Semi-Annual Report
16th fiscal period
June 1, 2014 >>> November 30, 2014

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

2
3
5
6
35
51
52

1－2－
-1-

To Our Investors
On behalf of Nomura Real Estate Residential Fund, Inc. (the Company), I would like to express our gratitude for yourcontinuing trust and patronage.
With the Company having closed the accounts for the 16th fiscal period ending November 30, 2014, allow me to present an
overview of the management status and financial results.
Continuing forward from previous fiscal periods, the 16th fiscal period saw further promotion of the property replacement
strategy to enhance portfolio profitability and quality. This included the transfer of three properties amounting to 958 million
yen (sum total of transfer prices) that were expected to show decreased competitiveness as maintenance costs increased due toaging and other factors. As a result, assets at the end of the 16th fiscal period (as of November 30, 2014) totaled 150 properties
amounting to 159,310 million yen (sum total of acquisition prices). In addition, in December 2014, just after the 16th fiscal
period ended, we acquired three properties amounting to 6,300 million yen (sum total of acquisition prices).
In terms of portfolio property management, we continued strategic leasing activities that were appropriate to the conditionsof each property, including the completion of the leasing procedures for major vacancies created during the previous period.
Some properties whose rents are expected to increase were renovated as a part of aggressive lease management. Leasing
activities based on property characteristics enabled us to post a 96.2% portfolio occupancy rate at the end of the 16th fiscal
period, an occupancy rate consistent with the high rate that we have maintained since the previous period. The end-of-period
appraised value reached 156,590 million yen, which exceeded the amount calculated in the balance sheet by 563 million yen to
produce unrealized gains.
Concerning financial activities, we refinanced 3.7 billion yen of 6.6 billion yen in outstanding debt whose repayment hadcome due, and settled 2.9 billion yen in cash.
As a result of management activities, we achieved operating revenue of 5,480 million yen, ordinary income of 1,878
million yen, and net income of 1,877 million yen for the fiscal period.
gains through the transfer of properties as a reserve for reduction entry, and declared a cash distribution per unit of 11,600
yen, in accordance with Article 66-2 of the Act on Special Measure Concerning Taxation (Special Provisions for Taxation in theCase of Advanced Acquisition of Land, etc. in 2009 and 2010).
We remain committed to stable management through a medium- to long-term perspective in and after the next fiscal period.
We ask our investors for their continued support and encouragement.

Shozo Matsumura
Executive Director
Nomura Real Estate Residential Fund, Inc.

1－3－
-2-

Summary of Portfolio Properties
#
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
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 Azabu Juban
PRIM E URBAN Akasaka
PRIM E URBAN Tamachi
PRIM E URBAN Shibaura LOFT
PRIM E URBAN Hatagaya
PRIM E URBAN Yoyogi
PRIM E URBAN Ebisu Ⅱ
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 M eguro Aobadai
PRIM E URBAN Gakugei DaigakuⅡ
PRIM E URBAN Kachidoki
PRIM E URBAN Shinkawa
PRIM E URBAN Nihonbashi Yokoyamacho
PRIM E URBAN Nihonbashi Hamacho
PRIM E URBAN Hongo Ikizaka
PRIM E URBAN Hakusan
PRIM E URBAN Yotsuya Gaien Higashi
PRIM E URBAN Naka Ochiai
PRIM E URBAN Ochiai
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 Shinjuku Ochiai
PRIM E URBAN M ejiro
PRIM E URBAN Kagurazaka
PRIM E URBAN Roka Koen
PRIM E URBAN Kamiuma
PRIM E URBAN Sangen JayaⅢ
PRIM E URBAN Chitose Karasuyama
PRIM E URBAN Sangen Jaya II
PRIM E URBAN Karasuyama
PRIM E URBAN Sangen Jaya
PRIM E URBAN M inami Karasuyama
PRIM E URBAN Karasuyama Galleria
PRIM E URBAN Karasuyama Court
PRIM E URBAN Kamikitazawa
PRIM E URBAN Chitose Funabashi
PRIM E URBAN Yoga
PRIM E URBAN Shinagawa Nishi
PRIM E URBAN Oimachi
PRIM E URBAN Osaki
PRIM E URBAN Oimachi II
PRIM E URBAN Yukigaya
PRIM E URBAN Omori
PRIM E URBAN Denenchofu M inami
PRIM E URBAN Nakano
PRIM E URBAN Nakano Kamitakada
PRIM E URBAN Takaido
PRIM E URBAN Nishi Ogikubo
PRIM E URBAN Otsuka
PRIM E URBAN Komagome
PRIM E URBAN Ikebukuro
PRIM E URBAN M onzen Nakacho
PRIM E URBAN Kameido
PRIM E URBAN Sumiyoshi
PRIM E URBAN M ukojima
PRIM E URBAN Kinshi Koen
PRIM E URBAN Kinshicho
PRIM E URBAN Hirai

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
M inato-ku, Tokyo
M inato-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-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
M eguro-ku, Tokyo
M eguro-ku, Tokyo
Chuo-ku, Tokyo
Chuo-ku, Tokyo
Chuo-ku, Tokyo
Chuo-ku, Tokyo
Bunkyo-ku, Tokyo
Bunkyo-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-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
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
Shinagawa-ku, Tokyo
Shinagawa-ku, Tokyo
Ota-ku, Tokyo
Ota-ku, Tokyo
Ota-ku, Tokyo
Nakano-ku, Tokyo
Nakano-ku, Tokyo
Suginami-ku, Tokyo
Suginami-ku, Tokyo
Toshima-ku, Tokyo
Toshima-ku, Tokyo
Toshima-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Koto-ku, Tokyo
Sumida-ku, Tokyo
Sumida-ku, Tokyo
Sumida-ku, Tokyo
Edogawa-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
991,000
956,000
941,000
1,510,000
452,000
408,000
1,030,000
1,170,000
707,000
2,030,000
1,200,000
1,320,000
886,000
536,000
464,000
3,580,000
1,190,000
916,000
2,290,000
2,250,000
3,530,000
1,470,000
647,000
893,000
1,700,000
655,000
324,000
1,290,000
1,000,000
512,000
503,000
635,000
1,260,000
2,640,000
362,000
900,000
755,000
730,000
539,000
344,000
835,000
840,000
645,000
413,000
738,000
885,000
1,150,000
624,000
530,000
1,700,000
1,100,000
970,000
824,000
900,000
472,000
640,000
1,080,000
435,000
794,000
412,000
3,310,000
2,200,000
705,000
552,000
487,000
1,180,000
668,000
700,000

1－4－-3-Percentage
of Total (%)

Leasable Floor Area
(sqm)
2.2
0.7
0.5
0.5
0.5
0.6
1.4
1.0
0.7
0.6
0.8
0.7
1.9
0.4
0.6
0.4
0.7
0.9
1.2
1.5
1.7
0.9
0.6
0.6
0.6
0.9
0.3
0.3
0.6
0.7
0.4
1.3
0.8
0.8
0.6
0.3
0.3
2.2
0.7
0.6
1.4
1.4
2.2
0.9
0.4
0.6
1.1
0.4
0.2
0.8
0.6
0.3
0.3
0.4
0.8
1.7
0.2
0.6
0.5
0.5
0.3
0.2
0.5
0.5
0.4
0.3
0.5
0.6
0.7
0.4
0.3
1.1
0.7
0.6
0.5
0.6
0.3
0.4
0.7
0.3
0.5
0.3
2.1
1.4
0.4
0.3
0.3
0.7
0.4
0.4

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
1,222.13
1,062.05
1,107.36
1,905.39
650.60439.56
1,184.85
1,277.04
793.872,087.70
1,444.40
1,302.42
1,008.39
655.27453.772,955.74
1,464.14
1,109.87
4,524.00
3,600.61
5,926.17
2,026.44
662.581,069.82
1,759.11
1,237.98
517.53
1,459.86
1,162.55
578.18507.11
1,053.39
1,755.52
2,853.82
567.201,739.86
1,018.72
1,774.01
810.98507.52874.15
1,049.73
835.05576.201,384.45
1,027.44
1,773.05
961.25722.702,106.16
1,794.85
1,536.59
1,190.70
1,100.17
801.30818.75
1,746.20
543.09944.99991.94
4,376.95
3,207.92
1,117.34
813.52
1,108.91
1,886.50
991.62
1,095.91

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
40
25
48
68
38
19
35
52
32
90
29
49
32
22
24
99
40
41
145
46
124
52
27
42
51
18
32
60
46
14
28
28
65
100
34
37
47
27
17
28
33
41
33
23
29
38
54
46
45
99
93
94
54
44
51
33
107
24
46
22
131
118
52
40
55
77
49
53

Occupancy Rate
(Nov. 2014)(%)
92.6
97.9
100.0
96.7
95.2
100.0
97.8
97.5
91.7
97.1
94.3
95.8
97.5
100.0
100.0
100.0
96.3
100.0
99.0
95.4
100.0
95.2
93.2
90.0
100.0
91.2
94.6
100.0
100.0
96.0
93.8
96.8
92.8
91.8
90.9
93.7
91.5
97.4
97.7
95.7
97.2
98.3
99.2
91.2
100.0
100.0
98.2
94.6
90.9
100.0
93.9
86.1
57.1
96.1
95.3
95.7
94.2
100.0
100.0
97.3
78.8
86.3
97.1
97.6
94.0
95.7
86.5
97.6
97.6
97.9
95.6
99.0
96.4
94.7
98.1
96.1
92.9
97.5
89.9
88.1
100.0
90.5
96.2
98.3
96.1
94.9
94.6
98.7
100.0
94.3

#

Name of Property

Location

91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113

PRIM E URBAN Kasai
PRIM E URBAN Kasai II
PRIM E URBAN Kasai East
PRIM E URBAN Ekoda
PRIM E URBAN Itabashi Kuyakushomae
PRIM E URBAN Asakusa
PRIM E URBAN M achiya South Court
PRIM E URBAN M usashi Koganei
PRIM E URBAN M usashino Hills
PRIM E URBAN Koganei Honcho
PRIM E URBAN Hino
PRIM E URBAN Kumegawa
PRIM E URBAN M usashi Kosugi comodo
PRIM E URBAN Kawasaki
PRIM E URBAN Shinyurigaoka
PRIM E URBAN Tsurumi Teraya
PRIM E URBAN Urayasu II
PRIM E URBAN Urayasu
PRIM E URBAN Gyotoku I
PRIM E URBAN M inami Gyotoku III
PRIM E URBAN Gyotoku II
PRIM E URBAN Gyotoku Ekimae
PRIM E URBAN Gyotoku EkimaeⅡ

Edogawa-ku, Tokyo
Edogawa-ku, Tokyo
Edogawa-ku, Tokyo
Nerima-ku, Tokyo
Itabashi-ku, Tokyo
Taito-ku, Tokyo
Arakawa-ku, Tokyo
Koganei-shi, Tokyo
Koganei-shi, Tokyo
Koganei-shi, Tokyo
Hino-shi, Tokyo
Higashimurayama-shi, Tokyo
Kawasaki-shi, Kanagawa
Kawasaki-shi, Kanagawa
Kawasaki-shi, Kanagawa
Yokohama-shi, Kanagawa
Urayasu-shi, Chiba
Urayasu-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba
Ichikawa-shi, Chiba

114

PRIM E URBAN GyotokuⅢ

Ichikawa-shi, Chiba

115
116

PRIM E URBAN Nishi Funabashi
PRIM E URBAN Kawaguchi
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 Sapporo Riverfront
PRIM E URBAN Kita Sanjo DoriPRIM E URBAN Nagamachi Icchome
PRIM E URBAN Yaotome Chuo
PRIM E URBAN Tsutsumidori Amamiya
PRIM E URBAN Aoi
PRIM E URBAN Kanayama
PRIM E URBAN Tsurumai
PRIM E URBAN Kamimaezu
PRIM E URBAN Izumi
PRIM E URBAN Esaka I
PRIM E URBAN Esaka II
PRIM E URBAN Esaka III
PRIM E URBAN Tamatsukuri
PRIM E URBAN Sakaisuji Honmachi
PRIM E URBAN Hakata
PRIM E URBAN Yakuin M inami
PRIM E URBAN Kashii
PRIM E URBAN Hakata Higashi
PRIM E URBAN Chihaya
Other Areas
Total

Funabashi-shi, Chiba
Kawaguchi-shi, Saitama

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

Acquisition Price(thousands of yen)
637,000
958,000
940,000
385,000
940,000
350,000
1,740,000
2,390,000
1,590,000
725,000
319,000
1,370,000
2,150,000
1,150,000
1,210,000
457,000
277,000
840,000
635,000
263,000
741,000
476,000
561,000

Percentage ofTotal (%)
0.4
0.6
0.6
0.2
0.6
0.2
1.1
1.5
1.0
0.5
0.2
0.9
1.3
0.7
0.8
0.3
0.2
0.5
0.4
0.2
0.5
0.3
0.4

Leasable Floor Area(sqm)
905.81
1,437.84
1,884.62
872.491,742.64
876.704,141.56
5,999.80
2,961.06
1,604.72
994.682,610.05
3,692.44
1,706.46
1,708.19
952.06437.94
1,264.84
1,151.36
542.691,244.00
778.19927.33

Leasable Units(units)
45
68
78
35
68
22
77
98
80
43
54
91
56
80
64
50
27
60
52
33
58
37
46

948,000

0.6

1,766.47

77

88.3

772,000
2,170,000
128,903,000
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
3,500,000
1,450,000
1,110,000
428,000
969,000
724,000
632,000
1,189,096
1,250,000
2,800,000
672,000
790,000
1,535,000
906,000
1,780,000
830,000
351,000
396,000
693,000
545,000
30,407,696
159,310,696

0.5
1.4
80.9
0.4
0.5
0.9
0.2
0.2
0.3
0.2
0.4
0.4
0.3
0.2
0.2
0.3
0.5
2.2
0.9
0.7
0.3
0.6
0.5
0.4
0.7
0.8
1.8
0.4
0.5
1.0
0.6
1.1
0.5
0.2
0.2
0.4
0.3
19.1
100.0

1,237.80
2,477.11
183,396.22
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
15,552.59
5,094.29
3,411.24
1,380.21
4,251.91
1,571.04
1,391.02
2,502.11
3,541.43
7,543.10
1,189.12
1,392.00
2,151.67
2,373.10
3,909.90
2,176.23
897.84
1,222.34
1,854.13
1,740.70
89,231.30
272,627.52

60
98
6,596
60
64
112
33
36
53
36
60
54
36
42
27
36
58
311
114
60
43
65
46
58
104
101
250
48
57
79
80
82
67
34
39
65
48
2,458
9,054

100.0
100.0
96.2
100.0
95.7
98.3
100.0
84.9
100.0
100.0
100.0
96.2
96.8
95.2
100.0
100.0
96.8
96.7
99.0
98.0
100.0
98.2
98.1
100.0
97.1
96.2
96.4
83.4
91.4
90.6
91.3
94.8
92.3
93.1
88.4
95.7
94.1
96.3
96.2

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
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sendai-shi, M iyagi
Sendai-shi, M iyagi
Sendai-shi, M iyagi
Nagoya-shi, Aichi
Nagoya-shi, Aichi
Nagoya-shi, Aichi
Nagoya-shi, Aichi
Nagoya-shi, Aichi
Suita-shi, Osaka
Suita-shi, Osaka
Suita-shi, Osaka
Osaka-shi, Osaka
Osaka-shi, Osaka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka

1－5－
-4-

Occupancy Rate
(Nov. 2014)(%)
100.0
97.1
100.0
100.0
94.9
95.4
97.7
94.9
95.1
86.9
98.1
95.7
98.4
96.9
100.0
92.0
100.0
96.7
88.5
100.0
100.0
91.9
97.8

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 November 30, 2014)
Shareholder : Nomura Real Estate Holdings, Inc. (100%)
Incorporation : January 24, 2003

Statutory Auditors

Corporate Planning
Legal & ComplianceInternal Audit
Accounting
Discretionary Investment Management Section

Investment Performance Analysis Section

President & CEO

Board of Directors

General Meeting of Shareholders

Board of Statutory Auditors

・Organization of the asset management company

Finance
Client Relations & Marketing
Investment Management

Research & Analysis Section

Chief Strategy Officer

Project Screening Committee

NPR Valuation Committee

Risk Management Committee

Compliance Committee

Investment Committee

Product Management
Acquisitions
Investment Management Planning
NOF Investment Management
NRF Investment Management
NMF Investment Management
NPR Investment Management

・Profile of General Manager , NRF Investment Management

Tetsuya Ohira
Apr. 1989
Jul. 1989
Dec. 1992
Jun. 2003
Apr. 2004
Apr. 2007
Apr. 2011
Oct. 2014

Entered Nomura Real Estate Development Co., Ltd.
Yokohama Business Park Department
Osaka Office
Residential Sales Section, Residential Sales Department, Residential Company
Development Section, Second Business Development Department, Residential Company
Development Section, Investment Development Department, Residential Company
Development Manager, Investment Development Department, Residential Company
Executive Officer, Head of NRF Investment Management Department

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 16th fiscal period
Other Information

7
13
15
25
26
29
33

-6-

Asset Management Report
1. CHANGES IN KEY INDICATORS
16th Period
from Jun. 1, 2014
to Nov. 30, 2014

15th Period
from Dec. 1, 2013
to May 31, 2014

14th Period
from Jun. 1, 2013
to Nov. 30, 2013

13th Period
from Dec. 1, 2012
to May 31, 2013

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

Operating Revenues(¥mln)

5,480

5,594

5,406

5,257

5,174

of which Real Estate Rental Revenues(¥mln)

5,427

5,556

5,356

5,238

5,174

Operating Expenses(¥mln)

3,057

3,080

2,848

2,823

2,721

of which Real Estate Rental Expenses(¥mln)

2,353

2,453

2,250

2,252

2,131

Operating Profit(¥mln)

2,423

2,513

2,558

2,433

2,452

Ordinary Income(¥mln)

1,878

1,956

1,966

1,878

1,876

Net Income(¥mln)

1,877

1,955

1,965

1,876

1,875

Total Assets(¥mln)

164,852

167,940

168,019

156,576

156,703(Changes from Previous Period)(%)（-1.8）（-0.0）（＋7.3）（-0.1）（- 0.0）Interest-Bearing Debts(¥mln)

86,82089,75089,84083,002

83,092

Net Assets(¥mln)

75,14875,22675,236

70,83870,836(Changes from Previous Period)(%)（-0.1）（-0.0）（＋6.2）（＋0.0）（＋0.0）

Unitholders’ Capital(¥mln)

73,231

73,231

73,231

68,961

68,961

Number of Units Issued(Units)160,800

160,800

160,800

150,936

150,936

Net Assets per Unit(¥)

467,340

467,827

467,887

469,326

469,315

Total Cash Distribution(¥mln)

1,865

1,955

1,965

1,836

1,875

Cash Distribution per Unit(¥)

11,60012,161

12,221

12,17012,424of which Cash Distribution of Profits(¥)

11,60012,161

12,221

12,17012,424of which Cash Distribution in excess of Profits

(¥)

－

－

－

－

－

ROA (Return on Assets) (Note 1)

(%)

1.1

1.2

1.2

1.2

1.2

Annualized ROA (Note 2)

(%)

2.3

2.3

2.4

2.4

2.4

ROE (Return on Equity) (Note 3)

(%)

2.5

2.6

2.7

2.6

2.6

Annualized ROE (Note 2)

(%)

5.0

5.2

5.4

5.3

5.3

Capital Adequacy Ratio (Note 4)

(%)

45.6

44.8

44.8

45.2

45.2

(%)

（＋0.8）（＋0.0）（-0.5）（＋0.0）（＋0.0）LTV (Loan-to-Value) (Note 5)

(%)

52.7

53.4

53.5

53.0

53.0

Number of Operating Days

(days)

183

182

183

182

183

Payout Ratio (Note 6)

(%)

99.3

99.9

100.0

97.8

99.9

Number of Properties Held(bldgs)

150

153

155

152

153

Total Leasable Floor Space(㎡)

272,627.52

274,346.62

277,166.54

262,961.11

262,881.53(Changes from Previous Period)

Number of Tenants(tenants)

150

153

155

152

153

Occupancy Rate

(%)

96.2

95.8

96.2

96.4

96.2

Depreciation(¥mln)

1,052

1,053

1,012

967

968

Capital Expenditures(¥mln)

136

95

94

138

40

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

4,126

4,156

4,118

3,953

4,010

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

2,929

2,979

2,934

2,833

2,850

FFO per Unit (Note 9)(¥)

18,21818,52818,251

18,773

18,886Note 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 14th 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. 12th Period: 183 days, 13th Period: 182 days, 14th Period: 183 days, 15th Period: 182 days
and 16 th 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 14th 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 15TH FISCAL PERIOD
Nomura Real Estate Residential Fund was incorporated on August 3, 2006 under the Act on Investment Trusts andInvestment Corporations of Japan, and listed Investment Securities that represent the units of investment equity of theCompany 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 carryout 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
The Japanese economy during the fiscal period experienced temporary downturns in manufacture as demand sankfollowing a spike ahead of the scheduled hike in the consumption tax. According to Bank of Japan’s October 2014
Short-term Economic Survey of Enterprises in Japan (Tankan), the business conditions DI for all enterprises and allindustries deteriorated 3 points from the previous survey. On the other hand, however, capital investment is in an
increasing trend with improved domestic company profits, and the environment for employment and income has been in
an improving trend, which support the gradual recovery of the Japanese economy. There is a need to consider risk factorsthat may have a negative impact on the economy, including the deterioration of consumer sentiment and slowdown inoverseas economies; however, modest upward momentum is expected to continue as the effects of the government’s fiscal
policy and Bank of Japan’s bold monetary easing ripple across the real economy.
Under such circumstances, domestic and foreign investment capital has flowed into the J-REIT market backed by the
expectation for the recovery of the Japanese economy and real estate market. Further, since Bank of Japan decided toprovide additional monetary easing in October 2014 and to again purchase J-REITs, the Tokyo Stock Exchange REIT
Index increased from 1,533.19 at the beginning of the fiscal period (as of June 2, 2014) to 1,826.72 at the end of the fiscal
period (as of November 28, 2014). Backed by such a favorable funding environment, J-REITs are actively acquiringproperties along with new listings and the issuance of new investment units through public offerings.
In the rental housing market, continued stable demand is anticipated from single and small households due in part tothe continuing inflow of population to the Greater Tokyo Area (Tokyo, Kanagawa, Chiba and Saitama prefectures) andmajor regional cities as well as such factors as the trend for later marriage and declining birth rates. In addition, in termsof supply, rental housing construction starts remain low, implying that the balance of supply and demand for rental
housing will remain favorable for some time. Under such circumstances, the occupancy rate for rental housing held by
J-REITs has been hovering at an average level exceeding 96% since July 2011. Concerning rent levels, too, properties
with increasing rents have been observed. These, among other factors, suggest that the rental housing market is in arecovery trend.
In the real estate transaction market, property acquisitions were active, centering on J-REITs, other real estate funds,
and real estate companies, due in part to a favorable domestic funding conditions due to monetary easing, and signs ofrecovery in the lease market. On the other hand, competition over acquisitions is overheating due in part to an increase inparticipants. The supply of rental housing is still limited, which has created a severe environment for the acquisition ofproperties.
In the management environment described above, the Company made the following management achievements in the
16th fiscal period (ended November 2014).

-8-

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

Acquisition Strategy

PROUD FLAT

Strategic Cooperation with Nomura Real Estate Development

Properties planned/developmentby Nomura Real Estate Development（Note:1）

The strategic cooperation with Nomura Real Estate Development enables
the Fund to undertake the development and acquisition of PROUD FLAT,a residential 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 it to the full extent.

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

Properties planned/developed by companies
other than Nomura Real Estate
Development

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

（Note:2）
Note:1: Hereinafter, Nomura Real Estate Development refers to Nomura Real Estate Development Co., Ltd. Nomura Real Estate Group refers to a corporate group consistingof the consolidated subsidiaries of Nomura Real Estate Holdings, Inc. (hereinafter referred to as “Nomura Real Estate Holdings”) including Nomura Real Estate
Development (hereinafter referred to as “NRED”) but excluding Nomura Real Estate Asset Management Co., Ltd., to which the Company assigns asset managementrelated operations.Age of buildings above means that of the relevant property at the time of acquisition by the Company.
Note 2: In terms of the properties planned and developed by other companies, we have used “PRIME URBAN” and “URBAN STAGE” as brand names according to building
age at the time of acquisition. However, we began unifying under the name “PRIME URBAN” from May 20, 2014 in an attempt to further enhance property
recognition in the rental housing market along with “PROUD FLAT.” In this fiscal period, we completed unification of 30 properties under the “PRIME URBAN”
name.

As in previous fiscal periods, the Company continued to implement its strategy for property replacement in the
16th fiscal period to enhance portfolio profitability and quality, transferring three properties totaling 958 million yen(sum total of transfer prices) that were expected to show decreased competitiveness and increased maintenance costs
due to age and other factors.
As a result of the above, assets at the end of the 16th fiscal period (as of November 30, 2014) totaled 150
properties amounting to 159,310 million yen (sum total of acquisition prices).

-9-

(b) Property Management
The small number of tenant replacements in the 16th fiscal period allowed us to focus on maintaining the highoccupancy rates that have continued from the 15th fiscal period in properties that we own.
In leasing, the Company worked to maintain and enhance property competitiveness through renovations as well
as by raising unit rents through a flexible review of advertized terms and conditions in light of the status of respective
properties. In addition, the Company endeavored, as it has in previous fiscal periods, to shorten vacancy through more
effective control of the time required to restore units to their original state. These and other efforts allowed theCompany to post a portfolio occupancy rate of 96.2% at the end of the 16th fiscal period, an occupancy rate consistent
with the high rate that we have maintained since the previous period.
Nomura Real Estate Partners, which the Company entrusts with the management and operation of 115
properties (as of the end of November 30, 2014), provides a wide variety of tenant services through “Chintai Hot
Support,” which features a 24-hour call center for unit equipment trouble and other emergencies, as well as travel,leisure and other special benefits, which the Company believes serve to enhance tenant satisfaction and property
competitiveness.
In this fiscal period, the Company conducted a survey of tenants. This led to improved services and property
renovations that further increased competitiveness.
Furthermore, as mentioned above, unification of property names to increase the recognition of portfolio
properties, a process that began May 20, 2014, has been completed.
In this way the Company is continuing its efforts to maintain and improve occupancy rates, rent levels, andtenant satisfaction by meeting market needs.
(c) Status of Funding
In order to assure stable income and the steady growth of portfolio assets over the medium-to-long term, theCompany initiated the conservative financial strategies described below in the 16th fiscal period.
In the 16th fiscal period, the Company prepaid outstanding loans of 1,840 million yen, and repaid 1,090 million
yen of loans that had come due. The refinancing of 3,730 million yen in existing loans was achieved through thesecuring of long-term loans, and the interest rates for 2,980 million yen in loans were fixed to enhance financial
stability and address the risk of rising interest rates.
As a result, the ratio of long-term debt is 79.8%, the ratio of fixed interest debt (including fixation throughinterest rate swap transactions) is 99.1%, the average maturity of the outstanding interest-bearing debt is 3.11 years(the average maturity of the outstanding long-term interest-bearing debt is 3.76 years). In the end, the rate ofinterest-bearing debt in the total assets, which is the loan-to-value (LTV) ratio, becomes 52.7%.
The table below shows the credit ratings of the Company as of the end of the 16th fiscal period.
Rating Company
Japan Credit Rating Agency, Ltd

Standard & Poor’s Ratings Services.

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-mentioned strategies during the 16th fiscal period, the Company recorded 5,480 million
yen in operating revenue, 2,423 million yen in operating profit, 1,878 million yen in ordinary income, and 1,877
million yen in net income.
Concerning the cash distribution, in accordance with Article 67-15-1 of the Act on Special Measures Concerning
Taxation (Act No.26 of 1957) and Article 66-2 of said Act (Special Provisions for Taxation in the Case of Advanced
Acquisition of Land, etc. in 2009 and 2010), the Company decided to retain a part of capital gains received through thetransfer of properties as a reserve for reduction entry within a range that would not generate taxable income. In order
to include the maximum amount of distributed profits as loss, the Company decided to distribute virtually all
unappropriated retained earnings from this fiscal period after deducting the reserve for reduction entry. As a result, theamount of cash distribution per unit for this fiscal period was 11,600 yen.
Although the forecast of financial results for the 16th fiscal period (ending November 30, 2014) stated in thesummary of financial statements issued on July 15, 2014 was based on the assumption of a reduced reserve for
reduction entry of 40 million yen in the 16th fiscal period, the Company decided not to reduce said reserve inconsideration of the financial results for the 16th fiscal period after the announcement of said forecast. In regard to
reduction of the reserve for reduction entry including the amount reserved during the 16th fiscal period, we willconsider the management and distribution status and make appropriate decisions in the future.

- 10 -

3. STATUS OF CAPITAL
Changes in the number of units issued and unitholders’ Capital until the end of the 16th fiscal period (as of November
30, 2014) 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
Aug.26, 2013

Third-party allotment (Note 10)
Public offering (Note 11)

1,772
9,306

150,936
160,242

499
4,028

68,961
72,989Sep.25, 2013

Third-party allotment (Note 12)558
160,800
241
73,231
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 and repayment 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 and repayment 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.
Note11: Additional investment units were issued at 448,500 yen per unit (subscription price: 432,860 yen) in a public offering, for the purpose of financing acquisition of new
properties.
Note12: In conjunction with the public offering on August 26, 2013, investment units were allocated to Nomura Securities Co., Ltd., at 432,860 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

(¥)

16th Period
from Jun. 1, 2014
to Nov. 30, 2014
672,000

Low(¥)

535,000

15th Period
from Dec. 1, 2013
to May 31, 2014
581,000

14th Period
from Jun. 1, 2013
to Nov. 30, 2013
572,000

13th Period
from Dec. 1, 2012
to May 31, 2013
670,000

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

504,000

439,000

439,000

372,000

4. CASH DISTRIBUTION
Concerning cash distributions in the 16th fiscal period, by applying special provisions of the tax system (Article
67-15 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957)), along with utilizing the “Special
Provisions for Taxation in the Event of Advance Acquisition of Land, etc. in 2009 and 2010” under Article 66-2 of the Act
on Special Measures Concerning Taxation, the Company decided that an amount of a portion of the gain on transfer ofland, etc. earned in a transfer of property shall be set aside as a reserve for reduction entry within the limit that taxable
income will not be generated in the fiscal period. In addition, in order to have the maximum amount of distributions ofearnings included in deductible expenses, the Company decided to distribute almost the entire amount of unappropriatedretained earnings after deduction of the reserve for reduction entry. As a result, the Company declared a cash distribution
per unit of investment equity of 11,600 yen.
15th Period
from Dec. 1, 2013
to May 31, 2014
1,955,587

14th Period
from Jun. 1, 2013
to Nov. 30, 2013
1,965,201

13th Period
from Dec. 1, 2012
to May 31, 2013
1,876,958

12th Period
from Jun. 1, 2012
to Nov. 30, 2012
1,875,347

Retained Earnings(¥000)

16th Period
from Jun. 1, 2014
to Nov. 30, 2014
1,877,325

Accumulated earnings
Total cash distribution(¥000)(¥000)

12,045
1,865,280

98
1,955,488

64
1,965,136

40,067
1,836,891

118
1,875,228(Cash distribution per unit)of which distribution of profits(¥)(¥000)(11,600)
1,865,280(12,161)
1,955,488(12,221)1,965,136(12,170)
1,836,891(12,424)
1,875,228(¥)(11,600)(12,161)(12,221)(12,170)(12,424)(¥000)
(¥)

(-)

(-)

(-)

(-)

(-)

(Distribution of profits per unit)of which refund of capital(Refund of capital per unit)- 11 -

5. INVESTMENT POLICY AND FUTURE ISSUESAs described earlier in “2. OUTLINE OF INVESTMENTS IN THE 16TH FISCAL PERIOD,” the Japanese economy
is indicating trends of a gradual economic recovery amidst progressive improvements in the employment and income
environments. In addition, investment capital is flowing into the J-REIT market and the environment for fundprocurement is excellent.
In such a business environment, the Company will aim to secure stable revenues and steady growth of portfolio assets
over the medium to long term by conducting management that makes the most of the Company’s strengths.
(a) Property Acquisition
The Company has set 300 billion yen in total assets as the goal of the size of its assets in the future. The Company willcontinue striving to make selective investments by utilizing its strong sourcing channels to obtain information on
prime properties at an early stage, while taking into consideration the financial composition. By doing so, theCompany intends to promote the building of a portfolio that generates stable revenues over the medium to long term,
as it works to further diversify the portfolio while keeping its portfolio assets well-balanced in terms of building age,etc.
(b) Property Replacement
The Company will continue to implement property replacement in the portfolio for the purpose of enhancing portfolio
quality as well as stabilizing and increasing revenues over the medium to long term. Upon conducting replacement, theCompany will use the funds obtained from selling properties in the portfolio to acquire new properties so that it canmaintain its conservative financial strategy.
(c) Property Management
The Company will continue working to maintain and enhance revenues by promoting property management in an
integrated manner with the PM companies and establishing appropriate leasing strategies for each property, while
endeavoring to reduce costs at its investment properties as much as possible. By doing so, the Company aims tomaximize performance of the portfolio.
The Company will work to maintain and enhance the competitiveness and profitability of its investment properties byconsidering and implementing various measures for enhancing the occupancy rates and cash flows through grasping
the characteristics of each investment property and analyzing market needs, among other things, as well as byimplementing large-scale repairs and remodeling works in a timely and appropriate manner.
(d) Fund Procurement
The Company will continue to establish an appropriate financial base by properly controlling the risk of interest rate
fluctuations through fixing interest rates and lengthening loan periods, as well as distributing repayment dates,
diversifying lending institutions and fund procurement means, and procuring funds in unsecured and unguaranteedloans. In addition, the Company will continue to pursue a well-balanced composition of its interest-bearing debt byconsidering and selecting the optimum fund procurement means from among a range of options, while closely
monitoring financial market trends.

6. IMPORTANT EVENTS SUBSEQUENT TO THE 16TH FISCAL PERIOD
Not applicable.

(Reference)
The Company acquired the following assets after the end of the 16th fiscal period (end of November 2014).
Leasable units
Name of Property

Acquisition Price(thousandsof yen)

Location(units)Date ofCompletion

PRIME URBAN Naka Meguro II

Meguro-ku, Tokyo66

2,800,000

Dec. 19 2014

PRIME URBAN Nagahara Kamiikedai

Ota-ku, Tokyo61

1,720,000

Dec. 19 2014

PRIME URBAN Nishi Ogikubo II

Suginami-ku, Tokyo

76

1,780,000

Dec. 19 2014

203

6,300,000

Total- 12 -

Profile of the Company
1. STATUS OF UNITHOLDERS’ CAPITAL
16th Period(as of Nov. 30, 2014)

15th Period(as of May 31, 2014)

14th Period(as of Nov. 30, 2013)

13th Period(as of May 31, 2013)

12th Period(as of Nov. 30, 2012)(Unit)

2,000,000

2,000,000

2,000,000

2,000,000

2,000,000

Number of units issued(Unit)

160,800

160,800

160,800

150,936

150,936

Amount of unitholders’ capital(¥ mln)73,231

73,231

73,231

68,961

68,961

10,003

10,595

11,13910,7209,446

Maximum number
allowed to issue

of

units

Number of unitholders

2. MATTERS CONCERNING THE INVESTMENT UNITS
The 10 largest unitholders as of November 30, 2014 were as follows.
Name

Number of Units Held (Unit)

Portion in the Total Units Issued (%)

Japan Trustee Services Bank, Ltd. （Trust Account）

46,998

29.23

Nomura Real Estate Development Co., Ltd.

15,240

9.48

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

6,618

4.12

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

5,848

3.64

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

5,692

3.54

The Fuji Fire and Marine Insurance Co., Ltd.
(Standing Proxy: Japan Trustee Services Bank, Ltd.)

3,212

2.00

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

3,008

1.87

2,502

1.56

1,908

1.19

1,707

1.06

92,733

57.67

The Joyo Bank, Ltd.
(Standing Proxy: The Master Trust Bank of Japan, Ltd.)The Fukui Bank,Ltd.
(Standing Proxy: Trust and Custody Services Bank, Ltd.)The Ashikaga Bank, Ltd.
Total

3. BREAKDOWN OF UNITHOLDERS
The breakdown of unitholders as of November 30, 2014 was as follows.
Number ofUnitholders
Private and other investors

Number of Units
per Unitholder

Portion (%)

Portion (%)

9,586

95.8

26,869

16.7

Financial institutions(Including sales agents for financial instruments firm)

101

1.0

103,974

64.7

Other domestic corporate investors

185

1.8

20,81312.9

Foreign corporate investors, etc.

131

1.3

9,144

5.7

Total

10,003100.0

160,800

100.0- 13 -

4. DIRECTORS AND AUDITOR(1) Name of directors and an auditor in the 16th fiscal period are as follows (Note 1)
Title

Name

Total Amount of Fees Paid
during the 15th Period(¥000)

Other Major Title(s)NRF Chief Investment Officer, Nomura Real Estate Asset Management, Co.,Ltd.
Auditor, Nomura Real Estate Partners Co., Ltd.
Auditor, Nomura Amenityservice Co., Ltd.

－

Executive Director

Masatomi Natsume (Note2)

Executive Director

Shozo Matsumura (Note2)

Supervisory Director

Eitoku Aikawa

Director, Japan Association of Real Estate Counselors

2,400Supervisory Director

Motoharu Yokose

Advisor, Asahi Tax Corporation.
Auditor, YAMATO HOLDINGS CO., LTD.

2,400

Accounting Auditor

Ernst & Young ShinNihon LLC––

11,200800

Note 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 atwhich Supervisory Directors serve as directors have no mutual business interests whatsoever with the Company.
Note 2: Masatomi Natsume resigned as Executive Director of the Company on September 30, 2014 and Shozo Matsumura, who was a Substitute Executive Director, was newly
appointed as the Company’s Executive Director on the same day. Furthermore, Masatomi Natsume retired from his post as NRF Chief Investment Officer at Nomura Real
Estate Asset Management Co., Ltd. on September 30, 2014.
Note 3: Saneaki Ichijo has been appointed as substitute Supervisory Director to provide against vacancy of the Supervisory Director’s position or lack of statutory quorum. Mr.
Saneaki Ichijo is Supervisory Director of Nomura Real Estate Office Fund, Inc., which entrusts the asset management company of the Company to provide asset
management services.

(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, and the 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 denyreappointment 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

Area

Real estate
Real estate in trust

15th Period (as of May 31, 2014)
Total AmountPortion(¥ mln) (Note 3)(%) (Note 4)

16th Period (as of Nov. 30, 2014)
Total AmountPortion(¥ mln) (Note 3)(%) (Note 4)

Greater Tokyo Area

106,576

64.6

107,081

63.8

Other

27,90716.9

28,177

16.8

Greater Tokyo Area

19,52811.8

20,504

12.2

Other

2,014
156,026

1.2
94.6

2,030
157,7931.2
94.0

SubtotalCash, deposits and other assets

8,825

5.4

10,147

6.0

Grand Total

164,852

100.0

167,940100.0

Note 1: Primary use is apartment building.
Note 2: “Greater Tokyo Area” refers to the metropolis of Tokyo and the three surrounding prefectures, Kanagawa, Chiba and Saitama.
“Other Areas” refer to the three major metropolitan areas, excluding Tokyo, and other major cities throughout Japan, including government designated cities. The same shallapply hereinafter.
Note 3: Total amount is taken from the balance sheet. (Real Estate and Real Estate in Trust represent the total book value after depreciation.)
Note 4: The percentage figures may not necessarily add up to 100 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 16th 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

PRIME URBAN Meguro Ohashi Hills

3,582

2,955.74

2,878.65

97.4

1.5

Apartment building

PRIME URBAN Sapporo Riverfront

3,543

15,552.59

15,046.37

96.7

3.4

Apartment building

PRIME URBAN Nihonbashi Yokoyamacho

3,454

5,926.17

5,877.37

99.2

2.4

Apartment building

PRIME URBAN Ikebukuro

3,397

4,376.95

4,209.35

96.2

1.9

Apartment building

PROUD FLAT Shirokane Takanawa

3,380

2,950.11

2,733.19

92.6

1.7

Apartment building

PROUD FLAT Kamata II

2,885

4,051.72

3,951.58

97.5

2.0

Apartment building

PRIME URBAN Izumi

2,873

7,543.10

7,273.10

96.4

2.5

Apartment building

PRIME URBAN Kagurazaka

2,710

2,853.82

2,730.65

95.7

1.4

Apartment building

PROUD FLAT Kamiooka

2,542

4,872.17

4,872.17

100.0

1.3

Apartment building

PRIME URBAN Musashi Koganei

2,513

5,999.80

5,692.30

94.9

1.4

Apartment building

Total

30,88457,082.17

55,264.73

96.8

19.6

- 15 -

3. DETAILS OF PORTFOLIO PROPERTIES

AreaGreaterTokyo
Area

Location(Postal Address)

Name of Property

Type ofOwnership(Note 1)

Appraisal Valueas of Nov. 30,
2014 (¥ mln)
(Note 2)

PROUD FLAT Shirokane Takanawa

5-12-7 Mita, Minato-ku, Tokyo

Real estate

3,260

PROUD FLAT Yoyogi Uehara

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

Beneficial
Interest

942

PROUD FLAT Hatsudai

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

Real estate

699

PROUD FLAT Shibuya Sakuragaoka

21-8 Sakuragaoka, Shibuya-ku, Tokyo

Real estate

716

PROUD FLAT Gakugei Daigaku

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

Real estate

724

PROUD FLAT Meguro Gyoninzaka

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

Real estate

897

PROUD FLAT Sumida Riverside

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

Real estate

2,170

PROUD FLAT Kagurazaka

1-11 Higashi Gokencho, Shinjuku-ku, Tokyo

Real estate

1,550

PROUD FLAT Waseda

521-9 Waseda Tsurumaki-cho, Shinjuku-ku, Tokyo

Real estate

1,070

PROUD FLAT Shinjuku Kawadacho

3-29 Kawadacho, Shinjuku-ku, Tokyo

Real estate

919

PROUD FLAT Sangen Jaya

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

Real estate

1,160

PROUD FLAT Kamata

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

Real estate

1,100

PROUD FLAT Kamata II

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

Real estate

3,270

PROUD FLAT Shinotsuka

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

Real estate

593

PROUD FLAT Kiyosumi Shirakawa

2-3 Takabashi, Koto-ku, Tokyo

Real estate

892

PROUD FLAT Monzen Nakacho II

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

Real estate

626

PROUD FLAT Monzen Nakacho I

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

Real estate

989

PROUD FLAT Fujimidai

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

Real estate

1,470

PROUD FLAT Asakusa Komagata

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

Real estate

1,920

PROUD FLAT Yokohama

8-18 Daimachi Kanagawa-ku, Yokohama-shi, Kanagawa

Real estate

2,010

PROUD FLAT Kamioooka

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

Real estate

2,600

PROUD FLAT Tsurumi II

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

Real estate

1,610

PRIME URBAN Azabu Juban

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

Real estate

1,030

PRIME URBAN Akasaka

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

Real estate

904

PRIME URBAN Tamachi

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

Beneficial
Interest

937

PRIME URBAN Shibaura LOFT

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

Real estate

1,830

PRIME URBAN Hatagaya

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

Real estate

455

PRIME URBAN Yoyogi

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

Real estate

351

PRIME URBAN EbisuⅡ

1-13-3 Hiroo, Shibuya-ku, Tokyo

Real estate

1,120

PRIME URBAN Bancho

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

Real estate

1,060

PRIME URBAN Chiyoda Fujimi

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

Real estate

660

PRIME URBAN Iidabashi

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

Beneficial
Interest

2,020

PRIME URBAN Ebisu

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

Real estate

1,220

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- 16 -

Beneficial
Interest
Beneficial
Interest
Beneficial
Interest
Real estate

1,360
738
467
401

Area

Greater

Location(Postal Address)

Name of Property

Type ofOwnership(Note 1)

Appraisal Valueas of Nov. 30,
2014 (¥ mln)
(Note 2)PRIME URBAN Meguro Ohashi Hills

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

Real estate

2,970

PRIME URBAN Meguro Aobadai

3-18-9 Aobadai, Meguro-ku, Tokyo

Real estate

1,280

PRIME URBAN Gakugei DaigakuⅡ

3-14-15 Takaban, Meguro-ku, Tokyo

Real estate

1,040

PRIME URBAN Kachidoki

6-5-6 Kachidoki, Chuo-ku, Tokyo

PRIME URBAN Shinkawa

2-16-10 Shinkawa, Chuo-ku, Tokyo

PRIME URBAN Nihonbashi Yokoyamacho

3-4 Nihonbashi Yokoyamacho, Chuo-ku, Tokyo

Real estate

4,180

PRIME URBAN Nihonbashi Hamacho

2-50-8 Nihonbashi Hamacho, Chuo-ku, Tokyo

Real estate

1,520

PRIME URBAN Hongo Ikizaka

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

Real estate

571

PRIME URBAN Hakusan

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

Real estate

876

PRIME URBAN Yotsuya Gaien Higashi

14-62 Samoncho, Shinjuku-ku, Tokyo

Real estate

1,450

PRIME URBAN Naka Ochiai

1-7-19 Naka Ochiai, Shinjuku-ku, Tokyo

Real estate

604

PRIME URBAN Ochiai

2-17-9 Nakai, Shinjuku-ku, Tokyo

Real estate

333

PRIME URBAN Nishi Shinjuku I

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

PRIME URBAN Nishi Shinjuku II

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

PRIME URBAN Shinjuku Naitomachi

1-55 Naitomachi, Shinjuku-ku, Tokyo

PRIME URBAN Nishi Waseda

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

Real estate

419

PRIME URBAN Shinjuku Ochiai

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

Real estate

571

PRIME URBAN Mejiro

3-22-21 Shimoochiai, Shinjuku-ku Tokyo

Real estate

1,400

PRIME URBAN Kagurazaka346-3 Yamabukityo, Shinjuku-ku, Tokyo

Real estate

2,830

PRIME URBAN Roka Koen

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

Real estate

324

PRIME URBAN Kamiuma

5-26-14 Kamiuma, Setagaya-ku, Tokyo

Real estate(Note 4)836

PRIME URBAN Sangen JayaⅢ

5-38-12 Kamiuma, Setagaya-ku, Tokyo

Real estate

692

PRIME URBAN Chitose Karasuyama

3-32-16 Kasuya, Setagaya-ku, Tokyo

Real estate

703

PRIME URBAN Sangen Jaya II

2-4-16 Taishido, Setagaya-ku, Tokyo

Real estate

464

PRIME URBAN Karasuyama

4-5-15 Minami Karasuyama, Setagaya-ku, Tokyo

Real estate

345

PRIME URBAN Sangen Jaya

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

Beneficial
Interest

695

PRIME URBAN Minami Karasuyama

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

Real estate

662

PRIME URBAN Karasuyama Galleria

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

Real estate

526

PRIME URBAN Karasuyama Court

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

Real estate

330

PRIME URBAN Kamikitazawa

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

Real estate

591

PRIME URBAN Chitose Funabashi

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

Real estate

743

PRIME URBAN Yoga

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

Real estate

1,370

PRIME URBAN Shinagawa Nishi

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

Real estate

481

PRIME URBAN Oimachi

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

Real estate

488

PRIME URBAN Osaki

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

Real estate

1,780

PRIME URBAN Oimachi II

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

Real estate

1,030

PRIME URBAN Yukigaya

34-10 Kita Minemachi, Ota-ku, Tokyo

Real estate947

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

Beneficial
Interest

869

Beneficial
Interest
Beneficial
Interest

Beneficial
Interest
Beneficial
Interest
Beneficial
Interest

2,470
2,100

1,050
879
425

Tokyo
Area

PRIME URBAN Omori- 17 -

Area

Greater

Location(Postal Address)

Name of Property

Type ofOwnership(Note 1)

Appraisal Valueas of Nov. 30,
2014 (¥ mln)
(Note 2)PRIME URBAN Denenchofu Minami

12-5 Denenchofu Minami, Ota-ku, Tokyo

Real estate

774

PRIME URBAN Nakano

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

Real estate

477

PRIME URBAN Nakano Kamitakada

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

Real estate

500

PRIME URBAN Takaido

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

Real estate

1,050

PRIME URBAN Nishi Ogikubo

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

Real estate

404

PRIME URBAN Otsuka

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

PRIME URBAN Komagome

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

PRIME URBAN Ikebukuro

2-50-4 Ikebukuro, Toshima-ku, Tokyo

Real estate

3,740

PRIME URBAN Monzen Nakacho

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

Real estate

2,320

PRIME URBAN Kameido

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

Real estate

769

PRIME URBAN Sumiyoshi

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

Real estate

611

PRIME URBAN Mukojima

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

Real estate

518

PRIME URBAN Kinshi Koen

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

Beneficial
Interest

1,260

PRIME URBAN Kinshicho

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

Real estate

739

PRIME URBAN Hirai

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

Real estate

692

PRIME URBAN Kasai

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

Real estate

635

PRIME URBAN Kasai II

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

Beneficial
Interest

977

PRIME URBAN Kasai East

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

Real estate

1,130

PRIME URBAN Ekoda

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

Real estate

404

PRIME URBAN Itabashi Kuyakushomae

27-13 Honcho, Itabashi-ku, Tokyo

Real estate

1,090

PRIME URBAN Asakusa

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

Real estate

380

PRIME URBAN Machiya South Court

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

Real estate

1,880

PRIME URBAN Musashi Koganei

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

Real estate

1,900

PRIME URBAN Musashino Hills

2-1-2, 36 Kajinocho, Koganei-shi, Tokyo

Real estate

1,370

PRIME URBAN Koganei Honcho

4-14-25 Honcho, Koganei-shi Tokyo

Real estate

782

PRIME URBAN Hino

536-2 Hino Oaza, Hino-shi, Tokyo

Real estate

323

PRIME URBAN Kumegawa

1-5-6 Sakae-cho, Higashimurayama-shi, Tokyo

Real estate

1,500

PRIME URBAN Musashi Kosugi comodo

2-902-1 Shin Maruko Higashi Nakahara-ku, Kawasaki-shi, Kanagawa

Real estate

1,900

PRIME URBAN Kawasaki

1-4-15 Honcho Kawasaki-ku, Kawasaki-shi, Kanagawa

Real estate

949

PRIME URBAN Shinyurigaoka

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

Real estate

1,160

PRIME URBAN Tsurumi Teraya

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

Real estate

488

PRIME URBAN Urayasu II

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

Real estate

225

PRIME URBAN Urayasu

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

Real estate

796

PRIME URBAN Gyotoku I

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

Real estate

624

PRIME URBAN Minami Gyotoku III

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

Real estate

240

PRIME URBAN Gyotoku II

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

Real estate

719

PRIME URBAN Gyotoku Ekimae

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

Beneficial
Interest

483

PRIME URBAN Gyotoku EkimaeⅡ

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

Real estate

511

Beneficial
Interest
Beneficial
Interest

680
428

Tokyo
Area

- 18 -

Area

Greater

Location(Postal Address)

Name of Property

Appraisal Valueas of Nov. 30,
2014 (¥ mln)
(Note 2)PRIME URBAN GyotokuⅢ

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

Real estate

856

PRIME URBAN Nishi Funabashi

437-1 Hongocho, Funabashi-shi, Chiba

Beneficial
Interest

751

PRIME URBAN Kawaguchi

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

Real estate

1,590

Tokyo
Area

Type ofOwnership(Note 1)

Subtotal

Other

125,209

PROUD FLAT Itsutsubashi

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

Real estate

630

PROUD FLAT Kawaramachi

2-10 Aza Hachikenkoji, Minami Koizumi, Wakabayashi-ku, Sendai-shi,
MiyagiReal estate

717

PROUD FLAT Shin Osaka

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

Real estate

1,580

PRIME URBAN Yamahana

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

Real estate

271

PRIME URBAN Kita Juyo Jo

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

Real estate

272

PRIME URBAN Odori Koen I

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

Real estate

488

PRIME URBAN Odori Koen II

12-1 Nishi 9-Chome Minami 1-Jo, Chuo-ku, Sapporo-shi, Hokkaido

Real estate

322

PRIME URBAN Kita Juichi Jo

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

Real estate

536

PRIME URBAN Miyanosawa

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

Real estate

462

PRIME URBAN Odori Higashi

12-63 Higashi 7-Chome Odori, Chuo-ku, Sapporo-shi, Hokkaido

Real estate

389

PRIME URBAN Chiji Koukan

1-12 Nishi 17-Chome Kita 4-Jo, Chuo-ku, Sapporo-shi, Hokkaido

Real estate

247

PRIME URBAN Maruyama

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

Real estate

226

PRIME URBAN Kita Nijuyo Jo

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

Real estate

426

PRIME URBAN Sapporo Idaimae

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

Real estate

607

PRIME URBAN Sapporo Riverfront

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

Real estate

4,410

PRIME URBAN Kita Sanjo Dori

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

Real estate

1,680

PRIME URBAN Nagamachi Icchome

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

Real estate

1,120

PRIME URBAN Yaotome Chuo

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

Real estate

457

PRIME URBAN Tsutsumidori Amamiya

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

Real estate

936

PRIME URBAN Aoi

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

Beneficial
Interest

692

PRIME URBAN Kanayama

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

Real estate

639

PRIME URBAN Tsurumai

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

Real estate

1,150

PRIME URBAN Kamimaezu

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

Real estate

1,560

PRIME URBAN Izumi

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

Real estate

3,710

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

1,160

PRIME URBAN Tamatsukuri

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

Real estate

1,010

PRIME URBAN Sakaisuji Honmachi

1-5-10 Kyutaro-cho, Chuo-ku, Osaka-shi, Osaka

Real estate

1,800

PRIME URBAN Hakata

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

Real estate

586

PRIME URBAN Yakuin Minami

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

Real estate

265

PRIME URBAN Kashii

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

Real estate

393

PRIME URBAN Hakata Higashi

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

Real estate620- 19 -

649
778

Area

Location(Postal Address)

Name of Property

PRIME URBAN Chihaya

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

Type ofOwnership(Note 1)

Appraisal Valueas of Nov. 30,
2014 (¥ mln)
(Note 2)

Real estate

593

Other
Subtotal

31,381

Total

156,590

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, 2014” stands for the prices appraised by the estate surveyors in accordance with the provisions of the Company’s Articles ofIncorporation and the “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 thecapitalization approach, with the end of the 16th fiscal period, i.e.November 30, 2014, 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.
Note 5: Property names were changed on 16th fiscal period for the following 30 properties.

New Name(After Change)
PRIME URBAN EbisuⅡ
PRIME URBAN Meguro Aobadai
PRIME URBAN Gakugei DaigakuⅡ
PRIME URBAN Nihonbashi Hamacho
PRIME URBAN Naka Ochiai
PRIME URBAN Shinjuku Ochiai
PRIME URBAN Mejiro
PRIME URBAN Kagurazaka
PRIME URBAN Roka Koen
PRIME URBAN Kamiuma
PRIME URBAN Sangen Jaya II
PRIME URBAN Kamikitazawa
PRIME URBAN Nakano
PRIME URBAN Ikebukuro
PRIME URBAN Hino
PRIME URBAN Kawasaki
PRIME URBAN Urayasu II
PRIME URBAN Minami Gyotoku III
PRIME URBAN Sapporo Riverfront
PRIME URBAN Kita Sanjo DoriPRIME URBAN Tsutsumidori Amamiya
PRIME URBAN Kamimaezu
PRIME URBAN Izumi
PRIME URBAN Tamatsukuri
PRIME URBAN Sakaisuji Honmachi
PRIME URBAN Hakata
PRIME URBAN Yakuin Minami
PRIME URBAN Kashii
PRIME URBAN Hakata Higashi
PRIME URBAN Chihaya

Old Name(Before Change)
URBAN STAGE Ebisu
URBAN STAGE Meguro Aobadai
URBAN STAGE Gakugei Daigaku
URBAN STAGE Nihonbashi Hamacho
URBAN STAGE Naka Ochiai
URBAN STAGE Shinjuku Ochiai
URBAN STAGE Mejiro
URBAN STAGE Kagurazaka
URBAN STAGE Roka Koen
URBAN STAGE Kamiuma
URBAN STAGE Sangen Jaya II
URBAN STAGE Kamikitazawa
URBAN STAGE Nakano
URBAN STAGE Ikebukuro
URBAN STAGE Hino
URBAN STAGE Kawasaki
URBAN STAGE Urayasu
URBAN STAGE Minami Gyotoku III
URBAN STAGE Sapporo Riverfront
URBAN STAGE Kita Sanjo DoriURBAN STAGE Tsutsumidori Amamiya
URBAN STAGE Kamimaezu
URBAN STAGE Izumi
URBAN STAGE Tamatsukuri
URBAN STAGE Sakaisuji Honmachi
Benefis Hakata Grand Suite
Benefis Yakuin Minami
Benefis Kashii Verbena
Benefis Hakata Higashi Grand Suite
Benefis Chihaya Grand Suite- 20 -

Area

GreaterTokyo
Area

Name of Property

16th Period (from Jun. 1, 2014 to Nov 30, 2014)
Rentalat Period End
Portion of
Revenues
RentalNumber ofduring the
Occupancy
Revenues
Tenants
PeriodRate (%)(%)(Note 1)(¥ 000)15th Period (from Dec. 1, 2013 to May 31, 2014)
Rentalat Period End
Portion of
Revenues
RentalNumber ofduring the
Occupancy
Revenues
Tenants
PeriodRate (%)(%)(Note 1)(¥ 000)

PROUD FLAT Shirokane Takanawa

1

92.6

93,324

1.7

1

92.6

94,096

1.7

PROUD FLAT Yoyogi Uehara

1

97.9

30,032

0.6

1

100.0

30,9690.6

PROUD FLAT Hatsudai

1

100.0

23,545

0.4

1

100.0

23,724

0.4

PROUD FLAT Shibuya Sakuragaoka

1

96.7

22,721

0.4

1

100.0

22,513

0.4

PROUD FLAT Gakugei Daigaku

1

95.2

24,247

0.4

1

97.1

24,537

0.4

PROUD FLAT Meguro Gyoninzaka

1

100.0

27,909

0.5

1

92.6

27,431

0.5

PROUD FLAT Sumida Riverside

1

97.8

74,255

1.4

1

98.6

73,460

1.3

PROUD FLAT Kagurazaka

1

97.5

47,681

0.9

1

100.0

47,614

0.9

PROUD FLAT Waseda

1

91.7

34,377

0.6

1

96.9

35,716

0.6

PROUD FLAT Shinjuku Kawadacho

1

97.1

30,144

0.6

1

100.0

30,757

0.6

PROUD FLAT Sangen Jaya

1

94.3

32,616

0.6

1

88.3

35,164

0.6

PROUD FLAT Kamata

1

95.8

37,133

0.7

1

97.1

37,707

0.7

PROUD FLAT Kamata II

1

97.5

110,533

2.0

1

98.6

106,832

1.9

PROUD FLAT Shinotsuka

1

100.0

20,473

0.4

1

97.2

19,726

0.4

PROUD FLAT Kiyosumi Shirakawa

1

100.0

30,679

0.6

1

100.0

30,746

0.6

PROUD FLAT Monzen Nakacho II

1

100.0

20,762

0.4

1

89.5

21,544

0.4

PROUD FLAT Monzen Nakacho I

1

96.3

34,664

0.6

1

100.0

33,847

0.6

PROUD FLAT Fujimidai

1

100.0

56,237

1.0

1

100.0

56,2191.0

PROUD FLAT Asakusa Komagata

1

99.0

64,503

1.2

1

96.7

64,809

1.2

PROUD FLAT Yokohama

1

95.4

74,002

1.4

1

95.9

72,884

1.3

PROUD FLAT Kamioooka

1

100.0

69,399

1.3

1

87.5

79,234

1.4

PROUD FLAT Tsurumi II

1

95.2

62,517

1.2

1

100.0

64,395

1.2

PRIME URBAN Azabu Juban

1

93.2

31,311

0.6

1

89.9

31,9280.6

PRIME URBAN Akasaka

1

90.0

25,742

0.5

1

96.6

26,625

0.5

PRIME URBAN Tamachi

1

100.0

30,351

0.6

1

90.0

29,9880.5

PRIME URBAN Shibaura LOFT

1

91.2

55,715

1.0

1

95.9

54,7421.0

PRIME URBAN Hatagaya

1

94.6

15,614

0.3

1

100.0

16,1100.3

PRIME URBAN Yoyogi

1

100.0

11,645

0.2

1

100.0

10,532

0.2

PRIME URBAN Ebisu II

1

100.0

34,278

0.6

1

93.7

33,583

0.6

PRIME URBAN Bancho

1

96.0

32,566

0.6

1

94.4

32,4990.6

PRIME URBAN Chiyoda Fujimi

1

93.8

20,700

0.4

1

90.8

20,7650.4

PRIME URBAN Iidabashi

1

96.8

61,389

1.1

1

95.7

63,715

1.1

PRIME URBAN Ebisu

1

92.8

32,447

0.6

1

86.8

37,2100.7

PRIME URBAN Naka Meguro

1

91.8

40,274

0.7

1

93.9

40,4950.7

PRIME URBAN Gakugei Daigaku

1

90.9

24,077

0.4

1

90.8

25,0680.5

PRIME URBAN Senzoku

1

93.7

14,324

0.3

1

91.5

15,4980.3

PRIME URBAN Meguro Riverside

1

91.5

12,799

0.2

1

91.5

14,2400.3

PRIME URBAN Meguro Ohashi Hills

1

97.4

82,890

1.5

1

95.6

84,218

1.5

PRIME URBAN Meguro Aobadai

1

97.7

37,721

0.7

1

100.0

37,484

0.7

PRIME URBAN Gakugei Daigaku II

1

95.7

31,365

0.6

1

98.2

27,694

0.5

PRIME URBAN Kachidoki

1

97.2

85,591

1.6

1

91.6

90,293

1.6

PRIME URBAN Shinkawa

1

98.3

73,809

1.4

1

93.0

71,357

1.3

PRIME URBAN Nihonbashi Yokoyamacho

1

99.2

129,110

2.4

1

99.5

126,578

2.3

PRIME URBAN Nihonbashi Hamacho

1

91.2

45,251

0.8

1

94.9

47,0270.8

PRIME URBAN Hongo Ikizaka

1

100.0

16,954

0.3

1

92.6

18,1380.3

PRIME URBAN Hakusan

1

100.0

25,923

0.5

1

96.4

26,0820.5

PRIME URBAN Yotsuya Gaien Higashi

1

98.2

43,356

0.8

1

89.8

46,3620.8

PRIME URBAN Naka Ochiai

1

94.6

23,484

0.4

1

100.0

21,8330.4

PRIME URBAN Ochiai

1

90.9

12,571

0.2

1

93.7

13,1550.2

PRIME URBAN Nishi Shinjuku I

1

100.0

35,143

0.6

1

92.2

37,034

0.7

PRIME URBAN Nishi Shinjuku II

1

93.9

27,333

0.5

1

95.9

28,225

0.5

PRIME URBAN Shinjuku Naitomachi

1

86.1

12,584

0.2

1

100.0

13,7670.2

PRIME URBAN Nishi Waseda

1

57.1

3,828

0.1

1

3.5

12,5000.2

PRIME URBAN Shinjuku Ochiai

1

96.1

19,514

0.4

1

91.8

21,4090.4

PRIME URBAN Mejiro

1

95.3

40,753

0.8

1

95.6

41,5950.7

PRIME URBAN Kagurazaka

1

95.7

77,888

1.4

1

99.3

80,8091.5- 21 -

Area

GreaterTokyo
Area

Name of Property

16th Period (from Jun. 1, 2014 to Nov 30, 2014)
Rentalat Period End
Portion of
Revenues
RentalNumber ofduring the
Occupancy
Revenues
Tenants
PeriodRate (%)(%)(Note 1)(¥ 000)15th Period (from Dec. 1, 2013 to May 31, 2014)
Rentalat Period End
Portion of
Revenues
RentalNumber ofduring the
Occupancy
Revenues
Tenants
PeriodRate (%)(%)(Note 1)(¥ 000)PRIME URBAN Roka Koen

1

94.2

11,688

0.2

1

91.3

11,8580.2

PRIME URBAN Kamiuma

1

100.0

33,305

0.6

1

95.5

32,934

0.6

PRIME URBAN Sangen JayaⅢ

1

100.0

26,021

0.5

1

96.6

25,414

0.5

PRIME URBAN Chitose Karasuyama

1

97.3

26,899

0.5

1

89.1

26,855

0.5

PRIME URBAN Sangen Jaya II

1

78.8

16,479

0.3

1

91.2

17,611

0.3

PRIME URBAN Karasuyama

1

86.3

11,621

0.2

1

96.3

12,5940.2

PRIME URBAN Sangen Jaya

1

97.1

23,981

0.4

1

100.0

23,444

0.4

PRIME URBAN Minami Karasuyama

1

97.6

23,901

0.4

1

95.2

24,934

0.4

PRIME URBAN Karasuyama Galleria

1

94.0

18,202

0.3

1

97.0

18,9890.3

PRIME URBAN Karasuyama Court

1

95.7

12,025

0.2

1

100.0

12,4070.2

PRIME URBAN Kamikitazawa

1

86.5

21,066

0.4

1

96.3

20,6430.4

PRIME URBAN Chitose Funabashi

1

97.6

22,512

0.4

1

97.3

23,5770.4

PRIME URBAN Yoga

1

97.6

41,707

0.8

1

100.0

43,4290.8

PRIME URBAN Shinagawa Nishi

1

97.9

21,969

0.4

1

95.9

21,531

0.4

PRIME URBAN Oimachi

1

95.6

19,337

0.4

1

97.8

19,3290.3

PRIME URBAN Osaki

1

99.0

57,809

1.1

1

98.0

58,513

1.1

PRIME URBAN Oimachi II

1

96.4

49,015

0.9

1

96.2

49,9540.9

PRIME URBAN Yukigaya

1

94.7

37,120

0.7

1

100.0

38,6790.7

PRIME URBAN Omori

1

98.1

29,777

0.5

1

100.0

30,281

0.5

PRIME URBAN Denenchofu Minami

1

96.1

23,964

0.4

1

95.5

24,7980.4

PRIME URBAN Nakano

1

92.9

18,621

0.3

1

96.2

19,032

0.3

PRIME URBAN Nakano Kamitakada

1

97.5

19,600

0.4

1

100.0

20,3330.4

PRIME URBAN Takaido

1

89.9

38,498

0.7

1

95.4

40,0290.7

PRIME URBAN Nishi Ogikubo

1

88.1

12,652

0.2

1

96.1

13,8060.2

PRIME URBAN Otsuka

1

100.0

23,835

0.4

1

97.9

23,4130.4

PRIME URBAN Komagome

1

90.5

16,921

0.3

1

95.0

18,3890.3

PRIME URBAN Ikebukuro

1

96.2

105,594

1.9

1

93.0

107,947

1.9

PRIME URBAN Monzen Nakacho

1

98.3

78,960

1.5

1

99.2

77,357

1.4

PRIME URBAN Kameido

1

96.1

26,194

0.5

1

94.3

25,0380.5

PRIME URBAN Sumiyoshi

1

94.9

19,983

0.4

1

100.0

20,0720.4

PRIME URBAN Mukojima

1

94.6

21,309

0.4

1

100.0

21,7070.4

PRIME URBAN Kinshi Koen

1

98.7

41,782

0.8

1

98.7

41,6100.7

PRIME URBAN Kinshicho

1

100.0

23,946

0.4

1

100.0

23,9650.4

PRIME URBAN Hirai

1

94.3

23,889

0.4

1

100.0

24,551

0.4

PRIME URBAN Kasai

1

100.0

21,203

0.4

1

97.8

21,7650.4

PRIME URBAN Kasai II

1

97.1

32,308

0.6

1

100.0

32,753

0.6

PRIME URBAN Kasai East

1

100.0

36,630

0.7

1

100.0

36,6790.7

PRIME URBAN Ekoda

1

100.0

14,954

0.3

1

97.4

15,4380.3

PRIME URBAN Itabashi Kuyakushomae

1

94.9

37,312

0.7

1

91.2

36,003

0.6

PRIME URBAN Asakusa

1

95.4

15,702

0.3

1

100.0

15,636

0.3

PRIME URBAN Machiya South Court

1

97.7

73,503

1.4

1

97.6

70,315

1.3

PRIME URBAN Musashi Koganei

1

94.9

73,675

1.4

1

93.9

74,1591.3

PRIME URBAN Musashino Hills

1

95.1

47,902

0.9

1

93.3

49,376

0.9

PRIME URBAN Koganei Honcho

1

86.9

28,347

0.5

1

97.4

28,1070.5

PRIME URBAN Hino

1

98.1

13,477

0.2

1

85.2

14,6970.3

PRIME URBAN Kumegawa

1

95.7

56,847

1.0

1

97.4

57,6591.0

PRIME URBAN Musashi Kosugi comodo

1

98.4

71,772

1.3

1

100.0

74,152

1.3

PRIME URBAN Kawasaki

1

96.9

37,243

0.7

1

100.0

38,3030.7

PRIME URBAN Shinyurigaoka

1

100.0

37,408

0.7

1

100.0

37,974

0.7

PRIME URBAN Tsurumi Teraya

1

92.0

20,169

0.4

1

100.0

20,5780.4

PRIME URBAN Urayasu II

1

100.0

8,927

0.2

1

96.3

9,282

0.2

PRIME URBAN Urayasu

1

96.7

26,872

0.5

1

93.3

27,0280.5

PRIME URBAN Gyotoku I

1

88.5

21,921

0.4

1

96.2

23,601

0.4

PRIME URBAN Minami Gyotoku III

1

100.0

12,188

0.2

1

93.9

12,441

0.2

PRIME URBAN Gyotoku II

1

100.0

24,782

0.5

1

100.0

28,2130.5

PRIME URBAN Gyotoku Ekimae

1

91.9

17,123

0.3

1

97.3

16,6180.3

PRIME URBAN Gyotoku Ekimae II

1

97.8

19,907

0.4

1

97.8

21,6620.4- 22 -

Area

Greater
Tokyo
Area

Other

Name of Property

16th Period (from Jun. 1, 2014 to Nov 30, 2014)
Rentalat Period End
Portion of
Revenues
RentalNumber ofduring the
Occupancy
Revenues
Tenants
PeriodRate (%)(%)(Note 1)(¥ 000)15th Period (from Dec. 1, 2013 to May 31, 2014)
Rentalat Period End
Portion of
Revenues
RentalNumber ofduring the
Occupancy
Revenues
Tenants
PeriodRate (%)(%)(Note 1)(¥ 000)PRIME URBAN GyotokuⅢ

1

88.3

31,453

0.6

1

98.7

31,943

0.6

PRIME URBAN Nishi Funabashi

1

100.0

25,465

0.5

1

98.3

25,984

0.5

PRIME URBAN Kawaguchi

1

100.0

55,952

1.0

1

86.9

52,891

1.0

URBAN STAGE Komazawa (Note 2)－－

12,895

0.2

1

100.0

12,4080.2

URBAN STAGE Ikegami (Note 3)

－

－

－

－

－

－

38,8690.7

URBAN STAGE Machiya (Note 4)
URBAN STAGE Minami Gyotoku II(Note 5)URBAN STAGE Minami Gyotoku IV(Note 6)

－

－

－

－

－

－

9,126

0.2

－

－

11,755

0.2

1

94.6

11,479

0.2

－

－

1,662

0.0

1

90.4

11,0900.2

Subtotal

116

96.2

4,179,650

77.0

119

95.7

4,303,787

77.5

PROUD FLAT Itsutsubashi

1

100.0

30,500

0.6

1

97.8

29,918

0.5

PROUD FLAT Kawaramachi

1

95.7

30,101

0.6

1

96.1

30,134

0.5

PROUD FLAT Shin Osaka

1

98.3

61,250

1.1

1

96.6

62,268

1.1

PRIME URBAN Yamahana

1

100.0

12,983

0.2

1

96.5

12,991

0.2

PRIME URBAN Kita Juyo Jo

1

84.9

13,110

0.2

1

93.6

13,4150.2

PRIME URBAN Odori Koen I

1

100.0

17,156

0.3

1

100.0

17,142

0.3

PRIME URBAN Odori Koen II

1

100.0

11,137

0.2

1

100.0

11,1340.2

PRIME URBAN Kita Juichi Jo

1

100.0

25,305

0.5

1

100.0

25,511

0.5

PRIME URBAN Miyanosawa

1

96.2

22,967

0.4

1

98.4

23,9080.4

PRIME URBAN Odori Higashi

1

96.8

18,532

0.3

1

100.0

18,372

0.3

PRIME URBAN Chiji Koukan

1

95.2

12,718

0.2

1

100.0

13,5940.2

PRIME URBAN Maruyama

1

100.0

11,581

0.2

1

100.0

11,3340.2

PRIME URBAN Kita Nijuyo Jo

1

100.0

19,909

0.4

1

91.6

20,5480.4

PRIME URBAN Sapporo Idaimae

1

96.8

27,318

0.5

1

93.5

27,7300.5

PRIME URBAN Sapporo Riverfront

1

96.7

186,968

3.4

1

96.4

188,414

3.4

PRIME URBAN Kita Sanjo Dori

1

99.0

67,617

1.2

1

100.0

69,341

1.2

PRIME URBAN Nagamachi Icchome

1

98.0

42,681

0.8

1

94.4

42,231

0.8

PRIME URBAN Yaotome Chuo

1

100.0

19,655

0.4

1

97.8

19,4100.3

PRIME URBAN Tsutsumidori Amamiya

1

98.2

45,054

0.8

1

96.8

45,1280.8

PRIME URBAN Aoi

1

98.1

23,506

0.4

1

88.5

25,101

0.5

PRIME URBAN Kanayama

1

100.0

24,106

0.4

1

96.5

22,7300.4

PRIME URBAN Tsurumai

1

97.1

43,845

0.8

1

93.3

41,5090.7

PRIME URBAN Kamimaezu

1

96.2

56,323

1.0

1

100.0

56,7591.0

PRIME URBAN Izumi

1

96.4

133,229

2.5

1

95.9

133,563

2.4

PRIME URBAN Esaka I

1

83.4

20,440

0.4

1

85.5

22,5780.4

PRIME URBAN Esaka II

1

91.4

27,500

0.5

1

98.3

27,7370.5

PRIME URBAN Esaka III

1

90.6

40,270

0.7

1

91.5

40,3520.7

PRIME URBAN Tamatsukuri

1

91.3

34,978

0.6

1

95.4

35,532

0.6

PRIME URBAN Sakaisuji Honmachi

1

94.8

61,597

1.1

1

90.7

58,9701.1

PRIME URBAN Hakata

1

92.3

28,692

0.5

1

96.2

28,131

0.5

PRIME URBAN Yakuin Minami

1

93.1

13,150

0.2

1

100.0

13,121

0.2

PRIME URBAN Kashii

1

88.4

15,745

0.3

1

92.3

15,512

0.3

PRIME URBAN Hakata Higashi

1

95.7

25,551

0.5

1

97.4

26,2700.5

PRIME URBAN Chihaya

1

94.1

22,845

0.4

1

94.0

22,4530.4

Subtotal

34

96.3

1,248,335

23.0

34

96.1

1,252,861

22.5

Total

150

96.2

5,427,985

100.0

153

95.8

5,556,649

100.0Note 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 the case 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 the number of the properties rented by the relevant tenant as the number of tenants.
Note 2: The relevant properties were sold on November 27, 2014. The figure shown in the “rental revenues during the 16th fiscal period” column is before the date of selling.
Note 3: The relevant properties were sold on April 24, 2014. The figure shown in the “rental revenues during the 15th fiscal period” column is before the date of selling.
Note 4: The relevant properties were sold on May 29, 2014. The figure shown in the “rental revenues during the 15th fiscal period” column is before the date of selling.
Note 5: The relevant properties were sold on November 28, 2014. The figure shown in the “rental revenues during the 16th fiscal period” column is before the date of selling.
Note 6: The relevant properties were sold on June 30, 2014. The figure shown in the “rental revenues during the 16th fiscal period” column is before 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, 2014 are as follows.
Segment
Transaction other than market transaction

Type of Transaction

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

Current Price(¥ mln) (Note 2)

Interest-rate swap
(Receiving floating-rate, paying fixed-rate)

55,60039,500

△453

Total

55,60039,500△453

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”,
the Company had no other assets to integrate into the portfolio as of November 30, 2014.

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 forthe future (finished in part) on the properties held as of November 30, 2014. The estimated cost of works includes the amountto 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
16th Period
16th Period

PRIME URBAN Azabu Juban(Minato-ku, Tokyo)

Major repair

From
To

: Mar. 2015
: May 201524,128--PRIME URBAN Ebisu(Meguro-ku, Tokyo)

Elevator parts replacement

From
To

: Feb. 2015
: Mar. 2015

2,850

-

-

PRIME URBAN Nishi Shinjuku I(Koganei-shi, Tokyo)

Elevator parts replacement

From
To

: Feb. 2015
: Mar. 2015

4,106

-

-

PRIME URBAN Koganei Honcho(Koganei-shi, Tokyo)

Elevator parts replacement

From
To

: Feb. 2015
: Mar. 2015

2,600

-

-

PRIME URBAN Musashi Kosugi comodo(Nakahara-ku, Kawasaki-shi)Common area renovation

From
To

: Jan. 2015
: Feb. 2015

2,600

-

-

PRIME URBAN Tsutsumidori Amamiya(Aoba-ku, Sendai-shi)

Major repair

From
To

: Mar. 2015
: May 2015

33,878--

2. CAPITAL EXPENDITURES DURING THE 16TH FISCAL PERIOD
The table below lists capital expenditures during the 16th fiscal period in conjunction with the major works of renovation.
During the period, we have conducted engineering works totaling ¥393,927 thousand: capital expenditures of ¥136,544
thousand and repair expenses of ¥257,382 thousand combined all together.
Name of Property (Location)

Description of Works (Purpose)

Period of Works

Cost of Works (¥000)

PRIME URBAN Shinjuku Ochiai(Shinjuku-ku, Tokyo)

Major repair

From : Sep. 2014To
: Nov. 2014

3,779

PRIME URBAN Takaido(Suginami-ku, Tokyo)

Housing equipment renewal

From : Nov. 2014To
: Nov. 2014

5,107

PRIME URBAN Musashi Koganei(Koganei-shi, Tokyo)

Entrance renewal

From : Jun. 2014To
: Aug. 2014

14,197PRIME URBAN Tsutsumidori Amamiya(Aoba-ku, Sendai-shi)

Housing equipment renewal

From : Nov. 2014To
: Nov. 2014

5,889

Other Properties

Housing equipment renewal

From : Jun. 2014To
: Nov. 2014

107,571

Total

136,544

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 forreserves from the operating cash flow to prepare for large-scale engineering works to be carried out in the future.

Balance brought forward from theprevious period
Amount reserved during the period
Amount used during the period
Balance brought forward to the next
period16th Period
from Jun. 1, 2014
to Nov. 30, 2014

15th Period
from Dec. 1, 2013
to May 31, 2014

14th Period
from Jun. 1, 2013
to Nov. 30, 2013

13th Period
from Dec. 1, 2012
to May 31, 2013

12th Period
from Jun. 1, 2012
to Nov. 30, 2012(¥ mln)

1,829

1,745

1,651

1,548

1,385

(¥ mln)(¥ mln)

243
122

180
96

175
81

176
73

176
12

(¥ mln)

1,950

1,829

1,745

1,651

1,548

- 25 -

Expenses and Liabilities
1. EXPENSES RELATED TO ASSET MANAGEMENT
15th Period
From Dec. 1, 2013
to May 31, 2014

16th Period
From Jun. 1, 2014
to Nov. 30, 2014
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

399,676
209,449
190,227－
15,951
24,071
4,800
182,300
626,800

397,390
210,348
187,041－
15,944
26,171
5,600
213,461
658,568(¥000)(¥000)(¥000)－(¥000)(¥000)(¥000)(¥000)(¥000)

Note 1: 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.

2. STATUS OF BORROWINGSThe status of borrowings from the financial institutions as of November 30, 2014 is as follows.
Current Portion of Long-term debt
Outstanding
as of Nov.
30, 2014(¥000)

Outstanding
as of Jun.
1, 2014(¥000)The Bank of Tokyo-Mitsubishi UFJ, Ltd.

-

500,000

Sumitomo Mitsui Banking Corporation-

500,000-

400,000

Sumitomo Mitsui Trust Bank, Limited-

700,000

Mizuho Bank, Ltd.

-

320,000

The Chiba Bank, Ltd.

-

750,000

Sumitomo Mitsui Trust Bank, Limited-

1,400,000-

1,000,000-

1,000,000

Financial Institutions

Mitsubishi UFJ Trust and Banking
Corporation

Mitsui Sumitomo Insurance Co., Ltd.

Date Borrowed

Aug. 27, 2012

Sep. 5, 2011

Mizuho Bank, Ltd.

Average
Interest
Rate (%)(Note 1)

Date of
Repayment

0.71000

Aug. 27,2014

0.94700

Sep. 5,2014

The Bank of Fukuoka, Ltd.

Feb. 26, 2010

1,000,000

1,000,000

1.79200

Development Bank of Japan, Inc.

May 15, 2007

1,300,000

1,300,000

2.23500

The Nomura Trust and Banking Co., Ltd.

1,000,000

1,000,000

The Iyo Bank, Ltd.

1,000,000

1,000,000

1,900,000

1,900,000

Mizuho Trust & Banking Co., Ltd.

1,000,000

1,000,000

The Tokyo Tomin Bank, Limited

500,000

500,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,800,000-

Sumitomo Mitsui Banking Corporation

1,800,000-

2,500,000-

Mitsubishi UFJ Trust and Banking
Corporation

1,800,000-

Sumitomo Mitsui Trust Bank, Limited

1,800,000-

Resona Bank, Ltd.

Feb. 27, 2012

Mizuho Bank, Ltd.

Feb. 27, 2012

Feb. 26,
2015
Feb. 27,2015

0.96365

Feb. 27,2015

1.00900

Aug. 27,
2015

Method of
Repayment

Aug. 27, 2009

80,00080,0002.10000(Note 2)

(Note 2)Development Bank of Japan, Inc.

Feb. 26, 2010

100,000

100,000

2.03000(Note 3)(Note 3)

17,580,000

14,450,000- 26 -

Note(Note 4)

Unsecured/
Uninsured

Balloonpayment

Development Bank of Japan, Inc.

Subtotal

Use ofBorrowings

Long-term debt

Financial Institutions

Date Borrowed

Outstanding
as of Nov.
30, 2014(¥000)

Outstanding
as of Jun.
1, 2014(¥000)The Bank of Tokyo-Mitsubishi UFJ, Ltd.

-

1,800,000

Sumitomo Mitsui Banking Corporation-

1,800,000-

2,500,000

Mitsubishi UFJ Trust and Banking
Corporation-

1,800,000

Sumitomo Mitsui Trust Bank, Limited-

1,800,000

4,700,000

4,700,000

4,700,000

4,700,000

4,700,000

4,700,000

500,000

500,000

800,000

800,000

500,000

500,000

750,000-

1,100,000

1,100,000

1,100,000

1,100,000

Shinkin Central Bank

1,720,000

1,720,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,300,000

1,300,000

Sumitomo Mitsui Banking Corporation

1,300,000

1,300,000

900,000

900,000

Mizuho Bank, Ltd.

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Feb. 27, 2012

Dec. 26, 2011

Sumitomo Mitsui Banking Corporation
Mitsubishi UFJ Trust and Banking
Corporation

Dec. 26, 2011

Resona Bank, Ltd.
Shinkin Central Bank

Oct. 25, 2013

Aozora Bank, Ltd.
The Chiba Bank, Ltd.

Aug. 27, 2014

Mitsui Sumitomo Insurance Co., Ltd.
Daido Life Insurance Company

Mitsubishi UFJ Trust and Banking
Corporation

Aug. 27, 2012

Aug. 27, 2012

Sumitomo Mitsui Trust Bank, Limited

520,000

520,000

Mizuho Bank, Ltd.

900,000

900,000

Aozora Bank, Ltd.

500,000

500,000

1,800,000

1,800,000

1,800,000

1,800,000

1,800,000

1,800,000

400,000

400,000

400,000

400,000

Mizuho Bank, Ltd.

400,000

400,000

Mitsubishi UFJ Trust and Banking
Corporation

400,000

400,000

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

Sep. 30, 2013

Mitsubishi UFJ Trust and Banking
Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
Dec. 3, 2012

Average
Interest
Rate (%)(Note 1)

Date of
Repayment

1.00900

Aug. 27,2015

1.00000

Dec. 26,2015

1.11700

Jun. 26,2016

0.69000

Feb. 26,2017

0.56182

Aug. 26,2017

1.08500

Aug. 27,2017

1.12013

Feb. 27,2018

0.99000

Aug. 26,2018

1.16500

Nov. 26,
2019

Taiyo Life Insurance Company

May 23, 2013

1,000,000

1,000,000

1.48625

The Dai-Ichi Life Insurance Company,
Limited

Sep. 30, 2013

800,000

800,000

1.28277

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000

1,000,000

Sumitomo Mitsui Banking Corporation

1,000,000

1,000,000

1,000,000

1,000,000

Mitsubishi UFJ Trust and Banking
Corporation

Oct. 25, 20131.18000

Sumitomo Mitsui Trust Bank, Limited

600,000

600,000

Mizuho Bank, Ltd.

600,000

600,000

Mizuho Trust & Banking Co., Ltd.

500,000

500,000- 27 -

May 27,2020
Aug. 26,
2020

Aug. 26,
2020

Method of
Repayment

Use ofBorrowings

Note

Balloonpayment(Note 4)

Unsecured/
UninsuredFinancial Institutions

Date Borrowed

Outstanding
as of Nov.
30, 2014(¥000)

Outstanding
as of Jun.
1, 2014(¥000)

Average
Interest
Rate (%)(Note 1)

Nippon Life Insurance Company

Oct. 25, 2013

500,000

500,000

1.15566

Taiyo Life Insurance Company

Feb. 27, 2014

2,000,000

2,000,000

1.17750

Mizuho Bank, Ltd.

May 23, 2013

1,000,000

1,000,000

1.68200

Development Bank of Japan, Inc.

May 23, 2013

3,500,000

3,500,000

1.62500

The Nomura Trust and Banking Co., Ltd.

Feb 27, 2014

2,700,000

2,700,000

1.24100

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000

1,000,000

Sumitomo Mitsui Banking Corporation

1,000,000

1,000,000

1,500,000

1,500,000

Mitsubishi UFJ Trust and Banking
Corporation

Feb 27, 2014

Sumitomo Mitsui Trust Bank, Limited

500,000

500,000

Mizuho Bank, Ltd.

500,000

500,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

100,000-

100,000-

Sumitomo Mitsui Trust Bank, Limited

1,780,000-

Mizuho Bank, Ltd.

1,000,000-

Sumitomo Mitsui Banking Corporation
Sep. 5, 2014

1.31850

Date of
Repayment

Method of
Repayment

Use ofBorrowings

Note(Note 4)

Unsecured/
UninsuredAug. 26,2020
Feb. 26,2021
May 27,2021
May 27,2021
Aug. 26,2021

Feb. 26,2022

1.19700

Aug. 26,
2022

Balloonpayment

Development Bank of Japan, Inc.

Aug. 27, 2009

1,120,000

1,160,000

2.10000(Note 2)

(Note 2)Development Bank of Japan, Inc.

Feb. 26, 2010

1,450,000

1,500,000

2.03000(Note 3)(Note 3)

Subtotal

59,240,000

65,300,000

Total

76,820,000

79,750,000

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, whichwere 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.

3. STATUS OF INVESTMENT CORPORATION BONDS
The status of investment corporation bonds issued as of November 30, 2014 is as follows.
Name of Bonds

Issue Date

Balance as of
Nov. 30, 2014(¥ mln)Balance as of
May 31, 2014(¥ mln)First Series Unsecured Investment
Feb. 25, 2011
5,000
Corporation Bonds
Second Series Unsecured Investment
Feb. 24, 2012
5,000
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
(%)

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.

- 28 -

Maturity Date

Method of
Repayment

Use ofProceeds

Note

Balloonpayment(Note 1)

(Note 2)

Trading during the 16th Fiscal Period
1. STATUS OF REAL ESTATES AND ASSET-BACKED SECURITIES TRADING
Acquisition
Type of Asset

Name of Property

Date

Transfer

Price (¥000)

Price (¥000)

Date(Note 1)

Gain
(Loss)(¥000)

Book
Value(¥000)(Note 2)

Real Estate

URBAN STAGE Minami Gyotoku IV－－

Jun. 30, 2014

256,840

243,476

6,193

Real Estate

URBAN STAGE Komazawa－－

Nov. 27 2014

461,000

399,641

46,640Real Estate

URBAN STAGE Minami Gyotoku Ⅱ－－

Nov. 28 2014

240,349

278,483-45,281958,189921,601

7,551

－

Total

Note 1: “Transfer Price” do not include various costs (intermediary fees, taxes and duties, etc.) required for transfer 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: For transfer, other sales expenses in addition to the above have been incurred, and “Gain (Loss)” is inclusive of this amount.

2. STATUS OF OTHER ASSETS
Not applicable. In addition, the Company’s assets other than the above mentioned properties and asset-backed securities, aremostly 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 1)URBAN STAGE Minami Gyotoku IV

Jun. 30 2014

256,840

218,000

Transfer

Real Estate
Real Estate

URBAN STAGE Komazawa

Nov. 27 2014

461,000

346,000

Transfer

Real Estate

URBAN STAGE Minami Gyotoku Ⅱ

Nov. 28 2014

240,349

231,000

Transfer

Note 1: “Transfer Price” do not include various costs (intermediary fees, taxes and duties, etc.) required for transfer 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).

(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 were conducted by Akira Sugai C.P.A. Office subject to the requirement by Article 201 of the Investment Trust Act.
For the 16th fiscal period (from June 1, 2014 to November 30, 2014), three interest-rate swap transactions were 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 financial product or index, the trading period, and the contents of the relevant derivatives transactions. The investigation
report has been received.

4. TRANSACTIONS WITH RELATED PARTIES(1) Transactions
Not applicable.
(2) Fees Paid to Related Parties
Table of fees paid to related parties during the 16th fiscal period is as follows.
Item
Real estate, etc. intermediary fees
Contract-out fees
Property management fees
Commission
Advertising

Amount Paid (A)(¥000)Name of Related Party
Nomura Real Estate Urban Net Co., Ltd.
Nomura Real Estate Partners Co., Ltd.
Nomura Real Estate Partners Co., Ltd.
Nomura Real Estate Partners Co., Ltd.
Nomura Real Estate Urban Net Co., Ltd.

- 29 -

28,925
204,447
278,92295,756
2,022

Total Amount Paid
(B)(¥000)
15,035
158,844
223,264
1,349
500

Portion(A) / (B)
(%)
52.0%
77.7%
80.0%
1.4%
24.7%

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 the Investment Trusts Association, Japan.

In addition, the following are the property management fees paid to related party Nomura Real Estate Partners Co., Ltd.
shown as a breakdown by property.
Property Name

Property Management Fees(¥000)PROUD FLAT Shirokane Takanawa
PROUD FLAT Yoyogi Uehara
PROUD FLAT Hatsudai
PROUD FLAT Shibuya Sakuragaoka
PROUD FLAT Gakugei Daigaku
PROUD FLAT Meguro Gyoninzaka
PROUD FLAT Sumida Riverside
PROUD FLAT Kagurazaka
PROUD FLAT Waseda
PROUD FLAT Shinjuku Kawadacho
PROUD FLAT Sangen Jaya
PROUD FLAT Kamata
PROUD FLAT Kamata II
PROUD FLAT Shinotsuka
PROUD FLAT Kiyosumi Shirakawa
PROUD FLAT Monzen Nakacho II
PROUD FLAT Monzen Nakacho I
PROUD FLAT Fujimidai
PROUD FLAT Asakusa Komagata
PROUD FLAT Yokohama
PROUD FLAT Kamioooka
PROUD FLAT Tsurumi II
PRIME URBAN Azabu Juban
PRIME URBAN Akasaka
PRIME URBAN Tamachi
PRIME URBAN Shibaura LOFTPRIME URBAN Hatagaya
PRIME URBAN Yoyogi
PRIME URBAN EbisuⅡ
PRIME URBAN Bancho
PRIME URBAN Chiyoda Fujimi
PRIME URBAN Iidabashi
PRIME URBAN Ebisu
PRIME URBAN Naka Meguro
PRIME URBAN Gakugei Daigaku
PRIME URBAN Senzoku
PRIME URBAN Meguro Riverside
PRIME URBAN Meguro Ohashi Hills
PRIME URBAN Meguro Aobadai
PRIME URBAN Gakugei DaigakuⅡ
PRIME URBAN Kachidoki
PRIME URBAN Shinkawa
PRIME URBAN Nihonbashi Yokoyamacho
PRIME URBAN Nihonbashi Hamacho
PRIME URBAN Hongo Ikizaka
PRIME URBAN Hakusan
PRIME URBAN Yotsuya Gaien Higashi
PRIME URBAN Naka Ochiai
PRIME URBAN Ochiai
PRIME URBAN Nishi Shinjuku I
PRIME URBAN Nishi Shinjuku II
PRIME URBAN Shinjuku Naitomachi
PRIME URBAN Nishi Waseda
PRIME URBAN Shinjuku Ochiai
PRIME URBAN Kagurazaka
PRIME URBAN Roka Koen
PRIME URBAN Kamiuma

4,942
1,423
1,060
1,046
1,532
1,520
4,162
1,860
1,992
1,549
2,160
1,890
6,210
1,460
613
1,127
2,001
1,564
4,014
3,940
7,754
2,488
1,870
1,286
1,854
3,037
594
892
1,683
1,796
1,201
2,995
2,943
2,022
1,259
704
729
5,807
1,301
1,862
6,347
2,278
6,520
2,032
1,047
1,545
2,835
884
684
2,790
1,543
910
1,312
983
3,488
857
1,955

- 30 -

Property Name

Property Management Fees(¥000)
1,165
1,503
820
431
1,271
1,602
992
487
881
1,619
2,178
1,267
1,088
3,236
2,799
1,822
1,277
1,497
1,044
848
1,863
580
1,293
985
5,693
4,887
1,814
680
921
1,675
718
1,335
1,180
1,478
1,098
743
1,885
964
3,108
5,060
2,370
1,398
707
2,277
3,249
2,066
1,064
1,049
547
1,349
950
548
735
1,458
629
1,274
1,513
4,347
1,051
639
49

PRIME URBAN Sangen JayaⅢ
PRIME URBAN Chitose Karasuyama
PRIME URBAN Sangen Jaya II
PRIME URBAN Karasuyama
PRIME URBAN Sangen Jaya
PRIME URBAN Minami Karasuyama
PRIME URBAN Karasuyama Galleria
PRIME URBAN Karasuyama Court
PRIME URBAN Kamikitazawa
PRIME URBAN Chitose Funabashi
PRIME URBAN Yoga
PRIME URBAN Shinagawa Nishi
PRIME URBAN Oimachi
PRIME URBAN Osaki
PRIME URBAN Oimachi II
PRIME URBAN Yukigaya
PRIME URBAN Omori
PRIME URBAN Denenchofu Minami
PRIME URBAN Nakano
PRIME URBAN Nakano Kamitakada
PRIME URBAN Takaido
PRIME URBAN Nishi Ogikubo
PRIME URBAN Otsuka
PRIME URBAN Komagome
PRIME URBAN Ikebukuro
PRIME URBAN Monzen Nakacho
PRIME URBAN Kameido
PRIME URBAN Sumiyoshi
PRIME URBAN Mukojima
PRIME URBAN Kinshi Koen
PRIME URBAN Kinshicho
PRIME URBAN Hirai
PRIME URBAN Kasai
PRIME URBAN Kasai II
PRIME URBAN Kasai East
PRIME URBAN Ekoda
PRIME URBAN Itabashi Kuyakushomae
PRIME URBAN Asakusa
PRIME URBAN Machiya South Court
PRIME URBAN Musashi Koganei
PRIME URBAN Musashino Hills
PRIME URBAN Koganei Honcho
PRIME URBAN Hino
PRIME URBAN Kumegawa
PRIME URBAN Musashi Kosugi comodo
PRIME URBAN Kawasaki
PRIME URBAN Shinyurigaoka
PRIME URBAN Tsurumi Teraya
PRIME URBAN Urayasu II
PRIME URBAN Urayasu
PRIME URBAN Gyotoku I
PRIME URBAN Minami Gyotoku III
PRIME URBAN Gyotoku II
PRIME URBAN Gyotoku Ekimae
PRIME URBAN Gyotoku EkimaeⅡ
PRIME URBAN GyotokuⅢ
PRIME URBAN Nishi Funabashi
PRIME URBAN Kawaguchi
URBAN STAGE Komazawa
URBAN STAGE Minami Gyotoku Ⅱ
URBAN STAGE Minami Gyotoku Ⅳ- 31 -

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
subsidiary business 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, 2014.

- 32 -

Other Information
1. NOTICE① General Unitholders Meeting
The Company’s 5th General Unitholders Meeting was held on July 31, 2014.
Proposal

Partial change of the
Articles of Incorporation

Election of one executive
director
Election of one substituteexecutive director
Election of two supervisory
directors
Election of one substitutesupervisory director

Overview
Changes were made to the Articles of Incorporation for the following reasons:・With a law on revision of the Investment Trust Law being passed by approval in the Diet,
effective June 12, 2013, required amendments (establishment of new provision regarding
purchase of own investment units, amendment of provision to enable omission of public noticein procedures for convocation of general unitholders meetings, establishment of new provision
for the record date concerning exercise of voting rights at general unitholders meetings, etc.)
were made.
・A new provision to provide that the period that a resolution pertaining to the election ofsubstitute directors shall, in principle, be the same as the term of office of the directors being
substituted was established.
・An amendment was made to the deadline for dispatch of the notice of convocation of meetingsof the Board of Directors to allow the period to be shortened without the consent of all
executive directors and supervisory directors when there is an urgent necessity.
・With revision of the Ordinance for Enforcement of the Law Concerning Investment Trusts andInvestment Corporations, amendments were made to provide that the Company’s purpose shallbe to manage assets mainly as investment in real estate, etc. assets specified in the Ordinancefor Enforcement of the Law Concerning Investment Trusts and Investment Corporations.
・Alteration of wording, etc. was implemented with The Investment Trusts Association, Japanmaking the transition to a general incorporated association.
・Required changes were made to the cash distribution policy from the perspective of clarificationof content and response to and ensuring compliance with cases where laws and regulations andthe rules of The Investment Trusts Association, Japan are revised, etc.
・Required changes were made to the standards for asset management fees payable to the asset
management company from the perspective of standardization of expressions and clarificationof content.
・In addition to the above, organization of clauses, alteration of wording, etc. were implemented
as necessary.
Masatomi Natsume was elected as Executive Director. His term of office is two years from
August 4, 2014 (Note).
Shozo Matsumura was elected as Substitute Executive Director (Note).
Eitoku Aikawa and Motoharu Yokose were elected as supervisory directors. Their term of office
is two years from August 4, 2014.
Saneaki Ichijo was elected as Substitute Supervisory Director.

(Note) Masatomi Natsume resigned as Executive Director of the Company on September 30, 2014 and Shozo Matsumura, who was a Substitute Executive
Director, was newly appointed as the Company’s Executive Director on the same day. The term of office of Executive Director Shozo Matsumura isequivalent to the remaining term of the previous Executive Director, Masatomi Natsume.

② Board of Directors’ Meeting
Approval date

Subject

June 18, 2014

Amendment of the AssetManagement Consignment
Agreement

Overview
Changes were made to the standards for asset management fees
payable to the asset management company stipulated in the AssetManagement Consignment Agreement concluded with the asset
management company on August 3, 2006 from the perspective ofstandardization of expressions and clarification of content.

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

3. STATUS OF COMPANIES OWNING REAL ESTATE OVERSEAS AND OF SUCH REAL ESTATE
Not applicable.

- 33 -

4. OTHER MATTERS
From 1 page to 34 pages of this report, the numbers of amount below unit are truncated and the numbers in percentage arerounded to unit unless otherwise mentioned specifically.

- 34 -

Financial Section

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

36
38
39
40
41

- 35 -

Balance Sheet
As of November 30, 2014

Thousands of Yen
As of May 31, 2014

¥8,678,028¥9,965,426

Rental receivables

29,62629,899Other current assets

66,591

88,526

Allowance for doubtful accounts

(603)

(95)

8,773,642

10,083,756

Land

88,481,743

89,010,763

Buildings and structures

78,508,908

78,833,006

Machinery and equipment

1,086,014

1,085,640

Tools, furniture and fixtures

233,426

190,292

3,045-

168,313,136

169,119,701(12,283,591)(11,326,578)

156,029,545

157,793,123

Intangible assets

1,016

1,538

Security deposits

10,87910,879Long-term prepaid expenses

11,53018,513

Deferred investment corporation bond issuance costs

25,43232,702

48,85763,632¥164,852,044¥167,940,511

ASSETS
Current Assets:
Cash and bank deposits

Total current assets

Property and Equipment, at Cost:

Construction in progress
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.

- 36 -

As of November 30, 2014

Thousands of Yen
As of May 31, 2014

Trade accounts payable¥267,594¥313,874

Other accounts payable341,726

295,373

17,580,000

14,450,000

115,149

115,671881

828

Accrued consumption taxes

8,832

51,066

Rent received in advance702,508

725,085

Other current liabilities

6,777

14,40319,023,467

15,966,300

Investment corporation bonds

10,000,000

10,000,000

Long-term debt

59,240,000

65,300,000

Security deposits from tenants

1,440,198

1,447,569

Total long-term liabilities

70,680,198

76,747,569

Total Liabilities

89,703,665

92,713,869

73,231,054

73,231,054

40,00040,000Retained earnings

1,877,325

1,955,588

Total surplus

1,917,325

1,995,588

Total unitholders’ equity

75,148,379

75,226,642

Total Net Assets

75,148,379

75,226,642¥164,852,044¥167,940,511

LIABILITIESCurrent Liabilities:

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

Total current liabilities

Long-term Liabilities:

NET ASSETS
Unitholders’ Equity:
Unitholders’ capital
Surplus
Voluntary reserve
Reserve for reduction entry

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

- 37 -

Statement of Income and Retained Earnings
Thousands of Yen
For the period
from June 1, 2014
to November 30, 2014

For the period
from December 1, 2013
to May 31, 2014

Operating Revenues and Expenses
Operating Revenues:
Real estate rental revenues
Gain on sales of real estate¥5,427,985

Operating Expenses:
Real estate rental expenses
Loss on sales of real estate
Asset management fees
Asset custody fee
Administrative service fees
Provision of allowance for doubtful accounts
Bad debts expenses
Other operating expenses¥5,556,649

52,83337,3655,480,818

5,594,014

2,353,783

2,453,509

45,282-

397,391

399,676

15,945

15,952

26,171

24,072

603

95

448

281

218,010

186,725

3,057,633

3,080,310

2,423,185

2,513,704

862

734

3,127

2,550

504

728

110

162

4,603

4,174

458,481464,895

23,71630,52355,92956,071

7,270

7,270

4,275

2,622

549,671

561,381

Ordinary Income

1,878,117

1,956,497

Income before Income Taxes

1,878,117

1,956,497

1,056

977

(165)

(3)

1,877,226

1,955,523

99

65¥1,877,325¥1,955,588

Operating Profit

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
Other non-operating expenses

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.

- 38 -

Statement of Changes in Net Assets
For the period from June 1, 2014 to November 30, 2014
Thousands of Yen

Unitholders’ Equity
Surplus
Voluntary
Reserve
Reserve for
Reduction
Entry

Unitholders’CapitalUnits

Retained
Earnings

Total Surplus

Total
Unitholders’EquityTotal
Net Assets

Balance as of June 1, 2014

160,800¥73,231,054¥40,000¥1,955,588¥1,995,588¥75,226,642¥75,226,642

Cash distribution paid

-

-

-

(1,955,489)(1,955,489)(1,955,489)(1,955,489)

Net income

-

-

-

1,877,226

1,877,226

1,877,226

1,877,226

160,800¥ 73,231,054¥40,000¥1,877,325¥1,917,325¥75,148,379¥75,148,379

Balance as of November 30, 2014

For the period from December 1, 2013 to May 31, 2014
Thousands of Yen

Unitholders’ Equity
Surplus

Balance as of December 1, 2013

Voluntary
Reserve
Reserve for
Reduction
Entry

Unitholders’CapitalUnits

Retained
Earnings

Total Surplus

Total
Unitholders’EquityTotal
Net Assets

160,800¥73,231,054¥40,000¥1,965,202¥2,005,202¥75,236,256¥75,236,256

Cash distribution paid

-

-

-

(1,965,137)(1,965,137)(1,965,137)(1,965,137)

Net income

-

-

-

1,955,523

1,955,523

1,955,523

1,955,523

160,800¥73,231,054¥40,000¥1,955,588¥1,995,588¥75,226,642¥75,226,642

Balance as of May 31, 2014

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

- 39 -

Statement of Cash Flows
Thousands of Yen
For the period
from June 1, 2014
to November 30, 2014

For the period
from December 1, 2013
to May 31, 2014

Cash Flows
Cash Flows from Operating Activities
Income before income taxes¥1,878,117¥1,956,497

Depreciation

1,052,024

1,053,356

7,270

7,270

Amortization of investment corporation bonds issuance costs
Interest income

(862)

(734)

Interest expense

514,409

520,966

Increase (Decrease) in allowance for doubtful accounts

508

95

Decrease (Increase) in rental receivables

274

10,346-

13,692

Decrease (Increase) in prepaid expenses(6,331)

18,261

Increase (Decrease) in trade accounts payable(46,280)

54,290

Increase (Decrease) in other accounts payable

25,773(21,509)

Increase (Decrease) in accrued consumption taxes(42,234)

51,066

Increase (Decrease) in rent received in advance(22,576)

2,678

Decrease in tangible fixed assets due to sales

921,601

211,195

Decrease (Increase) in consumption taxes receivable

Decrease in tangible fixed assets in trust due to sales
Other
SubtotalInterest received
Interest paid
Income taxes paid-

1,392,443

29,606(25,879)

4,311,299

5,244,033

862

734

(514,931)(534,897)(1,003)(902)

3,796,227

4,708,968

Payments for purchases of property and equipment(191,062)(247,068)

Reimbursement of security deposits to tenants(122,797)(186,991)

Proceeds from security deposits from tenants

115,425

151,111-(60)(198,434)(283,008)

Proceeds from long-term debt

3,730,000

9,200,000

Repayment of long-term debt

(6,660,000)(9,290,000)

-

(10)

(1,955,191)(1,964,647)(4,885,191)(2,054,657)

Net Increase (Decrease) in Cash and Cash Equivalents(1,287,398)

2,371,303

Cash and Cash Equivalents at Beginning of Period

9,965,426

7,594,123

Cash and Cash Equivalents at End of Period¥8,678,028¥9,965,426

Net cash provided by (used in) operating activities

Cash Flows from Investing Activities

Payments for security deposits
Net cash provided by (used in) investing activities

Cash Flows from Financing Activities

Payments of investment units issuance costs
Distributions to unitholders
Net cash provided by (used in) financing activities

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

- 40 -

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 TrustAct”) of Japan. On February 14, 2007, the Company was listed on the Tokyo Stock Exchange as the 41st J-REIT and started operations
on the following day. As of November 30, 2014, the Company owned a portfolio of 150 residential rental properties containing an
aggregate of approximately 272, 627.52 square meters of leasable area and leased space to 150 tenants.

2.

BASIS OF PRESENTATIONThe Company maintains its accounting records and prepares its financial statements in accordance with accounting principles generally
accepted in Japan (“Japanese GAAP”), including provisions set forth in the Investment Trust Act of Japan, the Companies Act of Japan, theFinancial Instruments and Exchange Act of Japan and related regulations, which are different in certain respects as to the application anddisclosure 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 have been 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 andrecorded by investigating collectability based on historical loan loss ratios for general receivables and on a case-by-case examination for
doubtful and other specific 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 andexpenses 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- 41 -

over the 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 to property 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 theacquisition cost of the property. No capitalized property related taxes were incurred for the six-month periods ended November 30, 2014
and May 31, 2014.
Income taxes
Deferred tax assets and liabilities are computed based on the differences between the financial statements and income tax bases of assets
and liabilities 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 tochanges in interest rates. The Company defers recognition of gains or losses resulting from changes in the fair value of interest-rate swap
contracts which meet 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 that meet 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, 2014 and May 31, 2014 consist of the following:Thousands of Yen
As of November 30, 20145.

As of May 31, 2014

Cash and bank deposits¥8,678,028¥9,965,426

Cash and cash equivalents¥8,678,028¥9,965,426

SCHEDULE OF PROPERTY AND EQUIPMENT
Property and equipment as of November 30, 2014 and May 31, 2014 consist of the following:Thousands of Yen
As of November 30, 2014
Acquisition costs
Land¥73,930,463

Buildings and structures
Accumulated depreciation
Machinery and equipment
Accumulated depreciation

As of May 31, 2014

Book value

59,721,304(9,156,089)¥73,800,621

69,780,590

1,035,973

60,624,501

1,035,599
686,988(314,772)(61,941)

144,652(53,995)

112,576

3,045

3,045

-

-

Land in trust

14,551,280

14,551,280

15,210,142

15,210,142

Buildings and structures in trust

8,787,361

Tools, furniture and fixtures
Accumulated depreciation
Construction in progress

Accumulated depreciation
Machinery and equipment in trust(348,985)

Book value¥73,800,621

69,721,547(10,000,243)

Acquisition costs¥73,930,463

206,593(1,838,138)

Accumulated depreciation(29,083)
26,833

Accumulated depreciation
Total

166,571

9,052,416
6,949,223

50,041Tools, furniture and fixtures in trust

720,827(1,768,943)

7,283,473

50,041
20,958(27,120)

22,921

23,721(5,201)

21,632(5,659)18,062¥156,029,545¥156,029,545¥157,793,123¥157,793,123- 42 -

6.

SHORT-TERM DEBT
Short-term debt as of November 30, 2014 and May 31, 2014 consist of the following:
As of May 31, 2014

As of November 30, 2014
Amount(Thousands of Yen)

Amount(Thousands of Yen)

Weighted-averageinterest rate

Weighted-averageinterest rate
(Note 1)

(Note 1)

Unsecured loans from banks due on August 27, 2014--

¥3,170,000

0.71000%

Unsecured loans principally from banks due on September 5, 2014--

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%--

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

80,0002.10000%

80,0002.10000%

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

100,000

2.03000%

100,000

2.03000%

Total¥14,450,000¥17,580,000

Note 1: 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.
Note 2: 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.
Note 3: 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, 2014 and May 31, 2014 consist of the following:
As of May 31, 2014

As of November 30, 2014
Amount(Thousands of Yen)

Amount(Thousands of Yen)

Weighted-averageinterest rate

(Note 1)

(Note 1)

Unsecured loans from banks due on August 27, 2015

Weighted-averageinterest rate--

¥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 from banks due on February 26, 2017

1,800,000

0.69000%

1,800,000

0.69000%

Unsecured loans from a bank due on August 26, 2017

750,000

0.56182%--

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

3,920,000

1.08500%

3,920,000

1.08500%

5,420,000

1.12013%5,420,000

1.12013%

Unsecured loans from banks due on August 26, 2018

5,400,000

0.99000%

5,400,000

0.99000%

Unsecured loans from banks due on November 26, 20191,600,000

1.16500%

1,600,000

1.16500%

Unsecured loans from an insurance company due on May 27, 2020

1,000,000

1.48625%

1,000,000

1.48625%

Unsecured loans from an insurance company due on August 26, 2020

800,000

1.28277%

800,000

1.28277%

Unsecured loans from banks due on August 26, 2020

4,700,000

1.18000%

4,700,000

1.18000%

Unsecured loans from an insurance company due on August 26, 2020

500,000

1.15566%

500,000

1.15566%

Unsecured loans from an insurance company due on February 26, 2021

2,000,000

1.17750%

2,000,000

1.17750%

Unsecured loans from a bank due on May 27, 2021

1,000,000

1.68200%

1,000,000

1.68200%

Unsecured loans from a bank due on May 27, 2021

3,500,000

1.62500%

3,500,000

1.62500%

Unsecured loans from a bank due on August 26, 2021

2,700,000

1.24100%

2,700,000

1.24100%

Unsecured loans from banks due on February 26, 2022

4,500,000

1.31850%

4,500,000

1.31850%

Unsecured loans from banks due on August 26, 2022

2,980,000

1.19700%--

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

1,120,000

2.10000%

1,160,000

2.10000%

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

1,450,000

2.03000%

1,500,000

2.03000%

Total¥59,240,000¥65,300,000

Note 1: 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.

- 43 -

Note 2: 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.
Note 3: 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

8.

1-2 years
15,320,000

2-3 years
7,820,000

Thousands of Yen
4-5 years
1,600,000

3-4 years
10,820,000

INVESTMENT CORPORATION BONDS
Details of investment corporation bonds outstanding are summarized as follows:
As of May 31, 2014

As of November 30, 2014
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

9.

Within a year－

1-2 years
5,000,000

2-3 years
5,000,000

3-4 years－

Thousands of Yen
4-5 years－

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 forthin the Investment Trust Act.

10. PER UNIT INFORMATIONThe net asset values per unit and the net income per unit as of November 30, 2014 and May 31, 2014 were as follows:

Net asset values per unit
Net income per unit

For the period
from June 1, 2014
to November 30, 2014
¥467,340¥11,674

For the period
from December 1, 2013
to May 31, 2014
¥467,827¥12,161

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, 2014
to November 30, 2014
¥1,877,226¥1,877,226
160,800- 44 -For the period
from December 1, 2013
to May 31, 2014
¥1,955,523¥1,955,523
160,800

11. RELATED PARTY TRANSACTIONS
For the periods from June 1, 2014 to November 30, 2014 and from December 1, 2013 to May 31, 2014
Parent company and major corporate unitholders
Not applicable
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 thesix-month periods ended November 30, 2014 and May 31, 2014. 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 ¥1,865,280 thousandand ¥1,955,489 thousand for the six-month periods ended November 30, 2014 and May 31, 2014, respectively, such distributions weretreated 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, 2013
from June 1, 2014
to May 31, 2014
to November 30, 2014
Statutory tax rate
36.59%
34.16%
Deductible cash distributions(36.57)(33.93)
Other
0.03(0.18)
Effective tax rate
0.05%
0.05%

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 of investment corporation bonds and issuance of investment units. In financing through interest-bearing debt, to secure stablefinancing capability and reduce future risks of rising interest rates, the Company’s investment policy is to secure longer-term, fixed-rateborrowings with well-diversified maturities.
The Company enters into derivative transactions only for the purpose of reducing risk of future interest rate fluctuations and does notengage 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 ofdebts and redemption of investment corporation bonds. The Company is exposed to liquidity risk of being unable to meet its obligations onscheduled due dates. The Company controls and limits such risk by diversifying not only the financial institutions, but also the type offinancing to include the effective 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 effectof 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 ahedging instrument to reduce the market risk under floating-rate debts by swapping such floating-rate interest payments for fixed-rateinterest 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 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,
fair value 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.

- 45 -

Fair Value of Financial Instruments
For the period from June 1, 2014 to November 30, 2014
The following table summarizes the carrying value and the estimated fair values of financial instruments as of November 30, 2014.
Thousands of Yen

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

Carrying value (Note 1)¥8,678,028(17,580,000)(10,000,000)(59,240,000)－

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

Fair value (Note 1)¥8,678,028(17,634,302)(10,132,475)(60,080,734)－

Difference－¥54,302132,475
840,734－

For the period from December 1, 2013 to May 31, 2014
The following table summarizes the carrying value and the estimated fair values of financial instruments as of May 31, 2014.
Thousands of Yen

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

Carrying value (Note 1)¥9,965,426(14,450,000)(10,000,000)(65,300,000)－

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

Fair value (Note 1)¥9,965,426(14,498,646)(10,161,385)(65,982,297)－

Difference－¥48,646
161,385
682,297－

Note 1: The numbers in parenthesis indicate liabilities.
Note 2: 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 is reported 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 andinterest payments net of any 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-rate long-term debt is determined by discounting the sum of its principal and interest payments at a rate reasonably estimatedto 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.”
Note 3: Redemption schedule for cash and bank deposits as of November 30, 2014

Cash and bank deposits
Total

Due within one
year¥8,678,028

After one year,
within two years－

After two years,
within three years－

After three years,
within four years－¥8,678,028

－

－

－

Due within one
year¥9,965,426

After one year,
within two years－

After two years,
within three years－

After three years,
within four years－¥9,965,426

－

－

－

Thousands of Yen
After four years,
After five years
within five years
－
－
－

－

Redemption schedule for cash and bank deposits as of May 31, 2014

Cash and bank deposits
Total- 46 -

Thousands of Yen
After four years,
After five years
within five years
－
－
－

－

Note 4: Redemption schedule for investment corporation bonds and debt as of November 30, 2014
Due within one
year

After one year,
within two years

After two years,
within three years

After three years,
within four years

Thousands of Yen
After four years,
After five years
within five years¥17,580,000

－

－

－

－

Investment corporation bonds－¥5,000,000¥5,000,000

－

－

－

Long-term debt－

15,320,000

7,820,000¥10,820,000¥1,600,000¥23,680,000¥17,580,000¥20,320,000¥12,820,000¥10,820,000¥1,600,000¥23,680,000

After two years,
within three years

After three years,
within four years

Current portion of long-term debt

Total

－

Redemption schedule for investment corporation bonds and debt as of May 31, 2014
Due within one
year

After one year,
within two years

Thousands of Yen
After four years,
After five years
within five years¥14,450,000

－

－

－

－

Investment corporation bonds－¥5,000,000¥5,000,000

－

－

－

Long-term debt－

14,580,000

13,680,000¥9,340,000¥5,400,000¥22,300,000¥14,450,000¥19,580,000¥18,680,000¥9,340,000¥5,400,000¥22,300,000

Current portion of long-term debt

Total

－

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
table summarizes the carrying value and the estimated fair value of these properties.
Thousands of Yen
For the period
from June 1, 2014
to November 30, 2014

For the period
from December 1, 2013
to May 31, 2014

Carrying value
Balance at beginning of the period¥157,793,123¥160,228,832

Change during the period(1,763,578)(2,435,709)

Balance at end of the period

156,029,545

157,793,123

Fair value¥156,590,000¥156,322,000
Note1: The carrying value represents the acquisition cost less accumulated depreciation.
Note2: The major decrease in the carrying value during the period ended November 30, 2014 was mainly due to depreciation and the sale of URBAN
STAGE Minami Gyotoku IV (¥243,477 thousand), URBAN STAGE Komazawa (¥399,641 thousand) and URBAN STAGE Minami Gyotoku II(¥278,483 thousand). The major decrease in the carrying value during the period ended May 31, 2014 was mainly due to the sale of URBAN STAGE
Ikegami (¥1,392,443 thousand) and URBAN STAGE Machiya (¥211,195 thousand).
Note3: The fair value as of November 30, 2014 and May 31, 2014 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, 2014 and May 31, 2014 are presented in “16.
Breakdown of Real Estate Rental Revenues and Expenses.”

15. SEGMENT INFORMATION
For the period from June 1, 2014 to November 30, 2014 and from December 1, 2013 to May 31, 2014
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, geographicalbreakdown of revenues 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 breakdownof property and equipment has been omitted.

- 47 -

3. Information about major clients
Information about major clients for the six-month period ended November 30, 2014 and May 31, 2014 were as follows:
For the six-month period from June 1, 2014 to November 30, 2014
Name of client
Nomura Real Estate Partners Co., Ltd.

Revenues(Thousands of yen)
¥4,138,897

Related segment
Real estate leasing business

For the six-month period from December 1, 2013 to May 31, 2014
Name of client
Nomura Real Estate Partners Co., Ltd.

Revenues(Thousands of yen)
¥4,262,192

Related segment
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, 2014 and May 31, 2014 consist of the following:
For the period
from June 1, 2014
to November 30, 2014
Real estate rental revenues

Thousands of Yen
For the period
from December 1, 2013
to May 31, 2014

¥5,427,985¥5,556,649

5,068,067

5,143,831

4,778,619

4,851,857

289,448

291,974

Other rental revenues

359,918

412,818

Parking revenues

124,612

134,802

Incidental income

160,332

199,126

Other miscellaneous revenues

74,97478,8902,353,783

2,453,509

Property management costs

204,447

207,134

Property management fees

278,923

314,215

Property and other taxes

292,327

263,901

Utility expenses

94,055

109,797

Casualty insurance

7,842

7,958

257,383

300,325

1,052,024

1,053,356

Rental revenues
Rental revenues
Common area charges

Real estate rental expenses

Repairs and maintenance
Depreciation
Other rental expenses
Real estate rental profits

166,782

196,823¥3,074,202¥3,103,140

17. BREAKDOWN OF GAIN AND LOSS ON SALES OF REAL ESTATE
Gain and Loss on sales of real estate for the six-month period ended November 30, 2014 and May 31, 2014 consist of the following:
For the period
from June 1, 2014
to November 30, 2014

Thousands of Yen
For the period
from December 1, 2013
to May 31, 2014

Gain on sales of real estate
Proceeds from sales of real estate¥717,606¥1,678,883

Cost of sales of real estate

643,118

1,603,638

Other related sales expenses

21,65537,880Gain on sales of real estate¥52,833¥37,365

Proceeds from sales of real estate¥240,472-

Cost of sales of real estate

278,483-

Other related sales expenses

7,271

-

Loss on sales of real estate¥45,282-

Loss on sales of real estate

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 residential space. The future minimum rental revenues under existing non-cancelable operating lease agreements as of November
30, 2014 and May 31, 2014 are summarized as follows:

Due within one year
Due after one year
Total

As of November 30, 2014
¥547,770
70,516¥618,286- 48 -

Thousands of Yen
As of May 31, 2014
¥435,377
144,344¥579,721

19. DERIVATIVES AND HEDGE ACCOUNTING
Derivative transactions as of November 30, 2014
(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
55,600,000

39,500,000

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 (Note 2) (ii) Current portion of long-term debt and (iv) Long-term debt”).
Derivative transactions as of May 31, 2014
(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
56,020,000

46,220,000

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 (Note 2) (ii) Current portion of long-term debt and (iv) Long-term debt”).

20. SIGNIFICANT SUBSEQUENT EVENTS
Not applicable- 49 -

Independent Auditor’s Report- 50 -

Business Structure
Asset Management
Company

Asset Custodian
General Administration

The FundAsset
Management
Services
Agreement

Asset Custody
Agreement

Administration ofUnitholders Register
Management ofSpecial Accounts

Administration
Agreement, etc.

Mitsubishi UFJ
Trust and Banking
Corporation

Property
Information

Information & ResearchService Providers

Nomura Real Estate Residential Fund, Inc.

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

Accounting
Service
Agreement

General Administration(Accounting, etc.)

Heiseikaikeisha Tax
Corporation
Unitholders Meeting

Specified Related Party

Board of Directors Meeting

Nomura Real Estate
Holdings, Inc.
Nomura Real Estate
Development Co., Ltd.

Financial Agent
Agreement

AuditorErnst & Young ShinNihon LLC

Nomura Real Estate
Partners Co., Ltd.

General Administration(Financial Agent)

The Bank ofTokyo- Mitsubishi UFJ, Ltd.
Sumitomo Mitsui
Banking Corporation

Debt
FinanceFinancial Institutions, etc.

Investment

Debt
Rent, etc.

Residential Properties(Real Estate Related Assets)

Asset
CapitalInvestment

Property Management
Instructions for
Rent &
Management
Rental Strategies,
Plans for
Repairs, etc.

Repaymentof Principal& Interest

Unitholders

EquityProperty Management
Companies
Select the best property
management companies
for each property

Distribution

Unitholders

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¥73,231,053,636 (as of May 31, 2014)
Number of Units Issued
160,800 (as of May 31, 2014)

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: +81-3-3365-7729

Number of Unitholders
10,595(as of May 31, 2014)- 51 -

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/

後で貼付

Posting the news by year and subject

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

Posting the latest occupancy rates

Disclaimer
This semiannual report includes translations of certain Japanese documents originally filed under the Financial Instruments andExchange Act of Japan. This report was prepared in English solely for the convenience of and reference by readers outside Japan andshould 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
from generally 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 byyour 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 andsafety of the 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.

- 52 -