August 8, 2019
To All Concerned Parties
Issuer of Real Estate Investment Trust Securities:
Nippon Accommodations Fund Inc.
Takashi Ikeda, Executive Director(TSE Code: 3226)
Investment Trust Management Company:
Mitsui Fudosan Accommodations FundManagement Co., Ltd.
Tateyuki Ikura, President and CEO
Inquiries: Tetsuji Kawakami, CFO and Director(TEL: +81-3-3246-3677)

Notification Concerning Revision to Financial Results Forecast
for the Period Ending August 31, 2019 (27th Period)
Nippon Accommodations Fund Inc. (“NAF”) revised its financial results forecast for the period ending August 31,2019 (27th Period: March 1, 2019 to August 31, 2019) that was announced on April 17, 2019 as follows.
1. Details of revision

Net income(million yen)

Distribution perunit(Distribution inexcess ofearnings is notincluded)

Total
revenues(million yen)

Operatingincome(million yen)

Incomebeforeincometaxes(million yen)Previous forecast(A)

11,345

5,126

4,652

4,651

9,600 yen-

Current revised forecast(B)

12,276

5,991

5,517

5,516

10,250 yen-

Change(B-A)

931

864

864

864

650 yen-Change

8.2%

16.9%

18.6%

18.6%

6.8%

-Distribution
in excessof earnings
per unit(Reference) Projected number of investment units issued as of the end of 27th period: 484,522 units
2. Reason for Revision
Due to sale of Park Axis Esaka Hiroshibacho announced today in“Notification Concerning Sale of Domestic
Real Estate Property (Park Axis Esaka Hiroshibacho),” which distribution per unit is projected to be over 5%
difference compared to the previous forecast for period ending August 31, 2019 (27th period) noticed in April 17,
2019, NAF has revised its current forecast of financial results.
The revision reflects solely the effect on gain and loss caused by sale of Park Axis Esaka Hiroshibacho. Whilethe capital gain is expected to be approximately 941 million yen in total, NAF shall reserve partial amount ofapproximately 550 million yen.
Notes
1. The above forecasted figures are calculated under assumptions described in “The Preconditions of Forecast for the Financial Results for the 27thPeriod (from March 1, 2019 to August 31, 2019)”. Actual total revenues, operating income, income before income taxes, net income anddistribution per unit may vary due to future acquisitions or sale of properties, changes in the real estate market and other changes in theenvironment in which NAF operates. In addition, these forecasts do not guarantee the distribution amount.
2. A forecast revision shall be performed if significant deviation from above forecast is expected.
3. All amounts less than a single unit has been disregarded. Percentages were rounded to one decimal place.

NAF website: http://www.naf-r.jp/english/index.html

【Attachement】
The Preconditions of Forecast for the Financial Results for the 27th Period (from March 1, 2019 to August 31, 2019)
Items

Conditions

Number of operating days

From March 1, 2019 to August 31, 2019 (184 days)
In the forecast of investment performance, the number of properties is 126 owned by
NAF after sale of Park Axis Esaka Hiroshibacho as of the date of this document. It is
assumed that no subsequent transfer of properties (such as acquisition of newproperties, sale of properties acquired, etc.) shall occur until end of August 31, 2019.
From Park Axis Esaka Hiroshibacho, which was sold today, approx. ¥941 million ingain on sale of investment properties is anticipated.
The average month-end occupancy rates during the 27th period for total properties isexpected to be 97.3％.
The following expenses are assumed.
(in millions of yen)
27th period
Fixed property taxes and urban planning taxes
605
Depreciation and amortization
2,022Interest expense, etc.
474

Investment Assets

Expenses

It is assumed that NAF’s balance of interest-bearing debt that is ¥154,500 million shallnot change until August 31, 2019.
We assume 484,522 units outstanding as of the date of this document.
Number of units issuedIt is assumed that there shall be no issuance of new units until August 31, 2019.
Regarding the gain from transfer of Park Axis Esaka Hiroshibacho, in order tostrengthen its financial position, NAF plans to internally retain approx. ¥550 million byimplementing a reduction entry utilizing the “Special Provisions for Taxation in the
Event of Advance Acquisition of Land, etc. in 2009 and 2010.”
The above forecasted figures are calculated based on certain assumptions at theDistribution per unit
time of preparation of this information. Therefore, actual total revenues, operating
income, income before income taxes, net income and distribution per unit may
change due to future acquisition or sale of investment assets, fluctuation in the realestate market or other changes in the environment in which NAF operates.
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 Japaneseoriginal shall prevail.
Interest-bearing debt-