

135.5

(3.0)

Investment corporation bonds

17.0

17.0

－

Total interest-bearing debt

159.5

156.5

(3.0)

Interest-bearing debt ratio

55.9%

55.5%(0.5)

Long term interest-bearing debt ratio

97.5%

97.4%

(0.0)

(*1) It is assumed that the entire amount of the short term debt totaling ¥4 billion with a date of maturity on July 31, 2014, as disclosed in the press
release “Notification of Borrowing Funds” dated June 26, 2014, will be refinanced.
(*2) The following formula was used to calculate the interest-bearing debt ratio:(interest bearing debt ratio) = (interest bearing debt) ÷ (interest bearing debt + unitholders’ capital) X 100
The unitholders’ capital as of today (125,686,793 thousand yen) was used.
(*3) (long term interest bearing debt ratio) = (long term debt + investment corporation bonds) ÷ (interest bearing debt) X 100(*4) All calculations of ratios were rounded to one decimal place.

4. Others
Regarding the loan repayment risk, there is no important change to the “Investment risks” description in the latest
securities report submitted on May 28, 2014.
5. Outlook
The impact of the early repayment on NAF’s financial results for the period ending August 31, 2014 (17th Period: March1, 2014 to August 31, 2014) will be minimal, and there will be no change to the financial results forecast for the period.

Japanese original document was distributed to press clubs within the Tokyo Stock Exchange (Kabuto Club)and the press club of the Ministry of Land, Infrastructure, Transport and Tourism and to the press club forconstruction publications of the Ministry of Land, Infrastructure, Transport and Tourism.
NAF website: http://www.naf-r.jp/english/index.html

Please note that this English translation of the Japanese original document is provided solely for information purposes.
In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shallprevail.