Semi-Annual Report
12th fiscal period
June 1, 2012 >>> November 30, 2012

1－1－

Profile
Nomura Real Estate Residential Fund, Inc. (referred to as “Nomura Residential Fund” or
the “Company” hereinafter) was listed on the Tokyo Stock Exchange on February 14, 2007as a real estate investment corporation formed to own and invest in Residential properties,
subject to the Act on Investment Trusts and Investment Corporations of Japan. The
Company’s basic investment policy is to assure stable rent revenues and steady portfolio
growth over the medium-to-long-term.
Nomura Real Estate Asset Management Co., Ltd. (referred to as “NREAM” hereinafter), a
wholly owned subsidiary of Nomura Real Estate Holdings, Inc. is in charge of asset
management on behalf of Residential Fund in accordance with the basic investment policy
as described above. Through coordination with Nomura Real Estate Holdings, Inc. andother group companies, NREAM aims to achieve these goals and more.

Contents
To Our Investors
Summary of Portfolio Properties
Profile of the Asset Management Company
Performance Report
Financial Section
Business Structure/Corporate Data
Website

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To Our Investors
Dear Investors,
I would like to thank all of you for having given Nomura Real Estate Residential Fund, Inc. the opportunity to serve you in2012 and tell you how much we look forward to continuing to be a part of your financial portfolio in the coming year.
Closing of accounts for the 12th fiscal period, which ended November 30, 2012, showed the following overview and results.
For the real estate business in this period, we promoted replacement of properties for the purpose of increasing the
profitability and quality of our portfolio. Specifically, we sold one property in the Tokyo Metropolitan District, and acquired
another. As a result, the NRF portfolio has 153 properties and a total value of 150.58 billion yen as of the end of this fiscal
period. This, we believe, will contribute to further increasing portfolio profitability.
For the management of the properties we hold, we reviewed the specifications for restoration to the original state on some ofthem to focus on leasing with increased competitiveness, which contributed to maintaining an occupancy rate throughout theportfolio of 96.2% as of the end of this fiscal period.
For the refinancing of loans that had reached maturity, we focused on extending repayment periods and fixing interest rates
to increase financial stability and address the risk of rising interest rates.
As a result of our fund management, NRF achieved operating revenues of 5,174 million yen, current profits of 1,876 million
yen, and net income of 1,875 million yen for the period. Cash Distribution per Unit totaled 12,424 yen.
NRF continues prioritizing stable management over the mid- and long-term in and after the next fiscal period.
Again, NRF is grateful for the trust you have placed in us and we look forward to serving you in 2013.

Masatomi Natsume
Executive Director
Nomura Real Estate Residential Fund, Inc.
Chief Investment Officer, NRF
Nomura Real Estate Asset Management Co., Ltd.

1－3－
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Summary of Portfolio Properties
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77
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79
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81
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83
84
85
86
87
88
89
90

Name of Property
PROUD FLAT Shirokane Takanawa
PROUD FLAT Yoyogi Uehara
PROUD FLAT Hatsudai
PROUD FLAT Shibuya Sakuragaoka
PROUD FLAT Gakugei Daigaku
PROUD FLAT M eguro 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 M onzen Nakacho II
PROUD FLAT M onzen Nakacho I
PROUD FLAT Fujimidai
PROUD FLAT Asakusa Komagata
PROUD FLAT Yokohama
PROUD FLAT Kamioooka
PROUD FLAT Tsurumi II
PRIM E URBAN Akasaka
PRIM E URBAN Tamachi
PRIM E URBAN Yoyogi
PRIM E URBAN Bancho
PRIM E URBAN Chiyoda Fujimi
PRIM E URBAN Iidabashi
PRIM E URBAN Ebisu
PRIM E URBAN Naka M eguro
PRIM E URBAN Gakugei Daigaku
PRIM E URBAN Senzoku
PRIM E URBAN M eguro Riverside
PRIM E URBAN M eguro Ohashi Hills
PRIM E URBAN Hakusan
PRIM E URBAN Yotsuya Gaien Higashi
PRIM E URBAN Nishi Shinjuku I
PRIM E URBAN Nishi Shinjuku II
PRIM E URBAN Shinjuku Naitomachi
PRIM E URBAN Nishi Waseda
PRIM E URBAN Sangen Jaya
PRIM E URBAN M inami Karasuyama
PRIM E URBAN Karasuyama Galleria
PRIM E URBAN Karasuyama Court
PRIM E URBAN Chitose Funabashi
PRIM E URBAN Shinagawa Nishi
PRIM E URBAN Osaki
PRIM E URBAN Omori
PRIM E URBAN Kita Senzoku
PRIM E URBAN Denenchofu M inami
PRIM E URBAN Nakano Kamitakada
PRIM E URBAN Nishi Ogikubo
PRIM E URBAN Otsuka
PRIM E URBAN M onzen Nakacho
PRIM E URBAN Kameido
PRIM E URBAN Sumiyoshi
PRIM E URBAN Kinshi Koen
PRIM E URBAN Kinshicho
PRIM E URBAN Hirai
PRIM E URBAN Kasai
PRIM E URBAN Kasai II
PRIM E URBAN Shinyurigaoka
PRIM E URBAN Urayasu
PRIM E URBAN Gyotoku I
PRIM E URBAN Gyotoku II
PRIM E URBAN Gyotoku Ekimae
PRIM E URBAN Nishi Funabashi
PRIM E URBAN Kawaguchi
URBAN STAGE Azabu Juban
URBAN STAGE Shibaura LOFTURBAN STAGE Hatagaya
URBAN STAGE Toritsu Daigaku
URBAN STAGE Kachidoki
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

Location
M inato-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
M eguro-ku, Tokyo
M eguro-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
Nerima-ku, Tokyo
Taito-ku, Tokyo
Yokohama-shi, Kanagawa
Yokohama-shi, Kanagawa
Yokohama-shi, Kanagawa
M inato-ku, Tokyo
M inato-ku, Tokyo
Shibuya-ku, Tokyo
Chiyoda-ku, Tokyo
Chiyoda-ku, Tokyo
Chiyoda-ku, Tokyo
M eguro-ku, Tokyo
M eguro-ku, Tokyo
M eguro-ku, Tokyo
M eguro-ku, Tokyo
M eguro-ku, Tokyo
M eguro-ku, Tokyo
Bunkyo-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-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
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
M inato-ku, Tokyo
M inato-ku, Tokyo
Shibuya-ku, Tokyo
M eguro-ku, Tokyo
Chuo-ku, Tokyo
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

Acquisition Price(thousands of yen)
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
2,980,000
695,000
900,000
650,000
1,130,000
1,370,000
1,960,000
2,340,000
2,770,000
1,430,000
956,000
941,000
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
1,700,000
1,290,000
1,000,000
512,000
503,000
835,000
840,000
645,000
413,000
885,000
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
1,210,000
840,000
635,000
741,000
476,000
772,000
2,170,000
991,000
1,510,000
452,000
524,000
2,290,000
2,250,000
3,530,000
647,000
655,000
324,000
635,000
362,000
900,000
755,000
730,000
539,000
396,000
344,000
738,000
1,150,000
530,000
1,100,000

1－4－
-3-

Percentage ofTotal (%)
2.3
0.7
0.6
0.5
0.5
0.6
1.5
1.0
0.7
0.7
0.9
0.8
2.0
0.5
0.6
0.4
0.8
0.9
1.3
1.6
1.8
0.9
0.6
0.6
0.3
0.8
0.5
1.3
0.8
0.9
0.6
0.4
0.3
2.4
0.6
1.1
0.9
0.7
0.3
0.3
0.6
0.6
0.4
0.3
0.6
0.4
1.1
0.5
0.4
0.6
0.4
0.3
0.5
1.5
0.5
0.4
0.8
0.4
0.5
0.4
0.6
0.8
0.6
0.4
0.5
0.3
0.5
1.4
0.7
1.0
0.3
0.3
1.5
1.5
2.3
0.4
0.4
0.2
0.4
0.2
0.6
0.5
0.5
0.4
0.3
0.2
0.5
0.8
0.4
0.7

Leasable Floor Area(sqm)
2,950.11
1,151.34
958.98638.70934.39855.23
3,055.21
1,793.43
1,450.91
1,102.20
1,277.82
1,541.64
4,051.72
752.091,209.56
830.55
1,191.08
2,222.05
2,685.39
3,118.12
4,872.17
2,219.74
1,062.05
1,107.36
439.56
1,277.04
793.872,087.70
1,444.40
1,302.42
1,008.39
655.27453.772,955.74
1,069.82
1,759.11
1,459.86
1,162.55
578.18507.11
874.15
1,049.73
835.05576.201,027.44
961.252,106.16
1,190.70
834.901,100.17
818.75543.09944.993,207.92
1,117.34
813.52
1,886.50
991.62
1,095.91
905.81
1,437.84
1,708.19
1,264.84
1,151.36
1,244.00
778.191,237.80
2,477.11
1,222.13
1,905.39
650.60996.81
4,524.00
3,600.61
5,926.17
662.581,237.98
517.53
1,053.39
567.201,739.86
1,018.72
1,774.01
810.98572.41507.52
1,384.45
1,773.05
722.701,782.26

Leasable Units(units)
106
44
31
30
41
40
110
70
60
41
48
67
169
35
55
35
55
94
79
113
200
81
25
48
19
52
32
90
29
49
32
22
24
99
42
51
60
46
14
28
33
41
33
23
38
46
99
54
46
44
33
24
46
118
52
40
77
49
53
45
68
64
60
52
58
37
60
98
40
68
38
16
145
46
124
27
18
32
28
34
37
47
27
17
26
28
29
54
45
93

Occupancy Rate
(Nov.2012)(%)
99.3
100.0
94.5
96.7
100.0
100.0
99.2
100.0
98.5
100.0
92.6
98.5
99.0
91.5
100.0
94.9
98.2
100.0
100.0
98.5
100.0
93.6
94.4
95.9
94.2
91.5
93.8
98.9
100.0
98.0
87.7
100.0
100.0
99.1
92.9
94.3
95.5
97.9
100.0
100.0
100.0
95.2
90.9
91.3
97.3
100.0
95.0
96.3
97.8
93.3
90.2
100.0
100.0
97.5
98.1
95.0
90.9
100.0
100.0
80.0
86.8
100.0
86.7
80.8
100.0
97.3
93.3
96.7
87.3
98.6
97.4
100.0
95.9
96.5
100.0
100.0
88.6
90.8
95.6
91.3
99.1
97.0
85.9
91.2
96.0
90.0
96.2
97.6
100.0
90.1

#
91
92
93
94
95
96
97
98
99
100
101
102
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
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153

Name of Property
URBAN STAGE Yukigaya
URBAN STAGE Ikegami
URBAN STAGE Nakano
URBAN STAGE Takaido
URBAN STAGE Komagome
URBAN STAGE M ukojima
URBAN STAGE Kasai East
URBAN STAGE Ekoda
URBAN STAGE Takinokawa
URBAN STAGE Itabashi Kuyakushomae
URBAN STAGE Asakusa
URBAN STAGE M achiya
URBAN STAGE M achiya South Court
URBAN STAGE Koganei
URBAN STAGE M usashi Koganei
URBAN STAGE M usashino Hills
URBAN STAGE Koganei Honcho
URBAN STAGE Hino
URBAN STAGE Kumegawa
URBAN STAGE M usashi Kosugi comodo
URBAN STAGE Kawasaki
URBAN STAGE Tsurumi Teraya
URBAN STAGE Urayasu
URBAN STAGE M inami Gyotoku I
URBAN STAGE M inami Gyotoku II
URBAN STAGE M inami Gyotoku III
URBAN STAGE M inami Gyotoku IV
URBAN STAGE Gyotoku Ekimae
URBAN STAGE M inami Gyotoku V
URBAN STAGE Gyotoku
Greater Tokyo Area
PROUD FLAT Itsutsubashi
PROUD FLAT Kawaramachi
PROUD FLAT Shin Osaka
PRIM E URBAN Yamahana
PRIM E URBAN Kita Juyo Jo
PRIM E URBAN Odori Koen I
PRIM E URBAN Odori Koen II
PRIM E URBAN Kita Juichi Jo
PRIM E URBAN M iyanosawa
PRIM E URBAN Odori Higashi
PRIM E URBAN Chiji Kokan
PRIM E URBAN M aruyama
PRIM E URBAN Kita Nijuyo Jo
PRIM E URBAN Sapporo Idaimae
PRIM E URBAN Nagamachi Icchome
PRIM E URBAN Yaotome Chuo
PRIM E URBAN Aoi
PRIM E URBAN Kanayama
PRIM E URBAN Tsurumai
PRIM E URBAN Esaka I
PRIM E URBAN Esaka II
PRIM E URBAN Esaka III
URBAN STAGE Sapporo Riverfront
URBAN STAGE Kita Sanjo DoriURBAN STAGE Tsutsumidori Amamiya
URBAN STAGE Kamimaezu
URBAN STAGE Izumi
URBAN STAGE Tamatsukuri
Benefis Hakata Grand Suite
Benefis Yakuin M inami
Benefis Kashii Verbena
Benefis Hakata Higashi Grand Suite
Benefis Chihaya Grand Suite
Other Areas
Total

Location
Ota-ku, Tokyo
Ota-ku, Tokyo
Nakano-ku, Tokyo
Suginami-ku, Tokyo
Toshima-ku, Tokyo
Sumida-ku, Tokyo
Edogawa-ku, Tokyo
Nerima-ku, Tokyo
Kita-ku, Tokyo
Itabashi-ku, Tokyo
Taito-ku, Tokyo
Arakawa-ku, Tokyo
Arakawa-ku, Tokyo
Koganei-shi, Tokyo
Koganei-shi, Tokyo
Koganei-shi, Tokyo
Koganei-shi, Tokyo
Hino-shi, Tokyo
Higashimurayama-shi, Tokyo
Kawasaki-shi, Kanagawa
Kawasaki-shi, Kanagawa
Yokohama-shi, Kanagawa
Urayasu-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Sendai-shi, M iyagi
Sendai-shi, M iyagi
Osaka-shi, Osaka
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, M iyagi
Sendai-shi, M iyagi
Nagoya-shi, Aichi
Nagoya-shi, Aichi
Nagoya-shi, Aichi
Suita-shi, Osaka
Suita-shi, Osaka
Suita-shi, Osaka
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sendai-shi, M iyagi
Nagoya-shi, Aichi
Nagoya-shi, Aichi
Osaka-shi, Osaka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka

Acquisition Price(thousands of yen)
970,000
1,460,000
472,000
1,080,000
412,000
487,000
940,000
385,000
287,000
940,000
350,000
210,000
1,740,000
229,000
2,390,000
1,590,000
725,000
319,000
1,370,000
2,150,000
1,150,000
457,000
277,000
357,000
285,000
263,000
256,000
561,000
293,000
948,000
121,960,000
682,000
724,000
1,430,000
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
1,189,096
672,000
790,000
1,535,000
3,500,000
1,450,000
969,000
1,250,000
2,800,000
906,000
830,000
351,000
396,000
693,000
545,000
28,627,696
150,587,696

1－5－
-4-

Percentage ofTotal (%)
0.6
1.0
0.3
0.7
0.3
0.3
0.6
0.3
0.2
0.6
0.2
0.1
1.2
0.2
1.6
1.1
0.5
0.2
0.9
1.4
0.8
0.3
0.2
0.2
0.2
0.2
0.2
0.4
0.2
0.6
81.0
0.5
0.5
0.9
0.3
0.2
0.4
0.2
0.4
0.4
0.3
0.2
0.2
0.3
0.5
0.7
0.3
0.5
0.4
0.8
0.4
0.5
1.0
2.3
1.0
0.6
0.8
1.9
0.6
0.6
0.2
0.3
0.5
0.4
19.0
100.0

Leasable Floor Area(sqm)
1,536.59
2,456.48
801.301,746.20
990.18
1,108.91
1,884.62
872.49554.391,742.64
876.70455.194,141.56
682.43
5,999.80
2,961.06
1,604.72
994.682,610.05
3,691.28
1,706.46
952.06437.94682.05611.61
542.69535.08927.33662.68
1,766.47
177,653.15
1,861.56
1,967.54
2,990.68
1,518.58
1,155.60
1,850.20
1,148.72
1,851.39
2,114.53
1,494.36
1,007.30
911.07
1,773.90
2,439.90
3,411.24
1,380.21
1,571.04
1,391.02
2,502.11
1,189.12
1,392.00
2,151.67
15,459.57
5,094.29
4,251.91
3,541.43
7,543.10
2,373.10
2,176.23
897.84
1,222.34
1,854.13
1,740.70
85,228.38
262,881.53

Leasable Units(units)
94
95
51
107
19
55
78
35
29
68
22
26
77
27
98
80
43
54
91
56
80
50
27
41
37
33
32
46
38
77
6,542
60
64
112
33
36
53
36
60
54
36
42
27
36
58
60
43
46
58
104
48
57
79
310
114
65
101
250
80
67
34
39
65
48
2,375
8,917

Occupancy Rate
(Nov.2012)(%)
96.8
94.8
92.9
98.2
75.3
90.9
100.0
94.3
96.5
92.9
95.4
96.4
88.5
89.1
96.6
96.8
97.3
94.4
83.3
96.8
100.0
100.0
88.9
85.5
86.5
93.9
96.9
87.0
80.0
100.0
95.7
100.0
100.0
99.0
85.7
92.9
100.0
100.0
98.3
98.4
94.5
100.0
100.0
97.2
96.4
100.0
100.0
90.3
100.0
99.0
95.8
94.8
93.1
97.2
98.0
100.0
94.3
99.1
92.2
96.9
84.8
96.7
98.4
88.4
97.0
96.2

Profile of the Asset Management Company
As of October 1, 2011, Nomura Real Estate Asset Management Co., Ltd. (NREAM) was merged with Nomura Real Estate
Investment Management Co., Ltd. (NREIM) and Nomura Real Estate Capital Management Co., Ltd. (NRECM), with a change of its
Japanese trade name from Nomura Fudosan Toshin to Nomura Fudosan Toshi Komon. We believe that the Company can benefit
from various synergy effects from this merger including the ability to quickly respond to changes in the real estate and financial
markets, the enhancement of expertise and experience necessary for real estate investment, and the ability to provide asset
management services through one of the largest real estate asset management companies in Japan.

Company: Nomura Real Estate Asset Management Co., Ltd.
Capital: ¥300 million (as of March 31, 2012)
Shareholder : Nomura Real Estate Holdings, Inc. (100%)
Incorporation : January 24, 2003
・Organization of the asset management company

1－6－
-5-

Performance Report

Contents
Asset Management Report
Profile of the Company
Status of Investment Assets of the Company
Capital Expenditures
Expenses and Liabilities
Trading during the 12th fiscal period
Other Information

7
13
15
25
26
30
32

-6-

Asset Management Report
1. CHANGES IN KEY INDICATORS
12th Period
from Jun. 1, 2012
to Nov. 30, 2012

11th Period
from Dec. 1, 2011
to May 31, 2012

10th Period
from Jun. 1, 2011
to Nov. 30, 2011

9th Period
from Dec. 1, 2010
to May 31, 2011

8th Period
from Jun. 1, 2010
to Nov. 30, 2010

Operating Revenues(¥mln)

5,174

5,250

4,445

4,510

4,466

of which Real Estate Rental Revenues(¥mln)

5,174

5,241

4,445

4,497

4,461

Operating Expenses(¥mln)

2,721

2,743

2,346

2,333

2,315

of which Real Estate Rental Expenses(¥mln)

2,131

2,188

1,824

1,838

1,797

Operating Profit(¥mln)

2,452

2,507

2,098

2,177

2,150

Ordinary Income(¥mln)

1,876

1,857

1,479

1,553

1,515

Net Income(¥mln)

1,875

1,856

1,477

1,465

1,514

Total Assets(¥mln)

156,703

156,780140,152

140,534

140,614(%)（△ 0.0）（＋11.9）（△0.3）（△0.1）（＋1.3）

Interest-Bearing Debts(¥mln)

83,092

83,182

74,216

74,60674,676

Net Assets(¥mln)

70,83670,81863,27763,26563,314(%)（＋0.0）（＋11.9）（＋0.0）（△0.1）（＋0.2）(Changes from Previous Period)(Changes from Previous Period)
Unitholders’ Capital(¥mln)

68,961

68,961

61,79961,79961,799Number of Units Issued(Units)150,936

150,936

125,535

125,535

125,535

Net Assets per Unit(¥)

469,315

469,193504,059

503,963504,357

Total Cash Distribution(¥mln)

1,875

1,856

1,477

1,465

1,514

Cash Distribution per Unit(¥)

12,424

12,302

11,77011,674

12,068of which Cash Distribution of Profits(¥)

12,424

12,302

11,77011,674

12,068of which Cash Distribution in excess of Profits

(¥)

－

－

－

－

－

ROA (Return on Assets) (Note 1)

(%)

1.2

1.2

1.1

1.1

1.1

Annualized ROA (Note 2)

(%)

2.4

2.4

2.1

2.2

2.2

ROE (Return on Equity) (Note 3)

(%)

2.6

2.6

2.3

2.3

2.4

Annualized ROE (Note 2)

(%)

5.3

5.2

4.7

4.6

4.8

Capital Adequacy Ratio (Note 4)

(%)

45.2

45.2

45.1

45.0

45.0

(%)

（＋0.0）（＋0.0）（＋0.1）（△0.0）（△0.5）LTV (Loan-to-Value) (Note 5)

(%)

53.0

53.1

53.0

53.1

53.1

Number of Operating Days

(days)

183

183

183

182

183

Payout Ratio (Note 6)

(%)

99.9

99.9

100.0

99.9

100.0

(Changes from Previous Period)

Number of Properties Held(bldgs)

153

152

145

143

144

Total Leasable Floor Space(㎡)

262,881.53

261,275.90

220,129.28

214,215.90

214,145.54

Number of Tenants(tenants)

153

152

145

143

144

Occupancy Rate

(%)

96.2

96.2

96.8

96.1

96.3

Depreciation(¥mln)

968

963

804

793

795

Capital Expenditures(¥mln)

40

41

45

49

42

NOI (Net Operating Income) (Note 7)(¥mln)

4,010

4,016

3,424

3,452

3,459

FFO (Funds from Operation) (Note 8)(¥mln)

2,850

2,818

2,285

2,251

2,305

(¥)

18,886

18,671

18,207

17,931

18,369FFO per Unit (Note 9)

Note 1: “ROA (Return on Assets)” = Ordinary Income / {(Total Assets at the beginning of the period + Total Assets at the end of the period) / 2} x 100
As for 11th period, the Total Assets were time-adjusted due to the additional issuance of investment units.
Note 2: “ROA” and “ROE” are annualized using the following number of operating days. 8th period: 183 days, 9th Period: 182 days, 10th Period: 183 days, 11th Period: 183 days, and 12th
Period: 183 days.
Note 3: “ROE (Return on Equity)” = Net Income / {(Net Assets at the beginning of the period + Net Assets at the end of the period) / 2} x 100
As for 11th period, Net Assets were time-adjusted due to the additional issuance of investment units.
Note 4: “Capital Adequacy Ratio” = Net Assets / Total Assets x 100
Note 5: “LTV (Loan-to-Value)” = Interest-Bearing Debts / Total Assets x 100
Note 6: Rounded off to the first decimal place.
Note 7: “NOI (Net Operating Income)” = Real Estate Rental Revenues – Real Estate Rental Expenses + Depreciation
Note 8: “FFO (Funds from Operation) = Net Income + Depreciation + Amortization of Investment Corporation Bonds Issuance Costs – Real Estate Sale Profit/Loss
Note 9: “FFO per Unit” = FFO / Number of Units Issued-7-2. OUTLINE OF INVESTMENTS IN THE 12TH FISCAL PERIOD
Nomura Real Estate Residential Fund was incorporated on August 3, 2006 under the Act on Investment Trusts and Investment
Corporations of Japan, and listed Investment Securities that represent the units of investment equity of the Company in the Real
Estate Investment Trust (REIT) Market of the Tokyo Stock Exchange (TSE) on February 14, 2007 (TSE code: 3240).
The Company’s basic investment policy is to assure stable income and steady portfolio asset growth over the
medium-to-long-term through investment in specified assets such as properties and property-related securities.
We invest in properties with a focus on residential use in accordance with the Company’s basic policy (securities specified
for residential properties). In addition, in order to realize stable income over the medium-to-long term, we carry out expeditious
asset management according to property characteristics and market conditions (medium-to-long term stable management).
Note:
The Law Concerning Investment Trusts and Investment Corporations of Japan (Law No. 198 of 1951) is referred to as the "Investment Trust Law" hereinafter.
The Tokyo Stock Exchange is referred to hereinafter as the “TSE”.
The units of investment equity means the units of investment equity of the Company.
The term “property (ies)” refers to those assets defined in Section 29, Paragraph 1, Article (1) and (2), and “property-backed securities” refers to those assets defined in Section 29,
Paragraph 1, Article (3) respectively of the Articles of Incorporation of the Company.
The terms “property (ies)” and “property-backed securities” are collectively referred to as “property-related assets” hereinafter.
The properties and underlying properties of the property-related assets are collectively referred to as the “investment properties”.
The term “investment assets” refers to those assets that belong to the Company.

(1) Market Environments and fund performance
Although it was predicted that the Japanese economy would gradually recover on demand from post-quake projects, economic
performance shifted downward, mainly in exports and industry production, due to the slowing of economic recovery in the U.S.,
the slowing of growth in China, and the continuing European debt crisis.
The rental housing market continues an increasing trend of single-person and small-family households due to the impact ofdelayed marriage and the falling birth rate. Because of the continuing flow of population to metropolitan areas and the reducing
supply of newly-built properties, occupancy rates for prime properties with excellent locations and merchantability show steady
movement. Rents at some properties with market competitiveness increased after tenant replacement, which shows
improvement of property terms supported by high occupancy.
The motivation of companies and individuals in the wealthy class to acquire real estate continues with support frommonetary easing policies; as a result, market-derived capitalization rate continues its downward trend.
Four new listings were made on the J-REIT market made after April 2012, and public stock offerings for listed shares also
continued one after another. REIT share prices recovered with support from purchases by the Bank of Japan and an inflow ofmoney to investment trusts, all contributing to a recovery of the TSE REIT index to 1,000 following last September, a trend thathas continued.
Under the above-mentioned management environment, the 12th fiscal period (ending November 2012) realized theachievements shown below.

-8-(a) Asset Acquisition
The Company has fully utilized the strong sourcing routes of each property brand listed in the table below, and has continued
acquisition activities.
Brand

Acquisition Strategy

PROUD FLAT

Strategic Cooperation with Nomura Real Estate Development

Properties planned/developmentby Nomura Real Estate Development

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

PRIME URBAN

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

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

URBAN STAGE

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 6 years. By utilizing the expansive
brokerage network held by Nomura Real Estate Group, pursuit of collecting
adequate information on properties for selling will be fulfilled.

Properties planned/developed by companies
other than Nomura Real Estate Development＜Age of Building: Approx.1year or, more＞
Note:
We implemented an acquisition strategy for properties other than the above-mentioned three in accordance with that implemented for PRIME URBAN and URBAN STAGE.
Hereinafter, Nomura Real Estate Development refers to Nomura Real Estate Development Co., Ltd. Nomura Real Estate Group refers to a corporate group consisting of theconsolidated subsidiaries of Nomura Real Estate Holdings, Inc. (hereinafter referred to as “Nomura Real Estate Holdings”) including Nomura Real Estate Development (hereinafterreferred to as “NRED”) but excluding Nomura Real Estate Asset Management Co., Ltd., to which the Company assigns asset management- related operations.
Age of buildings above means that of the relevant property at the time of acquisition by the Company.

The Company promoted the replacement of properties in the portfolio for the purpose of improving portfolio profitability
and quality again in the 12th fiscal period. In the previous fiscal period, we sold URBAN STAGE Minami Urawa(Saitama-shi, Saitama, for 292 million yen) and acquired URBAN STAGE Koganei Honcho (Koganei-shi, Tokyo, for 725
million yen) for the purpose of improving the profitability of the portfolio.
As a result, the size of the assets related to the Company is 153 properties and 150,587 million yen (total acquisition
prices) at the end of November 2012.

-9-

(b) Property Management
In the 12th fiscal period, which was expected to have lower tenant turnover, the Company focused on the management ofexisting properties to maintain the high rate of occupancy from the previous fiscal period.
In regard to the leasing properties, because of our focus on reorganizing the restoration of properties to their originalstates to increase property competitiveness, and coordinated planning to maximize occupancy at the completion of
construction or remodeling and significantly shorten vacancy periods, we were able to achieve a 96.2% occupancy rate.
The Company also transferred property management(hereinafter referred to as the “PM Company”) for 44 properties
in the Tokyo Metropolitan District to Nomura Living Support Co. Ltd. on October 1, 2012 and December 1, 2012,
immediately after the end of the 12th fiscal period. Including the relevant 44 properties, a total of 66 properties implemented
Living Q Call for Rent, 24-hour emergency services for furnished appliances and special travel and leisure benefits fortenants, which are expected to increase customer satisfaction and property competitiveness.
In this way, we continue to place an emphasis on increasing profit by meeting market needs to maintain and improve
occupancy, increase non-rental income, and reduce costs.
(c) Status of Funding
In order to assure stable income and the steady growth of portfolio assets over the medium-to-long-term, the Company
undertook conservative financial strategies in the 12th fiscal period as shown below.
For the acquisition of new properties, we expeditiously procured funds through revolving credit loans. For therefinancing of 12,510 million yen in existing loans, the Company used three term loans to extend the repayment period ofinterest-bearing debts and fix interest rates with the goal of increasing financial stability and addressing the risk of risinginterest rates.
As a result, the ratio of long-term debt is 83.7%, the ratio of fixed interest debt (including fixation through interest
rate swap transactions) is 89.9%, the average maturity of the outstanding interest-bearing debt is 2.6 years (the average
maturity of the outstanding long-term interest-bearing debt is 3.0 years). In the end, the rate of interest-bearing debt in the
total assets, which is the loan-to-value (LTV) ratio, becomes 53.0%.
The table below shows the credit ratings of the Company as of the end of the 12th fiscal period.
Rating Company
Japan Credit Rating Agency, Ltd

Standard & Poor’s Ratings Japan K.K.

RatingOutlookLong-term Senior Debt Rating：AA

StableLong-term corporate credit rating：A

StableShort-term Corporate Credit Rating ：A-1－(d) Financial Performance and Distributions
As a result of the above-described management during the 12th fiscal period, the Company recorded 5,174 million yen in
operating revenue, 2,452 million yen in operating profit, 1,876 million yen in ordinary income, and 1,875 million yen in net
income. Concerning distribution, in order to qualify for special tax treatment under Article 67-15 of the Act on Special
Measures Concerning Taxation (Act No. 26 of 1957) to have the maximum amount of cash distribution treated as deductible
dividends, the Company decided to distribute the entire amount of retained earnings, excluding fractions of the distribution
amount per unit less than one yen. As a result, the amount of cash distribution per unit for this fiscal period was 12,424 yen.

- 10 -

3. STATUS OF CAPITAL
Changes in the number of units issued and unitholders’ Capital until the end of the 12th fiscal period (as of November 30, 2012) are
as follows:
Date

Number of Units Issued (Unit)
ChangeBalance
400

Type of Issue

Unitholders’ Capital (¥ mln)
ChangeBalance240Aug. 3, 2006

Initial private placement (Note 1)

Sep. 26, 2006

Private Offering (Note 2)

17,93018,330400

10,758

10,998240

Feb.13 , 2007
Mar.13, 2007

Public offering (Note 3)
Third-party allotment (Note 4)

47,4002,370

65,73068,10028,816
1,440

39,814
41,255

Feb.13, 2008
Mar.11, 2008

Public offering (Note 5)
Third-party allotment (Note 6)

27,3001,365

95,40096,765

11,918595

53,17353,769Dec. 7, 2009
Dec.24, 2009

Public offering (Note 7)
Third-party allotment (Note 8)

27,4001,370

124,165
125,535

7,647
382

61,417
61,799Dec. 1, 2011

Public offering (Note 9)23,629149,164

6,662

68,461

Dec.20, 2011

Third-party allotment (Note 10)

1,772

150,936

499

68,961

Note1: Investment units were issued at issue price of 600,000 yen per unit upon establishment of the Fund.
Note2: Additional investment units were issued at the price of 600,000 yen per unit for the purpose of financing acquisition of new properties, etc. Asset management commenced.
Note3: Additional investment units were issued at 630,000 yen per unit (subscription price: 607,950 yen) in a public offering, for the purpose of financing acquisition of new properties andrepayment of debt.
Note4: In conjunction with the public offering on February 13, 2007, investment units were allocated to Nomura Securities Co., Ltd., at 607,950 yen per unit issue price.
Note5: Additional investment units were issued at 451,780 yen per unit (subscription price: 436,567 yen) in a public offering, for the purpose of financing repayment of debt.
Note6: In conjunction with the public offering on February 13, 2008, investment units were allocated to Nomura Securities Co., Ltd., at 436,567 yen per unit issue price.
Note7: Additional investment units were issued at 289,545 yen per unit (subscription price: 279,097 yen) in a public offering, for the purpose of financing acquisition of new properties andrepayment of debt.
Note8: In conjunction with the public offering on December 7, 2009, investment units were allocated to Nomura Securities Co., Ltd., at 279,097 yen per unit issue price.
Note9: Additional investment units were issued at 292,193 yen per unit (subscription price: 281,951 yen) in a public offering, for the purpose of financing acquisition of new properties.
Note10: In conjunction with the public offering on December 1, 2011, investment units were allocated to Nomura Securities Co., Ltd., at 281,951 yen per unit issue price.

[Changes in Price at the Tokyo Stock Exchange]
Changes in prices of the Company’s investment units listed on the Tokyo Stock Exchange are as follows.

High

(¥)

12th Period
from Jun. 1, 2012
to Nov. 30, 2012
493,000

Low(¥)

372,000

11th Period
from Dec. 1, 2011
to May 31, 2012
440,000

10th Period
from Jun. 1, 2011
to Nov. 30, 2011
465,000

9th Period
from Dec. 1, 2010
to May 31, 2011
500,000

8th Period
from Jun. 1, 2010
to Nov. 30, 2010
434,500

312,500

308,000

359,000

320,000

4. CASH DISTRIBUTION
In order to qualify for special tax treatment under Article 67-15-1 of the Act on Special Measures Concerning Taxation to havemaximum cash distribution amount treated as deductible dividends, the Company distributed the entire unappropriated retained
earnings except for fractional amounts smaller than one yen per each investment unit. As a result, the amount of cash distribution
per unit for this fiscal period was ¥12,424.
12th Period
from Jun. 1, 2012
to Nov. 30, 2012
1,875,347

11th Period
from Dec. 1, 2011
to May 31, 2012
1,856,892

10th Period
from Jun. 1, 2011
to Nov. 30, 2011
1,477,597

9th Period
from Dec. 1, 2010
to May 31, 2011
1,465,558

8th Period
from Jun. 1, 2010
to Nov. 30, 2010
1,514,986

Retained Earnings(¥000)

Accumulated earnings(¥000)

118

77

50

63

29

Total cash distribution(Cash distribution per unit)(¥000)(¥)

1,875,228(12,424)

1,856,814(12,302)

1,477,546(11,770)

1,465,495(11,674)

1,514,956(12,068)of which distribution of profits(Distribution of profits per unit)(¥000)(¥)

1,875,228(12,424)

1,856,814(12,302)

1,477,546(11,770)

1,465,495(11,674)

1,514,956(12,068)of which refund of capital(¥000)

-

-

-

-

-

(Refund of capital per unit)

(¥)

(-)

(-)

(-)

(-)

(-)

- 11 -

5. INVESTMENT POLICY AND FUTURE ISSUESThe Japanese economy is expected to recover based on an increase in mining and manufacturing production, and a weak yen.
However, fiscal restraint in the U.S., anxiety about the potential elongation of the European debt crisis, and the risk of adownward swing in the world economy demand continued attention into the future.
Under these business circumstances, the Company will focus on property management while maximizing our strengths toensure stable income and steady growth of portfolio assets over the mid-to-long-term.
(a) Property Acquisition
The Company has set the goal of increasing total future assets under management to 300 billion yen. We consider
financial contents, utilize stable sourcing routes owned by each property brand, acquire information on prime properties
as quickly as possible, and carefully select properties for investment. Based on these policies, the Company promotes
further diversification of its portfolio and maintains a balance of property age to ensure stable income over the
mid-to-long term.
(b) Property Replacement
The Company continues replacing properties to improve portfolio quality and maintain stable income over the
mid-to-long term. In line with our conservative financial strategy, we fund new acquisitions with money acquired throughthe sale of other properties.
(c) Property Management
While focusing on maintenance and increasing income by promoting unified property management with other property
management companies and establishing appropriate leasing strategies for each property, the Company also places effort
into maximizing performance by reducing costs as much as possible.
We institute a wide range of measures based on a thorough understanding of property characteristics and market
needs to increase occupancy rates and cash flow, and strive to maintain and increase competitiveness and profitability ofour properties through appropriate large-scale repair and remodeling.
(d) Fund Procurement
Concerning funding, the Company continues placing effort into establishing an appropriate financial base through thecareful control of interest-rate risk by fixing interest rates, by extending repayment periods, by diversifying repayment
terms, financial institutions, and fund-raising approaches, and by procuring unsecured and unguaranteed loans. The
Company also carefully monitors financial market trends, discusses and selects the most appropriate means of fundprocurement, and pursues well-balanced composition of interest-bearing debts.

6. IMPORTANT EVENTS SUBSEQUENT TO THE 12TH FISCAL PERIOD
Transfer of a Property
On January 31, 2013, the Company entered into a sale and purchase agreement regarding the transfer of the property stated below
and on February 26, 2013, completed the transfer. Consumption taxes and adjustments of property taxes are excluded from thetransfer price.
URBAN STAGE Toritsu Daigaku
Type of Assets: Real Estate
Date of Agreement: January 31, 2013
Transfer Date
: February 26, 2013
Transfer Price: ¥564 million
Transferee: An individual
Impact on Revenues : Approximately ¥8 million (miscellaneous expenses excluded) of gain on sales of real estate will be recorded
for the 13th fiscal period (from December 1, 2012 to May 31, 2013).

- 12 -

Profile of the Company
1. STATUS OF UNITHOLDERS’ CAPITAL
12th Period(as of Nov. 30, 2012)

11th Period(as of May 31, 2012)

10th Period(as of Nov. 30, 2011)

9th Period(as of May 31, 2011)

8th Period(as of Nov. 30, 2010)

Maximum number of units allowed
to issue(Unit)

2,000,000

2,000,000

2,000,000

2,000,000

2,000,000

Number of units issued(Unit)

150,936

150,936

125,535

125,535

125,535

Amount of unitholders’ capital(¥ mln)68,961

68,961

61,79961,79961,799

9,446

9,895

9,417

8,789

9,988

Number of unitholders

2. MATTERS CONCERNING THE INVESTMENT UNITS
The 10 largest unitholders as of November 30, 2012 were as follows.
Name

Number of Units Held (Unit)

Portion in the Total Units Issued (%)

Japan Trustee Services Bank, Ltd.（Trust Account）

34,745

23.02

Nomura Real Estate Development Co., Ltd.

15,24010.10

The Nomura Trust and Banking Co., Ltd.（Investment Account）

8,370

5.55

The Master Trust Bank of Japan, Ltd.（Trust Account）

7,414

4.91

Trust and Custody Services Bank, Ltd.(Securities Investment Trust Account)

5,864

3.89

The Joyo Bank, Ltd.

4,602

3.05

Nomura Bank (Luxembourg) S.A.

3,868

2.56

The Bank of New York Treaty Jasdec Account

3,493

2.31

Trust and Custody Services Bank, Ltd.（Money Trust Tax Account）

2,088

1.38

Mizuho Trust & Banking co., Ltd.

1,882

1.25

87,566

58.02

Total

3. BREAKDOWN OF UNITHOLDERS
The breakdown of unitholders as of November 30, 2012 was as follows.
Number ofUnitholders
Private and other investors

Number of Units
per Unitholder

Portion (%)

Portion (%)

9,061

95.9

24,773

16.4

Financial institutions(Including sales agents for financial instruments firm)

104

1.1

87,60058.0

Other domestic corporate investors

166

1.8

20,177

13.4

Foreign corporate investors, etc.

115

1.2

18,386

12.2

9,446

100.0

150,936

100.0

Total

- 13 -

4. DIRECTORS AND AUDITOR(1) Name of directors and an auditor in the 12th fiscal period are as follows (Note 1)
Title

Name

Total Amount of Fees Paid
during the 12th Period(¥000)

Other Major Title(s)Executive Director

Yoshinori Hirohata

Full-time Statutory Auditor, Nomura Real Estate Urban Net Co., Ltd.(Note 2)

800

Executive Director

Masatomi Natsume

NRF Chief Investment Officer, Nomura Real Estate Asset Management, Co., Ltd.

－Supervisory Director

Shuhei Yoshida

Supervisory Director

Eitoku Aikawa

Supervisory Director

Motoharu Yokose

Accounting Auditor

Earnst & Young ShinNihon LLC

Representative Lawyer, Yoshida Shuhei Law Office
Supervisory Director, Nomura Real Estate Office Fund, Inc. (Note 3)
Director, Fair Appraisers, K.K.
Supervisory Director, Nomura Real Estate Office Fund, Inc. (Note 4)
Advisor, Asahi Tax Corporation.
Auditor, YAMATO HOLDINGS CO., LTD.

2,400

––

10,000800

1,600Note 1: No Executive Directors or Supervisory Directors are in possession of the Company’s investment units either under their own or another person’s name. Other companies at which
Supervisory Directors serve as directors have no mutual business interests whatsoever with the Company.
Note 2: Executive Director Yoshinori Hirohata resigned as a full-time Auditor of Nomura Real Estate Urban Net Co., Ltd. on June 22, 2012.
Note 3: Supervisory Director Shuhei Yoshida resigned as Supervisory Director of Nomura Real Estate Office Fund, Inc. on August 7, 2012.
Note 4: Supervisory Director Eitoku Aikawa resigned as Director, Fair Appraisers, K.K. on December 15, 2012. And Supervisory Director Eitoku Aikawa resigned as a Supervisory Directorof Nomura Real Estate Office Fund, Inc. on December 31, 2012.
Note 5: Executive Director Yoshinori Hirohata and Supervisory Director Shuhei Yoshida resigned as the Executive Director and Supervisory Director upon the expiration of the term on
August 3, 2012.
Note 6: At the fourth General Unitholders’ Meeting held on July 31, 2012, Mr. Masatomi Natsume and Mr. Motoharu Yokose were appointed Executive Director and Supervisory Director,
respectively, effective on August 4, 2012.
Note 7: Mr. Nobuyuki Hamada, Director and Executive Officer of Nomura Estate Asset Management Co., Ltd., which is the asset management company of the Company, has been appointed
as Substitute Executive Director to provide against vacancy of the Executive Director’s position or lack of statutory quorum.
Note 8: Mr. Saneaki Ichijo has been appointed as substitute Supervisory Director to provide against vacancy of the Supervisory Director’s position or lack of statutory quorum.

(2) Policy on Determining the Dismissal and Denial of Reappointment of Accounting Auditors
In case an item listed under Article 105, Paragraph 1 of the Investment Trust Law becomes applicable to the accounting auditor, andthe Board of Directors determines that there is no likelihood of improvement, the Board of Directors shall dismiss the accounting
auditor by unanimous vote of all board members.
In addition, if the Board of Directors determines that the accounting auditor is inappropriate for the position having given
thorough consideration to its execution of business and other factors, the Board of Directors shall dismiss or deny reappointment of
the accounting auditor, and present an agenda for appointment of a new accounting auditor at the General Unitholders’ Meeting.

5. ASSET MANAGEMENT COMPANY, CUSTODIANS AND ADMINISTRATORSBusiness

Company Name(s)Asset Management Company

Nomura Real Estate Asset Management Co., Ltd.

Custodian of assets

Mitsubishi UFJ Trust and Banking Corporation

Custodian of unitholders’ register

Mitsubishi UFJ Trust and Banking Corporation

Manager of special accounts

Mitsubishi UFJ Trust and Banking Corporation

General Administration (accounting, etc.)

Heiseikaikeisha(“HSK”) Tax Corporation

General Administration(Administrative work for organizational operation)

Mitsubishi UFJ Trust and Banking Corporation

General Administration (Financial agent.)

The Bank of Tokyo-Mitsubishi UFJ, Ltd., Sumitomo Mitsui Banking Corporation- 14 -

Status of Investment Assets of the Company
1. COMPOSITION OF ASSETS
Type of Assets
Real estate
Real estate in trust

11th Period (as of May 31, 2012)
Total AmountPortion(¥ mln) (Note 1)(%)(Note 2)

12th Period (as of Nov. 30, 2012)
Total AmountPortion(¥ mln) (Note 1)(%)(Note 2)

Area
Greater Tokyo Area

81,013

51.7

78,141

49.8

Other

27,10917.3

27,374

17.5

Greater Tokyo Area

39,77025.4

42,490

27.1

Other

2,078

1.3

2,094

1.3

149,97295.7

150,099

95.7

SubtotalCash, deposits and other assets

6,731

4.3

6,680

4.3

Grand Total

156,703

100.0

156,780100.0

Note 1: Total amount is taken from the balance sheet. (Real Estate and Real Estate in Trust represent the total book value after depreciation.)
Note 2: The percentage figures may not necessarily add up to 100.0 due to rounding to the nearest first decimal place.

2. BRIEF OF MAJOR PROPERTIES OWNED
The major component assets of the Company (the 10 largest properties by book value) as of the end of the 12th fiscal period are as
follows.
Name of Property

Book Value(¥ mln)Leasable Floor
Space(m2)

Leased Space(m2)

Occupancy Rate(%)

Portion of Rental
Revenues (%)

Primary Use

URBAN STAGE Sapporo Riverfront

3,694

15,459.57

15,023.96

97.2

3.6

Apartment building

PRIME URBAN Meguro Ohashi Hills

3,651

2,955.74

2,930.27

99.1

1.6

Apartment building

URBAN STAGE Nihonbashi Yokoyamacho

3,543

5,926.17

5,926.17

100.0

2.5

Apartment building

PROUD FLAT Shirokane Takanawa

3,453

2,950.11

2,928.26

99.3

1.8

Apartment building

URBAN STAGE Izumi

2,987

7,543.10

7,474.71

99.1

2.6

Apartment building

PROUD FLAT Kamata II

2,974

4,051.72

4,010.07

99.0

2.2

Apartment building

PROUD FLAT Kamioooka

2,652

4,872.17

4,872.17

100.0

1.9

Apartment building

URBAN STAGE Musashi Koganei

2,509

5,999.80

5,794.24

96.6

1.4

Apartment building

URBAN STAGE Kachidoki

2,285

4,524.00

4,337.67

95.9

1.7

Apartment building

PROUD FLAT Yokohama

2,277

3,118.12

3,071.31

98.5

1.4

Apartment building

Total

30,03057,400.50

56,368.83

98.2

20.8

- 15 -

3. DETAILS OF PORTFOLIO PROPERTIES

AreaType ofOwnership(Note 1)

Appraisal
Value as ofNovember 30,
2012 (¥ mln)
(Note 2)5-12-7 Mita, Minato-ku, Tokyo

Real estate

3,080

PROUD FLAT Yoyogi Uehara

3-25-7 Uehara, Shibuya-ku, Tokyo

Beneficial
Interest

908

PROUD FLAT Hatsudai

2-19-15 Hatsudai, Shibuya-ku, Tokyo

Real estate

668

PROUD FLAT Shibuya Sakuragaoka

21-8 Sakuragaoka, Shibuya-ku, Tokyo

Real estate

688

PROUD FLAT Gakugei Daigaku

2-21-20 Meguro Honcho, Meguro-ku, Tokyo

Real estate

756

PROUD FLAT Meguro Gyoninzaka

1-4-18 Shimo Meguro, Meguro-ku, Tokyo

Real estate

858

PROUD FLAT Sumida Riverside

1-31-7 Shinkawa, Chuo-ku, Tokyo

Real estate

2,210

PROUD FLAT Kagurazaka

1-11 Higashi Gokencho, Shinjuku-ku, Tokyo

Real estate

1,470

PROUD FLAT Waseda

521-9 Waseda Tsurumaki-cho, Shinjuku-ku, Tokyo(Note 3)

Real estate

1,030

PROUD FLAT Shinjuku Kawadacho

3-29 Kawadacho, Shinjuku-ku, Tokyo

Real estate

867

PROUD FLAT Sangen Jaya

1-4-25 Taishido, Setagaya-ku, Tokyo

Real estate

1,120

PROUD FLAT Kamata

4-21-4 Kamata, Ota-ku, Tokyo

Real estate

1,050

PROUD FLAT Kamata II

4-25-5 Kamata, Ota-ku, Tokyo

Real estate

3,040

PROUD FLAT Shinotsuka

3-12-10 Minami Otsuka, Toshima-ku, Tokyo

Real estate

562

PROUD FLAT Kiyosumi Shirakawa

2-3 Takabashi, Koto-ku, Tokyo

Real estate

910

PROUD FLAT Monzen Nakacho II

2-6-9 Furuishiba, Koto-ku, Tokyo

Real estate

602

PROUD FLAT Monzen Nakacho I

2-3-1 Tomioka, Koto-ku, Tokyo

Real estate

959

PROUD FLAT Fujimidai

3-8-4 Nukui, Nerima-ku, Tokyo

Real estate

1,380

PROUD FLAT Asakusa Komagata

1-10-6 Komagata, Taito-ku, Tokyo

Real estate

1,780

PROUD FLAT Yokohama

8-18 Daimachi Kanagawa-ku, Yokohama-shi, Kanagawa(Note 3)

Real estate

2,100

PROUD FLAT Kamioooka

3-4-6 Kamioooka Nishi, Konan-ku, Yokohama-shi, Kanagawa

Real estate

2,780

PROUD FLAT Tsurumi II

20-16 Toyooka-cho, Tsurumi-ku, Yokohama-shi, Kanagawa

Real estate

1,440

Name of Property

PROUD FLAT Shirokane Takanawa

GreaterTokyo
Area

Location(Postal Address)

PRIME URBAN Akasaka

7-6-19 Akasaka, Minato-ku, Tokyo

PRIME URBAN Tamachi

3-6-13 Sibaura, Minato-ku, Tokyo

PRIME URBAN Yoyogi

3-51-3 Yoyogi, Shibuya-ku, Tokyo

PRIME URBAN Bancho

2-9-1 Kudanminami, Chiyoda-ku, Tokyo

PRIME URBAN Chiyoda Fujimi

2-1-9 Fujimi, Chiyoda-ku, Tokyo

PRIME URBAN Iidabashi

4-8-9,11 Iidabashi, Chiyoda-ku, Tokyo

PRIME URBAN Ebisu

1-11-11 Mita, Meguro-ku, Tokyo

Beneficial
Interest
Beneficial
Interest
Beneficial
Interest
Beneficial
Interest
Beneficial
Interest
Beneficial
Interest
Real estate
Beneficial
Interest
Beneficial
Interest
Beneficial
Interest

864
899
350
1,010
625
1,950
1,150

PRIME URBAN Naka Meguro

3-28-24 Kami Meguro, Meguro-ku, Tokyo

PRIME URBAN Gakugei Daigaku

2-14-14 Takaban, Meguro-ku, Tokyo

PRIME URBAN Senzoku

2-20-8 Senzoku, Meguro-ku, Tokyo

PRIME URBAN Meguro Riverside

2-10-16 Shimo Meguro, Meguro-ku, Tokyo

Real estate

418

PRIME URBAN Meguro Ohashi Hills

2-4-16 Ohashi, Meguro-ku, Tokyo

Real estate

2,770

PRIME URBAN Hakusan

1-7-9 Mukougaoka, Bunkyo-ku, Tokyo

Real estate

836

PRIME URBAN Yotsuya Gaien Higashi

14-62 Samoncho, Shinjuku-ku, Tokyo(Note 3)

PRIME URBAN Nishi Shinjuku I

1-19-3 Kita Shinjuku, Shinjuku-ku, Tokyo- 16 -

Beneficial
Interest
Beneficial
Interest

1,300
761
491

1,420
1,120

Area

GreaterName of Property

Location(Postal Address)

Beneficial
Interest
Beneficial
Interest

Appraisal
Value as ofNovember 30,
2012 (¥ mln)
(Note 2)PRIME URBAN Nishi Shinjuku II

5-6-4 Nishi Shinjuku, Shinjuku-ku, Tokyo

PRIME URBAN Shinjuku Naitomachi

1-55 Naitomachi, Shinjuku-ku, Tokyo(Note 3)

PRIME URBAN Nishi Waseda

1-13-11 Nishi Waseda, Shinjuku-ku, Tokyo

Real estate

468

PRIME URBAN Sangen Jaya

2-41-3 Sangen Jaya, Setagaya-ku, Tokyo

Beneficial
Interest

701

PRIME URBAN Minami Karasuyama

5-7-4 Minami Karasuyama, Setagaya-ku, Tokyo

Real estate

726

PRIME URBAN Karasuyama Galleria

4-10-24 Minami Karasuyama, Setagaya-ku, Tokyo

Real estate

554

PRIME URBAN Karasuyama Court

4-1-11 Minami Karasuyama, Setagaya-ku, Tokyo

Real estate

358

PRIME URBAN Chitose Funabashi

5-40-4 Sakuragaoka, Setagaya-ku, Tokyo

Real estate

753

PRIME URBAN Shinagawa Nishi

6-24-13 Yukata-cho, Shinagawa-ku, Tokyo

Real estate

547

Beneficial
Interest
Beneficial
Interest
Real estate(Note 4)852
420

PRIME URBAN Osaki

5-8-10 Osaki, Shinagawa-ku, Tokyo

PRIME URBAN Omori

1-15-1 Omori Kita, Ota-ku, Tokyo

PRIME URBAN Kita Senzoku

2-14-18 Kita Senzoku, Ota-ku, Tokyo

PRIME URBAN Denenchofu Minami

12-5 Denenchofu Minami, Ota-ku, Tokyo

Real estate

768

PRIME URBAN Nakano Kamitakada

4-43-3 Kami Takada, Nakano-ku, Tokyo

Real estate531

Beneficial
Interest
Beneficial
Interest
Beneficial
Interest
Beneficial
Interest
Beneficial
Interest
Beneficial
Interest
Beneficial
Interest
Beneficial
Interest
Beneficial
Interest
Beneficial
Interest

1,690
798
489

PRIME URBAN Nishi Ogikubo

2-27-5 Nishi Ogiminami, Suginami-ku, Tokyo

PRIME URBAN Otsuka

1-3-4 Nishi Sugamo, Toshima-ku, Tokyo

PRIME URBAN Monzen Nakacho

1-5-7 Monzen Nakacho, Koto-ku, Tokyo

PRIME URBAN Kameido

2-38-2 Kameido, Koto-ku, Tokyo

PRIME URBAN Sumiyoshi

2-23-3 Ogibashi, Koto-ku, Tokyo

PRIME URBAN Kinshi Koen

4-7-12 Taihei, Sumida-ku, Tokyo

PRIME URBAN Kinshicho

5-16-14 Kotobashi, Sumida-ku, Tokyo

PRIME URBAN Hirai

6-23-12 Hirai, Edogawa-ku, Tokyo

PRIME URBAN Kasai

6-18-5 Naka Kasai, Edogawa-ku, Tokyo

PRIME URBAN Kasai II

7-9-7 Higashi Kasai, Edogawa-ku, Tokyo

PRIME URBAN Shinyurigaoka

3-1-17 Manpukuji Asao-ku, Kawasaki-shi, Kanagawa

Real estate

1,110

PRIME URBAN Urayasu

3-2-13 Todaijima, Urayasu-shi, Chiba

Beneficial
Interest

769

PRIME URBAN Gyotoku I

2-4-10 Fukuei, Ichikawa-shi, Chiba

Real estate

591

Tokyo
Area

Type ofOwnership(Note 1)

Real estate(Note 4)
Beneficial
Interest
Beneficial
Interest

378
673
2,270
745
570
1,190
689
673
613
971

PRIME URBAN Gyotoku II

1-11-5 Suehiro, Ichikawa-shi, Chiba

PRIME URBAN Gyotoku Ekimae

2-26-11 Gyotoku Ekimae, Ichikawa-shi, Chiba

PRIME URBAN Nishi Funabashi

437-1,2 Hongocho, Funabashi-shi, Chiba(Note 3)

PRIME URBAN Kawaguchi

3-1-11 Sakae-cho, Kawaguchi-shi, Saitama

Real estate

1,890

URBAN STAGE Azabu Juban

2-33-9 Higashi Azabu, Minato-ku, Tokyo

Real estate

946

URBAN STAGE Shibaura LOFT

4-5-17 Shibaura, Minato-ku, Tokyo

Real estate

1,780

URBAN STAGE Hatagaya

3-28-6 Hatagaya, Shibuya-ku, Tokyo

Real estate(Note 4)434

URBAN STAGE Toritsu Daigaku

2-15-14 Yakumo, Meguro-ku, Tokyo

Real estate

457

URBAN STAGE Kachidoki

6-5-6 Kachidoki, Chuo-ku, TokyoURBAN STAGE Shinkawa

2-16-10 Shinkawa, Chuo-ku, TokyoURBAN STAGE Nihonbashi Yokoyamacho

3-4 Nihonbashi Yokoyamacho, Chuo-ku, Tokyo- 17 -

Beneficial
Interest
Beneficial
Interest
Real estate

668
466
721

2,340
2,010
4,030

Area

Name of Property

URBAN STAGE Hongo Ikizaka

Greater

Location(Postal Address)

2-16-3 Hongo, Bunkyo-ku, Tokyo

Appraisal
Value as ofNovember 30,
2012 (¥ mln)
(Note 2)

Real estate

556

Beneficial
Interest
Beneficial
Interest

URBAN STAGE Naka Ochiai

1-7-19 Naka Ochiai, Shinjuku-ku, TokyoURBAN STAGE Ochiai

2-17-9 Nakai, Shinjuku-ku, TokyoURBAN STAGE Shinjuku Ochiai

4-10-9 Kita Shinjuku, Shinjuku-ku, Tokyo

Real estate

549

URBAN STAGE Roka Koen

1-12-26 Minami Karasuyama, Setagaya-ku, Tokyo

Real estate

310

Beneficial
Interest
Beneficial
Interest
Beneficial
Interest
Beneficial
Interest
Beneficial
Interest
Beneficial
Interest

588
331

URBAN STAGE Kamiuma

5-26-14 Kamiuma, Setagaya-ku, TokyoURBAN STAGE Sangen Jaya

5-38-12 Kamiuma, Setagaya-ku, TokyoURBAN STAGE Chitose Karasuyama

3-32-16 Kasuya, Setagaya-ku, TokyoURBAN STAGE Sangen Jaya II

2-4-16 Taishido, Setagaya-ku, TokyoURBAN STAGE Komazawa

2-7-18 Komazawa, Setagaya-ku, TokyoURBAN STAGE Karasuyama

4-5-15 Minami Karasuyama, Setagaya-ku, TokyoURBAN STAGE Kamikitazawa

5-21-22 Kami Kitazawa, Setagaya-ku, Tokyo

Real estate

585

URBAN STAGE Yoga

2-27-5 Yoga, Setagaya-ku, Tokyo

Real estate

1,270

URBAN STAGE Oimachi

4-10-9 Oi, Shinagawa-ku, Tokyo

Real estate

472

URBAN STAGE Oimachi II

5-10-10 Higashi Oi, Shinagawa-ku, Tokyo

Beneficial
Interest

1,170

URBAN STAGE Yukigaya

34-10 Kita Minemachi, Ota-ku, Tokyo

Real estate

930

URBAN STAGE Ikegami

7-4-11 Ikegami, Ota-ku, Tokyo

Beneficial
Interest

1,240

URBAN STAGE Nakano

2-17-1 Kami Takada, Nakano-ku, Tokyo

Real estate

459

URBAN STAGE Takaido

4-10-12 Takaido Higashi, Suginami-ku, Tokyo

Real estate

992

URBAN STAGE Komagome

6-12-15 Komagome, Toshima-ku, Tokyo

Beneficial
Interest

397

URBAN STAGE Mukojima

5-19-14 Higashi Mukojima, Sumida-ku, Tokyo

Real estate

518

URBAN STAGE Kasai East

6-16-9 Higashi Kasai, Edogawa-ku, Tokyo

Real estate

1,090

URBAN STAGE Ekoda

1-10-5 Asahigaoka, Nerima-ku, Tokyo

Real estate

380

URBAN STAGE Takinokawa

7-49-18 Takinokawa, Kita-ku, Tokyo

Real estate

259

URBAN STAGE Itabashi Kuyakushomae

27-13 Honcho, Itabashi-ku, Tokyo

Real estate

1,070

URBAN STAGE Asakusa

3-33-11 Asakusa, Taito-ku, Tokyo

Real estate(Note 4)342

URBAN STAGE Machiya

1-32-13 Machiya, Arakawa-ku, Tokyo

Real estate

193

URBAN STAGE Machiya South Court

3-73-5 Arakawa, Arakawa-ku, Tokyo

Real estate

1,740

URBAN STAGE Koganei

2-13-14 Nukui Kitamachi, Koganei-shi, Tokyo

Real estate(Note 4)197

URBAN STAGE Musashi Koganei

2-11-26 Nakacho, Koganei-shi, Tokyo

Real estate

1,860

URBAN STAGE Musashino Hills(A) 2-1-2 Kajinocho, Koganei-shi, Tokyo(B) 2-1 36 Kajinocho, Koganei-shi, Tokyo

Real estate

1,360

URBAN STAGE Koganei Honcho

4-14-25 Honcho, Koganei-shi Tokyo

Real estate

761

URBAN STAGE Hino

536-2 Hino Oaza, Hino-shi, Tokyo(Note 3)

Real estate

311

URBAN STAGE Kumegawa

1-5-6 Sakae-cho, Higashimurayama-shi, Tokyo(Note 3)

Real estate

1,390

URBAN STAGE Musashi Kosugi comodo

2-902-1 Shin Maruko Higashi Nakahara-ku, Kawasaki-shi, Kanagawa(Note 3)

Real estate

2,000

URBAN STAGE Kawasaki

1-4-15 Honcho Kawasaki-ku, Kawasaki-shi, Kanagawa(Note 3)

Real estate

926

URBAN STAGE Tsurumi Teraya

1-7-10 Teraya Tsurumi-ku, Yokohama-shi, Kanagawa

Real estate

461

URBAN STAGE Urayasu

2-11-5 Todaijima, Urayasu-shi, Chiba

Real estate(Note 4)

218

Tokyo
Area

Type ofOwnership(Note 1)- 18 -

846
663
668
460
344
324

Area

GreaterName of Property

Location(Postal Address)

Type ofOwnership(Note 1)

Appraisal
Value as ofNovember 30,
2012 (¥ mln)
(Note 2)URBAN STAGE Minami Gyotoku I

3-29-26 Arai, Ichikawa-shi, Chiba

Real estate

308

URBAN STAGE Minami Gyotoku II

1-4-18 Hiroo, Ichikawa-shi, Chiba

Real estate

239

URBAN STAGE Minami Gyotoku III

1-21-23 Ainokawa, Ichikawa-shi, Chiba

Real estate

245

URBAN STAGE Minami Gyotoku IV

1-5-18 Hiroo, Ichikawa-shi, Chiba

Real estate

220

URBAN STAGE Gyotoku Ekimae

4-6-14 Gyotoku Ekimae, Ichikawa-shi, Chiba

Real estate

485

URBAN STAGE Minami Gyotoku V

2-12-3 Minami Gyotoku, Ichikawa-shi, Chiba

Real estate

266

URBAN STAGE Gyotoku

1-2-8 Fukuei, Ichikawa-shi, Chiba

Real estate

815

Tokyo
Area

Subtotal

113,669

PROUD FLAT Itsutsubashi

2-5-2 Itsutsubashi, Aoba-ku, Sendai-shi, Miyagi

Real estate

652

PROUD FLAT Kawaramachi

2-10 Aza Hakkenkoji, Minami Koizumi, Wakabayashi-ku, Sendai-shi,
Miyagi(Note 3)

Real estate

645

PROUD FLAT Shin Osaka

6-11-7 Nishi Nakajima Yodogawa-ku, Osaka-shi, Osaka

Real estate

1,460

PRIME URBAN Yamahana

1-27 Nishi 14-Chome minami 17-Jo, Chuo-ku, Sapporo-shi, Hokkaido

Real estate

311

PRIME URBAN Kita Juyo Jo

2-1 Higashi 1-Chome Kita 14-Jo, Higashi-ku, Sapporo-shi, Hokkaido

Real estate

320

PRIME URBAN Odori Koen I

12 Nishi 9-Chome Minami 1-Jo, Chuo-ku, Sapporo-shi, Hokkaido(Note 3)

Real estate

464

PRIME URBAN Odori Koen II

12-1 Nishi 9-Chome Minami 1-Jo, Chuo-ku, Sapporo-shi, Hokkaido(Note 3)

Real estate

303

PRIME URBAN Kita Juichi Jo

1-3 Higashi 1-Chome Kita 11-Jo, Higashi-ku, Sapporo-shi, Hokkaido

Real estate

560

PRIME URBAN Miyanosawa

10-20 9-Chome Hassamu 6-Jo Nishi-ku, Sapporo-shi, Hokkaido

Real estate

509

PRIME URBAN Odori Higashi

12-63 Higashi 7-Chome Odori, Chuo-ku, Sapporo-shi, Hokkaido(Note 3)

Real estate

420

PRIME URBAN Chiji Kokan

1-12 Nishi 17-Chome Kita 4-Jo, Chuo-ku, Sapporo-shi, Hokkaido(Note 3)

Real estate

278

PRIME URBAN Maruyama

1-1 Nishi 22-Chome Kita 4-Jo, Chuo-ku, Sapporo-shi, Hokkaido

Real estate

248

PRIME URBAN Kita Nijuyo Jo

2-1 Higashi 1-Chome Kita 23-Jo, Higashi-ku, Sapporo-shi, Hokkaido

Real estate

459

PRIME URBAN Sapporo Idaimae

1-20 Nishi 13-Chome Minami 4-Jo, Chuo-ku, Sapporo-shi, Hokkaido

Real estate

650

PRIME URBAN Nagamachi Icchome

1-2-30 Nagamachi Taihaku-ku, Sendai-shi, Miyagi

Real estate

1,010

PRIME URBAN Yaotome Chuo

3-8-70 Yaotome Chuo, Izumi-ku, Sendai-shi, Miyagi

Real estate

416

PRIME URBAN Aoi

1-13-24 Aoi, Higashi-ku, Nagoya-shi, Aichi

Beneficial
Interest

650

PRIME URBAN Kanayama

4-2-37 Masaki, Naka-ku, Nagoya-shi, Aichi

Real estate

594

PRIME URBAN Tsurumai

5-8-29 Chiyoda Naka-ku, Nagoya-shi, Aichi

Real estate

1,040

Other

Beneficial
Interest
Beneficial
Interest

PRIME URBAN Esaka I

3-26-27 Tarumi-cho, Suita-shi, Osaka

PRIME URBAN Esaka II

3-31-31 Tarumi-cho, Suita-shi, Osaka

PRIME URBAN Esaka III

10-19 Hiroshiba-cho, Suita-shi, Osaka

Real estate

1,180

URBAN STAGE Sapporo Riverfront

1-1 Nishi 1-Chome Minami 9-Jo, Chuo-ku, Sapporo-shi, Hokkaido

Real estate

4,100

URBAN STAGE Kita Sanjo Dori

2-2 Higashi 2-Chome Kita 3-Jo, Chuo-ku, Sapporo-shi, Hokkaido(Note 3)

Real estate

1,590

URBAN STAGE Tsutsumidori Amamiya

4-37 Tsutsumidori Amamiya-machi, Aoba-ku, Sendai-shi, Miyagi

Real estate

823

URBAN STAGE Kamimaezu

2-4-2 Kamimaezu Naka-ku, Nagoya-shi, Aichi

Real estate

1,450

URBAN STAGE Izumi

1-20-28 Izumi Higashi-ku, Nagoya-shi, Aichi

Real estate

3,200

URBAN STAGE Tamatsukuri

2-16-11 Tamatsukuri Chuo-ku, Osaka-shi, Osaka

Real estate976

Benefis Hakata Grand Suite

2-14-7 Minoshima, Hakata-ku, Fukuoka-shi, Fukuoka

Real estate

695

Benefis Yakuin Minami

1-14-10 Shirogane, Chuo-ku, Fukuoka-shi, Fukuoka

Real estate306- 19 -

617
739

Area

Name of Property

Location(Postal Address)

Type ofOwnership(Note 1)

Appraisal
Value as ofNovember 30,
2012 (¥ mln)
(Note 2)

Benefis Kashii Verbena

2-3-7 Kashii Ekimae Higashi-ku, Fukuoka-shi, Fukuoka

Real estate364

Benefis Hakata Higashi Grand Suite

6-4-23 Yoshizuka Hakata-ku, Fukuoka-shi, Fukuoka

Real estate

576

Benefis Chihaya Grand Suite

4-11-20 Chihaya Higashi-ku, Fukuoka-shi, Fukuoka

Real estate

562

Other
Subtotal

28,167

Total

141,836

Note 1: “Beneficial interest” described in “Type of Ownership” refers to the beneficiary right of trusts whose major properties are real estate.
Note2: “Appraisal Value as of November 30, 2012” stands for the prices appraised by the estate surveyors in accordance with the provisions of the Company’s Articles of Incorporation andthe “Rules Concerning Calculations of Investment Corporations” (Cabinet Office Ordinance No. 47 of 2006). The appraisal prices are calculated by Daiwa Real Estate Appraisal, Co.,
Ltd., Chuo Real Estate Appraisal Co., Ltd., Japan Real Estate Institution, Tanizawa Sogo Appraisal Co., Ltd., Japan Valuers Co., Ltd., using the capitalization approach, with the endof the 12th fiscal period, i.e. November 30, 2012, being taken as the point of evaluation.
Note 3: Residential indication of the property is not available yet.
Note 4: The “Type of Ownership” of the relevant properties is changed from “Beneficial interest” to “Real estate” along with the cancellation or expiration of the term of the trust.

- 20 -

Area

GreaterTokyo
Area

Name of Property

12th Period (from Jun. 1, 2012 to Nov. 30, 2012)
Rentalat Period End
Portion of
Revenues
RentalNumber ofduring the
Occupancy
Revenues
Tenants
PeriodRate (%)(%)(Note 1)(¥ mln)11th Period (from Dec. 1, 2011 to May 31, 2012)
Rentalat Period End
Portion of
Revenues
RentalNumber ofduring the
Occupancy
Revenues
Tenants
PeriodRate (%)(%)(Note 1)(¥ mln)PROUD FLAT Shirokane Takanawa

1

99.3

94,439

1.8

1

96.6

93,230

1.8

PROUD FLAT Yoyogi Uehara

1

100.0

30,227

0.6

1

100.0

31,3290.6

PROUD FLAT Hatsudai

1

94.5

23,335

0.5

1

100.0

23,808

0.5

PROUD FLAT Shibuya Sakuragaoka

1

96.7

22,751

0.4

1

96.7

21,371

0.4

PROUD FLAT Gakugei Daigaku

1

100.0

24,518

0.5

1

95.4

25,405

0.5

PROUD FLAT Meguro Gyoninzaka

1

100.0

27,787

0.5

1

97.5

27,755

0.5

PROUD FLAT Sumida Riverside

1

99.2

73,034

1.4

1

92.8

71,939

1.4

PROUD FLAT Kagurazaka

1

100.0

47,773

0.9

1

95.2

46,380

0.9

PROUD FLAT Waseda

1

98.5

34,568

0.7

1

95.3

35,212

0.7

PROUD FLAT Shinjuku Kawadacho

1

100.0

28,804

0.6

1

92.3

29,752

0.6

PROUD FLAT Sangen Jaya

1

92.6

35,500

0.7

1

98.3

36,256

0.7

PROUD FLAT Kamata

1

98.5

36,622

0.7

1

98.5

35,985

0.7

PROUD FLAT Kamata II

1

99.0

111,744

2.2

1

96.8

107,622

2.1

PROUD FLAT Shinotsuka

1

91.5

20,649

0.4

1

100.0

19,850

0.4

PROUD FLAT Kiyosumi Shirakawa

1

100.0

30,689

0.6

1

100.0

30,7390.6

PROUD FLAT Monzen Nakacho II

1

94.9

19,728

0.4

1

94.9

21,145

0.4

PROUD FLAT Monzen Nakacho I

1

98.2

35,234

0.7

1

96.4

33,667

0.6

PROUD FLAT Fujimidai

1

100.0

56,182

1.1

1

100.0

54,738

1.0

PROUD FLAT Asakusa Komagata

1

100.0

63,145

1.2

1

95.7

64,618

1.2

PROUD FLAT Yokohama

1

98.5

74,330

1.4

1

100.0

74,707

1.4

PROUD FLAT Kamioooka

1

100.0

97,454

1.9

1

100.0

97,265

1.9

PROUD FLAT Tsurumi II

1

93.6

60,411

1.2

1

98.1

60,157

1.1

PRIME URBAN Akasaka

1

94.4

27,227

0.5

1

96.7

26,625

0.5

PRIME URBAN Tamachi

1

95.9

30,620

0.6

1

98.1

28,435

0.5

PRIME URBAN Yoyogi

1

94.2

11,243

0.2

1

96.0

12,2070.2

PRIME URBAN Bancho

1

91.5

31,237

0.6

1

98.2

32,905

0.6

PRIME URBAN Chiyoda Fujimi

1

93.8

20,672

0.4

1

96.6

21,636

0.4

PRIME URBAN Iidabashi

1

98.9

59,954

1.2

1

96.8

61,941

1.2

PRIME URBAN Ebisu

1

100.0

35,931

0.7

1

89.9

37,5330.7

PRIME URBAN Naka Meguro

1

98.0

39,235

0.8

1

100.0

40,3370.8

PRIME URBAN Gakugei Daigaku

1

87.7

22,722

0.4

1

90.1

22,774

0.4

PRIME URBAN Senzoku

1

100.0

14,211

0.3

1

100.0

15,342

0.3

PRIME URBAN Meguro Riverside

1

100.0

14,446

0.3

1

96.0

14,1950.3

PRIME URBAN Meguro Ohashi Hills

1

99.1

84,617

1.6

1

92.1

82,019

1.6

PRIME URBAN Hakusan

1

92.9

25,258

0.5

1

95.7

25,096

0.5

PRIME URBAN Yotsuya Gaien Higashi

1

94.3

44,763

0.9

1

93.9

45,1020.9

PRIME URBAN Nishi Shinjuku I

1

95.5

36,758

0.7

1

96.8

36,196

0.7

PRIME URBAN Nishi Shinjuku II

1

97.9

28,171

0.5

1

97.8

29,4890.6

PRIME URBAN Shinjuku Naitomachi

1

100.0

11,761

0.2

1

93.1

15,133

0.3

PRIME URBAN Nishi Waseda

1

100.0

15,408

0.3

1

100.0

15,414

0.3

PRIME URBAN Sangen Jaya

1

100.0

23,397

0.5

1

94.2

23,1770.4

PRIME URBAN Minami Karasuyama

1

95.2

24,131

0.5

1

90.4

26,026

0.5

PRIME URBAN Karasuyama Galleria

1

90.9

19,252

0.4

1

100.0

19,816

0.4

PRIME URBAN Karasuyama Court

1

91.3

11,604

0.2

1

100.0

13,1770.3

PRIME URBAN Chitose Funabashi

1

97.3

22,851

0.4

1

92.5

24,5100.5

PRIME URBAN Shinagawa Nishi

1

100.0

21,506

0.4

1

91.8

21,3530.4

PRIME URBAN Osaki

1

95.0

56,465

1.1

1

98.0

58,944

1.1

PRIME URBAN Omori

1

96.3

28,530

0.6

1

98.1

28,334

0.5

PRIME URBAN Kita Senzoku

1

97.8

18,145

0.4

1

93.5

19,7700.4

PRIME URBAN Denenchofu Minami

1

93.3

27,069

0.5

1

100.0

25,9880.5

PRIME URBAN Nakano Kamitakada

1

90.2

19,347

0.4

1

100.0

19,2580.4

PRIME URBAN Nishi Ogikubo

1

100.0

13,150

0.3

1

95.9

13,6390.3

PRIME URBAN Otsuka

1

100.0

22,558

0.4

1

91.5

23,1480.4

PRIME URBAN Monzen Nakacho

1

97.5

75,790

1.5

1

98.3

78,941

1.5

PRIME URBAN Kameido

1

98.1

27,654

0.5

1

98.1

24,885

0.5

PRIME URBAN Sumiyoshi

1

95.0

18,454

0.4

1

87.5

18,4990.4- 21 -

Area

Name of Property

12th Period (from Jun. 1, 2012 to Nov. 30, 2012)
Rentalat Period End
Portion of
Revenues
RentalNumber ofduring the
Occupancy
Revenues
Tenants
PeriodRate (%)(%)(Note 1)(¥ mln)11th Period (from Dec. 1, 2011 to May 31, 2012)
Rentalat Period End
Portion of
Revenues
RentalNumber ofduring the
Occupancy
Revenues
Tenants
PeriodRate (%)(%)(Note 1)(¥ mln)PRIME URBAN Kinshi Koen

1

90.9

41,301

0.8

1

98.7

41,741

0.8

PRIME URBAN Kinshicho

1

100.0

23,948

0.5

1

100.0

31,324

0.6

PRIME URBAN Hirai

1

100.0

23,393

0.5

1

90.5

22,3730.4

PRIME URBAN Kasai

1

80.0

19,523

0.4

1

95.6

22,7380.4

PRIME URBAN Kasai II

1

86.8

31,232

0.6

1

89.7

32,466

0.6

PRIME URBAN Shinyurigaoka

1

100.0

37,673

0.7

1

100.0

37,7520.7

PRIME URBAN Urayasu

1

86.7

25,594

0.5

1

95.0

27,9830.5

PRIME URBAN Gyotoku I

1

80.8

21,695

0.4

1

98.1

24,3820.5

PRIME URBAN Gyotoku II

1

100.0

24,098

0.5

1

100.0

29,064

0.6

PRIME URBAN Gyotoku Ekimae

1

97.3

18,428

0.4

1

97.3

16,7100.3

PRIME URBAN Nishi Funabashi

1

93.3

25,230

0.5

1

96.7

27,135

0.5

PRIME URBAN Kawaguchi

1

96.7

71,807

1.4

1

97.5

72,124

1.4

URBAN STAGE Azabu Juban

1

87.3

30,161

0.6

1

100.0

31,037

0.6

URBAN STAGE Shibaura LOFT

1

98.6

56,932

1.1

1

94.6

57,997

1.1

URBAN STAGE Hatagaya

1

97.4

16,170

0.3

1

97.4

16,503

0.3

URBAN STAGE Toritsu Daigaku

1

100.0

17,362

0.3

1

100.0

18,343

0.3

URBAN STAGE Kachidoki

1

95.9

88,514

1.7

1

89.8

91,648

1.7

URBAN STAGE Shinkawa

1

96.5

75,207

1.5

1

95.0

73,501

1.4

URBAN STAGE Nihonbashi Yokoyamacho

1

100.0

128,073

2.5

1

96.1

131,514

2.5

URBAN STAGE Hongo Ikizaka

1

100.0

17,591

0.3

1

92.6

18,1600.3

URBAN STAGE Naka Ochiai

1

88.6

21,619

0.4

1

89.9

23,091

0.4

URBAN STAGE Ochiai

1

90.8

13,006

0.3

1

96.8

14,1990.3

URBAN STAGE Shinjuku Ochiai

1

95.6

20,334

0.4

1

93.9

21,2680.4

URBAN STAGE Roka Koen

1

91.3

10,764

0.2

1

82.5

12,4950.2

URBAN STAGE Kamiuma

1

99.1

32,357

0.6

1

92.3

31,6590.6

URBAN STAGE Sangen Jaya

1

97.0

25,833

0.5

1

98.3

24,663

0.5

URBAN STAGE Chitose Karasuyama

1

85.9

24,823

0.5

1

92.4

26,695

0.5Greater

URBAN STAGE Sangen Jaya II

1

91.2

15,933

0.3

1

100.0

16,9630.3

Tokyo

URBAN STAGE Komazawa

1

96.0

13,969

0.3

1

100.0

13,7030.3

Area

URBAN STAGE Karasuyama

1

90.0

12,276

0.2

1

96.7

13,094

0.2

URBAN STAGE Kamikitazawa

1

96.2

21,951

0.4

1

100.0

22,667

0.4

URBAN STAGE Yoga

1

97.6

42,805

0.8

1

96.2

39,858

0.8

URBAN STAGE Oimachi

1

100.0

19,789

0.4

1

100.0

19,1100.4

URBAN STAGE Oimachi II

1

90.1

47,734

0.9

1

95.6

49,112

0.9

URBAN STAGE Yukigaya

1

96.8

37,758

0.7

1

97.9

38,2280.7

URBAN STAGE Ikegami

1

94.8

48,689

0.9

1

93.8

51,247

1.0

URBAN STAGE Nakano

1

92.9

17,836

0.3

1

94.7

19,105

0.4

URBAN STAGE Takaido

1

98.2

39,703

0.8

1

95.3

39,7320.8

URBAN STAGE Komagome

1

75.3

13,077

0.3

1

66.4

16,512

0.3

URBAN STAGE Mukojima

1

90.9

20,471

0.4

1

92.7

20,826

0.4

URBAN STAGE Kasai East

1

100.0

36,631

0.7

1

100.0

43,276

0.8

URBAN STAGE Ekoda

1

94.3

15,017

0.3

1

100.0

14,807

0.3

URBAN STAGE Takinokawa

1

96.5

10,970

0.2

1

94.5

11,6380.2

URBAN STAGE Itabashi Kuyakushomae

1

92.9

36,113

0.7

1

92.9

39,571

0.8

URBAN STAGE Asakusa

1

95.4

15,466

0.3

1

100.0

15,423

0.3

URBAN STAGE Machiya

1

96.4

9,433

0.2

1

92.2

8,663

0.2

URBAN STAGE Machiya South Court

1

88.5

68,153

1.3

1

95.9

70,933

1.4

URBAN STAGE Koganei

1

89.1

9,608

0.2

1

97.2

10,4100.2

URBAN STAGE Musashi Koganei

1

96.6

72,851

1.4

1

91.4

72,4101.4

URBAN STAGE Musashino Hills

1

96.8

49,241

1.0

1

92.9

52,471

1.0

URBAN STAGE Koganei Honcho(Note 2)

1

97.3

27,051

0.5

－

－

－

－

URBAN STAGE Hino

1

94.4

15,325

0.3

1

96.3

16,0850.3

URBAN STAGE Kumegawa

1

83.3

48,545

0.9

1

96.8

55,1491.1

URBAN STAGE Musashi Kosugi comodo

1

96.8

65,413

1.3

1

89.9

68,376

1.3

URBAN STAGE Kawasaki

1

100.0

36,763

0.7

1

96.7

36,162

0.7

URBAN STAGE Tsurumi Teraya

1

100.0

20,961

0.4

1

93.2

20,5800.4

URBAN STAGE Urayasu

1

88.9

8,323

0.2

1

88.9

8,325

0.2

- 22 -

Area

Name of Property

12th Period (from Jun. 1, 2012 to Nov. 30, 2012)
Rentalat Period End
Portion of
Revenues
RentalNumber ofduring the
Occupancy
Revenues
Tenants
PeriodRate (%)(%)(Note 1)(¥ mln)11th Period (from Dec. 1, 2011 to May 31, 2012)
Rentalat Period End
Portion of
Revenues
RentalNumber ofduring the
Occupancy
Revenues
Tenants
PeriodRate (%)(%)(Note 1)(¥ mln)URBAN STAGE Minami Gyotoku I

1

85.5

13,704

0.3

1

92.7

14,656

0.3

URBAN STAGE Minami Gyotoku II

1

86.5

11,524

0.2

1

86.5

11,696

0.2

URBAN STAGE Minami Gyotoku III

1

93.9

12,087

0.2

1

90.8

11,897

0.2

Greater

URBAN STAGE Minami Gyotoku IV

1

96.9

11,662

0.2

1

96.9

12,6600.2

Tokyo

URBAN STAGE Gyotoku Ekimae

1

87.0

18,537

0.4

1

91.3

22,0380.4

Area

URBAN STAGE Minami Gyotoku V

1

80.0

12,259

0.2

1

90.0

12,481

0.2

URBAN STAGE Gyotoku

1

100.0

33,877

0.7

1

100.0

34,0080.6

URBAN STAGE Minami Urawa (Note 3)

－

－

－

－

－

－

7,557

0.1

Subtotal
PROUD FLAT Itsutsubashi

120

95.7

3,987,291

77.1

119

95.5

4,054,828

77.4

1

100.0

29,233

0.6

1

100.0

28,557

0.5

PROUD FLAT Kawaramachi

1

100.0

29,219

0.6

1

98.6

28,878

0.6

PROUD FLAT Shin Osaka

1

99.0

58,680

1.1

1

99.2

66,9791.3

PRIME URBAN Yamahana

1

85.7

11,793

0.2

1

93.9

12,7940.2

PRIME URBAN Kita Juyo Jo

1

92.9

12,008

0.2

1

87.4

12,7230.2

PRIME URBAN Odori Koen I

1

100.0

17,177

0.3

1

100.0

17,1580.3

PRIME URBAN Odori Koen II

1

100.0

11,142

0.2

1

100.0

11,1330.2

PRIME URBAN Kita Juichi Jo

1

98.3

24,320

0.5

1

98.3

24,0890.5

PRIME URBAN Miyanosawa

1

98.4

23,441

0.5

1

98.4

23,6220.5

PRIME URBAN Odori Higashi

1

94.5

18,689

0.4

1

100.0

18,4400.4

PRIME URBAN Chiji Kokan

1

100.0

12,920

0.2

1

100.0

12,5650.2

PRIME URBAN Maruyama

1

100.0

11,383

0.2

1

100.0

10,9660.2

PRIME URBAN Kita Nijuyo Jo

1

97.2

20,322

0.4

1

97.3

20,5620.4

PRIME URBAN Sapporo Idaimae

1

96.4

28,076

0.5

1

97.1

27,851

0.5

PRIME URBAN Nagamachi Icchome

1

100.0

42,033

0.8

1

100.0

42,1280.8

PRIME URBAN Yaotome Chuo

1

100.0

18,567

0.4

1

100.0

18,321

0.3

PRIME URBAN Aoi

1

90.3

24,908

0.5

1

98.1

25,9700.5

PRIME URBAN Kanayama

1

100.0

23,985

0.5

1

98.3

23,765

0.5

PRIME URBAN Tsurumai

1

99.0

42,983

0.8

1

97.1

42,3990.8

PRIME URBAN Esaka I

1

95.8

23,420

0.5

1

95.9

24,5370.5

PRIME URBAN Esaka II

1

94.8

28,278

0.5

1

98.3

28,026

0.5

PRIME URBAN Esaka III

1

93.1

43,341

0.8

1

96.6

44,602

0.9

URBAN STAGE Sapporo Riverfront

1

97.2

186,041

3.6

1

97.3

181,497

3.5

URBAN STAGE Kita Sanjo Dori

1

98.0

67,345

1.3

1

97.6

66,444

1.3

URBAN STAGE Tsutsumidori Amamiya

1

100.0

44,531

0.9

1

98.6

44,211

0.8

URBAN STAGE Kamimaezu

1

94.3

55,070

1.1

1

95.3

56,617

1.1

URBAN STAGE Izumi

1

99.1

136,327

2.6

1

97.9

126,532

2.4

URBAN STAGE Tamatsukuri

1

92.2

36,021

0.7

1

100.0

36,8200.7

Benefis Hakata Grand Suite

1

96.9

30,363

0.6

1

98.9

28,8800.6

Benefis Yakuin Minami

1

84.8

12,566

0.2

1

100.0

12,7280.2

Benefis Kashii Verbena

1

96.7

15,657

0.3

1

94.4

16,6530.3

Benefis Hakata Higashi Grand Suite

1

98.4

24,379

0.5

1

89.6

26,3490.5

Benefis Chihaya Grand Suite

1

88.4

23,110

0.4

1

100.0

24,0990.5

Subtotal

33

97.0

1,187,343

22.9

33

97.7

1,186,912

22.6

Total

153

96.2

5,174,635

100.0

152

96.2

5,241,740

100.0

Other

Note 1: In the case that a part of or all rental units in individual properties are placed on the rental market, and the tenant of the relevant Lease Agreement (Master Lease Agreement) has
entered into an agreement on subleasing the relevant rental unit with the end-tenant (actual sublessee), we deem the lesser of the relevant Master Lease Agreement as one (1). In thecase that a specific tenant rents multiple units in a specific property, we deem the tenant of the relevant property as one (1). If a tenant rents units in multiple properties, we show thenumber of the properties rented by the relevant tenant as the number of tenants.
Note 2: The relevant properties were acquired on June 8, 2012. The figure shown in the “rental revenues during the 12th fiscal period” column is after the date of acquisition.
Note 3: The relevant properties were sold on March 14, 2012. The figure shown in the “rental revenues during the 11th fiscal period” column is after the date of selling.

- 23 -

4. OUTSTANDING AMOUNT AND CURRENT PRICE OF SPECIFIED TRANSACTIONS
The outstanding amount and current price of the specified transactions as of November 30, 2012 are as follows.
Segment
Transaction other than market transaction

Contract Amount(¥ mln) (Note 1)
Longer than a Year

Type of Transaction
Interest-rate swap
(Receiving floating-rate, paying fixed-rate)
Total

Current Price(¥ mln) (Note 2)

44,99237,920△212

44,99237,920△212

Note 1: Presented based on notional principal of contract.
Note 2: Evaluated at the price provided by the counterparty based on the prevailing market rate.

5. STATUS OF THE OTHER ASSETS
Other than the Trust Beneficial Interest and Real Estate listed in the table under the title “3. Details of Portfolio Properties”, theCompany had no other assets to integrate into the portfolio as of November 30, 2012.

6. STATUS OF ASSETS BY COUNTRY AND REGIONThe Company had no assets in countries or regions outside Japan.

- 24 -

Capital Expenditures
1. PLAN OF CAPITAL EXPENDITURES
The table below lists major capital expenditures in conjunction with the refurbishment and/or renewal works scheduled for the future(finished in part) on the properties held as of November 30, 2012. The estimated cost of works includes the amount to be charged as“expenses” for accounting purposes.
Name of Property (Location)

Description of Works (Purpose)

Estimated Period

Total

Estimated Cost (¥ 000)
Paid during
Paid before
12th Period
12th Period

URBAN STAGE Ikegami（Ota-ku, Tokyo）

Intercom replacement

From : Jan. 2013
To
: Feb. 2013

6,520

-

-

URBAN STAGE Komagome（Toshima-ku, Tokyo）

Unit renovation

From : Oct. 2012
To
: Feb. 2013

43,500--URBAN STAGE Mukojima（Sumida-ku, Tokyo）

Major repair

From : Sep. 2012
To
: Dec. 2012

26,150--URBAN STAGE Minami Gyotoku III（Ichikawa-shi, Chiba）

Intercom replacement

From : Feb. 2013To
: Mar. 2013

3,600

-

-

URBAN STAGE Tsutsumidori Amamiya（Sendai-shi, Miyagi）

Renovation of mechanical parking equipment

From : Nov. 2012
To
: Dec. 2012

7,389

-

-

2. CAPITAL EXPENDITURES DURING THE 12TH FISCAL PERIOD
The table below lists capital expenditures during the 12th fiscal period in conjunction with the major works of renovation. During theperiod, we have conducted engineering works totalling ¥218,578 thousand: capital expenditures of ¥40,431 thousand and repair
expenses of ¥178,147 thousand combined all together.
Name of Property (Location)

Description of Works (Purpose)

Period of Works

Cost of Works (¥ 000)

PROUD FLAT Kamioooka（Yokohama-shi, Kanagawa）

Housing equipment refurbishment

From : Oct. 2012To
: Oct. 2012

1,861

URBAN STAGE Azabu Juban（Minato-ku, Tokyo）

Common area renovation

From : Nov. 2012To
: Nov. 2012

2,717

URBAN STAGE Azabu Juban（Minato-ku, Tokyo）

Housing equipment refurbishment

From : Oct. 2012To
: Nov. 2012

1,782

URBAN STAGE Azabu Juban（Minato-ku, Tokyo）

Housing equipment refurbishment

From : Aug. 2012To
: Aug. 2012

1,756

URBAN STAGE Kamiuma（Setagaya-ku, Tokyo）

Housing equipment refurbishment

From : Jul. 2012To
: Aug. 2012

4,026

URBAN STAGE Chitose Karasuyama（Setagaya-ku, Tokyo）

Major repair

From : Sep. 2012To
: Nov. 2012

4,535

Other Properties

Housing equipment refurbishment

From : Jun. 2012To
: Nov. 2012

23,75240,431Total

3. FUNDS RESERVED FOR THE LONG-TERM REPAIR PLANS
Subject to the long-term schedule for repairs and maintenance set down for each building, the Company has accounted for reserves fromthe operating cash flow to prepare for large-scale engineering works to be carried out in the future.
12th Period
from Jun. 1, 2012
to Nov. 30, 2012
Balance brought forward from theprevious period
Amount reserved during the period
Amount used during the period
Balance brought forward to thenext period

11th Period
from Dec. 1, 2011
to May 31, 2012

10th Period
from Jun. 1, 2011
to Nov. 30, 2011

9th Period
from Dec. 1, 2010
to May 31, 2011

8th Period
from Jun. 1, 2010
to Nov. 30, 2010(¥ mln)

1,385

1,253

1,102

973

818

(¥ mln)(¥ mln)

176
12

168
36

159
9

161
32

160
5

(¥ mln)

1,548

1,385

1,253

1,102

973

- 25 -

Expenses and Liabilities
1. EXPENSES RELATED TO ASSET MANAGEMENT
11th Period
from Dec. 1, 2011
to May 31, 2012

12th Period
from Jun. 1, 2012
to Nov. 30, 2012
Asset management fees (Note 1)of which Management Fee I
of which Management Fee IIof which Management Fee III(Note 2)
Custodian fees
General administrative fees
Directors’ compensation
Other expenses
Total(¥000)(¥000)(¥000)－(¥000)(¥000)(¥000)(¥000)(¥000)

379,006
196,975
182,030－
14,96826,701
5,600
163,709589,984

365,310
185,385
179,925－
13,51323,635
7,200
144,652
554,312Note 1: In addition to the items shown above, asset management fees related to the acquisition of properties calculated in the book value of individual pieces of real estate, etc. were 114,200
thousand yen for the 11th period and 7,250 thousand yen for the 12th period.
Note 2: If the total assets listed on the balance sheet as of the date of settlement during the fiscal period immediately before the relevant fiscal period is less than 300 billion yen, management
fee III for the relevant fiscal period is not applied.

- 26 -

2. STATUS OF BORROWINGSThe status of borrowings from the financial institutions as of November 30, 2012 is as follows.
Current Portion of Long-term debt
Financial Institutions
Daido Life Insurance Company
Mitsui Sumitomo Insurance Company, Ltd
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
Mizuho Corporate Bank, Ltd.
Mitsubishi UFJ Trust and Banking Corp.
Sumitomo Mitsui Trust Bank, Ltd.
Shinkin Central Bank
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
Mizuho Corporate Bank, Ltd.
Mitsubishi UFJ Trust and Banking Corp.
Sumitomo Mitsui Trust Bank, Ltd.
The Chiba Bank, Ltd.
Aozora Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
Mizuho Corporate Bank, Ltd.
Mitsubishi UFJ Trust and Banking Corp.
Mizuho Corporate Bank, Ltd.
Taiyo Life Insurance Company
Development Bank of JapanThe Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
Mitsubishi UFJ Trust and Banking Corp.
The Dai-ichi Life Insurance Company, Limited.
Development Bank of Japan, Inc.
Development Bank of Japan, Inc.
Subtotal

Date
Borrowed
Apr. 27, 2007

Aug. 27, 2009

Sep. 7, 2010

Aug. 26, 2011

Dec. 3, 2009

May 23, 2008

Sep. 29, 2008
Sep. 27, 2007
Aug. 27, 2009
Feb. 26, 2010

Outstanding asof Nov. 30, 2012(¥000)

Outstanding as of
May 1, 2012(¥000)

400,000
400,000
400,000
400,000
1,000,000
1,000,000
3,500,000
1,824,000
1,824,000
1,824,000
800,000
80,000100,000

1,100,000
1,100,000
520,000
520,000
520,000
520,000
520,000
1,720,000
1,280,000
1,280,000
700,000
780,000
700,000
750,000
500,000
400,000
400,000
400,000
400,000
1,000,000
1,000,000
3,500,000
80,000100,000

13,552,000

19,790,000- 27 -

Average
Interest Rate(%)
(Note 1)

Date of
Repayment

1.81375

Aug. 27, 2012

1.49300

Aug. 27, 20121.25071

Aug. 27, 2012

0.67000

Aug. 27, 2012

1.51625

Dec. 3, 2012

1.83625

May 23, 2013

1.74250

Sep. 29, 2013

1.99875
2.10000
2.03000

Sep. 30, 2013
(Note 2)
(Note 3)

Method of
Repayment

Use ofBorrowings

Note

Balloonpayment(Note 4)

Unsecured/
Uninsured(Note 2)
(Note 3)

Long-term debt
Outstanding asof Nov. 30, 2012(¥000)

Outstanding as of
May 31, 2012(¥000)

1,000,000
1,000,000
2,000,000
500,000
500,000
700,000
500,000
500,000
500,000
500,000
500,000
1,000,000
500,000
500,000
320,000
400,000
700,000
750,000
1,000,000
1,400,000
1,000,000
1,000,000
1,300,000
1,000,000
1,000,000
1,900,000
1,000,000
500,000
1,800,000
1,800,000
2,500,000
1,800,000
1,800,000
4,700,000
4,700,000
4,700,000
1,100,000
1,100,000
1,720,000
1,300,000
1,300,000
900,000
900,000
520,000
500,000
1,280,000
1,650,000

1,824,000
1,824,000
1,824,000
800,000
1,000,000
1,000,000
2,000,000
500,000
500,000
700,000
500,000
500,000
500,000
500,000
500,000
1,000,000
1,000,000
1,400,000
1,000,000
1,000,000
1,300,000
1,000,000
1,000,000
1,900,000
1,000,000
500,000
1,800,000
1,800,000
2,500,000
1,800,000
1,800,000
4,700,000
4,700,000
4,700,000
1,320,000
1,700,000

Subtotal

59,540,000

53,392,000

Total

73,092,000

73,182,000

Financial Institutions
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
Mitsubishi UFJ Trust and Banking Corp.
The Dai-ichi Life Insurance Company, Limited.
Mitsubishi UFJ Trust and Banking Corp.
The Nomura Trust and Banking Co., Ltd.
Taiyo Life Insurance Company
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
The Nomura Trust and Banking Co., Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
Mizuho Corporate Bank, Ltd.
Mitsubishi UFJ Trust and Banking Corp.
Sumitomo Mitsui Trust Bank, Ltd.
The Nomura Trust and Banking Co., Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
Mizuho Corporate Bank, Ltd.
Mitsubishi UFJ Trust and Banking Corp.
Sumitomo Mitsui Trust Bank, Ltd.
The Chiba Bank, Ltd.
Mizuho Corporate Bank, Ltd.
Sumitomo Mitsui Trust Bank, Ltd.
Mitsui Sumitomo Insurance Co., Ltd.
The Bank of Fukuoka, Ltd.
Development Bank of Japan, Inc.
The Nomura Trust and Banking Co., Ltd.
The Iyo Bank, Ltd.
Resona Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
The Tokyo Tomin Bank, Lid.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
Mizuho Corporate Bank, Ltd.
Mitsubishi UFJ Trust and Banking Corp.
Sumitomo Mitsui Trust Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
Mitsubishi UFJ Trust and Banking Corp.
Mitsui Sumitomo Insurance Co., Ltd.
Daido Life Insurance Company
Shinkin Central Bank
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
Mizuho Corporate Bank, Ltd.
Mitsubishi UFJ Trust and Banking Corp.
Sumitomo Mitsui Trust Bank, Ltd.
Aozora Bank, Ltd.
Development Bank of Japan, Inc.
Development Bank of Japan, Inc.

Date
Borrowed

Sep. 29, 2008
Sep. 27, 2007
Feb. 27, 2007
Feb. 27, 2007
Aug. 26, 2011

Sep. 30, 2011

Aug. 27, 2012

Sep. 5, 2011
Feb. 26, 2010
May 15, 2007

Feb. 27, 2012

Feb. 27, 2012

Dec. 26, 2011
Dec. 26, 2011
Aug. 27, 2012

Aug. 27, 2012

Aug. 27, 2009
Feb. 26, 2010

Average
Interest Rate(%)
(Note 1)

Date of
Repayment

1.74250

Sep. 29, 2013

1.99875

Sep. 30, 2013

2.14360

Feb. 27, 20142.13625

Feb. 27, 2014

0.88417

Feb. 27, 2014

0.88417

Feb. 27, 2014

0.81917

Aug. 27, 2014

0.94700

Sep. 5, 2014

1.79200
2.23500

Feb. 26, 2015
Feb. 27, 2015

0.96365

Feb. 27, 2015

1.00900

Aug. 27, 2015

1.00000

Dec. 26, 2015

1.11700

Jun. 26, 2016

1.08500

Aug. 27, 20171.12013

Feb. 27, 2018

2.10000
2.03000(Note 2)
(Note 3)

Method of
Repayment

Use ofBorrowings

Note

Balloonpayment(Note 4)

Unsecured/
Uninsured(Note 2)
(Note 3)Note 1：The average interest rate is weighted by the balance of each borrowing as at the end of the period and rounded to the nearest fifth decimal place. As for the borrowings, which were
hedged by interest-rate swaps for the purpose of avoiding interest rate fluctuation risk, the swapped interest rates are used to calculate the weighted average of interest.
Note 2：Instalments of ¥40 million will be made on the 27th day of every 6th month starting on February 27, 2010, with the remaining payment of ¥1,080 million to be repaid on August 27,
2016.
Note 3：Instalments of ¥50 million will be made on the 26th day of every 6th month starting on August 26, 2010, with the remaining payment of ¥1,350 million to be repaid on February 26,
2017.
Note 4：The use of borrowings is to purchase property-related assets, the related miscellaneous expenses and the repayment of borrowings.

- 28 -

3. STATUS OF INVESTMENT CORPORATION BONDS
The status of investment corporation bonds issued as of November 30, 2012 is as follows.
Name of Bonds

Issue Date

Balance as of
Nov. 30, 2012(¥ mln)Balance as of
May 31, 2012(¥ mln)First Series Unsecured
Feb. 25, 2011
5,000
Investment Corporation Bonds
Second Series Unsecured
Feb. 24, 2012
5,000
Investment Corporation Bonds
Total
10,000Note 1: The uses of proceeds are to repay borrowings.
Note 2: Ranking Pari Passu among the specified investment corporation bonds.

Interest
Rate(%)

Maturity Date

5,000

1.21

Feb. 25, 2016

5,000

1.03

Feb. 24, 2017

10,000

4. STATUS OF SHORT-TERM INVESTMENT CORPORATION BONDS
Not applicable.

- 29 -

Method of
Repayment

Use ofProceeds

Note

Balloonpayment(Note 1)

(Note 2)

Trading during the 12th Fiscal Period
1. STATUS OF REAL ESTATES AND ASSET-BACKED SECURITIES TRADING
Acquisition
Type of Asset

Name of Property

TransferPrice(¥ 000)

Date

Date

(Note 1)

Beneficial Interest in
Real Estate Trust

URBAN STAGE Koganei Honcho (Note 2)

Jun. 8, 2012

Total

Book
Value
(¥000)

Price(¥000)

Gain (Loss)(¥000)

725,000

-

-

-

-

725,000

-

-

-

-

Note 1: “Acquisition Price” does not include various costs (intermediary fees, taxes and duties, etc.) required for acquisition of the property (the purchase and sale price of the real estate, etc.,
as indicated in the Transfer Agreement of Trust Beneficial Interest or Real Estate).
Note 2: After acquiring Trust Beneficial Interest, whose real estate is trust property, on the date of acquisition shown above, the Company dissolved the Trust Contract and held the property
as real estate.

2. STATUS OF OTHER ASSETS
Not applicable. In addition, the Company’s assets other than the above mentioned properties and asset-backed securities, are mostly
comprised of direct bank deposits and bank deposits in trust.

3. PRICE INVESTIGATION(1) Real Estates
Acquisition/Transfer
Acquisition/Transfer

Type of Asset

Name of Property
Date

Price (¥ 000)

Appraisal Value (¥ 000)
(Note 2)

(Note 1)

Acquisition
Real Estate(Note 3)
URBAN STAGE Koganei Honcho
Jun. 8, 2012
725,000
752,000
Note 1: “Acquisition Price” and “Transfer Price” do not include various costs (intermediary fees, taxes and duties, etc.) required for acquisition or transfer of the property (the purchase andsale price of the real estate, etc., as indicated in the Transfer Agreement of Trust Beneficial Interest or Real Estate).
Note 2: According to the revision of the Act on Investment Trusts and Investment Corporations on November 24, 2011, Specified Assets, only limited to land, buildings, or rights or assets
associated thereto as specified by Cabinet order, price investigation is not required if real-estate appraisal was conducted prior to the acquisition or transfer. Therefore, the Company
did not conduct price investigation for the relevant specified assets.
Note 3: After acquiring Trust Beneficial Interest, whose real estate is trust property, on the date of acquisition shown above, the Company dissolved the Trust Contract and held the property
as real estate.

(2) Others
With regard to the properties the Company has traded but not included in the above table “(1) Real Estate,” the price investigation procedures wereconducted by Akira Sugai C.P.A. Office subject to the requirement by Article 201 of the Investment Trust Act.
For the 12th fiscal period (from June 1, 2012 to November 30, 2012), one interest-rate swap transaction was subject to investigation. Akira Sugai C.P.A.
Office was requested to investigate the details of the relevant transaction including the name of counterparty, agreed figures, type of the financial
product or index, the trading period, and the contents of the relevant derivatives transactions. The investigation report has been received.

- 30 -

4. TRANSACTIONS WITH RELATED PARTIES AND MAJOR SHAREHOLDERS(1) Transactions
Not applicable.
(2) Fees Paid to Related Parties and Major Shareholders
Table of fees paid to related parties and major shareholders during the 12th fiscal period is as follows.
Name

of

Related Party andShareholders

Major

Amount Paid (A)(¥000)

Total Amount Paid
(B)(¥000)
51,82964,604630
600

Portion(A) / (B)(%)

200,280
25.9
Nomura Living Support Co., Ltd.
Nomura Living Support Co., Ltd.
266,350
24.3
Nomura Living Support Co., Ltd.
89,594
0.7
Nomura Real Estate Urban Net Co., Ltd.
1,422
42.2
Note: The term “related parties” refers to related parties of Asset Management Companies as stipulated by Article 123 of the Enforcement Order of the Act on Investment Trusts andInvestment Corporations and by Article 26, Paragraph 1, Item 27 of the Regulations Concerning Investment Reports of Investment Trusts and Investment Corporations, issued by theInvestment Trusts Association, Japan. The term “major shareholders” refers to major shareholders of Asset Management Companies as defined by Article 29-4, Paragraph 2 of the
Financial Instruments and Exchange Act.

Contract-out fees
Property management fees
Commission
Advertising

5. STATUS OF BUSINESS WITH THE ASSET MANAGEMENT COMPANY OVER ITS SUBSIDIARY BUSINESS
Although Nomura Real Estate Asset Management Co., Ltd., the asset management company of the Company, conducts subsidiarybusiness of Type II Financial Instruments Business, and Building Lots and Buildings Transaction Business there is no relevant matter
under this subject as of November 30, 2012.

- 31 -

Other Information
1. NOTICE
Unitholders’ Meeting
The 4th General Unitholders’ Meeting was held on July 31, 2012.
A summary of the main items approved at the General Unitholders’ Meeting are shown below.
AgendaPartial Amendment of the
Articles of Incorporation
Appointment of an Executive
Director
Appointment of a SubstituteExecutive Director
Appointment
oftwoSupervisory Directors
Appointment of a SubstituteSupervisory Director

Summary
Article of Incorporation were changed for the following reasons:·To make required amendments in conjunction with tax system revisions·Other, including addition of provisions which are necessary and revision of expressions, etc.
Mr. Masatomi Natsume was appointed Executive Director. The term shall be two years from
August 4, 2012.
Mr. Nobuyuki Hamada was appointed Substitute Executive Director.
Mr. Eitoku Aikawa and Mr. Motoharu Yokose were appointed Supervisory Directors. The term
shall be two years from August 4, 2012.
Mr. Saneaki Ichijo was appointed Substitute Supervisory Director.

2. STATUS OF BENEFICIAL INTEREST IN INVESTMENT TRUSTS ESTABLISHED BY THE COMPANY
Not applicable.

3. OTHER MATTERS
From 1 page to 32 pages of this report, the numbers of amount below unit are truncated and the numbers in percentage are rounded tounit unless otherwise mentioned specifically.

- 32 -

Financial Section

Contents
34
36
37
38
39

Balance Sheet
Statement of Income and Retained Earnings
Statement of Changes in Net Assets
Statement of Cash Flows
Notes to Financial Statements- 33 -

Balance Sheet
Thousands of Yen
As of May 31, 2012

As of November 30, 2012ASSETS
Current Assets:
Cash and bank deposits¥6,562,440¥6,478,090

28,46035,292

126

111

-

33,794

Other current assets

56,382

49,940Allowance for doubtful accounts(588)(1,047)

6,646,820

6,596,180

Land

83,755,751

83,331,639

Buildings and structures

73,679,949

73,270,591

Machinery and equipment

1,018,097

1,017,337

Tools, furniture and fixtures

90,83885,946

Construction in progress

15,072

7,054

158,559,707

157,712,567(8,572,502)(7,605,519)

149,987,205

150,107,048

Intangible assets

3,101

3,622

Security deposits

10,87910,879Long-term prepaid expenses

1,294

1,427

Deferred investment corporation bond issuance costs

54,514

61,28369,78877,211¥156,703,813¥156,780,439

Rental receivables
Income taxes refundable
Consumption taxes receivable

Total current assets

Property and Equipment, at Cost:

SubtotalLess accumulated depreciation
Net property and equipment

Investments and Other Assets:

Total investments and other assets

Total Assets

The accompanying notes to financial statements are an integral part of these statements.

- 34 -

As of November 30, 2012

Thousands of Yen
As of May 31, 2012

LIABILITIESCurrent Liabilities:
Trade accounts payable¥203,216¥222,551

Other accounts payable

305,481

263,019

13,552,000

19,790,000

168,845

182,378605

605

Accrued consumption taxes

12,165-

Rent received in advance

656,113682,095

Other current liabilities

2,375

5,330

14,900,800

21,145,978

Investment corporation bonds

10,000,000

10,000,000

Long-term debt

59,540,000

53,392,000

Security deposits from tenants

1,426,343

1,424,246

Total long-term liabilities

70,966,343

64,816,246

Total Liabilities

85,867,143

85,962,224

68,961,323

68,961,323

Retained earnings

1,875,347

1,856,892

Total surplus

1,875,347

1,859,892

Total unitholders’ equity

70,836,670

70,818,215

Total Net Assets

70,836,670

70,818,215¥156,703,813¥156,780,439

Current portion of long-term debt
Accrued expenses
Accrued income taxes

Total current liabilities

Long-term Liabilities:

NET ASSETS
Unitholders’ Equity:
Unitholders’ capital
Surplus

Total Liabilities and Net Assets
The accompanying notes to financial statements are an integral part of these statements.

- 35 -

Statement of Income and Retained Earnings
Thousands of Yen
For the period
from June 1, 2012
to November 30, 2012

For the period
from December 1, 2011
to May 31, 2012

Operating Revenues and Expenses
Operating Revenues:
Real estate rental revenues
Gain on sales of real estate
Operating Expenses:
Real estate rental expenses
Asset management fees
Asset custody fee
Administrative service fees
Provision of allowance for doubtful accounts
Bad debts expenses
Other operating expenses

Operating Profit¥5,174,636¥5,241,740

-

8,376

5,174,636

5,250,116

2,131,898

2,188,737

379,006

365,311

14,96913,513

26,701

23,635

161

200

200
168,948108
151,545

2,721,883

2,743,049

2,452,753

2,507,067

Non-Operating Revenues and Expenses
Non-Operating Revenues:
Interest income
Income from casualty insurance for property
Reversal of dividends payable
Other non-operating revenues
Non-Operating Expenses:
Interest expense
Loan arrangement fees
Interest expense on investment corporation bonds
Amortization of investment corporation bond issuance costs
Investment units issuance costs
Other non-operating expenses

629

555

3,135

5,647

864

1,159

106

225

4,734

7,586

477,314518,259

36,80665,26455,70944,157

7,270

6,026

-

20,906

3,894

2,497

580,993

657,109

Ordinary Income

1,876,494

1,857,544

Income before Income Taxes

1,876,494

1,857,544

1,167
57

605
97

1,875,270

1,856,842

77

50¥1,875,347¥1,856,892

Income Taxes:
Current
Deferred
Net Income
Retained earnings brought forward
Retained Earnings at End of Period
The accompanying notes to financial statements are an integral part of these statements.

- 36 -

Statement of Changes in Net Assets
For the period from June 1, 2012 to November 30, 2012
Thousands of Yen

Unitholders’CapitalUnits

Unitholders’ Equity
SurplusRetained
Earnings

Total Unitholders’EquityTotal Surplus

Total
Net Assets

Balance as of May 31, 2012

150,936¥ 68,961,323¥1,856,892¥1,856,892¥70,818,215¥70,818,215

Cash distribution paid--

(1,856,815)(1,856,815)(1,856,815)(1,856,815)

Net income--

1,875,270

1,875,270

1,875,270

1,875,270

150,936¥ 68,961,323¥1,875,347¥1,875,347¥70,836,670¥70,836,670

Balance as of November 30, 2012

For the period from December 1, 2011 to May 31, 2012
Thousands of Yen
Unitholders’CapitalUnits

Unitholders’ Equity
SurplusRetained
Earnings

Total Unitholders’EquityTotal Surplus

Total
Net Assets

Balance as of November 30, 2011

125,535¥61,799,485¥1,477,598¥1,477,598¥63,277,083¥63,277,083

Issuance of investment units

25,401

7,161,838--

7,161,838

7,161,838

Cash distribution paid--

(1,477,548)(1,477,548)(1,477,548)(1,477,548)

Net income--

1,856,842

1,856,842

1,856,842

1,856,842

150,936¥68,961,323¥1,856,892¥1,856,892¥70,818,215¥70,818,215

Balance as of May 31, 2012

The accompanying notes to financial statements are an integral part of these statements.

- 37 -

Statement of Cash Flows
Thousands of Yen
For the period
from December 1, 2011
to May 31, 2012

For the period
from June 1, 2012
to November 30, 2012

Cash Flows
Cash Flows from Operating Activities
Income before income taxes
Depreciation
Investment units issuance costs
Amortization of investment corporation bonds issuance costs(Decrease) in provision for loss on disaster¥ 1,876,494¥1,857,544

967,547

963,023-

20,906

7,270

6,026

-

(8,500)Interest income

(629)

(555)

Interest expense

533,023

562,416

Increase (Decrease) in allowance for doubtful accounts

(459)

(844)

Decrease (Increase) in rental receivables

6,832(1,951)

Decrease (Increase) in consumption taxes receivable

33,794(24,424)

Decrease (Increase) in prepaid expenses(8,359)

9,523

Increase (Decrease) in trade accounts payable(19,334)(25,727)

Increase (Decrease) in other accounts payable

40,414

4,274

Increase (Decrease) in accrued consumption taxes

12,165-

Increase (Decrease) in rent received in advance(25,982)

76,343(5)

275,534
5,685

3,422,771

3,719,273

Decrease in tangible fixed assets in trust due to sales
Other
SubtotalInterest received

629

555

(546,556)(630,718)(1,181)(1,678)2,875,663

3,087,432

Payments for purchases of property and equipment(844,690)(16,137,881)

Reimbursement of security deposits to tenants(134,852)(198,062)

Proceeds from security deposits from tenants

136,949

350,227(842,593)(15,985,716)

Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

Cash Flows from Investing Activities

Net cash provided by (used in) investing activities

Cash Flows from Financing Activities
Proceeds from short-term debt

800,000

9,600,000

Repayment of short-term debt

(800,000)(9,600,000)

Proceeds from long-term debt

12,510,000

29,200,000

Repayment of long-term debt

(12,600,000)-(25,234,000)(501)(36,348)

Proceeds from issuance of investment units-

7,161,838

Payments of investment units issuance costs-(20,906)(1,858,219)(1,948,720)(1,480,624)
14,589,960

84,3501,691,676

Redemption of investment corporation bonds
Payments of investment corporation bonds issuance costs

Distributions to unitholders
Net cash provided by (used in) financing activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period
Cash and Cash Equivalents at End of Period
The accompanying notes to financial statements are an integral part of these statements.

- 38 -

5,000,000

6,478,090

4,786,414¥6,562,440¥6,478,090

Notes to Financial Statements
1. ORGANIZATION
Nomura Real Estate Residential Fund, Inc. (the “Company”) is a real estate investment corporation formed to own and invest primarily inresidential rental properties. The Company is externally managed by a licensed asset management company, Nomura Real Estate AssetManagement Co., Ltd. (“NREAM”). NREAM is a wholly-owned subsidiary of Nomura Real Estate Holdings, Inc.
On August 3, 2006, the Company was incorporated under the Act on Investment Trusts and Investment Corporations (the “Investment Trust Act”)
of Japan. On February 14, 2007, the Company was listed on the Tokyo Stock Exchange as the 41th J-REIT and started operations on thefollowing day. As of November 30, 2012, the Company owned a portfolio of 153 residential rental properties containing an aggregate of
approximately 262,881.53 square meters of leasable area and leased space to 153 tenants.

2. BASIS OF PRESENTATIONThe Company maintains its accounting records and prepares its financial statements in accordance with accounting principles generally acceptedin Japan (“Japanese GAAP”), including provisions set forth in the Investment Trust Act of Japan, the Companies Act of Japan, the Financial
Instruments and Exchange Act of Japan and related regulations, which are different in certain respects as to the application and disclosure
requirements of International Financial Reporting Standards.
The accompanying financial statements are a translation of the audited financial statements of the Company, which were prepared inaccordance with Japanese GAAP and were presented in the Securities Report of the Company filed with the Kanto Local Finance Bureau. In
preparing the accompanying financial statements, certain reclassifications and modifications have been made to the financial statements issued
domestically in order to present them in a format that is more familiar to readers outside Japan. In addition, the notes to financial statements
include certain information that might not be required under Japanese GAAP but is presented herein as additional information. Amounts havebeen rounded to the nearest thousand of yen in the accompanying financial statements and the notes thereto, whereas amounts were truncated in
the Japanese financial statements prepared in accordance with Japanese GAAP.
The Company’s fiscal period is a six-month period which ends at the end of May or November. The Company does not prepare
consolidated financial statements because it has no subsidiaries.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESCash and cash equivalents
Cash and cash equivalents consist of cash on hand, deposits placed with banks and short-term investments that are highly liquid, readily
convertible to cash, with an insignificant risk of market value fluctuation, and with a maturity of three months or less when purchased.
Property and equipment
Property and equipment are stated at cost, which includes the purchase price and related costs for acquisition, less accumulated depreciation.
Depreciation is calculated by the straight-line method over the estimated useful lives of the fixed assets outlined below:
Buildings
3 - 70 years
Structures
2 - 50 years
Machinery and equipment
3 - 15 years
Tools, furniture and fixtures
3 - 15 years
Intangible assets
Intangible assets are amortized by the straight-line method.
Long-term prepaid expenses
Long-term prepaid expenses are amortized by the straight-line method.
Impairment of fixed assets
The Company reviews fixed assets for impairment whenever events or changes in circumstances indicate that the carrying value of its fixed assets
may not be recoverable. An impairment loss is recognized if the carrying value of an asset exceeds the aggregate estimated future cash flows. If a
fixed asset is determined to be impaired, it is written down to its recoverable amount and the write-down is recorded as an impairment loss during
the period in which it occurs. No impairment losses have been recognized to date.
Deferred investment corporation bond issuance costs
Deferred investment corporation bond issuance costs are amortized by the straight-line method over the respective terms of the bonds.
Allowance for doubtful accounts
For allowance for doubtful accounts against possible losses arising from default on receivables,uncollectable amount is estimated and recorded byinvestigating collectability based on historical loan loss ratios for general receivables and on a case-by-case examination for doubtful and otherspecific receivables.
Accounting treatment of beneficial interests in real estate
All assets and liabilities held in trust, for which the real estate in possession of the Company was entrusted, and all related earnings and expenses
incurred are reflected in the accompanying balance sheet and statement of income and retained earnings, respectively.
Revenue recognition
Operating revenues consist of rental revenues including base rents and common area charges, and other operating revenues including utility
charge reimbursements, parking space rental revenues and other income. Rental revenues are generally recognized on an accrual basis over the- 39 -

life of each lease. Utility charge reimbursements are recognized when earned and their amounts are reasonably estimated.
Property related taxes
Property in Japan is subject to property taxes, urban planning taxes and depreciable property taxes on a calendar year basis. The taxes related toproperty are generally imposed based on the value of the relevant property and incurred for fiscal period.
The seller of a property is liable for property related taxes for the period from the purchase date through the end of that calendar year
because taxes are imposed on the owner registered in the record as of January 1 for the entire year based on the assessment made by the local
government. The amount applicable to the buyer of a property is usually settled between each party and capitalized as part of the acquisition costof the property. The capitalized property related taxes amounted to ¥1,816 thousand for the six-month period ended November 30, 2012 and¥7,270 thousand for the six-month period ended May 31, 2012.
Income taxes
Deferred tax assets and liabilities are computed based on the differences between the financial statements and income tax bases of assets andliabilities using the applicable statutory tax rates.
Consumption taxes
Consumption taxes received and paid are not included in the accompanying statement of income and retained earnings.
Derivative financial instruments
The Company utilizes interest-rate swap contracts as derivative financial instruments only for the purpose of hedging its exposure to changes ininterest rates. The Company defers recognition of gains or losses resulting from changes in the fair value of interest-rate swap contracts whichmeet the criteria for deferral hedge accounting.
Although the deferred hedge treatment is generally applied, the Company applies special treatment to those interest-rate swap contracts thatmeet the criteria for such special treatment. Under the special treatment, interest-rate swaps are not remeasured at fair value; instead, the net
amount paid or received under the interest rate swap contract is recognized and included in interest expense or income.

4. CASH AND CASH EQUIVALENTS
Cash and cash equivalents as of November 30, 2012 and May 31, 2012 consist of the following:Thousands of Yen
As of November 30, 2012

As of May 31, 2012

Cash and bank deposits¥6,562,440¥6,478,090

Cash and cash equivalents¥6,562,440¥6,478,090

5. SCHEDULE OF PROPERTY AND EQUIPMENT
Property and equipment as of November 30, 2012 and May 31, 2012 consist of the following:Thousands of Yen
As of November 30, 2012
Acquisition costs
Land

As of May 31, 2012

Book value¥ 55,094,496

Acquisition costs

Book value¥55,094,496¥ 52,982,175

52,248,937(4,818,565)

740,747(174,351)(30,903)38,840(25,021)38,70815,072

15,072

7,054

7,054

Land in trust

28,661,255

28,661,255

30,349,464

30,349,464

Buildings and structures in trust

15,704,894

Buildings and structures
Accumulated depreciation
Machinery and equipment
Accumulated depreciation
Tools, furniture and fixtures
Accumulated depreciation
Construction in progress

Accumulated depreciation
Machinery and equipment in trust

57,975,055(5,726,118)

56,542,250

946,587(205,840)

51,723,685

945,324

69,743(2,569,647)¥ 52,982,175

770,973

63,72916,728,341
13,135,247

71,510(2,549,706)

14,178,635

72,013

Accumulated depreciation(31,369)

Tools, furniture and fixtures in trust

21,095

Accumulated depreciation(8,625)

12,470(8,998)13,219----¥149,987,205¥149,987,205¥150,107,048¥150,107,048

Construction in progress in trust
Total

40,141(28,878)

43,13522,217- 40 -

6. SHORT-TERM DEBT
Short-term debt as of November 30, 2012 and May 31, 2012 consist of the following:
As of May 31, 2012

As of November 30, 2012
Amount(Thousands of Yen)

Amount(Thousands of Yen)

Weighted-averageinterest rate

Weighted-averageinterest rate
(Note 1)

(Note 1)

Unsecured loans from insurance companies due on August 27, 2012--

¥2,200,000

1.81375%

Unsecured loans from banks due on August 27, 2012--

2,600,000

1.49300%

Unsecured loans from a bank due on August 27, 2012--

1,720,000

1.25071%

Unsecured loans from banks due on August 27, 2012--

5,990,000

0.67000%

Unsecured loans from banks due on December 3, 2012

¥1,600,000

1.51625%

1,600,000

1.51625%

Unsecured loans principally from banks due on May 23, 2013

5,500,000

1.83625%5,500,000

1.83625%

Unsecured loans from banks due on September 29, 2013

5,472,000

1.74250%--

Unsecured loans from an insurance company due on September 30, 2013

800,000

1.99875%--

Unsecured loans from a bank due on August 27, 2016 (Note 2)

80,0002.10000%

80,0002.10000%

2.03000%

100,000

2.03000%

Unsecured loans from a bank due on February 26, 2017 (Note 3)
Total

100,000¥19,790,000¥13,552,000

Note1: The weighted-average interest rate is weighted by the balance of each borrowing at the end of the period and rounded to the nearest fifth decimal place. As
for the borrowings, which were hedged by interest-rate swaps for the purpose of avoiding interest rate fluctuation risk, the swapped interest rates are used to
calculate the weighted average of interest.
Note2: Installments of ¥40 million will be made on the 27th day of every sixth month starting on February 27, 2010, with the remaining payment of ¥1,080 million
to be repaid on August 27, 2016.
Note3: Installments of ¥50 million will be made on the 26th day of every sixth month starting on August 26, 2010, with the remaining payment of ¥1,350 million to
be repaid on February 26, 2017.

7. LONG-TERM DEBT
Long-term debt as of November 30, 2012 and May 31, 2012 consist of the following:
As of May 31, 2012

As of November 30, 2012
Amount(Thousands of Yen)

Amount(Thousands of Yen)

Weighted-averageinterest rate

Weighted-averageinterest rate
(Note 1)

(Note 1)

Unsecured loans from banks due on September 29, 2013-

Unsecured loans from an insurance company due on September 30, 2013-

¥5,472,000

1.74250%--

800,000

1.99875%

Unsecured loans from banks due on February 27, 2014

¥2,000,000

2.14360%

2,000,000

2.14360%

Unsecured loans from an insurance company due on February 27, 2014

2,000,000

2.13625%2,000,000

2.13625%

Unsecured loans from banks due on February 27, 2014

1,700,000

0.88417%1,700,000

0.90115%

Unsecured loans from banks due on February 27, 2014

3,500,000

0.88417%3,500,000

0.90115%

Unsecured loans from banks due on August 27, 2014

3,170,000

0.81917%--

Unsecured loans principally from banks due on September 5, 2014

3,400,000

0.94700%

3,400,000

0.94700%

Unsecured loans from a bank due on February 26, 2015

1,000,000

1.79200%

1,000,000

1.79200%

Unsecured loans from a bank due on February 27, 2015

1,300,000

2.23500%

1,300,000

2.23500%

Unsecured loans from banks due on February 27, 2015

5,400,000

0.96365%

5,400,000

0.96365%

Unsecured loans from banks due on August 27, 2015

9,700,000

1.00900%

9,700,000

1.00900%

Unsecured loans from a bank due on December 26, 2015

4,700,000

1.00000%

4,700,000

1.00000%

Unsecured loans from banks due on June 26, 2016

9,400,000

1.11700%

9,400,000

1.11700%

Unsecured loans principally from insurance companies due on August27, 2017
Unsecured loans from banks due on February 27, 2018

3,920,000

1.08500%--

5,420,000

1.12013%--

Unsecured loans from a bank due on August 27, 2016 (Note 2)

1,280,000

2.10000%

1,320,000

2.10000%

Unsecured loans from a bank due on February 26, 2017 (Note 3)

1,650,000

2.03000%

1,700,000

2.03000%

Total¥59,540,000¥53,392,000

Note1: The weighted-average interest rate is weighted by the balance of each borrowing at the end of the period and rounded to the nearest fifth decimal place. As
for the borrowings, which were hedged by interest-rate swaps for the purpose of avoiding interest rate fluctuation risk, the swapped interest rates are used to
calculate the weighted average of interest.
Note2: Installments of ¥40 million will be made on the 27th day of every sixth month starting on February 27, 2010, with the remaining payment of ¥1,080 million
to be repaid on August 27, 2016.

- 41 -

Note3: Installments of ¥50 million will be made on the 26th day of every sixth month starting on August 26, 2010, with the remaining payment of ¥1,350 million to
be repaid on February 26, 2017.

The scheduled repayment amounts of long-term debt for each of the five years after the balance sheet date (excluding the current portion of
long-term debt) are as follows.

Long-term debt

1-2 years
15,950,000

2-3 years
17,580,000

3-4 years
15,320,000

Thousands of Yen
4-5 years
5,270,000

8. INVESTMENT CORPORATION BONDS
Details of investment corporation bonds outstanding are summarized as follows:
As of May 31, 2012

As of November 30, 2012
AmountWeighted- average(Thousands of Yen)
interest rate
First series of unsecured investment corporation bonds
Due on February 25, 2016
Second series of unsecured investment corporation bonds
Due on February 24, 2017
Total

Amount(Thousands of Yen)

Weighted- averageinterest rate

¥5,000,000

1.21000%¥5,000,000

1.21000%

5,000,000

1.03000%

5,000,000

1.03000%¥10,000,000¥10,000,000

The scheduled redemption amounts of investment corporation bonds for each of the five years after the balance sheet date are as follows.

Investment corporation bonds

Within a year－

1-2 years－

2-3 years－

3-4 years
5,000,000

Thousands of Yen
4-5 years
5,000,000

9. UNITHOLDERS’ EQUITYThe Company issues only non-par value investment units in accordance with the Investment Trust Act. The entire amount of the issue price of
new units is designated as stated capital. The Company is required to maintain net assets of at least ¥50,000 thousand as set forth in theInvestment Trust Act.

10. PER UNIT INFORMATIONThe net asset values per unit and the net income per unit as of November 30, 2012 and May 31, 2012 were as follows:

Net asset values per unit
Net income per unit

For the period
from June 1, 2012
to November 30, 2012
¥469,315¥12,424

For the period
from December 1, 2011
to May 31, 2012
¥469,193¥12,317

The net income per unit is calculated by dividing net income by the weighted-average number of units outstanding for the respective six-month
period.
Note: The basis for calculating net income per unit is as follows.

Net income (Thousands of Yen)
Amount not available to ordinary unitholders (Thousands of Yen)
Net income available to ordinary unitholders (Thousands of Yen)
Average number of units during the period

For the period
from June 1, 2012
to November 30, 2012
¥1,875,270¥1,875,270
150,936- 42 -For the period
from December 1, 2011
to May 31, 2012
¥1,856,842¥1,856,842
150,752

11. RELATED PARTY TRANSACTIONS
For the periods from June 1, 2012 to November 30, 2012 and from December 1, 2011 to May 31, 2012
Parent Company and major corporate unitholders
Not applicable from June 1, 2012 to November 30, 2012
For the six-month periods from December 1, 2011 to May 31, 2012 were as follows:

Category

Major corporate
unitholders

Name ofcompany orindividual

Address

Nomura Real
EstateDevelopment
Co.,Ltd

Shinjuku-ku
Tokyo

Paid incapital orBusiness
investment
description or(Thousands ofoccupation
Yen)

2,000,000

Real estatebusiness

Voting rights
holding ratio(％)

Nature oftransaction

Held throughPurchase of real
direct ownership
estate (Note2)
10.10

Transaction
amount(Thousands of
Yen)(Note1)

7,340,000

Balance at end of period

Account

Amount(Thousands of
Yen)

－

－

Note1: Consumption taxes are not included,in the transaction amount.
Note2: Terms and conditions of transaction are decided after price negotiation based on the actual influence of the market.

Subsidiaries and affiliates
Not applicable
Fellow subsidiary companies
Not applicable
Directors and major individual unitholders
Not applicable

12. INCOME TAXESThe Company, as an investment corporation, is subject to corporate income taxes at a statutory tax rate of approximately 40% for the six-month
periods ended November 30, 2012 and May 31, 2012. However, the Company may deduct dividend distributions paid to its unitholders from its
taxable income amounts, provided such distributions meet the requirements under the Act on Special Measures Concerning Taxation of Japan.
Under this act, an investment corporation must meet a number of tax requirements, including a requirement to distribute in excess of 90% of its
distributable income for the fiscal period, in order to deduct such amounts. If the investment corporation does not satisfy all of the requirements,
the entire taxable income of the investment corporation will be subject to regular corporate income taxes.
Since the Company distributed in excess of 90% of its distributable income in the form of cash distributions totaling ¥1,875,229 thousandand ¥1,856,815 thousand for the six-month periods ended November 30, 2012 and, May 31,2012, respectively, such distributions were treated as
deductible distributions for purposes of corporate income taxes. The following summarizes the significant differences between the statutory tax
rate and the effective tax rate:
For the period
For the period
from December 1, 2011
from June 1, 2012
to May 31, 2012
to November 30, 2012
Statutory tax rate
39.33%
36.59%
Deductible cash distributions(39.31)(36.56)
Other
0.02
0.04
Effective tax rate
0.04%
0.07%

13. FINANCIAL INSTRUMENTS
Overview(1) Policy for Financial Instruments
Upon acquisition of property-related assets, the Company may raise funds through certain financing methods including borrowings, issuance ofinvestment corporation bonds and issuance of investment units. In financing through interest-bearing debt, to secure stable financing capability
and reduce future risks of rising interest rates, the Company’s investment policy is to secure longer-term, fixed-rate borrowings withwell-diversified maturities.
The Company enters into derivative transactions only for the purpose of reducing risk of future interest rate fluctuations and does not engage
in speculative transactions.
(2) Type and Risk of Financial Instruments and Related Risk Management
Debts and investment corporation bonds are primarily used to fund the acquisition of property-related assets as well as the repayment of debts andredemption of investment corporation bonds. The Company is exposed to liquidity risk of being unable to meet its obligations on scheduled due
dates. The Company controls and limits such risk by diversifying not only the financial institutions, but also the type of financing to include theeffective use of surplus funds and direct financing from the capital markets such as issuance of investment units. In addition, the Company is
exposed to the market risk arising from fluctuations in interest rates on its floating-rate debts. However, the effect of such risk on the operation of
the Company is limited by maintaining the LTV ratio at low levels and the ratio of long-term fixed-rate debts to total debt at high levels.
Furthermore, the Company may utilize derivative transactions (interest-rate swap transactions) as a hedging instrument to reduce the market risk
under floating-rate debts by swapping such floating-rate interest payments for fixed-rate interest payments.
Bank deposits are held as a means of investing surplus funds, and the Company is exposed to the credit risk that financial institutions may- 43 -

default. However, the effect of such risk is limited by diversifying the financial institutions with which surplus funds are deposited.
(3) Supplementary Explanation on Estimated Fair Value of Financial Instruments
The fair value of financial instruments is based on the quoted market price, if applicable. When there is no quoted market price available, fairvalue is reasonably estimated. Certain assumptions are used for the estimation of fair value. Accordingly, the result of such estimation may
change if different assumptions are used. Furthermore, the contractual amounts of derivative transactions stated in “19. Derivatives and Hedge
Accounting” below do not represent the market risk involved in these derivative transactions.
Fair Value of Financial Instruments
For the period from June 1, 2012 to November 30, 2012
The following table summarizes the carrying value and the estimated fair values of financial instruments as of November 30, 2012.
Thousands of Yen

( i )
(ii)
(iii)
(iv)
(v)

Carrying value(Note 1)¥6,562,440(13,552,000)(10,000,000)(59,540,000)－

Cash and bank deposits
Current portion of long-term debt
Investment corporation bonds
Long-term debt
Derivative transactions

Fair value(Note 1)¥6,562,440(13,634,080)(10,136,900)(60,049,377)－

Difference－¥82,080
136,900
509,377－

For the period from December 1, 2011 to May 31, 2012
The following table summarizes the carrying value and the estimated fair values of financial instruments as of May 31, 2012.
Thousands of Yen

( i )
(ii)
(iii)
(iv)
(v)

Carrying value(Note 1)¥6,478,090(19,790,000)(10,000,000)(53,392,000)－

Cash and bank deposits
Current portion of long-term debt
Investment corporation bonds
Long-term debt
Derivative transactions

Fair value(Note 1)¥6,478,090(19,859,607)(10,076,510)(53,807,155)－

Difference－¥69,607
76,510415,155－

Note1: The numbers in parenthesis indicate liabilities.
Note2: Method for determining the fair value of financial instruments and derivative transactions(i) Cash and bank deposits
As these items are settled within a short-term period, their fair value is nearly equal to the carrying value. Therefore, for these items, the carrying value isreported as the fair value.
(ii) Current portion of long-term debt and (iv) Long-term debt
For floating-rate long-term debt, the carrying value is reported as it is considered to be approximately equal to the fair value because such debt reflects
the market interest rates within a short-term period. (However, the fair value of certain floating-rate long-term debt that qualifies for the special treatment
of interest-rate swaps (see “19. Derivatives and Hedge Accounting”) is determined by discounting the sum of its principal and interest payments net ofany cash flows from the interest-rate swap at a rate reasonably estimated to be applicable to similar fixed-rate debt.) The fair value of fixed-ratelong-term debt is determined by discounting the sum of its principal and interest payments at a rate reasonably estimated to be applicable to similar
fixed-rate debt.
(iii) Investment corporation bonds
The fair value of investment corporation bonds issued by the Company is determined based on their market prices.
(v) Derivative transactions
See “19. Derivatives and Hedge Accounting”.
Note3: Redemption schedule for cash and bank deposits as of November 30, 2012
Thousands of Yen

Cash and bank deposits
Total

Due within one
year¥6,562,440

After one year,
within two years－

After two years,
within three years－

After three years,
within four years－

After four years,
within five years－¥6,562,440

－

－

－

－

Due within one
year¥6,478,090

After one year,
within two years－

After two years,
within three years－

After three years,
within four years－

After four years,
within five years－¥6,478,090

－

－

－

－

After five years－－

Redemption schedule for cash and bank deposits as of May 31, 2012
Thousands of Yen

Cash and bank deposits
Total- 44 -

After five years－－

Note4: Redemption schedule for investment corporation bonds and debt as of November 30, 2012
Thousands of Yen
Due within one
year

After one year,
within two years

After two years,
within three years

After three years,
within four years

After four years,
within five years

After five years

Current portion of long-term debt
Investment corporation bonds¥13,552,000
－

－
－

－
－

－
¥5,000,000－¥5,000,000－－

Long-term debt
Total－
¥13,552,000¥15,950,000¥15,950,000¥17,580,000¥17,580,000

15,320,000¥20,320,000

5,270,000¥10,270,000¥5,420,000¥5,420,000

Redemption schedule for investment corporation bonds and debt as of May 31, 2012
Thousands of Yen
Due within one
year

After one year,
within two years

After two years,
within three years

After three years,
within four years

After four years,
within five years

After five years

Current portion of long-term debt
Investment corporation bonds¥19,790,000
－

－
－

－
－

－
¥5,000,000－¥5,000,000－－

Long-term debt
Total－
¥19,790,000¥15,652,000¥15,652,000¥11,280,000¥11,280,000

14,580,000¥19,580,000

11,880,000¥16,880,000－－

14. INVESTMENT AND RENTAL PROPERTIESThe Company owns in its portfolio certain residential buildings (including land) for lease located in Tokyo and other areas. The following tablesummarizes the carrying value and the estimated fair value of these properties.
For the period
from June 1, 2012
to November 30, 2012

Thousands of Yen
For the period
from December 1, 2011
to May 31, 2012

Carrying value
Balance at beginning of the period¥150,107,048¥135,213,149

Change during the period(119,843)

14,893,899

Balance at end of the period

149,987,205

150,107,048

Fair value¥141,836,000¥141,011,000
Note1: The carrying value represents the acquisition cost less accumulated depreciation.
Note2: The major increase in the carrying value during the period ended November 30, 2012 was mainly due to the acquisition of URBAN STAGE Koganei
Honcho (¥759,517 thousand), and the major decrease in the carrying value during the period ended November 30, 2012 was a result of posting ofdepreciation . The major increase in the carrying value during the period ended May 31, 2012 was mainly due to the acquisitions of PROUD FLAT
Fujimidai (¥1,431,102 thousand), PROUD FLAT Tsurumi II (¥1,492,690 thousand), URBAN STAGE Machiya South Court (¥1,816,726 thousand),
URBAN STAGE Kumegawa (¥1,444,769 thousand), PROUD FLAT Shin Osaka (¥1,509,384 thousand), URBAN STAGE Sapporo Riverfront (¥3,769,768
thousand), URBAN STAGE Kita Sanjo Dori (¥1,552,193 thousand), and URBAN STAGE Izumi (¥3,045,925 thousand), and the major decrease in the
carrying value during the period ended May 31, 2012 was mainly due to the sale of URBAN STAGE Minami Urawa (¥275,534 thousand).
Note3: The fair value as of November 30, 2012 and May 31, 2012 represents the sum of the appraisal values estimated by external real estate appraisers.

The real estate rental revenues and expenses for the six-month period ended November 30, 2012 and May 31,2012 are presented in “16.
Breakdown of Real Estate Rental Revenues and Expenses.”

15. SEGMENT INFORMATION
For the period from June 1, 2012 to November 30, 2012 and from December 1, 2011 to May 31, 2012
Segment Information
Since the Company has been engaged in the real estate leasing business as a single segment, segment information has been omitted.
Related Information
1. Information about products and services
Since revenues from external customers of products and services within a single segment are more than 90 percent of total operating revenues,
information about products and services has been omitted.
2. Information about geographical areas(1) Revenues
Since more than 90 percent of the total operating revenues were generated from external customers in Japan, geographical breakdown ofrevenues has been omitted.
(2) Property and equipment
Since more than 90 percent of the total property and equipment on the balance sheet are located in Japan, geographical breakdown ofproperty and equipment has been omitted.

- 45 -

3. Information about major clients
Information about major clients for the six-month period ended November 30, 2012 and May 31, 2012 were as follows:
For the six-month the period from June 1, 2012 to November 30, 2012
Name of client
Haseko Livenet Inc.
Nomura Living Support Co., Ltd.

Revenues(Thousands of yen)
¥1,319,972
1,253,005

Related segment
Real estate leasing business
Real estate leasing business

For the six-month the period from December 1, 2011 to May 31, 2011
Name of client
Haseko Livenet Inc.
Nomura Living Support Co., Ltd.
Tokyu Community Corp .

Revenues(Thousands of yen)
¥1,309,364
1,042,940
638,067

Related segment
Real estate leasing business
Real estate leasing business
Real estate leasing business

16. BREAKDOWN OF REAL ESTATE RENTAL REVENUES AND EXPENSES
Real estate rental revenues and expenses for the six-month period ended November 30, 2012 and May 31, 2012 consist of the following:Thousands of Yen
For the period
from June 1, 2012
to November 30, 2012
Real estate rental revenues

For the period
from December 1, 2011
to May 31, 2012

¥5,174,636¥5,241,740

4,833,156

4,834,854

4,567,410

4,569,911

265,746

264,943

Other rental revenues

341,480

406,886

Parking revenues

134,998

137,119

Incidental income

148,722202,519

Other miscellaneous revenues

57,76067,2482,131,898

2,188,737

Property management costs

200,280

199,881

Property management fees

266,350

283,053

Property and other taxes

256,024

233,822

Utility expenses

79,09885,301

Casualty insurance

8,744

8,763

Repairs and maintenance

178,147

224,630

Depreciation

967,547

963,023

Rental revenues
Rental revenues
Common area charges

Real estate rental expenses

Other rental expenses
Real estate rental profits

175,708

190,264¥3,042,738¥3,053,003

17. BREAKDOWN OF GAIN AND LOSS ON SALES OF REAL ESTATE
Gain on sales of real estate for the six-month period ended November 30, 2012 and May 31, 2012 consist of the following:Thousands of Yen
For the period
from June 1, 2012
to November 30, 2012

For the period
from December 1, 2011
to May 31, 2012

Gain on sales of real estate
Proceeds from sales of real estate-¥293,443

Cost of sales of real estate-

275,534

Other related sales expenses

-

9,533

Gain on sales of real estate-¥8,376

18. LEASESThe Company, as a lessor, enters into lease agreements for which fixed monthly rents are due in advance with a lease term of generally two years
for residencial space. The future minimum rental revenues under existing non-cancelable operating lease agreements as of November 30, 2012 andMay 31, 2012 are summarized as follows:
As of November 30, 2012
Due within one year
Due after one year
Total

¥452,796
28,277¥481,073- 46 -

Thousands of Yen
As of May 31, 2012
¥438,603
1,183¥439,786

19. DERIVATIVES AND HEDGE ACCOUNTING
Derivative transactions as of November 30, 2012
(1) There were no derivative financial instruments not subject to hedge accounting.
(2) Derivative financial instruments subject to hedge accounting were as follows:
Thousands of Yen
Notional amount

Hedge accounting
methodType of derivative
instruments

Main hedged item

Special treatment ofinterest-rate swaps

Interest-rate swaps:
Received/floating
and paid/fixedLong-term debt

Due after one year
44,992,000

37,920,000

Fair value

Method used for
determining fair value(*)* Since the derivative financial instruments qualifying for the special treatment of interest-rate swaps are accounted for as one transaction together
with their hedged item, long-term debt, the fair value of these derivatives is included in that of related long-term debt (see “13. Financial
Instruments (Note2) (ii) Current portion of long-term debt and (iv) Long-term debt”).
Derivative transactions as of May 31, 2012
(1) There were no derivative financial instruments not subject to hedge accounting.
(2) Derivative financial instruments subject to hedge accounting were as follows:
Thousands of Yen
Notional amount

Hedge accounting
methodType of derivative
instruments

Main hedged item

Special treatment ofinterest-rate swaps

Interest-rate swaps:
Received/floating
and paid/fixedLong-term debt

Due after one year
40,572,000

36,372,000

Fair value

Method used for
determining fair value(*)* Since the derivative financial instruments qualifying for the special treatment of interest-rate swaps are accounted for as one transaction together
with their hedged item, long-term debt, the fair value of these derivatives is included in that of related long-term debt (see “13. Financial
Instruments (Note2) (ii) Current portion of long-term debt and (iv) Long-term debt”).

20. SIGNIFICANT SUBSEQUENT EVENTSTransfer of a property
On January 31, 2013, the Company entered into a sale and purchase agreement regarding the transfer of the property stated below and on February
26, 2013, completed the transfer. Consumption taxes and adjustments of property taxes are excluded from the transfer price.
URBAN STAGE Toritsu Daigaku
Type of Assets: Real estate
Date of Agreement: January 31, 2013
Transfer Date
: February 26, 2013
Transfer Price: ¥564 million
Transferee: An individual
Impact on Revenues: Approximately ¥8million (miscellaneous expenses excluded) of gain on sales of real estate will be recorded for the 13th
fiscal period (from December 1, 2012 to May 31, 2013).

- 47 -

Independent Auditor’s Report- 48 -

Business Structure
Asset Custodian

General Administration(Financial Agent)

The FundGeneral Administration

Financial Agent
Agreement

Administration ofUnitholders Register

Theof
The Bank
Bank ofTokyo-Mitsubishi UFJ, Ltd.
Tokyo-Mitsubishi UFJ, Ltd.

Management ofSpecial Accounts

Asset Custody
Agreement

Mitsubishi UFJ
Trust and Banking Corporation

Sumitomo Mitsui
Banking Corporation

Administration
Agreement, etc.

General Administration(Accounting, etc.)

Nomura Real Estate Residential Fund, Inc.
Accounting Service
Agreement

Unitholders Meeting

Heiseikaikeisha Tax
Corporation

Board of Directors Meeting
Financial Institutions, etc.
AuditorErnst & Young ShinNihon LLC

Repaymentof Principal& Interest

Debt
Finance
Debt

Investment

Rent, etc.

Select the best property
management companies
for each property

Distribution
Property Management
Agreement

Property
Management

Trade

Unitholders

EquityResidential Properties(Real Estate Related Assets)

Property Management
Companies

CapitalInvestment

Asset

Unitholders

Instructions for
Rent &
Management

Asset Management
Services Agreement
Information & ResearchService Providers

Asset Management Company
Property
Information

Rental Strategies,
Plans for
Repairs, etc.

Nomura Real Estate
Development Co., Ltd.
Nomura Real Estate
Urban Net Co., Ltd.

Corporate Data
Corporate Name
Nomura Real Estate Residential Fund, Inc.
Corporate Office8-5-1 Nishi Shinjuku Shinjuku-ku, Tokyo
160-0023, Japan
http://www.nre-rf.co.jp/english/
Date of Incorporation
August 3, 2006
Stock Listing
Tokyo Stock Exchange (Securities Code: 3240)
Fiscal Period
Six months ending on May 31 and November 30
Capital¥68,961,322,596 (as of November 30, 2012)
Number of Units Issued
150,936 (as of November 30, 2012)

Transfer Agent
Mitsubishi UFJ Trust and Banking Corporation
1-4-5 Marunouchi Chiyoda-ku, Tokyo 100-8212, Japan
Business Office of the Transfer Agent
Corporate Agency Department
Mitsubishi UFJ Trust and Banking Corporation
7-10-11 Higashisuna Koto-ku, Tokyo 137-8081, Japan
Tel: +81-3-5683-5111
Independent Auditors
Ernst & Young ShinNihon LLC
Hibiya Kokusai Bldg. 2-2-3 Uchisaiwai-cho Chiyoda-ku,
Tokyo 100-0011, Japan
Investor Relations
For further information, please contact the Asset Management
Company:
Nomura Real Estate Asset Management Co., Ltd.
8-5-1 Nishi Shinjuku, Shinjuku-ku, Tokyo 160-0023, Japan
Tel: +81-3-3365-0507

Number of Unitholders
9,446(as of November 30, 2012)- 49 -

Nomura Real Estate Residential Fund’s Website
The Company strives to provide accurate and timely disclosure of information by utilizing the website.
・ Strength of NRF, Asset Management Policies, Corporate Profile
・ Portfolio Summary, Portfolio Data, Occupancy Rates.
・ News, Latest Data, Performance, Distributions, Calendar
We continue to provide information timely and strive to enhance the contents of the website.

（URL） http://www.nre-rf.co.jp/english/

Posting the news by year and subject

Posting summaries, maps, occupancy
rates, etc, of the portfollio

Posting the latest occupancy rates

Disclaimer
This semiannual report includes translations of certain Japanese documents originally filed under the Financial Instruments and Exchange Act
of Japan. This report was prepared in English solely for the convenience of and reference by readers outside Japan and should not be
considered as a disclosure statement. The original Japanese documents always govern the meaning and interpretation.
In general, accounting principles and practices used by real estate investment corporations in Japan (“J-REITs”) in preparing its
financial statements conform with accounting principles generally accepted in Japan (“Japanese GAAP”). However, they may differ fromgenerally accepted accounting principles applied in certain other countries. Potential investors should consult their own professional advisors
for an understanding of the differences between Japanese GAAP and generally accepted accounting principles in the United States (“U.S.
GAAP”) or other jurisdictions and how those differences might affect the financial information contained herein.
This document has been prepared for the purpose of provision of information only, and should not be construed as an offer,solicitation or commercial conduct of any nature associated with any specific products. Investors wishing to purchase the investment units of
Nomura Real Estate Residential Fund, Inc. should contact their own securities brokers or dealers. A fee may be charged by your financial
instruments business operator in relation to the sale or purchase of investment units.
Although the information contained in this document is intended to be complete and thorough, there is no assurance of precision and safety ofthe same. Please note that the contents of this 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 of the information contained in this document
without express prior written consent.

- 50 -