[For Translation Purposes Only]
February 1, 2018
For Immediate Release
To Whom It May Concern
Nomura Real Estate Master Fund, Inc.
Securities Code: 3462
Shuhei Yoshida, Executive Director
Asset Management Company:
Nomura Real Estate Asset Management Co., Ltd.
Norio Ambe, President & Chief Executive Officer
Inquiries:
Ken Okada
Director and Managing Executive Officer
TEL. +81-3-3365-8767 nmf3462@nomura-re.co.jp

Notice Concerning Forecasts of Financial Results
for the Fiscal Period Ending August 31, 2018 and February 28, 2019
Nomura Real Estate Master Fund, Inc. (“NMF” or “Nomura Master Fund” or the “Fund”) announced its forecasts ofthe financial results and distributions for the fiscal period ending August 31, 2018 (6th fiscal period: from March 1, 2018 toAugust 31, 2018) and February 28, 2019 ( 7th fiscal period: from September 1, 2018 to February 28, 2019).
There is no change in the forecasts of financial results for the fiscal period ending February 28, 2018 (5th fiscal period:
from September 1 , 2017 to February 28, 2018) in the Summary of Financial Results (REIT) for the 4th Fiscal Period Ending
August 31, 2017 released on October 13, 2017.

Fiscal period
endingAugust 31,
2018 ( 6thfiscal period
Fiscal period
endingFebruary 28,
2019 ( 7thfiscal period

Total
Distributions
Per Unit(Including
Distribution in
Excess of Net
Income)(Yen)

Operating
Revenues(Millions of
Yen)

Operating Profit(Millions ofYen)

Ordinary
Income(Millions of
Yen)

Net Income(Millions ofYen)

Distribution Per
Unit (Excluding
Distribution in
Excess of Net
Income)(Yen)

34,605

13,251

10,68910,688

2,471

609

3,080

34,42913,281

10,78010,779

2,493

607

3,100

Distribution in
Excess of Net
Income Per Unit
(Yen)

(Reference)
Anticipated total number of investment units as of August 31, 2018: 4,321,800 units
Note: This press release is a public announcement concerning the forecasts of financial results for the fiscal period ending August 31, 2018
and February 28, 2019 and has not been prepared for the purpose of solicitation of investment. We caution readers to refer to theFund’s Offering Circular for the Issuance of New Investment Units and Secondary Offering and the Notices of Amendments thereto(if any) and to undertake investment decisions at their own judgement and responsibility. In addition, this press release does notconstitute an offer of securities in the United States of America. The securities referred to above have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”). The securities may not be offered orsold in the United States absent registration or an exemption from registration under the Securities Act. The securities referred toabove will not be publicly offered or sold in the United States.

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Anticipated net income per unit as of August 31, 2018: 2,473yen
Anticipated total number of investment units as of February 28, 2019: 4,321,800units
Anticipated net income per unit as of February 28, 2019: 2,494 yen
For details, please refer to the item of Investment units on Assumptions for Forecasts of the Financial Results for the
Fiscal Period Ending August 31st, 2018 (6th fiscal period: from March 1, 2018 to August 31, 2018) and February 28, 2019
( 7th fiscal period: from September 1, 2018 to February 28, 2019) attached as the Exhibit in the following.
[Notes]1.

2.
3.

The forecasts presented in this document are calculated as of today, based on the assumptions set forth in the attached Assumptions
for Forecasts of the Financial Results for the Fiscal Period Ending August 31st, 2018 (6th fiscal period: from March 1 , 2018 to August
31, 2018) and February 28, 2019 ( 7th fiscal period: from September 1, 2018 to February 28, 2019) as an exhibit. The actual operating
revenues, operating profit, ordinary income, net income, distributions per unit or other items may differ due to future acquisition or
disposition of properties, changes in the real estate market and other factors affecting NMF. NMF does not guarantee the amount ofcash distribution stated above.
The forecasts may be revised if a certain variance from the forecasts mentioned above is expected.
Amounts less than the stated units are rounded down. The figures displayed as ratio are rounded to the first decimal place.

*Nomura Real Estate Master Fund, Inc. URL: http://www.nre-mf.co.jp/en/

Note: This press release is a public announcement concerning the forecasts of financial results for the fiscal period ending August 31, 2018
and February 28, 2019 and has not been prepared for the purpose of solicitation of investment. We caution readers to refer to theFund’s Offering Circular for the Issuance of New Investment Units and Secondary Offering and the Notices of Amendments thereto(if any) and to undertake investment decisions at their own judgement and responsibility. In addition, this press release does notconstitute an offer of securities in the United States of America. The securities referred to above have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”). The securities may not be offered orsold in the United States absent registration or an exemption from registration under the Securities Act. The securities referred toabove will not be publicly offered or sold in the United States.

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[Exhibit]

Assumptions for Forecasts of the Financial Results for
the Fiscal Period Ending August 31st, 2018 (6th fiscal period: from March 1, 2018 to August 31, 2018) andFebruary 28, 2019 (7th fiscal period: from September 1, 2018 to February 28, 2019)
Item

Assumptions

 6th Fiscal Period: March 1, 2018 to August 31, 2018
 7th Fiscal Period: September 1, 2018 to February 28, 2019
 In addition to properties held by the Fund as of the date hereof (271 properties)(the “Acquired Assets”), it is assumed that the Fund will acquire 10 properties by theend of the Fiscal Period Ending August 31, 2018 (6th Fiscal Period).
 Regarding the 10 properties to be acquired as announced in the “Notice Concerning
Property Acquisition and Commencement of Asset Management in New Sector”
dated December 19, 2017 and in the “Notice Concerning Acquisition of Assets” asof the date hereof, it is assumed that, (i) Landport Hachioji II and Landport
Iwatsuki will be acquired on March 1, 2018; (ii) Watermark Hotel Sapporo will beacquired on March 5, 2018; and (iii) PMO Nihonbashi Mitsukoshi-mae, PMO
Assets under
Shibadaimon, PROUD FLAT Sangenjaya II, PROUD FLAT Soto Kanda, PROUDManagement
FLAT Noborito, PROUD FLAT Yoyogi Hachiman and PROUD FLAT Nakaochiai
will be acquired on April 2, 2018, respectively (those 10 properties are hereinaftercollectively referred to as the “Assets to be Acquired”).
 The forecasts are based on the assumption that the Assets to be Acquired arerespectively acquired at the above-mentioned dates and that there will be no otherchanges in assets under management (new property acquisitions or sales of portfolio
properties) through the end of the Fiscal Period Ending February 28, 2019 (7thFiscal Period).
 The forecasts may be affected due to actual changes in the portfolio or other reasons.
 The rental revenues are estimated based on the operating revenues from theAcquired Assets, the information provided from the sellers of the Assets to beOperating Revenues
Acquired, the tenant trends, competitive properties located in adjacent areas, and thereal estate market conditions, among other factors, and it is assumed that there are
no arrears and non-payment by tenants.
 Real estate rental expenses are estimated to be ¥15,032 million for the Fiscal PeriodEnding August 31, 2018 (6th Fiscal Period) and ¥14,814 million for the Fiscal PeriodEnding February 28, 2019 (7th Fiscal Period).
 Regarding property and other taxes, it is estimated that ¥2,809 million for the Fiscal
Period Ending August 31, 2018 (6th Fiscal Period) and ¥2,799 million for the Fiscal
Period Ending February 28, 2019 (7th Fiscal Period) will be recorded as real estate
Operating Expenses
rental expenses. In general, the fixed asset taxes and urban planning taxes that will be(excluding Amortization of
imposed, relevant to the year in which such properties will be acquired, will be divided
between the seller and the purchaser on a pro-rata basis based on holding period andGoodwill)
settled at the time of acquisition, and such taxes are deemed as acquisition costs and,are not included in the expenses. Therefore, the fixed asset taxes and urban planningtaxes regarding the Assets to be Acquired will not be recorded as expenses for the
Fiscal Period Ending August 31, 2018 (6th Fiscal Period) and the Fiscal Period Ending
February 28, 2019 (7th Fiscal Period).
 Regarding property management costs (including building management fees andPeriodNote: This press release is a public announcement concerning the forecasts of financial results for the fiscal period ending August 31, 2018
and February 28, 2019 and has not been prepared for the purpose of solicitation of investment. We caution readers to refer to theFund’s Offering Circular for the Issuance of New Investment Units and Secondary Offering and the Notices of Amendments thereto(if any) and to undertake investment decisions at their own judgement and responsibility. In addition, this press release does notconstitute an offer of securities in the United States of America. The securities referred to above have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”). The securities may not be offered orsold in the United States absent registration or an exemption from registration under the Securities Act. The securities referred toabove will not be publicly offered or sold in the United States.

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Item

Assumptions








Amortization of
Goodwill
Non-operating
ExpensesInterest-bearing
Liabilities

property management fees), it is estimated that ¥3,026 million for the Fiscal PeriodEnding August 31, 2018 (6th Fiscal Period) and ¥3,015 million for the Fiscal PeriodEnding February 28, 2019 (7th Fiscal Period) will be recorded as real estate rental
expenses.
Expenses for repairs and maintenance required for each fiscal period expected to berecorded as real estate rental expenses are calculated based on the mid-to-long term
repair plans that the Asset Management Company of the Fund has established.
However, the actual expenses for the repairs and maintenance for the relevant fiscal
period may differ significantly from the estimates due to the expenses for urgent repairof damages to a building caused by events difficult to foresee and the tendency forsignificant fluctuation in amounts period by period or that the expenses for certain
types of repair are not required periodically.
Regarding depreciation, it is estimated that ¥4,892 million for the Fiscal Period Ending
August 31, 2018 (6th Fiscal Period) and ¥4,879 million for the Fiscal Period Ending
February 28, 2019 (7th Fiscal Period) will be recorded as real estate rental expenses.
It is estimated that other operating expenses (including fees payable to the AssetManagement Company, the custodian of assets and the general administrators) will be¥3,700 million for the Fiscal Period Ending August 31, 2018 (6th Fiscal Period) and¥3,711 million for the Fiscal Period Ending February 28, 2019 (7th Fiscal Period).
Goodwill will be amortized using the straight-line method over 20 years on a regularbasis pursuant to the Business Combination Accounting Standards, and the amount ofamortization of goodwill for both Fiscal Period Ending August 31, 2018 (6th Fiscal
Period) and the Fiscal Period Ending February 28, 2019 (7th Fiscal Period) is estimatedto be ¥2,622 million.
Goodwill amortization cost is an item that causes difference between accounting andtax treatment and may result in the imposition of corporation tax or other taxes. The
Fund intends to make distributions in excess of net income for the purpose of tax
relief during the goodwill amortization period, and it is expected that the Fund will beable to avoid such taxation.
Temporary expenses estimated to be ¥20 million for the Fiscal Period Ending
August 31, 2018 (6th Fiscal Period) is expected to be recorded in relation to theissuance of new investment units (the “Issuance”) determined at the board of
directors meeting held on February 1, 2018. In addition, interest expenses andother borrowing related expenses are expected to be ¥2,532 million for the Fiscal
Period Ending August 31, 2018 (6th Fiscal Period) and ¥2,490 million for the Fiscal
Period Ending February 28, 2019 (7th Fiscal Period).
As of the date hereof, the outstanding interest-bearing liabilities of the Fund are¥486,719 million, consisting of the amount of ¥466,219 million of outstanding
borrowings and the amount of ¥20,500 million of investment corporation bonds.
The Fund will conduct new borrowings (¥11,000 million) in April 2018, for a part of
the funds for the acquisition of the Asset to be Acquired. Regarding the borrowingsof ¥37,839 million that will become due and payable by the end of the Fiscal PeriodEnding August 31, 2018 (6th Fiscal Period) and the borrowings of ¥28,417 million
that will become due and payable during the Fiscal Period Ending February 28, 2019
(7th Fiscal Period), it is assumed that the Fund will repay ¥21million by using cash on
hand in the Fiscal Period Ending February 28, 2018 (5th Fiscal Period) and ¥42 million
by using cash on hand in the Fiscal Period Ending August 31, 2018 (6th Fiscal Period)

Note: This press release is a public announcement concerning the forecasts of financial results for the fiscal period ending August 31, 2018
and February 28, 2019 and has not been prepared for the purpose of solicitation of investment. We caution readers to refer to theFund’s Offering Circular for the Issuance of New Investment Units and Secondary Offering and the Notices of Amendments thereto(if any) and to undertake investment decisions at their own judgement and responsibility. In addition, this press release does notconstitute an offer of securities in the United States of America. The securities referred to above have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”). The securities may not be offered orsold in the United States absent registration or an exemption from registration under the Securities Act. The securities referred toabove will not be publicly offered or sold in the United States.

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Item

Assumptions

Investment Units







Distributions per Unit







Distribution per unit inexcess of earnings perunit

and in the Fiscal Period Ending February 28, 2019 (7th Fiscal Period) respectively, andrefinance the remaining amount through borrowings.
It is assumed that there will be no changes in the amount of the outstanding interestbearing liabilities, other than as stated above. However, the above-mentioned amountof the borrowings or the amount of repayment thereof may change depending on theissue price, etc. of the investment units to be issued this time.
It is assumed that, in addition to the 4,183,130 investment units issued and outstanding
as of the date hereof, the additional issuance of the investment units through the public
offering (132,000 investment units) and the additional issuance of the investment units
through the third party allotment (up to 6,670 investment units) totaling 138,670
investment units will all be issued through the Issuance.
Other than the above, it is assumed that no additional investment units will be issued
through the end of the Fiscal Period Ending February 28, 2019 (7th Fiscal Period).
Net income per unit and distribution per unit are calculated on the basis of 4,321,800
investment units assumed to be issued and outstanding at the end of each fiscal period,
including the investment units to be issued this time.
Distribution per unit is calculated in accordance with the Fund’s distribution policy
outlined in its Articles of Incorporation.
In respect of the allowance for temporary difference adjustments (the “ATA”) accrued
so far, it is assumed that the amount to be eliminated of ¥5 million for the Fiscal PeriodEnding August 31, 2018 (6th Fiscal Period) and the amount to be eliminated of ¥5
million for the Fiscal Period Ending February 28, 2019 (7th Fiscal Period) are reversed
from the unappropriated retained earnings in the 6th Fiscal Period and the 7th Fiscal
Period, respectively.
It is assumed that there will be no change in the deferred loss on the hedge of theinterest rate swap in respect of its transactions in the amount of ¥1,524 million
ongoing since the Fiscal Period Ending August 31, 2017 (4th Fiscal Period) as thevaluation and conversion adjustments, etc. for the Fiscal Period Ending August 31,
2018 (6th Fiscal Period) and the Fiscal Period Ending February 28, 2019 (7th Fiscal
Period). The distribution per unit (excluding the distribution in excess of net income)is calculated by deducting said amounts from the distributable amount.
Distribution per unit may vary due to various factors, including changes in theinvestment portfolio, changes in rent income caused by tenant replacements, andunforeseen repairs.
The amount of distribution in excess of net income is estimated on the assumption
NMF will distribute the amount of valuation and translation adjustments deductedfrom the total difference between accounting and tax treatment and the distributableamount as ATA for the purpose of tax relief. The estimate is based on the assumption
that, in order to alleviate the impact on distributions of the amortization of goodwill
and other merger-related expenses (the “Merger Expenses”) and the reversal of ATA,
if the total difference between accounting and tax treatment and for the relevant fiscal
period is less than the sum of the Merger Expenses and the reversal of allowance fortemporary difference adjustments, NMF will make other distributions in excess of net
income in an amount not exceeding this difference and within the limit prescribed by
the regulations of the Investment Trusts Association, Japan (the “Investment Trusts
Association Japan Regulations”) (the amount equivalent to 60/100 of the total amountof accumulated depreciation recorded as of the end of the relevant fiscal period lessNote: This press release is a public announcement concerning the forecasts of financial results for the fiscal period ending August 31, 2018
and February 28, 2019 and has not been prepared for the purpose of solicitation of investment. We caution readers to refer to theFund’s Offering Circular for the Issuance of New Investment Units and Secondary Offering and the Notices of Amendments thereto(if any) and to undertake investment decisions at their own judgement and responsibility. In addition, this press release does notconstitute an offer of securities in the United States of America. The securities referred to above have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”). The securities may not be offered orsold in the United States absent registration or an exemption from registration under the Securities Act. The securities referred toabove will not be publicly offered or sold in the United States.

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Item

Other

Assumptions
the total amount of accumulated depreciation recorded as of the end of theimmediately preceding fiscal period).
 The distribution in excess of net earnings per unit for the 6th fiscal period is expected
to be ¥609, comprising ¥312 in distributions of ATA and ¥297 in other distributions
in excess of net earnings. The distribution in excess of net earnings per unit for the
7th fiscal period is expected to be ¥607, comprising ¥347 in distributions of ATA and¥260 in other distributions in excess of net earnings.
 It is assumed that there will be no amendments in legislation, taxation, accounting
principles, listing requirements, the regulations of the Investment Trusts Association,
Japan or other laws or regulations that would affect the above forecasts.
 It is assumed that there will be no unexpected material changes in general economic
conditions and real estate markets.

Note: This press release is a public announcement concerning the forecasts of financial results for the fiscal period ending August 31, 2018
and February 28, 2019 and has not been prepared for the purpose of solicitation of investment. We caution readers to refer to theFund’s Offering Circular for the Issuance of New Investment Units and Secondary Offering and the Notices of Amendments thereto(if any) and to undertake investment decisions at their own judgement and responsibility. In addition, this press release does notconstitute an offer of securities in the United States of America. The securities referred to above have not been, and will not beregistered under the United States Securities Act of 1933, as amended (the “Securities Act”). The securities may not be offered orsold in the United States absent registration or an exemption from registration under the Securities Act. The securities referred toabove will not be publicly offered or sold in the United States.

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