(Reference) SUMMARY OF FINANCIAL RESULTS (REIT)
For the 7th Fiscal Period Ended February 28, 2019
April 12, 2019
REIT securities issuer:
Securities code:
Representative:

Nomura Real Estate Master Fund, Inc. (“NMF”)
3462
Shuhei Yoshida, Executive Director

Asset management company:
Representative:
Inquiries:

Nomura Real Estate Asset Management Co., Ltd.
Norio Ambe, President and Chief Executive Officer
Hiroshi Ishigooka, Head of NMF Investment Management Group

Scheduled date of filing of securities report:
Scheduled date of commencement of distribution payout:
Preparation of supplementary materials on financial results:
Holding of briefing session on financial results:

Stock exchange listing: Tokyo Stock Exchange
URL: https://www.nre-mf.co.jp/en/

TEL: +81-3-3365-8767

May 29, 2019
May 17, 2019
Yes
Yes (for institutional investors and analysts)[Amounts less than one million yen are truncated]

1. Financial Results for the 7th Fiscal Period (from September 1, 2018 to February 28, 2019)(1) Operating Results[ % figures are the rate of increase (decrease) compared with the previous period]
Operating revenues
Period ended
February 28, 2019
August 31, 2018

million yen
35,42834,731

Operating profit
%
2.0
1.5

Net income
per unit
Period ended
February 28, 2019
August 31, 2018

million yen
14,056
13,285

Ordinary income
%
5.8
0.6

Return on unitholders’equityyen

million yen
11,516
10,755%7.1
0.4

Ratio ofordinary income
to total assets

%

2,675
2,478

Net income%

million yen
11,56010,7097.9(0.0)

Ratio ofordinary income
to operating revenues
%

2.0
1.9

%

1.0
1.0

32.5
31.0

(2) Distributions

Period ended
February 28, 2019
August 31, 2018

Distribution
per unit(excluding
distribution
in excess of net
income)Total
distributions(excluding
distribution
in excess of
net income)

yen
2,623
2,478

million yen
11,336
10,709Distribution
in excess of
net income per
unit

Total
distributions
in excess of
net income

yenmillion yen
2,182
2,619

505
606

Distribution
per unit(including
distribution inexcess of net
income)Total
distributions(including
distribution
in excess of
net income)

3,128
3,084

million yen
13,51813,328yen

Distribution
payout ratio

Ratio ofdistributions to
net assets

%
98.0
99.9

%
1.9
1.8

(Note 1) Of the ¥606 distribution in excess of net income per unit in the fiscal period ended August 31, 2018, ¥306 is a distribution of the allowance fortemporary difference adjustments and ¥300 is other distributions in excess of net income . Furthermore, the ratio of decreasing surplus is 0.003.
Of the ¥505 distribution in excess of net income per unit in the fiscal period ended February 28, 2019, ¥361 is a distribution of the allowance fortemporary difference adjustments and ¥144 is other distributions in excess of net income (see 2. Management Policy and Management Status, (2)Management Status, D. Business Performance and Distributions, below). Furthermore, the ratio of decreasing surplus is 0.002.
(Note 2) Distribution Payout Ratio is calculated using the below formula and truncated at the first decimal place.
Distribution Payout Ratio = Total Distributions (excluding distribution in excess of Net Income) / Net Income × 100(Note 3) Ratio of Distributions to Net Assets is calculated using the below formula and truncated at the first decimal place.
Ratio of Distributions to Net Assets = Distribution Per Unit (excluding distribution in excess of Net Income) / {(Net Assets per Unit at the
beginning of the fiscal period + Net Assets per Unit at the end of the fiscal period) / 2} × 100(3) Financial Position
Total assets
Period ended
February 28, 2019
August 31, 2018

million yen
1,117,851
1,118,644

Net assets
million yen
569,843571,836

Net assets to total assets

Net assets per unit

%
51.0
51.1

yen
131,853
132,314(4) Status of Cash FlowsNet cashprovided by (used in)operating activities
Period ended
February 28, 2019
August 31, 2018

Net cashprovided by (used in)investing activities

million yen
24,256
17,570

million yen(11,217)(36,129)

Net cashprovided by (used in)financing activities

Cash andcash equivalents
at end of period

million yen(13,383)
16,579million yen
74,21274,556

2. Earnings Forecasts for the 7th Fiscal Period (from March 1, 2019 to August 31, 2019)[% figures are the ratio of increase (decrease) compared with the previous period]
Distribution
per unit

Operating revenues

Operating profit

Ordinary income(excluding
distribution
in excess of
net income)Net income

Periodmillionmillionmillionmillion%%%ending
yen
yen
yen
yen
August 31,
36,394
2.7
14,1720.8
11,562
0.4
11,561
2019(Reference) Forecast net income per unit for the fiscal period ending August 31, 2019 is ¥2,542.

Distribution
in excess of
net income
per unit

Distribution
per unit(including
distribution
in excess of net
income)

%

yen

yen

yen

0.0

2,541

641

3,182

*Other(1) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatements① Changes in accounting policies accompanying amendments to accounting standards, etc.:② Changes in accounting policies other than those in ①:③ Changes in accounting estimates:④ Retrospective restatements:

None
None
None
None

(2) Number of Investment Units Issued and Treasury Investment Units① Number of investment units issued (including treasury investment units)
As of February 28, 2019:
4,321,800 units
As of August 31, 2018:
4,321,800 units② Number of treasury investment units
As of February 28, 2019:– units
As of August 31, 2018:– units(Note) For the number of investment units used as the basis for calculation of net income per unit, please refer to“Notes on Per Unit Information” on page 34.
* Status of audit procedure implementation
At the time of the disclosure of this document, audit procedures for financial statements pursuant to the
Financial Instruments and Exchange Act (Act No. 25 of 1948, including subsequent amendments) have notbeen completed.
* Forward-looking statements
The earnings forecasts and other forward-looking statements contained in this document are based on
information currently available to and certain assumptions deemed reasonable by NMF. Accordingly, actual
earnings performance and other results may differ materially due to a variety of factors. Furthermore, suchforward-looking statements do not constitute a guarantee of future distributions. For more information on
the assumptions underlying forward-looking statements and the use of such statements, please refer to“Assumptions Underlying Earnings Forecasts for the Fiscal Period Ending August 31, 2019 (8th fiscal period:
March 31, 2019 to August 31, 2019) and the Fiscal Period Ending February 29, 2020 (9th fiscal period:
September 1, 2019 to February 29, 2020)” on page 10.

This is an English language translation of the original Japanese announcement of the financial statements(“Kessan Tanshin”). This translation is provided for information purpose only. Should there be any discrepancy
between this translation and the Japanese original, the Japanese original shall prevail.

Attachment

Table of Contents
1.

Related Corporations of the Investment Corporation ............................................ 22.

Management Policy and Management Status ................................................... 2(1) Management Policy ..................................................................... 2(2) Management Status ..................................................................... 2

3.

Financial Statements .................................................................... 13(1) Balance Sheet ......................................................................... 13(2) Statement of Income and Retained Earnings ................................................. 16(3) Statement of Changes in Net Assets ........................................................ 17(4) Statement of Cash Distributions ........................................................... 21(5) Statement of Cash Flows ................................................................ 23(6) Notes Concerning the Going Concern Assumption ............................................ 25(7) Notes Concerning Significant Accounting Policies ............................................. 25(8) Notes to Financial Statements ............................................................ 26(9)Increase (Decrease) in Total Number of Investment Units Issued and Outstanding .................... 36

4. Changes in Directors ...................................................................... 37(1) Changes in NMF Directors .............................................................. 37(2) Changes in Asset Management Company Directors ............................................ 37
5. Reference Information ..................................................................... 38(1) Investment Status ...................................................................... 39(2) Investment Assets ..................................................................... 40

1

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

1. Related Corporations of the Investment Corporation

Disclosure is omitted because there are no significant changes from the information presented under“Structure of the Investment Corporation” in the most recently published securities report filed on
November 29, 2018.

2. Management Policy and Management Status(1) Management Policy

Disclosure is omitted, since there are no significant changes from the “Investment Policy”, “Investment
Targets” and “Distribution Policy” presented in the securities report filed on November 29, 2018.

(2) Management Status① Outline of Fiscal Period under Review
NMF’s basic policy is to manage its assets mainly as investments in real estate, etc. (meaning the assets
specified in the Ordinance for Enforcement of the Act on Investment Trusts and Investment Corporations(Prime Minister’s Office Ordinance No. 129 of 2000, including subsequent amendments)), specifically realestate, leaseholds of real estate, surface rights, and the beneficial interests of trusts formed by entrustmentof only these assets, to secure stable income over the medium to long term and steady growth of assets
under management (Note). In order to realize this basic policy, NMF adopts an investment strategy that centerson the Greater Tokyo area (Tokyo, Kanagawa, Chiba and Saitama prefectures), which offers strong tenant
demand, while also considering regional diversification through investment in all of Japan’s three major
metropolitan areas and other major cities. By combining the “diversified type strategy,” in which investments
are made in a variety of facilities, such as offices, retail facilities, logistics facilities, residential facilities andother facilities with the “large-scale REIT strategy,” which increases portfolio stability through property andtenant diversification, as well as the “leasing value chain” with the Sponsor, Nomura Real Estate
Development Co. Ltd. which is one of the group company of the Nomura Real Estate Group (Nomura Real
Estate Holdings, Inc. and its consolidated subsidiaries etc. The same shall apply hereinafter.), NMF aims toincrease unitholder value by securing stable income over the medium to long term and the steady growth ofassets under management.
(Note)

Throughout this document, “assets under management” refers to assets that belong to NMF.
Furthermore, “Real estate, etc.” refers to assets defined in Article 29, Paragraph 1 (1) or (2) of NMF’s Articles ofIncorporation, and “real estate backed securities” refers to assets defined in Article 29, Paragraph 1 (3) of NMF’s
Articles of Incorporation (“Real estate, etc.” and “real estate-backed securities” are hereinafter collectively referred
to as “real estate-related assets”). Real estate and the underlying real estate of real estate-related assets are together
referred to as the “real estate under management” or “properties.”

A. Investment Environment
The Japanese economy faces increasing uncertainty concerning future corporate performance as exports
weaken in the wake of U.S.-China trade friction and slowdown of the Chinese economy.
In the J-REIT market, the Tokyo Stock Exchange’s REIT index in February 2019 remained solid, sittingin the range of 1,800 points throughout the month for the first time since January 2017 and backed by thestrong real estate leasing market as well as the ongoing monetary easing policy.
With regard to the office market, vacancy rates remained low in Tokyo. In addition, rents continued togradually climb due to strong demand for increased floor space and expansion-driven relocations. Leasing oflarge buildings scheduled to be completed in 2019 has been progressing smoothly, and new vacancies createdby tenants moving out have little impact. Major cities in less populated regions, where new supply is more
limited, have seen vacancy rates remain low and rents continuing to trend upward.
In the retail facility market, private-sector consumption continued to be sluggish and retailers, especiallythose handling clothing, struggled. In addition, the retail districts of major cities which had been strong saw
trends such as a decrease in sales of high-end items at department stores due to regulations on online sales ofimported goods and the economic slowdown in China. However, with the continuing upward trend in thenumber of foreign visitors to Japan, some say the impact of the regulations on the future course is limited.
2

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

In the logistics facility market, overall performance has been stable, buoyed by firm demand from online
shopping outlets and third-party logistics providers (Note), NMF’s main logistics facility tenants. In the greater
Tokyo area, a large supply of logistics facilities has continued, leading to our forecast of a temporary rise in
the vacancy rate. However, the vacancy rate is likely to soon be improved due to persistent demand.
(Note) Third-party logistics (3PL) refers to logistics services outsourced by shippers for part or all of theirlogistics functions.

Concerning the rental apartment market, in the Greater Tokyo area, a net population inflow and adwindling supply of apartments have resulted in consistently high occupancy rates as well as moderateincrease in rents. Performance in major cities in less populated regions remained steady overall as well.
In the hotel market, occupancy rates and revenue per available room (RevPAR) were steady overall in thegreater Tokyo area and other major urban areas due to the number of foreign visitors, continuing to mark thehighest.
In the real estate transaction market, under the ongoing ultra-low interest rate policy, investors continued
to lean towards acquiring business real estate as an effective investment vehicle, ramping up competition for
acquisitions and keeping selling prices high.
B. Management Performance
Under the circumstances described above in A. Investment Environment, during the fiscal period underreview (the 7th fiscal period), NMF acquired 2 properties (NMF Kobe Myodani Building and Serenite
Shinsaibashi Grande; total acquisition price: ¥9,127 million), and sold 5 properties (PRIME URBAN Esaka I,
PRIME URBAN Esaka II, PRIME URBAN Esaka III, PRIME URBAN Tamatsukuri and PRIME URBAN
Chikusa; total sale price: ¥5,347 million). As a result, at the end of the fiscal period under review (February
28, 2019), NMF held 278 properties (total acquisition price: ¥960,345 million), the ratio of investment in the
Greater Tokyo area was 81.8%, the gross leasable area of the portfolio was 1,878,805.81m2 , and the portfolio
remained highly diversified.
After the close of the fiscal period under review, NMF acquired 9 properties (PMO Tamachi Higashi,
PMO Hatchobori Shinkawa, PMO Kyobashi Higashi, GEMS Shinbashi, GEMS Kayabacho, Summit Store
Honamanuma, GEMS Shin-Yokohama, GEMS Namba and Landport Ome I; total acquisition price: ¥44,409
million) on March 1, 2019, and 1 property (PMO Ochanomizu; acquisition price: ¥3,890 million) on April 1,
2019 by carrying out a public offering and debt financings
In terms of property and facility management, as described above in A. Investment Environment, rental
demand is expanding, backed by the gradual recovery of the Japanese economy. Accordingly, the occupancy
rate of the entire portfolio as of the end of the fiscal period under review was stable and high, at 99.3%. In
the office sector, a key upside sector (Note 1), the rental market has seen particularly notable recovery, with rises
in newly advertised rents and successful rent increases upon contract renewal driving the internal growth ofthe portfolio as a whole.
NMF is striving to minimize environmental burdens attributable to its portfolio. NMF therefore engages
in investment in environmentally friendly properties while working to enhance the efficiency of its energy use
by, for example, introducing eco-friendly and energy-saving countermeasures at its properties. Based on suchpolicy, NMF promotes acquisition of DBJ Green Building certification and BELS certification by its
properties. As of the end of the fiscal period under review, NMF has acquired DBJ Green Building
certification for a total of 48 properties while acquiring BELS certification for a total of 19 properties. The
percentage (Note 2) of properties with DBJ Green Building certification stands at 56.0% and that of properties
with BELS certification at 19.6%.
(Note1) Upside sectors refer to sectors for which an increase of rental revenue can be expected, in particular offices, retail facilities instation areas and hotels. The same shall apply hereinafter.
(Note 2) The percentage figures of the certified properties are calculated based on total floor areas for properties excluding land owned by
NMF.

C. Status of Fund Procurement
During the fiscal period under review, NMF refinanced ¥28,375 million in interest-bearing liabilities withmaturities. As a result, the balance of interest-bearing liabilities at the end of the fiscal period under review
3Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019was ¥497,112 million, and the ratio of interest-bearing liabilities to total assets (LTV) was 44.5%.
NMF's ratings at the end of the fiscal period under review are shown below. These ratings do not
represent judgments on NMF investment units. Concerning NMF investment units, there are no credit
ratings that credit rating agencies have provided or made available for inspection, nor are there credit ratings
that credit rating agencies are scheduled to provide or make available for inspection at the request of NMF.
Credit rating agency

Rating description

Note

Japan Credit Rating Agency, Ltd. (JCR)

Long-term issuer rating:AA

Rating outlook:

StableRating and Investment Information, Inc.
(R&I)

Issuer rating:A+

Rating outlook:

StableLong-term Issuer rating:A

Rating outlook:

StableShort-term Issuer rating

A-1

S&P Global Ratings Japan Inc. (S&P)

D. Business Performance and Distributions
In the 7th fiscal period, operating revenues totaled ¥35,428 million, operating profit reached¥14,056 million, ordinary income totaled ¥11,516 million, and net income came to ¥11,560 million.
NMF calculates cash distributions in accordance with the cash distribution policies specified in Article
36, Paragraph 1 and Paragraph 2 of NMF’s Articles of Incorporation.
For the fiscal period under review, NMF decided to implement a total of ¥13,518 million in
distributions (¥3,128 per investment unit). This figure was arrived at by adding to ¥11,560 million in
net income after taxes ¥2,622 million in amortization of goodwill, subtracting ¥685 million in gain on
sales of real estate, and finally adding ¥23 million in loss on sale of real estate. The portion for which
per-unit distribution comprising the types of dividends laid out below would be less than ¥1 was
excluded.
Total distributions comprise distribution of earnings and distribution in excess of net income.
Distribution of earnings as stipulated in Article 136, Paragraph 1 of the Act on Investment Trusts andInvestment Corporations (Act No. 198 of 1951 as amended, hereinafter the Investment Trust Act)came to ¥11,336 million (¥2,623 per investment unit). Distribution in excess of net income comprises a
distribution of ¥1,560 million (¥361 per investment unit) as allowance for temporary difference
adjustment and ¥622 million (¥144 per investment unit) in other distribution in excess of net earnings.
②

Outlook for Next Fiscal Period
Under the conditions described above in A. Investment Environment, NMF will continue to target
external growth by leveraging the Nomura Real Estate Group's property development capabilities andinternal growth by making maximum use of the property management pipeline with a focus on
strengthening its property brands. By doing so, with both the external growth and the internal growth,
NMF aims to secure the growth of income and increase further unitholder value.

③

Significant Subsequent Events
Ａ．Issuance of New Investment Units
At the Board of Directors meetings held on February 7, 2019 and February 18, 2019, NMF resolved
to issue new investment units, as shown below. Payments for new investment units issued via a public
offering concluded on March 1, 2019, and payments for new investment units issued via third-party
allocation concluded on March 26, 2019. As a result, unitholders’ capital stands at ¥214,855,487
thousand, and the total number of investment units issued and outstanding is 4,547,300.
Issuance of New Investment Units through Public Offering (Primary Offering)Number of units offered
214,760 units
Issue price (offer price)¥150,223 per unit
Total issue price (total offer price)¥32,261,891,480
Amount to be paid (issue value)¥145,471 per unit
Total amount to be paid (total issue value)¥31,241,351,960
Payment date
March 1, 20194

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

Issuance of New Investment Units through Third-Party Allotment (Third-Party Allotment)
Number of investment units offered
10,740 units
Amount to be paid (issue value)¥145,471 per unit
Total amount to be paid (total issue value)¥1,562,358,540
Payment date
March 26, 2019
Allottee
Nomura Securities Co., Ltd.

Use of proceeds
The proceeds obtained from the Primary Offering were used as partial funds for the acquisition of
the 10 properties acquired on March 1, 2019 and April 1, 2019; and the proceeds obtained from theThird-party Allotment were used to repay loans taken out to fund part of the acquisition of the 10
properties.

5

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

(Reference)
A. Property acquisition
NMF decided to acquire the assets stated below on February 7, 2019, concluding the acquisition of
PMO Tamachi Higashi, PMO Hatchobori Shinkawa, PMO Kyobashi Higashi, GEMS Shinbashi,
GEMS Kayabacho, Summit Store Honamanuma, GEMS Shin-Yokohama, GEMS Namba and Lanport
Ome I on March 1, 2019 and PMO Ochanomizu on April 1, 2019.
Property name

PMO Tamachi Higashi

PMO Hatchobori Shinkawa

Type of asset

Real estate

Real estate(Note 4)

Location (Note 1)（Registry）
4-210-9 Shiba, Minato Ward, Tokyo and 3other lots
（Street）
4-13-3 Shiba, Minato Ward, Tokyo（Registry）
2-1 Shinkawa, Chuo Ward, Tokyo（Street）
2-9-11 Shinkawa, Chuo Ward, Tokyo

Structure(Note 1)

S10F

S9F

Land area(Note 1)

965.44 m2 (Note 3)

830.08 m2 (Note 5)

Floor area (Note 1) 7,088.17 m2

5,000.86 m2 (Note 6)（Land）Ownership（Building）Ownership（Land）Right of site
（Building）Compartmentalized ownership

February 28, 2018

April 20, 2018¥10,900 million¥3,805 million

February 7, 2019
(Date of agreement on purchase and saleof real estate)
March 1, 2019
(Date of delivery of real estate)
Nomura Real Estate Development, Co.,Ltd.

February 7, 2019
(Date of agreement on purchase and sale ofreal estate)
March 1, 2019
(Date of delivery of real estate)
Nomura Real Estate Development, Co.,Ltd.

Property name

PMO Kyobashi Higashi

GEMS Shinbashi

Type of asset

Real estate

Real estate

Location (Note 1)（Registry）
3-6-3 Hatchobori, Chuo Ward, Tokyo（Street）
3-18-6 Hatchobori, Chuo Ward, Tokyo（Registry）
2-5-8 Shinbashi, Minato Ward, Tokyo（Street）
2-12-8 Shinbashi, Minato Ward, Tokyo

Structure (Note 1)

S10F

S, SRC B1F/9F

Land area (Note 1)

279.17 m2

261.08 m2

Floor area (Note 1) 2,051.35 m2

1,478.44 m2（Land）Ownership
Type of（Building）OwnershipownershipCompletion date
May 11, 2018
(Note 1)

（Land）Ownership（Building）Ownership

Type ofownershipCompletiondate(Note 1)
Acquisition
price (Note 2)
Date ofagreement
Date ofacquisition
SellerAcquisition
price (Note 2)

May 24, 2018

¥2,880 million¥2,810 million

6

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

February 7, 2019
(Date of agreement on purchase and saleof real estate)
March 1, 2019
(Date of delivery of real estate)
Nomura Real Estate Development, Co.,Ltd.

February 7, 2019
(Date of agreement on purchase and sale ofreal estate)
March 1, 2019
(Date of delivery of real estate)
Nomura Real Estate Development, Co.,Ltd.

Property nameGEMS Kayabacho

Summit Store Honamanuma

Type of asset

Real estate

Trust beneficiary interest in real estate（Registry）
1-9-1 Shinkawa, Chuo Ward, Tokyo and 1
other lot
（Street）
1-1-7 Shinkawa, Chuo Ward, Tokyo（Registry）
2-185-1 Honamanuma, Suginami Ward,
Tokyo（Street）
2-42-11 Honamanuma, Suginami Ward,
Tokyo

Structure (Note 1)

S10F

S3F

Land area (Note 1)

318.26 m2

1,831.00 m2

Floor area (Note 1) 1,779.29 m2

2,014.36 m2（Land）Ownership
Type of（Building）OwnershipownershipCompletion dateFebruary 13, 2018
(Note 1)

（Land）Ownership（Building）Ownership

Date ofagreement
Date ofacquisition
SellerLocation (Note 1)

September 4, 2018

Acquisition
price (Note 2)¥2,594 million¥2,160 million

Date ofagreement

February 7, 2019
(Date of agreement on purchase and saleof real estate)

Date ofacquisition

March 1, 2019
(Date of delivery of real estate)

Seller

Nomura Real Estate Development, Co.,Ltd.

February 7, 2019
(Date of agreement on purchase and sale oftrust beneficiary interests in real estate)
March 1, 2019
(Date of delivery of trust beneficiaryinterests in real estate )Nomura Real Estate Development, Co.,Ltd.

Property nameGEMS Shin-Yokohama

GEMS Namba

Type of asset

Real estate

Real estate（Registry）
2-5-17 Shin-Yokohama, Kohoku Ward,
Yokohama City, Kanagawa and 1 other lot（Street）
2-5-17 Shin-Yokohama, Kohoku Ward,
Yokohama City, Kanagawa and 1 other lot（Registry）
3-42-20 Namba, Chuo Ward, Osaka City,
Osaka（Street）
3-7-19 Namba, Chuo Ward, Osaka City,
Osaka

Location (Note 1)(Note 7)Structure (Note 1)

S B1F/10F

S, SRC B1F/13F

Land area (Note 1)

352.00 m2 (Note 8)

256.09 m2 (Note 9)

Floor area (Note 1) 1,777.40 m2
Type ofownership

2,421.83 m2（Land）Ownership（Building）Ownership（Land）Ownership（Building）Ownership
7

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

Completion date

May 11, 2018

November 30, 2018

¥1,820 million¥3,800 million

February 7, 2019
(Date of agreement on purchase and saleof real estate)
March 1, 2019
(Date of delivery of real estate)
Nomura Real Estate Development, Co.,Ltd.

February 7, 2019
(Date of agreement on purchase and sale ofreal estate)
March 1, 2019
(Date of delivery of real estate )Nomura Real Estate Development, Co.,Ltd.

Property nameLandport Ome I

PMO Ochanomizu

Type of asset

Real estate

Real estate（Registry）
2-9-1 Suehiro-cho, Ome City, Tokyo（Street）
2-9-1 Suehiro-cho, Ome City, Tokyo (Note 7)（Registry）
4-4-1 Kanda-Surugadai, Chiyoda Ward,
Tokyo and other 1 lot（Street）
4-4-1 Kanda-Surugadai, Chiyoda Ward,
Tokyo and other 1 lot (Note 7)

Structure (Note 1)

RC3F

S9F

Land area (Note 1)

39,391.90 m2

403.76 m2

Floor area (Note 1) 57,721.34 m2

2,670.12 m2（Land）Ownership
Type of（Building）OwnershipownershipCompletion dateNovember 30, 2018
(Note 1)

（Land）Ownership（Building）Ownership(Note 1)

Acquisition
price (Note 2)
Date ofagreement
Date ofacquisition
SellerLocation (Note 1)

Acquisition
price (Note 2)
Date ofagreement
Date ofacquisition
SellerJuly 31, 2018¥13,640 million¥3,890 million

February 7, 2019
(Date of agreement on purchase and saleof real estate)
March 1, 2019
(Date of delivery of real estate)
Nomura Real Estate Development, Co.,Ltd.

February 7, 2019
(Date of agreement on purchase and sale ofreal estate)
April 1, 2019
(Date of delivery of real estate )Nomura Real Estate Development, Co.,
Ltd.

(Note 1) Location (registry), Structure, Completion Date, and Land Area, Floor area are based on the information in the realestate registry.
(Note 2) The acquisition price stated is that given on the real estate sale contract (or the sale contract of trust beneficiaryinterests in real estate) and does not include acquisition-related costs (property and other taxes, etc.).
(Note 3) Includes the setback area (10.37 m2) to be deemed part of a road under Article 42, Paragraph 2 of the BuildingStandard Act (Act No.201 of 1950, as amended).
(Note 4) NMF acquired a part of the compartmentalized ownership of the building.
(Note 5) The land area is the total area of the entire building site, and the share of the right of site (co-ownership interest) is
625/1,000.
(Note 6) The floor area is the total area of the entire building. The exclusive area of the compartmentalized ownership
acquired by NMF is 2,533.55 m2.
(Note 7) As the street address is not indicated officially, the building location in the real estate registry is noted.
(Note 8) The floor area includes setback area (approximately 27.05 m2) pursuant to Shin-Yokohama north area urban
development consultation principles, etc.
(Note 9) The land area includes setback area (approximately 14.18 m2) pursuant to the Osaka Building Aesthetic
Guidance System.

8

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

B. Forecast of the Financial Results for the Fiscal Period Ending February 29, 2020 (9th fiscal period:
September 1, 2019 to February 29, 2020)
Forecast of the Financial Results for the Fiscal Period Ending February 29, 2020 (9th fiscal period:
September 1, 2019 to February 29, 2020) is stated below. Assumptions for Forecast of the Financial
Results for the Fiscal Period Ending February 29, 2020 (9th fiscal period: September 1, 2019 toFebruary 29, 2020) is referred to the following Assumptions Underlying Earnings Forecasts for the
Fiscal Period Ending August 31, 2019 (8th fiscal period: March 1, 2019 to August 31, 2019) and the
Fiscal Period Ending February 29, 2020 (9th fiscal period: September 1, 2019 to February 29, 2020).
Operating Revenues
Operating Profit
Ordinary Income
Net Income
Net Income Per Unit
Distribution Per Unit
(Excluding Distribution in Excess of Net Income)Distribution in Excess of Net Income Per Unit
Total Distributions Per Unit
(Including Distribution in Excess of Net Income)¥ 36,321 million¥ 14,434 million¥ 11,927 million¥ 11,926 million¥ 2,622¥ 2,622¥ 616¥ 3,238

C. Resolutions to Be Considered at the Second Unitholders’ Meeting
At the second General Meeting of Unitholders, scheduled for May 23, 2019, NMF plans topropose the election of one executive director and three supervisory directors. In addition, NMF plans
to propose partial amendments to the Articles of Incorporation to allow the change in calculation
method of asset management fee I to a monthly basis from a daily basis, and the implementation ofnecessary adjustments to other articles.

9Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

Assumptions Underlying Earnings Forecasts
for the Fiscal Period Ending August 31, 2019 (8th fiscal period: March 1, 2019 to August 31, 2019) andthe Fiscal Period Ending February 29, 2020 (9th fiscal period: September 1, 2019 to February 29, 2020)
Item

Assumptions

・ Fiscal period ending August 31, 2019 (8th fiscal period): March 1, 2019 to August 31,
2019
Calculation period・ Fiscal period ending February 29, 2020 (9th fiscal period): September 1, 2019 toFebruary 29, 2020
・ With respect to the 288 properties held by NMF as of this document’s publication, it isassumed that there will be no changes in assets under management (new property
acquisitions or sales of portfolio properties) through the end of the February 2020
Assets Under Management(9th) fiscal period.
・ The forecasts may be revised due to actual changes in the portfolio.
Operating revenues

・ Rental revenues are estimated based tenant trends, the presence of competing
properties nearby, real estate market conditions and other factors, with the assumptionthat there will be no delays in payment or failure to pay on the part of tenants.

Operating expenses(excluding amortization
expenses for goodwill)・ Real estate rental expenses are expected to be ¥15,720 million in the August 2019 (8th)fiscal period and ¥15,352 million in the February 2020 (9th) fiscal period.
・ It is estimated that property and other taxes of ¥2,927 million in the August 2019 (8th)fiscal period and ¥2,914 million in the February 2020 (9th) fiscal period will berecorded as real estate rental expenses. In general, previous owners are reimbursed forthe property taxes and city planning taxes for the portion of the fiscal year in which theacquisition occurs from the time NMF acquires the assets onward. However, because
the amount equivalent to such reimbursement is included in the cost of acquisition andis capitalized, NMF will not record it as property taxes and city planning taxes in theAugust 2019 (8th) fiscal period and the February 2020 (9th) fiscal period concerning theproperties acquired on both March 1, 2019 and April 1, 2019.
・ Estimated property management costs (including building management fees andproperty management fees) of ¥2,687 million in the August 2019 (8th) fiscal period and¥2,613 million in the February 2020 (9th) fiscal period are expected to be recorded asreal estate rental expenses.
・ Expenses for building repairs and maintenance required for the fiscal period arerecorded as real estate rental expenses calculated based on the mid-to-long term repair
plans that NMF’s Asset Management Company has established. However, the actual
expenses for repairs and maintenance for the fiscal period may differ significantly fromestimates due to expenses for urgent repairs of damage to buildings caused by difficult
to foresee factors, significant year-on-year fluctuations in costs or non-periodic repair
expenses. Furthermore, expenses for repairs and maintenance are estimated at ¥1,576
million in the August 2019 (8th) fiscal period and ¥1,489 million in the February 2020(9th) fiscal period.
・ Depreciation of ¥5,114 million in the August 2019 (8th) fiscal period and ¥5,089
million in the February 2020 (9th) fiscal period is expected to be recorded as real estate
rental expenses.
・ Other operating expenses (including asset management fees, asset custody fees andgeneral administration fees) are estimated at ¥3,878 million in the August 2019 (8th)fiscal period and ¥3,912 million in the February 2020 (9th) fiscal period.

10Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

Item

Assumptions

・ Goodwill is scheduled to be amortized using the straight-line method over 20 years
pursuant to the Business Combination Accounting Standards. Goodwill amortization
expenses are expected to be ¥2,622 million in each the August 2019 (8th) and the
February 2020 (9th) fiscal periods.
Amortization expenses
・ Amortization of goodwill causes a difference between accounting and tax treatment
for goodwill
and may result in the imposition of corporation tax or other tax. NMF intends tomake distributions in excess of net income for the purpose of securing tax relief
during the goodwill amortization period, and it is expected that NMF will be able to
avoid such taxation.
・ NMF expects one-time expenses in the August 2019 (8th) fiscal period of ¥57 million
in costs related to the issuance of new investment units resolved at the February 7,
2019 meeting of the Board of Directors (“the issue of new investment units”).
Non-operating expenses
Furthermore, interest expenses and other borrowing-related expenses are estimated tobe ¥2,542 million in the August 2019 (8th) fiscal period and ¥2,497 million in the
February 2020 (9th) fiscal period.
・ As of this document’s publication, the outstanding interest-bearing liabilities of
NMF are ¥511,512 million, consisting of ¥489,512 million in outstanding
borrowings and ¥22,000 million in investment corporation bonds.
・ Regarding ¥26,242 million in borrowings that will come due by the end of theAugust 2019 (8th) fiscal period and the ¥37,942 million in borrowings that will comedue by the end of the February 2020 (9th) fiscal period (¥64,185 million in total), it
Interest-bearing liabilities
is assumed that NMF will make scheduled, partial repayments of ¥42 million ineach the August 2019(8th) and the February 2020(9th) fiscal periods using cash on
hand, while refinancing the remainder with new borrowings.
・ It is assumed that there will be no changes in the amount of the outstanding
interest-bearing liabilities other than those stated above by the February 2020(9th)fiscal period.
Investment units

Distribution per unit

・ Forecasts are based on the number of investment units issued and outstanding as ofthis document’s publication, 4,547,300 units. NMF assumes that there will be no
additional issuance of new investment units through February 29, 2020 (the end of
the 9th fiscal period).
・ The distribution per unit is calculated according to the distribution policy outlined
in NMF’s Articles of Incorporation.
・ Distribution for the Fiscal Period Ending August 31, 2019 (8th Fiscal Period) andfor the Fiscal Period Ending February 29, 2020 (9th Fiscal Period) are assumed tobe conducted with additional distribution of ¥288 million for the 8th Fiscal Periodand ¥179 million for the 9th Fiscal Period in order to stabilize distribution which is
expected to decline a result of the temporary decline in operating revenues for thesefiscal periods due to a vacancy period caused by the departure of a major tenant andthe granting of free rent. The additional distribution is to be distributed as other
distributions in excess of net earnings.
・ NMF assumes that, of the allowance for temporary difference adjustments (“ATA”)
accrued up to the present, the amount eliminated in the August 2019 (8th) fiscal
period (¥5 million) and the February 2020 (9th) fiscal period (¥5 million) will bereversed from retained earnings at the respective period ends.
・ In the August 2019 (8th) fiscal period and the February 2020 (9th) fiscal period,
NMF assumes there will no change in the per-unit distribution by the change in fairvalue of interest rate swaps.
・ The per-unit distribution may vary due to various factors, including changes in theinvestment portfolio, changes in rent income caused by tenant replacements, andunforeseen repairs.
11Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

Item

Assumptions

Distribution per unit inexcess of earnings per
unit

・ 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
distributable amount 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 theamortization of goodwill and other merger-related expenses (the “Merger
Expenses”) and the reversal of ATA, if the total difference between accounting andtax treatment for the relevant fiscal period is less than the sum of the Merger
Expenses and the reversal of ATA, 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”), which restricts the amount to60/100 of the total amount of accumulated depreciation recorded as of the end of
the relevant fiscal period less the total amount of accumulated depreciation
recorded as of the end of the immediately preceding fiscal period.
・ The distribution in excess of net earnings per unit for the August 2019 (8th) fiscal
period is expected to be ¥641, comprising ¥348 in distributions of ATA and ¥293 inother distributions in excess of net earnings. The distribution in excess of net earnings
per unit for the February 2020(9th) fiscal period is expected to be ¥616, comprising¥381 in distributions of ATA and ¥235 in other distributions in excess of net
earnings.

Other

・ 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.

12Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 20193.

Financial Statements(1) Balance Sheet
Thousands of Yen
As of August 31, 2018

As of February 28, 2019

Cash and bank deposits

62,071,925

61,654,628

Cash and bank deposits in trust

AssetsCurrent assets
12,484,905

12,558,115

Rental receivables

719,156

659,719

Prepaid expenses

749,788736,985

Consumption taxes receivable

206,657－

Other
Total current assets

530,464

671,089

76,762,897

76,280,538

Noncurrent assets
Property and equipment
Buildings

131,591,703

131,838,208

Less accumulated depreciation(10,249,808)(11,918,499)

Buildings, net

121,341,895

119,919,709

537,118

540,314

Less accumulated depreciation(213,878)(247,274)

Structures, net

323,240

293,039

650,784

699,374

Less accumulated depreciation(363,337)(405,602)

Machinery, net

287,446

293,771

Structures

Machinery

Tools, furniture and fixtures

237,337

275,363

Less accumulated depreciation(56,101)(77,742)

Tools, furniture and fixtures, net

181,235

197,620Land

247,417,363

248,639,023

Buildings in trust

181,115,458

183,254,186(19,907,431)(22,583,752)

Less accumulated depreciation
Buildings in trust, net*3

Structures in trust

161,208,027*3

160,670,434

974,886

993,054

Less accumulated depreciation(766,440)(832,411)

Structures in trust, net

208,445

Machinery in trust*3

160,642429,315559,318

Less accumulated depreciation(53,443)(77,583)

Machinery in trust, net

375,871481,735

Tools, furniture and fixtures in trust

599,842

696,047

Less accumulated depreciation(141,226)(194,795)

Tools, furniture and fixtures in trust, net
Land in trust
Leased assets in trust*3

458,615*3

501,252*3

406,677,823*3409,741,005

10,107

10,107Less accumulated depreciation(7,369)(8,633)

Leased assets, net

2,737

1,473

Construction in progress

7,228

8,186

938,489,931

940,907,896

Total property and equipment
13

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

Thousands of Yen
As of August 31, 2018

As of February 28, 2019

Goodwill

90,831,465

88,209,223

Leasehold rights

1,331,702

1,331,702

Leasehold rights in trust

7,627,991

7,627,604

45,95043,192

99,837,109

97,211,723

Long-term prepaid expenses

1,908,481

1,947,644

Long-term deposits

527,786

492,905

Security deposits

946,367

946,367

Derivatives Assets

109,110

4,384

Total investments and other assets

3,491,745

3,391,301

1,041,818,787

1,041,510,921

63,15959,99963,15959,9991,118,644,844

1,117,851,458

Intangible assets

Other
Total intangible assets
Investments and other assets

Total noncurrent assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets

14Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

Thousands of Yen
Liabilities
Current liabilities
Trade accounts payable
Short-term debt
Current portion of long-term debt
Lease obligations in trust
Other accounts payable
Accrued expenses
Accrued income taxes
Accrued consumption taxes
Rent received in advance
Unearned revenue
Provision for loss on disaster
Derivatives liabilities
Other current liabilities
Total current liabilities
Long-term liabilities
Investment corporation bonds
Long-term debt
Lease obligations in trust
Long-term advances received
Security deposits from tenants
Security deposits from tenants in trust
Derivatives liabilities
Total long-term liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
SurplusCapital surplus
Deductions from capital surplus
Allowance for temporary difference adjustments
Other deductions from capital surplus
Total deduction from capital surplus
Capital surplus, net
Retained earnings
Total surplus
Total unitholders' equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Valuation and translation adjustments
Total net assets
Total liabilities and net assets

As of August 31, 2018

As of February 28, 2019

2,558,715
500,000
63,160,600
2,728
2,370,672
322,498
2,120

1,957,136
500,000
64,685,600
1,591
2,672,988
316,253
870
990,633
5,036,231
187,784
43,48052,90722,71876,468,194*1－
5,069,434
228,281
17,92262,643
7,603
74,303,221

*3

*4

*2

15

*1

22,000,000
411,495,000
227
346,546
10,647,205
27,197,704
818,237
472,504,921
546,808,142

22,000,000
409,927,200*3－
261,893
10,656,786
27,744,947
948,957
471,539,785
548,007,980

181,730,086

182,051,777

394,012,959

394,012,959(7,878,667)(7,060,439)*4(8,879,447)(8,678,670)(14,939,107)
379,073,851
11,804,535
390,878,386
572,608,472(17,558,118)
376,454,840
12,334,340
388,789,181
570,840,958(771,769)(771,769)
571,836,702
1,118,644,844(997,480)(997,480)
569,843,478
1,117,851,458*2

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019(2) Statement of Income and Retained Earnings
Thousands of Yen
Current period
from Sep. 1, 2018
to Feb. 28, 2019

Previous period
from Mar. 1, 2018
to Aug. 31, 2018

Operating revenues
Rental revenues
Other rental revenues
Gain on sales of real estate
Total operating revenues
Operating expenses
Real estate rental expenses
Loss on sales of real estate
Asset management fees
Asset custody fees
Administrative service fees
Directors' compensation
Amortization of goodwill
Other operating expenses
Total operating expenses
Operating profit
Non-operating revenues
Interest income
Reversal of dividends payable
Interest on refund
Other non-operating revenues
Total non-operating revenues
Non-operating expenses
Interest expenses

*1
*1

*1

Interest expenses on investment corporation bonds
Amortization of investment corporation bondissuance costs
Loan arrangement fees
Investment units issuance costs
Other non-operating expenses
Total non-operating expenses
Ordinary income
Extraordinary Gain
Insurance income
Total extraordinary Gain
Extraordinary loss
Loss on disaster
Total extraordinary Loss
Income before income taxes
Income taxes—current
Total income taxes
Net income
Retained earnings brought forward
Retained earnings at end of period

31,695,901
3,035,967－
34,731,869*1*1

15,158,332－
3,074,928
55,871
165,937
6,000
2,622,242
362,580
21,445,892
13,285,976*1

14,977,514*3
23,2193,124,065
57,154
167,475
6,000
2,622,242
394,763
21,372,436
14,056,078

571
5,198
132
103
6,006

378
5,674
1,213
11
7,278

1,908,070
182,048

1,871,984
183,376

2,951

3,160

418,730
19,231
5,319
2,536,351
10,755,631

407,627
75,2875,280
2,546,715
11,516,640－－
43,651
43,651
10,711,980
2,175
2,175
10,709,804
1,094,730
11,804,535

16*2

31,885,544
2,857,373
685,596
35,428,514*4

53,29753,297
8,097
8,097
11,561,841
923
923
11,560,917
773,423
12,334,340

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019(3) Statement of Changes in Net Assets
Previous period (from March 1, 2018 to August 31, 2018)

Unitholders'
capitalBalance at the beginning of
the period
Changes of items during
the period
Issuanceof
newinvestment units
Distributions ofretained earnings
Reversal of allowancefor temporary difference
adjustments
Distributions in excess
of net earnings fromallowance for temporary
difference adjustments
Other distributions inexcess of net earnings
Net income
Net changes of items
other than unitholders’equityTotal changes of items
during the period
Balance at the end of theperiodThousands of Yen
Unitholders' equity
SurplusCapital surplus
Total deduction from capital surplus
Allowance
Deduction
Total
Net capitalforfrom otherdeduction
surplustemporary
capitalfrom capitaldifference
surplussurplusadjustment

Capitalsurplus162,791,125

394,012,959(7,169,175)(6,000,467)(13,169,643)

380,843,315

18,460,443

－

－

－

－

－

－

－

－

－

－

－

478,516－

478,516(478,516)

－

－

－

－

(1,188,008)－(1,188,008)(1,188,008)

－

－

－

(581,455)(581,455)(581,455)

－

－

－

－

－

－

－

－

－

－

－

－

18,938,960－(709,492)(1,059,971)(1,769,463)(1,769,463)

181,730,086

394,012,959(7,878,667)(7,060,439)(14,939,107)

379,073,851

17

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

Unitholders' equity
Surplus

Balance at the beginning of
the period
Changes of items during
the period
Issuanceof
newinvestment units
Distributions ofretained earnings
Reversal of allowancefor temporary difference
adjustments
Distributions in excess
of net earnings fromallowance for temporary
difference adjustments
Other distributions inexcess of net earnings
Net income
Net changes of items
other than unitholders’equityTotal changes of items
during the period
Balance at the end of theperiodRetainedearnings

Total surplus

12,549,780

393,393,095

－

Total
unitholders'equityThousands of Yen
Valuation and translation
adjustments
Deferred
Valuation
Total net
gains orandassetslosses onhedgestranslation
adjustments

556,184,220(1,093,460)(1,093,460)

555,090,759－

18,460,443－－

18,460,443(10,976,533)(10,976,533)(10,976,533)－－(10,976,533)(478,516)(478,516)

－

－

－

－

－

(1,188,008)(1,188,008)－－(1,188,008)－(581,455)(581,455)－－(581,455)

10,709,804

10,709,804

10,709,804－－

10,709,804

－

－

－

321,691

321,691

321,691(745,244)(2,514,708)

16,424,251

321,691

321,691

16,745,942

11,804,535

390,878,386

572,608,472(771,769)(771,769)

571,836,702

18

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

Current period (from September 1, 2018 to February 28, 2019)

Unitholders'
capitalBalance at the beginning of
the period
Changes of items during
the period
Distributions ofretained earnings
Reversal of allowancefor temporary difference
adjustments
Distributions in excess
of net earnings fromallowance for temporary
difference adjustments
Other distributions inexcess of net earnings
Net income
Net changes of items
other than unitholders’equityTotal changes of items
during the period
Balance at the end of theperiodThousands of Yen
Unitholders' equity
SurplusCapital surplus
Total deduction from capital surplus
Allowance
Deduction
Total
Net capitalforfrom otherdeduction
surplustemporary
capitalfrom capitaldifference
surplussurplusadjustment

Capitalsurplus181,730,086

394,012,959(7,878,667)(7,060,439)(14,939,107)

379,073,851

－

－

－

－

－

－

321,691－

321,691(321,691)

－

－

－

－

(1,322,470)－(1,322,470)(1,322,470)

－

－

－

(1,296,540)(1,296,540)(1,296,540)

－

－

－

－

－

－

－

－

－

－

－

－

321,691－(1,000,779)(1,618,231)(2,619,010)(2,619,010)

182,051,777

394,012,959(8,879,447)(8,678,670)(17,558,118)

376,454,840

19

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

Unitholders' equity
Surplus

Balance at the beginning of
the period
Changes of items during
the period
Distributions ofretained earnings
Reversal of allowancefor temporary difference
adjustments
Distributions in excess
of net earnings fromallowance for temporary
difference adjustments
Other distributions inexcess of net earnings
Net income
Net changes of items
other than unitholders’equityTotal changes of items
during the period
Balance at the end of theperiodTotalunitholders'equityThousands of Yen
Valuation and translation
adjustments
Deferred
Valuation
Total net
gains orandassetsRetainedearnings

Total surplus

11,804,535

390,878,386

572,608,472(771,769)(771,769)

571,836,702(10,709,420)(10,709,420)(10,709,420)－－(10,709,420)(321,691)(321,691)

－

－

－

－

－

(1,322,470)(1,322,470)－－(1,322,470)－(1,296,540)(1,296,540)－－(1,296,540)

11,560,917

11,560,917

11,560,917－－

11,560,917

－

－

－

(225,710)(225,710)(225,710)

529,805(2,089,205)(1,767,514)(225,710)(225,710)(1,993,224)

12,334,340

388,789,181

570,840,958(997,480)(997,480)

569,843,478

20

losses onhedgestranslation
adjustments

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019(4) Statement of Cash Distributions

Yen
Previous period
from Mar. 1, 2018
to Aug. 31, 2018
11,804,535,046

Current period
from Sep. 1, 2018
to Feb. 28, 201912,334,340,732

II. Distributions in excess of retained
earnings
Of which, allowance fortemporary difference adjustment
Of which, other distributions inexcess of net income

2,619,010,800

2,182,509,000

1,322,470,800

1,560,169,800

1,296,540,000

622,339,200

III. Incorporation into unitholders’capitalOf which, reversal of allowancefor
temporarydifference
adjustments

321,691,082－

321,691,082－

IV. Distributions[Distributions per unit]
Of which, distributions of earnings[Of which, distributions ofearnings per unit]
Of which, allowance for temporary
difference adjustments[Of which, allowance for temporary
difference adjustments per unit]
Of which, other distributions inexcess of net income[Of which, other distributions inexcess of net income per unit]

13,328,431,200[3,084]
10,709,420,400[2,478]13,518,590,400[3,128]
11,336,081,400[2,623]

1,322,470,800

1,560,169,800

[306]

[361]

1,296,540,000

622,339,200

[300]

[144]

773,423,564

998,259,332

I. Retained earnings at end of period

V. Retained earnings carried forward
Calculation method for distributions

NMF calculates distributions inaccordance with the cash distribution
policies as specified in Article 36,
paragraphs 1 and 2 of NMF’s Articles ofIncorporation.
For the fiscal period under review,
NMF
decidedtoimplement¥13,328,431,200 in distributions, for a
distribution per unit of ¥3,084. This
figure was calculated as ¥10,709,804,925
in net income plus ¥2,622,242,820 inamortization of goodwill, from which theportion for which per-unit distributions
comprising the types of dividends laid out
below would be less than ¥1 was
excluded.
Total distributions comprise distributionsof earnings and distributions in excess of
net income. Distributions of earnings
came to ¥10,709,420,400 (¥2,478 perunit), calculated as income as stipulated in
Article 136 Paragraph 1 of the Act on
Investment Trusts and Investment
Corporations, less reversal of allowancefor temporary difference adjustments(hereinafter ATA). Distributions in excess
of net income comprise a ¥1,322,470,800(¥306 per unit) distribution of ATA and¥1,296,540,000 (¥300 per unit) in other
distributions in excess of net earnings.

21

NMF calculates distributions inaccordance with the cash distribution
policies as specified in Article 36,
paragraphs 1 and 2 of NMF’s Articles ofIncorporation.
For the fiscal period under review,
NMF decided to implement a total of¥13,518,590,400 in distributions (¥3,128
per unit). This figure was arrived at by
excluding the portion for which per-unit
distribution comprising the types ofdividends laid out below would be lessthan ¥1 from ¥13,520,782,822, theamount calculated by adding to¥11,560,917,168 in net income after taxes¥2,622,242,820 in amortization of
goodwill, subtracting ¥685,596,431 ingain on sales of real estate, and adding¥23,219,265 in loss on sale of real estate.
Total distributions comprise distributionof earnings and distribution in excess of
net income. Distribution of earnings as
stipulated in Article 136, Paragraph 1 ofthe Investment Trusts Act came to¥11,336,081,400 (¥2,623 per investmentunit). Distribution in excess of net
income comprises a distribution of¥1,560,169,800 (¥361 per investmentunit) as allowance for temporary
difference adjustment and ¥622,339,200

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019(¥144 per investment unit) in other
distribution in excess of net income.

22

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019(5) Statement of Cash Flows
Previous period
from Mar. 1, 2018
to Aug. 31, 2018
Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of goodwill
Investment units issuance costs
Amortization of investment corporation bond issuancecosts
Increase (decrease) in provision for loss on disaster
Interest income
Interest expenses
Loss on disposal of property and equipment
Decrease (increase) in rental receivables
Decrease (increase) in prepaid expenses
Decrease (increase) in consumption taxes receivable
Decrease (increase) in long-term prepaid expenses
Decrease (increase) in long-term deposits
Increase (decrease) in trade accounts payable
Increase (decrease) in other accounts payable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in accrued expenses
Increase (decrease) in rent received in advance
Decrease in property and equipment in trust due to sales
Other
SubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments for purchase of property and equipment
Payments for purchase of property and equipment in trust
Payments for purchase of intangible assets in trust
Reimbursement of security deposits to tenants
Proceeds from security deposits from tenants
Reimbursement of security deposits to tenants in trust
Proceeds from security deposits from tenants in trust
Payments for security deposits
Proceeds from security deposits
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term debt
Repayment of short-term debt
Proceeds from long-term debt
Repayment of long-term debt
Proceeds from issuance of investment corporation bonds
Payments for issuance of investment corporation bonds
Proceeds from issuance of investment corporation bonds
Payments of investment corporation bonds issuance
costs
23

Thousands of Yen
Current period
from Sep. 1, 2018
to Feb. 28, 201910,711,980
4,904,202
2,622,242
19,231
2,951
17,922(571)
2,090,118
11,491(162,508)(53,500)(206,657)(182,905)
9,460
335,536(5,783)(223,118)(830)
172,716－(294,876)
19,767,104571(2,196,550)(605)
17,570,519

11,561,841
4,913,913
2,622,242
75,287
3,160
25,557(378)
2,055,360
2,352
59,436
12,308
206,657(39,163)
34,880(601,578)
52,250990,633
55,198(33,203)4,574,369(126,968)
26,444,158
378(2,186,260)(2,174)24,256,101(34,624,878)(2,817,160)(6,913)(373,009)
1,283,082(494,332)
903,878(648)
210(36,129,771)(6,388,479)(5,379,780)(5,698)(185,061)
194,912(948,038)
1,495,121－－(11,217,024)

2,500,000(2,000,000)
38,855,000(29,897,800)
1,500,000(25,147)
18,460,443－－
28,375,000(28,417,800)－－(61,693)(7,400)－Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

Distributions of earnings to unitholders(10,982,284)(10,715,350)

Distributions in excess of net earnings from allowancefor temporary difference adjustments(1,188,092)(1,322,360)(581,282)
16,579,143(1,980,108)
76,536,938
74,556,830(1,295,252)(13,383,164)(344,086)
74,556,830
74,212,743

Other distributions in excess of net earnings
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

24

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019(6) Notes Concerning the Going Concern Assumption
Not applicable.

(7) Notes Concerning Significant Accounting Policies
1.

Depreciation of
noncurrent assets(1) Property and equipment (including trust assets)
The straight-line method is adopted.
The useful lives of major property and equipment are as follows:
Buildings
3–70 years
Structures
2–45 years
Machinery
2–15 years
Tools, furniture and fixtures
2–20 years(2) Intangible assets
The straight-line method is adopted.
Goodwill is amortized using straight-line method over 20 years.
(3) Long-term prepaid expenses
The straight-line method is adopted.

2.

Accounting method fordeferred assets

3.

Allowance for doubtful
accounts

4.

Revenue and expenses
recognition

5.

Hedge accounting(1) Deferred investment corporation bond issuance costs
The straight-line method over the respective terms of the bonds.
(2) Investment units issuance costs
The entire amount is expensed as incurred.
(1) To be ready for possible losses arising from defaults on receivables, the uncollectableamount is estimated and recorded by investigating collectability based on historical loan
loss ratios for general receivables and on case-by-case examinations for doubtfulreceivables.
(2) Provision for loss on disaster
The amount that is reasonably estimated at the end of the fiscal period under review isrecorded to cover expenditures for restoration etc. following Typhoon Trami in 2018.
Accounting for fixed asset tax, etc.
Of the tax amount assessed and determined for fixed asset tax, city planning tax,
depreciable asset tax, etc. on real estate, etc. held by NMF, the method of charging theamount corresponding to the concerned fiscal period to expenses as real estate rental
expenses is adopted.
The amount equivalent to fixed asset tax, etc. for the fiscal year in which the acquisition
date falls paid to the seller as reimbursement upon acquisition of real estate or trust
beneficiary interests in real estate is included in the cost of acquisition of the concerned
real estate and not recorded as expenses. The amount equivalent to fixed asset tax, etc.
included in the cost of acquisition of real estate, etc. was ¥116,332 thousand in theprevious fiscal period, and ¥2,052 thousand in the current fiscal period.
(1) Method of hedge accounting
Deferred hedge accounting is adopted. For interest-rate swap transactions that meetthe requirements for special treatment, special treatment is adopted.
(2) Hedging instruments and hedged items
Hedging instruments
Interest-rate swap transactions
Hedged items
Interest on loans(3)

Hedging policy
NMF conducts derivative transactions for the purpose of hedging risks prescribed in
the Articles of Incorporation in accordance with the Basic Policy on Risk Management.

(4)

Method for assessing effectiveness of hedging
The effectiveness of hedging is assessed by the correlation between changes in the fairvalue of hedging instruments and hedged items.

25

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

6.

Other important bases
for preparing financial
statements

7.

Cash and cash
equivalents as stated in
the Statement of Cash
Flows

① Method of accounting for trust beneficiary interests in real estate, etc. Concerning trust
beneficiary interests in real estate, etc., held by NMF, all assets and liabilities within thetrust assets as well as all revenues and expenses generated by the trust assets arerecorded under the corresponding items of the Balance Sheet and Statement of
Income and Retained Earnings. Of the trust assets thus recorded, the following major
items are listed as separate items on the balance sheet.
(1) Cash and bank deposits in trust(2) Buildings in trust; Structures in trust; Machinery in trust; Tools, furniture and fixturesin trust; Land in trust; Leased assets in trust(3) Leasehold rights in trust(4) Lease obligations in trust(5) Security deposits from tenants in trust② Method of accounting for consumption tax, etc.
Consumption tax and local consumption tax is accounted for using the tax-excluded
method. However, non-deductible consumption tax, etc., on such items as noncurrent
assets is included in the acquisition costs of individual items.
Cash and cash equivalents in the statement of cash flows consist of cash on hand and cash intrust; deposits and deposits in trust that can be withdrawn at any time; and short-term
investments with a maturity of three months or less from the date of acquisition that arereadily convertible to cash and bear only an insignificant risk of price fluctuation.

(Additional Information)(Notes Concerning Increases in and the Reversal of Allowance for Temporary Difference Adjustments)
Previous period
from Mar. 1, 2018
to Aug. 31, 2018
1．Reasons, related assets and amounts of allowanceThousands of Yen
Related assets,
etc.
Goodwill
Long-term
deposits
Subtotal
Buildings,
facilities, etc.
Unearnedrevenueother
Subtotal
Total

ReasonAmortization of
goodwill
Shortfall of reserve
for repair

Allowance
temporarydifference
adjustment

Current period
from Sep. 1, 2018
to Feb. 28, 2019
1． Reasons, related assets and amounts of allowanceThousands of Yen

for
Related assets,
etc.

2,622,242

Goodwill

1,613

Long-term
deposits

ReasonAllowance
temporarydifference
adjustmentfor

Amortization of
goodwill
Shortfall of reserve
for repair

2,622,242

Deferred gains Lossonor losses on interest-rate swaps
hedgesrecognized at theend of the fiscal
periodSubtotal

225,7108,015

2,623,856
Depreciation
deficiency
equivalent
Write-down of loss
on interest rate
swap
due to merger－(1,142,482)(137,860)(21,042)(1,301,385)
1,322,470

Buildings,
facilities, etc.
UnearnedrevenueLand
other
Subtotal
Total

26

Depreciation
deficiency
equivalent
Write-down of loss
on interest rate
swap
due to merger
Cost of sales ofland－

2,855,968(657,016)(124,655)(494,720)(19,406)(1,295,799)
1,560,169

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

2．Reasons, related assets and amounts of reversals
Thousands of Yen
Allowance
forRelated assets,
temporary
Reasonetc.
difference
adjustment
Land, buildings, Sale
and
－
etc.
depreciationof(*)
properties
for
which
mergerexpenses
wererecordedDeferred gains Changes in fair
(321,691)
or losses on value of derivatives
hedges(321,691)
Total(*) The amount of reversal during current period (¥5,754 thousand) is
included in “Depreciation deficiency equivalent” on “1. Reasons, related assets
and amounts of allowance”.

2．Reasons, related assets and amounts of reversals
Thousands of Yen
Allowance
forRelated assets,
temporary
Reasonetc.
difference
adjustment
Land, buildings, Sale
and
－
etc.
depreciationof(*)
properties
for
which
mergerexpenses
wererecorded－
Total(*) The amount of reversal during current period (¥12,910 thousand) is
included in “Depreciation deficiency equivalent” on “1. Reasons, related
assets and amounts of allowance”.

3. Method of reversal(1) Amortization of goodwill
In principle, amortization of goodwill is not reversed.

3. Method of reversal(1) Amortization of goodwill
In principle, amortization of goodwill is not reversed.

(2) Merger expenses
Method of reversal
Item
Buildings, etc. Upon depreciation and sale, thecorresponding amounts are scheduled tobe reversed.
Land
Upon sale, etc., the corresponding
amount is scheduled to be reversed.
Buildings,
Upon depreciation and sale, theetc., in trust
corresponding amounts are scheduled tobe reversed.

(2) Merger expenses
Method of reversal
Item
Buildings, etc. Upon depreciation and sale, thecorresponding amounts are scheduled tobe reversed.
Land
Upon sale, etc., the corresponding
amount is scheduled to be reversed.
Buildings,
Upon depreciation and sale, theetc., in trust
corresponding amounts are scheduled tobe reversed.

Land in trust
LeaseholdrightsLeaseholdrights in trust

Land in trust
LeaseholdrightsLeaseholdrights in trust

Upon sale, etc., the corresponding
amount is scheduled to be reversed.

Upon sale, etc., the corresponding
amount is scheduled to be reversed.

(3) Long-term deposits
In principle, long-term deposits are not reversed.

(3) Long-term deposits
In principle, long-term deposits are not reversed.

(4) Deferred gains or losses on hedges
The amount corresponding to changes in the fair value ofderivatives used as hedging instruments is scheduled to bereversed.

(4) Deferred gains or losses on hedges
The amount corresponding to changes in the fair valueof derivatives used as hedging instruments is scheduled
to be reversed.

27

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019(8) Notes to Financial Statements(Notes to Balance Sheet)*1. Commitment line agreement① NMF has concluded a commitment line agreement with two lending financial institutions for both previous
period and current period as follows.

Committed line of credit
Balance of used line
Balance of unused line

Previous period(Aug. 31, 2018)
10,000,000－
10,000,000

Thousands of Yen
Current period(Feb. 28, 2019)10,000,000－
10,000,000② NMF has concluded a commitment line agreement with four lending financial institutions for previous period
and with four lending financial institutions for current period as follows.

Committed line of credit
Balance of used line
Balance of unused line

Previous period(Aug. 31, 2018)
40,000,000
500,000
39,500,000

Thousands of Yen
Current period(Feb. 28, 2019)40,000,000
500,000
39,500,000*2. Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment
Corporations
Thousands of Yen
Previous period
Current period(Aug. 31, 2018)(Feb. 28, 2019)50,00050,000*3. Asset offered as collateral and liabilities secured with collateralPrevious period(Aug. 31, 2018)
Assets offered as collateral are as follows.
Buildings in trust
3,294,755
Land in trust
6,096,368
Tools, furniture andfixtures in trust
185
Total
9,391,308
Liabilities secured by collateral are as follows.
Security deposits fromtenants in trust
726,648
Total
726,648

28

Thousands of Yen
Current period(Feb. 28, 2019)
Assets offered as collateral are as follows.
Buildings in trust
3,324,031
Land in trust
6,096,368
Structures in trust
2,634
Tools, furniture andfixtures in trust
164
Total
9,423,198
Liabilities secured by collateral are as follows.
Security deposits fromtenants in trust
726,648
Total
726,648

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

*4. Allowance for temporary difference adjustments
Previous period (from March 1, 2018 to August 31, 2018)
1. Reasons, related assets and amounts
Thousands of Yen
Related assets,
etc.

ReasonInitialamountGoodwill

Amortization of
goodwill

6,866,883

Land, buildings,
etc.

Merger expenses

Deferred gains
or losses onhedgesLoss oninterest-rate
swaps
recognized at
the end of the
fiscal period

4,029,135

Balance atthebeginningof current
periodAllowance
set aside
duringperiodReversalduringperiodBalance atthe end ofcurrent
periodReason forreversal

4,244,640

1,188,008－

5,432,649－

1,352,557

Sale anddepreciationof properties
for whichmergerexpenses
wererecorded

1,399,852－(47,295)

2,867,594

1,524,682－(431,221)

1,093,460

Changes infair value ofderivativetransactions

Increase –subtotal－

7,169,175

1,188,008(478,516)

7,878,667

－

Total

－

7,169,175

1,188,008(478,516)

7,878,667－

2. Method of reversal(1) Amortization of goodwill
In principle, amortization of goodwill is not reversed.
(2) Merger expenses
Item

Method of reversal

Buildings, etc.

Upon depreciation and sale, the corresponding amount is scheduled to be reversed.

Land

Upon sale, the corresponding amount is scheduled to be reversed.

Buildings in trust, Upon depreciation and sale, the corresponding amount is scheduled to be reversed.
etc.
Land in trust
Upon sale, the corresponding amount is scheduled to be reversed.
Leasehold rights
Leasehold rights intrust(3) Deferred gains or losses on hedges
Based on changes in the fair value of derivatives used as hedging instruments, the corresponding amount isscheduled to be reversed.
29

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

Current period (from September 1, 2018 to February 28, 2019)
1. Reasons, related assets and amounts
Thousands of Yen
Balance atthebeginningof current
periodAllowance
set aside
duringperiodRelated assets,
etc.

ReasonInitialamountGoodwill

Amortization of
goodwill

9,489,126

5,432,649

1,328,225

Land, buildings,
etc.

Merger expenses

4,029,135

1,352,557(5,754)

Deferred gains
or losses onhedgesLoss oninterest-rate
swaps
recognized at
the end of the
fiscal period

Balance atthe end ofcurrent
periodReason forreversal－

6,760,875－－

1,346,802－

Reversalduringperiod2,867,594

1,093,460－(321,691)

Changes infair value of
771,769
derivativetransactions

Increase –subtotal－

7,878,667

1,322,470(321,691)

8,879,447

－

Total

－

7,878,667

1,322,470(321,691)

8,879,447－

2. Method of reversal(1) Amortization of goodwill
In principle, amortization of goodwill is not reversed.

(2) Merger expenses
Item

Method of reversal

Buildings, etc.

Upon depreciation and sale, the corresponding amount is scheduled to be reversed.

Land

Upon sale, the corresponding amount is scheduled to be reversed.

Buildings in trust, Upon depreciation and sale, the corresponding amount is scheduled to be reversed.
etc.
Land in trust
Upon sale, the corresponding amount is scheduled to be reversed.
Leasehold rights
Leasehold rights intrust(3) Deferred gains or losses on hedges
Based on changes in the fair value of derivatives used as hedging instruments, the corresponding amount isscheduled to be reversed.

30

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

(Notes to Statement of Income and Retained Earnings)*1. Breakdown of real estate rental revenues and expenses
Previous period
from Mar. 1, 2018
to Aug. 31, 2018
A. Property related revenues
Rental revenues
Rent revenues
Common area charges
Other rental revenues
Parking revenues
Incidental income
Other miscellaneous revenues
Property related revenues
B. Property related expenses
Real estate rental expenses
Property management costs
Property management fees
Property and other taxes
Utility expenses
Casualty insurance
Repairs and maintenanceLand rents
Depreciation
Other rental expenses
Property related expenses

29,254,971
2,440,930

Thousands of Yen
Current period
from Sep. 1, 2018
to Feb. 28, 2019

31,695,901

29,453,615
2,431,928

588,545595,154

2,376,113
71,3083,035,967

2,189,215
73,00334,731,869

1,604,399
980,132
2,846,279
1,882,466
43,614
1,555,208
215,680
4,901,925
1,128,627

C. Real estate rental profits [A－B]

31

15,158,332
15,158,332
19,573,536

31,885,544

2,857,373
34,742,917

1,626,785
904,698
2,831,124
1,774,192
41,641
1,515,609
217,806
4,911,636
1,154,020

14,977,514
14,977,514
19,765,403

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019*2. Breakdown of gain on sale of real estatePrevious period (from March 1, 2018 to August 31, 2018)
Not applicable.
Current period (from September 1, 2018 to February 28, 2019)
Thousands of Yen
PRIME URBAN Esaka I
Proceeds from sales of real estate
Cost of sales of real estate
Other related sales expenses
Gain on sales of real estate

729,000
612,553
15,182PRIME URBAN Esaka II
Proceeds from sales of real estate
Cost of sales of real estate
Other related sales expenses
Gain on sales of real estate

910,000
743,930
18,908PRIME URBAN Esaka III
Proceeds from sales of real estate
Cost of sales of real estate
Other related sales expenses
Gain on sales of real estate

1,334,000
1,095,159
27,513PRIME URBAN Tamatsukuri
Proceeds from sales of real estate
Cost of sales of real estate
Other related sales expenses
Gain on sales of real estate

1,206,000
955,449
24,705

101,263

147,160

211,327

225,844*3. Breakdown of gain on loss of real estatePrevious period (from March 1, 2018 to August 31, 2018)

Not applicable.
Current period (from September 1, 2018 to February 28, 2019)
Thousands of Yen

PRIME URBAN Chikusa
Proceeds from sales of real estate
Cost of sales of real estate
Other related sales expenses
Loss on sales of real estate

1,168,000
1,167,276
23,942
23,219*4. Breakdown of Extraordinary Gain
Previous period (from March 1, 2018 to August 31, 2018)

Not applicable.
Current period (from September 1, 2018 to February 28, 2019)
The insurance amount of ¥139,976 thousand related to the assets damaged by the Typhoons Jebi and Trami
in 2018 was offset by the loss amount of ¥86,678 thousand. Therefore, the amount of ¥53,297 thousand isrecorded as insurance income.

32

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

(Notes on Investment and Rental Properties)
NMF owns leasable offices, leasable retail facilities, leasable logistics facilities, leasable residential facilities and leasable
hotels, etc. (including land) in Greater Tokyo area and other areas for the purpose of earning revenue from leasing.
The following are the carrying amount, amount of increase (decrease) during the fiscal period and fair value of theseinvestment and rental properties at the end of the fiscal period.
Previous period
from Mar. 1, 2018
to Aug. 31, 2018
Carrying amount
Balance at beginning of period
Amount of increase (decrease) during period
Balance at end of period
Fair value at end of period

914,834,180
32,615,444
947,449,625
1,041,183,000

Thousands of Yen
Current period
from Sep. 1, 2018
to Feb. 28, 2019
947,449,625
2,417,578
949,867,203
1,056,994,000(Note 1)
(Note 2)Carrying amount is the cost of acquisition less accumulated depreciation.
Of the change in investment and rental properties, the increase during the previous period is mainly attributable to theacquisition of Landport Hachioji II (¥9,365,947 thousand), Landport Iwatsuki (¥6,176,597 thousand), Hotel Vista Sapporo
Odori (¥3,784,521 thousand), PMO Nihonbashi Mitsukoshi-mae(¥4,374,216 thousand), PMO Shibadaimon (¥2,160,398
thousand), PROUD FLAT Sangenjaya II (¥2,836,531 thousand), PROUD FLAT Sotokanda (¥2,384,706 thousand),
PROUD FLAT Noborito (¥1,278,507 thousand), PROUD FLAT Yoyogi Hachiman (¥1,005,747 thousand) and PROUDFLAT Nakaochiai (¥880,458 thousand). The decrease during the previous period is mainly attributable to the depreciation
expenses (¥4,897,379 thousand). The increase during the current period is mainly attributable to the acquisition of NMF
Kobe Myodani Building (¥3,604,747 thousand), Serenite Shinsaibashi Grande (¥5,832,185 thousand). The decrease during
the current period is mainly attributable to the sale of PRIME URBAN Esaka I (¥612,553 thousand) , PRIME URBAN
Esaka II (¥743,930 thousand) , PRIME URBAN Esaka III (¥1,095,159 thousand) , PRIME URBAN Tamatsukuri(¥955,449 thousand) and PRIME URBAN Chikusa (¥1,167,276 thousand) as well as depreciation expenses(¥4,906,599
thousand).
(Note 3) Fair value at the end of the period is the appraisal value or investigation value determined by investigation, found by anoutside real estate appraiser.

The income (loss) in the previous period (from March 1, 2018 to August 31, 2018) and current period (fromSeptember 1, 2018 to February 28, 2019) for investment and rental properties is as presented in “Notes to Statement of
Income and Retained Earnings” earlier in this report.

33

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

(Notes on Per Unit Information)
Yen
Previous period
from Mar. 1, 2018
to Aug. 31, 2018

Current period
from Sep. 1, 2018
to Feb. 28, 2019

Net assets per unit

132,314

131,853

Net income per unit

2,478

2,675

(Note 1)
(Note 2)

Net income per unit is calculated by dividing net income by the average number of investment units during the period.
In addition, the diluted net income per unit is not stated, since there are no dilutive investment units.
The following is the basis for calculation of net income per unit.

Previous period
from Mar. 1, 2018
to Aug. 31, 2018

Current period
from Sep. 1, 2018
to Feb. 28, 201910,709,804

11,560,917－－

Net income attributable to ordinary investment units (Thousands ofYen)

10,709,804

11,560,917

Average number of investment units during period (Units)

4,321,111

4,321,800

Net income (Thousands of Yen)
Amount not attributable to ordinary unitholders (Thousands of
Yen)(Notes on Significant Subsequent Events)
1．Issuance of New Investment Units
At the Board of Directors meetings held on February 7, 2019 and February 18, 2019, NMF resolved toissue new investment units, as shown below. Payments for new investment units issued via a public offering
concluded on March 1, 2019, and payments for new investment units issued via third-party allocation
concluded on March 26, 2019. As a result, unitholders’ capital stands at ¥214,855,487 thousand, and the total
number of investment units issued and outstanding is 4,547,300.
Issuance of New Investment Units through Public Offering (Primary Offering)Number of units offered
214,760 units
Issue price (offer price)¥150,223 per unit
Total issue price (total offer price)¥32,261,891,480
Amount to be paid (issue value)¥145,471 per unit
Total amount to be paid (total issue value)¥31,241,351,960
Payment date
March 1, 2019
Issuance of New Investment Units through Third-Party Allotment (Third-Party Allotment)
Number of investment units offered
10,740 units
Amount to be paid (issue value)¥145,471 per unit
Total amount to be paid (total issue value)¥1,562,358,540
Payment date
March 26, 2019
Allottee
Nomura Securities Co., Ltd.

Use of proceeds
The proceeds obtained from the Primary Offering were used as partial funds for the acquisition of the 10
properties acquired on March 1, 2019 and April 1, 2019; and the proceeds obtained from the Third-party
Allotment were used to repay loans taken out to fund part of the acquisition of the 10 properties.

34

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

[Disclosure Omissions]

A disclosure of notes concerning Statement of Changes in Net Assets, Statement of Cash Flows, Lease
Transactions, Financial Instruments, Securities, Derivative Transactions, Retirement Benefit Plans, Tax EffectAccounting, Equity Method Income and Retained Earnings, etc., Transactions with Related Parties, Asset
Retirement Obligations and Segment Information is omitted because such disclosure in this summary of financial
results is judged to be unnecessary.

35Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

(9)

Increase (Decrease) in Total Number of Investment Units Issued and Outstanding

The following is the increase (decrease) in unitholders’ capital and total number of investment units issued
and outstanding during the period from the date of incorporation of NMF through the end of the current
fiscal period (February 28, 2019).

Date

Description

Total number ofinvestment units
issued and outstanding(Units)Increase
Balance(Decrease)

Unitholders’ capital(Millions of Yen) (Note 1)
Increase(Decrease)

Note

Balance

October 1, 2015

Consolidation typemerger3,722,010

3,722,010

161,120

161,120(Note 2)September 1, 2016

Absorption typemerger461,120

4,183,130－

161,120(Note 3)－4,183,130

763

161,883(Note 4)－4,183,130

708

162,592(Note 4)－4,183,130

198

162,791(Note 4)

October 14, 2016

April 14, 2017

October 13, 2017

Reversal of Allowancefor temporary
difference adjustments
Reversal of Allowancefor temporary
difference adjustments
Reversal of Allowancefor temporary
difference adjustments

March 1, 2018

Public offering

132,000

4,315,130

17,572

180,363(Note 5)

March 20, 2018

Third party allotment
increase

6,670

4,321,800

887

181,251(Note 6)－

4,321,800

478

181,730(Note 4)－4,321,800

321

182,051(Note 4)

April 13, 2018

October 15, 2018

Reversal of Allowancefor temporary
difference adjustments
Reversal of Allowancefor temporary
difference adjustments(Note 1)
(Note 2)

Figures have been truncated at the nearest million yen.
NMF was established through the consolidation type merger of the former Nomura Master Fund (hereinafter “former NMF”),
Nomura Office Fund (hereinafter “NOF”) and Nomura Residential Fund (hereinafter” NRF”) on October 1, 2015 (hereinafter “theMerger of the Three REITs”). Upon its establishment, NMF allotted 1 NMF unit per former 1.00 NMF unit, 3.60 NMF units per 1.00
NOF unit and 4.45 NMF units per 1.00 NRF unit.
(Note 3) On September 1, 2016, as part of the absorption type merger, with NMF as the surviving corporation and TOP REIT, Inc.
(hereinafter “TOP”) as the absorbed corporation (hereinafter “the Absorption Type Merger with TOP”), NMF issued 2.62 NMF units
per 1.00 TOP unit, resulting in the issue of 461,120 new units. There was no change in the total amount of unitholders’ capital due tothis absorption type of merger.
(Note 4) NMF’s Board of Directors resolved to reverse the allowance for temporary difference adjustments and incorporate the amounts of said
reversals into unitholders’ capital at the Board of Directors meeting on each said date.
(Note 5) NMF issued new investment units through public offering at an issue price of ¥137,474 per unit (issue value: ¥133,125 per unit ) forthe purpose of procuring funds to acquire new properties.
(Note 6) NMF issued new investment units through third-party allotment at an issue value of ¥133,125 per unit together with the issuance of
new investment units through public offering.

36

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

4. Changes in Directors(1) Changes in NMF Directors.

Timely disclosure of changes in directors is made when the relevant details are determined.
During the 7th fiscal period, there was no change in directors. However, at the second General Meeting ofUnitholders, scheduled for May 23, 2019, NMF plans to propose the election of one executive director andthree supervisory directors. For more details, please refer to the press release “Notice Concerning
Amendment of the Article of Incorporation and Election of Directors” announced on April 12, 2019.

(2) Changes in Asset Management Company Directors
Timely disclosure of changes in directors is made when the relevant details are determined. After theend of the 7th fiscal period (February 28, 2019), there were some changes in directors as shown below. For
more details, please refer to the press releases “Notice Concerning Changes of Director and Important
Employees in Asset Management Company” announced on March 1, 2019, “Notice Concerning Changesof Director in Asset Management Company” announced on March 5, 2019 and “Notice Concerning
Changes of Director and Important Employee in Asset Management Company” announced on March 15,
2019.
Appointments (as of April 1, 2019)
Name
Title (New)
Representative Director, Vice
President and Executive Officer
in charge of the Product Development
Department, Research & Analysis
Hiroyuki Kimura
Department, Investment Management
Planning Department, NMF
Investment Management Group, NPR
Investment Management Department,
and Chief Strategy Officer
Representative Director, Vice
President and Executive Officer
Koki Miurain charge of the Corporate Planning
Development and Finance &Accounting Department
Resignations (as of March 31, 2019)
Name

Title (New)Masato Yamauchi(Resignation)

Ken Okada(Resignation)

37

Title (Former)(New appointment)(New appointment)

Title (Former)
Representative Director and Senior
Management Executive Officer,
Supervisor of the ProductDevelopment Department, NMF
Investment Management Group, NPR
Investment Management Department,in charge of the Research & Analysis
Department, Acquisitions Department
and Investment Management Planning
Department, and Chief Strategy
Officer
Director and Managing Executive
Officer, Head of the NMF Investment
Management GroupNomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

Other changes (as of April 1, 2019)
Name

Title (New)Fumiki Kondo

Representative Director andSenior Managing Executive Officer
in charge of the International Business
Planning Department andInvestment Management Department

Daisuke KimuraManaging Executive Officer
in charge of the international affairs

Noriaki Ido

Director andManaging Executive Officer
in charge of the Acquisitions
Department, and Head of Client
Relations & Marketing Department

38

Title (Former)
Representative Director andSenior Managing Executive Officer
Supervisor of the International
Business Planning Section, Client
Relations & Marketing Department
and the Investment Management
Department
in charge of the Corporate Planning
Department and the Finance &Accounting Department
Director and Managing Executive
Officer in charge of the International
Business Planning Section and
Investment Management Department
Director andManaging Executive Officer
in charge of the Client Relations &Marketing Department, ProductDevelopment Department and NPR
Investment Management Department

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

5. Reference Information(1) Investment Status

6th fiscal period
7th fiscal period
As of August 31, 2018
As of February 28, 2019Area
As a percentage
As a percentage
Type of asset
Use
Total amount held
Total amount held
(Note 1)of total amount ofof total amount of(Millions of Yen)
(Millions of Yen)
assets (%)
assets (%)(Note 2)
(Note 2)
(Note 3)(Note 3)
Greater Tokyo area
107,0749.6
106,886
9.6
OfficeOther areas
21,458
1.9
21,375
1.9
properties
Subtotal
128,532
11.5
128,261
11.5
Greater Tokyo area
20,316
1.8
20,2301.8
RetailOther areas
12,161
1.1
12,150
1.1
properties
Subtotal
32,4782.9
32,381
2.9
Greater Tokyo area
36,193
3.2
36,055
3.2
Logistics
properties
Real estate
Subtotal
36,193
3.2
36,055
3.2
Greater Tokyo area
134,093
12.0
133,499
11.9
Residential
Other areas
30,673
2.7
31,5832.8
properties
Subtotal
164,766
14.7
165,082
14.8
Other areas
3,774
0.3
3,758
0.3
Hotel
properties
Subtotal
3,774
0.3
3,758
0.3
Greater Tokyo area
5,136
0.5
5,136
0.5
Other
properties
Subtotal
5,136
0.5
5,136
0.5
Greater Tokyo area
258,058
23.1
258,125
23.1
OfficeOther areas
51,0094.6
51,237
4.6
properties
Subtotal
309,067
27.6
309,362
27.7
Greater Tokyo area
80,8797.2
80,717
7.2
RetailOther areas
46,9254.2
50,316
4.5
properties
Real estate
Subtotal
127,804
11.4
131,033
11.7
in trust
Greater Tokyo area
114,154
10.2
113,346
10.1
Logistics
Other areas
3,408
0.3
3,385
0.3
properties
Subtotal
117,563
10.5
116,732
10.4
22,131
2.0
22,063
2.0
Residential Greater Tokyo area
properties
Subtotal
22,131
2.0
22,0632.0
Subtotal
947,449
84.7
949,867
85.0
Deposits and other assets
171,195
15.3
167,984
15.0
1,118,644
100.0
1,117,851
100.0
Total amount of assets
6th fiscal period
As of August 31, 2018
As a percentage
Amountof total amount(Millions of Yen)of assets (%)(Note 4)(Note 3)
Total amount of liabilities
Total amount of net assets

7th fiscal period
As of February 28, 2019As a percentage
Amountof total amount(Millions of Yen)of assets (%)(Note 4)(Note 3)546,808

48.9

548,00749.0

571,83651.1

569,843

51.0(Note 1) “Greater Tokyo area” refers to Tokyo, Kanagawa Prefecture, Chiba Prefecture and Saitama Prefecture. “Other areas” refers tocabinet-order-designated cities, prefectural capitals, and cities with a population of 100,000 persons or more as well as surrounding areas ofthese cities that are not included in the Greater Tokyo area. The same shall apply hereinafter.
(Note 2) Total amount held is the carrying amount (in the case of real estate and real estate in trust, the sum total amount of book value, after
depreciation).
(Note 3) The figures are rounded off to first decimal place. Accordingly, the sum may not be exactly 100.0%.
(Note 4) Total amount of liabilities and total amount of net assets are the amounts as stated in the balance sheet as total liabilities and total net assets.

39

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019(2) Investment Assets① Major Investment Securities
Not applicable.
② Investment Real Estate Properties
Real estate is listed together with beneficial interests in real estate trusts in ③ Other Major Investment
Assets, below.
③ Other Major Investment Assets
The following summarizes the real estate, etc. (278 properties) held as of February 28, 2019 (the end of
the 7th fiscal period) by NMF (this real estate and the beneficiary interests of trusts in which real estate
properties are the principal trust properties or the real estate that constitutes the underlying assets
thereof are hereinafter referred to as the “assets held at the end of the 7th fiscal period”). Unlessotherwise stated, the figures in the tables below are the figures as of February 28, 2019.

40

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

A. Overview of Portfolio and Leasing Status and Changes in Occupancy Rate(a) Overview of Portfolio and Leasing Status
The following is an overview of the portfolio and leasing status for the assets held at the end of the
7th fiscal period.
Number of properties

278

Gross leasable area (m2) (Note 1)

1,878,805.81

Gross leased area (m2) (Note 2)

1,865,794.52

Total number of tenants (Note 3)

1,297

Total of all contracted rent (Thousands of Yen) (Note 4)

5,322,680(Note 1) The sum total of the “leasable area” of each of the assets held at the end of the 7th fiscal period. “Leasable area” is the sum
total area of office buildings, retail facilities, logistics facilities, residential facilities, or hotels etc. leasable in each asset (including
the area of common-use space, etc., if leased). Leasable area is calculated based not on that presented in the registry, but thearea stated in the lease contract and the area calculated based on building completion drawings, etc. Accordingly, the leasablearea may not be the same as the floor area based on that presented in the registry and may exceed the floor area. In the case ofland with leasehold right, the land area based on that presented in the registry is used as contracted area. For the Shinjuku
Nomura Building, NEC Head Office Building and Musashiurawa Shopping Square the leasable area is the area calculated bymultiplying the building’s overall leasable area by the quasi co-ownership ratio of the beneficial interest in real estate trust
owned by NMF as of the end of the fiscal period. For the NRE Tennozu Building, since the rent under the master leaseagreement is calculated as the building’s overall rent multiplied by the ownership ratio of the common areas, the leasable area iscalculated as the building’s overall leasable area multiplied by the ownership ratio of the common areas. Land with leaseholdinterest indicates the land area in the registry as contracted space.
(Note 2) The sum total of “leased area” of each of the assets held at the end of the 7th fiscal period. “Leased area” is the area that is
actually leased to an end-tenant (The area stated in the lease contract; provided, however, that such be limited to the area ofoffice properties, retail properties, logistics properties, residential properties, or hotel properties etc. (if all rental units arecollectively leased, then the area of the entire rental units) and not include the leased area of parking space, etc. However, if themaster lessee has a rent-guaranteed master lease for some or all rental units, the space is included in leased area regardless ofwhether or not there is a lease agreement with an end-tenant.) in each asset. In the case of land with leasehold right, the leased
area of the land is shown. For the Shinjuku Nomura Building, NEC Head Office Building and Musashiurawa Shopping Square
the leased area is the area calculated by multiplying the building’s overall leased area by the quasi co-ownership ratio of thebeneficial interest in real estate trust owned by NMF as of the end of the fiscal period. For the NRE Tennozu Building, since
the rent under the master lease agreement is calculated as the building’s overall rent multiplied by the ownership ratio of thecommon areas, the leased area is calculated as the building’s overall leased area multiplied by the ownership ratio of thecommon areas.
(Note 3) The sum total of “total number of tenants” of each of the assets held at the end of the 7th fiscal period. In the calculation of“number of tenants,” when some or all rental units are collectively leased for the purpose of subleasing and the lessee in thelease agreement (master lease agreement) has concluded an agreement with an end-tenant (sublessee that is the actual user) for
subleasing the rental units, the lessee of the master lease agreement is counted as one tenant. However, in the case of assets
with a so-called pass-through master lease agreement, where the rent received from the lessee in the master lease agreement is
the same amount as the rent that the lessee receives from the end-tenant, the total number of end-tenants is shown. In addition,
if multiple rental units in a specific asset are leased to a specific tenant, this is counted as one tenant for the asset and, if
multiple assets are leased to a specific tenant, these are counted separately and the total of that number of tenants is shown. For
residential facilities or residential portions of “other” sector facilities, when some or all rental units are collectively leased for the
purpose of subleasing and the lessee in the lease agreement (master lease agreement) has concluded an agreement with an
end-tenant for subleasing the rental units, the lessee of the master lease agreement is counted as one tenant, and the total
number of tenants for the building as whole is shown.
(Note 4) The total amount of “total contracted rent” for February 2019 of each of the assets held at the end of the 7th fiscal period(amounts less than one thousand are truncated). “Total contracted rent” for February 2019 refers to the sum total of monthly
rent and common area charges in lease agreements actually concluded with end-tenants that are valid as of the last day of
February 2019 (This does not include parking space or other fees stated in parking space lease agreements or other suchagreements signed in addition to the tenant lease agreement. If common-use space, etc. is leased based on the lease agreement,
the rent for such is included and, if rent includes an amount equivalent to the fee for use of parking space, such amount isincluded. In addition, if the master lessee has a rent-guaranteed master lease for some or all rental units, the rent for the space isbased on the rent, etc., in the lease agreement concluded with the master lessee.). Furthermore, regarding tenants who havebeen exempt from rent payment for a certain period of time in their agreements, such exemption period is not considered in
the table above, and the rent is calculated based on the monthly rent and common area charges payable immediately after the
exemption period ends. In addition, the standard level of rent is used for tenants with sales-based rent and for tenants with41

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019variable rent including cases in which a part of rent is variable rent. For the Shinjuku Nomura Building, NEC Head Office
Building and Musashiurawa Shopping Square the total contracted rent is calculated by multiplying the building’s overall rent
revenues by the quasi co-ownership ratio of the beneficial interest in real estate trust owned by NMF as of the end of the fiscal
period. For the NRE Tennozu Building, the the total contracted rent is calculated as the building’s overall rent revenues multiplied by theratio of the common areas that NMF owns through the trustee.

(b) Changes in Occupancy Rate
The following is the changes in the occupancy rate of real estate under management held by NMF.

Portfolio occupancy rate
(at end of fiscal period) (%)

Portfolio occupancy rate
(at end of fiscal period) (%)

February 29, 2016(end of 1st fiscal
period)August 31, 2016(end of 2nd fiscal
period)February 28, 2017(end of 3rd fiscal
period)August 31, 2017(end of 4th fiscal
period)February 28, 2018(end of 5th fiscal
period)

98.9

99.1

99.2

98.4

98.6

August 31, 2018(end of 6th fiscal
period)February 28, 2019(end of 7th fiscal
period)

99.3

99.3

42

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

B. Price and Investment Share
The following is an overview of the assets held at the end of the 7th fiscal period (acquisition price,
carrying amount, opinion of value at end of period, investment share and appraiser).

Use

Area

Property nameCarrying amount(Millions of Yen)
(Note 2)

Opinion of value
at end of period(Millions of Yen)
(Note 3)

Investment
share
(%)
(Note 4)

Appraiser
The Tanizawa Sogo
Appraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Japan Real Estate
InstituteJapan Real Estate
Institute
Daiwa Real EstateAppraisal Co., Ltd.
Japan Real Estate
Institute
Daiwa Real EstateAppraisal Co., Ltd.
Appraisal Firm A
Square Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Japan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan Real Estate
InstituteJapan Real Estate
Institute
Daiwa Real EstateAppraisal Co., Ltd.
Japan Real Estate
InstituteJapan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
Institute
Daiwa Real EstateAppraisal Co., Ltd.
Appraisal Firm A
Square Ltd.
Japan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.

Shinjuku Nomura Building (Note5)

43,90046,43749,700

4.7

NRE Tennozu Building

20,50020,48622,000

2.1

Kojimachi Millennium Garden

26,70026,45227,8002.6

10,00010,142

11,9001.1

10,40010,447

10,900

1.0

Secom Medical Building

11,10010,843

11,600

1.1

NMF Shiba Building

7,040

7,050

7,280

0.7

Nishi-Shinjuku Showa Building

8,140

8,138

8,050

0.8

NRE Shibuya Dogenzaka Building

5,310

5,311

5,770

0.5

Iwamoto-cho Toyo Building

4,050

4,055

4,610

0.4

NMF Surugadai Building

4,690

4,675

5,560

0.5

PMO Nihonbashi Honcho

4,320

4,162

4,940

0.5

PMO Nihonbashi Kayabacho

5,010

4,852

5,930

0.6

NMF Gotanda Ekimae Building

4,430

4,640

5,090

0.5

NRE Higashi-nihonbashi Building

3,570

3,594

3,590

0.3

PMO Akihabara

4,240

4,081

5,130

0.5

Hatchobori NF Building

2,480

2,451

2,530

0.2

4,160

4,218

4,230

0.4

2,830

2,824

3,010

0.3

PMO Hatchobori

2,880

2,760

3,340

0.3

PMO Nihonbashi Odenmacho

2,210

2,129

2,630

0.2

PMO Higashi-nihonbashi

1,690

1,606

1,960

0.2

NRE Ueno Building

6,470

6,511

6,810

0.6

NF Hongo Building.

4,890

4,858

5,070

0.5

Crystal Park Building

3,390

3,352

3,370

0.3

NMF Kichijoji Honcho Building

1,780

1,857

2,060

0.2

Faret Tachikawa Center Square

3,850

3,823

4,490

0.4

7,830

7,946

9,300

0.9 Japan Valuers Co., Ltd.

5,460

5,646

7,100

0.7

2,620

2,803

3,070

0.3

PMO Tamachi

6,210

6,179

7,310

0.7

PMO Ginza Hatchome

3,970

3,959

4,690

0.4

PMO Shibakoen

3,900

3,876

4,570

0.4

44,10044,19845,3004.3

18,20018,08318,5001.8

10,40010,46912,800NMF
Shinjuku
Minamiguchi
Building
NMF Shibuya Koen-dori Building

Greater
Office Tokyo
area

Acquisition price(Millions of Yen)
(Note 1)

NMF
Kanda
Iwamoto-cho
Building
NMF Takanawa Building

NMF Kawasaki Higashiguchi
Building
NMF
Yokohama
Nishiguchi
Building
NMF Shin-Yokohama Building

NEC Head Office Building (Note6)
Harumi Island Triton Square
Office Tower Y
NMF Aoyama 1-chome Building

43

Japan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
Institute
Daiwa Real EstateAppraisal Co., Ltd.

Daiwa Real EstateAppraisal Co., Ltd.
Japan Real Estate
1.2
Institute

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

Use

Area

Acquisition price(Millions of Yen)
(Note 1)

Property nameNMF Takebashi Building
Harumi Island
Office Tower Z

GreaterTokyo
area

Office

Other
areas

TritonRetailOpinion of value
at end of period(Millions of Yen)
(Note 3)

8,330

8,287

8,850

8,180

8,090

8,650

NMF Kayabacho Building

6,070

6,110

7,020

NMF Shinjuku EAST Building

5,710

5,680

6,210

NMF Shiba-Koen Building

3,620

3,777

4,020

NMF Ginza 4-chome Building

1,850

1,883

2,060

Faret East Building

1,850

1,863

2,010

PMO Shinnihonbashi

4,440

4,446

4,920

PMO Hirakawacho

3,410

3,423

3,750

PMO Nihonbashi Mitsukoshi-mae

4,310

4,362

4,780

PMO Shibadaimon

2,130

2,154

2,310

Sapporo North Plaza

6,250

6,315

7,600

NRE Sapporo Building

4,140

3,845

4,910

NMF Sendai Aoba-dori Building

2,030

2,203

2,510

NMF Utsunomiya Building

2,320

2,543

2,380

NMF Nagoya Fushimi Building

2,240

2,089

2,420

NMF Nagoya Yanagibashi Building

2,280

2,345

2,190

Omron Kyoto Center Building

18,30018,05318,600SORA Shin-Osaka 21

12,10011,943

12,300

NRE Osaka Building

6,100

7,141

6,390

NRE Nishi-Umeda Building

3,450

3,496

3,670

NRE Yotsubashi Building

4,000

4,065

4,270

NRE Hiroshima Building

2,280

2,281

2,690

NMF Hakata Ekimae Building

4,210

4,170

5,200

NMF Tenjin-Minami Building

2,230

2,115

2,370

434,550437,624

474,070

Yokosuka More’s City

13,64013,814

15,900

Recipe SHIMOKITA

10,407

10,478

11,100Kawasaki More’s

6,080

6,819

8,750

EQUINIA Shinjuku

4,260

4,307

4,950

EQUINA Ikebukuro

3,990

4,051

4,480

covirna machida

3,440

3,792

4,280

Nitori Makuhari

3,080

2,791

3,890

Konami Sports Club Fuchu

2,730

2,574

3,350

FESTA SQUARE

2,600

2,332

3,380

GEMS Shibuya

2,490

2,412

2,650

Sundai Azamino

1,700

1,539

2,040

EQUINIA Aobadai

1,560

1,606

2,050

1,000

965

1,510

Office subtotal

GreaterTokyo
area

SquareCarrying amount(Millions of Yen)
(Note 2)

Megalos Kanagawa

44

Investment
share
(%)
(Note 4)

Appraiser

The Tanizawa Sogo
0.8 Appraisal Co., Ltd.
Daiwa Real Estate
0.8 Appraisal Co., Ltd.
Japan Real Estate
0.7 Institute
The Tanizawa Sogo
0.6 Appraisal Co., Ltd.
Japan Real Estate
0.4 Institute
The Tanizawa Sogo
0.2 Appraisal Co., Ltd.
The Tanizawa Sogo
0.2 Appraisal Co., Ltd.
Japan Real Estate
0.5 InstituteJapan Real Estate
0.4 InstituteJapan Real Estate
0.5 InstituteJapan Real Estate
0.2 InstituteJapan Real Estate
0.7 InstituteJapan Real Estate
0.5 Institute
JLL Morii Valuation &0.2 Advisory K.K.
The Tanizawa Sogo
0.2 Appraisal Co., Ltd.
Japan Real Estate
0.2 InstituteJapan Valuers Co.,
0.2 Ltd.
Japan Real Estate
1.8 InstituteJapan Valuers Co.,
1.2 Ltd.
The Tanizawa Sogo
0.6 Appraisal Co., Ltd.
Daiwa Real Estate
0.3 Appraisal Co., Ltd.
The Tanizawa Sogo
0.4 Appraisal Co., Ltd.
The Tanizawa Sogo
0.3 Appraisal Co., Ltd.
Japan Real Estate
0.5 InstituteJapan Real Estate
0.2 Institute
44.9
The Tanizawa Sogo
1.5 Appraisal Co., Ltd.
Japan Valuers Co.,
1.1 Ltd.
The Tanizawa Sogo
0.8 Appraisal Co., Ltd.
Daiwa Real Estate
0.5 Appraisal Co., Ltd.
Daiwa Real Estate
0.4 Appraisal Co., Ltd.
Japan Real Estate
0.4 InstituteJapan Real Estate
0.4 InstituteDaiwa Real Estate
0.3 Appraisal Co., Ltd.
Japan Real Estate
0.3 InstituteDaiwa Real Estate
0.3 Appraisal Co., Ltd.
Japan Real Estate
0.2 InstituteJapan Real Estate
0.2 InstituteJapan Real Estate
0.1 InstituteNomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

Use

Area

Acquisition price(Millions of Yen)
(Note 1)

Property name

Japan Real Estate
0.3 InstituteDaiwa Real Estate
0.2 Appraisal Co., Ltd.
Japan Real Estate
0.1 Institute
The Tanizawa Sogo
0.1 Appraisal Co., Ltd.
Daiwa Real Estate
0.1 Appraisal Co., Ltd.
Japan Real Estate
0.1 Institute

3,250

Mitsubishi Motors Chofu（Land）

1,760

1,776

1,760

Mitsubishi Motors Nerima（Land）

1,240

1,251

1,400

950

959

1,220

850

859

880

800

808

885

Mitsubishi Motors Higashikurume（Land）

800

808

889

Mitsubishi Motors Setagaya（Land）

770

779

989

Mitsubishi（Land）

600

606

691

Japan Real
0.1 InstituteJapan Real
0.1 InstituteJapan Real
0.1 Institute

450

455

531

The Tanizawa Sogo
0.1 Appraisal Co., Ltd.

370

375

388

Japan Real
0.0 Institute

350

355

392

The Tanizawa Sogo
0.0 Appraisal Co., Ltd.

200

204

183

MotorsMotors

Katsushika

Sekimachi

Mitsubishi Motors Higashiyamato（Land）
Mitsubishi Motors Motosumiyoshi（Land）
Mitsubishi
MotorsKawagoe（Land）
Motors

Edogawa

Mitsubishi Motors Sayama（Land）

160

163

181

NRE Kichijoji Building

10,410

10,315

11,100GEMS Ichigaya

2,080

2,068

2,110

Sagamihara Shopping Center

6,840

6,849

6,960

Musashiurawa(Note 6)

2,720

2,628

2,870

700

747

779

GEMS Daimon

2,060

2,057

2,110

GEMS Kanda

1,500

1,500

1,530

Summit Store Mukodaicho

5,100

5,125

5,190

Universal CityWalk Osaka

15,50015,392

18,300Izumiya Senrioka

8,930

8,472

11,300Izumiya Yao

4,406

4,095

5,590

Izumiya Obayashi

3,020

3,222

4,120

Ichibancho stear

4,700

4,520

5,650

EQUINIA Aobadori

1,640

1,406

1,970

MEL Building

1,060

1,052

1,200

nORBESA

8,500

8,552

8,540

Nakaza Cui-daore Building

11,60012,150

11,100

NMF Kobe Myodani Building

3,560

3,601

3,600

Shopping

SquareSummit Store Naritahigashi (Land)

163,343

163,414

185,988

Landport Urayasu

17,40016,381

22,000Landport Itabashi

15,71014,81219,800Landport Kawagoe

13,70012,31016,600Landport Atsugi

11,410

10,547

12,000

Sagamihara Tana Logistics Center

10,60010,004

12,400Retail subtotal

Greater
Logistics Tokyo
area

Appraiser

2,764

Mitsubishi（Land）

Other
areas

Investment
share
(%)
(Note 4)

2,740

Mitsubishi（Land）

RetailOpinion of value
at end of period(Millions of Yen)
(Note 3)

Mitsubishi Motors Meguro（Land）

Mitsubishi
MotorsKawasaki（Land）
Mitsubishi Motors Takaido（Land）

GreaterTokyo
area

Carrying amount(Millions of Yen)
(Note 2)45

EstateEstateEstateEstateDaiwa Real Estate
0.0 Appraisal Co., Ltd.
The Tanizawa Sogo
0.0 Appraisal Co., Ltd.
Daiwa Real Estate
1.1 Appraisal Co., Ltd.
Daiwa Real Estate
0.2 Appraisal Co., Ltd.
Japan Real Estate
0.7 Institute
The Tanizawa Sogo
0.3 Appraisal Co., Ltd.
Japan Real Estate
0.1 InstituteDaiwa Real Estate
0.2 Appraisal Co., Ltd.
Daiwa Real Estate
0.1 Appraisal Co., Ltd.
Japan Valuers Co.,
0.5 Ltd.
Japan Valuers Co.,
1.7 Ltd.
The Tanizawa Sogo
1.1 Appraisal Co., Ltd.
The Tanizawa Sogo
0.5 Appraisal Co., Ltd.
The Tanizawa Sogo
0.4 Appraisal Co., Ltd.
The Tanizawa Sogo
0.5 Appraisal Co., Ltd.
The Tanizawa Sogo
0.2 Appraisal Co., Ltd.
Japan Real Estate
0.1 InstituteJapan Real Estate
0.8 InstituteJapan Valuers Co.,
1.1 Ltd.
Japan Valuers Co.,
0.3 Ltd.
17.6
The Tanizawa Sogo
2.1 Appraisal Co., Ltd.
The Tanizawa Sogo
1.9 Appraisal Co., Ltd.
Japan Real Estate
1.6 Institute
The Tanizawa Sogo
1.1 Appraisal Co., Ltd.
Daiwa Real Estate
1.2 Appraisal Co., Ltd.

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

Use

Area

Property name

Other
areas

Opinion of value
at end of period(Millions of Yen)
(Note 3)

Investment
share
(%)
(Note 4)

Appraiser

8,039

11,100Landport Hachioji

8,250

7,500

9,840

Landport Kasukabe

7,340

6,527

8,620

Atsugi Minami Logistics Center B
Tower

4,590

4,256

5,730

Hanyu Logistics Center

3,810

3,477

4,400

Kawaguchi Logistics Center B
Tower

3,750

3,637

4,630

Japan Real Estate
1.1 InstituteJapan Real Estate
0.9 InstituteJapan Real Estate
0.8 Institute
The Tanizawa Sogo
0.5 Appraisal Co., Ltd.
Daiwa Real Estate
0.4 Appraisal Co., Ltd.
Daiwa Real Estate
0.4 Appraisal Co., Ltd.

Kawaguchi Logistics Center A
Tower

2,830

2,781

3,510

Daiwa Real Estate
0.3 Appraisal Co., Ltd.

Atsugi Minami Logistics Center A
Tower

2,690

2,560

3,440

Kawaguchi Ryoke Logistics Center

10,79010,50913,200Landport Kashiwa Shonan II

10,80010,72011,400Landport Kashiwa Shonan I

9,900

9,896

10,100Landport Hachioji II

9,230

9,284

9,330

Landport Iwatsuki

6,090

6,153

6,110

3,460

3,385

3,890

161,050

152,787

188,100

3,400

3,283

3,450

PROUD FLAT Yoyogi Uehara

989

970

946

PROUD FLAT Hatsudai

713

691

771

750

722

694

PROUD FLAT Gakugei Daigaku

746

714

785

PROUD
Gyoninzaka

939

903

1,020

PROUD FLAT Sumida Riverside

2,280

2,162

2,510

PROUD FLAT Kagurazaka

1,590

1,520

1,740

PROUD FLAT Waseda

1,110

1,056

1,210

947

904

937

PROUD FLAT Sangen Jaya

1,190

1,133

1,260

PROUD FLAT Kamata

1,160

1,089

1,250

PROUD FLAT Kamata II

3,320

3,141

3,390

PROUD FLAT Shinotsuka

623

585

547

PROUD
Shirakawa

928

877

937

Daiwa Real Estate
0.3 Appraisal Co., Ltd.
Daiwa Real Estate
0.1 Appraisal Co., Ltd.
Daiwa Real Estate
0.1 Appraisal Co., Ltd.
Daiwa Real Estate
0.1 Appraisal Co., Ltd.
Daiwa Real Estate
0.1 Appraisal Co., Ltd.
Daiwa Real Estate
0.1 Appraisal Co., Ltd.
Daiwa Real Estate
0.2 Appraisal Co., Ltd.
Daiwa Real Estate
0.2 Appraisal Co., Ltd.
Daiwa Real Estate
0.1 Appraisal Co., Ltd.
Daiwa Real Estate
0.1 Appraisal Co., Ltd.
Daiwa Real Estate
0.1 Appraisal Co., Ltd.
Daiwa Real Estate
0.1 Appraisal Co., Ltd.
The Tanizawa Sogo
0.3 Appraisal Co., Ltd.
Daiwa Real Estate
0.1 Appraisal Co., Ltd.
Daiwa Real Estate
0.1 Appraisal Co., Ltd.

PROUD FLAT Monzen Nakacho
II

652

619

605

Daiwa Real Estate
0.1 Appraisal Co., Ltd.

PROUD FLAT Monzen Nakacho
I

1,030

970

955

PROUD FLAT Fujimidai

1,470

1,400

1,660

PROUD FLAT Asakusa Komagata

1,920

1,803

2,170

PROUD FLAT Yokohama

2,090

1,971

2,210

PROUD FLAT Kamioooka

2,710

2,559

2,690

PROUD FLAT Tsurumi II

1,650

1,554

1,780

Onodai

Logistics

Hirakata Kuzuha Logistics Center

Logistics subtotal
PROUD
Takanawa

PROUD
Sakuragaoka

PROUD
Kawadacho

Greater
Resident
Tokyo
ial
area

Carrying amount(Millions of Yen)
(Note 2)

8,700

Sagamihara
CenterGreaterTokyo
Logistics area

Acquisition price(Millions of Yen)
(Note 1)FLAT

Shirokane

FLAT

ShibuyaFLAT

MeguroFLATFLAT

Shinjuku

Kiyosumi

46

The Tanizawa Sogo
0.3 Appraisal Co., Ltd.
JLL Morii Valuation &1.2 Advisory K.K.
Japan Valuers Co.,
1.1 Ltd.
Japan Valuers Co.,
1.0 Ltd.
Japan Valuers Co.,
0.9 Ltd.
Japan Valuers Co.,
0.6 Ltd.
Daiwa Real Estate
0.4 Appraisal Co., Ltd.
17.8

Daiwa Real Estate
0.1 Appraisal Co., Ltd.
Japan Real Estate
0.2 Institute
The Tanizawa Sogo
0.2 Appraisal Co., Ltd.
Daiwa Real Estate
0.2 Appraisal Co., Ltd.
Daiwa Real Estate
0.3 Appraisal Co., Ltd.
Japan Real Estate
0.2 InstituteNomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

Use

Area

Acquisition price(Millions of Yen)
(Note 1)

Property name

1,102

991

PRIME URBAN Akasaka

938

929

947

PRIME URBAN Tamachi

972

946

960

1,830

1,762

1,960

PRIME URBAN Yoyogi

359

347

333

PRIME URBAN Ebisu II

1,140

1,125

1,310

PRIME URBAN Bancho

1,090

1,069

1,110

679

661

662

PRIME URBAN Iidabashi

2,040

1,973

1,820

PRIME URBAN Ebisu

1,260

1,251

1,280

PRIME URBAN Naka Meguro

1,410

1,388

1,380

PRIME URBAN Gakugei Daigaku

775

754

810

PRIME URBAN Senzoku

474

466

471

PRIME URBAN Meguro Riverside

414

394

441

PRIME URBAN Meguro Ohashi
Hills

2,970

2,863

3,140

PRIME URBAN Meguro Aobadai

1,310

1,279

1,550

PRIME URBAN Gakugei Daigaku
II

1,080

1,054

1,230

PRIME URBAN Naka Meguro II

2,850

2,828

3,160

PRIME URBAN Kachidoki

2,570

2,589

2,430

PRIME URBAN Shinkawa

2,100

2,075

2,300

PRIME URBAN
Yokoyamacho

Nihonbashi

4,220

4,025

4,560

PRIME URBAN
HamachoNihonbashi

1,550

1,505

1,770

PRIME URBAN Hongo Ikizaka

557

535

610

PRIME URBAN Hakusan

PRIME URBAN Shibaura LOFTPRIME URBAN Chiyoda Fujimi

GreaterTokyo
area

Opinion of value
at end of period(Millions of Yen)
(Note 3)

1,100

PRIME URBAN Azabu Juban

Residential

Carrying amount(Millions of Yen)
(Note 2)

Investment
share
(%)
(Note 4)

Appraiser

Chuo Real Estate
0.1 Appraisal Co., Ltd.
Chuo Real Estate
0.1 Appraisal Co., Ltd.
Chuo Real Estate
0.1 Appraisal Co., Ltd.
Japan Valuers Co.,
0.2 Ltd.
Chuo Real Estate
0.0 Appraisal Co., Ltd.
Japan Real Estate
0.1 InstituteChuo Real Estate
0.1 Appraisal Co., Ltd.
Chuo Real Estate
0.1 Appraisal Co., Ltd.
Chuo Real Estate
0.2 Appraisal Co., Ltd.
Chuo Real Estate
0.1 Appraisal Co., Ltd.
Chuo Real Estate
0.1 Appraisal Co., Ltd.
Daiwa Real Estate
0.1 Appraisal Co., Ltd.
Daiwa Real Estate
0.0 Appraisal Co., Ltd.
Daiwa Real Estate
0.0 Appraisal Co., Ltd.
Japan Valuers Co.,
0.3 Ltd.
Japan Real Estate
0.1 InstituteJapan Real Estate
0.1 InstituteJapan Real Estate
0.3 InstituteChuo Real Estate
0.2 Appraisal Co., Ltd.
Japan Valuers Co.,
0.2 Ltd.
Japan Valuers Co.,
0.4 Ltd.

866

818

961

PRIME URBAN Yotsuya Gaien
Higashi

1,490

1,470

1,400

PRIME URBAN Nishi Shinjuku I

1,090

1,063

1,160

PRIME URBAN Nishi Shinjuku II

885

857

879

PRIME
URBAN
Naitomachi

430

431

430

PRIME URBAN Nishi Waseda

421

398

451

PRIME URBAN Shinjuku Ochiai

594

596

637

PRIME URBAN Mejiro

1,430

1,396

1,590

PRIME URBAN Kagurazaka

2,900

2,784

3,230

PRIME URBAN Sangen Jaya III

718

721

632

PRIME
URBAN
Karasuyama

717

738

634

PRIME URBAN Sangen Jaya

724

702

710

PRIME
URBAN
Karasuyama

667

635

759

Japan Real Estate
0.2 InstituteJapan Valuers Co.,
0.1 Ltd.
Japan Valuers Co.,
0.1 Ltd.
Daiwa Real Estate
0.1 Appraisal Co., Ltd.
Daiwa Real Estate
0.1 Appraisal Co., Ltd.
The Tanizawa Sogo
0.1 Appraisal Co., Ltd.
Daiwa Real Estate
0.0 Appraisal Co., Ltd.
Daiwa Real Estate
0.0 Appraisal Co., Ltd.
Japan Valuers Co.,
0.1 Ltd.
Japan Real Estate
0.2 InstituteJapan Real Estate
0.3 InstituteDaiwa Real Estate
0.1 Appraisal Co., Ltd.
Daiwa Real Estate
0.1 Appraisal Co., Ltd.
Daiwa Real Estate
0.1 Appraisal Co., Ltd.
Japan Valuers Co.,
0.1 Ltd.

549

523

574

Daiwa Real Estate
0.1 Appraisal Co., Ltd.

338

324

357

Daiwa Real Estate
0.0 Appraisal Co., Ltd.

Shinjuku

ChitoseMinami

PRIME
Galleria

URBAN

Karasuyama

PRIME
Court

URBAN

Karasuyama

47Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

Use

Area

Acquisition price(Millions of Yen)
(Note 1)

Property name

Opinion of value
at end of period(Millions of Yen)
(Note 3)

Investment
share
(%)
(Note 4)

Appraiser

746

716

733

1,390

1,337

1,580

494

488

403

PRIME URBAN Osaki

1,860

1,825

1,840

PRIME URBAN Oimachi II

1,040

1,075

1,020

PRIME URBAN Yukigaya

951

945

736

PRIME URBAN Omori

905

863

852

PRIME
Minami

774

734

719

Japan Valuers Co.,
0.1 Ltd.
Japan Real Estate
0.1 InstituteDaiwa Real Estate
0.0 Appraisal Co., Ltd.
Daiwa Real Estate
0.2 Appraisal Co., Ltd.
Daiwa Real Estate
0.1 Appraisal Co., Ltd.
Daiwa Real Estate
0.1 Appraisal Co., Ltd.
Daiwa Real Estate
0.1 Appraisal Co., Ltd.
Japan Valuers Co.,
0.1 Ltd.

1,720

1,674

1,790

Japan Real
0.2 Institute

498

471

543

1,060

1,057

789

PRIME URBAN Nishi Ogikubo

414

402

422

PRIME URBAN Nishi Ogikubo II

1,790

1,755

1,920

PRIME URBAN Otsuka

730

703

685

PRIME URBAN Komagome

437

434

391

PRIME URBAN Ikebukuro

3,800

3,653

4,160

PRIME
Nakacho

2,420

2,330

2,440

PRIME URBAN Kameido

779

736

758

PRIME URBAN Sumiyoshi

632

597

609

PRIME URBAN Mukojima

528

526

465

PRIME URBAN Kinshi Koen

1,290

1,208

1,220

PRIME URBAN Kinshicho

758

722

720

PRIME URBAN Hirai

722

678

692

PRIME URBAN Kasai

640

606

617

PRIME URBAN Kasai II

981

924

900

PRIME URBAN Kasai East

1,140

1,077

1,230

PRIME
URBAN
Kuyakushomae

1,080

1,021

1,170

PRIME
Funabashi

URBAN

ChitosePRIME URBAN Yoga
PRIME URBAN Shinagawa Nishi

URBAN

Denenchofu

PRIME
URBAN
Kamiikedai

Nagahara

PRIME
URBAN
Kamitakada

NakanoPRIME URBAN Takaido

Greater
Resident
Tokyo
ial
area

Carrying amount(Millions of Yen)
(Note 2)

URBAN

MonzenItabashi

384

385

301

PRIME URBAN Machiya South
Court

1,910

1,858

1,980

PRIME URBAN Musashi Koganei

1,910

1,910

2,010

PRIME URBAN Musashino Hills

1,280

1,277

1,340

PRIME URBAN Koganei Honcho

791

763

853

PRIME URBAN Kumegawa

1,520

1,412

1,500

PRIME URBAN Musashi Kosugi
comodo

1,940

1,962

2,200

962

941

1,060

PRIME URBAN Shinyurigaoka

1,020

967

1,220

PRIME URBAN Tsurumi Teraya

493

489

398

PRIME URBAN Urayasu

804

767

765

PRIME URBAN Asakusa

PRIME URBAN Kawasaki

48

EstateJapan Valuers Co.,
0.1 Ltd.
Daiwa Real Estate
0.1 Appraisal Co., Ltd.
Daiwa Real Estate
0.0 Appraisal Co., Ltd.
Japan Real Estate
0.2 InstituteDaiwa Real Estate
0.1 Appraisal Co., Ltd.
Chuo Real Estate
0.0 Appraisal Co., Ltd.
Japan Real Estate
0.4 InstituteChuo Real Estate
0.2 Appraisal Co., Ltd.
Chuo Real Estate
0.1 Appraisal Co., Ltd.
Chuo Real Estate
0.1 Appraisal Co., Ltd.
Chuo Real Estate
0.0 Appraisal Co., Ltd.
Chuo Real Estate
0.1 Appraisal Co., Ltd.
Chuo Real Estate
0.1 Appraisal Co., Ltd.
Chuo Real Estate
0.1 Appraisal Co., Ltd.
Chuo Real Estate
0.1 Appraisal Co., Ltd.
Chuo Real Estate
0.1 Appraisal Co., Ltd.
Daiwa Real Estate
0.1 Appraisal Co., Ltd.
Japan Valuers Co.,
0.1 Ltd.
Chuo Real Estate
0.0 Appraisal Co., Ltd.
Japan Real Estate
0.2 InstituteJapan Valuers Co.,
0.2 Ltd.
Japan Valuers Co.,
0.1 Ltd.
Japan Valuers Co.,
0.1 Ltd.
Japan Real Estate
0.1 InstituteJapan Valuers Co.,
0.2 Ltd.
Japan Valuers Co.,
0.1 Ltd.
Japan Valuers Co.,
0.1 Ltd.
Japan Real Estate
0.0 InstituteJapan Real Estate
0.1 InstituteNomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

Use

Area

GreaterTokyo
area

Acquisition price(Millions of Yen)
(Note 1)

Property name

633

607

588

PRIME URBAN Gyotoku II

730

695

691

PRIME URBAN Gyotoku Ekimae

488

464

461

PRIME URBAN Gyotoku Ekimae
II

469

453

506

PRIME URBAN Gyotoku III

747

730

811

PRIME URBAN Nishi Funabashi

761

709

732

PRIME URBAN Kawaguchi

1,580

1,512

1,710

PROUD FLAT Hatchobori

920

934

1,050

PROUD FLAT Itabashi Honcho

720

728

828

PRIME URBAN Meguro Mita

1,058

1,124

1,110

Fukasawa House Towers H&I

7,140

7,055

7,530

PRIME URBAN Toyosu

5,290

5,150

5,440

PRIME URBAN
Kayabacho

2,850

2,802

2,900

1,320

1,293

1,330

1,310

1,275

1,420

1,300

1,387

1,310

PROUD FLAT Omori Ⅲ

1,110

1,142

1,250

PROUD FLAT Kinshicho

785

809

920

PROUD FLAT Sangenjaya II

2,750

2,832

2,930

PROUD FLAT Sotkanda

2,280

2,365

2,500

PROUD FLAT Noborito

1,216

1,272

1,320

PROUD FLAT Yoyogi Hachiman

966

999

1,060

PROUD FLAT Nakaochiai

844

879

892

PROUD FLAT Itsutsubashi

652

597

711

PROUD FLAT Kawaramachi

735

668

677

PROUD FLAT Shin Osaka

1,620

1,488

1,730

PRIME URBAN Kita Juyo Jo

274

255

267

PRIME URBAN Odori Koen I

502

466

476

PRIME URBAN Odori Koen II

334

312

293

PRIME URBAN Kita Juichi Jo

547

502

603

PRIME URBAN Miyanosawa

475

434

504

PRIME URBAN Odori Higashi

394

364

431

PRIME URBAN Chiji Kokan

249

226

279

PRIME URBAN Maruyama

229

209

233

PRIME URBAN Kita Nijuyo Jo

437

400

471

PRIME URBAN Sapporo Idaimae

616

566

654

4,480

4,145

4,650

1,730

1,586

1,860

Nihonbashi

PRIME URBAN Musashi Koganei
II
PRIME URBAN Gakugei daigaku
parkfront

Other
areas

Opinion of value
at end of period(Millions of Yen)
(Note 3)PRIME URBAN Gyotoku I

PRIME URBAN Yoga II

Residential

Carrying amount(Millions of Yen)
(Note 2)PRIME
Riverfront

URBAN

SapporoPRIME URBAN Kita Sanjo Dori49

Investment
share
(%)
(Note 4)

Appraiser

Japan Real Estate
0.1 InstituteJapan Real Estate
0.1 InstituteJapan Real Estate
0.0 InstituteJapan Real Estate
0.0 InstituteJapan Real Estate
0.1 InstituteJapan Real Estate
0.1 InstituteJapan Valuers Co.,
0.2 Ltd.
Japan Real Estate
0.1 InstituteJapan Real Estate
0.1 InstituteJapan Valuers Co.,
0.1 Ltd.
Daiwa Real Estate
0.7 Appraisal Co., Ltd.
Daiwa Real Estate
0.5 Appraisal Co., Ltd.
Daiwa Real Estate
0.3 Appraisal Co., Ltd.
The Tanizawa Sogo
0.1 Appraisal Co., Ltd.
The Tanizawa Sogo
0.1 Appraisal Co., Ltd.
Daiwa Real Estate
0.1 Appraisal Co., Ltd.
JLL Morii Valuation &0.1 Advisory K.K.
JLL Morii Valuation &0.1 Advisory K.K.
JLL Morii Valuation &0.3 Advisory K.K.
JLL Morii Valuation &0.2 Advisory K.K.
JLL Morii Valuation &0.1 Advisory K.K.
JLL Morii Valuation &0.1 Advisory K.K.
The Tanizawa Sogo
0.1 Appraisal Co., Ltd.
Daiwa Real Estate
0.1 Appraisal Co., Ltd.
Japan Real Estate
0.1 InstituteJapan Real Estate
0.2 Institute
The Tanizawa Sogo
0.0 Appraisal Co., Ltd.
Japan Real Estate
0.0 InstituteJapan Real Estate
0.0 InstituteJapan Valuers Co.,
0.1 Ltd.
Japan Valuers Co.,
0.0 Ltd.
Japan Valuers Co.,
0.0 Ltd.
Japan Valuers Co.,
0.0 Ltd.
Japan Valuers Co.,
0.0 Ltd.
Japan Valuers Co.,
0.0 Ltd.
Japan Valuers Co.,
0.1 Ltd.
Japan Valuers Co.,
0.4 Ltd.
Japan Valuers Co.,
0.2 Ltd.

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

Use

Area

Property name
PRIME
IcchomeResident
ial

Other
areas

Acquisition price(Millions of Yen)
(Note 1)URBAN

Nagamachi

Other

Japan Valuers Co.,
0.1 Ltd.
Japan Valuers Co.,
0.0 Ltd.
Japan Real Estate
0.1 InstituteChuo Real Estate
0.1 Appraisal Co., Ltd.
Japan Valuers Co.,
0.1 Ltd.
Japan Valuers Co.,
0.1 Ltd.
Japan Valuers Co.,
0.2 Ltd.
Japan Valuers Co.,
0.4 Ltd.
Japan Real Estate
0.2 InstituteDaiwa Real Estate
0.1 Appraisal Co., Ltd.
Daiwa Real Estate
0.0 Appraisal Co., Ltd.
Daiwa Real Estate
0.0 Appraisal Co., Ltd.
Daiwa Real Estate
0.0 Appraisal Co., Ltd.
Daiwa Real Estate
0.1 Appraisal Co., Ltd.
Daiwa Real Estate
0.5 Appraisal Co., Ltd.

PRIME URBAN Yaotome Chuo

466

426

442

PRIME URBAN
Amamiya

949

941

942

PRIME URBAN Aoi

712

678

666

PRIME URBAN Kanayama

553

510

604

PRIME URBAN Tsurumai

1,020

937

1,090

PRIME URBAN Kamimaezu

1,590

1,479

1,660

PRIME URBAN Izumi

3,770

3,517

4,030

1,810

1,689

1,890

PRIME URBAN Hakata

588

547

620

PRIME URBAN Yakuin Minami

265

245

282

PRIME URBAN Kashii

398

364

342

PRIME URBAN Hakata Higashi

622

572

527

PRIME URBAN Chihaya

604

567

566

Serenite Shinsaibashi Grande

5,567

5,814

5,630

192,902

187,145

199,676

3,600

3,758

3,850

Japan
0.4 Ltd.

3,600

3,758

3,850

0.4

4,900

5,136

5,310

Japan Real
0.5 Institute

4,900

5,136

5,310

0.5

960,345949,867

1,056,994

100.0

Tsutsumidori

Sakaisuji

Hotel Vista Sapporo Odori

Ryotokuji
University
Shin-UrayasuCampus (Land)

Other subtotal
Total(Note 1)

Appraiser

1,080

Hotel subtotal
GreaterTokyo
area

Investment
share
(%)
(Note 4)

1,062

Residential subtotal
Hotel

Opinion of value
at end of period(Millions of Yen)
(Note 3)

1,140

PRIME
URBAN
Honmachi

Other
areas

Carrying amount(Millions of Yen)
(Note 2)

18.9
ValuersCo.,

Estate“Acquisition Price” refers to the following. Of the assets succeeded as a result of the merger of three REITs, the appraisal value as of September 30,
2015 for NRE Shibuya Dogenzaka Building and as of April 30, 2015 for other assets succeeded from NOF; and the appraisal value as of September 30,
2015 for PRIME URBAN Shinyurigaoka and as of May 31, 2015 for other assets succeeded from NRF are recorded as said assets’ respective acquisition
prices. Furthermore, the appraisal value as of March 31, 2016 or April 1, 2016 for other assets succeeded from TOP are recorded as said assets’respective acquisition prices. For all other assets, “Acquisition price” indicates the amount, excluding the various expenses required to acquire the property,
including transaction brokerage fees, taxes and public dues, etc. (the amount of transaction payment for real estate, etc., described in the sales agreement).

(Note 2)“Carrying amount” is the sum total amount of the acquisition price (including various expenses required for the acquisition) of land, buildings, structures,
tools, furniture and fixtures, construction in progress, and leasehold rights (including these assets in trust), less accumulated depreciation.

(Note 3)

“Opinion of value at end of period” is the appraisal or investigation value provided by the respective real estate appraiser (the value calculated by therespective real estate appraiser with the date of the 7th fiscal period-end (February 28, 2019) as the effective date of value and the value indicated by the
income approach as a standard) in accordance with NMF’s Articles of Incorporation and the Regulations Concerning Accounting of Investment
Corporations.
The appraisal or investigation value of real estate is no more than an indication of the opinion of the value of the appraised real estate at the time ofappraisal by the respective real estate appraiser, etc., conducted in accordance with the Act on Real Estate Appraisal (Act No. 152 of 1963, including
subsequent amendments), and real estate appraisal standards, etc. Reappraisal of the same real estate may result in a different appraisal or investigation
value, depending on the real estate appraiser conducting the appraisal and the method or timing of the appraisal. In addition, the appraisal of real estate is
not a guarantee or promise of the possibility of transactions at present or in the future at the appraised value.
Furthermore, the cost approach and income approach (direct capitalization approach and discounted cash flow approach) are used in appraisal
calculations. The appraisal value is determined by the income approach if the subject real estate’s price is estimated with an emphasis on investment
profitability in the market and it is seen as an investment target for qualified institutional investors, etc. The value indicated by the cost approach is used as
an index to verify the value indicated by the income approach.
The “direct capitalization approach” is a method where the net revenue in a certain period is capitalized by the capitalization rate. It is a method ofseeking the value indicated by the income approach (a method of seeking the estimated value of real estate by seeking the sum of the present value ofthe net revenue the real estate is expected to generate in the future).
The “discounted cash flow (DCF) approach” is a method where the net income and terminal value arising in multiple successive periods are discounted

50Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019to present value according to their periods and totaled. It is also a method of seeking the value indicated by the income approach.
(Note 4)

“Investment share” is the period-end opinion of value of the respective asset as a percentage of the total amount of the period-end opinion of value ofthe entire portfolio (278 properties in total). The figures are rounded to the first decimal place. Accordingly, the sum total may not be exactly 100.0%.

(Note 5)

NMF holds quasi co-ownership of 50.1% of beneficial interest in real estate. For the opinion of value and carrying price in the table above, price of thisquasi co-ownership interest ratio is stated for opinion of value and carrying price.

(Note 6)

NMF holds quasi co-ownership of 50.0% of beneficial interest in real estate. For the opinion of value and carrying price in the table above, price of this(Note 7)

quasi co-ownership interest ratio is stated for opinion of value and carrying price.
NMF’s acquisition of quasi co-ownership of the beneficial interest in the property was made in two stages. The acquisition price given is the total forboth transactions.

51

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

C. Status of Major Tenants
Details concerning the leasing status of major tenants are shown below. Major tenants are those who,
as of February 28, 2019, account for 10% or more of the total leased area of the assets held by NMF asof February 28, 2019 (in cases where multiple assets have the same tenant, this is calculated using thetotal leased area for all assets leased by said tenant).
TenantBusinename(Note 1) ss type

Contract termination

Property nameContract extension

date

Shinjuku Nomura Building

March 31, 2020

NRE Yotsubashi Building

March 31, 2021-

Leased area

Annual rent(m2)(Millions of Yen)

(Note 1)

(Note 2)

(Millions of Yen)
(Note 3)

1,021.25

117

93

1,024.91

52

35

4,461.47

222

29

PROUD FLAT Shirokane Takanawa February 29, 2020

2,903.86

187

36

PROUD FLAT Yoyogi Uehara

February 29, 2020

1,151.34

61

6

PROUD FLAT HatsudaiFebruary 29, 2020

958.9847

4

PROUD FLAT Shibuya Sakuragaoka February 29, 2020

638.7041

5February 29, 2020

908.0448

4PROUD FLAT Meguro Gyoninzaka February 29, 2020

834.0652

5

PROUD FLAT Sumida Riverside

February 29, 2020

3,033.64

150

13

PROUD FLAT Kagurazaka

February 29, 2020

1,793.43

94

2

PROUD FLAT Waseda

February 29, 2020

1,428.71

70

6February 29, 2020

1,061.32

54

8

PROUD FLAT Sangen Jaya

February 29, 2020

1,253.17

69

6

PROUD FLAT Kamata

February 29, 2020

1,541.64

74

6

PROUD FLAT Kamata II

February 29, 2020

4,051.72

206

21

PROUD FLAT Shinotsuka

February 29, 2020

730.8540

31,209.5659

9830.55

41

3

Kojimachi Millennium Garden(Residential building)

PROUD FLAT Gakugei Daigaku

PROUD

FLAT

Shinjuku(Fixed-term lease contract)(Fixed-term lease contract)-

March 31, 2019

Kawadacho

NomuraReal Estate
Partners RealCo., Ltd. estate（Note 4)

Leasehold andsecurity deposits

PROUD FLAT Kiyosumi Shirakawa February 29, 2020
PROUD FLAT Monzen

February 29, 2020

Nakacho II
PROUD FLAT Monzen Nakacho I February 29, 2020
PROUD FLAT Fujimidai

February 29, 2020

PROUD FLAT Asakusa Komagata February 29, 2020

Contract shall be extended for
additional terms of one year
unless either party notifies theother party in writing of its
intention to terminate thiscontract no later than threemonths prior to the expirationof the initial term or any
extended term thereof.

1,191.0865

62,201.38

109

13

2,577.16

122

15

PROUD FLAT Yokohama

February 29, 2020

3,118.12

143

15

PROUD FLAT Kamioooka

February 29, 2020

4,872.17

182

15

PROUD FLAT Tsurumi II

February 29, 2020

2,198.63

113

20

PRIME URBAN Azabu Juban

February 29, 2020

1,189.33

66

6

PRIME URBAN Akasaka

February 29, 2020

1,026.86

56

5

PRIME URBAN Tamachi

February 29, 2020

1,061.76

60

5PRIME URBAN Shibaura LOFT

February 29, 2020

1,802.44

111

9PRIME URBAN Yoyogi

February 29, 2020

439.5623

2

PRIME URBAN Ebisu II

February 29, 2020

1,160.14

69

5

PRIME URBAN Bancho

February 29, 2020

1,277.04

67

5

PRIME URBAN Chiyoda Fujimi

February 29, 2020

793.8742

4PRIME URBAN Iidabashi

February 29, 2020

2,087.70

122

15

PRIME URBAN Ebisu

February 29, 2020

1,444.40

69

6

PRIME URBAN Naka Meguro

February 29, 2020

1,302.4280

8PRIME URBAN Gakugei Daigaku February 29, 2020

942.1247

4

February 29, 2020

613.1529

2

PRIME URBAN Meguro Riverside February 29, 2020

453.7728

2PRIME URBAN Senzoku

52

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

TenantBusinename(Note 1) ss type

Contract termination

Property nameContract extension

date

PRIME URBAN Meguro Ohashi

Leased area

Annual rent(m2)(Millions of Yen)

(Note 1)

(Note 2)

Leasehold andsecurity deposits(Millions of Yen)
(Note 3)February 29, 2020

2,930.65

170

15

February 29, 2020

1,464.14

77

11

February 29, 2020

1,090.47

61

10

PRIME URBAN Naka Meguro II

February 29, 2020

2,366.16

154

36

PRIME URBAN Kachidoki

February 29, 2020

4,484.56

183

18

February 29, 2020

5,877.37

255

39

February 29, 2020

1,991.76

95

9

PRIME URBAN Hongo Ikizaka

February 29, 2020

662.5833

3PRIME URBAN Hakusan

February 29, 2020

1,031.62

50

4February 29, 2020

1,732.12

90

8February 29, 2020

1,459.86

75

6

PRIME URBAN Nishi Shinjuku II February 29, 2020

1,137.23

56

5

February 29, 2020

578.1829

2PRIME URBAN Nishi Waseda

February 29, 2020

507.1128

2PRIME URBAN Shinjuku Ochiai

February 29, 2020

1,027.45

40

3

PRIME URBAN Mejiro

February 29, 2020

1,652.40

84

52,752.40

170

22

1,018.72

48

3

1,717.0648

9874.1546

4February 29, 2020

1,049.73

47

3

February 29, 2020

809.5537

3

PRIME URBAN Karasuyama Court February 29, 2020

551.2023

1

PRIME URBAN Chitose Funabashi February 29, 2020

1,027.44

47

4

PRIME URBAN Yoga

February 29, 2020

1,731.25

83

9

PRIME URBAN Shinagawa Nishi

February 29, 2020

961.2543

7PRIME URBAN Osaki

February 29, 2020

2,085.32

113

10

PRIME URBAN Oimachi II

February 29, 2020

1,706.88

88

8

PRIME URBAN Yukigaya

February 29, 2020

1,536.59

71

6

PRIME URBAN Omori

February 29, 2020

1,168.65

58

6

February 29, 2020

1,018.34

48

4

February 29, 2020

2,241.56

98

10

February 29, 2020

798.4837

3PRIME URBAN Takaido

February 29, 2020

1,714.08

81

6

PRIME URBAN Nishi Ogikubo

February 29, 2020

516.6126

2

PRIME URBAN Nishi Ogikubo II February 29, 2020

2,141.05

98

9

Hills
PRIME URBAN Meguro Aobadai
PRIME URBAN Gakugei Daigaku
II

PRIME

URBAN

Nihonbashi

Yokoyamacho
PRIME

URBAN

Nihonbashi

Hamacho

PRIME URBAN Yotsuya Gaien
Higashi
PRIME URBAN Nishi Shinjuku I

PRIME

URBAN

Shinjuku

Naitomachi

February 29, 2020

PRIME URBAN Kagurazaka
NomuraReal Estate
February 29, 2020
PRIME URBAN Sangen Jaya III
Partners RealestateCo., Ltd.
PRIME
URBAN
ChitoseFebruary 29, 2020
（Note 4)
Karasuyama
February 29, 2020

PRIME URBAN Sangen Jaya
PRIME

URBAN

MinamiContract shall be extended for
additional terms of one year
unless either party notifies theother party in writing of its
intention to terminate thiscontract no later than threemonths prior to the expirationof the initial term or any
extended term thereof.

Karasuyama
PRIME

URBAN

Karasuyama

Galleria

PRIME

URBAN

Denenchofu

URBAN

Nagahara

URBAN

NakanoMinami
PRIME
Kamiikedai
PRIME
Kamitakada

53

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

TenantBusinename(Note 1) ss type

Contract termination

Property nameContract extension

dateLeased area

Annual rent(m2)(Millions of Yen)

(Note 1)

(Note 2)

Leasehold andsecurity deposits(Millions of Yen)
(Note 3)PRIME URBAN Otsuka

February 29, 2020

904.7747

4PRIME URBAN Komagome

February 29, 2020

952.6034

4PRIME URBAN Ikebukuro

February 29, 2020

4,021.37

215

22

PRIME URBAN Monzen Nakacho February 29, 2020

3,101.99

151

16

PRIME URBAN Kameido

February 29, 2020

1,074.84

51

6

PRIME URBAN Sumiyoshi

February 29, 2020

773.1838

3PRIME URBAN Mukojima

February 29, 2020

1,089.14

44

2

PRIME URBAN Kinshi Koen

February 29, 2020

1,886.50

83

8

PRIME URBAN Kinshicho

February 29, 2020

991.6246

7

PRIME URBAN Hirai

February 29, 2020

1,075.36

47

4

PRIME URBAN Kasai

February 29, 2020

885.6040

3PRIME URBAN Kasai II

February 29, 2020

1,437.84

64

6

PRIME URBAN Kasai East

February 29, 2020

1,860.40

75

7February 29, 2020

1,612.78

74

7

February 29, 2020

838.0029

2February 29, 2020

4,081.14

141

34

PRIME URBAN Musashi Koganei February 29, 2020

5,876.30

135

13

February 29, 2020

2,961.06

89

18

PRIME URBAN Koganei Honcho February 29, 2020

1,604.72

57

6

February 29, 2020

2,538.22

114

40

3,692.44138

27

1,686.06

68

6

1,627.55

71

11

895.78

PRIME

URBAN

Itabashi

Kuyakushomae
PRIME URBAN Asakusa
PRIME URBAN Machiya South
Court

PRIME URBAN Musashino Hills

PRIME URBAN Kumegawa
NomuraPRIME URBAN Musashi Kosugi
February 29, 2020
Real Estate
Partners Real comodo
Co., Ltd. estate
February 29, 2020
PRIME URBAN Kawasaki（Note 4)
February 29, 2020
PRIME URBAN Shinyurigaoka

Contract shall be extended for
additional terms of one year
unless either party notifies theother party in writing of its
intention to terminate thiscontract no later than threemonths prior to the expirationof the initial term or any
extended term thereof.

PRIME URBAN Tsurumi Teraya

February 29, 2020

36

3

PRIME URBAN Urayasu

February 29, 2020

1,243.84

55

7

PRIME URBAN Gyotoku I

February 29, 2020

1,151.36

44

4

PRIME URBAN Gyotoku II

February 29, 2020

1,244.00

47

3

PRIME URBAN Gyotoku Ekimae

February 29, 2020

778.1933

3February 29, 2020

927.3340

4PRIME URBAN Gyotoku III

February 29, 2020

1,766.47

65

6

PRIME URBAN Nishi Funabashi

February 29, 2020

1,237.80

54

5

PRIME URBAN Kawaguchi

February 29, 2020

2,415.82

108

27

PROUD FLAT Hatchobori

February 29, 2020

952.71

56

5

PROUD FLAT Itabashi Honcho

February 29, 2020

1,110.16

47

5

PRIME URBAN Meguro Mita

February 29, 2020

980.9349

4

February 29, 2020

1,418.36

70

6

PROUD FLAT Omori Ⅲ

February 29, 2020

1,392.27

68

7

PROUD FLAT Kinshicho

February 29, 2020

1,047.57

53

5

PROUD FLAT Sangenjaya II

February 29, 2020

2,931.43

129

21

PROUD FLAT Sotkanda

February 29, 2020

2,344.93

134

13

PROUD FLAT Noborito

February 29, 2020

1,749.42

84

8

PROUD FLAT Yoyogi Hachiman

February 29, 2020

946.9955

5PROUD FLAT Nakaochiai

February 29, 2020

1,069.81

55

5

PRIME URBAN Gyotoku Ekimae
II

PRIME URBAN Gakugei Daigaku
Parkfront

54

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

TenantBusinename(Note 1) ss type

Property nameContract termination

PRIME URBAN Shinkawa
PRIME URBAN Toyosu

February 29, 2020

February 29, 2020

Contract shall be extended for
additional terms of one year
unless either party notifies theother party in writing of its
intention to terminate thiscontract no later than six
months prior to the expirationof the initial term or any
extended term thereof.

--

NomuraReal Estate
PRIME
URBAN
Nihonbashi
February 29, 2020
Partners RealCo., Ltd. estate Kayabacho（Note 4)
February 29, 2020
PRIME URBAN Yoga II
PRIME URBAN Musashi Koganei

Annual rent(m2)(Millions of Yen)

(Note 1)

(Note 2)Contract extension

date
February 29, 2020

Leased area

Leasehold andsecurity deposits(Millions of Yen)
(Note 3)3,477.92

134

40

6,697.66339

36

3,444.22

179

20

1,469.5074

72,025.1884

9211,297.40

10,085

1,332

II
Total
(Note 1)In the case of assets with a so-called pass-through master lease agreement, where the rent received from the lessee in the master lease agreement is thesame amount as the rent that the lessee receives from the end-tenant, the end-tenant is shown as the tenant, and the lessee is not shown as a tenant.
However, for residential facilities, the master lessee is shown as the tenant, and the leased area shown is that that actually rented and subject to thetenant agreements with end tenants.

(Note 2)

“Annual rent” is calculated by multiplying by 12 the sum of monthly rent and common area charges in lease agreements for each property actuallyconcluded with end-tenants that are valid as of the last day of February 2019 (this does not include parking space or other fees stated in parking spacelease agreements or other such agreements signed in addition to the tenant lease agreement. If common-use space, etc. is leased based on the leaseagreement, the rent for such is included, and if rent includes an amount equivalent to the fee for use of parking space, such amount is included. In
addition, if the master lessee has a rent-guaranteed master lease, the rent for the space covered in said lease is based on the rent, etc., in the leaseagreement concluded with the master lessee.); amounts less than one thousand yen are truncated. Accordingly, the sum of each tenant’s annual rent
may not be exactly the same as the figure given the “Total” row. Furthermore, regarding tenants who have been exempt from rent payment for acertain period of time in their agreements, such exemption period is not considered in the table above.

(Note 3)For residential facilities, the lessee of the master lease agreement shown in the “Tenant name” column receives leasehold and security deposits fromthe end-tenants and deposits this amount with NMF or the trustee as the leasehold and security deposits of the master lease agreement.

(Note 4)This client is an interested party of NMF as specified in the Investment Trust Act.

D. Status of Major Properties
Not applicable.
E. Overview of Leasing to Interested Parties
As of February 28, 2019, some of the assets held by NMF at the same date were leased to interested
parties as defined in the Investment Trust Act.
The following is an overview of the status of leasing of said assets to interested parties as defined in theInvestment Trust Act.
Tenant name
Nomura Real Estate Partners
Co., Ltd.

Nomura Real Estate
Development Co., Ltd

Property nameShinjuku Nomura Building
NRE Yotsubashi Building
Total of PROUD FLAT Shirogane-Takanawa,
and 120 others
Shinjuku Nomura Building
Nishi-Shinjuku Showa Building
NMF Yokohama Nishiguchi Building
NRE Yotsubashi Building
NRE Hiroshima Building

Nomura Real Estate Life &Megalos Kanagawa
Sports Co., Ltd.
Shinjuku Nomura Building
NMF Gotanda Ekimae Building
NMF Kichijoji Honcho Building
Nomura Real Estate Urban Net
Co., Ltd.
NMF Kawasaki Higashiguchi Building
NMF Yokohama Nishiguchi Building
NRE Nishi-Umeda Building
Geo Akamatsu Co., Ltd.
NRE Yotsubashi Building
Nomura Real Estate Amenity
NRE Yotsubashi Building
Service Co., Ltd.

55

Leased area(m2)
1,021.25
1,024.91
209,251.24
6,609.14
256.7994.83
1,369.84
141.516,217.85
1,740.51
198.90269.37216.54373.27404.41357.0680.01

Nomura Real Estate Master Fund, Inc. (3462)
Financial Results for the 7th Fiscal Period Ended February 28, 2019

F. Collateral
Assets held by NMF and offered as collateral at the end of the 7th fiscal period under review are as follows.

Property Name

Type ofcollateral

Konami Sports Club Fuchu
Sagamihara Shopping Center

Mortgage
Mortgage

Secured party
Konami Sports Club Co., Ltd. (Note)
Ito-Yokado Co., Ltd. (Note)(Note) The secured claims are rights held by the security interest holders to claim the return of leasehold deposits.

56

Recent appraisal
value(Millions of Yen)
3,350
6,960