Fourth Fiscal Period Financial Results(ended November 2008)

Basic Principles

Nomura Real Estate Residential Fund, Inc. (the “Fund”) will adhere to the following basic principles in order to
execute fund management in accordance with solid investment policies for investment in residential properties:

Strategy

The Fund will aim to secure stable mid-to-long-term earnings through the strategic selection of properties
and expert asset management based on sufficient understanding of “tenant demands” reflecting thecharacteristics of residential rental property investments and market trends.

Acquisition

The Fund will create a stable portfolio with consideration to rent levels, geographic area, building age,
property type, etc., through the continuous acquisition of “PROUD FLAT” properties from the Nomura Real
Estate Group and “PRIME URBAN” and “URBAN STAGE” properties from other sources utilizing oursourcing expertise.

Asset Management

To maximize the long-term profitability and asset value of the properties under management, the Fund will
select the “optimal property management company corresponding to the characteristics of the property,”
and, at the same time, implement flexible and organized leasing and renewal strategies corresponding totenant trends, aging of the portfolio and the increase of the number of properties under management.

Finance

The Fund will establish a strong financial base such as “conservative LTV ratio,” ”appropriate control ofinterest fluctuation risk through the lengthening of loan periods and fixing of interest rates,” and“diversification of lenders,” in order to manage the Fund in a stable manner with minimum impact fromfinancial market conditions.

Compliance

The Fund will implement fair and transparent fund management through prevention of conflict of interestsand enforcement of compliance to maintain our position as a “REIT committed to meeting the trust andexpectations of the investors.”

Contents

Highlights of the Fourth Fiscal Period (ended Nov. 30, 2008)
 Highlights of the Fourth Fiscal Period

Fund Management Results2

 Investment Results(1) Agreements Concluded in the Fourth Fiscal Period

16(2) Results of Acquisitions During the Fourth Fiscal Period 17

Fund Management Summary Management Results Investment Strategy(1) Portfolio Occupancy Rate

(1) Seek Stable Revenues(Stability of Residential Property Investment)

4(2) Seek Stable Revenues(Investment Strategy Targeting Class with
Strong Tenant Demand)5 Financial Status (Fourth Fiscal Period End)20

 Portfolio Status (134 Properties at Fourth Fiscal Period End)

21

6

 Investment Performance
Growth Of Asset(2) Maintain/Enhance Property‟s Market Competitiveness 19

 Portfolio Map (134 Properties at Fourth Fiscal Period End) 22-23(3) Seek Stable Revenues(Portfolio Structure Based on Strong Tenant Demand)

18

APPENDIX
7
 Portfolio (At Fourth Fiscal Period End)

 Financial Strategy

25-28(1) Establish Stable Financial Base (Status of Loan)

8

 Scheduled Acquisitions After the Fourth Fiscal Period

29(2) Establish Stable Financial Base (Status of Refinance)

9 Interest-bearing Debts (At Fourth Fiscal Period End)30

10

 Unitholders (At Fourth Fiscal Period End)31

 Organization of the Asset Management Company

32

 Financial Status (As of January 16, 2009)
Overview of the Financial Results Income Statement12 Balance Sheet

13 Forecasts for the Fifth Fiscal Period

14

Highlights of the Third Fiscal Period

1Highlights of the Fourth Fiscal Period

Notable Activities
Property Acquisitions

Finance Concluded Agreements:
2 Properties/¥2,179 million

Asset Management

 Establish an optimum interest-bearing debt portfolio Portfolio Occupancy Rate at 4th FP end: 94.4%

Property Acquisition:
A Balanced procurement of both credit (2 properties/
approx. ¥2.1 billion) and term (1 property/¥3.4 billion)
loans⇒ Portfolio including scheduled acquisitions
139 Properties/¥121,482 million

Refinancing:
Enhance financial conservativeness through“Long-term (5 years)” “Fixed Interest Rate” Term
Loans (Approx. ¥5.4 billion)

 Concluded Acquisitions:
3 Properties/¥5,609 million(includes scheduled acquisitions from 3rd FP)⇒ Portfolio of acquired properties
134 Properties/¥115,939 million⇒ Stable occupancy results throughout the FourthFiscal Period
 Maintain and enhance property competitivenessthrough large-scale repairs and renovations, etc.
⇒ Measures taken to maintain and enhance cash flow

⇒ Realize the elongation and fixation of all debt
financing during the Fourth Fiscal Period

Financial Overview
Fourth Fiscal Period(ended November 2008)

Comparison with Forecasts(released July 15, 2008)

Fifth Fiscal Period Forecast（参考）第4期（08年11月期）予想(ending May 2009)183 days million－－¥3,809 million days

+24¥3 million+ 0.1 ％

¥4,065 million

Current Profits¥1,369 million+2¥21 million+ 1.6 ％

¥1,297 million

Net Income¥1,368 million+2¥21 million+ 1.6 ％

¥1,296 million¥14,144+¥224 million+ 1.6 ％

¥13,400

Number of Business Days
Operating Revenues

Cash Distribution Per Unit

182 days million

2Fund Management Summary

3

Investment Strategy (1)Seek Stable Revenues (Stability of Residential Property Investments)
Rent Stability (In Comparison to Other Asset Categories)

Changes in Rent Level of Residence and Other Real Estate(1989=100)

Other real estate rent

Private housing rent
(Tokyo ward area, non-timber house)

Characteristics of Rent
As expense applied for living base, influence
from economic fluctuations is limited and has
been historically stable.
‟89

‟90

‟91

‟92

‟93

‟94

‟95

‟96

‟97

‟98

‟99

‟00

‟01

‟02

‟03

‟04

‟05

‟06

„07

Source: Ministry of Internal Affairs and Communications “Report on the Consumer Price Index”
Bank of Japan “Corporate Service Price Index”

The Fund’s Rent per Tsubo/Occupancy Rate From the Inception (Greater Tokyo Area)
Rent per Tsubo

Rent per Tsubo

Occupancy Rate（%）

Occupancy Rate

20,000100
90

Average 94.4%

80

15,00070
60

Average ¥12,668/Tsubo

10,00050
40

Rent per Tsubo/Occupancy Rate both stable

5,000

30
20

⇒Stable cash flow of portfolio

10

0

0
Feb. 28, Mar. 31,
2007
2007
Since Inception

Apr. 30,
2007

May 31,
Jun. 30,
2007
2007(1st FP end)

Jul. 31,2007

Aug. 31,2007

Sep. 30,
2007

Oct. 31,2007

Nov. 30, Dec. 31,
2007
2007
(2nd FP end)

Jan. 31,2008

Feb. 29,
2008

Mar. 31,2008

Apr. 30,
2008

May 31, Jun. 30,
2008
2008
(3rd FP end)

Jul. 31,2008

Aug. 31,2008

Sep. 30,
2008

Oct. 31,2008

Nov. 30,
2008(4th FP end)4

Investment Strategy (2)Seek Stable Revenues (Investment Strategy Targeting Class with Strong Tenant Demand)
Target Tenant Class with
Strong Demands and Stable Rent Potential

Residential Rental Property Market and Outlook
Increase in Households in the Greater Tokyo Area
Thousand Households
Greater Tokyo Area

Tokyo

Kanagawa

SaitamaTarget Tenant Classes of the Fund

Chiba
TargetMiddle class tenants,
mainly coporate employees
in their 20s and 30s and students.

Priority on certain level of convenience forcommuting and rent.

Features

Rent

1985

1990

1995

2000

2005

Other Tenant Classes

Upper middle class tenants,
such as foreign company employees.

Priority on location, floor plan andspecifications/equipments.

Upper class tenants, such as employeeswith company rent support, businessowners, management class emplayees offoreign companies.

Priority on prime metropolitan location,
property grade, value-added services, etc.

Annual income is stable.
Less likely to be affected by economic trends.

Annual income is relatively stable.
Relatively less likely to be affected byeconomic trends.

Annual income is likely to be affected byeconomic trends.

less than ￥100,000/month(generally)￥100,000-￥150,000/month(generally)

over ￥150,000/month(generally)

Source: Ministry of Internal Affairs and Communications, Statistics Bureau

Changes in the Social Structure(age)

Average
Marriage Age(Husband)

Relative Frequency Distribution of the Number of Households Based on Income
Average
Marriage Age(Wife)

GeneralMarriage
Rate

GeneralDivorceRate‟60 ‟65 ‟70 ‟75 ‟80 ‟85 ‟86 ‟87 ‟88 ‟89 ‟90 ‟91 ‟92 ‟93 ‟94 ‟95 ‟96 ‟97 ‟98 ‟99 ‟00 ‟01 ‟02 ‟03 ‟04 ‟05 ‟06
Source: National Institute of Population and Social Security Research
Source: Ministry of Health Labour and Welfare The number of households in Tokyo, particularly single/DINKs households, is increasing due to the changes in social structure Targeting the “Class with the most stable rent demands”, insusceptible to business fluctuations
 Even within the “rental housing” with stable rent standards, selecting properties targeting the most stable tenant class5Investment Strategy (3)Seek Stable Revenues (Portfolio Structure Based on Strong Tenant Demand)
Property Selection Based on Strong Tenant Demand
Rent Level

×
Access×
Commuting Time

Appropriate rent level for target tenants
Railway lines that are well-known,
Railway lines directly connected tolarge hub stations

Portfolio Structure According to theInvestment Strategy
Investment Area ： Investing in large metropolitan areas,
mainly the Greater Tokyo Area (88.1%)
Other Areas

Other Areas(Kanagawa,Chiba, Saitama)

Target tenant‟s commuting time totheir work/school place
Tokyo (excluding the 23 wards)

Property Size

Greater Tokyo Area

Number of units where leasing-up withina short time-frame is possible

Tokyo (23 wards)

Floor Area per Unit ： Under 50 sqm 92.1%(generally up to approx. 100 units* for new unoccupied buildings)*Excluding sub-lease properties, etc.

Over 70 sqm

Retail & Office50-70 sqm

The Fund’s Portfolio(134 Properties at Fourth Fiscal Period End)
Leasable Units

6,713 Units

Leasable Space

186,861.55 Sqm

Average Rent per Unit

Approx. ¥90,000

Average Leasable Space per Unit

Approx. 27 Sqm

Average Unit per Property

Approx. 50 Units

30-50 sqm

Under 30 sqm

Units per Property ： Under 100 units 85.8%
Over 100 Units

50-100 Units

Under 30 Units

30-50 Units*Based on the 134 properties owned at the end of the 4th FP (Nov. 30, 2008)*Of the graphs above, “Floor area per unit” is based on units, the others are based on acquisition price.

6

Investment Performance (Growth of Asset Size)

Stable Growth of Portfolio
PROUD FLAT

Utilizing Various Sourcing Routes
PRIME URBAN

URBAN STAGE

Other(millions of yen)

Growth of 50 Properties (¥51.9 billion)
137 Properties¥119.3 billion

139 Properties¥121.48 billion

Advantage of having the
Nomura Real Estate Group
as a sponsor.

Strength of having approx. 7 years ofmanagement experience.
(Including private funds)

123 Properties¥100.28 billion

89 Properties¥69.58 billion

102 Properties¥78.91 billion

PROUD FLATPRIME URBAN

URBAN STAGE

Properties planned/developed by Nomura
Real Estate Development

Properties planned/developed bycompanies other than
Nomura Real Estate Development

Properties planned/developed by companies
other than
Nomura Real Estate Development<Age of Building: Approx. 1 year or less><Age of Building: Approx. 1 year or more>

Brand<Age of Building: Approx. 1 year or less>

At Listing

1st FP end

2nd FP end

3rd FP end

4th FP end(Feb. 14, 2007)(May 31, 2007)(Nov. 30, 2007)(May 31, 2008)(Nov. 30, 2008)*The above graph is based on each property‟s (Scheduled) Acquisition Price (rounded down to the nearest 10 million)
Acquisition
Strategy

Strategic Cooperation with
Nomura Real Estate
Development

Utilization of Networks with Providers
Utilization of Nomura Real Estate Group Information
Networks

The strategic cooperation with Nomura Real Estate
Development enables the Fund to undertake thedevelopment and acquisition of PPROUD FLAT, aresidential property brand, which utilizes residential
property related know-how for land acquisition,
product planning, management, etc. This plays thepivotal role of the Fund‟s growth strategy and theFund will utilize it to the full extent.

Proactively utilizing the network with providers built through the management of private funds
which extends over 5 years and the Fund‟s management which extends over 1 year. By utilizing
the expansive brokerage network held by Nomura Real Estate Group, pursuit of collecting
adequate information on properties for selling will be fulfilled.

 By utilizing the advantage of having various sourcing routes, and balancing the brands of the properties,
prime properties have been additionally acquired Aim to realize continuous growth, fully utilizing the sponsor‟s resources (warehousing, etc.)7

Financial Strategy (1) Establish Stable Financial Base (Status of Loan)
Results of Fourth Fiscal Period Debt Financing(Long-term Fixation of Interest Rates through Refinancing)
Existing Loans

4th FP Debt Financing(millions of yen)

Long-term Fixation of Interest Rate through Refinancing

Long-term Loanat time of acquisition(3 Year/Fixed Rate)

4th FP

5th FP

Loan at time of
Acquisition
Short-term Loan
¥5,472 million

6th FP

7th FP

8th FP

9th FP

10th FP

11th FPLong-term Fixation of Interest
Rate through Refinancing

12th FP

13th FP

14th FP

15th FP

16th FP

17th FP

Refinance
Long-term Loan
5 Year/Fixed Rate*“Fixed Rate” includes loans turned from floating to fixed rates through the interest rate swap.

 Turning the short-term loan, based on the uncommitted line of credit loan agreement,
at time of acquisition, into a long term fixed rate at time of refinance All debt financing in the Fourth Fiscal Period were long-term fixated loans⇒ Long-term Ratio 70.8% Fixed Ratio 70.1% (Fourth Fiscal Period End)8

Financial Strategy (2) Establish Stable Financial Base (Status of Refinance)
Results of Refinance in December 2008
(Elongation/Rate Fixation of Loans through Refinancing)
At 4th Fiscal Period End

After RefinanceLong-term Ratio

Short-term Loans¥6.82 billion

Short-term Loans¥19.64 billion

Refinance Summary (December 26, 2008)
 Amount DetailLong-term Loans¥47.59 billion

Long-term Loans¥62.73 billion

 Lenders
Fixed Rate Ratio

Floating Interest Rate
¥17.35 billion

Floating Interest Rate
¥20.08 billion¥15,144million
1.5 Years¥10,096 million

3.0 Years

6¥5,048 million

Bank of Tokyo-Mitsubishi
Sumitomo Mitsubishi Banking
Mitsubishi UFJ Trust & Banking
The Nomura Trust & Banking
The Iyo Bank

Fixed Interest Rate
¥47.15 billion

Fixed Interest Rate
¥52.2 billion

At 4th FP End

After RefinanceLong-term Ratio

70.8%

90.2%

 Convert the flexible short-term loans (credit), taken out
at time of acquisition, into long-term fixed interest rate loans

Fixed Rate Ratio

70.1%

75.0%

 Maintain and enhance financial stability through close
relationship with lenders

9Financial Status (As of January 16, 2009)

Status of Interest Bearing Debts
Amount(millions of yen)

Short/Long Term
Ratio

Weighted Average
Interest Rate

Loan Total

69,556－

1.59%

Short-term Loan

6,820

9.8%

1.16%

Floating/Fixed
Ratio－

Type of Interest

Collateral－－

Floating Rate
25.0%

440

Floating Rate

Long-term Loan

90.2%

1.63%

62,29675.0%

Unsecured
Unguaranteed

Fixed Rate
(Note)(Note) Includes f ixed rate loans through the interest rate swap transaction.

Maturity Diversification

Credit Ratings
Existing Loans

5th FP Loans(millions of yen)

Rating Agency

Long-term Loan
(1.5 Year Floating Rate)

4th
FP

5th
FP

6th
FP

7th
FP

RatingJapan Credit Rating Agency

Long-term Senior Debt Rating: AA

Moody‟s Investors Service

Issuer Rating: A1

Long-term Loan
(3 Year Fixed Rate)

8th
FP

9th
FP

10th
FP

11th
FP

12th
FP

13th
FP

14th
FP

15th
FP

16th
FP

17th
FP

Standard & Poor‟sLong-term Corporate Credit Rating : A+
Short-term Corporate Credit Rating : A-1

10

Overview of the Financial Results

11Income Statement

Third Fiscal Period

Fourth Fiscal Period

From December 1, 2007
To May 31, 2008

From June 1, 2008
To November 30, 2008

Amount(￥000)

Ratio(%)

Amount(￥000)

Ratio(%)

Real Estate Rental Business Revenues

3,261,814

100.0

3,809,998

100.0 *１

Rental Business Revenues

2,963,252

90.8

3,553,687

93.3

Other Rental Business Revenues

298,5629.2

256,311

6.7

Real Estate Rental Business Expenses

1,267,232

38.9

1,466,569

38.5

623,54319.1

645,473

Real Estate Rental Business Expenses

16.9 *２

Tax and Public Dues

68,5542.1

125,321

3.3 *３

Depreciation and Amortization

575,134

17.6

695,77418.3

1,994,582

61.1

2,343,428

61.5

Asset management Fees

224,2316.9

282,031

7.4

Other Operating Expenses

147,765

4.5

170,900

4.5

1,622,585

49.7

1,890,497

49.6

Real Estate Rental Business Profits and Losses

Operating Income
Non-Operating Revenues

21,8430.7

10,3920.3

Non-Operating Expenses

469,96214.4

531,215

13.9

Current Profits

1,174,466

36.0

1,369,674

35.9

Net Income Before Tax

1,174,466

36.0

1,369,674

35.9

997

0.0

1,010

0.0

1,173,469

36.0

1,368,664

35.9

Corporate Income Tax, etc.
Net Income
Retained Earnings Brought Forward
Retained Earnings at Fiscal Period End

32

0.0

32

0.0

1,173,501

36.0

1,368,696

35.9

*1
[Real
Estate Rental Business Revenues]※１【不動産賃貸事業収益】
Asof the end of the Fourth Fiscal Period, the portfolio consists of 134
第４期末のポートフォリオは、134物件・1,159億円(取得価格の合計)
properties/¥115.9
billion (total acquisition price). The occupancy rate forです。ポートフォリオ全体の期末稼働率は、94.4%です。
the portfolio at the end of the Fourth Fiscal Period was 94.4%.

*2[Repair
Expenses]※２【修繕費】
Repairexpenses reported as expenses in the Fourth Fiscal Period is
第４期に費用計上された修繕費は83,385千円です。
¥83,385,000.
In combination with ¥69,502,000 of capital expenditures, a
資本的支出69,502千円と合わせ､合計152,888千円の工事を実施して
totalof ¥152,888,000 in construction was carried out.
います。

*3
[Tax
and Public Dues]※３【公租公課】
Duringthe Fourth Fiscal Period, 105 properties (out of 134 properties)
第４期は、保有資産134物件のうち105物件において、平成20年度分の固havereported
fixed asset taxes and urban planning taxes in the year 2008
定資産税・都市計画税等を費用計上しています。
asexpenses.
Fixed
asset taxes and urban planning taxes adjusted with
物件取得時の売主との固定資産税・都市計画税等の精算金相当分
the seller have been included in the acquisition price at the time of
6,973千円は、取得原価に算入しています。
acquisition (¥6,973,000).

(Ref.) Changes in Number of Property During the 4th FP
Jun. 1,
2008(Start of FP)

No. of Properties
Changes131

Jun. 30,
2008

131

Jul. 31,
2008

132
＋1

Aug. 31,
2008

133
＋1

Sep. 30,
2008

134
＋1

Oct. 31,
2008

134

Nov. 30,
2008(End of FP)

134

12

Balance Sheet
AssetsLiabilities and Net Assets

Current Assets

Third Fiscal Period

Fourth Fiscal Period

Third Fiscal Period

Fourth Fiscal Period

as of May 31, 2008

as of Nov. 30, 2008

as of May 31, 2008

as of Nov. 30, 2008

Amount(￥000)

Amount(￥000)

Amount(￥000)

Amount(￥000)

Ratio
(%)

Ratio
(%)
Current Liabilities

5,202,778

4.4

5,855,457

4.7

Cash and Cash Equivalents

3,466,086

2.9

4,363,420

3.5

Trade Accounts Payable

Cash and Cash Equivalent in Trust

1,603,667

1.4

1,412,438

1.1

Short-term Loans

Other Current Assets
Fixed Assets
Tangible Fixed Assets

Ratio
(%)

19,446,731

133,024

0.1

79,5980.1

Long-term Loan Due Within One Year113,544,689

95.6

118,849,573

95.3

Other Accounts Payable

113,530,072

95.6

118,835,168

95.3 *１

Taxes Payable

16.4

20,765,053

Ratio
(%)
16.7

131,3430.1

114,0280.1

18,504,000

15.6

15,144,000

12.1 *２
3.6 *２－0.0

4,500,000

177,1090.1

193,872

0.2

654

0.0

1,171

0.0

208,7070.2

338,6840.3

420,1260.4

466,115

0.4

4,789

0.0

7,181

0.0

44,357,369

37.4

48,801,416

39.1

53,026,572

44.7

58,593,851

47.0

Accrued Expenses

Building

25,077,509

21.1

27,381,447

22.0

Rent Received in AdvanceLand

27,949,063

23.5

31,212,404

25.0

Deposits Payable

Real Estate in Trust

60,488,896

50.9

60,224,498

48.3

21,017,908

17.7

20,753,510

16.6

Long-term Loans

43,220,000

36.4

47,592,000

38.2 *２

395,2710.3

478,178

0.4

Real Estate

Building in TrustLand in Trust
Construction in Progress
Intangible Fixed Assets
Other Intangible Fixed Assets
Investment and Other Assets
Security Deposits

39,470,987

33.2

39,470,987

31.7

Security Deposits

14,6020.0

16,8180.0

Security Deposits in Trust

742,098

0.6

731,238

0.6

1,496

0.0

1,357

0.0

Total Liabilities

63,804,100

53.7

69,566,469

55.8

1,496

0.0

1,357

0.0

54,943,366

46.3

55,138,561

44.2

13,1200.0

13,0470.0

Unitholders Capital

53,769,864

45.3

53,769,864

43.1

0.0

Retained Earnings

1,173,501

1.0

1,368,696

1.1

10,632Long-term Repaid Expenses
Total Assets

Fixed Liabilities

0.0

10,692Unitholders Equity

2,487

0.0

2,355

0.0

Total Net Assets

118,747,467

100.0

124,705,031

100.0

Total Liabilities and Net Assets*1 Tangible fixed assets(unit: millions of yen)
AcquisitionPrice

Accumulated
depreciation(Depreciation
Book value
for current FP) at end of FP

Real Estate

120,884

2,066

(695)

118,818

Building
Land
Building in trust
Land in trust

28,081
31,212
22,12039,470

699
－
1,366
－

(362)
－
(332)
－

27,381
31,212
20,75339,47054,943,366

46.3

55,138,561

44.2

118,747,467

100.0

124,705,031

100.0

*2
※2Loans
借入金 （1年内返済予定の長期借入金は短期借入金に含める。）
Balanceof interest-bearing debts (millions of yen)
有利子負債残高（百万円）

67,236 67,236

Total
asset interest-bearing debt ratio
総資産有利子負債比率

short-term + long-term loans
短期借入金＋長期借入金
総資産total assets

53.9% 53.9%

Long-terminterest-bearing debt ratio
長期有利子負債比率

long-term loans
長期借入金
shot-term + long-term loans
短期借入金＋長期借入金

70.8% 70.8%

13Forecasts for the Fifth Fiscal Period

Fifth Fiscal Period Forecasts(December 1, 2008 – May 31, 2009)
Rental Business Revenues

Assumptions¥4,065 million[Assets Under Management]

Rental Business Expenses¥1,671 million

Asset Management Fees

¥288 million

Other Operating Expenses¥169 million

Operating Income¥1,935 million

Non-Operating Profit/Loss¥638 million

The calculation is based on 139 properties, adding 3
properties (scheduled to be acquired by May 31, 2009) tothe 136 properties held as of January 16, 2009.

[Depreciation]¥749 million is expected.

Current Profits¥1,297 million

Net Income¥1,296 million[Loans]The Fund has a total of ¥69,556 million in loans as ofJanuary 16, 2009. Assumes that loans as of May 31, 2009
(Fifth Fiscal Period End) will be a total of ¥72,996 million,
with loans for the acquisition of new properties scheduled.

[Investment Units]

Total Investment Units at
end of Fiscal Period

96,765 units

Cash Distribution per Unit

¥13,400 million

Assumes that the total number of investment units issued(96,765 units) will remain the same until the end of theFifth Fiscal Period.

14

Fund Management Results

15

Investment Results (1) Agreements Concluded in the Fourth Fiscal Period
PRIME URBAN
Shinyurigaoka(tentative name)

URBAN STAGE
Tsutsumidori Amamiya

Main Railway Access: 5 minute walk to Shinyurigaoka Station on the Odakyu
Odawara Line

Main Railway Access:9 minute walk to Kita Yobancho Station on the Sendai
Municipal Subway Namboku Line

Leasable Units: 64

Leasable Units: 65

Scheduled Acquisition Price : ¥1,210 million

Acquisition Price: ¥969 million

Acquisition Date

Acquisition Date

: July 1, 2008 (4th Fiscal Period): March 18, 2009 (5th Fiscal Period)

Rent Level

In ¥80,000s for 1K units

Rent Level

Access

Odakyu Odawara Line

AccessCommuting Time

Approx. 30 minutes to the Shinjuku
Approx. 35 minutes to other main business/commercial areas

Commuting TimeIn ¥100,000s for 2LDK units
In ¥120,000s for 3LDK units

Sendai Municipal Subway Namboku Line

Approx. 15 minutes to the Sendai area
Approx. 10 minutes to the Kotodai Koen area

16

Investment Results (2) Results of Acquisitions During the Fourth Fiscal Period
Properties Acquired During the Fourth Fiscal Period
PROUD FLAT
Monzen Nakacho I

PROUD FLAT
Shirokane Takanawa

URBAN STAGE
Tsutsumidori Amamiya

Acquisitions from Nomura Real Estate Development

Acquisitions from External Providors

Location: Minato-ku, Tokyo

Location: Koto-ku, Tokyo

Location: Sendai-shi, Miyagi

Leasable Units: 106

Leasable Units: 55

Leasable Units: 65

Acquisition Price : ¥3,510 million

Acquisition Price: ¥1,130 million

Acquisition Price: ¥969 million

Acquisition Date : September 5, 2008

Acquisition Date

: August 5, 2008

Acquisition Date

: July 1, 2008

Three additional properties (¥5,609 million) acquired during the Fourth Fiscal Period
Portfolio at Fourth Fiscal Period End

134 properties/¥115,939 million

17

Management Results (1) Portfolio Occupancy Rate
Portfolio Occupancy Rate

Occupancy Rate

Leasable Space
Occupancy Rate

May 31,2008(3rd FP end)

Jun. 30,
2008

Jul. 31,2008

Aug. 31,2008

Sep. 30,
2008

Leasable Space

Oct. 31,2008

Nov. 30,
2008(4th FP end)

Practice management that draws out the full potential of each property and stable changes in
occupancy rates, through the “Selection of optimal property management company (“PMC”) for
each property” and the “Asset management company and PMC‟s integrated management”

18Management Results (2) Maintain/Enhance the Property‟s Market Competitiveness
Major Large-scale Repair/Renovations in the Fourth Fiscal Period
URBAN STAGE Oimachi II Large-scale repairs due to aging (19 years)(Main Content)

・Retiling Exterior Wall (partially excluded)

URBAN STAGE Naka Ochiai

 Common area renovation to enhance market appeal(Main Content)・Entrance Renovations

・Waterproofing Balcony
・Entrance and Hallway Renovations(Scheduled to finish during the 5th FP)⇒ Maintain/Enhance Market Competitiveness⇒Performing to its fullest extent, through the enhancement of market
appeal, taking into account property traits (property targeting the upper
middle class with a higher rent average).

Other Activities
Reducing management costs (Optimizing management specifications according to property traits), additional
antenna for cellular phones, improving occupancy rate of parking lots, etc.
Maintain and enhance both the market competitiveness and the cash flow throughadequate renovations according to property traits

19

Financial Status (Fourth Fiscal Period End)

Long-term Ratio and Fixed Rate Ratio

Status of Lenders(millions of yen)

Short-term Loans¥19.64 billion

Floating Interest Rate
¥20.08 billion

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

Long-term Loans¥47.59 billion

Fixed Interest Rate
¥47.15 billion

Nomura Trust and Banking
Taiyo Life Insurance(Note) “Fixed Rate” includes floating interest rateloans which have been fixed throughinterest rate swaps

Mitsui Sumitomo Insurance
Daido Life Insurance
Chiba Bank
Iyo Bank
Long-term Loan (Term)

Loan to Value Ratio and Duration

Dai-ichi Mutual Life InsuranceLong-term Loan to be
Repaid Within 1 Year
Short-term Loan (Credit)

Aozora Bank

Average Remaining Duration of Long-term Loans

3.5 Years
Types of Financial Institutions
Major Banks Trust Banks

LTV Ratio at Fourth Fiscal Period End

53.9%

3

3

Regional
Banks2

Insurance
Companies
4

Others2

20

Portfolio Status (134 Properties at Fourth Fiscal Period End)

Acquisition Price Total and Appraisal Value¥115,939,600,000

Acquisition Price Total¥113,555,000,000

Appraisal Value at 4th FP End*
*Includes Estimated Value

Diversification Within Assets

Building Age
Top 5 Properties

Over 10 years¥14.59 billion

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

Improvement of the portfolio
stability through promotion ofdiversification

Other 124 Properties

Top 10 Properties¥90.17 billion¥25.76 billion

Other Areas

Other Areas
30% or less5-10 years

3-5 years

1-3 years

Nearest Station on Foot

Investment Area

Vicinity of Tokyo
70% or more

Under 1 year

GreaterTokyo Area

Other Areas(excluding the 23 wards)

Within 5 min.

Selection focusing onaccessibility to the nearest
railway stations(Kanagawa,Chiba, Saitama)

Tokyo

Over 10 min.

Tokyo (23 wards)

5-10 min.
(Note) The graphs above are based on the acquisition price.

21

Portfolio Map (134 Properties at Fourth Fiscal Period End)
Greater Tokyo Area

Omiya

PROUD FLAT Shirokane Takanawa

PRIME URBAN Kasai II

PROUD FLAT Yoyogi Uehara

PRIME URBAN Urayasu

PROUD FLAT Hatsudai

PRIME URBAN Gyotoku I

PROUD FLAT Shibuya Sakuragaoka

PRIME URBAN Gyotoku II

PROUD FLAT Gakugei Daigaku

PRIME URBAN Gyotoku Ekimae

PROUD FLAT Meguro Gyoninzaka

PRIME URBAN Nishi Funabashi

PROUD FLAT Sumida Riverside

PRIME URBAN Kawaguchi

PROUD FLAT Kagurazaka

URBAN STAGE Azabu Juban

PROUD FLAT Waseda

URBAN STAGE Hatagaya

PROUD FLAT Shinjuku Kawadacho

URBAN STAGE Toritsu Daigaku

PROUD FLAT Sangen Jaya

URBAN STAGE Kachidoki

PROUD FLAT Kamata

URBAN STAGE Shinkawa

PROUD FLAT Shinotsuka

URBAN STAGE Hongo Ikizaka

PROUD FLAT Kiyosumi Shirakawa
PROUD FLAT Monzen Nakacho II

URBAN STAGE Naka Ochiai
URBAN STAGE Ochiai

PROUD FLAT Monzen Nakacho I

URBAN STAGE Shinjuku Ochiai

PROUD FLAT Yokohama

URBAN STAGE Roka Koen

PROUD FLAT Kamioooka

URBAN STAGE Kamiuma

PRIME URBAN Akasaka

URBAN STAGE Sangen Jaya

PRIME URBAN Tamachi

URBAN STAGE Chitose Karasuyama

PRIME URBAN Ebisu Minami

URBAN STAGE Sangen Jaya II

PRIME URBAN Yoyogi

URBAN STAGE Komazawa

PRIME URBAN Bancho

URBAN STAGE Karasuyama

PRIME URBAN Chiyoda Fujimi

URBAN STAGE Kamikitazawa

PRIME URBAN Iidabashi

URBAN STAGE Oimachi

PRIME URBAN Ebisu

URBAN STAGE Oimachi II

PRIME URBAN Naka Meguro

URBAN STAGE Yukigaya

PRIME URBAN Gakugei Daigaku

URBAN STAGE Ikegami

PRIME URBAN Senzoku

URBAN STAGE Nakano

PRIME URBAN Meguro Riverside

URBAN STAGE Takaido

PRIME URBAN Meguro Ohashi Hills

URBAN STAGE Komagome

PRIME URBAN Hakusan

URBAN STAGE Mukojima

PRIME URBAN Nishi Shinjuku I

URBAN STAGE Ekoda

PRIME URBAN Nishi Shinjuku II

URBAN STAGE Takinokawa

PRIME URBAN Shinjuku Naitomachi

URBAN STAGE Asakusa

PRIME URBAN Nishi Waseda

URBAN STAGE Machiya

PRIME URBAN Sangen Jaya

URBAN STAGE Koganei

PRIME URBAN Minami Karasuyama

URBAN STAGE Hino

PRIME URBAN Karasuyama Galleria

URBAN STAGE Musashi Kosugi comodo

PRIME URBAN Karasuyama Court

URBAN STAGE Kawasaki

PRIME URBAN Shinagawa Nishi

URBAN STAGE Tsurumi Teraya

PRIME URBAN Osaki

URBAN STAGE Tennocho

PRIME URBAN Omori

URBAN STAGE Urayasu

PRIME URBAN Kita Senzoku

URBAN STAGE Minami Gyotoku I

PRIME URBAN Denenchofu Minami
PRIME URBAN Nakano Kamitakada

URBAN STAGE Minami Gyotoku II

PRIME URBAN Nishi Ogikubo

URBAN STAGE Minami Gyotoku IV

PRIME URBAN Otsuka

URBAN STAGE Gyotoku Ekimae

PRIME URBAN Monzen Nakacho

URBAN STAGE Minami Gyotoku V

PRIME URBAN Kameido

URBAN STAGE Gyotoku
URBAN STAGE Minami Urawa

PRIME URBAN Sumiyoshi
PRIME URBAN Kinshi Koen

URBAN STAGE Minami Gyotoku III

PRIME URBAN Kinshicho

URBAN STAGE Yono Hommachi
Cosmo Gracia Yotsuya Gaien Higashi

PRIME URBAN Hirai

Koganei Habitation

PRIME URBAN Kasai

Musashino Green Hills

Greater Tokyo Area

Saitama(Tokyo, Kanagawa, Chiba, Saitama)

Minami Urawa

Tobu
IsesakiLine
Adachi-ku

Kita-ku
Itabashi-ku
Nerima-ku

Chiba

Katsushika-ku
Arakawa-ku

Seibu Ikebukuro Line

Toshima-ku

Ikebukuro
Seibu Shinjuku Line

Takadanobaba

JR Sobu Line

Taito-ku

Bunkyo-ku

Sumida-ku
Ueno

Tachikawa

Kichijoji

Nishi
Funabashi

JR Chuo Line
Shinjuku-ku
Nakano-ku

Edogawa-ku

Shinjuku

Suginami-ku

TokyoTokyo Metro Tozai Line

Chiyoda-ku

Keio Line

Chuo-ku

Shibuya-ku
Minato-ku

Koto-ku

Urayasu

Shibuya
Odakyu Line
Setagaya-ku

Tokyu
Denentoshi
Line

Tokyu
ToyokoLine

ShinagawaMeguro-ku

Shinagawa-ku

Tokyu
Main
Line

Kanagawa

Ota-kuJR
KeihinTohokuLine

Yokohama
JR Lines
Other Lines

22

Portfolio Map (134 Properties at Fourth Fiscal Period End)
SapporoPRIME URBAN Yamahana
PRIME URBAN Kita Juyo Jo
PRIME URBAN Odori Koen I

Osaka
Osaka
International
AirportOther Areas(includes 3 major metropolitan areas (excluding Tokyo)
and other government designated cities)

HankyuSenri
LineHankyuTakarazuka
Line
JR
Kyoto
Line

PRIME URBAN Odori Koen II
PRIME URBAN Kita Juichi Jo

JR Lines
Other Lines

Esaka

PRIME URBAN Miyanosawa
PRIME URBAN Odori Higashi
PRIME URBAN Chiji Kokan
PRIME URBAN Maruyama

JR
Fukuchiyama
Line

SapporoTokaidoShinkansen

Shin Osaka

Sakae Machi

Asabu

JR Sassho Line

PRIME URBAN Kita Nijuyo Jo
PRIME URBAN Sapporo Idaimae

Miyanosawa Kotoni
Osaka
Kanjo Line

Kita
NijuyoJo

Kotoni

JR Hakodate
Main Line

SapporoOsaka

Sendai

Sapporo

Umeda

Odori

PROUD FLAT Itsutsubashi
Maruyama
Koen

PRIME URBAN Nagamachi Icchome
PRIME URBAN Yaotome Chuo

Sapporo Municipal
Subway Toho Line

Sapporo City
Street Car Line

Namba

URBAN STAGE Tsutsumidori Amamiya

Sapporo Municipal
Subway Tozai Line

SapporoMunicipal Subway
Namboku Line

NagoyaFukuzumi

PRIME URBAN Aoi
PRIME URBAN Kanayama

Fukuoka

NagoyaKashiiOsaka
Kanjo Line

Osaka

Sanyo
Shinkansen

PRIME URBAN Esaka I
Fukuoka
Municipal Subway
Hakozaki Line

Fukuoka

Benefis Yakuin Minami
Benefis Kashii Verbena
Benefis Hakata Higashi Grand Sweet

HakataYakuinNagoyaNishitetsu
Tenjin-Omuta
Line

Fukuoka
Municipal Suway
Nanakuma Line

OhashiJR
Kagoshima
Main Line

Izumi Chuo

JR Senzan Line

Sakae

Chikusa

TsurumaiKanayama
TokaidoShinkansen

JR Todaido
Main LineJR Hakata
Minami Line

Fukuoka Municipal
Subway Kuko Line

Hashimoto

Fukuoka
AirportSendai

JR Chuo
Main Line

JR Sasaguri Line

TenjinMeinohamaMeitetsu
Seto Line

Ozone

FushimiPRIME URBAN Esaka II

Benefis Hakata Grand Sweet

Nagoya Municipal
Subway Meijo Line

JR Kashii
Line

NagoyaMunicipal
SubwayMeijo Line

Motoyama
Sendai
Municipal
SubwayNamboku Line

NagoyaMunicipal Subway
Tsurumai Line

NagoyaMunicipal
SubwaySakura-doriLine

Kita Sendai

YagotoMeitetsu
NagoyaMain Line

Nagamachi
Minami

JR Tohoku
Main Line
TohokuShinkansen

Sendai

Nagamachi

Tomizawa
Aratama-bashi

Benefis Chihaya Grand Sweet

23

ＡＰＰＥＮＤＩＸ

24

Portfolio (At Fourth 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

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 Shinotsuka
PROUD FLAT Kiyosumi Shirakawa
PROUD FLAT Monzen Nakacho II
PROUD FLAT Monzen Nakacho I
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 Nishi Shinjuku I
PRIME URBAN Nishi Shinjuku II

Location

Percent of
Acquisition Price(Thousands of Yen) Total (%)

Leasable
Leasable
Occupancy Rate
Space (㎡) Units (Units) (end of 4th FP) (%)
3.0
2950.11
106
71.4
0.9
1,151.34
44
92.4
0.7
958.9831
100.0
0.7
638.7030
96.7
0.7
934.3941100.0
0.8
855.2340
100.0
1.9
3,055.21
110
99.2
1.3
1,793.43
70
100.0
1.0
1,450.91
60
100.0
0.9
1,102.20
41
97.3
1.2
1,277.82
48
92.0
1.0
1,541.64
67
100.0
0.6
752.0935
100.0
0.8
1,209.56
55
100.0
0.6
830.5535
100.0
1.0
1,191.08
55
58.4
2.0
3,118.12
113
98.1
2.4
4,872.17
200
100.0
0.8
1,062.05
25
74.0
0.8
1,107.36
48
97.9
0.8
881.8921
91.3
0.4
439.5619
100.0
1.0
1,277.04
52
87.4
0.6
793.8732
100.0
1.8
2,087.70
90
94.7
1.0
1,444.40
29
83.3
1.1
1,302.42
49
98.0
0.8
1,008.39
32
96.7
0.5
655.2722
91.8
0.4
453.7724
100.0
3.1
2,955.74
99
87.1
0.8
1,069.82
42
97.8
1.1
1,459.86
60
98.4
0.9
1,162.55
46
97.9

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
Toshima-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Koto-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

3,510,000
1,100,000
865,000
800,000
812,000
882,000
2,260,000
1,540,000
1,110,000
1,010,000
1,350,000
1,140,000
695,000
900,000
650,000
1,130,000
2,340,000
2,770,000
956,000
941,000
947,000
408,000
1,170,000
707,000
2,030,000
1,200,000
1,320,000
886,000
536,000
464,000
3,580,000
893,000
1,290,000
1,000,000

25

Portfolio (At Fourth Fiscal Period End)
#
35
36
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

Name of Property
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 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 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 Hatagaya
URBAN STAGE Toritsu Daigaku
URBAN STAGE Kachidoki
URBAN STAGE Shinkawa
URBAN STAGE Hongo Ikizaka

Location

Percent of
Acquisition Price(Thousands of Yen) Total (%)

Leasable
Leasable
Occupancy Rate
Space (㎡) Units (Units) (end of 4th FP) (%)
0.4
578.181485.1
0.4
507.1128
100.0
0.7
874.1533
97.1
0.7
1,049.73
41
100.0
0.6
835.0533
97.0
0.4
576.2023
87.0
0.5
961.2546
88.2
1.5
2,106.16
99
99.0
0.7
1,190.70
54
98.1
0.5
834.9046
82.6
0.8
1,100.17
44
98.1
0.6
818.7533
100.0
0.4
543.0924
100.0
0.7
944.9946
97.8
1.9
3,127.94
117
98.3
0.6
1,117.34
52
100.0
0.5
813.5240
100.0
1.0
1,886.50
77
97.4
0.6
991.6249
100.0
0.6
1,095.91
53
96.2
0.5
905.8145
93.3
0.8
1,437.84
68
97.1
0.7
1,264.84
60
100.0
0.5
1,151.36
52
92.3
0.6
1,244.00
58
100.0
0.4
778.1937
100.0
0.7
1,237.80
60
93.3
1.9
2,477.11
98
93.4
0.9
1,222.13
40
100.0
0.4
650.6038
97.4
0.5
996.8116
93.2
2.0
4,481.82
144
95.5
1.9
3,600.61
46
100.0
0.6
662.5827
88.9

Shinjuku-ku, Tokyo
Shinjuku-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
Urayasu-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Funabashi-shi, Chiba
Kawaguchi-shi, Saitama
Minato-ku, Tokyo
Shibuya-ku, Tokyo
Meguro-ku, Tokyo
Chuo-ku, Tokyo
Chuo-ku, Tokyo
Bunkyo-ku, Tokyo

512,000
503,000
835,000
840,000
645,000
413,000
624,000
1,700,000
824,000
576,000
900,000
640,000
435,000
794,000
2,200,000
705,000
552,000
1,180,000
668,000
700,000
637,000
958,000
840,000
635,000
741,000
476,000
772,000
2,170,000
991,000
452,000
524,000
2,290,000
2,250,000
647,000

26

Portfolio (At Fourth Fiscal Period End)#

Name of Property

Location

Percent of
Acquisition Price(Thousands of Yen) Total (%)

Leasable
Leasable
Occupancy Rate
Space (㎡) Units (Units) (end of 4th FP) (%)
0.6
1,237.98
18
82.2
0.3
517.5332
90.4
0.5
1,053.39
28
100.0
0.3
567.2034
85.4
0.8
1,739.86
37
95.9
0.7
1,018.72
47
96.3
0.6
1,774.01
27
92.4
0.5
810.9817
94.6
0.3
572.4126
92.8
0.3
507.5228
96.8
0.6
1,384.45
29
85.5
0.5
722.7045
95.6
0.9
1,719.82
92
97.2
0.8
1,536.59
94
95.8
1.3
2,456.48
95
98.2
0.4
801.3051
96.6
0.9
1,746.20
107
96.3
0.4
990.1819
100.0
0.4
1,108.91
55
90.9
0.3
872.4935
97.4
0.2
554.3929
100.0
0.3
876.7022
96.6
0.2
455.1926
88.2
0.2
682.4327
93.3
0.3
994.685494.4
1.9
3,690.37
56
93.7
1.0
1,706.46
80
94.6
0.4
952.0650
90.9
0.1
332.4820
90.1
0.2
437.9427
74.1
0.3
682.0541
97.6
0.2
611.6137
89.2
0.2
543.8433
61.0
0.2
535.08
32
96.9

69
70
71
72
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

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 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 Asakusa
URBAN STAGE Machiya
URBAN STAGE Koganei
URBAN STAGE Hino
URBAN STAGE Musashi Kosugi comodo
URBAN STAGE Kawasaki
URBAN STAGE Tsurumi Teraya
URBAN STAGE Tennocho
URBAN STAGE Urayasu
URBAN STAGE Minami Gyotoku I
URBAN STAGE Minami Gyotoku II
URBAN STAGE Minami Gyotoku III
URBAN STAGE Minami Gyotoku IV

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
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
Taito-ku, Tokyo
Arakawa-ku, Tokyo
Koganei-shi, Tokyo
Hino-shi, Tokyo
Kawasaki-shi, Kanagawa
Kawasaki-shi, Kanagawa
Yokohama-shi, Kanagawa
Yokohama-shi, Kanagawa
Urayasu-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba

655,000
324,000
635,000
362,000
900,000
755,000
730,000
539,000
396,000
344,000
738,000
530,000
1,100,000
970,000
1,460,000
472,000
1,080,000
412,000
487,000
385,000
287,000
350,000
210,000
229,000
319,000
2,150,000
1,150,000
457,000
136,000
277,000
357,000
285,000
263,000
256,000

27

Portfolio (At Fourth Fiscal Period End)
#
103
104
105
106
107
108
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

Name of Property
URBAN STAGE Gyotoku Ekimae
URBAN STAGE Minami Gyotoku V
URBAN STAGE Gyotoku
URBAN STAGE Minami Urawa
URBAN STAGE Yono Honmachi
Cosmo Gracia Yotsuya Gaien Higashi
Koganei Habitation (Note 1)
Musashino Green Hills (Note 2)
Greater Tokyo Area
PROUD FLAT Itsutsubashi
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 Kokan
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 Esaka I
PRIME URBAN Esaka II
PRIME URBAN Tsutsumidori Amamiya
Benefis Hakata Grand Sweet
Benefis Yakuin Minami
Benefis Kashii Verbena
Benefis Hakata Higashi Grand Sweet
Benefis Chihaya Grand Sweet
Other Areas

Total Properties

Location
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Saitama-shi, Saitama
Saitama-shi, Saitama
Shinjuku-ku, Tokyo
Koganei-shi, Tokyo
Koganei-shi, Tokyo
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
Suita-shi, Osaka
Suita-shi, Osaka
Sendai-shi, Miyagi
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka

Percent of
Acquisition Price(Thousands of Yen) Total (%)
561,000
293,000
948,000
274,000
519,000
1,700,000
2,390,000
1,590,000
102,096,000
682,000
377,000
336,000
530,000
322,000
600,000
576,200
424,000
337,900
283,200
503,700
731,600
1,110,000
428,000
724,000
632,000
672,000
790,000
969,000
830,000
351,000
396,000
693,000
545,000
13,843,600

115,939,600

Leasable
Leasable
Occupancy Rate
Space (㎡) Units (Units) (end of 4th FP) (%)
0.5
927.3346
100.0
0.3
662.6838
62.5
0.8
1,766.47
77
100.0
0.2
694.0532
93.9
0.4
1,372.74
70
92.9
1.5
1,759.11
51
91.8
2.1
5,999.80
98
88.7
1.4
2,970.50
78
84.5
88.1
145,256.66
5,552
94.0
0.6
1,861.56
60
100.0
0.3
1,518.58
33
89.6
0.3
1,155.60
36
100.0
0.5
1,850.20
53
100.0
0.3
1,148.72
36
100.0
0.5
1,851.39
60
98.3
0.5
2,114.53
54
100.0
0.4
1,494.36
36
100.0
0.3
1,007.30
42
97.6
0.2
911.0727
100.0
0.4
1,773.90
36
97.2
0.6
2,439.90
58
94.7
1.0
3,411.24
60
85.4
0.4
1,380.21
43
100.0
0.6
1,571.04
46
94.2
0.5
1,391.02
58
96.6
0.6
1,189.12
48
93.7
0.7
1,392.00
57
96.6
0.8
4,251.91
65
95.5
0.7
2,176.23
67
92.3
0.3
897.8434
86.1
0.3
1,222.34
39
92.0
0.6
1,854.13
65
95.9
0.5
1,740.70
48
95.9
11.9
41,604.89
1,161
95.5
100.0 186,861.55
6,713
94.4

(Note 1) The property name has been changed from Koganei Habitation to URBAN STAGE Musashi Koganei as of December 5, 2008.
(Note 2) The property name has been changed from Musashino Green Hills to URBAN STAGE Musashino Hills as of December 5, 2008.

28

Scheduled Acquisitions After the Fourth Fiscal Period

Name of Property
PRIME URBAN Chitose Funabashi (tentative name)
Vicinity of Tokyo (Sub Total 1 Properties)
PROUD FLAT Kawaramachi (Note)
PRIME URBAN Shinyurigaoka (tentative name)PRIME URBAN Tsurumai (tentative name)PRIME URBAN Esaka III (Note)
Other Areas (Sub Total 4 Properties)

Location
Setagaya-ku, Tokyo
Sendai-shi, Miyagi
Kawasaki-shi, Kanagawa
Nagoya-shi, Aichi
Suita-shi, Osaka

Total 5 Properties(Scheduled)
Leasable
Acquisition PriceSpace (㎡)
(Thousands of Yen)

Leasable
Units(Units)(Scheduled)
Acquisition Date

885,000
885,000
724,000
1,210,000
1,189,096
1,535,000
4,658,096

1,027.44
1,027.44
1,967.54
1,708.19
2,502.11
2,151.67
8,329.51

38 February 28, 200938
64 December 19, 2008
64
March 18, 2009104
March 5, 200979 December 4, 2008
311

5,543,096

9,356.95

349(Note) Acquisition has been completed to date.

Total of All the Mentioned Properties

Total Acquired Properties/Scheduled Acquisitions (139 Properties)(Scheduled)
Leasable
Leasable
Acquisition Price
Units
Space (㎡)
(Thousands of Yen)
(Units)121,482,696 196,218.50
7,062

29

Interest-bearing Debts (At Fourth Fiscal Period End)
LenderShort-term Loan
(Including Long-term
Loans to be repayedwithin 1 year)

Short-term Loan
Sub Total

Long-term Loan

Amount(Millions of Yen)

Type of Interest

Interest Rate

Date of Repayment

3 Financial Institutions

2,216

Floating Rate

1.12500%

December 26, 2008

3 Financial Institutions

1,144

Floating Rate

1.12583%

December 26, 2008

3 Financial Institutions

1,888

Floating Rate

1.12750%

December 26, 2008

3 Financial Institutions

3,800

Floating Rate

1.12750%

December 26, 2008

3 Financial Institutions

3,896

Floating Rate

1.12750%

December 26, 2008

3 Financial Institutions

1,448

Floating Rate

1.11833%

December 26, 2008

3 Financial Institutions

752

Floating Rate

1.11083%

December 26, 2008

5 Financial Institutions

4,500

Floating Rate

1.17667%

August 27, 2009

5 Financial Institutions

19,644－－－

6 Financial Institutions

5,000

Fixed Rate
(Note 1)1.46045%

February 27, 2010

1 Financial Institution

440

Floating Rate

1.15667%

February 27, 2010

4 Financial Institutions

4,980

Fixed Rate
(Note 2)

1.24920%

February 26, 2011

3 Financial Institutions

3,400

Fixed Rate

1.51625%

September 4, 2011

1.84464%

September 30, 2011

1.79300%

February 27, 2012

Fixed Rate
(Note 3)Fixed Rate
(Note 1)

6 Financial Institutions

3,500

7 Financial Institutions

11,0002 Financial Institutions

2,200

Fixed Rate

1.81375%

August 27, 2012

3 Financial Institutions

5,500

Fixed Rate

1.83625%

May 23, 2013

3 Financial Institutions

5,472

Fixed Rate
(Note 4)1.74250%

September 29, 2013

1 Financial Institution

800

Fixed Rate

1.99875%

September 30, 2013

2 Financial Institutions

2,000

Fixed Rate
(Note 1)2.14360%

February 27, 2014

1 Financial Institution

2,000

Fixed Rate

2.13625%

February 27, 2014

Collateral

Unsecured
Unguaranteed－

Unsecured
Unguaranteed

1 Financial Institution

1,300

Fixed Rate

2.23500%

February 27, 2015

Long-term Loan
Sub Total

14 Financial Institutions

47,592

－

－

－

－

Total

14 Financial Institutions

67,236－－－－(Note 1) This loan has started the Interest Rate Sw ap transaction on February 27, 2007.
(Note 2) This loan has started the Interest Rate Sw ap transaction on February 26, 2008
(Note 3) This loan has started the Interest Rate Sw ap transaction on May 31, 2007
(Note 4) This loan has started the Interest Rate Sw ap transaction on September 29, 200830

Unitholders (At Fourth Fiscal Period End)

Number of Unitholders and Investment Units
Other Domestic
Corporations(158 unitholders)

Financial Institutions(96 unitholders)Foreign
Corporations(7,218 units)

Foreign Corporations(71 unitholders)

Individuals(7,399 unitholders)

Other Domestic
Corporations(15,513 units)

Total Number of Unitholders : 7,724

Individuals(17,675 units)

Financial Institutions(56,359 units)

Total Number of Investment Units : 96,765

Top 10 Unitholders

1
2
3
4
5
6
7
8
9
10

Unitholders
Nomura Real Estate Development Co., Ltd.
Japan Trustee Services Bank, Ltd.
NikkoCiti Trust and Banking Corporation
Trust & Custody Services Bank, Ltd.
The Master Trust Bank of Japan, Ltd.
Tokio Marine & Nichido Fire Insurance Co., Ltd.
The Nomura Trust and Banking Co., Ltd.
Pictet & Cie
Asahi Fire & Marine Insurance Co., Ltd.
North Pacific Bank, Ltd.
Total

Units
12,500
9,888
8,499
5,973
5,514
5,000
2,507
2,422
2,000
1,632
55,935

Ratio (Note)
12.92%
10.22%
8.78%
6.17%
5.70%
5.17%
2.59%
2.50%
2.07%
1.69%
57.80%(Note) Ratio is calculated as the percentage of Total Number of Owned Investment Units divided by Total Number of Issued Investment Units

31

Organization of the Asset Management Company

Shareholders Meeting

Corporate Data of NREAM
Auditors
Name

Board of Directors

Nomura Real Estate Asset Management Co., Ltd.
Executive Director

Date of Establishment
Compliance
Committee

Compliance & Risk
Management Group*

January 24, 2003

Capital¥300,000,000
OfficeManagement Division

ResidenceManagement Division
Shareholder

Investment
Committee

Investment
Committee

Nomura Real Estate Holdings, Inc. (100%)

Representative
Tatsuo Inoue, President & CEO
Acquisition
Group

Asset
Management
Group

Fund
Management
Group

Financial &Control GroupAcquisitionGroup■ Businessrelevant to due
diligence andacquisition ofproperties.
*Compliance & Risk Management Group■ Business relevant to the compliance, risk management,
and internal audits of the asset management company.

Asset
Management
Group

Fund
ManagementGroup■ Businessrelevant to theoperations,management,
and dispositionof real estate
undermanagement.

■ Businessrelevant to the
managementof the portfolio
of investment
assets anddisclosure (IR).

Financial &Control Group■ Businessrelevant to thefunding,accounting,taxation, andmanagementof capital forinvestment
assets.

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■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

NRF Management Division32

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.