Eighth Fiscal Period Financial Results(ended November 2010)

Contents
Highlights of the Eighth Fiscal Period

Fund Management Results

 Eighth Fiscal Period Financial Statement Overview

2

 Portfolio Performance18

 TOPICS Replacement Strategy

3

 Portfolio Occupancy Rate

19

 TOPICS Property Management and Finance4 Changes in Revenue (1)20 Changes in Revenue (2)21 Engage in Asset Management22 Management Results

23 Financial Status (Eighth Fiscal Period End)24

 Appraisal Value Status (Eighth Fiscal Period End)25

 Unitholders (Eighth Fiscal Period End)26

 Changes in Investment Unit Price and Cash Distribution

27

Fund Management Summary Current Status and Outlook of Rental Housing Market(Changes in Number of Households/Population Inflow & Rental Housing Demand)

6(Changes in Occupancy Rate/Rent and Economic Index)

7

 NRF Portfolio: Selective Investment of “Core Units”

8 Ninth Fiscal Period Management Policy

9 Ninth Fiscal Period Acquisition Policy and Market Trends 10
 Current J-REIT Market and Forecasts

11

 Management Strategies

12

Overview of the Financial Results

APPENDIX
 Changes in Financial Performance30

 Interest-bearing Debts (Eighth Fiscal Period End)31

 Results of Investor Relation Efforts

32

 Portfolio Status33

 Portfolio Map

34-35
36-39

 Income Statement14 Portfolio

 Balance Sheet

15

 Fund Profile40

 Forecasts for the Ninth Fiscal Period

16 Asset Management Company Overview

41

Highlights of the Eighth Fiscal Period1Eighth Fiscal Period (ended Nov. 30, 2010) Financial Statement Overview
Financial Statement Overview[Difference in Forecasts and Results]
Difference(previous period)

8th FP Forecast(released July 2010)

Difference(from forecast)¥4,466 million+ 3.3 %

¥4,385 million+ 1.8 %

¥2,037 million¥2,150 million+ 5.5 %

¥2,115 million+ 1.7 %

¥1,386 million¥1,514 million+ 9.3 %

¥1,468 million+ 3.1 %

¥11,046¥12,068+ 9.3 %

¥11,700+ 3.1 %

7th Fiscal Period

8th Fiscal Period(ended May 2010)(ended Nov. 2010)

Operating Revenues¥4,323 million

Operating Income
Net Income
Cash Distribution Per Unit

Difference in Cash Distribution (7th Fiscal Period/8th Fiscal Period) Higher Occupancy Rates
Property Replacement+ 2.4 %

(yen/unit)
14,000 Interest Expense Decrease
Other+ 0.7 %

+ ¥1,141+ ¥96- ¥215[9th Fiscal Period Forecast]¥12,068+ ¥1,022(+ 9.3%)¥11,046

9th FP Forecast(released Jan. 2011)

Difference(this period)¥4,479 million+ 0.3 %

¥2,130 million- 0.9 %

¥1,501 million- 0.9 %

¥11,960- 0.9 %

11,0008,000- Property
Replacement+ ¥466- Lower
Commision Fee+ ¥218- ManagementFee- ¥136- HigherOccupancy Rate
+ ¥913- Other- ¥122- Other- ¥79- Key Money, etc.
- ¥2385,000
7th FP
Cash Distribution

Rental Business
Revenues

Rental Business
Expenses

Other
Expenses

8th FP
Cash Distribution

2

TOPICS Replacement Strategy (8th Fiscal Period to Jan. 12, 2011)
Implementation of Replacement Strategy
High Yield
Lower Average Building Age

Acquisition:

Low Yield
High Building Age

Disposition:

URBAN STAGE Kasai East

URBAN STAGE Tennocho- Acquisition Price :¥940 million- Disposition Price : ¥143 million- NOI Yield:6.3%- Book Value: ¥134 million- Building Age:4.8 years*- Building Age: 20.8 years*- Acquisition Date

:Jan. 12, 2011

- Disposition Date : Jul. 29, 2010

URBAN STAGE Yoga
- Acquisition Price :¥1,150 million- NOI Yield:6.1%- Building Age:3.1 years*- Acquisition Date

:Aug. 20, 2010

URBAN STAGE Itabashi Kuyakushomae

A
c
q
u
i
r
e

PORTFOLIO

145 properties¥134.3 billion(as of Jan. 12, 2011)

D
i
s
p
o
s
e

Status of Disposition Target Properties: Approx. 20 Properties- NOI Yield:6.7%

 Possible Buyers : Wealthy individuals, resale dealers,
asset management companies, local
real estate companies, generalbusiness corporations, etc.

- Building Age:3.6 years* Current Status- Acquisition Date

:Jul. 8, 2010

- Acquisition Price :¥940 million: Receive confidentiality agreement
Perform property viewings*The “Building Age” stated above is the figure of each property at the time of acquisition/disposition.

3

TOPICS

Property Management and Finance (Eighth Fiscal Period)

Property Management

Finance Keep/Enhance Occupancy Rates ThroughFlexible Management

 Establish Sound Interest-bearing Debt Portfolio

Portfolio Occupancy Rate : 95.2 %(7th FP)→

96.3 %(8th FP) Enhance Market Competitiveness Through Renovations
PU Ebisu Minami: Building Entrance Renovation

US Asakusa: Unit Space Renovation: ¥9,096 million (Jul)¥1,720 million (Sep)

Lender Diversification: 16 lenders (+1)

Filing of Shelf Registration Statement
for Investment Corporation Bond

: ¥100 billion

 Financial Figures at 8th Fiscal Period End Seek Internal Growth Opportunities

LTV: 53.1%

Increase in Profit:Vending Machine, Antennae etc. Installation

Fixed Ratio: 74.8%Curtail Expenses:Curtail Building Management Expenses

Long-term Debt Ratio: 73.2%<Changes in Portfolio Occupancy Rate>

(%)

250

98

200
96.2%
95.8%
95.2%

95.8%

96.0%

<This Fiscal Period’s Loan Performance>(Billions of Yen)

100

96

Refinance

96.3%

Refinance(1.5-year fixed /2-year floating)

150

95.2%

94

100

92

50

Filing of
Shelf Registration
Statement for
Investment
Corporation Bonds¥100 billion¥9,096 million
Flexible procurement
through credit loans¥600 million ¥1,120 million ¥1720 million

90

May
May

Jun.
Jun.

Jul.
Jul.

Aug.
Aug.

Sep.
Sep.

Oct.
Oct.

Nov.
Nov.

0
Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

4

Fund Management Summary5Current Status and Outlook of Rental Housing Market(Changes in Number of Households/Population Inflow and Rental Housing Demand)
Changes in Number of Households (“Total ””Singles””DINKs”) [Greater Tokyo Area](%)

Changes in Total Number of Households and Singles/DINKs Households(Thousand Households)

16,000200
14,91815,253

15,415

15,414

15,268Singles/
DINKs 160
(158%)

13,757

14,00013,157

Total
140
Number ofHouseholds(124%) 120

Over 50% of the total
number of households

12,318180

Peak of Numberof Households

12,000100• Households due to start decline in 2025
• Single and DINKs households will continue to increase• Over 50% of the household ratio after 2005 aresingles and DINKs households
Small households, such as singles/DINKs,
will continue to steadily increase.

80

10,000
1995

2000

2005

2010

2015

2025

2020

2030

Source: National Institute of Population and Social Security Research

Changes in Number of Net Inflow and Rental Housing Under Construction [23 Wards of Tokyo](Units/People)

Number of Building Starts

Net Incomings

70,00059,49660,16359,06960,00049,04540,00052,94950,61250,000• Excess population inflow will continue in Tokyo

49,069Gap in Demand

43,42838,56737,36643,371• A demand/supply gap will potentially occur

39,08430,00020,00030,76525,603

23,831

33,101

31,88026,512

25,88821,718Stable tenant demand

10,000
0
2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Source: Ministry of Land, Infrastructure, Transport and Tourism, Policy Bureau, Information Security, Research and Statistics DivisionTokyo Metropolitan Government Bureau of General Affairs

6Current Status and Outlook of Rental Housing Market(Changes in Occupancy Rate/Rent and Economic Index)
Outlook of Rental Housing Market
 Changes in Average Occupancy Rate and Average Rent of Rental Housing Owned by J-REIT
Slight time lag between“Higher Occupancy Rate” and “Higher Rent”(Occupancy Rate)

約6ヶ月
Approx.
6 months

Average Occupancy Rate
Average Rent per Tsubo (monthly)

約6ヶ月
Approx.
6 months

97%

Rent perRent per Tsubo
Tsubo(monthly)(monthly)
19,000

NRF Listing(Feb. 2007)

Highest: 96.3%(Nov. 2004)96%

Improvement in
Occupancy Rate

Higher
Occupancy Rate

HigherRent

Higher
Occupancy Rate

Rental Housing Rent
Increase Factor

17,00095.1%(Aug. 2010)

HigherRent

15,00095%

Increase in
Occupancy Rate

13,00094%
11,00093%

9,000

Hit Bottom
92.9%(Jul. 2009)

Lowest: 92.8%(May 2004)

92%

7,000

May 2004

May 2005

May 2006

May 2007

May 2008

May 2009＋

 Changes in Consumer Price Index/Total Unemployment Rate

Improve
Employment Condition* CPI: Calculated to measure the average price movements of goods/services purchased by households throughout the country, based on the year 2005.
Unemployment Rate: Of the population above 15-years old, the percentage of the unemployed to the total labor force (sum of the employed and unemployed).

(CPI)
103%

CPI (Consumer Price Index)(Unemployment Rate)
7.0%

Unemployment Rate
Lehman Brothers
Bankruptcy

HigherInflation
Occupancy Rates(100.1%→101.0%)

101%

Downturn in
Employment Enviroment(5.1%～5.5%)

Higher
Occupancy Rates
Inflation(99.7%→100.4%)

6.5%
6.0%
5.5%

100%
100%
99%

Upward Trend
in Prices

May 2010

Source: ARES “J-REIT Property Database”

102%

＋

5.0%
5.0%
Improvement in
employment enviroment(5.1%→4.8%)

98%

US Subprime Mortgage
Crisis Surfaces

4.5%
Dubai's
Economic Crisis

Improvement in
employment enviroment(4.6%→4.3%)

Deflation(99.2%～99.7%)

4.0%

CPI Below 100%

3.5%

Economic Recession/Unclarity

97%

Rent Increase

3.0%

May 2004

May 2005

May 2006

May 2007

May 2008

May 2009

May 2010

Source: Ministry of Internal Affairs and Communications

7

NRF Portfolio: Selective Investment of “Core Units”
Target Tenant Class with Strong Demands
and Stable Rent Potential
NRF Rent Distribution(units)3,500Core Units(rent ¥150,000 or less, floor area under 50 sqm)
At 8th Fiscal Period End: Most Distributed

Small Area

3,000Core Units¥150,000or less
92.4%

2,500
2,000

88.7

3,786 units
1,543戸
戸
1,543

1,500

%
Unit Ratio :(Occupancy Rate: 94.3%)

Characteristics:
Single/DINKs units in Greater Tokyo Area

Characteristics:
Expensive units in Central Tokyo

Units with rent ¥150,000 or lessand floor area under 50 sqm

1,269 戸
974 戸

1,000

4.0

Unit Ratio :%(Occupancy Rate: 96.5%)¥150,000
50 sq. meters

Low
Rent

500

High
Rent

* ¥200,000 or more
Approx. 1.3%0

4.1～¥60,000～¥80,000～¥100,000～¥120,000～¥140,000～¥160,000～¥180,000～¥200,000¥210,000～～¥70,000～¥90,000～¥110,000～¥130,000～¥150,000～¥170,000～¥190,000～¥210,000(units)

NRF Floor Area Distribution

3,500
3,000
2,500

3.2

%
Unit Ratio :(Occupancy Rate: 95.0%)

Unit Ratio :%(Occupancy Rate: 97.6%)

Characteristics:
Family units in Major Regional Cities

Characteristics:
Family units in Central Tokyo/Suburbs: Most Distributed

3,219 戸Large Area
Less than
50 sqm
92.7%

5,652
units

2,000

(%)

Changes in Occupancy Rate of Core Units

100%

1,500

96.9%

1,330 戸1,103 戸

1,000

96.2%

96.4%

96.4%

95.8%
94.4%

95%

96.5%

93.6%

500

Average 95.6%

0-15sqm20-25sqm
30-35sqm
40-45sqm
50-55sqm
60-65sqm
70-75sqm
80-85sqm
90sqm15-20sqm
25-30sqm
35-40sqm
45-50sqm
55-60sqm
65-70sqm
75-80sqm
85-90sqm• Units• When: 7,575 units (only residential units): Eighth Fiscal Period End

90%

85%
1st FP End(May 31, 2007)

2nd FP End(Nov. 30, 2007)

3rd FP End(May 31, 2008)

4th FP End(Nov. 30, 2008)

5th FP End(May 31, 2009)

6th FP End(Nov. 30, 2009)

7th FP End(May 31, 2010)

8th FP End(Nov. 30, 2010)8

Ninth Fiscal Period Management Policy
Ninth Fiscal Period Management Policy Handling the Busy Turnover Season Lease Preparations for Busy Turnover Season• Bring in Corporate Leases
 Early grasp of demand
 Actively inquire through agents• Local Area Marketing• Renovations• Take measures to shorten vacancy period
 Shorten restoration work period• Renewing Utilities

Seventh and Eighth Fiscal Period Performance (Leased Units/Occupancy Rates)
8th FP

7th FP(Occupancy Rate)(Units)100%

600

94.9 %
95%
92.1 %

92.1 %

94.4 %

95.2 %

95.2 %

95.8 %

95.8 %

96.2 %

96.0 %

 Leased Units

96.3 %
500

92.5 %

Total: 1,979 units

7th FP : 1,161 units (58.7%)

90%

400

8th FP :818 units (41.3%)

Leased Units
Portofolio Occupancy Rate
85%

300

80%

200

 Average Occupancy Rate
Annual : 94.7%

40% of Total
Number of
Turnovers

75%

100

7th FP : 93.5%
8th FP : 95.9%

70%

0
Dec.
2009

Jan.
2010

Prepare for turnovers[Measures]
Renovations, etc.

Feb.

Mar.

Apr.

Busy Turnover
SeasonJob transfer and school
entrance bring demand

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Take measures during the stable period [Increase renewal ratio, prevent cancellations]
Take surveys at time of renewal, etc.

9Ninth Fiscal Period Acquisition Policy and Market Trends
Ninth Fiscal Period Acquisition Policy Implement replacement strategies(acquisition of high yield properties)

 Acquisition through various pipelines

J-REIT Asset Acquisition/Disposition Trends(millions of yen)

NRF’s Acquisition Performance and Policy

J-REIT asset acquisition/disposition activities increase from Oct. 2009

150,000

Acquisition Performance Information on Potential Properties

Stagnant

Picks up

100,000(forecast)
Increase in Activity

Number of information regarding potential properties on the rise

50,0000-50,000

8th FP

Difference

Number of Information

257

340

+83

Potential Properties

32

54

+22

 NRF’s Transaction Results
Total Acquisition Price-100,000
Apr. 2008

Oct. 2008

Apr. 2009

Total Disposition Price

Net Acquisition Price

Oct. 2009

Oct. 2010

Apr. 2010

Apr. 2011

Exclusive Transactions

Acquisition from Various Routes
Sponsorapprox. ¥31.7 billion(23 properties)

Bid Transaction
approx. ¥4.4 billion(2 properties)

Changes in Capitalization Rate(%)

7th FPCap Rate starts declining after April 2010

7.0
6.5
6.0

5.8%

5.9%

5.8%
5.6%

5.5
5.0

(Forecast)

5.2%
Negotiation Transaction
approx. ¥128.9 billion(142 properties)

Downward Trend

4.7%

Other Routes
approx. ¥101.6 billion(121 properties)

4.5
Apr. 2008

Oct. 2008

Apr. 2009

Oct. 2009

Apr. 2010

Oct. 2010

Apr. 2011

Source: (Upper Left) Based on the data disclosed on listed REIT’s website(Lower Left) Japan Real Estate Institute, Research and Study Department

10Current J-REIT Market and Forecasts
Trading Volume by Investor Type (June 1, 2010-November 30, 2010)
30,000150,000

Sell
売り

Buy買い

Difference
差引(Transaction Price/Millions of Yen)

Domestic Financial Institutions
Buying on Balance(Jun. –Oct. 2010)

Investment TrustFund Inflow

20,00010,00050,0000

0-10,000-50,000-100,000

自己取引

個人

外国人

投資信託

Self-dealings

Individuals

Foreigners

Investment Trusts

事業法人+
その他事業法人

生保・損保

Life/Non-life Insurance

Corporations, etc.

-150,000,

銀行+
その他金融機関
Banks

Other Financial
Institutions-20,000(Transaction Price Deduction/Millions of Yen)

Foreigners
Buying on Balance(Nov. 2010)

100,000-30,000,

Monthly Number of Transactions and Investment Unit Prices
Dec. 16 [Begins Purchase of J-REITs]- Amount of Purchase:¥2.2 billion

(%)
130

Trade Volume
NRF's Unit Price
TSE REIT Index

125
120

Nov. 26[NRF’s Ex Dividend Date]

Oct. 28 [Announced Guidelines for
the Purchase of J-REITs]

115
110

Nov. 5 [Announced Terms andConditions for Purchase of J-REITs](units)Overview: BOJ’s J-REIT Purchase

4,000

Purchase Total

3,500

:

Approx. ¥50 billion

Purchase Period :Aim for end of 2011

Purchase Target :AA rating or more

Purchase Limits

Market Cap Ratio
Within 5% of Issued Units

Oct. 5 [Implement “Comprehensive
Monetary Easing Policy”]

:

105

3,000
2,500
2,000
1,500

100

Remaining Purchasing Period
1 Year

95

1,000
500

90

0
2010
Oct 01

Oct 08

Oct 18Oct. 1- Investment Unit Price :- Trade Volume:

Oct 25¥373,000424 units

Nov 01

Nov 09Nov 16

Nov 24

Dec 01

Dec 08Dec 15

Dec 22

Dec 30

Jan 11

Jan 21

Jan 31

Feb 10Dec. 30- Investment Unit Price: ¥473,000 (+ 28.5%)- Trade Volume: 505 units (1.2 times)

11

Management Strategies
Implement Each Strategy

Towards GrowthInternal
Growth Maintain and Enhance High Occupancy Rates- Understanding tenant needs, tenant recruitment
conditions according to property characteristics
 Strengthen Competitiveness through Renovations- Renovate common areas, renew unit utilities(maintain and enhance revenue)

External
Growth Property Replacement

Financial &Capital Strategy

Strengthen Profitability- Acquisition of high revenue, good location,and fairly new properties- Maintain high occupancy rates- Acquire high revenue properties- Strengthen funding

External Growth ThroughProperty Acquisition- Considering equity procurement- Disposition of small scale/older properties- Pursue timely disposition, utilizing thecharacteristics of each real estate

Increase Cash Distribution

 Strengthen Funding- Diversification of lenders- Consider investment corporation bonds

Enhance Asset Size

 Enhance Fund Recognition- Active investor relations

12

Overview of the Financial Results

13Income Statement

7th Fiscal Period

Real Estate Rental Business Revenues
Rental Business Revenues
Other Rental Business Revenues

Parking Lot Revenue

From Dec. 1, 2009
To May 31, 2010

8th Fiscal period
From Jun. 1, 2010
To Nov. 30, 2010

 Maintain/enhance high occupancy rate

Amount(￥000)

Ratio(%)

Amount(￥000)

Ratio(%)

4,323,193

100.0

4,461,932

100.0

 2 new property acquisitions(US Itabashi Kuyakushomae, US Yoga)

4,001,250

92.6

4,170,077

93.5

321,9437.4

291,8546.5

104,587

2.4

106,649

2.4

Incidental Revenue*1

178,984

4.1

129,638

2.9

Other Real Estate Rental Revenue*238,3700.9

55,5661.2

1,809,922

41.9

1,797,822

40.3

3.6

149,965

3.4

Real Estate Rental Business Expenses
Repair Expenses*3

155,196

Tax and Public Dues

*4

194,758

4.5

212,919

4.8

787,35118.2

794,984

17.8

Depreciation and Amortization
Other Rental Business Expenses
Real Estate Rental Business Profits and Losses

Real Estate Disposition Profit and Loss
Asset Management Fees
Other Operating Expenses*5

Operating Income

15.6

639,95214.3

2,664,110

59.7

3. Renovation Expenses－
305,304

－
7.1

4,503

0.1

322,4447.2

170,272

3.9

195,386

4.4

Repair Expense
Capital Expenditure
修繕費

47.1

2,150,783

48.2

0.1

3,605

0.1

Non-Operating Expenses

653,813

15.1

638,470

14.3

585,72813.5

601,223

13.5

68,084

1.6

37,247

0.8

Current Profits

1,387,655

32.1

1,515,918

34.0

Net Income Before Tax

1,387,655

32.1

1,515,918

34.0

Corporate Income Tax, etc.
Net Income

995

0.0

983

0.0

1,386,659

32.1

1,514,935

34.0

Retained Earnings Brought Forw ard

50

0.0

50

0.0

Retained Earnings at Fiscal Period End

1,386,710

32.1

1,514,986

34.0: ¥41,852 thousand: ¥75,527 thousandetc.

2. Other Real Estate Rent Revenues
Revenue from cell phone antenna, vending machines, etc.

58.1

3,774

*6

1. Incidental Revenues
Key Money
Renewal Fee

672,616

2,037,693

Other Non-Operating Expenses* Reference

2,513,271

Non-Operating Revenues

Interest Expenses

 Disposition of US Tennocho

4. Tax and Public Dues
Subject Property
Excluded Property: ¥149,965 thousand: ¥42,836 thousand¥192,801 thousand: 143 Properties:
2 Properties(estimate ¥5,977 thousand)

5. Other Operating Expenses
Duty Entrustment Fee : ¥39,281 thousand
Directors Fee: ¥6,400 thousand

6. Other Non-Operating Expenses
Loan Related Expense : ¥34,539 thousand*Figures are rounded down to the nearest thousand.

14Balance Sheet
Liabilities and Net Assets

AssetsCurrent Assets

Seventh Fiscal Period

Eighth Fiscal Period

Seventh Fiscal Period

Eighth Fiscal Period

as of May 31, 2010

as of Nov. 30, 2010

as of May 31, 2010

as of Nov. 30, 2010

Amount(￥000)

Amount(￥000)

Amount(￥000)

Ratio
(%)

Ratio
(%)
Current Liabilities

5,469,720

3.9

5,894,983

4.2

Cash and Cash Equivalents

4,022,983

2.9

4,593,251

3.3

Trade Accounts Payable

Cash and Cash Equivalent in Trust

1,321,974

1.0

1,199,500

0.9Long-term Loan Due Within One Year

124,7620.1

102,231

0.1

Other Accounts Payable

Other Current Assets

Ratio
(%)

15,471,675

11.2

Amount(￥000)

Ratio(%)

21,372,432

15.2

139,2910.1

165,462

14,256,000

10.3

20,050,000

0.1

190,083

0.1

237,5490.2

14.3 *2

133,285,979

96.1

134,719,570

95.8

Taxes Payable

816

0.0

9,481

0.0

Tangible Fixed Assets

133,272,201

96.0

134,701,287

95.8 *1

Accrued Expenses

303,3990.2

315,189

0.2

Real Estate

76,633,024

55.2

82,898,026

59.0

Rent Received in Advance

577,6430.4

590,360

0.4

Deposits Payable

4,440

0.0

4,389

0.0

Fixed Assets

Building

36,873,993

26.6

38,984,343

27.7

Land

39,759,031

28.7

43,913,682

31.2

60,097,829

43.3

55,927,650

39.8

56,639,177

40.8

51,803,260

36.8

Long-term Loans

58,790,000

42.4

54,626,000

38.8 *2

Building in Trust

18,618,805

13.4

16,840,225

12.0

Security Deposits

651,9540.5

703,645

Land in Trust

38,020,371

27.4

34,963,035

24.9

Security Deposits in Trust

Intangible Fixed Assets

940

0.0

5,579

0.0

940

0.0

5,579

0.0

Investment and Other Assets

12,8360.0

12,7030.0

Security Deposits

10,8790.0

10,8790.0

Long-term Repaid Expenses

1,957

0.0

1,824

0.0

138,755,699

100.0

140,614,554

100.0Real Estate in Trust

Other Intangible Fixed Assets

Total Assets*1 Tangible Fixed Assets(unit: millions of yen)
AcquisitionPrice

Accumulated
depreciation(Depreciation for
current FP)

Book value
at FP end

Real Estate

139,819

5,118

(794)

134,701

Building
Land
Building in trust
Land in trust

41,912
43,913
19,03034,963

2,927
－
2,190
－

(542)
－
(252)
－

38,98443,913
16,84034,963Fixed Liabilities

0.5

655,8750.5

598,004

0.4

75,569,504

54.5

77,300,082

55.0

63,186,195

45.5

63,314,471

45.0

Unitholders Capital

61,799,485

44.5

61,799,485

43.9

Retained Earnings

1,386,710

1.0

1,514,986

1.1

Total Net Assets

63,186,195

45.5

63,314,471

45.0

Total Liabilities and Net Assets

138,755,699

100.0

140,614,554

100.0

Total Liabilities
Unitholders Equity*2 Loans (long-term loans due within a year are included in the shor-term loans)
74,676

Balance of interest-bearing debts (millions of yen)short-term + long-term loans
Total asset interest-bearing debt ratio

total assets

Long-term interest-bearing debt ratio

shot-term + long-term loans

53.1%

long-term loans

73.2%

15

Forecasts for the Ninth Fiscal Period
8th FP Results
From Jun. 1, 2010
To Nov. 30, 2010

9th FP Forecast
From Dec. 1, 2010
To May 31, 2011

Amount(millions of yen)Amount(millions of yen)

Assumptions
Difference
Amount(millions of yen)

[Number of Properties]
145 properties, including URBAN STAGE Kasai East.
(Total Acquisition Price: ¥134,356 million)

Real Estate Rental Business Revenues

4,461

4,479

17

Real Estate Rental Business Expenses

1,797

1,839

41

Repair Expenses

149

152

2

Tax and Public Dues

212

213

0

Depreciation and Amortization

794

793

1

Real Estate Rental BusinessProfits and Losses

2,668

2,640

-23

4

－

-4

Asset Management Fees

322

323

0

Other Operating Expenses

195

186

-9

Operating Income

2,150

2,130

-19

Non-Operating Profit and Loss

-634

-628

6

[Loans]Total Interest-bearing Debt (as of Jan. 16)

-602

-602

-1

Interest-bearing Debt Repayment Due During 9th FP

Current Profits

1,515

1,502

-13

Repayment through loans (Feb. 2011)
Agreed repayment (Feb. 2011)

Net Income

1,514

1,501

-13

Real Estate Disposition Profit and Loss

Interest Expenses[Repair Expenses]¥193 million for 8th Fiscal Period(of which ¥43 million is capital expenditure)
Example)US Takinokawa (large-scale renovation)
PU Ebisu Minami (entrance renovation): ¥10 million: ¥2 million¥190 million for 9th Fiscal Period(of which ¥38 million is capital expenditure)
Example)US Karasuyama (large-scale renovation): ¥13 million
US Toritsu Daigaku (water line renewal work): ¥5 million¥74,676 million¥4,980 million¥90 million

Difference in Forecasts

Number of Investment Units Issued

125,535

125,535－

Cash Distribution Per Unit

12,068

11,960-108

Number of Properties
Leasable Floor Area

144

145

1

214,145

216,470

2,325

96.3

96.1

-0.2

Announced
Dec. 1, 2010

Announced
Jan. 14, 2011

Difference

Operating Revenues￥4,451 million￥4,479 million+￥28 million

Operating Income￥2,117 million￥2,130 million+￥13 million

Net Income￥1,488 million￥1,501 million+￥13 million￥11850￥11960+￥110

Cash Distribution per Unit

Occupancy Rate Assumption

16

Fund Management Results

17Portfolio Performance
Stable Growth of Portfolio(billion yen)
1,600
#2 PO
¥8,029 million

1,400
131 properties¥110.33 billion

1,200

1,000

800

IPO
¥30,257 million
89 properties¥67.03 billion

134 properties¥115.93 billion

139 properties¥121.48 billion

139 properties¥121.48 billion

143 properties¥131.46 billion#1 PO¥12,514 million
97 properties¥75.42 billion

144 properties¥133.41 billion

145 properties¥134.35 billion

Replacement

Replacement

Acquire 2 Properties
Dispose 1 Property

Acquire 1 Property

600

400
*Greater Tokyo Area: 87.1%
Other Areas: 12.9%

200

0
1st FP End(May 31, 2007)

2nd FP End(Nov. 30, 2007)

3rd FP End(May 31, 2008)

4th FP End(Nov. 30, 2008)

5th FP End(May 31, 2009)

6th FP End(Nov. 30, 2009)

7th FP End(May 31, 2010)

8th FP End(Nov. 30, 2010)

As ofJan. 12, 2011

*The graph above is based on the acquisition price of each property (rounded down to the nearest thousand).

Portfolio Overview (8th Fiscal Period End)
Acquisition Price¥133,416 million

Leasable Units

7,609 units

Average Rent Per Unit

approx. ¥96 thousand

Average Leasable Floor Area Per Unit approx. 28 sqm
18

Portfolio Occupancy Rate
Portfolio Occupancy Rate(sqm)
250,000

7th Fiscal Period

8th Fiscal Period

Average : 93.5%

Average : 95.9%

Dynamic leasing activity during the busy season
94.9%

200,000

92.1%

92.1%

94.4%

95.2%

95.8%

95.8%

(%)

96.2%

96.0%

96.3%

100
GreaterTokyo Area
東京圏

95

95.2%

- Value increasing renovations- Gather corporate tenant needs

92.5%

Other
Areas
その他
Portfolio
Occupancy Rate
ポート稼働率9085

150,000

Greater Tokyo Area 165,919 sqm

80
100,000

75
70

50,000

Other Areas 48,226 sqm

65
0

60

Area

Dec.
2009

Jan.
2010

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Portfolio

92.1%

92.1%

92.5%

94.9%

94.4%

95.2%

95.2%

95.8%

95.8%

96.2%

96.0%

96.3%

92.2%

92.0%

92.5%

94.3%

93.8%

94.9%

94.9%

95.6%

95.7%

95.9%

95.7%

96.0%

92.0%

92.1%

92.6%

96.8%

96.4%

95.8%

95.9%

96.4%

96.2%

97.0%

97.0%

97.2%

GreaterTokyo Area
Other
Areas

Leasable Floor Area
Total 214,145 sqm(64,779 tsubo)

Maintaining high occupancy rates from the end of last period(7th FP End Occupancy Rate: 95.2% → 8th FP End Occupancy Rate: 96.3%)
19

Changes in Revenue (1)Changes in Leasable Units and Rent Per Unit
(units)
7,500

7th FP End(7,169 units)

Property
Replacement
Difference(84 units)

Terminations(733 units)

New Lease(798 units)

8th FP End(7,318 units) Occupancy Rate (+1.1 pt)

Occupancy rates for Greater Tokyo Area andOther Areas have improved

7,000

Renewals(6,520 units)

6,500Greater Tokyo Area [ 94.9%→

96.0% ]

Other Areas→

97.2% ]

 Rent per Tsubo
6,000

95.2% → 96.3%

Occupancy
Rate
96.3%

Occupancy
Rate
95.2%

5,500

[ 95.8%( ¥11,372 → ¥11,295 - 0.7%)

Properties

Difference

Portfolio at 7th FP End-108 yen

142 properties

Notes(-0.9%)

8th FP Property Replacement+31 yenacquired 2 new properties(+0.2%)

Portfolio at 8th FP End-77 yen

11,372 yen → 11,295 yen(-0.7%)

5,000
7th FP End
Units
Rent Level

Property Replacement
Increase/Decrease

Continued Lease(including renewals)

Cancellations

New Lease

8th FP End(units)

7,169

84

6,520

733

798

7,318

(yen/tsubo)

11,372

13,732

11,35911,728

10,87011,295Acquisition : 104 units
Disposition : 120 units

Strategies from 9th FP

Details)(units)GreaterTokyo Area (yen/tsubo)

5,816

84

5,316

584

632

5,948

13,214

12,15812,551

12,663

13,732

12,613(units)

1,353

－

1,204

149

166

1,370

(yen/tsubo)

7,055

－

7,053

7,070

6,824

7,026

Other Areas

Details of Lease Renewals (units that reached end of lease during the 8th FP)
Scheduled for renewal 1,008 units
Units renewed*
860 units (¥11,490/tsubo)
Lease Renewal Rate

85.3 % %*Details

Average
Unit
Units Rent/Tsubo(Ratio)Ratio
860 units
11,444 (－0.4%) (100.0%)－ units
Increase
774 units
Flat
Decrease 86 units－ (10 －%) (－%)
11,388 (±0.0%) ( 90.0%)
11,959 (－3.7%) ( 10.0%)

 React swiftly to market conditions→Further enhance occupancy rates
 Management efficiency through property replacement/
Improve portfolio profitability
 Continue to seek internal growth opportunities

20Changes in Revenue (2)Changes in Rent per Tsubo and Occupancy Rate (5th FP End-9th FP End (forecast))[Rent per Tsubo](Rent/Tsubo)

Rent/Tsubo (Greater Tokyo Area)

Rent/Tsubo (Other Areas)

Rent/Tsubo (Total)(Reference)

15,000Rent
per Tsubo

Total
10,000¥11,381¥11,276¥11,372¥11,295

5th FP End(May 31, 2009)

6th FP End(Nov. 30, 2009)

7th FP End(May 31, 2010)

8th FP End(Nov. 30, 2010)

Forecast(Reference)

Details¥11,270

5th FP End(May 31, 2009)

6th FP End(Nov. 30, 2009)

7th FP End(May 31, 2010)

8th FP End(Nov. 30, 2010)

9th FP End(Forecast)(May 31, 2011)

Total¥11,381¥11,276¥11,372¥11,295¥11,270

GreaterTokyo¥12,695¥12,626¥12,663¥12,551

－

Other
Areas

¥7,177¥7,090¥7,055¥7,026－

5th FP End(May 31, 2009)

6th FP End(Nov. 30, 2009)

7th FP End(May 31, 2010)

8th FP End(Nov. 30, 2010)

9th FP End(Forecast)(May 31, 2011)

5,000

9th FP End (Forecast)(May 31, 2010)[Occupancy Rate]
Occupancy Rate(%)
100.0

Occupancy Rate (greater Tokyo Area)

Occupancy Rate (Other Areas)

96.3%
95.2%
95.0

93.1%

(Reference)

Occupancy Rate (Total)

Forecast(Reference)

96.1%
Occupancy
Rate

92.8%

Total

Details

90.0

Total

93.1%

92.8%

95.2%

96.3%

96.1%

Greater
Tokyo

94.0%

93.0%

94.9%

96.0%

－

Other
Areas

90.2%

92.2%

95.8%

97.2%

－

5th FP End(May 31, 2009)

6th FP End(Nov. 30, 2009)

7th FP End(May 31, 2010)

8th FP End(Nov. 30, 2010)

9th FP End(Forecast)(May 31, 2011)

12.1%

8.4%

15.4%

10.5%

14.5%

85.0

5th FP End(May 31, 2009)

6th FP End(Nov. 30, 2009)

7th FP End(May 31, 2010)

8th FP End(Nov. 30, 2010)

9th FP End (Forecast)(May 31, 2010)(Reference)(Reference)

Turnover
Ratio(Total)21

Engage in Asset Management (Enhance Occupancy Rate/Control of Rent Arrears)
Enhance Occupancy Rate
7th Fiscal Period
Apr.

Mar.

Make Business Plan
Area/Property Characteristics

Categorize 144 Properties

Examine all 7,609 units

9th Fiscal Period

8th Fiscal Period
Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Leasing Activity According to Property Characteristics
5th business day of the month (receive PM reports)
Receive Property Management Accounts
Variance Analysis (Business Plan/Results)
Indicate Leasing Strategy- Target Tenant- Lease Strategy- Rent Level- Occupancy Rate
- Number of Turnovers

Each Property Management Company
Ex) - Directly advertise to local agencies- Marketing to corporations- Making property promotion tools
8th FP End
Occupancy Rate

Maintain/EnhanceOccupancy Rate

Revenue/Cash Distribution
Forecasts

96.3%

Control of Rent Arrears[1] Confirm Status of Rent Arrears (PM Report)- Late rent notice from PM company (initial step)- Meeting to discuss status of rent arrears (regularly)*Status of Bad Debt Loss
1st FP[2] Long-term Rent Arrears- Terminate lease after discussing with a lawyer- Take legal measures, swiftly start rent collection procedure0

2nd FP(thousands of yen)

3rd FP

4th FP

151

892

0

(0.01%)(0.03%)

5th FP

6th FP

7th FP

8th FP

206

48

83

793

(0.01%)(0.00%)(0.00%)(0.02%)*Real estate rental business profit ratio is stated inside the brackets.

22

Management Results
Keep/Enhance Market Competitiveness and Seek Internal Growth Opportunities
Renovations During the 8th Fiscal Period
PRIME URBAN Ebisu Minami

URBAN STAGE Asakusa

 Renovate building entrance to enhance market appeal
・ Change wall surface to white undertones
・ Better image of common area throughlighting modifications

 Enhance Market Competitiveness through Renovations
Unit Rent

Nov. 30, 2010
Occupancy Rate・ Change 2LDK to 1LDK roomin response to market demand

100.0%・ Enhance competitiveness by renewing utilities¥121 thousand¥146 thousand

Seek Internal Growth Opportunities
 Procurement of incidental revenues(Continue to install cellphone antennaes and vending machines) Curtail building management expenses(Change building management companies)

Approx. ¥25 million
Improvement of Profit Other cut expenses(Curtail phone bill for custodian office)(per annum)

23Financial Status (Eighth Fiscal Period End)Interest-bearing Debt

Maturity Diversification(millions of yen)

¥74,676 million

Interest-bearing Debt Total

30,000

Average Remaining Duration of Long-term Loans

2.1 years(millions of yen)

1.62 %

Weighted Average Interest Rate

The Bank of Tokyo-Mitsubishi UFJ
Sumitomo Mitsui Banking
Mitsubishi UFJ Trust and Banking
The Sumitomo Trust and Banking
Development Bank of Japan
Development Bank of Japan

25,00020,000

Repayment
Date

AmountLender※2

25,2341,140
1,140Feb. 26, 2011
1,140
1,560
50 Feb. 26, 2011
40 Feb. 27, 2011※1

14,98015,00073.2 %

Long-term Interest-bearing Debt Ratio

10,00074.8 %

Loan Interest Rate Fixed Ratio

6,610

7,190

6,362

5,070

4,090

5,000

2,390

53.1 %

LTV Level*Long-term Ratio, when including “long-term loans due within a year” in long-term loans, is 100.0%.
*“Loan Interest Rate Fixed Ratio” includes floating rate loans which have been fixed through interest rate swaps.

Credit Rating (As of December 2010)

90

90

90

1,130

1,350

0
9th
10th
11th
12th
13th
14th
15th
16th
17th
18th
19th
20th
21st
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
*Date of Repayment: Aug. 2011 (¥7,990 million/installment repayment ¥90 million), Sep. 2011 (¥6,900 million)*Date of Repayment: Dec. 2011 (¥14,144 million), Feb. 2012 (¥11,000 million/installment repayment ¥90 million)

Lender Diversification (16 Lenders)(millions of yen)

AgencyJCR

RatingOutlookLong-term Senior Debt Rating: AA

Negative

Long-term Corporate Credit Rating: A

StableS&P
Short-term Corporate Credit Rating: A－1

Major Banks (3)Trust Banks (3)Regional Banks (3)The Bank of Tokyo-Mitsubishi UFJ

12,512 Mitsubishi UFJ Trust and Banking

12,512 The Iyo Bank

1,000

Sumitomo Mitsui Banking

12,512 The Sumitomo Trust and Banking

6,480 The Bank of Fukuoka

1,000

Mizuho Corporate Bank

6,920 The Nomura Trust and Banking

3,500 The Chiba Bank

Insurance Companies (4)Others (3)Taiyo Life Insurance

3,000 Development Bank of Japan

Mitsui Sumitomo Insurance

2,100 Aozora Bank

Daido Life Insurance

1,100 Shinkin Central BankThe Dai-ichi Life Insurance

750

8,270
500
1,720

800

24

Appraisal Value Status (Eighth Fiscal Period End)
Appraisal Value
7th FP End Appraisal Value (A)*¥121,579 million

8th FP End Appraisal Value (B)¥121,231 million

Appraisal Value Details
 Increase

44 properties ( 030.6 %) Flat36 properties ( 025.0 %) Decrease 64 properties ( 044.1 %)-¥348 million

Difference (A)-(B)Total

144 properties ( 100.0 %)*“7th FP End Appraisal Value” includes the appraisal value at the time of acquisition of the 2 properties
acquired during the 8th FP. It also excludes the appraisal value of 1 property disposed during the 8th FP.

Range of Cap Rate, Appraisal Value, and Book-to-Market Ratio
Appraisal Value(%)

Average Cap Rate

Book-to-Market Ratio*

6.0(billion yen)

1,500

5.0

Downward Trend

4.0

1,000

3.0
2.0

500

1.0
0.99x

1.00x

0.98x

0.96x

0.92x

0.89x

0.90x

0.90x

0.0

0
1st FP

2nd FP

3rd FP

4th FP

5th FP

6th FP

7th FP

8th FP

Average Cap Rate

5.14 %

5.05 %

5.04 %

5.18 %

5.43 %

5.61 %

5.58 %

5.57 %

Appraisal Value￥67.57 billion￥76.66 billion ￥111.47 billion ￥113.55 billion ￥113.57 billion ￥109.34 billion ￥119.47 billion ￥121.23 billion

Total Book Value￥68.32 billion￥76.83 billion ￥113.51 billion ￥118.81 billion ￥124.09 billion ￥123.54 billion ￥133.27 billion ￥134.70 billion

Book-to-Market Ratio*
0.99 x1.00 x*Book-to-Market Ratio=Appraisal Value/Book Value

0.98 x0.96 x0.92 x0.89 x0.90 x0.90 x25

Unitholders (Eighth Fiscal Period End)
Changes in Number of Units Held by Unitholders and the Ratio
125,535 units(units)120,000

96,765 units

20.6%

19.8%

12.1%

9.7%

Individuals/Others( 24,893 units / 9,615unitholders )100,000
18.2%

19.6%

9.5%

11.2%

80,00060,00016.1%

Foreign Corporations, etc.
( 12,164 units / 104 unitholders )

15.4%

15.4%

Domestic Corporation (excluding Financial Institutions)( 19,317 units / 180 unitholders )16.1%

Financial Institutions (including Securities Companies)( 69,161 units / 89 unitholders )40,000
56.2%

53.1%

5th Fiscal Period

6th Fiscal Period

54,396 units

51,380 units

20,000

51.9%

55.1%

7th Fiscal Period

8th Fiscal Period

0(Financial Institutions)
Total

56.2%

53.1%

65,108 units

51.9%

69,161 units

55.1%

Banks

6,815 units

7.0%

6,466 units

6.7%

6,436 units

5.1%

6,043 units

4.8%

Trust banks

32,592 units

33.7%

32,544 units

33.6%

44,642 units

35.6%

47,733 units

38.0%Life Insurance

1,520 units

1.6%

1,309 units

1.4%

3,311 units

2.6%

3,505 units

2.8%

Non-life Insurance

7,210 units

7.5%

5,165 units

5.3%

3,191 units

2.5%

2,210 units

1.8%

Securities Companies, etc.

698 units

0.7%

337 units

0.3%

1,087 units

0.9%

3,233 units

2.6%

Other

5,561 units

5.7%

5,559 units

5.7%

6,441 units

5.1%

6,437 units

5.1%

Top 10 Unitholders
Units

Ratio (%)

#

Units

Ratio (%)

1

Japan Trustee Services Bank, Ltd.

25,211

20.08

6

AIG EDISON-GA NON DIMA

2,394

1.91

2

Nomura Real Estate Development Co., Ltd.

15,240

12.14

7Asahi Fire and Marine Insurance Co., Ltd.

2,000

1.59

3

The Nomura Trust and Banking Co., Ltd.

12,64210.07

8National Mutual Insurance Federation of Agriculture Cooperatives

1,460

1.16

4

Trust and Custody Services Bank, Ltd.

4,758

3.79

9

The Senshu Ikeda Bank, Ltd.

1,161

0.92

5

The Master Trust Bank of Japan, Ltd.

3,510

2.80

10 State Street Bank and Trust Company (505025)

1,017

0.81

69,393

55.28#

Unitholders

Unitholders

Total(Note) The Ratio is calculated as the percentage of Total Number of Owned Investment Units divided by Total Number of Issued Investment Units.

26

Changes in Investment Unit Price and Cash Distribution (since inception)
Changes in Investment Unit Price
NRF's Unit Price(yen/unit)

TSE REIT Index

1,000,000

3,000
Investment Unit Price

Highest Price¥979,000 (Mar. 29, 2007)

900,000

TSE REIT Index

2,500

800,000
700,000

2,000

600,000
500,000

1,500

*BPS
¥492 thousand
Nov. 30, 2010
¥401,500

400,000
1,000

300,000
200,000

500
Lowest Price¥287,600 (Jan. 15, 2009)

100,000
00
May 31,
2007

Feb. 14,2007
1st FP

Nov. 30,
2007
2nd FP

Nov. 30,
2008

May 31,2008
3rd FP

4th FP

Nov. 30,
2009

May 31,2009
5th FP

6th FP

May 31,2010
7th FP

Nov. 30,2010
8th FP

Changes in Cash Distribution(yen)

20,00016,00014,14414,005

13,91013,631

12,127

12,068

11,960(f orecast)

8th FP End
Nov. 30, 2010

9th FP End
May 31, 2011

11,046

12,000
8,102
8,000

4,000

0
1st FP End
May 31, 2007

2nd FP End
Nov. 30, 2007

3rd FP End
May 31, 2008

4th FP End
Nov. 30, 2008

5th FP End
May 31, 2009

6th FP End
Nov. 30, 2009

7th FP End
May 31, 201027

ＡＰＰＥＮＤＩＸ

28

Changes in Financial Performance

1st FP

2nd FP

3rd FP

4th FP

5th FP

6th FP

7th FP

8th FP

Operating Revenues

million y en

2,304

2,484

3,261

3,809

4,025

3,959

4,323

4,466

Operating Income

million y en

1,078

1,263

1,622

1,890

1,949

1,926

2,037

2,150

Net Income

million y en

551

953

1,173

1,368

1,345

1,319

1,386

1,514

Asset Total

million y en

75,31380,890118,747

124,705

130,433

128,433

138,755

140,614

Interest-bearing Debt Total

million y en

31,94037,10061,724

67,23672,99670,97673,04674,676

Net Asset

million y en

41,80742,20954,94355,13855,11555,08863,18663,314

1.6

2.4

2.3

2.2

2.1

2.0

2.0

2.2

Return on Assets (ROA)%

Return on Equity (ROE)

%

3.4

4.5

4.7

5.0

4.9

4.8

4.4

4.8

FP End Capital Adequacy Ratio

%

55.5

52.2

46.3

44.2

42.3

42.9

45.5

45.0

LTV

%

42.4

45.9

52.0

53.9

56.0

55.3

52.6

53.1

times

3.6

4.4

4.0

3.8

3.4

3.3

3.4

3.5

%

1.68

1.65

1.51

1.55

1.57

1.61

1.61

1.62

y ears

4.4

4.0

3.6

3.5

2.8

2.8

2.4

2.1

million y en

1,739

1,985

2,569

3,039

3,138

3,125

3,300

3,459

%

5.19

5.27

4.66

5.24

5.17

5.15

5.02

5.19

million y en

949

1,351

1,748

2,064

2,089

2,055

2,174

2,305

Portfolio

properties

89

97

131

134

139

139

143

144

Acquisition Price Total

million y en

67,03575,420110,330

115,939

121,482

121,482

131,462

133,416

Book Value Total

million y en

68,32876,837

113,515

118,818

124,095

123,545

133,272

134,701

Appraisal Value Total

million y en

67,57076,663

111,473

113,555

113,576

109,349

119,471

121,231

NAV per Unit

thousand y en

602

617

546

515

460

422

393

397

Interest Coverage Ratio
Weighted Average Interest Rate
Long-term Debt
Average Remaining Duration
Rent NOINOI Yield (acquisition price base)
FFO

ROA=Current Prof its/[(Total Asset Value at Start of FP+Total Asset Value at FP End)÷2]x100 *annual basis

Rent NOI=Real Estate Rental Business Rev enues-Real Estate Rental Business Income+Current FP Depreciation and Amortization

ROE=Net Income/[(Total Asset Value at FP Start+Total Asset Value at FP End)÷2]x100 *annual basis

NOI Y ield (Acquisition Price Base)=Rent NOI/Total Acquisition Price x 100 *annual basis

Capital Adequacy Ratio at FP End=Net Asset at FP End/Total Asset at FP End x 100

FFO=Net Income+Current FP Depreciation and Amortization-Real Estate Disposition Prof it & Loss

LTV=Total Interest-bearing Debt at FP End/Total Asset at FP End x 100

NAV per Unit=[Net Asset Total-(Income Statement Total-Appraisal Value Total)]/Total Number of Inv estment Units Issued

Interest Cov erage Ratio=Net Income Bef ore Interest Depreciation/Interest Expenses

29Interest-bearing Debts (Eighth Fiscal Period End)
LenderShort-term Loan
(Includes long-termloans to be repayedwithin a year)

Short-term Loan
Sub Total

Amount(Millions of Yen)

Type ofInterest

Interest Rate

Date of
Loan

Date of
Repayment

Remaining
Period4 Financial Institutions

4,980

Fixed Rate (*1)

1.24920%

Feb. 26, 2008

Feb. 26, 2011

0.2 years

8 Financial Institutions

7,990

Floating Rate

1.34000%

Feb. 26, 2010

Aug. 26, 2011

0.7 years

3 Financial Institutions

3,400

Fixed Rate

1.51625%

Sep. 4, 2008

Sep. 4, 2011

0.8 years

6 Financial Institutions

3,500

Fixed Rate (*1)

1.84464%

May 31, 2007

Sep. 30, 2011

0.8 years

1 Financial Institution

80

Fixed Rate

2.10000%

Aug. 27, 2009

(*2)

－

1 Financial Institution

100

Fixed Rate

2.03000%

Feb. 26, 2010

(*3)

－

10 Financial Institutions

20,050

－

－

－

－

－

2 Financial Institutions

5,048

Fixed Rate (*1)

1.43250%

Dec. 26, 2008

Dec. 26, 2011

1.1 years

2 Financial Institutions

9,096

Floating Rate

1.27000%

Jun. 28, 2010

Dec. 26, 2011

1.1 years

7 Financial Institutions

11,000

Fixed Rate (*1)

1.79300%

Feb. 27, 2007

Feb. 27, 2012

1.2 years

2 Financial Institutions

2,200

Fixed Rate

1.81375%

Apr. 27, 2007

Aug. 27, 2012

1.7 years

5 Financial Institutions

2,600

Fixed Rate (*1)

1.49300%

Aug. 27, 2009

Aug. 27, 2012

1.7 years

Sep. 7, 2010

Aug. 27, 2012

1.7 years

1.28615%

1 Financial Institution

1,720

Floating Rate

4 Financial Institutions

1,600

Fixed Rate (*1)

1.51625%

Dec. 3, 2009

Dec. 3, 2012

2.0 years

3 Financial Institutions

5,500

Fixed Rate

1.83625%

May 23, 2008

May 23, 2013

2.5 years

3 Financial Institutions

5,472

Fixed Rate (*1)

1.74250%

Sep. 29, 2008

Sep. 29, 2013

2.8 years

1 Financial Institution

800

Fixed Rate

1.99875%

Sep. 27, 2007

Sep. 30, 2013

2.8 years

2 Financial Institutions

2,000

Fixed Rate (*1)

2.14360%

Feb. 27, 2007

Feb. 27, 2014

3.2 years

1 Financial Institution

2,000

Fixed Rate

2.13625%

Feb. 27, 2007

Feb. 27, 2014

3.2 years

1 Financial Institution

1,000

Fixed Rate (*1)

1.79200%

Feb. 26, 2010

Feb. 26, 2015

4.2 years

1 Financial Institution

1,300

Fixed Rate

2.23500%

May 15, 2007

Feb. 27, 2015

4.2 years

1 Financial Institution

1,440

Fixed Rate

2.10000%

Aug. 27, 2009

(*2)

－

Long-term Loan

Collateral

Unsecured
Unguaranteed－

Unsecured
Unguaranteed

1 Financial Institution

1,850

Fixed Rate

2.03000%

Feb. 26, 2010

(*3)

－

Long-term Loan
Sub Total

14 Financial Institutions

54,626

－

－

－

－

－

－

Total

16 Financial Institutions

74,676

－

－

－

－

－

－

(*1) The interest rate stated regarding this loan takes into consideration the Interest Rate Sw ap transaction.
(*2) The amount of ￥40 million to be repayed on February 27, 2010、the first repayment date, and every August 27 and February 27 thereafter, until the last repayment of ￥ 1,080 million on August 27, 2016.
(*3) The amount of ￥50 million to be repayed on August 26, 2010, the first repayment date, and every February 26 and August 26 thereafter, until the last repayment of \1,350 million on February 26, 2017.

30

Results of Investor Relation Efforts
Launching of English Website

URL http://www.nre-rf.co.jp/english/[2] The Latest NRF Data

[1] Highlights the Most Recent
Property Acquisition, etc.

[1][3] Direct Access to Latest
Disclosure Material[2][4] List of Website Links on the Main Page
[3]

[4]

Participate in J-REIT Fair 2010 (Sep. 11, 2010)

Renewal of Japanese Website
 The new website has more
information regarding NRF
and is easier to navigate②③

 Increase recognition fromindividual investors- Venue- Visitors: TSE Hall: 758 people

31Portfolio Status (144 Properties at Eighth Fiscal Period End)

12.

Diversification Within Assets

3%■Top 5 Properties¥16.37 billion

25.2%■Over 10 years

31.8%■1-3 years

Considering the combination ofvarious building age to avoid thebias of large-scale repair
expenses

Improve portfolio stability
through promotion ofdiversification⇒Top 10 Properties 20.9%

20.9%

79.1%
■Other 134 Properties¥105.51 billion

Investment Area

Building Age

13.0%

87.

17.9%
■5-10 years■Top 10 Properties¥27.90 billion
0%■Greater Tokyo Area

■Other Areas⇒Average Building Age
8.1 Years

Floor Area Per Unit

0.9%
■Over 70 sqm

25.

2%■3-5 years

0.

4%■Retail & Office

6.3%
Greater Tokyo Area 70% or more
Other Areas 30% or less⇒Greater Tokyo Area 87.0%

Other Areas(Kanagawa, Chiba, Saitama)

3.4%

68.8%

Tokyo (excluding the 23 wards)

Nearest Station on Foot 7.7%

Selection focusing onaccessibility to the nearest
railway stations

92.3%⇒Under 50 sqm 92.3%■Within 5 min.

■50-70 sqm

17.4%■30-50 sqm

Tokyo (23 wards)

51.4%■Over 10 min.

⇒Within 10 min.

Investing in properties targeting
single/DINKS/young family
households for theforeseeable future

14.8%

Units Per Property

18.1%■Over 100 Units

74.9%■Under 30 sqm

10.

2%■Under 30 Units

Investing in properties withstrong lease-up potential in ashort timeframe

40.9%⇒Average Unit Per Property
52 Units■5-10 min.

43.5%
■50-100 Units28.

2%■30-50 Units*Of the graphs above, “Floor area per unit” is based on units, the others are based on acquisition price.

32

Portfolio Map (143 Properties: Greater Tokyo Area 116 Properties)
Greater Tokyo Area
PROUD FLAT Shirokane Takanawa

Greater Tokyo Area

PROUD FLAT Shibuya Sakuragaoka
PROUD FLAT Gakugei Daigaku

PRIME URBAN Kasai II
PRIME URBAN Shinyurigaoka
PRIME URBAN Urayasu
PRIME URBAN Gyotoku I
PRIME URBAN Gyotoku II

PROUD FLAT Meguro Gyoninzaka
PROUD FLAT Sumida Riverside

PRIME URBAN Gyotoku Ekimae
PRIME URBAN Nishi Funabashi

PROUD FLAT Kagurazaka
PROUD FLAT Waseda
PROUD FLAT Shinjuku Kawadacho

PRIME URBAN Kawaguchi
URBAN STAGE Azabu Juban
URBAN STAGE Shibaura LOFTURBAN STAGE Hatagaya
URBAN STAGE Toritsu Daigaku
URBAN STAGE Kachidoki
URBAN STAGE Shinkawa

PROUD FLAT Yoyogi Uehara
PROUD FLAT Hatsudai

PROUD FLAT Sangen Jaya
PROUD FLAT Kamata
PROUD FLAT Kamata II
PROUD FLAT Shinotsuka
PROUD FLAT Kiyosumi Shirakawa
PROUD FLAT Monzen Nakacho II
PROUD FLAT Monzen Nakacho I
PROUD FLAT Asakusa Komagata
PROUD FLAT Yokohama
PROUD FLAT Kamioooka
PRIME URBAN Akasaka
PRIME URBAN Tamachi
PRIME URBAN Ebisu Minami
PRIME URBAN Yoyogi
PRIME URBAN Bancho
PRIME URBAN Chiyoda Fujimi
PRIME URBAN Iidabashi
PRIME URBAN Ebisu
PRIME URBAN Naka Meguro
PRIME URBAN Gakugei Daigaku
PRIME URBAN Senzoku
PRIME URBAN Meguro Riverside
PRIME URBAN Meguro Ohashi Hills
PRIME URBAN Hakusan
PRIME URBAN Yotsuya Gaien Higashi
PRIME URBAN Nishi Shinjuku I
PRIME URBAN Nishi Shinjuku II
PRIME URBAN Shinjuku Naitomachi
PRIME URBAN Nishi Waseda
PRIME URBAN Sangen Jaya
PRIME URBAN Minami Karasuyama
PRIME URBAN Karasuyama Galleria
PRIME URBAN Karasuyama Court
PRIME URBAN Chitose Funabashi
PRIME URBAN Shinagawa Nishi
PRIME URBAN Osaki
PRIME URBAN Omori
PRIME URBAN Kita Senzoku
PRIME URBAN Denenchofu Minami
PRIME URBAN Nakano Kamitakada
PRIME URBAN Nishi Ogikubo
PRIME URBAN Otsuka
PRIME URBAN Monzen Nakacho
PRIME URBAN Kameido
PRIME URBAN Sumiyoshi
PRIME URBAN Kinshi Koen
PRIME URBAN Kinshicho
PRIME URBAN Hirai
PRIME URBAN Kasai

117 Properties

Omiya

SaitamaMinami
Urawa

Tobu
IsesakiLine
Adachi-ku

URBAN STAGE Nihonbashi Yokoyamacho
URBAN STAGE Hongo Ikizaka
URBAN STAGE Naka Ochiai
URBAN STAGE Ochiai
URBAN STAGE Shinjuku Ochiai
URBAN STAGE Roka Koen
URBAN STAGE Kamiuma
URBAN STAGE Sangen Jaya
URBAN STAGE Chitose Karasuyama
URBAN STAGE Sangen Jaya II
URBAN STAGE Komazawa
URBAN STAGE Karasuyama
URBAN STAGE Kamikitazawa
URBAN STAGE Yoga
URBAN STAGE Oimachi
URBAN STAGE Oimachi II
URBAN STAGE Yukigaya
URBAN STAGE Ikegami
URBAN STAGE Nakano
URBAN STAGE Takaido
URBAN STAGE Komagome
URBAN STAGE Mukojima
URBAN STAGE Ekoda
URBAN STAGE Takinokawa
URBAN STAGE Itabashi Kuyakushomae
URBAN STAGE Asakusa
URBAN STAGE Machiya
URBAN STAGE Koganei
URBAN STAGE Musashi Koganei
URBAN STAGE Musashino Hills
URBAN STAGE Hino
URBAN STAGE Musashi Kosugi comodo
URBAN STAGE Kawasaki
URBAN STAGE Tsurumi Teraya
URBAN STAGE Urayasu
URBAN STAGE Minami Gyotoku I
URBAN STAGE Minami Gyotoku II
URBAN STAGE Minami Gyotoku III
URBAN STAGE Minami Gyotoku IV
URBAN STAGE Gyotoku Ekimae
URBAN STAGE Minami Gyotoku V
URBAN STAGE Gyotoku
URBAN STAGE Minami Urawa
URBAN STAGE Yono Hommachi

Kita-ku

Chiba

Itabashi-ku
Nerima-ku

Katsushika-ku
Arakawa-ku
Toshima-ku

IkebukuroBunkyo-ku

TachikawaTaito-ku

Ueno

Takadanobaba

Sumida-ku

Kichijoji
Shinjuku-ku

Nishi
Funabashi

Edogawa-ku

Nakano-ku
Suginami-ku

Shinjuku

Chiyoda-ku

TokyoShibuya-ku

Koto-ku

Minato-ku

Chuo-ku

Urayasu

Shibuya

Setagaya-ku

ShinagawaMeguro-ku

Shinagawa-ku

Kanagawa

Ota-kuHaneda Airport

JR
KeihinTohokuLine

Yokohama

JR Lines
Other Lines*Greater Tokyo Area
(Tokyo, Kanagawa, Chiba, Saitama)

33

Portfolio Map (143 Properties: Other Areas 27 Properties)
SapporoPRIME URBAN Yamahana
PRIME URBAN Kita Juyo Jo
PRIME URBAN Odori Koen I
PRIME URBAN Odori Koen II
PRIME URBAN Kita Juichi Jo

Osaka

3 Properties

Osaka
International
AirportHankyuSenri
LineHankyuTakarazuka
Line

JR
Kyoto
Line

JR Lines
Other Lines

PRIME URBAN Miyanosawa
Esaka

PRIME URBAN Odori Higashi
PRIME URBAN Chiji Kokan
PRIME URBAN Maruyama
PRIME URBAN Kita Nijuyo Jo

JRFukuchiyama
Line

Sapporo 11 Properties

TokaidoShinkansen

Shin Osaka

PRIME URBAN Sapporo Idaimae
Miyanosawa

Sendai

Sakae Machi

Asabu

Kita
NijuyoJo

Osaka
Kanjo Line

Kotoni

Osaka

PROUD FLAT Itsutsubashi
PROUD FLAT Kawaramachi

SapporoSapporo

Umeda

Odori

PRIME URBAN Nagamachi Icchome

Maruyama Koen

PRIME URBAN Yaotome Chuo
URBAN STAGE Tsutsumidori Amamiya

Namba

NagoyaFukuzumi

PRIME URBAN Aoi
PRIME URBAN Kanayama
PRIME URBAN Tsurumai

Nagoya 3 Properties

Fukuoka 5 Properties

Meitetsu
Seto Line

Kashii

Osaka

Sendai5 Properties

Izumi Chuo

Ozone

Nagoya Municipal
Subway Meijo Line

JR Chuo
Main Line

NagoyaPRIME URBAN Esaka I
FushimiPRIME URBAN Esaka II
PRIME URBAN Esaka III

Fukuoka
Benefis Hakata Grand Sweet

TenjinYakuinFukuoka
Hakata Airport

Fukuoka Municipal
Subway Kuko Line

Chikusa

Motoyama
Kita Sendai
Sendai
Municipal
SubwayNamboku Line

Tsurumai

JR Sasaguri Line

Meinohama

Sakae

Kanayama
TokaidoShinkansen

YagotoNagamachi
Minami

Benefis Yakuin Minami
Benefis Kashii Verbena
Benefis Hakata Higashi Grand Sweet

Sendai

Hashimoto
OhashiJR
Kagoshima
Main Line

Aratama-bashi

Nagamachi

Tomizawa

Benefis Chihaya Grand Sweet*Other Areas (3 major metropolitan areas (excluding Tokyo) and other government designated cities)

34

Portfolio (Eighth Fiscal Period End)

#
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36

Name of Property
PROUD FLAT Shirokane Takanawa
PROUD FLAT Yoyogi Uehara
PROUD FLAT Hatsudai
PROUD FLAT Shibuya Sakuragaoka
PROUD FLAT Gakugei Daigaku
PROUD FLAT Meguro Gyoninzaka
PROUD FLAT Sumida Riverside
PROUD FLAT Kagurazaka
PROUD FLAT Waseda
PROUD FLAT Shinjuku Kawadacho
PROUD FLAT Sangen Jaya
PROUD FLAT Kamata
PROUD FLAT Kamata II
PROUD FLAT Shinotsuka
PROUD FLAT Kiyosumi Shirakawa
PROUD FLAT Monzen Nakacho II
PROUD FLAT Monzen Nakacho I
PROUD FLAT Asakusa Komagata
PROUD FLAT Yokohama
PROUD FLAT Kamioooka
PRIME URBAN Akasaka
PRIME URBAN Tamachi
PRIME URBAN Ebisu Minami
PRIME URBAN Yoyogi
PRIME URBAN Bancho
PRIME URBAN Chiyoda Fujimi
PRIME URBAN Iidabashi
PRIME URBAN Ebisu
PRIME URBAN Naka Meguro
PRIME URBAN Gakugei Daigaku
PRIME URBAN Senzoku
PRIME URBAN Meguro Riverside
PRIME URBAN Meguro Ohashi Hills
PRIME URBAN Hakusan
PRIME URBAN Yotsuya Gaien Higashi
PRIME URBAN Nishi Shinjuku I

Location
Minato-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
Meguro-ku, Tokyo
Meguro-ku, Tokyo
Chuo-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Setagaya-ku, Tokyo
Ota-ku, Tokyo
Ota-ku, Tokyo
Toshima-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Taito-ku, Tokyo
Yokohama-shi, Kanagawa
Yokohama-shi, Kanagawa
Minato-ku, Tokyo
Minato-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
Chiyoda-ku, Tokyo
Chiyoda-ku, Tokyo
Chiyoda-ku, Tokyo
Meguro-ku, Tokyo
Meguro-ku, Tokyo
Meguro-ku, Tokyo
Meguro-ku, Tokyo
Meguro-ku, Tokyo
Meguro-ku, Tokyo
Bunkyo-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo

Acquisition Price
Occupancy Rate
Percentage Leasable Floor
Leasableof Total (%)
Area (sqm)
Units (units) (end of 8th FP)(%)(thousands of yen)
3,510,000
2.6
2,950.11
106
94.3
1,100,000
0.8
1,151.3444
100.0
865,000
0.6
958.9831
100.0
800,000
0.6
638.7030
93.3
812,000
0.6
934.3941
91.8
882,000
0.7
855.2340
97.5
2,260,000
1.7
3,055.21
110
97.7
1,540,000
1.2
1,793.4370
97.6
1,110,000
0.8
1,450.9160
97.2
1,010,000
0.8
1,102.2041
100.0
1,350,000
1.0
1,277.82
48
94.5
1,140,000
0.9
1,541.64
67
97.2
2,980,000
2.2
4,051.72
169
96.6
695,000
0.5
752.0935
97.2
900,000
0.7
1,209.5655
100.0
650,000
0.5
830.5535
100.0
1,130,000
0.8
1,191.08
55
96.3
1,960,000
1.5
2,685.3979
93.4
2,340,000
1.8
3,118.12113
99.1
2,770,000
2.1
4,872.17200
100.0
956,000
0.7
1,062.05
25
94.4
941,000
0.7
1,107.36
48
100.0
947,000
0.7
881.8921100.0
408,000
0.3
439.5619
90.1
1,170,000
0.9
1,277.04
52
96.1
707,000
0.5
793.8732
93.5
2,030,000
1.5
2,087.70
90
98.9
1,200,000
0.9
1,444.40
29
93.0
1,320,000
1.0
1,302.4249
95.9
886,000
0.7
1,008.3932
100.0
536,000
0.4
655.272293.7
464,000
0.3
453.7724
95.6
3,580,000
2.7
2,955.74
99
96.6
893,000
0.7
1,069.8242
96.4
1,700,000
1.3
1,759.1151
88.4
1,290,000
1.0
1,459.86
60
96.8

35

Portfolio (Eighth Fiscal Period End)

#
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72

Name of Property
PRIME URBAN Nishi Shinjuku II
PRIME URBAN Shinjuku Naitomachi
PRIME URBAN Nishi Waseda
PRIME URBAN Sangen Jaya
PRIME URBAN Minami Karasuyama
PRIME URBAN Karasuyama Galleria
PRIME URBAN Karasuyama Court
PRIME URBAN Chitose Funabashi
PRIME URBAN Shinagawa Nishi
PRIME URBAN Osaki
PRIME URBAN Omori
PRIME URBAN Kita Senzoku
PRIME URBAN Denenchofu Minami
PRIME URBAN Nakano Kamitakada
PRIME URBAN Nishi Ogikubo
PRIME URBAN Otsuka
PRIME URBAN Monzen Nakacho
PRIME URBAN Kameido
PRIME URBAN Sumiyoshi
PRIME URBAN Kinshi Koen
PRIME URBAN Kinshicho
PRIME URBAN Hirai
PRIME URBAN Kasai
PRIME URBAN Kasai II
PRIME URBAN Shinyurigaoka
PRIME URBAN Urayasu
PRIME URBAN Gyotoku I
PRIME URBAN Gyotoku II
PRIME URBAN Gyotoku Ekimae
PRIME URBAN Nishi Funabashi
PRIME URBAN Kawaguchi
URBAN STAGE Azabu Juban
URBAN STAGE Shibaura LOFTURBAN STAGE Hatagaya
URBAN STAGE Toritsu Daigaku
URBAN STAGE Kachidoki

Location
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Shinagawa-ku, Tokyo
Shinagawa-ku, Tokyo
Ota-ku, Tokyo
Ota-ku, Tokyo
Ota-ku, Tokyo
Nakano-ku, Tokyo
Suginami-ku, Tokyo
Toshima-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Sumida-ku, Tokyo
Sumida-ku, Tokyo
Edogawa-ku, Tokyo
Edogawa-ku, Tokyo
Edogawa-ku, Tokyo
Kawasaki-shi, Kanagawa
Urayasu-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Funabashi-shi, Chiba
Kawaguchi-shi, Saitama
Minato-ku, Tokyo
Minato-ku, Tokyo
Shibuya-ku, Tokyo
Meguro-ku, Tokyo
Chuo-ku, Tokyo

Acquisition Price
Occupancy Rate
Percentage Leasable Floor
Leasableof Total (%)
Area (sqm)
Units (units) (end of 8th FP)(%)(thousands of yen)
1,000,000
0.7
1,162.5546
93.6
512,000
0.4
578.181493.0
503,000
0.4
507.1128
100.0
835,000
0.6
874.1533
97.1
840,000
0.6
1,049.7341
100.0
645,000
0.5
835.0533
97.0
413,000
0.3
576.2023
95.6
885,000
0.7
1,027.4438
100.0
624,000
0.5
961.2546
93.8
1,700,000
1.3
2,106.16
99
100.0
824,000
0.6
1,190.70
54
96.3
576,000
0.4
834.9046
93.5
900,000
0.7
1,100.1744
96.1
640,000
0.5
818.7533
92.6
435,000
0.3
543.0924
96.1
794,000
0.6
944.9946
95.8
2,200,000
1.6
3,207.92
118
98.4
705,000
0.5
1,117.34
52
98.1
552,000
0.4
813.5240
100.0
1,180,000
0.9
1,886.50
77
97.4
668,000
0.5
991.6249
100.0
700,000
0.5
1,095.9153
94.3
637,000
0.5
905.81
45
77.8
958,000
0.7
1,437.84
68
95.6
1,210,000
0.9
1,708.1964
100.0
840,000
0.6
1,264.8460
100.0
635,000
0.5
1,151.36
52
90.4
741,000
0.6
1,244.00
58
100.0
476,000
0.4
778.1937
100.0
772,000
0.6
1,237.8060
95.0
2,170,000
1.6
2,477.11
98
92.6
991,000
0.7
1,222.1340
97.3
1,510,000
1.1
1,905.3968
100.0
452,000
0.3
650.6038
100.0
524,000
0.4
996.8116
100.0
2,290,000
1.7
4,524.00
145
99.6

36

Portfolio (Eighth Fiscal Period End)

#
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108

Name of Property
URBAN STAGE Shinkawa
URBAN STAGE Nihonbashi Yokoyamacho
URBAN STAGE Hongo Ikizaka
URBAN STAGE Naka Ochiai
URBAN STAGE Ochiai
URBAN STAGE Shinjuku Ochiai
URBAN STAGE Roka Koen
URBAN STAGE Kamiuma
URBAN STAGE Sangen Jaya
URBAN STAGE Chitose Karasuyama
URBAN STAGE Sangen Jaya II
URBAN STAGE Komazawa
URBAN STAGE Karasuyama
URBAN STAGE Kamikitazawa
URBAN STAGE Yoga
URBAN STAGE Oimachi
URBAN STAGE Oimachi II
URBAN STAGE Yukigaya
URBAN STAGE Ikegami
URBAN STAGE Nakano
URBAN STAGE Takaido
URBAN STAGE Komagome
URBAN STAGE Mukojima
URBAN STAGE Ekoda
URBAN STAGE Takinokawa
URBAN STAGE Itabashi Kuyakushomae
URBAN STAGE Asakusa
URBAN STAGE Machiya
URBAN STAGE Koganei
URBAN STAGE Musashi Koganei
URBAN STAGE Musashino Hills
URBAN STAGE Hino
URBAN STAGE Musashi Kosugi comodo
URBAN STAGE Kawasaki
URBAN STAGE Tsurumi Teraya
URBAN STAGE Urayasu

Location
Chuo-ku, Tokyo
Chuo-ku, Tokyo
Bunkyo-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Shinagawa-ku, Tokyo
Shinagawa-ku, Tokyo
Ota-ku, Tokyo
Ota-ku, Tokyo
Nakano-ku, Tokyo
Suginami-ku, Tokyo
Toshima-ku, Tokyo
Sumida-ku, Tokyo
Nerima-ku, Tokyo
Kita-ku, Tokyo
Itabashi-ku, Tokyo
Taito-ku, Tokyo
Arakawa-ku, Tokyo
Koganei-shi, Tokyo
Koganei-shi, Tokyo
Koganei-shi, Tokyo
Hino-shi, Tokyo
Nakahara-shi, Kanagawa
Kawasaki-shi, Kanagawa
Yokohama-shi, Kanagawa
Urayasu-shi, Chiba

Acquisition Price
Occupancy Rate
Percentage Leasable Floor
Leasableof Total (%)
Area (sqm)
Units (units) (end of 8th FP)(%)(thousands of yen)
2,250,000
1.7
3,600.61
46
98.3
3,530,000
2.6
5,926.17124
94.6
647,000
0.5
662.582788.9
655,000
0.5
1,237.98
18
88.6
324,000
0.2
517.5332
100.0
635,000
0.5
1,053.3928
97.8
362,000
0.3
567.2034
100.0
900,000
0.7
1,739.8637
95.8
755,000
0.6
1,018.7247
95.2
730,000
0.5
1,774.01
27
100.0
539,000
0.4
810.9817
71.5
396,000
0.3
572.41
26
92.3
344,000
0.3
507.5228
96.7
738,000
0.6
1,384.4529
88.7
1,150,000
0.9
1,773.05
54
90.8
530,000
0.4
722.7045
95.6
1,100,000
0.8
1,782.26
93
95.2
970,000
0.7
1,536.5994
96.8
1,460,000
1.1
2,456.4895
100.0
472,000
0.4
801.3051
100.0
1,080,000
0.8
1,746.20
107
96.3
412,000
0.3
990.181992.1
487,000
0.4
1,108.9155
90.8
385,000
0.3
872.4935
96.8
287,000
0.2
554.3929
100.0
940,000
0.7
1,742.64
68
90.3
350,000
0.3
876.7022
100.0
210,000
0.2
455.1926
100.0
229,000
0.2
682.4327
97.6
2,390,000
1.8
5,999.80
98
94.9
1,590,000
1.2
2,961.06
80
94.7
319,000
0.2
994.6854
94.4
2,150,000
1.6
3,690.37
56
100.0
1,150,000
0.9
1,706.4680
96.7
457,000
0.3
952.0650
97.9
277,000
0.2
437.9427
70.4

37

Portfolio (Eighth Fiscal Period End)
#
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144

Name of Property
URBAN STAGE Minami Gyotoku I
URBAN STAGE Minami Gyotoku II
URBAN STAGE Minami Gyotoku III
URBAN STAGE Minami Gyotoku IV
URBAN STAGE Gyotoku Ekimae
URBAN STAGE Minami Gyotoku V
URBAN STAGE Gyotoku
URBAN STAGE Minami Urawa
URBAN STAGE Yono Hommachi
Greater Tokyo Area
PROUD FLAT Itsutsubashi
PROUD FLAT Kawaramachi
PRIME URBAN Yamahana
PRIME URBAN Kita Juyo Jo
PRIME URBAN Odori Koen I
PRIME URBAN Odori Koen II
PRIME URBAN Kita Juichi Jo
PRIME URBAN Miyanosawa
PRIME URBAN Odori Higashi
PRIME URBAN Chiji Koukan
PRIME URBAN Maruyama
PRIME URBAN Kita Nijuyo Jo
PRIME URBAN Sapporo Idaimae
PRIME URBAN Nagamachi Icchome
PRIME URBAN Yaotome Chuo
PRIME URBAN Aoi
PRIME URBAN Kanayama
PRIME URBAN Tsurumai
PRIME URBAN Esaka I
PRIME URBAN Esaka II
PRIME URBAN Esaka III
URBAN STAGE Tsutsumidori Amamiya
Benefis Hakata Grand Suite
Benefis Yakuin Minami
Benefis Kashii Verbena
Benefis Hakata Higashi Grand Suite
Benefis Chihaya Grand Suite
Other Areas
Total

Location
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Saitama-shi, Saitama
Saitama-shi, Saitama
Sendai-shi, Miyagi
Sendai-shi, Miyagi
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sendai-shi, Miyagi
Sendai-shi, Miyagi
Nagoya-shi, Aichi
Nagoya-shi, Aichi
Nagoya-shi, Aichi
Suita-shi, Osaka
Suita-shi, Osaka
Suita-shi, Osaka
Sendai-shi, Miyagi
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka

Percentage Leasable Floor
Acquisition Price
Leasable
Occupancy Rateof Total (%)
Area (sqm)
Units (units) (end of 8th FP)(%)(thousands of yen)
357,000
0.3
682.0541
55.8
285,000
0.2
611.61
37
91.9
263,000
0.2
543.8433
79.0
256,000
0.2
535.0832
100.0
561,000
0.4
927.3346
93.5
293,000
0.2
662.6838
80.0
948,000
0.7
1,766.4777
100.0
274,000
0.2
694.0532
96.4
519,000
0.4
1,372.74
70
92.9
116,125,000
87.0
165,919.33
6,201
96.0
682,000
0.5
1,861.5660
98.7
724,000
0.5
1,967.5464
96.6
377,000
0.3
1,518.58
33
94.4
336,000
0.3
1,155.60
36
97.6
530,000
0.4
1,850.20
53
100.0
322,000
0.2
1,148.72
36
100.0
600,000
0.4
1,851.39
60
98.3
576,200
0.4
2,114.53
54
91.2
424,000
0.3
1,494.36
36
100.0
337,900
0.3
1,007.30
42
97.6
283,200
0.2
911.0727
96.3
503,700
0.4
1,773.9036
94.5
731,600
0.5
2,439.90
58
97.8
1,110,000
0.8
3,411.2460
100.0
428,000
0.3
1,380.2143
95.6
724,000
0.5
1,571.04
46
96.1
632,000
0.5
1,391.02
58
100.0
1,189,096
0.9
2,502.11
104
98.1
672,000
0.5
1,189.1248
100.0
790,000
0.6
1,392.00
57
96.6
1,535,000
1.2
2,151.67
79
100.0
969,000
0.7
4,251.91
65
95.5
830,000
0.6
2,176.23
67
95.4
351,000
0.3
897.84
34
91.7
396,000
0.3
1,222.34
39
100.0
693,000
0.5
1,854.13
65
92.4
545,000
0.4
1,740.70
48
100.0
17,291,696
13.0
48,226.21
1,408
97.2
133,416,696
100.0
214,145.54
7,609
96.3

38

Fund Profile

Structure

History
July 28, 2006
Notification of incorporation by the founder (Nomura Real
Estate Asset Management Co., Ltd.) under Article 69 of theInvestment Trust Law.
August 3, 2006
Registration of incorporation under Article 166 of theInvestment Trust Law. Incorporation of the Nomura Real
Estate Residential Fund, Inc.
August 4, 2006
Applied for registration under Article 188 of the Investment
Trust Law.
August 24, 2006
Registration approved by the Prime Minister of Japan under
Article 187 of the Investment Trust Law (Registration number
56, filed with the Director of the Kanto Local Finance Bureau).
February 14, 2007
Listing on the Tokyo Stock Exchange.

39Asset Management Company Overview

Corporate Data of NREAM

Structure

Name
Nomura Real Estate Asset Management Co., Ltd.

Shareholder’s Meeting
Auditors

Date of Establishment
January 24, 2003

Board of Directors

President & CEO

Capital¥300,000,000
Internal Audit
Compliance CommitteCompliance & Risk
Management Group

Shareholder
Nomura Real Estate Holdings, Inc. (100%)

Property Infromation
Meeting
Valuation
Committe

OfficeManagement Division

ResidenceManagement Division

Investment
Committee

AcquisitionGroup

Private REITManagement Division

Investment
Committee

AssetManagement
Group

Fund
Management
Group

Financial& Control
Group

AcquisitionGroup

Investment
Committee

AssetManagement
Group

Fund
Management
Group

Financial& ControlGroup

Investment
Management
Group

Representative
Atsushi Ogata, President & CEO (since Apr. 2010)
Description of Business
Asset management business for investment
corporations (J-REITs)
Registration & Licenses- Registered for a financial instruments business:
Director of Kanto Local Finance Bureau No. 374

Financial
PlanningGroup- Licensed for discretionary proxy in realty trading:
Minister of Land, Infrastructure and Transport No. 18- Licensed for real estate trading:Governor of Tokyo No. (2) 81679

40

This document has been prepared solely for the purpose of provision of information andshould not be construed as an offer, solicitation or commercial conduct of any natureassociated with any specific products. Investors wishing to purchase the investment unitsof Nomura Real Estate Residential Fund, Inc. should contact their own securities brokers
or dealers.
The forecast statements with respect to the future financial results contained in thisdocument should not be construed as a guarantee of the actual performance in the future.
Although the information contained in this document is intended to be complete andthorough, there is no assurance of precision and safety. Please note that the contents ofthis document is subject to change or cancellation without prior notice.
It is prohibited to make duplication, reproduction, distribution or use of any part or whole ofthe information contained in this document without express prior written consent.