Eleventh Fiscal Period
November 1, 2008▲

Semi-Annual Report

April 30, 2009

Profile
Nomura Real Estate Office Fund, Inc. (referred to as“Nomura OfficeFund” or the “Company” hereafter) was listed on the Tokyo Stock
Exchange on December 4, 2003 as a real estate investment corporation
formed to own and invest in office properties, subject to the Law
Concerning 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” hereafter), a wholly owned subsidiary of Nomura Real Estate
Holdings, Inc. is in charge of asset management on behalf of Nomura
Office Fund in accordance with the basic investment policy as describedabove. Through coordination with Nomura Real Estate Holdings, Inc. andother group companies, NREAM aims to achieve these goals and more.

Strength of Nomura Office FundJ-REIT with a large-capitalization specialized in office buildings■ Portfolio of 50 properties at a total acquisition price of¥374.5 billion (as of April 30, 2009)■ Market capitalization of ¥155.3 billion (as of April 30, 2009)■ Constituent of MSCI Standard Index
Track records of stable managements■ Eleven consecutive fiscal periods of growth in operating revenues
and net income■ Steady growth in DPU
Collaboration with Nomura Real Estate Group■ NREAM, in charge of the Company’s asset management,
belongs to Nomura Real Estate Group■ Supported by the group companies through provision of sales
information and management expertise
Rated A or more by three domestic and foreign rating agencies
Rating and Investment Information, Inc.

Issuer rating: AA-Standard & Poor’s
Ratings Services

Long-term rating: A
Short-term rating: A-1

Moody’s Investors Service, Inc.

Issuer rating: A2■ Holding to conservative financial strategies

Unit Price (¥)

Operating Revenues (Lth)Market Capitalization (¥ mln)

Net Income (Lth)Cash Distribution per Unit (Rth)(¥ mln)1,600,000
1,400,000

900,000 16,000
750,000

14,000
14,114

14,52015,15015,638 15,905

12,0001,200,000

600,000

1,000,000

450,000

9,810

10,0008,000
6,656

300,000
150,000

400,000
0Dec. 4 Apr. 30 Oct. 29 Apr. 28 Oct. 31 Apr. 28 Oct. 31 Apr. 27 Oct. 31 Apr. 30 Oct. 31 Apr. 30
2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009

13,925(¥)

18,00015,40916,00011,968 12,183

4,531
2,606 2,681

3,484

3,596

4,229 4,466

4,486

4,499

Contents

14,00012,000

6,000

2,000

17,673

5,255

To Our Investors ............................................................ 2

Major Properties .......................................................... 14

Financial Highlights....................................................... 3

Performance Report .................................................... 17

10,000Management Summary of the Eleventh Fiscal Period ... 4

Financial Section ......................................................... 35

5,392 8,000

Portfolio Highlights ..................................................... 10

Profile of the Asset Management Company ............. 48

6,000

Financial Status of the Eleventh Fiscal Period .......... 11

Business Structure ....................................... Back Cover

4,000

Summary of Portfolio Properties ............................... 12

Corporate Data ............................................. Back Cover

7,106

4,000
600,000

10,739 11,090

17,225

8,641

10,273800,000

16,750 16,918 16,923

1,526

0

2,000
1st
2nd
3rd
4th
5th
6th
7th
8th
9th
10th 11th
Period Period Period Period Period Period Period Period Period Period PeriodTo Our Investors

Financial Highlights

Dear Investors,

FINANCIAL SUMMARY

We are delighted to be able to present to you the financial results for the eleventh fiscal period (ended April 30, 2009)
and report on our activities during the period herein.
We booked operating revenues for this period of ¥15,409 million, current profits of ¥5,393 million, and net
income of ¥5,392 million. Cash distribution per unit was ¥17,673.
Some of the major developments during the eleventh fiscal period included new investments in

11th Period

10th Period

9th Period

8th Period

7th Period

from Nov. 1, 2008
to Apr. 30, 2009

from May 1, 2008
to Oct. 31, 2008

from Nov. 1, 2007
to Apr. 30, 2008

from May 1, 2007
to Oct. 31, 2007

from Nov. 1, 2006
to Apr. 30, 2007

Operating Revenues¥ mln

15,40913,925

12,183

11,968

11,090Net Operating Income (NOI) (Note 1)¥ mln

10,226

9,927

8,572

8,286

7,763

Current Profits

¥ mln

5,393

5,256

4,500

4,486

4,466

Net Income

¥ mln

5,392

5,255

4,499

4,486

4,466

”PMO Nihonbashi Honcho”, ”NRE Sapporo Building”, ”NRE Higashi-nihonbashi Building”, ”NRE Ueno Building”,

Total Assets¥ mln

409,353

401,684

353,730

326,711315,402”Kichijoji Mark Building”, ”MY Higashi Gotanda Building”, and ”NOF Tenjin-Minami Building.” At the same time, we sold

Unitholders' Capital¥ mln

185,455

185,455

156,767

156,767

156,767”Kita-Sanjo Building”, ”NOF Midosuji Building”, and ”Hiroshima Tatemachi NOF Building.” As a result, the number of

Number of Units Issued

unit

305,123

305,123265,903

265,903

265,903¥625,478625,031

606,488606,510606,315

¥ mln

5,392

5,255

4,499

4,498

4,453

Cash Distribution per Unit¥

17,673

17,225

16,923

16,91816,750Funds from Operation (FFO) per Unit (Note 2)¥

23,48823,22823,06922,71422,509properties in the portfolio now totals 50, with total acquisition price of ¥374.5 billion, promoting further diversification

Net Assets per Unitof the portfolio. And also improved our portfolio quality, reducing the ratio of regional properties from 30.3% toTotal Cash Distribution

26.8%.
Concerning property management, although the occupancy rates in the office leasing market is on a downward
trend due to the uncertain economy, NOF's average occupancy rate remained stable around 95% throughout thisperiod, reaching 96.4% at the end of the period.

Note 1: NOI (Net Operating Income) = Real Estate Rental Revenues − Real Estate Rental Expenses + Depreciation
Note 2: FFO per Unit = (Net Income + Depreciation + Amortization of Investment Corporation Bonds Issuance Costs − Real Estate Sale Profit/Loss) / Number of Units Issued

In terms of financing, the Company has maintained good relationship with financial institutions and secured
stable funding, and continues to maintain a healthy balance sheet.

CHANGES IN KEY FIGURES

We will continue adhering to the conservative investment policies in future.
Lastly, we would like to thank you again for your patronage in the past periods, and would like to ask for yourOperating Revenues (¥ mln)
16,000continued support for the years to come.

Total Assets (¥ mln)
15,40915,000401,684 409,353
400,000

11,968 12,183

13,00017,67318,000500,000

13,92514,00012,000Cash Distribution per Unit (¥)
17,225
16,75016,918 16,923

17,000353,730
315,402326,71116,00011,090300,000

11,00015,00010,0009,000

200,000
7th
Period8th
Period9th
Period10th
Period11th
Period14,0007th
Period8th
Period9th
Period10th
Period11th
Period7th
Period8th
Period9th
Period10th
Period11th
PeriodCHANGES IN UNIT PRICE AND MARKET CAPITALIZATION
Unit Price (¥)

Market Capitalization (¥ mln)
900,000

1,600,000

750,000

1,400,000
Market capitalization (as of Apr. 30, 2009) .......................¥ 155,307 mln
All-time high price ............................................................¥1,560,000 per unit
All-time low price .............................................................¥ 407,000 per unit

Mitsuharu Sato
Executive Director
Nomura Real Estate Office Fund, Inc.

1,200,000

600,000

1,000,000

450,000

800,000

300,000
4th public offering¥926,100
3rd public offering¥740,782

150,000
5th public offering¥756,560

Initial public offering¥500,000
400,000
Dec. 42003

2

2nd public offering¥588,000

600,000

0
Apr. 30
2004

Oct. 29
2004

Apr. 282005

Oct. 312005

Apr. 28
2006

Oct. 312006

Apr. 272007

Oct. 312007

Apr. 30
2008

Oct. 312008

Apr. 30
20093

Sapporo

Management Summary of the Eleventh Fiscal Period

NRE Higashi-nihonbashi Building
Location:

Chuo-ku, Tokyo

Date Acquired:

January 14, 2009
ro

aS

.
tn

Higashi-nihon

usa Line

tr o
bi y
Hi

Higashinihonbashi
Drugstore

To
ei
S

hi
nj
y

uk

uL

NTT
Sotec
Co., Ltd.

in
e

Hamac

ho St

n.

MeijizaaL
ine

Higashi-nihonbashi area.

Central Tokyo / Suburban Tokyo

Nishikawa
SangyoCo.,Ltd.

NipponExpressCo., Ltd.

Me

as manufacturers in Horidomecho/

Fukuokayo

can be expected from tenants such

Nihonbashi
Tax Ofﬁce
HARIO
Glass
Co., Ltd.

bashi Stn.

Shinjuku Line. The stable demand

NRE
Higashi-nihonbashi
Bldg.

Kodemmacho Stn.

k
To

Building”, ”NRE Sapporo Building”, and ”NOF.
tn

yokoyama Station on the Toei

aS

Tokyo

ne
Li

am

Asakusa Line and Bakuro-

Higashi Gotanda Building”, ”Kichijoji Markbuoynihonbashi Station on the Toei

So

ok
-Y

JR

location, located close to Higashi-nihonbashi Building”, ”NRE Ueno Building”, ”MY

price: ¥30.7 billion).

ku

am

ro

The Property has an excellent

in ”PMO Nihonbashi Honcho”, ”NRE Higashi-

Tenjin-Minami Building” (Total acquisitionBaoyToei Asak

In the Eleventh fiscal period, we made new investments

Property Profile

ok
-Y

ku

Acquisition Price: ¥4,060 million
Ba

New Investments

KuritaArt Museum

Ningyocho Stn.

Ikebukuro
NRE Ueno Building

Ueno
NRE Higashi-nihonbashi Building

Shinjuku

PMO Nihonbashi Honcho

Tokyo

PMO Nihonbashi Honcho

ShibuyaLocation:

Chuo-ku, Tokyo

Date Acquired:

November 5, 2008

ShinagawaAcquisition Price: ¥5,000 million

Property Profile
The Property, located in Nihonbashi area, a traditional office
district of central Tokyo, has excellent access to multiple
stations and completed in June 2008. It is a high quality andvalue-added office building equivalent to a large-scale officebuilding, in terms of design, function, security system, etc. andthe first Property of PMO (Premium Midsize Office), the new
office building brand developed by Nomura Real Estate
Development Co., Ltd.

NRE Ueno Building
Location:

Taito-ku, Tokyo

Date Acquired:

January 14, 2009

Acquisition Price: ¥7,830 million

Property Profile
The Property has superior location, situated in Ueno/Okachimachi area
including Ueno Station, the terminal station, and Okachimachi Station in theconcentrated commercial district. The excellent location and specifications
enable the Property to meet the tenants in manufacturing, financial
institutions, etc., stably for mid- to long-term.

o
Tok y

ine

Shinobazu Pond

Ueno
Park

ine

Syowa Dori

iya L

tn.

i Ueno Stn.

o Hib

da S

JR L

Keise

Metr

Kan

Dori
isei
a he
Kand

Taito
Ward
Ofﬁce

Ueno Stn.

Iwamotocho
Post Ofﬁce

Ueno
Hospital
Higashi-Ueno
District Center

Marui
City

NIPPON CHEMIPHAR
Tamagawa Bldg.

Eiju
Hospital

Tokyo Metro Hibiya Line

Metropolitan Expr
essw
No.1 Ueno Line ay

NOF Nihonbashi Honcho Building

litan
o po
y
Metr resswa ine
E x p U en o L
1
No.

Kand

e

Mitsukoshimae
Stn.

Nihonbashi Honcho
Post Ofﬁce

Naka-Okachimachi Stn.

tn.

Matsuzakayai Stn.

za Lin

Line

hi S

NRE
Ueno Bldg.

Okachimach

o Gin

4

ob u

bas

Nishimachi
Park

Ueno-hirokoji Stn.

Yushima Stn.

Metr

Kodenmacho
Stn.

on
-Nih
Shin

JR S

TOYO KEIZAI
Honcho Bldg.

o
Tok y

Sumitomo
Mitsui
Banking
Corporation

AmeyaYokocyo

ri
Do

ri
o Do
mon
ana
da K
Kan

JR Line

PMO Nihonbashi Honcho

u
ng
ite
Su

a Stn
.

Mizuho Bank

Toei Oedo Line

Okachimachi
Park

5

Other Cities: Hokkaido Area

MY Higashi Gotanda Building
Location:

Shinagawa-ku, Tokyo

Date Acquired:February 27, 2009

Asahikawa

Acquisition Price: ¥3,010 million
Otaru

Property Profile

NRE Sapporo Building

Sapporo

The Property, an office building completed in 1993, is located in

KushiroTomakomai

Gotanda/Osaki area where redevelopment plans have been
rapidly proceeded. In addition to the demand from tenants in
manufacturing, etc., the demand from tenants looking for the

Hakodate

office near the redeveloped large scale office buildings are
expected.

NRE Sapporo Building

A
ei
To

sa

ku

s

e
in
aL

Abe
Hospital

Epson
ShinagawaAqua Stadium

SeisenUniversity

November 5, 2008

Property Profile

Go
tan
da
.
S tn

Cats
Theater

Kita-ku, Sapporo City

Date Acquired:

Acquisition Price: ¥5,300 million

Embassy ofBrunei

IkegTok yu
ami
Lin

Remy
GotandaLocation:(The Site of Sony Corp.
Redevelopment)

excellent location, is located at 2 minutes

Central Tokyo / Suburban Tokyo

Yodobashi
CameraDaimaru
Dept. Store

Sosei Rio Stn.

Loft Tokyu
Dept. Storeverne
Toho LiiS
tn.

Mitakawide range of tenants.

Line

ak

Ueno

Hokkaido Pref.
Government Ofﬁce

SapporOs

Company can expect stable demand from

Kichijoji Mark Building
Gate City
Osakio Stn.

which is quite rare in Sapporo City, theIkebukuro

Tokyo
Heart Center

Osaki
New City

Asty 45
Ishikari
Subprefectural Ofﬁce

Sapporesystem and the quake-absorbing system

ku
Nambo
SubwayLin

RisshoUniversity

Shinagawa Sports Hills

Osaki
Front Tower

JR Line

JR Tower

walk from Sapporo Station. As it has highspecifications such as the IC card security

Art Village
Osaki

Sapp

Sapporo Chuo
Post Ofﬁce

oro Stn.

SubwayJR

Osaki
Police Station

Sapporo L
Plaza

The Property, an office building with an

MY Higashi Gotanda Bldg.

Joint Government
Building No. 1
NRE Sapporo
Bldg.

Conference Hall of
Hokkaido UniversityeOsakihirokoji Stn.

Panasonic
Electric
Sapporo Bldg.

Hokkaido University

Kita-Sanjo Bldg.

Shinjuku
Tokyo
Shibuya

Other Cities: Kyusyu Area
ShinagawaNOF Tenjin-Minami Building

MY Higashi Gotanda Building

NOF Tenjin-Minami Building

HakataOita

Saga

Kichijoji Mark Building

Kumamoto

Musashino City, Tokyo

Date Acquired:

January 14, 2009

Chuo-ku, Fukuoka City

Date Acquired:

March 27, 2009

Acquisition Price: ¥3,739 million

Nagasaki

Location:

Location:

Property Profile
The Property, completed in February 2008,

Acquisition Price: ¥1,800 million

Miyazakiis adjacent to Tenjin area, the central
business and commercial district in Fukuoka

Property Profile

KagoshimaCity. As the Property is located in the area

The Property has excellent accessibility, located in Kichijoji area, highly

where redevelopment projects of large

concentrated office/commercial district with large population in theoffice buildings are scheduled, it ishinterland. Stable demand from tenants looking for commercial

anticipated that the area would become aoperations for residents/companies in surrounding area or tenants

well developed office district. Also, thetargeting at retail customers areri
Fukuoka Bank The Bank of Tokyo
Lin
Do
u ko
Head Ofﬁce Mitsubishi UFJ howa
w ay K

Foodexpress

expected.

n
Tenji

Sumitomo
Mitsui Bank

Kichijoji Stn.

6lipa ineunic a L
a M kum
uok ana
Fuk way N
b
Su

Yakuin Stn.

Marui

NOF Tenjin-Minami Bldg.

Watanabe Dori Stn.

KyusyuElectric PowerHead Ofﬁce

Line

Crystal Park Bldg.

JR Chuo Line

Bivi
Fukuoka

Canal City
Hakata

iver
aR

Parco

Nishitetsu Tenjin Omuta

Fukuoka
TOYOTA
Head Ofﬁce

provides several railway lines.

N ak

Mitsukoshi Dpt Store

ro
i Do
uta
Kok

.
i Stn
inam

ori
eD
ab
tan
Wa

Sumitomo
Mitsui Banking
Corporation

Kichijoji Library

Yodobashi
Cameralocation has convenient access as it

ori
iji D
Me

TenjinChuo Park

n-M
Tenji

tn.

Loft

Iwataya
NTT Tenjin
Building

IsetanFukuoka
City Hall

S
n)
nji
Te

The Bank ofTokyo-Mitsubishi
UFJ

Itsu
kai
chi
-Ka
ido

a(

Tokyu
Department

Kic
hijo
ji
O
dor
Kich
i
ijoji
Sun
-roa
d

Seiyu

uo k

KichijojiMark Bldg.

Sub

Stn.

Fu k

Kich
ijoji
Dori

NTT

S

e

Nishitetsu Yakuin Stn. Bldg.

7

RENEWALS ENHANCE CUSTOMER ATTRACTION
Renewal Example

RENEWALS ENHANCE PORTFOLIO COMPETITIVENESS

Shinjuku Nomura Building

Renewal Example 1

NRE Hiroshima Building

Various renovations were implemented on a continuous basis to differentiate the property from surrounding buildings for theLarge-scale renewal (phase II) was completed for the restaurant area on the north side of B1 ﬂoor.

purpose of enhancing appeal to prospective tenants and improving existing tenant satisfaction. Our efforts to improve its+ Points of renewal

competitiveness have resulted in higher performance by the property compared to the ofﬁce market in the area.

+
1 Ome Kaido (north) entrance+ Occupancy Rate of NRE Hiroshima Building

Map of the Restaurant Area

To enhance customer attraction from the Ome Kaido side which is

NRE Hiroshima Building(%)

expected to have increased pedestrian ﬂow due to construction of a
" Restaurant

new building, the north entrance has been renewed with installation" ShopMarket Occupancy Rate in the Area (%) *100" Inner Mallof designed features such as an arch, and escalators/stairs thatenable smooth access to B1 and B2 ﬂoors.
90

Ome Kaido Entrance

BeforeAfter

October 31, 2007
Renewal of receiving power
substation

July 30, 2005
Aseismic retroﬁtting

+
1
70

+
2 Installation of an inner mall and uniﬁed designs+
2

In conjunction with the opening of take-out food outlets, a food court(“inner mall”) open to the public has been created, enabling customers
to bring their lunch or other purchased goods, providing everyone a
space to refresh during the day. In addition, by implementing uniﬁed
designs with the already renewed south side, the entire floor space
now provides a light-ﬁlled and sophisticated atmosphere.

April 30, 2008
Renewal of
air-conditioning
system substation

80

60

October 22, 2006
Renewal of entrance area
November 13, 2005
Renewal of elevator halls
and common hallways

March 31, 2009
Renewal of elevators

50
2005
Mar.

North

June

Sep.

Dec.

2006
Mar.

June

Sep.

Dec.

South
Phase II

(Reference) Phase I

Completed in2009Completed in
2006

2007
Mar.

June

Sep.

Dec.

2008
Mar.

June

Sep.

Dec.

2009
Mar.

End of11th Period
Apr.

*Source: Hiroshima City vacancy rate data published on “MARKET REPORT” by CB Richard Ellis(to December 2006: Kamiyacho Area; from March 2007: Aioi Dori Area)

Renewal Example 2

SORA Shin-Osaka 21

BeforeRenewals of elevator halls and hallways were completed, and common space was created in the vaulted ceiling entrance hallarea. These renovations were aimed at maintenance and improvement of mid- to long-term proﬁtability through differentiationfrom surrounding buildings and achievement of improved tenant satisfaction.
After

Elevator Halls/Hallways

Vaulted Ceiling Entrance Hall

Phase I (B1 south side restaurant area renewal)
Signiﬁcant renewal was implemented to increase the number of visitors from the entrance facing the intersection to the south of
the building that has the largest pedestrian ﬂow, including two escalators and stairs leading to the southern entrance, ﬂoor spacerenovation and replacement of shops.
Change in the number of visitors

BeforeBeforeBeforeAfter
Before : Approx. 3,700 visitors/day*

After : Approx. 5,500 visitors/day*

After
After

Completion of Phase I resulted in considerable increase in the number of customers to the restaurants in the basement ﬂoors.

By changing the interior and lighting to softer and warmer

There were few visitors on weekends and holidays prior to the renewal, but now the restaurants are busy during lunch and dinner times on weekends

tones with quality ﬁnish, the impression of the building to

A common space open to public use has been created for theas well as on weekdays. Ofﬁce tenants have also expressed their appreciation stating that the entire section has been transformed brilliantly.

the tenants and visitors has been rejuvenated.

convenience of ofﬁce tenants and numerous visitors to the building.

* According to the survey implemented by the owner of the Shinjuku Nomura Building.

89

Portfolio Highlights

Financial Status of the Eleventh Fiscal Period

CHANGES IN OCCUPANCY RATE (AVERAGE)TURNING OF SHORT-TERM FLOATING-RATE DEBTS TO LONG-TERM FIXED-RATE DEBTS

The average occupancy rate maintained stable and high level throughout the eleventh ﬁscal period.

The Company has secured ﬁnancial stability through promotion of long-term, ﬁxed-rate interest-bearing debt including
issuance of investment corporation bonds, to prepare for the future interest rate hikes. As of the end of the eleventhﬁscal period, the ratio of long- and short-term debt and ﬁxed and ﬂoating debt are as follows:

Total leasable space (000m2)

Average occupancy rate (%)

97.3

95.6

100.0

439

430

90.0

95.4

95.4

94.9

433

439

432

94.3

96.4

500

436

436

450

Ratio of long-term and short-term interest-bearing debts

400

80.0

Oct. 31,2008(End of 10th Period)

Nov 30,2008

Dec. 31,2008

Jan. 31,2009

Feb. 28,
2009

Mar. 31,2009

Apr. 30,
2009(End of 11th Period)

22.4%

Fixed-rate¥146.5 billion
77.6%

77.6%

300

60.0

Floating-rate¥42.2 billion

22.4%

Long-term¥146.5 billion

350

70.0

Ratio of ﬁxed and ﬂoating interest-bearing debts

Short-term¥42.2 billion

Note: “Short-term” includes long-term debts
to be repaid within one year.

Note: “Fixed” includes ﬂoating-rate debts
with ﬁxed-rates through interest-rate
swap transactions.

CHANGES IN SIZE OF PORTFOLIO
As indicated below, diversiﬁcation of the portfolio, which has steadily increased since listing, has also been promoted.

DIVERSITY OF REPAYMENT DATES (as of the end of Eleventh fiscal period)
We have diversiﬁed the repayment dates of interest-bearing debts to avoid concentration on any speciﬁc period ortiming, thus reducing the reﬁnance risk and stabilizing the cash ﬂow.

(¥ bln)

500
400
300
200

12 bldgs

19 bldgs
15 bldgs 18 bldgs

104.2

127.2

151.5

184.6

23 bldgs 28 bldgs
210.1

30 bldgs 31 bldgs
259.1

240.8

282.8

34 bldgs 37 bldgs
292.4

317.4

46 bldgs 50 bldgs
362.2

374.5

(¥ bln)30

Debts

Investment Corporation Bonds

24.8
25

100

20

0

20

19

18

17.43

Initial Listing 1st Period
2nd Period
3rd Period
4th Period
5th Period
6th Period
7th Period
8th Period
9th Period 10th Period 11th Period
Dec. 2003 Apr. 30, 2004 Oct. 31, 2004 Apr. 30, 2005 Oct. 31, 2005 Apr. 30, 2006 Oct. 31, 2006 Apr. 30, 2007 Oct. 31, 2007 Apr. 30, 2008 Oct. 31, 2008 Apr. 30, 200916 15.5
15
11.5
10
8

10

ALLOCATION BY AREA AND PROPERTY (as of Apr. 30, 2009)

8

6

5

5

4.5

5

Diversiﬁcation by Location

Diversiﬁcation by Property (Top 10 Properties and other)
Shinjuku Nomura Bldg.

10.3%

Other Regional Cities
26.8%

JAL Bldg.

Other 40 Bldg.

Central Tokyo
58.5%

2.7%
Secom Medical Bldg.

Suburban Tokyo

3.1%

14.7%

NOF Shibuya
Koen-dori Bldg.

(Apr. 2013)(Apr. 2015)(Apr. 2017)(Apr. 2020)(period)(Apr. 2028)

6.3%
NOF Nihonbashi
Honcho Bldg.

5.5%

CREDIT RATINGSSORA Shin-Osaka 21

5.1%
Tennozu Park Side Bldg.

3.3%
Note: Central Tokyo ....................Six central wards consisting of Chiyoda, Chuo, Minato, Shinjuku, Shinagawa and Shibuya
Suburban Tokyo.................Other areas of Tokyo and the Surrounding three prefectures including Kanagawa, Saitama and Chiba
Other Cities ......................Major regional cities in other areas
Note: Based on the acquisition price10(Apr. 2011)

Omron Kyoto
Center Bldg.

3.2%
Shinjuku Sanshin Bldg.

12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st 32nd 33rd 34th 35th 36th 37th 38th 39th 40th 41st 42nd 43rd 44th 45th 46th 47th 48th 49th
(Oct. 2009)

8.8%

47.7%
NOF Shiba Bldg.

0

4.0%

We have obtained ratings from three domestic and foreign rating companies for the purpose of diversifying funding
methods such as issuance of investment corporation bonds, and improving creditworthiness in the capital market.
Rating Company

RatingOutlookRating and Investment Information, Inc.

AA−:

Issuer rating

StableStandard & Poor’s Ratings Services

A :
A−1 :

Long-term corporate credit rating
Short-term corporate credit rating

Negative—

Moody’s Investors Service, Inc.

A2 :Issuer rating

Negative11

Summary of Portfolio Properties
MAP
No.

JR Chuo Line
Shinjyuku-ku

01
09

Shinjyuku

21

05

07

ShibuyaLine

12

Chiyoda-ku
Tokyo

11

Shibuya-ku

am
ano
in
te L
e

Shinagawa

13 04
02

39

Shinagawa-ku

49

41

43 42

47

Nagoya

2,550

0.7

21

NOF Minami Shinjuku Building

Shibuya-ku, Tokyo

2,464.71

Jun. 25, 2004

2,280

0.6

22

Central Shintomicho Building

Chuo-ku, Tokyo

2,467.14

Jun. 25, 2008

1,750

0.5

23

Sunworld Yotsuya Building

Shinjuku-ku, Tokyo

2,367.51

Jun. 25, 2008

778

0.2

219,208

58.5

Name of Property

Shinjuku Nomura Building

194,026.30

31

Kyoto

45

Tokyo

30 Kichijoji

Tachikawa

46 44

Hachioji

29

28

Location

Leasable Floor
Space (m2)33
35

Shinjuku-ku, Tokyo

31,500.89

NRE Ueno Building

Taito-ku, Tokyo

4,869.32

Jan. 14, 2009

7,830

2.1

25

NOF Toyo-cho Building

Koto-ku, Tokyo

18,218.17

Dec. 5, 2003

7,550

2.0

26

NOF Technoport Kamata Center Building

Ota-ku, Tokyo

13,652.45

Dec. 5, 2003

6,416

1.7

2,058.97

Mar. 28, 2008

2,080

0.6

Meguro-ku, Tokyo

1,610.07

Jun. 25, 2008

1,340

0.4

29

Crystal Park Building

Musashino City, Tokyo

3,900.85

Feb. 28, 2006

3,700

1.0

30

Kichijoji Mark Building

Musashino City, Tokyo

1,936.40

Jan. 14, 2009

1,800

0.5

31

Faret Tachikawa Center Square

Tachikawa City, Tokyo

6,853.38

Dec. 5, 2003

3,290

0.9

32

NOF Kawasaki Higashiguchi Building

Kawasaki City, Kanagawa

8,253.41

Jun. 30, 2005

9,500

2.5

24

33

NOF Yokohama Nishiguchi Building

Yokohama City, Kanagawa

6,817.76

May 12, 2005

5,050

1.3

25

34

NOF Shin-Yokohama Building

Yokohama City, Kanagawa

8,074.83

Dec. 5, 2003

3,600

1.0

35

Yokohama Odori Koen Building

Yokohama City, Kanagawa

4,236.46

Sep. 28, 2007

2,993

0.8

55,149

14.7

Chiba

Shinkiba

26

Total Suburban Tokyo (12 Properties)

80,482.07

Kawasaki

32

Other Cities

Yokohama

Acquisition Price
Date Acquired(¥mln)

Dec. 8, 2003

24

Bunkyo-ku, Tokyo

Ratio
(%)

C e n t r a l To k y o

12Jun. 25, 2008

Toho Edogawabashi Building

27

Shin-Yokohama

Kanagawa

01

1,720.05

Toshin Meguro Building

Saitama

34

MAP
No.

Chuo-ku, Tokyo

27

40 Utsunomiya

Shin-Osaka

50

Ratio
(%)

28

Sendai

Tokyo

48

Acquisition Price(¥mln)

S u b u r b a n To k y o08

Fukuoka

Date Acquired

Central Kyobashi Building

Total Central Tokyo (23 Properties)

22

Hiroshima

Leasable Floor
Space (m2)20

15 03 16
20 17

Chuo-ku

19

Location

SapporoMinato-ku

JR Y

06
10

14

23

37
36 38

18JR Sobu

Name of Property

38,730

10.3

02

JAL Building

Shinagawa-ku, Tokyo

42,084.11

Mar. 18, 2005

33,0808.8

03

NOF Nihonbashi Honcho Building

Chuo-ku, Tokyo

19,233.25

Dec. 5, 2003

20,6005.5

04

Tennozu Park Side Building

Shinagawa-ku,Tokyo

18,051.60

Feb. 27, 2004

14,8004.0

05

Shinjuku Sanshin Building

Shibuya-ku, Tokyo

6,675.23

Jun. 25, 2008

12,300

3.3

06

NOF Shibuya Koen-dori Building

Shibuya-ku, Tokyo

3,420.16

Sep. 28, 2004

12,0003.2

07

Secom Medical Building

Chiyoda-ku, Tokyo

8,821.24

Sep. 1, 2006

11,500

3.1

08

NOF Shiba Building

Minato-ku, Tokyo

8,165.10

May 25, 2004

10,0002.7

09Nishi-Shinjuku Showa Building

Shinjuku-ku, Tokyo

5,659.96

Nov. 30, 2005

8,800

2.3

10

NRE Shibuya Dogenzaka Building

Shibuya-ku, Tokyo

3,436.67

Sep. 26, 2008

7,660

2.0

11

NOF Tameike Building

Minato-ku, Tokyo

4,715.20

Sep. 29, 2005

7,400

2.0

12

Iwamoto-cho Toyo Building

Chiyoda-ku, Tokyo

4,117.26

Jun. 25, 2008

6,020

1.6

13

NOF Shinagawa Konan Building

Shinagawa-ku, Tokyo

7,667.55

Dec. 8, 2003

5,500

1.5

14

NOF Surugadai Plaza Building

Chiyoda-ku, Tokyo

4,160.94

Feb. 27, 2004

5,150

1.4

15

PMO Nihonbashi Honcho

Chuo-ku, Tokyo

2,450.06

Nov. 5, 2008

5,000

1.3

16

NRE Higashi-nihonbashi Building

Chuo-ku, Tokyo

4,554.98

Jan. 14, 2009

4,060

1.1

17

Hatchobori NF Building

Chuo-ku, Tokyo

2,854.83

Aug. 10,2007

3,160

0.8

18

NOF Kanda Iwamoto-cho Building

Chiyoda-ku, Tokyo

4,076.38

Feb. 26, 2004

3,080

0.8

19

MY Higashi Gotanda Building

Shinagawa-ku, Tokyo

3,361.48

Feb. 27, 2009

3,010

0.8

36

Sapporo North Plaza

Sapporo City, Hokkaido

13,644.81

Jun. 1, 2006

6,820

1.8

37

NRE Sapporo Building

Sapporo City, Hokkaido

6,559.34

Nov. 5, 2008

5,300

1.4

38

JCB Sapporo Higashi Building

Sapporo City, Hokkaido

9,062.04

Feb. 8, 2008

3,700

1.0

39

NOF Sendai Aoba-dori Building

Sendai City, Miyagi

6,153.65

Nov. 30, 2005

3,200

0.9

40

NOF Utsunomiya Building

Utsunomiya City, Tochigi

5,887.40

Dec. 5, 2003

2,970

0.8

41

NOF Nagoya Yanagibashi Building

Nagoya City, Aichi

4,655.74

Sep. 29, 2005

3,550

0.9

42

Omron Kyoto Center Building

Kyoto City, Kyoto

34,616.84

Mar. 20, 2007

23,700

6.3

43

SORA Shin-Osaka 21

Osaka City, Osaka

21,589.70

Apr. 25, 2008

19,251

5.1

44

NRE Osaka Building

Osaka City, Osaka

16,977.79

Dec. 5, 2003

6,410

1.7

45

NRE Nishi-Umeda Building

Osaka City, Osaka

5,213.02

Sep. 26, 2008

5,660

1.5

46

NRE Yotsubashi Building

Osaka City, Osaka

11,558.68

Dec. 5, 2003

3,940

1.1

47

NOF Kobe Kaigan Building

Kobe City, Hyogo

6,425.16

Dec. 5, 2003

3,280

0.9

48

NRE Hiroshima Building

Hiroshima City, Hiroshima

7,903.22

Dec. 5, 2003

1,930

0.5

49

EME Hakata Ekimae Building

Fukuoka City, Fukuoka

7,504.44

Jun. 27, 2008

6,750

1.8

50

NOF Tenjin-Minami Building

Fukuoka City, Fukuoka

3,834.21

Mar. 27, 2009

3,739

1.0

Total Other Cities (15 Properties)

161,586.04

100,200

26.8

Grand Total (50 Properties)

436,094.41

374,557

100.0

Note : The Company owns "Secom Medical Building", "NRE Shibuya Dogenzaka Building", "PMO Nihonbashi Honcho", "NRE Higashi-nihonbashi Building", "MY Higashi Gotanda
Building", "NRE Ueno Building", "Toho Edogawabashi Building", "Crystal Park Building", "Yokohama Odori Koen Building", "NRE Sapporo Building", "JCB Sapporo Higashi
Building", "SORA Shin-Osaka 21" and "NRE Nishi-Umeda Building" as real estate, and other properties in the form of beneficial interest in real estate trusts.
Note: "Ratio" refers to the ratio of each asset based on acquisition price to the entire portfolio (total of 50 properties). As the figures in the above table have been rounded to thefirst decimal place, the total may not be 100.0%.
Note: Shinjuku Nomura Building is held through the quasi co-ownership of beneficial interest in real estate trust. The Company holds 50.1% of the quasi co-ownership. Total
leasable floor space and acquisition price in the above table indicates the figures related to the quasi co-ownership.
Note: The Company transferred a part of the land of NOF Technoport Kamata Center Building (co-owned area) on August 31, 2007. The acquisition price on the list is the amount
subtracting a book price of the asset to be transferred (13 million yen) from the acquisition price before the transfer (6,430 million yen). The number of amount below unit istruncated.

13

Major Properties

42

31

02

45

07

42 Omron Kyoto Center Building
801 Minami Fudodo-cho, Horikawa Higashi-iru, Shiokojidori, Shimogyo-ku, Kyoto City, Kyoto

07 Secom Medical Building
7-7 Nibancho Chiyoda-ku, Tokyo

14

04

04 Tennozu Park Side Building
2-5-8 Higashi-Shinagawa Shinagawa-ku, Tokyo

29 Crystal Park Building
1-1-3 Gotenyama Musashino City, Tokyo

29

43

31 Faret Tachikawa Center Square
2-36-2 Akebono-cho Tachikawa City, Tokyo

45 NRE Nishi-Umeda Building
2-1-22, Umeda, Kita-ku, Osaka City, Osaka

43 SORA Shin-Osaka 21
2-1-3 Nishi-Miyahara Yodogawa-ku, Osaka City, Osaka

02 JAL Building
2-4-11 Higashi-Shinagawa Shinagawa-ku, Tokyo

15

Major Properties
Performance Report
01

03

47

10

Shinjuku Nomura Building

Contents

Asset Management Report ......................................... 18
Profile of the Company ............................................... 23
Status of Investment Assets of the Company ............ 25
Capital Expenditures ................................................... 28
Expenses and Liabilities .............................................. 29
Trading during the Eleventh Fiscal Period ................... 32

01 Shinjuku Nomura Building
1-26-2 Nishi-Shinjuku Shinjuku-ku, Tokyo

3 Kaigan-dori Chuo-ku Kobe City, Hyogo

03 NOF Nihonbashi Honcho Building

10 NRE Shibuya Dogenzaka Building

2-7-1 Nihonbashi Honcho Chuo-ku, Tokyo

16

47 NOF Kobe Kaigan Building

Other Information ....................................................... 34

2-16-4 Dogenzaka, Shibuya-ku, Tokyo

17

Asset Management Report
1. CHANGES IN KEY INDICATORS

2. OUTLINE OF INVESTMENTS IN THE ELEVENTH FISCAL PERIOD
11th Period
10th Period
9th Period
8th Period
7th Period
from Nov. 1, 2008 from May 1, 2008 from Nov.1, 2007 from May 1, 2007 from Nov.1, 2006
to Apr. 30, 2009 to Oct. 31, 2008 to Apr. 30, 2008 to Oct. 31, 2007 to Apr. 30, 2007

Operating Revenues¥ mln

15,40913,925

12,183

11,968

11,090of which Real Estate Rental Revenues¥ mln

14,281

13,925

12,183

11,958

11,090Operating Expenses

¥ mln

8,331

6,993

6,359

6,243

5,953

of which Real Estate Rental Expenses

¥ mln

5,917

5,790

5,213

5,190

4,805

Operating Profits

¥ mln

7,078

6,932

5,823

5,725

5,137

Current Profits

¥ mln

5,393

5,256

4,500

4,486

4,466

Net Income

¥ mln

5,392

5,255

4,499

4,486

4,466

Total Assets¥ mln

409,353

401,684

353,730

326,711315,402(Changes from Previous Period)%(+1.9)(+13.6)(+8.3)(+3.6)(+9.5)

Interest-Bearing Debts¥ mln

188,730

182,100

165,700

140,000

130,000

Net Assets¥ mln

190,847

190,711161,267

161,272

161,221%(+0.1)(+18.3)(60.0)(+0.0)(+0.1)

Unitholders’ Capital¥ mln

185,455

185,455

156,767

156,767

156,767

Number of Units Issued

Units305,123

305,123265,903

265,903

265,903¥625,478625,031

606,488606,510606,315(Changes from Previous Period)

Net Assets per Unit

¥ mln

5,392

5,255

4,499

4,498

4,453

Cash Distribution per Unit¥

17,673

17,225

16,923

16,91816,750Total Cash Distributionof which Cash Distribution of Profits¥

17,673

17,225

16,923

16,91816,750of which Cash Distribution in excess of Profits

¥

–

–

–

–

–

ROA (Return on Assets) (Note 1)

%

1.3

1.4

1.3

1.4

1.5

Annualized ROA (Note 2)

%

2.7

2.7

2.7

2.8

3.0

ROE (Return on Equity) (Note 3)

%

2.8

2.8

2.8

2.8

2.8

Annualized ROE (Note 2)

%

5.7

5.6

5.6

5.5

5.6

Capital Adequacy Ratio (Note 4)

%

46.6

47.5

45.6

49.4

51.1

(Changes from Previous Period)%(60.9)(+1.9)(63.8)(61.7)(64.8)LTV (Loan-to-Value) (Note 5)

%

46.1

45.3

46.8

42.9

41.2

Number of Operating Days

days

181

184

182

184

181

Payout Ratio (Note 6)

%

100.0

99.9

99.9

100.2

99.7

Number of Properties Held

bldgs

50

46

37

34

31

Total Leasable Floor Spacem2

436,094.41

430,487.81

395,330.99

362,773.62

350,712.00

tenants

661

676

583

533

517

%

96.4

97.3

97.6

97.9

98.5

Depreciation

¥ mln

1,862

1,793

1,601

1,518

1,478

Capital Expenditures

¥ mln

1,376

1,552

1,346

1,252

757

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

10,226

9,927

8,572

8,286

7,763

FFO (Funds from Operation) (Note 8)

¥ mln

7,167

7,087

6,134

6,039

5,985

¥

23,48823,22823,06922,71422,509Number of Tenants
Occupancy Rate

FFO per Unit (Note 9)

Note 1: “ROA (Return on Assets)” = Current Profits / {(Total Assets at the beginning of the period + Total Assets at the end of the period) / 2} x 100
As for the 10th 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. 7th period: 181 days, 8th period: 184 days, 9th Period: 182 days, 10th Period: 184 days,
and 11th Period: 181 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 the 10th period, Net Assets is 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

18

Nomura Real Estate Office Fund, Inc., incorporated on August 7, 2003 under the Law Concerning Investment Trusts and Investment
Corporations of Japan, listed the unit certificates in the Real Estate Investment Trust (REIT) Market of the Tokyo Stock Exchange on
December 4, 2003 (TSE code 8959). The Company’s basic investment policy is to assure stable income from, and steady growth of,investment assets over the mid- to long-term. In accordance with this policy, we invest in properties mostly for office use in threelargest conurbations and other major cities, or in property-backed securities that are backed by such properties.
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 term “unit certificates” are the securities issued by the Company and may be referred to as “investment units” or “units” hereinafter.
The term “investment assets” refers to those assets that belong to the Company.
Unless otherwise stated, for the purpose of this report, the concept of “property(ies)” is construed to include leasehold and superficies.
The term “property(ies)” refers to those assets defined in Section 27, Paragraph 1, Article (1) and (2), and “property-backed securities” refers to those assets defined in
Section 27, 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”.

(1) Market Environments
During this period, deterioration of corporate earnings became apparent due to the worldwide economic slowdown. As corporations are likely to continue reviewing of their business contents and employment adjustment, the future of the economy is still
unclear.
(a) Office Leasing Market
Due to the slowing of overall economy, corporate demand for office space remains weak and the office leasing market ongoingly eased which became obvious in the previous period.
In some cities, increase in new supplies caused significant market easing, leading to further polarization in occupancy
rates. At the same time, large-scale properties with superior convenience in metropolitan areas, which maintained relatively
stable occupancies, the number of floor cancellation notices are increasing and the time to fill vacancies is lengthening due tothe decrease in corporate demand for office space.
As to the office rental levels, increase in new asking rent and the rental levels for existing tenants are both on a downward trend, reflecting the supply environment for office space and growing awareness of cutting office related costs for corporations.
Under such circumstances, assuming that vacancy rates and the rental levels may vary from property to property depend
on industry sector of tenants and its location, size, and features.
(b) Real Estate Sales Market
The real estate market in this period saw a substantial decrease in the number of transactions by real estate funds including
J-REITs and real estate companies due to the stricter lending standards toward real estate sector imposed by domestic andforeign financial institutions. In addition, while polarization in property prices among regions become advanced, easing trends
in supply and demand are also apparent in metropolitan Tokyo. As a result, expected return on real estate is now in generally
upward trend.
(2) Status of Managements for the Eleventh Fiscal Period
To comply with the basic policy of acquiring only such properties that would generate stable cash flow over the mid- to long-term,
the Company continues to invest in properties with strong competitiveness both in terms of locations and basic building features.
During the eleventh fiscal period, we have proactively collected information in accordance with the above-mentioned basic
policy. As a result of careful investigation of a number of investment opportunities which obtained through collaboration with
Nomura Real Estate Group, and the utilization of an asset management company’s own information pipeline, we made newinvestments on PMO Nihonbashi Honcho (Chuo-ku, Tokyo, ¥5.0 billion, real estate) and NRE Sapporo Building (Kita-ku, Sapporo
City, ¥5.3 billion, real estate), in November, 2008, NRE Higashi-nihonbashi Building (Chuo-ku, Tokyo, ¥4.0 billion, real estate), NRE
Ueno Building (Taito-ku, Tokyo, ¥7.8 billion, real estate), and Kichijoji Mark Building (Musashino City, Tokyo, ¥1.8 billion, beneficial
interest in real estate trust) in January, 2009, MY Higashi Gotanda Building (Shinagawa-ku, Tokyo, ¥3.0 billion, real estate) in
February, 2009, and NOF Tenjin-Minami Building (Chuo-ku, Fukuoka City, ¥3.7 billion, beneficial interest in real estate trust) in
March, 2009. At the same time, we disposed NOF Midosuji Building (Chuo-ku, Osaka City, Transfer Price: ¥14.0 billion, realestate) and Kita-Sanjo Building (Chuo-ku, Sapporo City, ¥2.6 billion, real estate) in January, 2009 and Hiroshima Tatemachi NOF
Building (Naka-ku, Hiroshima City, ¥2.2 billion, beneficial interest in real estate trust) in February, 2009 intending to reduce both
the ratio of regional properties and average building age.
As a result of the above acquisition and disposition, the Company’s total assets under management (“portfolio”) as of theend of the eleventh fiscal period (April 30, 2009) has reached 50 properties (total leasable floor space:436,094.41m2) totaling¥37.4 billion (total acquisition price). We have steadily increased the size of the portfolio, while seeking diversification of theassets.

19

In property management, against the backdrop of the environment described in “(1) Market Environments (a) Office Leasing
Market” above, decreasing demand for office space and increasing conservativeness towards rents among the corporate tenants
became apparent, resulting in a rise in the number of cancellation notices from tenants during this period. Our emphasis was on
improvement of the occupancy rate, and we concentrated on maintenance and improvement through aggressively approachingprospective tenants and keeping close communications with existing tenants, focusing on the fiscal year-end period when thetenant movements become active. We engaged in active negotiation at lease renewals to minimize the decrease in rent levels,
while responding flexibly to the needs of each tenant, taking into consideration the deviation from the market asking-rent and thesize of leased space. As a result, the occupancy rate was 96.4% at the end of the period. The average rent for the 43 properties(3 properties disposed during this period from the 46 properties held at the end of the previous fiscal period are excluded) was up
0.8% compared to the previous fiscal period.

[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.

Note 1: “Nomura Real Estate Group” refers to a corporate group consisting of the consolidated subsidiaries of Nomura Real Estate Holdings, Inc. (referred to as Nomura Real
Estate Holdings hereinafter) including Nomura Real Estate Development Co., Ltd. but excluding Nomura Real Estate Asset Management Co., Ltd. (referred to as theAsset Management Company hereinafter).
Note 2: The “beneficial interest in real estate trust” refers to a beneficial interest arising from a trust in which real estates are the primary underlying assets.

In order to qualify for special tax treatment under Article 67-15 of the Special Taxation Measures Law (Law No. 26 of 1957) to havemaximum cash distribution amount treated as deductible dividends, the Company distributed the entire unappropriated retained
earnings except for fractional amounts smaller than one yen per each investment unit. As a result, the amount of cash distribution
per unit for this fiscal period was ¥17,673.

(3) Status of Funding
Concerning funding through interest-bearing debts, the Company has the basic financial policy of funding through promotion of
long-term, diversified and fixed interest rate debts, for the purpose of securing financial stability and avoiding future interest raterisks. Based on this policy, the Company has implemented funding through long-term debts and issuance of investment corporation bonds, while establishing a total of ¥40 billion of commitment line for the purpose of flexible funding at the time of property
acquisition and reduction of refinancing risks, from the perspective of securing stable funding base.
As to debts, a total of ¥20.9 billion was borrowed as a part of repayment funds for existing debts; funding of ¥10 billion
under a term loan agreement was made for investment in ”PMO Nihonbashi Honcho” and ”NRE Sapporo Building”; and fundingof ¥2 billion was made based on a commitment line agreement for investment in ”NOF Tenjin-Minami Building.” As a result, outstanding interest-bearing debt as of the end of eleventh fiscal period was ¥188.7 billion.

3. STATUS OF CAPITALNo changes in the number of units issued have been made during the eleventh fiscal period. Changes in the number of units issued
and unitholders’ capital until the elevtenth fiscal period are as follows.
Number of Units Issued (Unit)

Unitholders’ Capital (¥ mln)

Date

Type of Issue

ChangeBalance

ChangeBalance

NoteAug. 7, 2003
Dec. 4, 2003
May 19, 2004
Jun. 16, 2004
May 1, 2005
May 24, 2005
May 25, 2006
Jun. 23, 2006
May 27, 2008
Jun. 24, 2008

Initial private placement
Public offering
Public offering
Third-party allotment
Public offering
Third-party allotment
Public offering
Third-party allotment
Public offering
Third-party allotment

400
148,200
35,0001,050
44,0001,320
34,8001,133
37,0002,220

400
148,600
183,600
184,650
228,650
229,970
264,770
265,903
302,903
305,123200
71,506
19,866595
31,496944
31,143
1,013
27,0641,623

200
71,706
91,572
92,168
123,665
124,610
155,753
156,767
183,831
185,455(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)(Note 9)(Note 10)Note 1: Initial private placement at the offer price of ¥500,000 per unit to incorporate the Company.
Note 2: Public offering at the offer price of ¥500,000 (issue price of ¥482,500) to finance acquisition of new properties.
Note 3: Public offering at the offer price of ¥588,000 (issue price of ¥567,600) to finance acquisition of new properties and to repay borrowings.
Note 4: Third-party allotment to Nomura Securities Co., Ltd. at the offer price of ¥567,600 following the public offering on May 19, 2004.
Note 5: Public offering at the offer price of ¥740,782 (issue price of ¥715,837) to finance acquisition of new properties and to repay borrowings.
Note 6: Third-party allotment to Nomura Securities Co., Ltd. at the offer price of ¥715,837 following the public offering on May 1, 2005.
Note 7: Public offering at the offer price of ¥926,100 (issue price of ¥894,915) to finance acquisition of new properties and to repay borrowings.
Note 8: Third-party allotment to Nomura Securities Co., Ltd. at the offer price of ¥894,915 following the public offering on May 25, 2006.
Note 9: Public offering at the offer price of ¥756,560 (issue price of ¥731,470) to redeem the short-term investment corporation bonds and to repay short-term borrowings.
Note 10:Third-party allotment to Nomura Securities Co., Ltd. at the offer price of ¥731,470 following the public offering on May 27, 2008.

20

11th Period
10th Period
from Nov.1, 2008 from May 1, 2008
to Apr. 30, 2009
to Oct. 31, 2008

High
Low

(¥)
(¥)

645,000
431,000

874,000
407,000

9th Period
from Nov 1, 2007
to Apr. 30, 2008

8th Period
from May 1, 2007
to Oct. 31, 2007

7th Period
from Nov 1, 2006
to Apr. 30, 2007

1,200,000
655,000

1,540,000
935,000

1,560,000
956,000

4. CASH DISTRIBUTION

11th Period
10th Period
9th Period
8th Period
7th Period
from Nov.1, 2008 from May 1, 2008 from Nov 1, 2007 from May 1, 2007 from Nov 1, 2006
to Apr. 30, 2009 to Oct. 31, 2008
to Apr. 30, 2008
to Oct. 31, 2007
to Apr. 30, 2007

Retained Earnings
Accumulated earnings
Total cash distribution(Cash distribution per unit)of which distribution of profits(Distribution of profits per unit)of which refund of capital(Refund of capital per unit)(¥000)(¥000)(¥000)(¥)(¥000)(¥)(¥000)(¥)

5,392,502
64
5,392,438(17,673)
5,392,438(17,673)–(–)

5,255,922
178
5,255,743(17,225)
5,255,743(17,225)–(–)

4,500,000
124
4,499,876(16,923)
4,499,876(16,923)–(–)

4,498,622
76
4,498,546(16,918)
4,498,546(16,918)–(–)

4,466,301
12,426
4,453,875(16,750)
4,453,875(16,750)–(–)

5. INVESTMENT POLICY AND FUTURE ISSUES(1) Investment Environments
From April 2009 and for a foreseeable future, the Japanese economy is expected to search for the timing of bottoming out andrecovery amid the global economic downturn. At the same time, the turmoil in the capital and financial markets are likely to continue. Therefore, the attitude of financial institutions towards real estate lending and the appetite of the investors towards the realestate market are expected to remain severe.
Under these circumstances, we believe that defensive asset management is important such as maintenance of funding
capacities through conservative financial management, flexible property management that minimizes the decrease in portfolio
profitability assuming further deterioration of the office leasing market, and paying close attention to movements in expected
yields and property liquidity in the real estate investment market.
(2) Investment Policy and Future Issues
With such environments in mind, the Company will employ the following investment policies to ensure stable income from, andsteady growth of the portfolio over the mid- to long-term.
(a) Property Management in a Mid- to Long-Term View
In addition to enhancement of property management to satisfy the requirements of existing tenants, proper recognition of theproperty features and market environments will help us market the potential tenants more organically. We will maintain anduplift the occupancy rate and level of rents in pursuit of sustainable and improved profitability of portfolio, namely internal
growth of portfolio, over the mid- to long-term.
By putting the know-how of Nomura Real Estate Group together, we seek to design the most suitable specifications of
how to manage and maintain each property in the most effective way, which in turn will ensure stable inflow of revenues.
In order to ensure stable revenues over the mid- to long-term, we will carry out strategic refurbishment and renovation
works to maintain and/or improve features of the properties, establishing their uniqueness and increasing their competitiveness.
(b) Continuation of Conservative Financial Policy
In order to assure stable financing capability and increase creditworthiness in the market over the mid- to long-term, we will
pay particular attention to debt finance. We will seek to continuously keep the LTV low by using more long-term funding atfixed rates, diversifying the repayment dates, and increasing the number of institutions we bank with.

21

Profile of the Company
We will closely monitor the conditions of financial markets, and carefully deliberate and choose the best means of funding, including the usage of commitment lines, issuance of investment corporation bonds and short-term investment corporation bonds from a wide range of available sources of funding to ensure a well-balanced structure of interest-bearing debts.
(c) Enlargement of Portfolio by Acquisition of New Properties
Although the Company is targeting portfolio size of ¥500 billion in the medium term, we believe careful decisions are necessary for new property acquisition, having thoroughly considered the capital and real estate sales market conditions as well as
the financial status of the Company.

1. STATUS OF UNITHOLDERS’ CAPITAL
11th Period
10th Period
9th Period
8th Period
7th Period(as of Apr. 30, 2009) (as of Oct. 31, 2008) (as of Apr. 30, 2008) (as of Oct. 31, 2007) (as of Apr. 30, 2007)

Maximum number of units allowed to issue(Unit)

2,000,000

2,000,000

2,000,000

2,000,000

2,000,000

Number of units issued(Unit)

305,123

305,123265,903

265,903

265,903

Amount of unitholders’ capital(¥ mln)185,455

185,455

156,767

156,767

156,767

12,503

12,406

11,12011,492

12,500

Number ofUnits Held
(Unit)

Portion in
the Total
Units Issued (%)

Number of unitholders

6. IMPORTANT EVENTS SUBSEQUENT TO THE ELEVENTH FISCAL PERIOD
There is no relevant matter under this subject.
(Reference)
The Company will propose election of one Executive Director, one substitute Executive Director, and four Supervisory Directors andpartial amendment of Articles of Incorporation for its Fourth General Unitholders’ Meeting to be held on July 27, 2009.

2. MATTERS CONCERNING THE INVESTMENT UNITS
The 10 largest unitholders as of April 30, 2009 were as follows.

Name

NikkoCiti Trust and Banking Corp. (Trust Accounts)

26,437

8.66

Trust & Custody Services Bank, Ltd. (Securities Trust Accounts)

23,832

7.81

Japan Trustee Service Bank, Ltd.(Trust Accounts)

21,676

7.10

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

17,376

5.69

Nomura Real Estate Development Co., Ltd.

15,287

5.01

The Nomura Trust and Banking Co., Ltd. (Trust Accounts)

8,782

2.88

Kawasaki Gakuen

7,000

2.29

North Pacific Bank, Ltd.

5,926

1.94

The Bank of Ikeda, Ltd.

5,669

1.86

The State Street Bank and Trust Company

5,436

1.78

137,421

45.04

Total

3. BREAKDOWN OF UNITHOLDERS
The breakdown of unitholders as of April 30, 2009 was as follows.

Private and other investors

Portion (%)

Number of Units
per Unitholders

Portion (%)

11,82694.6

30,588

10.0

Financial institutions(Including sales agents for financial instruments firm)

156

1.2

167,561

54.9

Other domestic corporate investors

209

1.7

29,457

9.7

Foreign corporate investors, etc.

312

2.5

77,51725.4

12,503100.0

305,123

100.0

Total

22

Number ofUnitholders

23

Status of Investment Assets of the Company
4. DIRECTORS AND AUDITOR

1. COMPOSITION OF ASSETS(1) Name of directors and an auditor in the eleventh fiscal period are as follows (Note 1).

Title

Name

Other Major Title (s)Mitsuharu Sato

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

Shuhei Yoshida

Representative Lawyer, Yoshida Shuhei Law Office
Supervisory Director, Nomura Real Estate Residential Fund, Inc.

Supervisory Director

Eitoku Aikawa

Director, Fair Appraisers, K.K.
Supervisory Director, Nomura Real Estate Residential Fund, Inc.

2,400

Supervisory Director

Saneaki IchijoPartner, Anderson Mori & Tomotsune Law Firm

2,400

Supervisory Director

Motoharu Yokose
Earnst & Young ShinNihon
LLC

Advisor, Asahi Tax Partners

2,400

–

14,500Executive Director
Supervisory Director

Accounting Auditor

2,400

Asset Management Company, custodians and administrators as of April 30, 2009 are as follows:
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 (Note 1), The Bank of Tokyo-Mitsubishi
UFJ, Ltd. (Note 2), Sumitomo Mitsui Banking Corporation (Note 2)

Manager of special accounts

Mitsubishi UFJ Trust and Banking Corporation

Administrative agent (accounting, etc.)

Mitsubishi UFJ Trust and Banking Corporation

Administrative agent(investment corporation bonds)

The Bank of Tokyo-Mitsubishi UFJ, Ltd., Sumitomo Mitsui Banking Corporation, Nomura
Securities Co., Ltd., Nikko Citigroup Limited, Mizuho Securities Co., Ltd.

Administrative agent
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
(short-term investment corporation bonds)
Note 1: Administrates preparation, retention and other tasks related to the Unitholders’ Register.
Note 2: Administrates preparation, retention and other tasks related to the Investment Company Bond Register.

10th Period (as of Oct. 31, 2008)
Total Amount (¥ mln)
Portion (%)(Note 2)
(Note 3)Central Tokyo

31,133

7.6

19,064

4.7

Suburban Tokyo

16,539

4.0

8,725

2.2

34,146

8.3

32,373

8.1

Central Tokyo

188,379

46.0

188,330

46.9

Suburban Tokyo

37,524

9.2

35,637

8.9

Other Regional Cities

66,10916.1

77,84919.4

Subtotal

373,833

91.3

361,97990.1

Cash, deposits and other assets

35,5198.7

39,7059.9

409,353100.0

401,684

100.0

Grand Total

5. ASSET MANAGEMENT COMPANY, CUSTODIANS AND ADMINISTRATORS

11th Period (as of Apr. 30, 2009)
Portion (%)
Total Amount (¥ mln)
(Note 3)(Note 2)Other Regional Cities

Real estate in trust(2) Policy on Determination of 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 theaccounting 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 thoroughconsideration to its business execution and other various reasons, the Board of Directors shall dismiss or deny reappointment of
the accounting auditor, and present an agenda for appointment of a new accounting auditor at the General Unitholders’ Meeting.

24

Real estate

2,400

Note 1: No Executive Directors or Supervisory Directors are in possession of the Company’s investment units either under their own or other person’s name. Supervisory Directors
might serve as directors of other companies, but there are no mutual business interests whatsoever between such companies and the Company.
Note 2: At the third General Unitholders’ Meeting held on July 23, 2007, Mr. Atsushi Ogata, Director of the Asset Management Company, Nomura Real Estate Asset Management
Co., Ltd., has been appointed as substitute Executive Director, to provide against vacancy of the Executive Director’s position or lack of statutory quorum.

Business

Type of Assets

Total Amount of Fees Paid
during the 11th Period (¥000)

Area(Note 1)

Note 1: “Central Tokyo” refers to Chiyoda, Chuo, Minato, Shinjuku, Shinagawa and Shibuya Wards; “Suburban Tokyo” refers to Tokyo excluding the Central Tokyo area, Kanagawa,
Saitama and Chiba: “Other Regional Cities” refers to areas other than Central Tokyo and Suburban Tokyo. The same applies hereafter.
Note 2: Total amount is taken from the balance sheet. (Real Estate and Real Estate in Trust represent the total book value after depreciation.)
Note 3: The percentage figures may not necessarily add up to 100.0 due to rounding to the nearest first decimal place.

2. BRIEF OF MAJOR PROPERTIES OWNED
The major components of assets (the 10 largest properties by book value) as of April 30, 2009 are as follows.

Name of Property

Shinjuku Nomura Bldg.

Book Value(¥ mln)39,636

Leasable Floor
Space(m2) (Note1)

Leased Space(m2) (Note2)

31,500.89

30,656.50

Occupancy Rate
(%)

97.3

Portionof Rental
Revenues (%)

Primary Use

13.9

OfficeJAL Bldg.

33,102

42,084.11

42,084.11

100.0(Note 3)

OfficeOmron Kyoto Center Bldg.

23,05834,616.84

34,616.84

100.0(Note 3)

OfficeNOF Nihonbashi-Honcho Bldg.

20,737

19,233.25

18,437.39

95.9

6.1

OfficeSORA Shin-Osaka 21

19,335

21,589.70

19,756.67

91.5

4.1

OfficeTennozu Park Side Bldg.

13,32918,051.60

17,735.94

98.3

5.6

OfficeNOF Shibuya Koen-dori Bldg.

12,5563,420.16

3,420.16

100.0

2.6

OfficeShinjuku Sanshin Bldg.

12,326

6,675.23

6,327.67

94.8

2.2

OfficeSecom Medical Bldg.

11,3298,821.24

8,821.24

100.0(Note 3)

Medical Office(Note 4)

NOF Shiba Bldg.

10,1328,165.10

8,165.10

100.0

2.5

Office195,544

194,158.12

190,021.62

97.9

49.2 (Note 5)

Total

Note 1: “Leasable Floor Space” refers to the total leasable space for each asset including offices and shops (for properties owned in compartments, this generally refers to exclusively owned area; however, common spaces will be included if they are being leased. For Shinjuku Nomura Building, the area calculated by multiplying the overall leasable
floor space by the quasi co-ownership ratio of the beneficial interest in real estate trust owned by the Company. For JAL Building, includes the area calculated by multiplying
the overall common space by the co-ownership ratio for the common spaces prescribed in the terms of management of the building owned by the Company through thetrustee.), at a certain time. Leasable floor space is calculated not based on the total floor space stated on the registry book, but based on the area stated on the building
completion drawing, etc. included in the lease agreement. As such, it may differ from and exceed the total floor space stated on the registry book.
Note 2: “Leased Space” refers to the area included in the leasable floor space of each asset and is actually leased based on a lease agreement (provided, however, it is limited to
office and shop spaces (where the entire leased floor space is being leased as a whole, the total area of the leased floor space.), and does not include leased parking spaces. For Shinjuku Nomura Building, the area calculated by multiplying the overall leased space by the quasi co-ownership ratio of the beneficial interest in real estate trust
owned by the Company. For JAL Building, includes the area calculated by multiplying the overall common space by the co-ownership ratio for the common spaces (as prescribed in the terms of management of the building) owned by the Company through the trustee.).
Note 3: Not disclosed due to compelling reasons.
Note 4: Although this property is currently registered as “clinic/parking” on the registry book, it was originally designed to be used as offices. The Company’s Articles ofIncorporation allows us to invest in the non-office properties given that they can easily be converted into offices.
Note 5: “Total” for “Portion of Rental Revenues” column include rental revenues for properties which do not disclose “Portion of Rental Revenues” due to unavoidable reasons.

25

3. DETAILS OF PORTFOLIO PROPERTIESName of Property

Location(Postal Address)

Type ofOwnership

Appraisal Valueas of Apr. 30, Book Value2009 (¥ mln)(¥ mln)(Note 1)
(Note 2)Central Tokyo
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Real Estate

59,30039,63632,70033,102

24,90020,737

21,90013,32911,50012,326

13,00012,556

10,60011,329Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Real Estate

10,400

10,132

9,280

8,724

6,830

7,685

7,560

7,606

5,370

6,000

6,380

5,453

6,940

5,058

4-12-20 Nihonbashi Honcho, Chuo-ku, Tokyo

Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Real Estate

4,680

4,998

1-1-7 Higashi-nihonbashi, Chuo-ku, Tokyo

Real Estate

3,920

4,087

Hatchobori NF Bldg.

2-21-6 Hatchobori, Chuo-ku, Tokyo

2,920

3,210

NOF Kanda Iwamoto-cho Bldg.

3-8-16 Iwamoto-cho, Chiyoda-ku, Tokyo

3,650

3,109

MY Higashi Gotanda Bldg.

2-20-4 Higashi Gotanda, Shinagawa-ku, Tokyo

Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Real Estate

2,940

3,032

Central Kyobashi Bldg.

1-4-13 Kyobashi, Chuo-ku, Tokyo

2,430

2,559

NOF Minami-Shinjuku Bldg.

5-32-7 Sendagaya, Shibuya-ku, Tokyo

2,670

2,292

Central Shintomocho Bldg.

3-5-10 Minato, Chuo-ku, Tokyo

1,600

1,751

Sunworld Yotsuya Bldg.

13-9 Araki-cho, Shinjuku-ku, Tokyo

Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust

Shinjuku Nomura Bldg. (Note 3)

1-26-2 Nishi-Shinjuku, Shinjuku-ku, Tokyo

JAL Bldg.

2-4-11 Higashi-Shinagawa, Shinagawa-ku, TokyoNOF Nihonbashi-Honcho Bldg.

2-7-1 Nihonbashi-Honcho, Chuo-ku, Tokyo

Tennozu Park Side Bldg.

2-5-8 Higashi-Shinagawa, Shinagawa-ku, Tokyo

Shinjuku Sanshin Bldg.

2-4-9 Yoyogi, Shibuya-ku, TokyoNOF Shibuya Koen-dori Bldg.

20-17 Udagawa-cho, Shibuya-ku, Tokyo

Secom Medical Bldg.

7-7 Niban-cho, Chiyoda-ku, Tokyo (Note 4)

NOF Shiba Bldg.

4-2-3 Shiba, Minato-ku, Tokyo

Nishi-Shinjuku Showa Bldg.

1-13-12 Nishi-Shinjuku, Shinjuku-ku, Tokyo

NRE Shibuya Dogenzaka Bldg.

2-16-4 Dogenzaka, Shibuya-ku, TokyoNOF Tameike Bldg.

1-1-14 Akasaka, Minato-ku, Tokyo

Iwamoto-cho Toyo Bldg.

3-1-2 Iwamoto-cho, Chiyoda-ku, TokyoNOF Shinagawa Kounan Bldg.

1-2-5 Higashi-Shinagawa, Shinagawa-ku, TokyoNOF Surugadai Plaza Bldg.

2-5-12 Kanda Surugadai, Chiyoda-ku, Tokyo

PMO Nihonbashi Honcho
NRE Higashi-nihonbashi Bldg.

Subtotal

720

790

252,190

219,513Suburban Tokyo
NRE Ueno Bldg.

1-14-4, Higashi-Ueno, Taito-Ku, Tokyo

Real Estate

7,460

7,871

NOF Toyo-cho Bldg.

1-6-35 Shinsuna, Koto-ku, Tokyo

8,580

7,117

NOF Technoport Kamata Center Bldg.

2-16-1 Minami-Kamata, Ota-ku, Tokyo

7,330

6,427

Toho Edogawabashi Bldg.

1-24-8 Sekiguchi Bunkyo-ku, Tokyo

Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Real Estate

1,630

2,100

Toshin Meguro Bldg.

2-20-28 Shimo Meguro, Meguro-ku, Tokyo

1,160

1,343

Crystal Park Bldg.

1-1-3 Gotenyama, Musashino City, Tokyo

Beneficial Interest in
Real Estate Trust
Real Estate

3,840

3,629

Kichijoji Mark Bldg.

1-10-31, Kichijoji Honcho, Musashino City, Tokyo

1,780

1,813

Faret Tachikawa Center Square

2-36-2 Akebono-cho, Tachikawa City, Tokyo

5,140

2,986

NOF Kawasaki Higashiguchi Bldg.

3-1 Ekimae Honcho, Kawasaki-ku, Kawasaki City, Kanagawa(Note 4)
1-11-11 Kita-Saiwai, Nishi-ku, Yokohama City, Kanagawa

Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Real Estate

9,200

9,492

6,853

5,011

4,080

3,334

2,600

2,938

59,65354,064

NOF Yokohama Nishiguchi Bldg.
NOF Shin-Yokohama Bldg.
Yokohama Odori Koen Bldg.

2-15-16 Shin-Yokohama, Kohoku-ku, Yokohama City,
Kanagawa
2-4-1 Horai-cho, Naka-ku, Yokohama City, Kanagawa (Note 4)

Subtotal

Other Cities
Beneficial Interest in
Real Estate Trust
Real Estate

6,666

7,435

4,890

5,295

JCB Sapporo Higashi Bldg.

4-2-2 Kitaichijo-nishi, Chuo-ku, Sapporo City, Hokkaido(Note 4)2-15-1, Kitashichijyo-Nishi, Kita-ku, Sapporo City, Hokkaido(Note 4)1-1 Minamiichijo-Nishi Chuo-ku, Sapporo City (Note 4)

Real Estate

3,370

3,773

NOF Sendai Aoba-dori Bldg.

2-1-2 Ichiban-cho, Aoba-ku, Sendai City, Miyagi

3,090

3,185

NOF Utsunomiya Bldg.

2-1-1 Baba-dori, Utsunomiya City, Tochigi

3,150

2,578

NOF Nagoya Yanagibashi Bldg.

1-16-28 Meieki-Minami, Nakamura-ku, Nagoya City, Aichi

Omron Kyoto Center Bldg.
SORA Shin-Osaka 21

801 Minami Fudodo-cho, Horikawa Higashi-iru, Shiokoji-dori,Shimogyo-ku, Kyoto City, Kyoto (Note 4)
2-1-3 Nishi-Miyahara, Yodogawa-ku, Osaka City

Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Real Estate

NRE Osaka Bldg.

1-8-15 Azuchi-cho, Chuo-ku, Osaka City, Osaka

NRE Nishi-Umeda Bldg.

2-1-22, Umeda, Kita-Ku, Osaka City, Osaka

NRE Yotsubashi Bldg.

1-4-4 Awaza, Nishi-ku, Osaka City, Osaka

NOF Kobe Kaigan Bldg.

3 Kaigan-dori, Chuo-ku, Kobe City, Hyogo (Note 4)

Sapporo North PlazaNRE Sapporo Bldg.

26

3,410

3,704

20,90023,058

16,20019,335

Beneficial Interest in
Real Estate Trust
Real Estate

9,760

6,419

5,120

5,741

Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust

5,950

3,661

3,200

2,948

NRE Hiroshima Bldg.

2-23 Tatemachi, Naka-ku, Hiroshima City, Hiroshima

EME Hakata Ekimae Bldg.

1-15-20 Hakata Ekimae, Hakata-ku, Fukuoka City, Fukuoka

NOF Tenjin-Minami Bldg.

3-6-15 Watanabe Dori, Chuo-ku, Fukuoka City, Fukuoka

Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust

Subtotal
Grand total

2,120

2,614

5,280

6,736

2,280

3,767

95,386407,229

100,255
373,833

Note 1: “Appraisal Value as of Apr. 30, 2009” stands for the prices appraised by the estate surveyors in accordance with the provisions of the Company’s Articles of Incorporationand the “Rules Concerning Calculations of Investment Corporations” (Cabinet Office Regulation No. 47 of 2006). The appraisal prices are calculated by Japan Real Estate
Institution, Tanizawa Sogo Appraisal Co., Ltd., Daiwa Real Estate Appraisal, Co., Ltd., HIRO & REAS Network, Inc., Appraisal Firm A-Square Co., Ltd., Chuo Real EstateAppraisal Co., Ltd., or Morii Appraisal & Investment Consulting Inc. using the capitalization approach, with the end of the eleventh fiscal period, i.e. April 30, 2009, being
taken as the point of evaluation.
Note 2: “Book Value” stands for the aggregate purchase price of lands, buildings, structures, machinery and equipments, tools and fixtures, leased assets, construction in progress,
and leaseholds owned directly or held in trust, less depreciation including expenses associated with these purchases.
Note 3: The Company’s stake in this property is quasi co-ownership of 50.1% of entirety. The appraisal value and book value as of April 30, 2009 accounted solely for the quasi co-ownership.
Note 4: Residential indication of the property is not available yet.
Note 5: In addition to the buildings in the table, the Fund is scheduled to acquire “NOF Nagoya Fushimi Bldg (tentative)” on October 30, 2009. As the building is currently under construction, its “Surveyed value” as of April 30, 2009 is ¥2,600 million. The “Surveyed value” is calculated by the appraiser using a certain appraisal method based on certain dateassuming that the building shall be completed in accordance with the Drawing and specification. Hence, the value may vary from the actual appraisal value after the completion.

Name of Property
Central Tokyo
Shinjuku Nomura Bldg.
JAL Bldg.
NOF Nihonbashi-Honcho Bldg.
Tennozu Park Side Bldg.
Shinjuku Sanshin Bldg.
NOF Shibuya Koen-dori Bldg.
Secom Medical Bldg.
NOF Shiba Bldg.
Nishi-Shinjuku Showa Bldg.
NRE Shibuya Dogenzaka Bldg.
NOF Tameike Bldg.
Iwamoto-cho Toyo Bldg.
NOF Shinagawa Kounan Bldg.
NOF Surugadai Plaza Bldg.
PMO Nihonbashi Honcho
NRE Higashi-nihonbashi Bldg.
Hatchobori NF Bldg.
NOF Kanda Iwamoto-cho Bldg.
MY Higashi Gotanda Bldg.
Central Kyobashi Bldg.
NOF Minami-Shinjuku Bldg.
Central Shintomicho Bldg.
Sunworld Yotsuya Bldg.
Subtotal
Suburban Tokyo
NRE Ueno Bldg.
NOF Toyo-cho Bldg.
Technoport Kamata Center Bldg.
Toho Edogawabashi Bldg.
Toshin Meguro Bldg.
Crystal Park Bldg.
Kichijoji Mark Bldg.
Faret Tachikawa Center Square
NOF Kawasaki Higashiguchi Bldg.
NOF Yokohama Nishiguchi Bldg.
NOF Shin-Yokohama Bldg.
Yokohama Odori Koen Bldg.
Subtotal
Other Cities
Sapporo North PlazaNRE Sapporo Bldg.
JCB Sapporo Higashi Bldg.
Kita-Sanjo Bldg. (Note 3)
NOF Sendai Aoba-dori Bldg.
NOF Utsunomiya Bldg.
NOF Nagoya Yanagibashi Bldg.
Omron Kyoto Center Bldg.
SORA Shin-Osaka 21
NOF Midosuji Bldg. (Note 3)
NRE Osaka Bldg.
NRE Nishi-Umeda Bldg.
NRE Yotsubashi Bldg.
NOF Kobe Kaigan Bldg.
Hiroshima Tatemachi NOF Bldg. (Note 3)
NRE Hiroshima Bldg.
EME Hakata Ekimae Bldg.
NOF Tenjin-Minami Bldg.
Subtotal
Grand Total

11th Period (from Nov. 1, 2008 to Apr. 30, 2009)

10th Period (from May 1, 2008 to Oct. 31, 2008)

at Period End
RentalPortionRevenues
of Rental
Number of
Revenues
Occupancy during the
Tenants(%)(Note 1)
Rate (%) Period (¥ mln)

at Period End
Number ofOccupancy
Tenants
Rate (%)(Note 1)

RentalRevenues
during the
Period (¥ mln)

Portionof Rental
Revenues
(%)

83
1
12
16
14
3
1
9
21
6
12
7
5
1
6
6
7
7
13
8
5
7
1
251

97.3
100.0
95.9
98.3
94.8
100.0
100.0
100.0
100.0
100.0
90.7
100.0
100.0
100.0
87.5
100.0
100.0
90.6
100.0
100.0
100.0
100.0
100.0
98.2

1,990
(Note 2)
865
805
317
369
(Note 2)
353
325
194
220
154
230
(Note 2)
102
91
91
147
40
86
103
69
(Note 2)
7,989

13.9
(Note 2)
6.1
5.6
2.2
2.6
(Note 2)
2.5
2.3
1.4
1.5
1.1
1.6
(Note 2)
0.7
0.6
0.6
1.0
0.3
0.6
0.7
0.5
(Note 2)
55.9

81
1
12
15
15
3
1
9
21
6
13
7
4
1
–
–
6
8
–
9
5
7
1
225

96.2
100.0
95.9
100.0
94.8
100.0
100.0
100.0
100.0
100.0
100.0
100.0
87.9
100.0
–
–
72.8
100.0
–
100.0
100.0
100.0
100.0
97.8

1,970
(Note 2)
909
830
241
371
(Note 2)
357
339
37
234
102
231
(Note 2)
–
–
94
156
–
55
105
49
(Note 2)
7,505

14.2
(Note 2)
6.5
6.0
1.7
2.7
(Note 2)
2.6
2.4
0.3
1.7
0.7
1.7
(Note 2)
–
–
0.7
1.1
–
0.4
0.8
0.4
(Note 2)
53.9

8
1
14
6
1
9
6
16
24
29
7
13
134

96.8
100.0
97.2
88.7
100.0
100.0
100.0
94.2
91.7
93.1
87.3
90.9
95.3

141
(Note 2)427
67
(Note 2)
134
43
229
322
253
73
113
2,142

1.0
(Note 2)3.0
0.5
(Note 2)
0.9
0.3
1.6
2.3
1.8
0.5
0.8
15.0

–
1
15
7
1
10
–
16
27
30
3
14
124

–
100.0
100.0
100.0
100.0
100.0
–
98.9
98.8
95.5
100.0
94.0
99.0

–
(Note 2)411
71
(Note 2)
141
–
246
335
261
(Note 2)
116
2,101

–
(Note 2)3.0
0.5
(Note 2)
1.0
–
1.8
2.4
1.9
(Note 2)
0.8
15.1

39
6
1
–
28
23
11
1
25
–
25
11
16
34
–
11
33
12
276

89.4
100.0
100.0
–
90.4
96.2
91.3
100.0
91.5
–
93.6
100.0
94.7
97.2
–
94.1
87.6
82.2
94.8

2.4
0.9
(Note 2)
0.3
1.2
1.2
1.0
(Note 2)
4.1
1.2
3.6
1.4
2.2
1.3
0.5
1.3
1.3
0.1
29.1

40
–
1
17
29
24
11
1
23
15
25
11
16
35
27
15
37
–
327

89.7
–
100.0
97.3
100.0
97.6
91.3
100.0
97.2
86.6
100.0
100.0
94.7
98.6
87.5
91.9
93.5
–
96.1

96.4

100.0

676

97.3

330
–
(Note 2)
116
175
173
151
(Note 2)
634
448
546
41
318
191
104
204
138
–
4,319
13,925(Note 4)2.4–
(Note 2)
0.8
1.3
1.2
1.1
(Note 2)
4.6
3.2
3.9
0.3
2.3
1.4
0.8
1.5
1.0
–
31.0

661

338
130
(Note 2)
47
165
168
140
(Note 2)
586
169
510
202
311
190
69
179
189
8
4,149
14,281(Note 4)100.0

Note 1: In the case a master lease agreement is in place, in which the master tenant of the said lease agreement subleases a part or whole of the leased floor spaces to the end
tenants, only the master tenant is counted as the number of tenants. For PMO Nihonbashi Honcho, which involves a “pass-through type” master lease agreement where
the amount of rent received from the master tenant is the same as the rent received by said master tenant from the end tenant, the total number of end tenants is shown.
In the case more than one space within the same building are leased by the same tenant, such spaces are combined to count for just one tenant. However, when the sametenant leased floor spaces in more than one building, such spaces are counted separately for each building as if they are leased by different tenants. As for Shinjuku
Nomura Building, the number of tenants in the entire building is taken into account.
Note 2: Not disclosed due to compelling reasons.
Note 3: The Company has disposed “Kita-Sanjo Bldg.” and “NOF Midosuji Bldg.” on January 14, 2009, “Hiroshima Tatemachi NOF Bldg.” on February 27, 2009.
Note 4: Subtotal of “Rental Revenues” and "Portion of Rental Revenues” for each area is not disclosed due to compelling reasons.

27

4. OUTSTANDING AMOUNT AND CURRENT PRICE OF SPECIFIED TRANSACTIONS

2. CAPITAL EXPENDITURES DURING THE ELEVENTH FISCAL PERIODThe outstanding amount and current price of the specified transactions as of April 30, 2009 are as follows.

The table below lists capital expenditures during the eleventh fiscal period in conjunction with the major works of renovation. During
the period, we have conducted engineering works totalling ¥1,750 million: capital expenditures of ¥1,376 million and repair expensesof ¥374 million combined all together.

Contract Amount (¥ mln) (Note 1)
Segment

Longer than a Year

Current
Price (¥ mln)
(Note 2)72,50069,5006835

72,50069,5006835

Type of Transaction

Interest-rate swap
Transaction other than market transaction (Receiving
floating-rate, paying fixed-rate)
Total

Name of Property (Location)

Description of Works (Purpose)

Cost of
Works (¥ mln)

Period of Works

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.

Shinjuku Nomura Bldg.
(Shinjuku-ku, Tokyo)

Renewal of basement common area
(To increase profitability)

From: Nov. 2008
To:
Mar. 2009314

5. STATUS OF THE OTHER ASSETSNOF Shibuya Koen-dori Bldg.
(Shibuya-ku, Tokyo)

Renewal of air-conditioning system(To increase quality)

From: Nov. 2008To:
Nov. 2008

59

NRE Hiroshima Bldg.
(Naka-ku, Hiroshima City)

Renewal of elevators(To increase quality)

From: Nov. 2008
To:
Mar. 200936

NOF Technoport Kamata Center Bldg. Renewal of through the wall air-conditioning system(Ota-ku, Tokyo)(To increase quality)

From: Nov. 2008
To:
Apr. 2009

114

Other Properties

From: Nov. 2008
To:
Apr. 2009

850

Other than the Trust Beneficial Interest and Real Estate listed in the table under the title “3. Details of Portfolio Properties”, theCompany had no other assets to integrate into the portfolio as of April 30, 2009.

6. STATUS OF ASSETS BY COUNTRY AND REGION
As of the end of the eleventh fiscal period, the real estate and beneficial interest in real estate trust held by the Company by country
and region are as follows.
Appraisal Value as of Apr. 30, 2009 (Note 2)
Country

Total Portfolio Amount (Note 1)

Portion of Total Portfolio

Number of
PropertiesJapan¥373,833 million¥407,229 million

100.0%

50

Total¥373,833 million¥407,229 million

100.0%

50

Improvement of features

Total

3. FUNDS RESERVED FOR THE LONG-TERM REPAIR PLANS
Subject to the long-term schedule for repairs and maintenance set down for each building, the Company has accounted for reserves fromthe operating cash flow to prepare for large-scale engineering works to be carried out in the future.

Note 1: Total portfolio amount stands for the book value after depreciation and amortization.
Note 2: Appraisal value as of Apr. 30, 2009 stands for the value appraised by the real estate appraisers.

11th Period
10th Period
9th Period
8th Period
7th Period
from Nov 1, 2008 from May 1, 2008 from Nov.1, 2007 from May 1, 2007 from Nov. 1, 2006
to Apr. 30, 2009 to Oct. 31, 2008 to Apr. 30, 2008 to Oct. 31, 2007 to Apr. 30, 2007

Capital Expenditures

Balance brought forward from the previous period
Amount reserved during the period
Amount used during the period
Balance brought forward to the next period

1. PLAN OF CAPITAL EXPENDITURES
The table below lists major capital expenditures in conjunction with the refurbishment and/or renewal works scheduled for the future(finished in part) on the properties held as of April 30, 2009. The estimated cost of works includes the amount to be charged as“expenses” for accounting purposes.
Estimated Cost (¥ mln)
Paid during
Paid before
11th Period
11th Period

Description of Works (Purpose)

Estimated
PeriodNOF Shibuya Koen-dori Bldg.
(Shibuya-ku, Tokyo)

Renewal of air-conditioning system(To increase quality) (Note)

From: May. 2009To:
Nov. 2009

133

–

–

NRE Hiroshima Bldg.
(Naka-ku, Hiroshima City)

Renewal of elevators(To increase quality) (Note)

From: May. 2009
To:
Aug. 2009

69

–

–

200

–

–

Name of Property (Location)

NOF Technoport Kamata Center Bldg. Renewal of through the wall
(Ota-ku, Tokyo)
air-conditioning system(To increase quality) (Note)
Note: These works have already been implemented as of the date of this report.

1,376

From: May. 2009To:
Mar. 2010

Total

¥ mln

¥ mln

¥ mln

¥ mln

¥ mln

238
1,894
1,764
368

290
1,716
1,768
238

596
1,118
1,424
290

938
718
1,060
596

935
693
690
938

Expenses and Liabilities
1. EXPENSES RELATED TO ASSET MANAGEMENT

Asset management fees (Note)of which Management Fee I
of which Management Fee IIof which Management Fee III
Custodian fees
General administrative fees
Directors’ compensation
Other expenses
Total

11th Period
from Nov 1, 2008
to Apr. 30, 2009¥000

10th Period
from May 1, 2008
to Oct. 31, 2008
¥000

1,159,373
703,874
381,171
74,327
28,81367,58012,000113,228
1,380,996

1,025,096
652,019
373,077–
27,01463,70012,00074,3891,202,201

Note : In the Asset Management Agreement between the Company and the Asset Management Company, there is no provision for the acquisition fees, which are payable to the
Asset Management Company by the Company on acquisition of a new property, and such fees are non-existent.

28

29

2. STATUS OF BORROWINGS
Financial Institutions

The status of borrowings from the financial institutions as of Apr.30, 2009 is as follows.

Financial Institutions

Short-term Borrowings
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
The Mizuho Corporate Bank, Ltd.
Mitsubishi UFJ Trust and Banking Corp.
Sumitomo Trust and Banking Co., Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
The Mizuho Corporate Bank, Ltd.
Mitsubishi UFJ Trust and Banking Corp.
Sumitomo Trust and Banking Co., Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
The Mizuho Corporate Bank, Ltd.
Mitsubishi UFJ Trust and Banking Corp.
Sumitomo Trust and Banking Co., Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
The Mizuho Corporate Bank, Ltd.
Mitsubishi UFJ Trust and Banking Corp.
Sumitomo Trust and Banking Co., Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
The Mizuho Corporate Bank, Ltd.
Mitsubishi UFJ Trust and Banking Corp.
Sumitomo Trust and Banking Co., Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
Mitsubishi UFJ Trust and Banking Corp.
Sumitomo Trust and Banking Co., Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
The Mizuho Corporate Bank, Ltd.
Mitsubishi UFJ Trust and Banking Corp.
Sumitomo Trust and Banking Co., Ltd.
Subtotal

Date
Borrowed

June 24, 2008

June 26, 2008

Sep. 24, 2008

Sep. 25, 2008

Dec. 24, 2008

Dec. 24, 2008

Mar. 26, 2009

Long-term Borrowings to be Repaid within a Year
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
Mitsubishi UFJ Trust and Banking Corp.
Dec. 8, 2003
The Iyo Bank, Ltd.
The Norinchukin Bank, Ltd.
Mitsui Life Insurance Company
Taiyo Life Insurance Company
Dec. 8, 2003
Daido Life Insurance Company
Mitsui Sumitomo Insurance Co., Ltd.
The Chiba Bank, Ltd.
Feb. 27, 2006
The Hachijuni Bank, Ltd.
The Norinchukin Bank, Ltd.
Feb. 26, 2004
Mitsui Life Insurance Company
Feb. 26, 2004
The Chiba Bank, Ltd.
The Hiroshima Bank, Ltd.
Dec. 8, 2006
Tokio Marine & Nichido Fire Insurance Co. Ltd.
Subtotal
Total Short-term Borrowings

Outstanding as of Outstanding as of
Average
Apr. 30, 2009
Oct. 31, 2008
Interest Rate(¥000)(¥000)(%) (Note 1)

–
–
–
–
–
–
–
–
–
–
5,250,000
5,250,000
1,500,000
1,500,000
1,500,000
4,410,000
2,450,000
980,000
980,000
980,000
1,750,000
1,750,000
500,000
500,000
500,000
1,200,000
1,800,000
500,000
430,000
900,000
500,000
200,000
200,000
200,000
35,730,000

1,035,000
575,000
230,000
230,000
230,000
3,150,000
1,750,000
700,000
700,000
700,000
5,250,000
5,250,000
1,500,000
1,500,000
1,500,000
4,410,000
2,450,000
980,000
980,000
980,000
–
–
–
–
–
–
–
–
–
–
–
–
–
–
34,100,000

–
–
–
–
–
–
–
–
–
–
–
3,000,000
1,000,000
1,000,000
500,000
1,000,000
6,500,000
42,230,000

2,000,000
2,000,000
1,000,000
1,000,000
2,000,000
2,000,000
1,000,000
1,000,000
1,000,000
1,500,000
500,000–––––
15,000,000
49,100,000

1.29250

1.29250

Date of
Repayment

Dec. 24, 2008

June 24, 2009

1.33500

June 25, 2009

Dec. 24, 2009

1.18417Mar. 26, 2010

1.51625

Balloonpayment(Note 2)

Unsecured/
UninsuredDec. 24, 2009

1.42167

1.66750

Note

Dec. 24, 2008

1.43500

1.44333

Method of
Use ofRepayment Borrowings

Dec. 8, 2008

Dec. 8, 2008

1.19000

Feb. 26, 2009

1.77500
1.50625

Feb. 26, 2010
Feb. 26, 2010

1.48375

Feb. 26, 2010

Balloonpayment(Note 2)

Unsecured/
Uninsured

Date
Borrowed

Outstanding as of Outstanding as of
Average
Apr. 30, 2009
Oct. 31, 2008
Interest Rate(¥000)(¥000)(%) (Note 1)

Long-term Borrowings
Feb. 26, 2004–
The Norinchukin Bank
Feb. 26, 2004–
Mitsui Life Insurance Company
The Chiba Bank, Ltd.
–The Hiroshima Bank, Ltd.
Dec. 8, 2006–
Tokio Marine & Nichido Fire Insurance Co. Ltd.
–
Nippon Life Insurance Company
1,000,000
Nov. 30, 2006
Sompo Japan Insurance Inc.
1,000,000
1,000,000
Sumitomo Mitsui Banking Corp.
The Yamanashi Chuo Bank, Ltd.
1,000,000
Aug. 26, 2008
The Chugoku Bank, Ltd.
1,000,000
The Bank of Fukuoka, Ltd.
1,000,000
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
1,000,000
Mitsubishi UFJ Trust and Banking Corp.
Dec. 8, 2008
500,000
Mitsui Sumitomo Insurance Co., Ltd.
1,000,000
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
1,000,000
The Mizuho Corporate Bank, Ltd.
1,000,000
Mitsubishi UFJ Trust and Banking Corp.
Feb. 27, 2006
500,000
Sumitomo Trust and Banking Co., Ltd.
3,000,000
The Nomura Trust & Banking Co., Ltd.
2,000,000
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
4,000,000
Sumitomo Mitsui Banking Corp.
1,000,000
The Chiba Bank, Ltd.
500,000
Dec. 10, 2007
The Hachijuni Bank, Ltd.
1,000,000
The Hiroshima Bank, Ltd.
1,000,000
The Keiyo Bank, Ltd.
1,000,000
The Mizuho Corporate Bank, Ltd.
1,000,000
Mitsubishi UFJ Trust and Banking Corp.
1,000,000
Sumitomo Trust and Banking Co., Ltd.
1,000,000
Apr. 25, 2008
The Hachijuni Bank, Ltd.
1,000,000
The Yamanashi Chuo Bank, Ltd.
500,000
The Mizuho Corporate Bank, Ltd.
2,000,000
The Chuo Mitsui Trust & Banking Co., Ltd.
Mar. 19, 2007
1,000,000
The Iyo Bank, Ltd.
1,000,000
1,000,000
The 77 Bank, Ltd.
Sep. 25, 2008
The Hyakujushi Bank, Ltd.
1,000,000
2,000,000
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corp.
2,000,000
Mitsubishi UFJ Trust and Banking Corp.
1,000,000
Sumitomo Trust and Banking Co., Ltd.
2,000,000
Dec. 8, 2006
The Chuo Mitsui Trust & Banking Co., Ltd.
1,000,000
The Nomura Trust & Banking Co., Ltd.
2,000,000
The Iyo Bank, Ltd.
1,000,000
1,000,000
Mitsui Life Insurance Co., Ltd.
Taiyo Life Insurance Company
1,000,000
Daido Life Insurance Company
1,000,000
Nov. 29, 2005
National Mutual Insurance Federation of Agricultural Cooperative
1,000,000
Development Bank of Japan
1,000,000
National Mutual Insurance Federation of Agricultural Cooperative Dec. 9, 2005
1,000,000
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
2,000,000
Sumitomo Mitsui Banking Corp.
1,500,000
Mitsubishi UFJ Trust and Banking Corp.
2,500,000
Feb. 26, 2008
The Chuo Mitsui Trust & Banking Co., Ltd.
1,000,000
The Iyo Bank, Ltd.
500,000
1,000,000
Mitsubishi UFJ Trust and Banking Corp.
Sep. 25, 2008
Sumitomo Trust and Banking Co., Ltd.
1,000,000
3,000,000
Mitsubishi UFJ Trust and Banking Corp.
Sumitomo Mitsui Banking Corp.
3,000,000
Nov. 4, 2008
Mitsubishi UFJ Trust and Banking Corp.
2,000,000
Sumitomo Trust and Banking Co., Ltd.
2,000,000
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
2,000,000
Sumitomo Mitsui Banking Corp.
June 27, 2008
2,000,000
The Mizuho Corporate Bank, Ltd.
1,000,000
Mar. 17, 2005
1,000,000
Development Bank of JapanThe Daiichi Mutual Life Insurance Company Dec. 8, 2006
2,000,000
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
1,000,000
Sumitomo Mitsui Banking Corp.
4,500,000
Dec. 8, 2008
Mitsubishi UFJ Trust and Banking Corp.
1,000,000
The Iyo Bank, Ltd.
1,000,000
Taiyo Life Insurance Company
1,000,000
Daido Life Insurance Company
Mar. 19, 2007
1,000,000
Sumitomo Life Insurance Company
2,000,000
The Daiichi Mutual Life Insurance Company Feb. 26, 2008
3,000,000
Taiyo Life Insurance Company
1,000,000
Sumitomo Life Insurance Company
June 24, 2008
3,000,000
Development Bank of Japan
4,000,000
Subtotal
102,000,000
Total
144,230,000

3,000,000
1,000,000
1,000,000
500,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000–––
1,000,000
1,000,000
500,000
3,000,000
2,000,000
4,000,000
1,000,000
500,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
500,000
2,000,000
1,000,000
1,000,000
1,000,000
1,000,000
2,000,000
2,000,000
1,000,000
2,000,000
1,000,000
2,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
2,000,000
1,500,000
2,500,000
1,000,000
500,000
1,000,000
1,000,000––––
2,000,000
2,000,000
1,000,000
1,000,000
2,000,000––––
1,000,000
1,000,000
2,000,000
3,000,000
1,000,000
3,000,000
4,000,000
88,500,000
137,600,000

Date of
Repayment

1.77500
1.50625

Feb. 26, 2010
Feb. 26, 2010

1.48375

Feb. 26, 2010

1.65500

Aug. 26, 2010

1.12667

Aug. 26, 2010

1.35750

Dec. 8, 2010

1.68000

Feb. 26, 2011

1.43200

June 10, 2011

1.44800

Aug. 25, 2011

1.63825

Aug. 26, 2011

1.43950

Sep. 25, 2011

1.89764

Feb. 26, 2012

1.43750

Aug. 26, 2012

1.53625

Aug. 26, 2012

1.46000

Aug. 26, 2012

1.61150

Sep. 25, 2012

1.51175

Nov. 4, 2012

1.87200

Dec. 27, 2012

1.75250
1.99250

Feb. 26, 2013
Feb. 26, 2013

1.68680

Dec. 8, 2013

1.98000

Mar. 19, 2014

1.91875

Feb. 26, 2015

2.31750

June 24, 2015

Use of
Method of
Repayment Borrowings

Balloonpayment(Note 2)

Note

Unsecured/
Uninsured

Note 1: The average interest rate is weighted by the balance of each borrowing as at the end of the period and rounded to the nearest fifth decimal place. As for the borrowings,
which were hedged by interest-rate swaps for the purpose of avoiding interest rate fluctuation risk, the swapped interest rates are used to calculate the weighted averageof interest.
Note 2: The use of borrowings is to purchase property-related assets, the related miscellaneous expenses and the repayment of borrowings.

30

31

3. STATUS OF INVESTMENT CORPORATION BONDS

3. PRICE INVESTIGATIONThe status of investment corporation bonds issued as of April 30, 2009 is as follows.

(1) Real Estates

Balance as ofApr. 30, 2009(¥ mln)Balance as ofOct. 31, 2008(¥ mln)Interest
Rate(%)

Maturity Date

Method of
Repayment

1.85

Mar. 16,
2015

Balloon(Note 1) (Note 2)
payment

5,000

2.47

Mar. 16,
2020

Balloon(Note 1) (Note 2)
payment

10,00010,0001.19

Nov. 29,2010

Balloon(Note 1) (Note 3)
payment

Nov. 28,
2005

10,00010,0002.05

Nov. 30,
2015

Balloon(Note 1) (Note 3)
payment

Mar. 19,
2007

5,000

5,000

1.61

Mar. 19,2012

Balloon(Note 1) (Note 3)
payment

Sixth Series Unsecured Investment Mar. 19,
Corporation Bonds
2007

5,000

5,000

2.21

Mar. 17,2017

Balloon(Note 1) (Note 3)
payment

2.90

Mar. 17,
2028

Balloon(Note 1) (Note 3)
payment

Name of Bonds

Issue DateFirst Series Unsecured Investment
Corporation Bonds

Mar. 16,
2005

5,000

5,000

Second Series Unsecured
Investment Corporation Bonds

Mar. 16,
2005

5,000

Third Series Unsecured Investment Nov. 28,
Corporation Bonds
2005
Fourth Series Unsecured
Investment Corporation Bonds
Fifth Series Unsecured Investment
Corporation Bonds

Seventh Series Unsecured
Investment Corporation Bonds
Total

Mar. 19,
2007

4,500

4,500

44,50044,500Acquisition/Disposition

Acquisition/
Disposition
Use ofProceeds

Note

Note 1: The uses of proceeds are to purchase the property-related assets, pay for the costs, and to repay borrowings.
Note 2: Ranking Pari Passu among the investment corporation bonds for qualified institutional investors only.
Note 3: Ranking Pari Passu among the specified investment corporation bonds.

4. STATUS OF SHORT-TERM INVESTMENT CORPORATION BONDS
There are no outstanding short-term investment corporation bonds as of the end of the eleventh fiscal period.

Acquisition
Acquisition
Acquisition
Acquisition
Acquisition
Disposition
Disposition
Acquisition
Disposition
Acquisition
Note:

Note:
Note:

Price (¥ mln)

Appraisal
Value (¥ mln)

Nov. 5, 2008
Nov. 5, 2008
Jan. 14, 2009
Jan. 14, 2009

5,000
5,300
4,060
7,830

5,000
5,300
4,060
7,830

Kichijoji Mark Bldg.

Jan. 14, 2009

1,800

1,800

Kita-Sanjo Bldg.
NOF Midosuji Bldg.
MY Higashi Gotanda Bldg.

Jan. 14, 2009
Jan. 14, 2009
Feb. 27, 2009

2,630
14,0003,010

2,780
14,0003,010

Hiroshima Tatemachi NOF Bldg.

Feb. 27, 2009

2,210

2,060

NOF Tenjin-Minami Bldg.

Mar. 27, 2009

3,739

2,290

Type of Asset

Name of Property

Date

Real Estate
Real Estate
Real Estate
Real Estate
Beneficial Interest in Real
Estate Trust
Real Estate
Real Estate
Real Estate
Beneficial Interest in
Real Estate Trust
Beneficial Interest in
Real Estate Trust

PMO Nihonbashi Honcho
NRE Sapporo Bldg.
NRE Higashi-nihonbashi Bldg.
NRE Ueno Bldg.

The price investigation procedures were conducted by Ernst & Young ShinNihon LLC at the time of acquisition or disposition in accordance with the guidance under “Price
Investigation of Specified Assets Held by Investment Trusts and Investment Corporations”, Industry Audit Committee Report No. 23 issued by The Japanese Institute ofCertified Public Accountants. The Company has received detailed reports including the location and lot number to identify these properties.
“Acquisition price” and “Disposition price” do not include various costs (intermediary fees, taxes and duties, etc.) required for acquisition or disposition of the property (thepurchase and sale price of the real estate, etc., as indicated in the Transfer Agreement of Trust Beneficial Interest or Real Estate).
Please refer to “Note 3” of “1. STATUS OF REAL ESTATES AND ASSET-BACKED SECURITIES TRADING” mentioned above.

(2) Others
With regard to the properties the Company has traded but not included in the above table”(1) Real Estates,” the price investigation
procedures ware conducted by Ernst & Young ShinNihon LLC subject to the requirement by Article 201 of the Investment Trust
Law.
For the eleventh fiscal period (from November 1, 2008 to April 30, 2009), two OTC derivatives transactions were subject toinvestigation. Ernst & Young ShinNihon LLC was requested to investigate the details of three transactions including the name ofcounterparty, issues, the number of execution, financial instruments/monetary indicators, put/call options, exercise prices, theperiod of execution of right, the trading period, etc. The investigation report has been received.

4. TRANSACTIONS WITH RELATED PARTIES AND MAJOR SHAREHOLDERS

Trading during the Eleventh Fiscal Period(1) Transactions
Table of transactions in respect of specified assets entered into with related parties and major shareholders during the eleventh
fiscal period is as follows.

1. STATUS OF REAL ESTATES AND ASSET-BACKED SECURITIES TRADING

Purchase (¥000)

Acquisition

Disposition(Loss)
Price (¥ mln) Book Value Gain(¥ mln)(Note 1) (¥ mln)
(Note 2)Type of Asset

Name of Property

Date

Price (¥ mln)
(Note 1)

Real Estate
Real Estate
Real Estate
Real Estate
Beneficial Interest in Real
Estate Trust
Real Estate
Real Estate (Note 3)
Real Estate
Beneficial Interest in Real
Estate Trust
Beneficial Interest in Real
Estate Trust
Total

PMO Nihonbashi Honcho
NRE Sapporo Bldg.
NRE Higashi-nihonbashi Bldg.
NRE Ueno Bldg.

Nov. 5, 2008
Nov. 5, 2008
Jan. 14, 2009
Jan. 14, 2009

5,000
5,300
4,060
7,830

–
–
–
–

–
–
–
–

–
–
–
–

–
–
–
–

Kichijoji Mark Bldg.

Jan. 14, 2009

1,800

–

–

–

–

Kita-Sanjo Bldg.
NOF Midosuji Bldg.
MY Higashi Gotanda Bldg.

––
Feb. 27, 2009

–
–
3,010

Jan. 14, 2009 2,630
Jan. 14, 2009 14,000
–
–

3,411
12,838
–

6785
1,128
–

Hiroshima Tatemachi NOF Bldg.

––

Feb. 27, 2009

2,210

2,434

6248

NOF Tenjin-Minami Bldg.

Mar. 27, 2009

3,739

–

–

–

–

30,739Date

18,84018,68494Note 1: “Acquisition price” and “Disposition price” do not include various costs (intermediary fees, taxes and duties, etc.) required for acquisition or disposition of the property (thepurchase and sale price of the real estate, etc., as indicated in the Transfer Agreement of Trust Beneficial Interest or Real Estate).
Note 2: For dispositions, other sales expenses in addition to the above have been incurred, and“ Gain (Loss)” is inclusive of this amount.
Note 3: For NOF Midosuji Bldg., the asset held by the Company was beneficial interest in real estate trust. As a beneficiary, the Company instructed the trustee to sell the realestate. In conjunction with this sale, the trust pertaining to NOF Midosuji Bldg. has been terminated, and the cash proceeds received by the trustee from the buyer weredelivered to the Company as trust assets.

2. STATUS OF OTHER ASSETS
Other than the above-mentioned properties and asset-backed securities, the Company’s assets are mostly comprised of direct bankdeposits and bank deposits in trust.

32

(%)

30,739,000
Total amountAmount purchased from related parties andmajor shareholders
23,990,000(78.0%)
Details of transaction with related parties and major shareholders
Nomura Real Estate Development Co., Ltd.
23,990,000(100.0%)
NREG Toshiba Building Co., Ltd.
–
( –%)
Total
23,990,000(100.0%)
Note:

Sale (¥000)(%)

18,840,000
Amount sold to related parties andmajor shareholders
18,840,000(100.0%)7,140,000
11,700,000
18,840,000(37.9%)(62.1%)(100.0%)Related parties and major shareholders refer to those bodies that have business interest and major stake in the Asset Management Companies defined by Article 29-4,
Paragraph 2 of Financial Instruments and Exchange Law, with which the Company, stipulated by article 123 of Enforcement Order of Investment Trust Law, has an AssetManagement Agreement.

(2) Fees Paid to Related Parties and Major Shareholders
Table of fees paid to related parties and major shareholders during the eleventh fiscal period is as follows.
Name of Related Party and Major Shareholders

Contract-out fees
Property management fees
Other expenses

Amount Paid (A)(¥000)

Nomura Building Management Co., Ltd. (Note 1)
Flagship Properties, Inc. (Note 2)
Nomura Real Estate Development Co., Ltd.
Nomura Building Management Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Building Management Co., Ltd.

646,382916
193,603
24,042
44,25525,500Total Amount Paid (B)(¥000)

1,105,726
289,648
124,992

Portion(A) / (B)
(%)

58.5
0.1
66.8
8.3
35.4
20.4

Note 1: In addition to the Property Management Agreement, the Company has entrusted Nomura Building Management Co., Ltd. with daily maintenance of building and equipments, the cost of which is included in “Contract-out Fees”.
Note 2: The Company has entrusted certain jobs such as receipt of rents, payment of disbursements and notification of repairs in conjunction with the sublease of JAL Building to
Flagship Properties. The Contract-out fees paid to Flagship Properties include remuneration for these services.
Note 3: Besides the above, the Company has made the following payments for repair works during the eleventh fiscal period.
Name of Related Party
Nomura Real Estate Development Co., Ltd.
Nomura Building Management Co., Ltd.

Amount Paid (¥000)
54,045
1,029,300

33

Financial Section
The management fees paid to the property management companies, which are related parties, are broken down as follows.
Name of Property

Shinjuku Nomura Bldg.
JAL Bldg.
Tennozu Park Side Bldg.
NOF Shibuya Koen-dori Bldg.
Secom Medical Bldg.
Nishi-Shinjuku Showa Bldg.
Nomura Shibuya Dogenzaka Bldg.
NOF Tameike Bldg.
NOF Shinagawa Konan Bldg.
NOF Surugadai Plaza Bldg.
PMO Nihonbashi Honcho
NRE Higashi-nihonbashi Bldg.
Hatchobori NF Bldg.
NOF Minami-Shinjuku Bldg.
NRE Ueno Bldg.
NOF Technoport Kamata Center Bldg.
Kichijoji Mark Bldg.
Faret Tachikawa Center Square
NOF Yokohama Nishiguchi Bldg.
NOF Shin-Yokohama Bldg.
NRE Sapporo Bldg.
Omron Kyoto Center Bldg.
NOF Midosuji Bldg. (Note 3)
NRE Osaka Bldg.
NRE Nishi-Umeda Bldg.
NRE Yotsubashi Bldg.
Hiroshima Tatemachi NOF Bldg. (Note 4)
NRE Hiroshima Bldg.
Shinjuku Sanshin Bldg.
MY Higashi Gotanda Bldg.
Central Kyobashi Bldg.
Central Shintomicho Bldg.
Sunworld Yotsuya Bldg.
NOF Toyo-cho Bldg.
Toshin Meguro Bldg.
NOF Kawasaki Higashiguchi Bldg.
NOF Utsunomiya Bldg.
NOF Nagoya Yanagibashi Bldg.

Property Management Fees(¥000) (Note 1) (Note 2)

Property Management Company

Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Real Estate Development Co., Ltd.
Nomura Building Management Co., Ltd.
Nomura Building Management Co., Ltd.
Nomura Building Management Co., Ltd.
Nomura Building Management Co., Ltd.
Nomura Building Management Co., Ltd.
Nomura Building Management Co., Ltd.
Nomura Building Management Co., Ltd.
Nomura Building Management Co., Ltd.
Nomura Building Management Co., Ltd.
Nomura Building Management Co., Ltd.

38,901
2,419
28,212
7,301
3,789
8,135
4,109
4,982
5,650
5,358
2,930
1,955
1,929
2,060
2,907
9,403
933
4,626
6,026
2,537
2,908
6,605
4,767
14,686
3,983
10,092
1,756
4,631
5,214
749
1,477
1,257
723
1,865
600
5,285
4,222
2,645

Note 1: “Property Management Fees” are the aggregated sum of the basic fee and the incentive fee.
Note 2: Daily maintenance of building and equipments is entrusted to Nomura Building Management, but the fees associated with such works are not included here.
Note 3: The Company has disposed the Property on January 14, 2009.
Note 4: The Company has disposed the Property on February 27, 2009.

5. STATUS OF BUSINESS WITH THE ASSET MANAGEMENT COMPANY OVER ITS SUBSIDIARY BUSINESSThere is no relevant matter under this subject as Nomura Real Estate Asset Management Co., Ltd., the asset management companyof the Company, is not in any subsidiary business.

Other Information

NOF Toyo-cho Building

1. NOTICE
Summary of execution/amendment of major agreements that have been approved by the Company’s Board of Directors are as follows:
Board of Directors Meeting
Approval Date

Approved Matter

November 4, 2008

Execution of the Special AccountManagement Agreement

December 15, 2008

Amendment of the Investment Unit
Administration Agent Agreement

Summary

Selection of Mitsubishi UFJ Trust and Banking Corporation as the
manager of special accounts, and execution of the “Special
Account Management Agreement” was approved.
Amendment of the “Investment Unit Administration Agent
Agreement” corresponding to the implementation of the electronic securities transfer system on January 5, 2009.

2. STATUS OF BENEFICIAL INTEREST IN INVESTMENT TRUSTS ESTABLISHED BY THE COMPANY

Contents

Balance Sheets ........................................................... 36
Statements of Income and Retained Earnings............ 38
Statements of Changes in Net Assets ........................ 39
Statements of Cash Flows .......................................... 40
Notes to Financial Statements .................................... 41

Not applicable.

3. OTHER MATTERS
For the purpose of this report, the numbers of amount below unit are truncated and the numbers in percentage are rounded to unit
unless otherwise mentioned specifically.

34

35

Balance Sheets

As of April 30, 2009

Thousands of Yen
As of October 31, 2008ASSETS
Current Assets:
Cash and bank deposits
Rental receivables
Corporate taxes refundable
Other current assets
Total current assets¥

34,333,017
275,564
3,858
355,494
34,967,933¥

38,567,826
294,748
6,353
260,218
39,129,145

263,516,082
121,357,088
1,172,733
214,744
31,42333,095257,244,529
114,639,528
997,100
210,179
31,42342,202

SubtotalLess accumulated depreciation
Net property and equipment

386,325,165(14,393,003)
371,932,162

373,164,961(13,086,726)
360,078,235

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

As of October 31, 2008

LIABILITIESProperty and Equipment, at Cost:Land
Buildings and structures
Machinery and equipment
Tools, furniture and fixtures
Lease assets
Construction in progress

Investments and Other Assets:
Leasehold right
Intangible assets
Long-term prepaid expenses
Security deposits
Deferred investment corporation bond issuance costs
Total investments and other assets

Thousands of Yen
As of April 30, 2009

1,900,905
3,201
41,165
410,850
96,802
2,452,923

1,900,905
3,493
57,730411,300
103,438
2,476,866¥ 409,353,018¥ 401,684,246

Current Liabilities:
Trade accounts payable
Other accounts payable
Short-term debt
Accrued expenses
Accrued consumption taxes
Rent received in advance
Other current liabilities
Total current liabilities¥

739,721
1,530,105
42,230,000
918,51954,7532,286,617
79,70147,839,416¥

821,170
1,475,833
49,100,000
712,984
53,222
2,366,636
15,14854,544,993

Long-term Liabilities:
Investment corporation bonds
Long-term debt
Security deposits from tenants
Other long-term liabilities
Total long-term liabilities

44,500,000
102,000,000
24,146,613
19,039170,665,652

44,500,000
88,500,000
23,405,390
22,494
156,427,884

Total Liabilities

218,505,068

210,972,877

Unitholders' Equity:
Unitholders' capital
Retained earnings
Total unitholders' equity

185,455,447
5,392,503
190,847,950

185,455,447
5,255,922
190,711,369

Total Net Assets

190,847,950

190,711,369¥ 409,353,018¥ 401,684,246

NET ASSETS

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

36

37

Statements of Income and Retained Earnings

Statements of Changes in Net Assets

For the period
from November 1, 2008
to April 30, 2009

Thousands of Yen
For the period
from May 1, 2008
to October 31, 2008

For the period from November 1, 2008 to April 30, 2009
Thousands of Yen
Unitholders'CapitalRetained
Earnings

Total
Unitholders'Equity305,123¥185,455,447¥5,255,922¥190,711,369––¥190,711,369

–
–

–
–

(5,255,744)
5,392,325(5,255,744)
5,392,325

–
–

–
–

(5,255,744)
5,392,325

305,123¥185,455,447¥5,392,503¥190,847,950––¥190,847,950

Units

Operating Revenues and Expenses
Balance as of October 31, 2008
Operating Revenues:
Real estate rental revenues
Gain on sales of real estate¥

Operating Expenses:
Real estate rental expenses
Loss on sales of real estate
Asset management fees
Administrative service and custodian fees
Other operating expenses

Operating Profit

14,281,598
1,128,049¥

13,925,429–

15,409,647

13,925,429

5,917,157
1,033,415
1,159,373
96,394125,229

5,790,875–
1,025,096
90,71686,3908,331,568

6,993,077

7,078,079

6,932,352

Cash distribution paid
Net income
Balance as of April 30, 2009

Deferred
Total Valuation
Total
Hedge Gains and Translation(Losses)
Adjustments Net Assets

For the period from May 1, 2008 to October 31, 2008
Thousands of Yen

Balance as of April 30, 2008
Issuance of new investment units
Cash distribution paid
Net income
Balance as of October 31, 2008

Units

Unitholders'CapitalRetained
Earnings

Total
Unitholders'Equity265,903¥156,767,193¥4,500,001¥161,267,194––¥161,267,194

39,220––28,688,254–––(4,499,877)
5,255,798

28,688,254(4,499,877)
5,255,798

–
–
–

–
–
–

28,688,254(4,499,877)
5,255,798

305,123¥185,455,447¥5,255,922¥190,711,369––¥190,711,369

Deferred
Total Valuation
Total
Hedge Gains and Translation(Losses)
Adjustments Net Assets

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

Non-Operating Revenues and Expenses
Non-Operating Revenues:
Interest income
Other non-operating revenues

30,545
33,10636,97540,17363,651

77,1481,154,971
84,941–
428,087
6,636–
73,847916,963
119,319
51,378432,525
38,49150,788143,205

1,748,482

1,752,669

5,393,248

5,256,831

Income Taxes:
Current
Deferred

917
6

1,032
1

Net Income

5,392,325

5,255,798

178

124

Non-Operating Expenses:
Interest expense
Loan arrangement fees
Interest expense on short-term investment corporation bonds
Interest expense on investment corporation bonds
Amortization of investment corporation bond issuance costs
New investment units issuance costs
Other non-operating expenses

Income before Income Taxes

Retained earnings brought forward
Retained Earnings at End of Period¥

5,392,503¥

5,255,922

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

38

39

Statements of Cash Flows

Notes to Financial Statements

For the period
from November 1, 2008
to April 30, 2009

Thousands of Yen
For the period
from May 1, 2008
to October 31, 2008

Cash Flows
Cash Flows from Operating Activities
Income before income taxes
Depreciation
Amortization of long-term prepaid expenses
Amortization of investment corporation bond issuance costs
Interest income
Interest expense
Loss on disposal of property and equipment
Decrease(Increase) in rental receivables
Decrease in consumption taxes refundable(Decrease)Increase in trade accounts payable
Increase(Decrease) in other accounts payable
Increase in accrued consumption taxes(Decrease)Increase in rent received in advance
Decrease in sales of tangible fixed assets
Decrease in sales of tangible fixed assets in trust
Changes in other current assets/liabilities¥

5,393,248
1,862,688
16,5896,636(30,545)
1,583,058
879
19,185–(81,450)
245,955
1,531(80,019)
3,411,999
15,272,662(29,792)¥

5,256,831
1,793,148
10,53838,491(36,975)
1,400,866
7,600(94,689)309,378
83,883(320,025)
53,222
265,869––(69,295)

SubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by operating activities

27,592,624
23,893(1,371,542)
1,577
26,246,552

8,698,842
36,975(1,196,677)(1,858)7,537,282

Cash Flows from Investing Activities
Payments into time deposits
Payments for purchases of property and equipment
Payments for purchases of intangible assets
Reimbursement of security deposits to tenants
Proceeds from security deposits from tenants
Payments of security deposits
Proceeds from security deposits
Net cash used in investing activities(2,260,000)(32,609,632)(1,901)(2,136,298)
2,877,520–
450(34,129,861)–(44,895,113)(1,900,905)(663,840)
2,563,149(200,050)–(45,096,759)

Cash Flows from Financing Activities
Proceeds from short-term debt
Repayment of short-term debt
Proceeds from short-term investment corporation bonds
Repayment of short-term investment corporation bonds
Proceeds from long-term debt
Repayment of long-term debt
Proceeds from issuance of new investment units
Distributions to unitholders
Net cash provided by financing activities

12,930,000(11,300,000)––
20,000,000(15,000,000)–(5,241,500)
1,388,500

34,100,000(14,700,000)
14,954,207(35,000,000)
21,000,000(4,000,000)
28,688,253(4,498,779)
40,543,681

Net Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period
Cash and Cash Equivalents at End of Period(6,494,809)
38,567,826
32,073,017

2,984,204
35,583,622
38,567,826¥¥

1. ORGANIZATION
Nomura Real Estate Office Fund, Inc. (the “Company”) is a real estate investment corporation formed to own and invest primarily in
office 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 7, 2003, the Company was incorporated under the Law Concerning Investment Trusts and Investment Corporations(the “Investment Trust Law”) of Japan. On December 4, 2003, the Company was listed on the Tokyo Stock Exchange as the 9th
J-REIT and started operations on the following day. As of April 30, 2009, the Company owned a portfolio of 50 office properties
containing an aggregate of approximately 436,094.41 square meters of leasable area and leased office space to 661 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 Law of Japan, the Corporation
Law of Japan, the Financial Instruments and Exchange Law of Japan and related regulations, which are different in certain respects
as to the application and disclosure requirements of International Financial Reporting Standards.
The accompanying financial statements are a translation of the audited financial statements of the Company, which wereprepared in accordance 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 ispresented 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 inaccordance with Japanese GAAP.
The Company’s fiscal period is a six-month period which ends at the end of April or October. 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 orless when purchased.
Property and equipment (Except for leased assets)
Property and equipment are stated at cost, which includes the purchase price and related costs for acquisition, lessaccumulated 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 - 45 years
Machinery and equipment
3 - 15 years
Tools, furniture and fixtures
2 - 18 years
Intangible assets (Except for leased assets)
Intangible assets are amortized by the straight-line method.
Lease Transactions
Finance lease transactions, excluding the ownership of the leased assets is deemed to be transferred to the lessee, areaccounted for the straight-line method, depreciated over the lease term with no residual value.
Impairment of fixed assets
The Company reviews fixed assets for impairment whenever events or changes in circumstances indicate that the carrying
amount of its fixed assets may not be recoverable. An impairment loss is recognized if the carrying amount of its fixed assets
exceeds the respective aggregate of the estimated future cash flows. If the fixed assets are determined to be impaired, it is
written down to its recoverable amount and the write-down is recorded as an impairment loss during the current period. No
impairment losses have been recognized to date.
Deferred investment corporation bond issuance costs
Deferred investment corporation bond issuance costs are amortized over the respective terms of the bonds by the straight-line
method.
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 theearnings and expenses incurred from such trust are properly reflected in the accompanying balance sheets and statements ofincome and retained earnings, respectively.
Revenue recognition
Operating revenues consist of rental revenues including base rents and common area charges, and other operating revenues
including utility charge reimbursements, parking space rental revenues and other income. Rental revenues are generally
recognized on an accrual basis over the life of each lease. Utility charge reimbursements are recognized when earned and theiramounts are reasonably estimated.

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

40

41

Property related taxes
Property related taxes including property taxes, urban planning taxes and depreciable property taxes imposed during the fiscal
period are charged as rental expenses.
On the other hand, the Company paid the amount equivalent to the property related taxes to the respective sellers ofproperties applicable to the period since acquisition and capitalized such amounts as part of the costs to acquire suchproperties or beneficial interests in real estate. The capitalized property related taxes amounted to ¥86,862 thousand for thesix-month period ended April 30, 2009, and ¥82,023 thousand for the six-month period ended October 31, 2008.

6. SHORT-TERM DEBT

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.

Unsecured loans from banks due on December 8, 2008
Unsecured loans from insurance companies due on
December 8, 2008
Unsecured loans from banks due on December 24, 2008
Unsecured loans from banks due on December 24, 2008
Unsecured loans from banks due on February 26, 2009
Unsecured loans from banks due on June 24, 2009
Unsecured loans from banks due on June 25, 2009
Unsecured loans from banks due on December 24, 2009
Unsecured loans from banks due on December 24, 2009
Unsecured loans from a bank due on February 26, 2010
Unsecured loans from an insurance company due on
February 26, 2010
Unsecured loans from banks due on February 26, 2010
Unsecured loans from banks due on March 26, 2010
Total

Consumption taxes
Consumption taxes received and paid are not included in the accompanying statements of income and retained earnings.
Derivative financial instruments
The Company utilizes interest-rate swap contracts as derivative financial instruments only for the purpose of hedging its
exposure to changes in interest rates. The Company deferred recognition of gains or losses resulting from changes in the fairvalue of interest-rate swap contracts which meet the criteria for deferral hedge accounting.
Although the deferred hedge treatment is generally applied, effective September 1, 2006, the Company has applied
special treatment to those interest-rate swap contracts that meet the criteria for such special treatment based on the revised
Investment Trust Law (effective beginning on May 1, 2006) and partial Amendment of the Articles of Incorporation. Under the
special treatment, interest-rate swaps are not remeasured at fair value; instead, the net amount paid or received under theinterest rate swap contract is recognized and included in interest expense or income.

4. CASH AND CASH EQUIVALENTS
Cash and cash equivalents as of April 30, 2009 and October 31, 2008 consist of the following:Thousands of Yen
For the period
from November 1, 2008
to April 30, 2009

For the period
from May 1, 2008
to October 31, 2008

¥ 34,333,017(2,260,000)¥ 32,073,017¥ 38,567,826–¥ 38,567,826

Cash and bank deposits
Bank deposits with original maturities of more than three months
Cash and cash equivalents

5. SCHEDULE OF PROPERTY AND EQUIPMENT
Property and equipment as of April 30, 2009 and October 31, 2008 consist of the following:Thousands of Yen
As of April 30, 2009Land
Buildings and structures
Accumulated depreciation
Machinery and equipment
Accumulated depreciation
Tools, furniture and fixtures
Accumulated depreciation
Land in trust
Buildings and structures in trust
Accumulated depreciation
Machinery and equipment in trust
Accumulated depreciation
Tools, furniture and fixtures in trust
Accumulated depreciation
Lease assets in trust
Accumulated depreciation
Construction in progress in trust
Total

42

As of October 31, 2008

Acquisition Costs

Book Value

Acquisition Costs

Book Value¥ 54,934,510
25,545,536(986,467)
465,086(44,825)
4,790
(113)
208,581,573
95,811,551(12,950,872)
707,646(346,639)
209,954(57,670)
31,423(6,416)33,095¥371,932,162¥ 54,934,510¥ 40,439,040
18,296,244(631,536)
192,251(34,495)––
216,805,489
96,343,284(12,031,671)
804,849(337,748)
210,179(48,319)
31,423(2,957)42,202¥360,078,235¥ 40,439,040

24,559,069
420,261
4,677
208,581,573
82,860,679
361,007152,284
25,00733,095¥371,932,162

17,664,708
157,756–
216,805,489
84,311,613
467,101
161,860
28,46642,202¥360,078,235

Short-term debt as of April 30, 2009 and October 31, 2008 consists of the following:
As of April 30, 2009
Amount(Thousandsof Yen)As of October 31, 2008

Weightedaverageinterest rate

Amount(Thousandsof Yen)Weightedaverageinterest rate––

¥ 8,000,000

1.66750%––

5,000,000

1.51625%–––¥ 15,000,000
9,800,000
5,000,000
3,930,000
3,000,000–––
1.43500%
1.33500%
1.44333%
1.42167%
1.77500%

2,300,000
7,000,000
2,000,000
15,000,000
9,800,000–––

1.29250%
1.29250%
1.19000%
1.43500%
1.33500%–––

1,000,000

1.50625%––2,500,000
2,000,000¥42,230,000

1.48375%
1.18417%––¥49,100,000––

The Company entered into ¥40,000 million credit facilities in the form of commitment lines with five financial institutions for thesix-month period ended April 30, 2009 and October 31, 2008. The total unused amount of such credit facilities was ¥8,200 million asof April 30, 2009 and ¥5,900 million as of October 31, 2008.

7. LONG-TERM DEBT
Long-term debt as of April 30, 2009 and October 31, 2008 consists of the following:
As of April 30, 2009
Amount(Thousandsof Yen)Unsecured loans from a bank due on February 26, 2010
Unsecured loans from an insurance company due on
February 26, 2010
Unsecured loans principally from banks due on February 26, 2010
Unsecured loans from insurance companies due on August 26, 2010
Unsecured loans from banks due on August 26, 2010
Unsecured loans from banks due on December 8, 2010
Unsecured loans from banks due on February 26, 2011
Unsecured loans from banks due on June 10, 2011
Unsecured loans from banks due on August 25, 2011
Unsecured loans from banks due on August 26, 2011
Unsecured loans from banks due on September 25, 2011
Unsecured loans from banks due on February 26, 2012
Unsecured loans principally from insurance companies due
on August 26, 2012
Unsecured loans from a financial institution due on August 26, 2012
Unsecured loans from banks due on August 26, 2012
Unsecured loans from banks due on September 25, 2012
Unsecured loans from banks due on November 4, 2012
Unsecured loans from banks due on December 27, 2012
Unsecured loans from a bank due on February 26, 2013
Unsecured loans from an insurance company due on
February 26, 2013
Unsecured loans from banks due on December 8, 2013
Unsecured loans from insurance companies due on March 19, 2014
Unsecured loans from an insurance company due on
February 26, 2015
Unsecured loans principally from insurance companies due
on June 24, 2015
Total

As of October 31, 2008

Weightedaverageinterest rate

Amount(Thousandsof Yen)Weightedaverageinterest rate––

¥ 3,000,000

1.77500%––

1,000,000

1.50625%–¥ 2,000,000
4,000,000
2,500,000
7,500,000
8,500,000
4,500,000
4,000,000
2,000,000
11,000,000–
1.65500%
1.12667%
1.35750%
1.68000%
1.43200%
1.44800%
1.63825%
1.43950%
1.89764%2,500,000
2,000,000
4,000,000–
7,500,000
8,500,000
4,500,000
4,000,000
2,000,000
11,000,000

1.48375%
1.65500%
1.24667%–1.68000%
1.43200%
1.44800%
1.63825%
1.43950%
1.89764%5,000,000

1.43750%

5,000,000

1.43750%

1,000,000
7,500,000
2,000,000
10,000,000
5,000,000
1,000,000

1.53625%
1.46000%
1.61150%
1.51175%
1.87200%
1.75250%

1,000,000
7,500,000
2,000,000–
5,000,000
1,000,000

1.53625%
1.46000%
1.61150%–
1.87200%
1.75250%

2,000,000

1.99250%

2,000,000

1.99250%

7,500,000
4,000,000

1.68680%1.98000%–
4,000,000–
1.98000%

3,000,000

1.91875%

3,000,000

1.91875%

8,000,000

2.31750%

8,000,000

2.31750%¥102,000,000¥88,500,000

438. INVESTMENT CORPORATION BONDS

12. INCOME TAXES

Investment Corporation Bonds
Details of investment corporation bonds outstanding are summarized as follows:

The Company, as an investment corporation, is subject to corporate income taxes at a statutory tax rate of approximately 40% for
the six-month period ended April 30, 2009 and October 31, 2008. However, the Company may deduct dividend distributions paid to
its unitholders from its taxable income amounts, provided such distributions meet the requirements under the Special Taxation
Measures Law of Japan. Under this law, an investment corporation must meet a number of tax requirements, including arequirement to distribute in excess of 90% of its distributable income for the fiscal period, in order to deduct such amounts. If theinvestment 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 approximately 100% of its distributable income in the form of cash distributions totaling¥5,392,438 thousand and ¥5,255,743 thousand for the six-month period ended April 30, 2009 and October 31, 2008, respectively,
such distributions were treated as deductible distributions for purposes of corporate income taxes. The following summarizes thesignificant differences between the statutory tax rate and the effective tax rates:

As of April 30, 2009
Amount(Thousandsof Yen)First Series of Unsecured Investment Corporation Bonds
Due on March 16, 2015
Second Series of Unsecured Investment Corporation Bonds
Due on March 16, 2020
Third Series of Unsecured Investment Corporation Bonds
Due on November 29, 2010
Fourth Series of Unsecured Investment Corporation Bonds
Due on November 30, 2015
Fifth Series of Unsecured Investment Corporation Bonds
Due on March 19, 2012
Sixth Series of Unsecured Investment Corporation Bonds
Due on March 17, 2017
Seventh Series of Unsecured Investment Corporation Bonds
Due on March 17, 2028
Total

Weightedaverageinterest rate

As of October 31, 2008
Amount(Thousandsof Yen)Weightedaverageinterest rate

¥ 5,000,000

1.85000%¥ 5,000,000

1.85000%

5,000,000

2.47000%

5,000,000

2.47000%

10,000,000

1.19000%

10,000,000

1.19000%

10,000,000

2.05000%

10,000,000

2.05000%

5,000,000

1.61000%

5,000,000

1.61000%

5,000,000

2.21000%

5,000,000

2.21000%

4,500,000

2.90000%

4,500,000

2.90000%¥44,500,000¥44,500,000

Statutory tax rate
Deductible cash distributions
Other
Effective tax rates

For the period
from November 1, 2008
to April 30, 2009

For the period
from May 1, 2008
to October 31, 200839.33%(39.32)0.01
0.02%

39.39%(39.38)0.01
0.02%

13. BREAKDOWN OF REAL ESTATE RENTAL REVENUES AND EXPENSES
Real estate rental revenues and expenses for the six-month period ended April 30, 2009 and October 31, 2008 consist of thefollowing:Thousands of Yen

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

10. PER UNIT INFORMATIONThe net asset values per unit as of April 30, 2009 and October 31, 2008 were ¥625,478 and ¥625,031 respectively. Net income perunit was ¥17,672 and ¥17,563 for the six-month period ended April 30, 2009 and October 31, 2008, respectively.

11. RELATED PARTY TRANSACTIONSParent Company, corporate shareholders and otherNot applicable
Directors, individual shareholders and otherNot applicable
Subsidiary companies and otherNot applicable
Fellow subsidiary companies and otherNot applicable44

For the period
from November 1, 2008
to April 30, 2009

Real estate rental revenues
Rental revenues
Rental revenues
Common area charges
Non-rental revenues
Parking revenues
Incidental income
Other miscellaneous revenues
Real estate rental expenses
Property management costs
Property management fees
Utility expenses
Property and other taxes
Casualty insurance
Repairs and maintenance
Depreciation
Other rental expenses
Profit¥14,281,598
13,022,991
10,668,132
2,354,859
1,258,607
306,928880,072
71,607
5,917,157
1,105,726
288,967
987,226
982,905
27,100374,258
1,862,469
288,506¥ 8,364,441

For the period
from May 1, 2008
to October 31, 2008

¥13,925,429
12,493,338
10,150,767
2,342,571
1,432,091
302,604
1,056,711
72,776
5,790,875
1,069,458
317,749
1,084,225
971,039
26,729320,219
1,793,088
208,368¥ 8,134,554

45

14. BREAKDOWN OF GAIN AND LOSS ON SALES OF REAL ESTATE
Gain on sales of real estate for the six-month period ended April 30, 2009 and October 31, 2008 consist of the following:Thousands of Yen
For the period
from November 1, 2008
to April 30, 2009

Gain on sales of real estate
Proceeds from sales of real estate
Cost of sales of real estate
Other related sales expenses
Gain on sales of real estate
Loss on sales of real estate
Proceeds from sales of real estate
Cost of sales of real estate
Other related sales expenses
Loss on sales of real estate

For the period
from May 1, 2008
to October 31, 2008

¥14,000,000
12,838,587
33,364¥ 1,128,049

–
–
–
–

¥ 4,840,000
5,846,074
27,341¥ 1,033,415

–
–
–
–

15. LEASES
Finance lease agreements, excluding the ownership of the leased assets is deemed to be transferred to the lessee, are mainly tools,
furniture and fixtures in trust. Finance lease transactions excluding the ownership of the leased assets is deemed to be transferred to
the lessee are accounted for the straight-line method, depreciated over lease period and will have a salvage value of zero.
The Company, as lessor, has entered into lease agreements whose fixed monthly rents are due in advance with a lease term ofgenerally two years for offices. The future minimum rental revenues under existing non-cancelable operating lease agreements as ofApril 30, 2009 and October 31, 2008 are summarized as follows:
Thousands of Yen

Due within one year
Due after one year
Total

As of April 30, 2009

As of October 31, 2008

¥ 5,343,440¥ 4,949,373

31,726,610

32,368,785¥37,070,051¥37,318,158

16. DERIVATIVES AND HEDGE ACCOUNTING
The Company has entered into interest-rate swap contracts with several Japanese financial institutions to hedge its variable rate longterm debt obligations. The Company utilizes interest-rate swap contracts, which are derivative financial instruments, only for the
purpose of mitigating future risk of fluctuation of interest rates, but does not enter into such transactions for speculative or trading
purposes. The Company entered into such derivative transactions to hedge risk in accordance with its Articles of Incorporation andthe established risk management policies of NREAM.
Beginning the fiscal period ended October 31, 2007, the Company has applied the “special treatment” set forth in the amended
Investment Trust Law (effective beginning on May 1, 2006) and partial Amendment of the Articles of Incorporation.
The following summarizes the notional amounts and the estimated fair value of the interest-rate related positions outstanding asof April 30, 2009 and October 31, 2008:
Thousands of Yen

46

Notional amount

Estimated fair value

Unrealized loss

As of April 30, 2009
Interest-rate swaps:
Received/floating and paid/fixed¥72,500,000(¥835,254)(¥835,254)

As of October 31, 2008
Interest-rate swaps:
Received/floating and paid/fixed¥65,000,000(¥603,601)(¥603,601)

47

Profile of the Asset Management Company
PROFILE AND HISTORY OF INCORPORATION
Company:
Capital:Shareholder:
Incorporation:

Nomura Real Estate Asset Management Co., Ltd.
¥300 million (as of April 30, 2009)
Nomura Real Estate Holdings, Inc. (100%)January 24, 2003

Business Structure
Asset Custodian
Administrator ofUnitholders Register
General Administration(Accounting, etc.)

Asset Custody
Agreement

Mitsubishi UFJ Trust andBanking Corporation

Administration
Agreement, etc.

PROCESS OF DECISION-MAKING
We have ensured transparency in the decision-making process by placing agenda through the Compliance Committee, in which two
external members with professional experience sit.

AGENDA
Proposal

COMPLIANCE OFFICER
When compliance is satisﬁed

COMPLIANCES COMMITTEE
Major objectives of the Compliance Committee are:to ensure compliance with the laws and regulations applicable tothe proposed agenda,
to deliberate the contents of trade with the related parties,
to check the legal matters for the Investment Committee inmaking investment decisions.

Investment Committee deliberates on such subjects as:
Formulation and revision of investment guidelines,
Selection of properties for investment,
Formulation and revision of investment planning for the ﬁscal year,
Policy making on material articles such as funding.

DECISION MAKING
The entire process of deliberation and ﬁnal decision is reported.

COMPLIANCE COMMITTEEUSE OF INFORMATION NETWORK OF NOMURA REAL ESTATE GROUP
In order to maximize opportunity to invest in better properties, we have collected as much information as possible not only from the AssetManagement Company but also from other companies of Nomura Real Estate group as listed below.

Unitholders’ Meeting

AuditorBoard of Directors’Meeting

Ernst & Young
ShinNihon LLC

Investment

Debt Financing /Issue of Investment
Corporation Bonds

Financial Instituions,etc. / Investors ofInvestment
Corporation Bonds

RepaymentofPrincipal &Interest

Unitholders

Trading

Liabilities
Ofﬁce Buildings(Real Estate
Related Assets)

Rents, etc.

Unitholders

EquityProperty
Management
Agreement

Property
Management

Capital Investment

Asset

Property Management
Companies

Instructions forRents andManagement

Nomura Real Estate Development
Co., Ltd.
Nomura Building
Management Co., Ltd., etc.

RentalStrategies,
Plans ofRepairs, etc.

Distribution
Asset Management
Services Agreement

Asset Management Company

Property
Information
Service
Agreement, etc.

Information andResearch-related
Service Providers
Nomura Real Estate
Development Co., Ltd.
Nomura Real Estate
Urban Net Co., Ltd.
Nomura Real
Estate Investment
Management Co., Ltd.

Corporate Data
Corporate Name
Nomura Real Estate Office Fund, Inc.

INVESTMENT COMMITTEE

Nomura Real EstateOfﬁce Fund, Inc.

Corporate Office8-5-1 Nishi Shinjuku Shinjuku-ku, Tokyo
160-0023, Japan
http://www.nre-of.co.jp/english/
Date of Incorporation
August 7, 2003
Stock Listing
Tokyo Stock Exchange (Securities Code: 8959)
Fiscal Period
Six months ending on April 30 and October 31
Capital¥185,455,446,935 (as of April 30, 2009)
Number of Units Issued
305,123 (as of April 30, 2009)

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

Number of Unitholders
12,503 (as of April 30, 2009)

Disclaimer

Nomura Real Estate Ofﬁce Fund, Inc.
Nomura Real Estate Asset Management Co., Ltd.

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

General Real Estate Market

Properties owned and developed by
Nomura Real Estate Urban Net andNomura Real Estate Development

This semiannual report includes translations of certain Japanese documents originally filed under the Securities and Exchange Law ofJapan. This report was prepared in English solely for the convenience of and reference by readers outside Japan and should not be
considered as a disclosure statement. The original Japanese documents always govern the meaning and interpretation.
In general, accounting principles and practices used by real estate investment corporations in Japan (”J-REITs”) in preparing its
financial statements conform with accounting principles generally accepted in Japan (”Japanese GAAP”). However, they may differ
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.
Estimates for Nomura Office Fund’s future operating results contained in this semiannual report are forward-looking statements andare based on information currently available to Nomura Office Fund and its asset management company and are subject to risks anduncertainties. Consequently, these projections should not be relied upon as the sole basis for evaluating Nomura Office Fund. Actual
results may differ substantially from the projections depending on a number of factors.

Printed in Japan

48

http://www.nre-of.co.jp/english/