February 6, 2015
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 Concerning Financial Results Forecast
for the Periods Ending August 31, 2015 and February 29, 2016
Nippon Accommodations Fund Inc. (“NAF”) provided notification of its results forecast for the period
ending August 31, 2015 (19th Period: March 1, 2015 to August 31, 2015) and the period ending February
29, 2016 (20th Period: September 1, 2015 to February 29, 2016), as follows.
For the results forecast for the period ending February 28, 2015 (18th Period: September 1, 2014 toFebruary 28, 2015), for which we provided notification on October 20, 2014, there is no change in theresults forecast as of the date of this document.

For the period ending
August 31, 2015

Total
revenues

OperatingincomeIncomebeforeincometaxes

Million yen
10,367

Million yen4,316

Million yen
3,611

Million yen
3,610

Distribution perunit (Distribution
in excess ofearnings is notincluded)
Yen
7,450

Million yen
10,288Million yen
4,363

Million yen
3,659

Million yen
3,658

Yen
7,550

Net income

Distribution
in excessof earnings
per unit–(19th Period)
For the period ending
February 29, 2016–

(20th Period)
Period ending August 31, 2015:
Period ending February 29, 2016:

Projected number of investment units issued as of the period-end
Projected number of investment units issued as of the period-end

484,522 units
484,522 units

Notes
1.

The above results forecast is represented by figures as of the date of this document and calculated based on “Periods
ending August 31, 2015 and February 29, 2016: Underlying assumptions of financial results forecast,” and actual total
revenues, operating income, income before income taxes, net income and distribution per unit may vary due to theacquisition or sale of investment assets in the future, fluctuations in the real estate market or other changes in theenvironment in which NAF operates. In addition, these forecasts do not guarantee the distribution amount.
A forecast revision shall be performed if a large deviation from above forecast is expected.
All amounts less than a single unit has been disregarded.

2.
3.


The Japanese original document was distributed to press clubs within the Tokyo Stock Exchange (Kabuto Club) andthe Ministry of Land, Infrastructure, Transport and Tourism, and to the press club of the construction trade newspaperof 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 theevent of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

<Caution> This document is a press release intended for general publication regarding financial results forecast for the periods
ending August 31, 2015 and February 29, 2016 and is not for purposes of soliciting investment. When investing, we ask thatinvestors exercise their own judgment taking full responsibility after having read carefully the new investment unit issuance andsecondary offering prospectus, or any corrections thereof (if made), prepared by NAF.
1

[Reference] Periods ending August 31, 2015 and February 29, 2016: Underlying assumptions of financial results
forecast
Items

Operating period:

Underlying assumptions
Period ending August 31, 2015
(184 days from March 1, 2015 to August 31, 2015)
Period ending February 29, 2016(182 days from September 1, 2015 to February 29, 2016)- NAF holds 112 properties (hereinafter, “investment assets acquired”) as of the dateof this document.
- NAF has concluded a real estate sales contract with condition precedent or a realestate sales contract for the following 4 properties (hereinafter, “properties to beacquired”). The names of the properties to be acquired and the planned date ofhandover are as follows.
<March 31, 2015 handover (planned)>
Medical Home Granda Sangen Jaya (Land with leasehold interest)<April 3, 2015 handover (planned)>
Park Axis Kamata Station Gate, Park Axis Kinshicho Residence, Park Axis Oshiage
Sumida Koen(Note) The properties with planned handovers of April 3, 2015 are with condition precedent

Investment assetsthat new NAF investment units are to be issued, etc. The planned handover date forand total revenues:

these properties may be changed to a date separately agreed by the buyer and seller(a day up to April 3, 2015) in accordance with a real estate sales contract withcondition precedent.

- For the results forecast, it is assumed that no changes of investment assets (newacquisition, transfer of investment assets acquired, etc.) shall occur by February 29,
2016 subsequent to the aforementioned purchase of the properties to be acquired.
- Revenues from properties to be acquired shall be calculated taking into accountinformation provided from sources such as previous owners, market trends,
contracts with tenants, etc.
- The average month-end occupancy rate during the period for total properties isexpected to be 95.7% during the period ending August 31, 2015 and 96.0% during
the period ending February 29, 2016.
- The numbers may fluctuate due to changes of investment assets.

<Caution> This document is a press release intended for general publication regarding financial results forecast for the periods
ending August 31, 2015 and February 29, 2016 and is not for purposes of soliciting investment. When investing, we ask thatinvestors exercise their own judgment taking full responsibility after having read carefully the new investment unit issuance andsecondary offering prospectus, or any corrections thereof (if made), prepared by NAF.
2Items

Underlying assumptions- Fixed property taxes and urban planning taxes charged to expense are expected tobe ¥580 million for the period ending August 31, 2015 and ¥580 million for theperiod ending February 29, 2016. Fixed property taxes and urban planning taxes
relating to acquisitions of investment assets, which are settled based on thenumber of days said assets are held between NAF and the previous owners, arenot expensed because the amount is included in the acquisition cost.
- Repair expenses and property management fees are being charged to expense in
the amount expected as necessary during the operating period. Please note that the

Operating expenses:

actual repair expenses and property management fees during the operating period
may differ from projections due to the possibility of emergency repair expenses orproperty management fees incurred as a result of damage, etc. to buildings
because of factors difficult to foresee, generally possible discrepancies in amounts
depend on the accounting period and irregularity of repair expenses and property
management fees.
- Depreciation and amortization, calculated based on the straight-line method
including incidental expenses at acquisition, is expected to be ¥2,090 million for theperiod ending August 31, 2015 and ¥2,073 million for the period ending February
29, 2016.
- The proceeds from the issuance of new units decided at the Board of Directors’
meeting held on February 6, 2015 shall be applied to the purchase of properties tobe acquired.
- It is assumed that no fluctuations of the balance of interest-bearing debt, whichamounts to ¥154,500 million as of the date of this document, shall occur until

Interest-bearing debt
and non-operating
expenses:February 29, 2016. It is also assumed that any loans whose repayment date falls
during said periods shall be completely refinanced.
- Interest expenses and interest expenses on investment corporation bonds areprojected to be ¥699 million for the period ending August 31, 2015 and ¥697 million
for the period ending February 29, 2016 (including all related expenses such asamortization of investment corporation bond issuance costs, etc.).
- Amortization of costs related to the issuance of new units, etc. is expected to be ¥6
million for the period ending August 31, 2015 and ¥6 million for the period ending
February 29, 2016.
- It is assumed that a total of 23,100 new units through the issuance of new units by
public offering (22,000 units) and third-party allocation (a maximum of 1,100 units)

Number of units
issued:to be completely issued in addition to the 461,422 units outstanding as of the date ofthis document.
- It is assumed that subsequent to the issuance of new units, there shall be noissuance of new units until February 29, 2016.
- For the calculation of distributions (distribution per unit), the cash distributions policy

Distribution per unit:

provided in NAF Articles of Incorporation is assumed.

(excess of earnings- Distribution per unit may change due to fluctuations in rent income as a result ofexclusive)

movements of tenants, etc., property changes, fluctuations in interest rates,
additional issuance of new units, etc.

Distribution in excessof earnings per unit:- No distribution in excess of earnings is scheduled as of the date of this document.

<Caution> This document is a press release intended for general publication regarding financial results forecast for the periods
ending August 31, 2015 and February 29, 2016 and is not for purposes of soliciting investment. When investing, we ask thatinvestors exercise their own judgment taking full responsibility after having read carefully the new investment unit issuance andsecondary offering prospectus, or any corrections thereof (if made), prepared by NAF.
3