NOMURA

October 16, 2015

MASTE R
FUND

5 th

Analyst Meeting Presentation Material

Contents
1. Investment Highlights

・Investment Highlights
・5th Fiscal Period Financial Overview

4. APPENDIX
2～3
4

2. 5th Fiscal Period Overview

・Management Status of Universal CityWalk Osaka・Management Status of Logistics Properties
・Environmental Measures
・Management Status of Portfolio
・Timing of Tenant Rent Renewals
・Appraisal Value Status (5th Fiscal Period)
Status・Financial
Forecasts for the 6th fiscal period
・

6
7
8
9
10
11
12
13

3. Investment Management Strategy

・Background of the Merger
・Transformation

15
16– into One of the Largest Diversified Type REITs in Japan –・Realization of Leasing Business Value Chain
・Forecasts

・Income Statement
・Balance Sheet・Cash Flow Statement
・Overview of Property Acquired During 5th Fiscal Period
・Overview of Equity Interest in Silent Partnership During

21
22
23
24
25

5th Fiscal Period

・Overview of Property Transferred During 5th Fiscal Period
・Portfolio Data
・Portfolio List
・List of End-of Period Appraisal Value・Portfolio Map
・Unitholders (at end of 5th Fiscal Period)
・Tenant Status (at end of 5th Fiscal Period)
・Changes in Financial Performance
・Logistics Facilities Environment
・Retail Facilities Environment
・Overview of the Asset Management Company

17～18
19

October 16, 2015

26
27
28
29
30
31
32
33
34
35
36

Investment Highlights

1

Investment Highlights （1）Highlights for 5th Fiscal Period (FP)Dividend per Unit 2,217 yen (Forecast 2,130 yen (Revised on August 4), 2,490 yen (summary of financial results dated April 14)
Concluded Acquisition of Godo Kaisha Osaka Hirakata Project Silent Partnership Equity Interest and Acquisition of Kawaguchi Ryoke
Logistics Center
Concluded Transfer Agreement on Mitsubishi Motors Ibaraki Maintenance Center
Early Leasing Activity on Logistics Facilities, Connected Universal CityWalk OsakaTM with Tokyu Hotel with a deck

Investment Strategy
Portfolio Status
Kawaguchi Ryoke Logistics
CenterGodo Kaisha Osaka Hirakata
Project Silent Partnership Equity
Interest

Mitsubishi Motors Ibaraki
Maintenance Centerend of 4th FP

end of 5th FP

56

57

Number of
Properties
Asset Size

¥255.6 bln ¥266.3 bln

Portfolio NOI
Yield

Acquisition Price:¥10,790 mln

Investment Amount:
Leasable Floor
Space:¥100 mln

Leasable Floor
Space:

12,959.37 tsubo

Appraisal Value:¥11,400 mln

Appraisal Value:¥3,540 mln

NOI yield (Note):

5.4%

NOI Yield (Note):

5.3%

5,991.67 tsubo

Transfer Price:¥1,133 mln

Appraisal Value:¥908 mln

Book Value:¥829 mln

Transfer Date:

5.8 %

5.7 %

Average
Building Age 14.4 year

14.8 year

Average
Lease Term

12.4 year

12.5 year

September 1, 2015

Ratio of Tokyo
Area

79.6 %

80.4 %(Note) This indicates NOI yield obtained using direct capitalization approach on the appraisal report for the acquisition price.

2

Investment Highlights （2）Financial Strategy

Management Strategy
 Generation of stable cash flow backed by long lease periods

Ratio of contracts of
10 years or more: Diversification of repayment dates

4th FP

5th FP

70.2%

67.1%

Average Duration:

4th FP

5th FP

4.6 years

4.0 years

 Financial management that takes stability into
consideration
 Maintenance of high occupancy rate through management skills backed by
the management experience of the Asset Management Company
LTV:[Period-end Occupancy Rate]
4th FP
Total： 99.8 %5th FP[Period-end Average Rent]
4th FP

5th FP

99.3 % ¥5,518/tsubo ¥5,553/tsubo

Logistics ： 100.0 %100.0 %

¥3,705/tsubo¥3,757/tsubo： 99.3 %97.7 %¥9,221/tsubo¥9,514/tsubo

Retail

4th FP

5th FP

35.9%

38.3%

 Low level of Average Interest Rate
Average

4th FP

5th FPInterest Rate:

1.00%

0.95%

 Increase of appraisal value

End of 4th FP

End of 5th FP

Total Appraisal Value ：¥279.9 bln¥296.1 bln

Total Book Value：¥254.8 bln¥264.5 bln

Unrealized Gain：

+ ¥25.1 bln+ ¥31.6 bln

35th Fiscal Period Financial Overview
Performance of the 5th fiscal period and previous forecast
5th Period(ended August 31, 2015)

5th Period Forecasts(announced on Aug. 4, 2015)(B)

5th Period Forecasts(announced on Apr. 14, 2015)(C)

Decrease / Increase（Ａ - Ｂ）

Decrease / Increase（A－C）

Major Difference

Operating Revenues¥10,406 million¥10,369 million+￥37million

0.4%¥10,308 million+￥98million

1.0%

NOI

¥7,697 million¥7,603 million+￥93million

1.2%¥7,575 million+￥122million

1.6%

Rental Profit¥5,958 million¥5,861 million+￥96million

1.6%¥5,835 million+￥122million

2.1%

Operating Profits¥4,328 million¥4,189 million+￥138million

3.3%¥4,787 million-¥459million-9.6%

Ordinary Income¥3,693 million¥3,548 million+￥145million

4.1%¥4,130 million-¥436million-10.6%Net Income¥3,692 million¥3,547 million+￥145million

4.1%¥4,129 million-¥436million-10.6%Cash Distribution
per Unit¥2,217 /unit¥2,130 /unit+￥87 per unit

4.1%

¥2,480 /unit-¥263 per unit

-10.6%

Total Assets¥287,696 million

Interest-Bearing
Debt¥110,307 million

LTV

38.3 %<Difference in NOI>・Override
rent
increase in UCW, etc. (+¥46 mln)
<Differencein NOI>・Penalty
at Morisia
・OverrideCharges
rent increase
in UCW, etc. (+￥46 mln)
Tsudanuma(+¥28 mln)
・Penalty
Charges at Morisia
・EarlyLeasingUpofLandport
Tsudanuma(+￥28 mln)
Hachioji(+¥22 mln)
・Early Leasing Up of Landport
Hachioji(+￥22 mln)
<Difference in Operating Profits>
・Additional Recording of the Merger<Difference in Operating Profits>
Related Expenses(-¥602 mln)
・Additionalof theMerger*TheRecording
entire merger
relatedexpenses is ¥659 mln
Related Expenses(-￥602 mln)
*The
entireIncome>merger related expenses is￥659 mln<Differencein Net・Reduction in Interest and Loan
<Differencein NetIncome>Arrangement
Fees(+¥19 mln)
・Reduction in Interest and Loan
Arrangement Fees(+￥19 mln)

4

5th Fiscal Period Overview

5Management Status of Universal CityWalk OsakaTM
Transition of Sales and Override Rent “The Wizarding World of Harry Potter ”
TM

Opened July 15, 2014

Attracted tenants with high capacity to attract guests and topicality
opened 5 new stores in July and August in line with the opening ofa new hotel(Jan. 2013=100)

300
Sales

250

Status of progress in leasing

Override rent

200
150
100
50
0

RED LOBSTER

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7
2013

2014

2015

July 18.2015
GRAND OPEN

5 5 1 HORAI

July 17.2015
GRAND OPEN
1st in Japan

1st in Osaka

Trends in surrounding areas of Universal CityWalk OsakaTM
The Park Front Hotel at Universal Studios Japan® opened on August 1
Connected with Universal CityWalk OsakaTM with a deck
Further vitalization of the whole area
combined
PIZZANAPOLETANO

July 27.2015
GRAND OPEN

ｎｏｌｂｏｏJuly 17.2015
GRAND OPEN

Occupancy rate toexceed 90%
Improvement in
profitability

Gottie’s BEEF

August 13.2015
GRAND OPEN

™ & © Warner Bros. Entertainment Inc. Harry Potter Publishing Rights © JKR. (s15)
TM & © Universal Studios. All rights reserved. CR15-3332

6

Management Status of Logistics Properties
Leasing status
Implemented leasing activities for remaining sections targeted for leasing during 5FP (1,257 tsubo) and forapproximately 22,000 tsubo (7.6% of the entire portfolio), of which contracts will end over the next year

Leasing status of contract ending during
5FP

Leasing status of contract ending between
September 2015 and August 2016

Completed leasing of 5.7% (1,257 tsubo)

Concluded contract

100.0%(All are fixed-term lease contract for 5 years or more)

Under negotiation: 16.4％ (3,631 tsubo)

Concluded contract

Kawaguchi Logistics
Center A Tower(ordinary lease contract
renewal period)

83.6%

Contract renewal

21.0%
Rent increase

New tenant

79.0%

51.0%

Contract renewal

Rent flat

Rent decrease

21.0%

28.0%

Rent increase

Funabashi Logistics Center

Hanyu Logistics Center

Completed leasing by grasping
intention of existing lessee to continue
its occupancy

Concluded contract with existing lessee atincreased rent, although extension is for ashort period of time

100.0%

65.7%

Chiyodamachi Logistics Center

Successfully renewed the ordinary lease
contract under same conditions and forsame period

Rent flat

34.3 %
Landport Hachioji

Completed leasing by setting
sections that match the needs fromsurrounding parties

7

Environmental Measures
Acquisition of “DBJ Green Building” certification
Three logistic facilities and two retail facilities (note) NMF owns acquired “DBJ Green Building” certification on October 9, 2015.
Rank

Certified as a “Properties with exceptionally highenvironmental & social awareness” under “DBJ Green
Building Certification,” a comprehensive evaluation
system for real estate properties with highenvironmental and social awareness by Development
Bank of Japan Inc. (DBJ)

Rank

Certified as a “Properties with excellent environmental &social awareness” under “DBJ Green Building
Certification,” a comprehensive evaluation system forreal estate properties with high environmental and social
awareness by Development Bank of Japan Inc. (DBJ)

Landport Urayasu

Landport
AtsugiAtsugi Minami Logistics
Center B Tower

Rank

Certified as a “Properties with excellent
environmental & social awareness under“DBJ Green Building Certification,” acomprehensive evaluation system forreal estate properties with highenvironmental and social awareness by
Development Bank of Japan Inc. (DBJ)

Morisia Tsudanuma

What is “DBJ Green Building”
certification?

Green Building certification
system is a comprehensive
evaluation systemestablished by Development
Bank of Japan Inc. (DBJ) tosupport efforts concerning
real estate properties withenvironmental and social
awareness.
Recipe SHIMOKITA(Note) The concerned assets are succeeded by Nomura Real Estate Master Fund, Inc. established as of October 1, 2015 due to the merger of NMF, Nomura Real Estate Office Fund, Inc. and Nomura Real Estate Residential Fund, Inc.

8

Management Status of Portfolio
Tenant diversification (based on leased floor space)
Yokohama Okadaya
Mitsui-Soko Logistics
Fukuyama Transporting

Undisclosed

Area
ratio

9.8%

7.4%

7.1%

Total number of tenants

296 tenants

Total leased floor space

947,538.68㎡

ASKUL

5.9%

5.3%

Izumiya

5.1% 4.5% 3.9% 3.7% 3.7%

43.5%

Neovia Logistics Services
Amazon Japan Logistics

Otsuka Warehouse

OthersNippon ExpressDiversification of lease maturity (based on rent)
15.0%

10.0%

0.2%
Retail

11.7%
5.0%

1.0%
1.9%

2.2%

3.7%
1.1%

0.0%

3.3%

1.6%

Logistics

2.2%

9.1%

2.9%
4.2%

3.7%

6.0%

3.2%

2.9%

1.4%

1.0%
1.2%

0.2%
0.2%

2.5%

0.4%

1.6%

4.2%

4.5%

0.3%

0.1%
1.4%

0.6%

0.2%
1.3%

FP6
FP7
FP8
FP9
FP10 FP11 FP12 FP13 FP14 FP15 FP16 FP17 FP18 FP19 FP20 FP21 FP22 FP23 FP24 FP25
2016/2 2016/8 2017/2 2017/8 2018/2 2018/8 2019/2 2019/8 2020/2 2020/8 2021/2 2021/8 2022/2 2022/8 2023/2 2023/8 2024/2 2024/8 2025/2 2025/8(Reference ： New NMF) FP1

FP2

FP3

FP4

FP5

FP6

FP7

FP8

FP9

FP1 0

FP11

FP12

FP13

FP14

FP15

FP1 6

FP17

FP18

FP19

FP20

(10/1～)

9

Timing of Tenant Rent Renewals（Reference）New NMF
Property Name

Tenant Name

Lease
Term

FP1
（10/1～）

FP2

FP3

FP4

FP5

FP6

FP7

FP8

PF9

FP6

FP7

FP8

FP9

FP10

FP11

FP12

FP13

FP14

FP15

Feb. 2016

Aug. 2016

Feb. 2017

Aug. 2017

Feb. 2018

Aug. 2018

Feb. 2019

Aug. 2019Feb. 2020

Aug. 2020

FP10

Logistics
Landport Urayasu

Fukuyama Transporting

Fixed

Kawaguchi Ryoke Logistics Center

Nippon Express

Fixed

Sagamihara Tana Logistics Center

Neovia Logistics Services

Fixed

Sagamihara Onodai Logistics Center

Fukuyama Transporting

NormalNihon Tosho Yuso

Fixed

Oriental Standard Japan

Fixed

KANAGAWA LC

Fixed

DIC

Fixed

NTT LOGISCO①

Fixed

NTT LOGISCO②

Fixed

Hanyu Logistics Center

Nippon Express

Fixed

Ota Higashishinmachi Logistics Center

VantecNormalLandport Hachioji

Landport Kasukabe

Funabashi Logistics Center

Ota Kiyohara Logistics Center Ota International Cargo Terminal

NormalChiyodamachi Logistics Center ITOCHU-SHOKUHIN

NormalRetailMorisia Tsudanuma

Aeon Retail

Fixed

Nitori Makuhari

Nitori

NormalKonami Sports Club Fuchu Konami Sports & Life

NormalFESTA SQUARE

Yaoko

Fixed

Sundai Azamino

Sundai Education Promotion

Fixed

MegalosKanagawa

Megalos

NormalLand Only 3 properties(Shibuya, Setagaya,
Suginami)

Not disclosed

Fixed

Land Only(Other than above)

Not disclosed

Fixed(Note) Extracted the tenants that the rent renewal becomes due by FP15 (Aug. 2020) and leasing area that is higher than a constant scale

10Appraisal Value Status (5th Fiscal Period End)
Status as of the end of 5th FP
End of 4ｔｈ period End of 5th period Comparison

Total appraisal value¥296.1 billion

Total book value¥264.5 billion

Appraisal value¥291.3 billion¥296.1 billion

1.6%

Unrealized gain / loss

+ ¥31.6 billion

Logistics¥146.0 billion¥148.7 billion

1.8%<Reference>
Unrealized gain/loss per unit:

+ ¥ 18,981

Retail(excluding land)¥129.2 billion¥131.2 billion

1.5%

Net asset per unit:

¥ 98,971

NAV per unit:

¥ 117,952

Retail(land)¥16.0 billion¥16.1 billion

0.7%

Change in total appraisal value and cap rate
Logistics（¥ min）

149,000（¥ min）

5.60%

Retail (excluding land)

132,000（¥ min）

5.80%

Retail (land)

17,0006.40%+¥109 million

147,000+¥2,650 million

5.40%

145,000

5.60%▲0.08%

141,000

128,000
5.00%
4.80%

4th period
Appraisal value
171
1

Decrease
Flat
Increase

126,000

5.00%

Appraisal value
18
1
0

5.20%

▲0.04%

4th period

5th period
Cap rate

6.20%

15,000

5.40%

5.20%

143,000

Increase
Unchanged
Decrease+¥1,970 million

130,000

Increase
Unchanged
Decrease18
30

5th period

13,000

16
3
2

5.80%

▲0.00%

11,0005.60%

4th period
Appraisal value

Cap rate
Decrease
Flat
Increase

6.00%

Increase
Unchanged
Decrease

12
40

5th period
Cap rate
Decrease
Flat
Increase5110(Note 1) For the 4rd period, appraisal at acquisition of properties acquired during 5th period is included(Note 2) Cap rates are the weighted average of the appraisal value by direct capitalization approach
However, cap rate for Retail(Land) excludes MMC Ibaraki Maintenance Center

11

Financial Status
Bank formation

Interest-bearing liabilities(¥ bln)Financial institution

Total Interestbearing liabilities

Average interest rate
0.95 %¥110.3 billion

Ratio of long-term
debt

Ratio of fixed-rate
debt

92.6 %

87.2 %* Including fixed interest by IR swap

The Bank of TokyoMitsubishi UFJ

20.5

Development Bank of Japan

8.8

Sumitomo Mitsui Banking
Corp.

20.5

Mizuho Trust & Banking Co.

8.0

Mizuho Bank

14.4

Resona Bank

2.6

Mitsubishi UFJ Trust andBanking Corp.

9.1

Nippon Life Insurance

2.5

Sumitomo Mitsui Trust Bank

9.1

The Bank of Fukuoka

2.5

The Norinchukin Bank

9.1

Total Debt

LTV

(Reference)

Average remaining
duration(loan-to-value)

4.0 years

38.3 %

Bond

13.0

Borrowings

12.2
10.0 9.6

10
8
6
4

JCR

AA -

Outlook(Note)(Note) Designation to credit monitor (direction: positive) was announced in a press
release dated May 27, 2015.

Bonds

10.8
9.0

6.7

6.0

5.5

4.0 4.1

4.0

3.6

5.0
3.0

2.0

2

LT issuer rating(¥ bln)16
12

Rating agency

3.0

Diversification of repayment dates
14

Credit ratings

107.3

1.0

0
6th
Period8th
Period10th
Period12th
Period14th
Period16th
Period18th
Period20th
Period22th
Period24th
PeriodCommitment line
Commitment line agreement
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation¥10 billion

Mizuho Bank, Ltd.

(Commitment period: 1year)

12Forecasts for the 6th fiscal period
Forecasts for the 6th fiscal period
6th FP Forecast(Announced April 14)(Ended Feb. 29 2016)

6th FP Forecast(Announced April 14)<Term Adjustment> (Note1)

Cash Distribution on Merger
Forecast (Announced August 4)<Final Fiscal Period>(ended September 30, 2015)(Comparison)

Operating Revenues¥10,654 million¥1,987 million¥2,000 million

0.7％

Operating Profits¥4,907 million¥996 million¥951 million- 4.5％Net Income¥4,229 million¥882 million¥832 million- 5.6％Cash Distribution¥2,540 /unit¥530 /unit¥500 /unit- ¥30(Note 1) The figures are calculation of those equivalent to what occurred in September, the final fiscal period, from the 6th FP Forecast announced in summary of financial results dated April 14, 2015.
(Note 2) Various figures for the fiscal period ended September 30, 2015 (final fiscal period) are forecasts based on “Notice Concerning Revisions of Forecasts of Financial Results and Cash Distribution for the Fiscal Period Ending August 31, 2015 andForecasts of Financial Results for the Fiscal Period Ending September 30, 2015 (Final Fiscal Period) and Cash Distribution on Merger” which Nomura Master Fund announced on August 4, 2015 and may change in the future depending on
acquisitions and sales of real estate, etc., changes in the real estate market, etc. and other circumstances surrounding Nomura Master Fund.
Moreover, the above forecasts do not guarantee the amounts of distributions.

Change in distributions(¥ / unit)

3,000¥2,540
2,500
2,000
1,500

<Term Adjustment>

1,000

¥530

-¥49

+¥19

・Repairs

・Others

500

¥500

0
6th FP
Cash Distribution<Term Adjustment>
6th FP Cash Distribution<Final Fiscal Period> CashDistribution on Merger

13Investment Management Strategy

14

Background of the Merger
Road map of mid-to long-term growth strategy

Mid-term asset size
target: ¥400 bln

Risk tolerance✓ Risk of large tenants moving out¥266.3 bln¥238.0 bln¥227.6 bln

Current challenges✓ Expansion of asset size is required in order to enhance risk
tolerance (enhance portfolio stability by diversifying assets
and tenants)¥255.6 bln

External growth✓ Limited opportunities for acquisition of prime properties(appropriate yield) due to overheated real estate sales
marketInternal growth
FP1

FP2

FP3

FP4

LTV

FP5

Operational LTV level:
31.1%

32.3%

31.3%

35.9%

30%～40%38.3%✓ Limited possibility to provide cash distribution with upside
potential through internal growth as the number of properties
expected to see increase in rent is limited

External environment surrounding J-REIT market❐ Intensified acquisition competition in real estate market❐ Polarization in sizes of REITs❐ Diversification in investment asset types of J-REITs❐ Tax reform in 2015 enables the inclusion in expenses of “the amortization costs of goodwill”

Proposed merger of three REITs (*) as a measure to realize further enhancement of unitholders’value(*) NMF, Nomura Real Estate Office Fund, Inc. Nomura Real Estate Residential Fund, Inc.

15

Transformation – into One of the Largest Diversified Type REITs in JapanConcepts of the Merger
Pursue sustainable growth by transforming from a Specialized REIT into a Diversified REIT・ Achieve middle-risk and middle-return product feature by integrating asset types
・ Enable investment that capture optimal timing of investment, which differs by asset types
・ Expand acquisitions opportunities in response to diversification of asset types which REITs invest in, such as complex facilities, hotels,
factories and health care facilities

Strengthen stability and enhance growth strategy through benefit of a large scale REIT
・Drastic enhancement in stability through highly diversified properties and tenants・Actively implement measures, such as replacement of properties and reconstructions through sponsor’s collaboration, to improve asset value
・Promote reduction of funding costs and diversify funding methods through enhancement of fund raising capacity

Accelerate mutual growth with Nomura Real Estate Group by establishing the Leasing Business Value Chain
・Accelerate an amicable cycle of mutual growth with Nomura Real Estate Group by establishing interactive functions of“property pipeline” and“management pipeline”

Aiming to become the No. 1 REIT in Japan
Strategy
Portfolio Size

Portfolio Quality

Credibility
Financial Soundness

Performance16

Realization of Leasing Business Value Chain (1) - First measure of sponsor support -GEMS Ichigaya

NRE Kichijoji Building
Property Name

Use

NRE Kichijoji Building

RetailGEMS Ichigaya

RetailPROUD FLAT Hatchobori

Residential

PROUD FLAT Itabashi
HonchoResidential

Location
Kichijoji-Honcho,Musashino-City
Rokubancho,
Chiyoda-Ward
Hatchobori,Chuo-Ward
Honcho,Itabashi-Ward

PROUD FLAT Hatchobori

PROUD FLAT Itabashi Honcho
Estimated
NOI yield

Acquisition PriceAppraisal Value

Difference

Acquisition Due Date

¥5,310 million¥5,330 million-¥20 million

4.4%

October 30, 2015

¥2,080 million¥2,090 million-¥10 million

4.2%

October 30, 2015

¥920 million¥923 million-¥3 million

4.6%

October 30, 2015

¥720 million¥723 million-¥3 million

4.9%

October 30, 201517

Realization of Leasing Business Value Chain (2) - First measure of sponsor support -PMO Ginza Hatchome

PMO Tamachi
Property NameUse

PMO Tamachi

OfficePMO Ginza Hatchome

OfficePMO Shibakoen

OfficeLocation
Shiba,
Minato-Ward
Ginza,
Chuo-Ward
Shibakoen,
Minato-WardTotal

PMO Shibakoen
Estimated
NOI yield

Acquisition PriceAppraisal Value

Difference

Acquisition Due Date

¥6,210 million¥6,400 million-¥190 million

4.1％

March 1, 2016

¥3,970 million¥4,130 million-¥160 million

4.0％

March 1, 2016

¥3,900 million¥3,950 million-¥50 million

4.2％

March 1, 2016

¥23,100 million¥23,546 million-¥436 million

4.2％

－

18

Forecasts
Forecasts for the 1st and 2nd fiscal periods of the new REITFirst Fiscal Period Forecasts(announced on Oct. 2, 2015)

Second Fiscal Period Forecasts(announced on Oct. 2, 2015).
Operating Revenues¥24,288 million¥29,723 million

Operating Income¥6,273 million¥10,801 million

Ordinary Income¥3,636 million¥8,178 million

Net Income¥3,635 million¥8,177 million

Net Income per unit

¥976 /unit¥2,197 /unit

Distribution in Excess of Net Income
Per Unit¥1,124 /unit¥513 /unit

Cash Distribution
per Unit¥2,100 /unit¥2,710 /unit

Total Assets¥929,031 million¥944,342 million

Interest-Bearing Debt

¥403,664 million¥418,271 million

LTV

43.5 ％

44.3 ％(Note) Forecasts of distributions for the periods ending February 29, 2016 and August 31, 2016 are based on the press release "Notice Concerning Revision to Forecasts ofFinancial Results for the Fiscal Period Ending February 29, 2016 and the Fiscal Period Ending August 31, 2016" dated October 2, 2015 and may change in the future depending on
acquisitions and sales of real estate, etc., changes in the real estate market, etc. and other circumstances surrounding Nomura Master Fund. Moreover, the above forecasts do notguarantee the amounts of distributions.

19Ａ Ｐ Ｐ Ｅ Ｎ Ｄ Ｉ Ｘ

20

Income Statement
4th Fiscal Period

5th Fiscal Period

From Sep. 1, 2014

From Mar. 1, 2015

To Feb. 28, 2015
Amount(￥000)
10,066,094

To Aug. 31, 2015
Amount(￥000)
10,406,793

Difference(￥000)
340,699

Difference
Ratio (%)
3.4

10,049,349

10,379,977

330,627

3.3

9,068,947

9,253,044

184,096

2.0

Other rental revenues

980,402

1,126,933

146,531

14.9

Parking revenues

91,016

94,516

3,499

3.8

Operating revenues
Real estate rental revenues*1

Rental revenues

5th FP actual - 4th FP actual

Incidental income*2

801,535

889,79088,254

11.0

Other miscellaneous revenues*387,850142,626

54,77662.4

16,744

26,816

10,07160.1

5,315,542

6,078,557

763,01414.4

4,358,151

4,421,692

63,541

1.5

Repairs and maintenance258,742

187,661(71,080)(27.5)

Property and other taxes

726,772

748,164

21,392

2.9

Depreciation

1,705,559

1,738,832

33,273

2.0

Other rental expenses

1,667,077

1,747,033

79,956

4.8

Asset management fees

787,713

836,589

48,8766.2-

659,323

659,323-

169,677

160,950(8,727)(5.1)

Gain on investments in silent partnership
Operating expenses
Real estate rental expenses*1

Merger expenses
Other operating expenses*4

4,750,552

4,328,236(422,315)(8.9)

Non-operating revenues

1,825

4,176

2,351

128.8

Non-operating expenses

605,851

638,647

32,795

5.4

Interest expense

474,074

498,179

24,1045.1

8,700

13,073

4,373

50.3

Operating profit

Investment Corporation Bond Interest

123,076

127,394

4,317

3.5

Ordinary income

4,146,526

3,693,766(452,759)(10.9)

Income before income taxes

4,146,526

3,693,766(452,759)(10.9)

746

1,350

604

80.9

4,145,779

3,692,415(453,364)(10.9)

Other non-operating expenses

Income tax, etc.
Net income*5

Retained earnings brought forward

959

241

(717)

(74.8)

Retained earnings at end of period

4,146,739

3,692,657(454,081)(11.0)*Reference [5th Fiscal Period]
1. Real estate rental profits:¥5,958,284 thousand(Change from previous FP : ¥267,085 thousand)
2. Incidental income
Utility charges :¥709,185 thousand

3. Other real estate rental revenues
Cancellation penalties, etc.
4. Other operating expenses
Asset custody fee:
Administrative service fees:
Directors fee, etc.:¥15,571 thousand¥61,894 thousand¥7,200 thousand

5.Other non-operating expenses
Loan arrangement fees, etc.:¥125,499 thousand(reference) Renovation expenses
Capital expenditure:
Total:¥448,225 thousand¥635,887 thousand*Figures are rounded down to the nearest thousand.
Total cash distribution

4,146,497

3,691,881(454,615)(11.0)

21

Balance Sheet
Liabilities and net assets

AssetsCurrent assets

4th Fiscal Period

5th Fiscal Period

as of Feb. 28, 2015
AmountRatio(￥000)(%)
19,975,268
7.2

as of Aug. 31, 2015
AmountRatio(￥000)(%)
21,873,266
7.6

Cash and bank deposits

12,486,260

4.5

14,457,463

5.0

Cash and bank deposits in trust

6,333,926

2.3

6,663,335

2.3

Other current assets

Current Liabilities
Trade accounts payable

4th Fiscal Period

5th Fiscal Period

as of Feb. 28, 2015

as of Aug. 31, 2015

Amount(￥000)
6,352,365

Ratio(%)2.3

Amount(￥000)
10,798,164

Ratio(%)3.8493,9220.2

439,285

0.2

Short-term debt

*2

4,000,000

1.4

8,100,000

2.8*285,6000.0

85,6000.0

1,155,080

0.4

752,467

0.3

256,538,143

92.8

265,797,854

92.4

Current portion of long-term debt

251,007,192

90.8

260,686,439

90.6

Other accounts payable

235,3260.1

333,4480.1

14,286,858

5.2

14,225,731

4.9

Accrued income taxes

549

0.0

751

0.0

Buildings

3,363,651

1.2

3,302,525

1.1

Land

10,923,206

3.9

10,923,206

3.8

Accrued consumption taxes--

103,577

0.0Real estate in trust

236,716,016

85.6

246,440,993

85.7

26,2110.0

37,290

0.0

Buildings in trust

99,574,736

36.0

102,513,245

35.6

1,509,800

0.5

1,582,911

0.6Land in trust

137,141,279

49.6

143,927,747

50.0

955

0.0

115,298

0.0

104,920,428

37.9

112,085,048

39.0

Noncurrent assets
Property and equipment*1

Real estate

Construction in Progress
Intangible assets
Leasehold rights in trust

Accrued expenses
Rent received in advance
Other current liabilities
Long-term Liabilities

4,317

0.0

19,7140.0

3,843,886

1.4

3,843,864

1.3

Investment Corporation Bonds *2

3,000,000

1.1

3,000,000

1.0

3,828,326

1.4

3,827,940

1.3Long-term debt

*2

92,064,600

33.3

99,121,800

34.5
0.2

15,5590.0

15,9230.0

Security deposits from tenants

539,430

0.2

539,430

Investment and other assets

1,687,064

0.6

1,267,550

0.4

Security deposits from tenants in trust

Investment securities

463,151

0.2

99,6670.0

9,316,397

3.4

9,423,817

3.3

Long-term prepaid expenses

588,6120.2

532,582

0.2

Total liabilities

111,272,793

40.2

122,883,212

42.7

Long-term deposits

89,2050.0

89,2050.0

165,267,144

59.8

164,813,062

57.3

Security deposits

546,0950.2

546,095

0.2

Unitholders' capital

161,120,405

58.3

161,120,405

56.0

26,5270.0

25,1550.0

Retained earnings

4,146,739

1.5

3,692,657

1.3

26,5270.0

25,1550.0

Total net assets

165,267,144

59.8

164,813,062

57.3

276,539,938

100.0

287,696,275

100.0

Total liabilities and net assets

276,539,938

100.0

287,696,275

100.0

Other

Deferred Assets
Investment Corporation Bond Issuing Expenses
Total assets

Unitholders' equity*2 Debt (long-term debt due whithin a year are included in the short-term debt)(unit : million of yen)

*1 Property and equipment
Acqisition Accumulated
Price Depreciation

Real estate, etc.
Buildings(Depreciation for
current FP)

Book value
at FP end

267,860

7,174(1,737)

260,686

3,532

229

(61)

3,302

Land

10,923－－

10,923

Buildings in trust

109,457

6,944(1,676)

102,513

Land in trust
Construction in Progress

143,927
19

－
－

－
－

143,927
19

Balance of interest-bearing debt (millions of yen)

110,307
Short-term debt＋Long-term debt
+ Investment Corporation Bonds

Total asset interest-bearing debt ratio

Total assets

38.3%

Long-term debt + Investment Corporation Bonds
Long-term interest-bearing debt ratio

Short-term debt＋Long-term debt
+ Investment Corporation Bonds

92.6%

22

Cash Flow Statement
4th Fiscal Period

5th Fiscal Period

Sep. 1, 2014 - Feb. 28, 2015

Ｍａｒ. 1, 2015 - Aug. 31, 2015(¥000)(¥000)

4,146,526
1,706,847
1,143(1,790)482,774
12,963(32,035)(571,565)
25,989(50,000)
85,472(4,822)(275,528)
27,519(45,631)5,507,862
1,790(481,052)(3,844)
5,024,754

3,693,766
1,740,121
1,372(1,887)511,253(85,026)(25,573)
571,565
56,030－(54,636)
48,067
103,577
73,11048,1286,679,869
1,887(500,173)(5,187)
6,176,395

Payments for purchases of intangible assets
Payments for purchases of intangible assets in trust
Purchases of investment securities
Proceeds from withdrawal of investment securities
Reimbursement of security deposits to tenants in trust
Proceeds from security deposits from tenants in trust
Payments for security deposits
Net cash provided by (used in) investing activities(6,375)(18,351,735)－(4,489)－24,321(75,226)
960,736(29,968)(17,482,737)(8,027)(11,351,806)(2,250)－(104,838)
456,448(340,022)
462,128－(10,888,367)

III.Cash flows from financing activities
Proceeds from short-term debt
Repayment of short-term debt
Proceeds from long-term debt
Repayment of long-term debt
Proceeds from issuance of investment corporation
Payments of investment corporation bonds issuanceDistributions to unitholders
Net cash provided by (used in) financing activities

7,000,000(3,000,000)
11,800,000(42,800)
3,000,000(27,670)(4,079,025)
14,650,504

4,100,000－
7,100,000(42,800)－－(4,144,617)
7,012,582

IV.Net increase (decrease) in cash and cash equivalents
V.Cash and cash equivalents at beginning of period
VI.Cash and cash equivalents at end of period

2,192,520
16,627,667
18,820,187

2,300,610
18,820,187
21,120,798

I.Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of investment corporation bond issuanceInterest income
Interest expenses
Decrease (increase) in rental receivables
Decrease (increase) in prepaid expenses
Decrease (increase) in consumption taxes receivable
Decrease (increase) in long-term prepaid expenses
Decrease (increase) in long-term deposits
Increase (decrease) in trade accounts payable
Increase (decrease) in other accounts payable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in rent received in advance
OthersSubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
II.Cash flows from investing activities
Payments for purchases of property and equipment
Payments for purchases of property and equipment in trust23Overview of Property Acquired During 5th Fiscal Period
Summary of the property (Kawaguchi Ryoke Logistics
Center)Completion Date

October 2003

Location

Kawaguchi-City, Saitama

AccessApprox. 1.5km from Kawaguchi-Motogo
Station on the Saitama Railway line
Approx. 2.3km from “Kaga IC” and 3.0km
from “Shikahamabashi IC” on the
Metropolitan Expressway

Contract date

April 10, 2015

Acquisition dateJuly 1, 2015

Acquisition price¥10,790 million

Appraisal value¥11,400 million (as of Aug. 31, 2015)

NOI yield (Note)

5.4%

Leasable floor
space

42,840.91m2 (12,959.37 tsubo)

Occupancy rate

100.0% (as of Aug. 31, 2015)＜Photo＞＜MAP＞

Kawaguchi Ryoke
Logistics Center

Major Evaluation Point
・ Easy access to a wide area toward central Tokyo andTohoku・ Capable of 24 hour operations and securing sufficient
employment
・ High-functioning logistics warehouse specifications
・ Increase of investment ratio in “Greater Tokyo” area
(Note) This indicates NOI yield obtained using direct capitalization approach on the appraisal report for the acquisition price.

24

Overview of Equity Interest in Silent Partnership During 5th Fiscal Period
Summary of silent partnership equity<Photo>Godo Gaisha Osaka Hirakata ProjectNon-recourse loans¥2,747 million

Beneficiary interest in realestate in trust, etc.
¥3,692 million

Silent partnership equity¥945 million••

The Fund acquired¥100 million (10.6%)
Obtained preferential
right to purchase thebeneficiary interest inreal estate＜MAP＞

Summary of the property (Hirakata Logistics Center)
Completion date

April 2003

Location

Hirakata-City, Osaka

AccessApprox. 4.3km from Hirakata East IC
on the Daini Keihan Road

Appraisal value¥3,540 million (as of Feb. 28, 2015)

Appraisal NOI yield

5.3%

Leasable floor space

19,807.18m2 (5,991.67 tsubo)

Occupancy rate

100.0% (as of Aug. 31, 2015)

Major Evaluation Point
•

•
•
•

Two largest markets (Osaka andKyoto) in the Kansai area within its
reachCapable of 24 hour operations andsecuring sufficient employment
High-functioning logistics warehouse
specifications
Acquisition of preferential negotiationrights for prime properties

25

Overview of Property Transferred During 5th Fiscal Period
Mitsubishi Motors Ibaraki Maintenance Center (Land)<Photo before building demolition>

Summary of the property
Location

Ibaraki-City, Osaka

Contract date

April, 30, 2015

Transfer date

September 1, 2015

Scheduled transfer price¥1,133 million

Appraisal value¥908 million (as of Aug. 31, 2015)

Book value¥829 million (as of Aug. 31, 2015)

Leasable floor space

5,704.24m2 (1,725.53 tsubo)

Background to Transfer＜MAP＞

・Received “Cancellation Notice” dated June 26, 2014
Date of cancellation: June 30, 2015 (notice one year prior to the cancellation)

・Started considering the transfer in tandem with leasing activities
・Conducted limited bidding<Target>・Local companies with needs forown useProfit from transfer: approx. ¥240 million

26

Portfolio Data (as of August 28, 2015)
Diversification by region

Incorporation by use

4.8%

Portfolio building age
5.1%

17.8%

14.8%

GreaterTokyo area

Retail : Logi.

80.4%

50.1% : 49.9%

Average age

49.9%

41.4%

14.8 years 53.4%

32.3%
80.4%

Greater Tokyo area

Kinki area

Others

Logistics

Retail (station)

Lease term(based on leased floor space)

Retail (residential)

10 years or more

5 to 10 years

Less than 5 years

Lease term remaining(based on leased floor space)

3.6%

8.5%

22.8%

Averageremaininglease term

Averagelease term

20.8%

17.4%

12.4 years

5.7 years
67.1%

27.1%

32.7%

10 years or more

5 to 10 years

10 years or more

5 to 10 years

2 to 5 years

Less than 2 years

2 to 5 years

Less than 2 years

27Portfolio List
Type

Area

Narashino City, Chiba

16,6006.2

17,40039,736.87

98.3

4.70

Yokosuka City, Kanagawa

13,640

5.1

15,10029,383.65

100.0

6.89

Recipe SHIMOKITA

Setagaya-ku, Tokyo

10,407

3.9

10,7006,295.22

100.0

4.38

6.15

Kawasaki More’s

Kawasaki City, Kanagawa

6,080

2.3

7,240

18,810.31

100.0

7.39

100.0

3.91

EQUINIA Shinjuku

Shinjuku-ku, Tokyo

4,260

1.6

4,560

3,611.59

100.0

5.81

50,450.00

100.0

4.32

EQUINA Ikebukuro

Toshima-ku, Tokyo

3,990

1.5

4,320

2,693.93

100.0

8.36

9,930

57,448.03

100.0

7.30

covirna machida

Machida City, Tokyo

3,440

1.3

4,250

2,891.32

100.0

10.85

3.1

9,150

34,837.65

100.0

5.79

Nitori Makuhari

Chiba City, Chiba

3,080

1.2

3,490

14,367.98

100.0

3.90

2.8

8,370

29,630.48

100.0

5.90

Konami Sports Club Fuchu

Fuchu City, Tokyo

2,730

1.0

3,230

12,385.18

100.0

2.76

4,660

1.7

5,320

30,641.98

100.0

3.40

FESTA SQUARE

Saitama City, Saitama

2,600

1.0

2,960

7,480.63

100.0

5.40

Atsugi City, Kanagawa

4,590

1.7

5,130

24,931.11

100.0

6.15

GEMS Shibuya

Shibuya-ku, Tokyo

2,490

0.9

2,640

1,791.34

100.0

4.18

Hanyu Logistics Center

Hanyu City, Saitama

3,810

1.4

4,310

24,850.80

100.0

2.72

Sundai Azamino

Yokohama City, Kanagawa

1,700

0.6

1,920

2,286.47

100.0

4.89

Kawaguchi Logistics Center B Tower

Kawaguchi City, Saitama

3,750

1.4

4,320

13,648.70

100.0

2.92

EQUINIA Aobadai

Yokohama City, Kanagawa

1,560

0.6

1,810

2,457.36

100.0

9.33

Kawaguchi Logistics Center A Tower

Kawaguchi City, Saitama

2,830

1.1

3,270

12,003.57

100.0

2.92

Megalos Kanagawa

Yokohama City, Kanagawa

1,000

0.4

1,320

6,217.85

100.0

9.06

Atsugi Minami Logistics Center A
Tower

Atsugi City, Kanagawa

2,690

1.0

3,160

9,825.52

100.0

5.36

Universal CityWalk Osaka

Osaka City, Osaka

15,5005.8

16,6009,733.28

94.6

4.42

Ota Nitta Logistics Center

Ota City, Gunma

3,430

1.3

3,760

42,328.00

100.0

1.40

Izumiya Senrioka

Suita City, Osaka

8,930

3.4

10,50024,399.12

100.0

5.43

Ota Higashishinmachi Logistics
CenterOta City, Gunma

2170

0.8

2420

23,584.72

100.0

1.35

14,941.54 (Retail)100.0

Ota Kiyohara Logistics Center

Ota City, Gunma

650

0.2

715

9,397.38

100.0

1.03

5,856.50 (Logistics)

100.0

Chiyodamachi Logistics Center

Oura-Gun, Gunma

330

0.1

361

4,592.00

100.0

3.76

Izumiya Yao

Yao City, Osaka

4,406

1.7

5,010

34,198.01

100.0

3.97

132,810 49.85491361

148,716

653,416.37

100.0

2.96

Izumiya Obayashi

Takarazuka City, Hyogo

3,020

1.1

3,590

11,714.36

100.0

3.89

Ichibancho stear

Sendai City, Miyagi

4,700

1.8

5,450

4,611.68

100.0

2.42

EQUINIA Aobadori

Sendai City, Miyagi

1,640

0.6

1,860

4,030.37

100.0

Mitsubishi Motors Meguro

Meguro-ku, Tokyo

2,740

1.0

2,880

3,381.19

100.0－

Mitsubishi Motors Chofu

Chofu-shi, Tokro

1,760

0.7

1,840

4,183.63

100.0－

Mitsubishi Motors Shibuya

Shibuya-ku, Tokyo

1,570

0.6

1,740

1,421.31

100.0－

Mitsubishi Motors Nerima

Nerima-ku, Tokyo

1,240

0.5

1,310

1,725.61

100.0－

Mitsubishi Motors Kawasaki

Kawasaki City, Kanagawa

950

0.4

1,040

3,057.02

100.0－

Mitsubishi Motors Takaido

Suginami-ku, Tokyo

850

0.3

898

1,923.64

100.0－

Mitsubishi Motors Katsushika

Katsushika-ku, Tokyo

800

0.3

837

1,930.05

100.0－

Mitsubishi Motors Higashikurume

Higashikurume City, Tokyo

800

0.3

828

4,105.00

100.0－

Mitsubishi Motors Setagaya

Setagaya-ku, Tokyo

770

0.3

810

1,305.78

100.0－

Mitsubishi Motors Suginami

Suginami-ku, Tokyo

740

0.3

827

1,831.00

100.0－

Mitsubishi Motors Sekimachi

Nerima-ku, Tokyo

600

0.2

627

989.77100.0－

Mitsubishi Motors Higashiyamato

Higashiyamato City, Toyko

450

0.2

496

2,783.79

100.0－

Mitsubishi Motors Motosumiyoshi

Kawasaki City, Kanagawa

370

0.1

377

1,646.97

100.0－

Mitsubishi Motors Kawagoe

Kawagoe City, Saitama

350

0.1

369

2,462.40

100.0－

Mitsubishi Motors Edogawa

Edogawa-ku, Tokyo

200

0.1

211

892.56100.0－

Mitsubishi Motors Sayama

Sayama City, Saitama

160

0.1

169

1,793.00

100.0－

Ibaraki City, Osaka

820

0.3

908

5,704.24

0.0－

Investment
Rate
(%)

Landport Urayasu

Urayasu City, Chiba

17,4006.53170316

Landport Itabashi

Itabashi-ku, Tokyo

15,710 5.897302106

Landport Kawagoe

Kawagoe City, Saitama

13,700Landport Atsugi

Atsugi City, Kanagawa

Kawaguchi Ryoke Logistics Center

Leasable Space(㎡)

Occupancy
Rate(%)

19,80070,045.85

100.0

4.16

Morisia Tsudanuma

17,80052,794.55

100.0

6.42

Yokosuka More’s City

5.1

15,50071,569.89

100.0

3.73

11,410

4.3

12,10047,995.23

100.0

Sagamihara City, Kanaguchi

10,790

4.1

11,60042,840.91

Sagamihara Tana Logistics Center

Sagamihara City, Kanagawa

10,6004.0

11,700

Sagamihara Onodai Logistics
CenterSagamihara City, Kanagawa

8,700

3.3

Landport Hachioji

Hachioji City, Tokyo

8,250

Landport Kasukabe

Kasukabe City, Saitama

7,340

Funabashi Logistics Center

Funabashi City, Chiba

Atsugi Minami Logistics Center B
Tower

PML
(%)

Type

Area

Kinki Area

Logisticsl Subtotal (19 properties)

AppraisalValue(in millions)Tokyo Area

Other

Investment
Rate
(%)

AcquisitionPrice(in millions)

Retail other than land-only property

Tokyo Area
Logistics

AcquisitionPrice(in millions)

Location

Property name

Other

Investment Securities
Tokyo
Area

Godo Kaisha Osaka Hirakata Project

Hirakata City, Osaka

100

-

-

－

－

－

Silent Partnership Equity Interest

Property name

Merad Owada

Location

Osaka City, Osaka

6,640

2.5

AppraisalValue(in millions)Leasable Space(㎡)

Occupancy
Rate
(%)

PML
(%)

7,280

3.33

1.57

Tokyo Area

Land-only retail property

Kinki Area

Mitsubishi Motors
Ibaraki Maintenance Center
Retail Subtotal (38 properties)

133,58350.1

147,397

301,031.52

97.7

2.84

Total (57 properties)

266,393

100.0

293,113954,447.89

99.3

2.56

28

List of End-of Period Appraisal Value
Appraisal Valueat 5th Period End

Appraisal Valueat 4th Period End(¥ mln)(¥ mln)(¥ mln)Morisia Tsudanuma

16,60016,884

17,400

2.3%

Yokosuka More’s City

13,64013,755600

4.0%

Recipe SHIMOKITA

10,407

12,500

▲400

▲3.2%

Kawasaki More’s

11,60011,400200

1.8%

10,683

11,70011,400

300

2.6%

8,700

8,450

9,930

9,700

230

2.4%

8,250

8,031

9,150

8,720

430

4.9%

Appraisal Valueat 5th Period End

Appraisal Valueat 4th Period End

Difference
between(¥ mln)(¥ mln)(¥ mln)(¥ mln)Landport Urayasu

17,40017,03319,80019,800--Landport Itabashi

15,71015,42017,80017,400400

Landport Kawagoe

13,70013,232

15,50014,900Landport Atsugi

11,41010,955

12,100

Kawaguchi Ryoke Logistics Center

10,79010,923

Sagamihara Tana Logistics Center

10,600

7,048

8,370

8,200

170

2.1%

4,660

4,651

5,320

5,190

130

2.5%

4,516

5,130

4,990

140

2.8%

3,650

4,310

4,230

80

1.9%

Kawaguchi Logistics Center B
Tower

3,750

3,715

4,320

4,220

100

2.4%

Kawaguchi Logistics Center A Tower

2,830

2,822

3,270

3,200

70

2.2%

2,690

2,643

3,160

3,090

70

2.3%

3,430

3,253

3,760

3,690

70

1.9%

2,170

2,063

2,420

2,380

40

1.7%

650

611

715

702

13

1.9%

Atsugi Minami Logistics Center A
Tower
Ota Nitta Logistics Center
Other

Ota Higashishinmachi Logistics
CenterOta Kiyohara Logistics Center

Logistics Subtotal (19 properties)

330
132,810324
130,032361

354

148,716

145,7127
2,650

Increase

Decrease

9
4

47
8
2

Other

±0

43

4th Period ⇒5Period

1.8%

Tokyo Area

3rd Period ⇒4th Period

2.0%Land-only retail property

Comparison with the previous period

Other

Chiyodamachi Logistics Center

Kinki Aera

3,810

Retail other than land-only property

7,340

Funabashi Logistics Center

4,590

Change17,300100

0.6%

15,10014,900200

1.3%

10,733

10,70010,600

100

0.9%

6,080

6,167

7,240

7,160

80

1.1%

EQUINIA Shinjuku

4,260

4,297

4,560

4,480

80

1.8%

EQUINA Ikebukuro

3,990

4,020

4,320

4,260

60

1.4%

covirna machida

3,440

3,640

4,250

4,100

150

3.7%

Nitori Makuhari

3,080

2,984

3,490

3,490

-

-

Konami Sports Club Fuchu

2,730

2,673

3,230

3,160

70

2.2%

FESTA SQUARE

2,600

2,511

2,960

2,950

10

0.3%

GEMS Shibuya

2,490

2,484

2,640

2,550

90

3.5%

Sundai Azamino

1,700

1,647

1,920

1,850

70

3.8%

EQUINIA Aobadai

1,560

1,573

1,810

1,750

60

3.4%

Megalos Kanagawa

1,000

1,007

1,320

1,320

-

-

Universal CityWalk Osaka

15,50015,705

16,60016,600--Izumiya Senrioka

8,930

8,773

10,50010,300200

1.9%ChangeLandport Kasukabe

Atsugi Minami Logistics Center B
Tower
Hanyu Logistics Center

Difference
between(¥ mln)Property NameTokyo Area

Logistics

Tokyo Area

Book Valueat 5th Period End

Book Valueat 5th Period End

Sagamihara Onodai Logistics
Center
Landport Hachioji●

AcquisitionPrice(¥ mln)AcquisitionPrice(¥ mln)Property Name

Merad Owada

6,640

6,601

7,280

7,150

130

1.8%

Izumiya Yao

4,406

4,292

5,010

4,910

100

2.0%

Izumiya Obayashi

3,020

3,179

3,590

3,560

30

0.8%

Ichibancho stear

4,700

4,644

5,450

5,050

400

7.9%

EQUINIA Aobadori

1,640

1,559

1,860

1,820

40

2.2%

Mitsubishi Motors Meguro

2,740

2,764

2,880

2,840

40

1.4%

Mitsubishi Motors Chofu

1,760

1,776

1,840

1,840

-

-

Mitsubishi Motors Shibuya

1,570

1,586

1,740

1,740

-

-

Mitsubishi Motors Nerima

1,240

1,251

1,310

1,280

30

2.3%

Mitsubishi Motors Kawasaki

950

959

1,040

1,030

10

1.0%

Mitsubishi Motors Takaido

850

859

898

898

-

-

Mitsubishi Motors Katsushika

800

808

837

825

12

1.5%

Mitsubishi Motors Higashikurume

800

808

828

825

3

0.4%

Mitsubishi Motors Setagaya

770

779

810

792

18

2.3%

Mitsubishi Motors Suginami

740

748

827

818

9

1.1%

Mitsubishi Motors Sekimachi

600

606

627

620

7

1.1%

Mitsubishi Motors Higashiyamato

450

455

496

492

4

0.8%

Mitsubishi Motors Motosumiyoshi

370

375

377

376

1

0.3%

Mitsubishi Motors Kawagoe

350

355

369

366

3

0.8%

Mitsubishi Motors Edogawa

200

204

211

211

-

-

Mitsubishi Motors Sayama

160

163

169

168

1

0.6%

Mitsubishi Motors
Ibaraki Maintenance Center

820

829

908

937

▲29

▲3.1%

Retail Subtotal (38 properties)

133,583

134,471

147,397

145,318

2,079

1.4%

Total (57 properties)

266,393

264,503

296,113

291,384

4,729

1.6%

29

Portfolio Map
09

Logistics

08

01 Landport Urayasu
02 Landport Itabashi
03 Landport Kawagoe
04 Landport Atsugi
05 Kawaguchi Ryoke Logistics Center
06 Sagamihara Tana Logistics Center
07 Sagamihara Onodai Logistics Center
08 Landport Hachioji
09 Landport Kasukabe
10 Funabashi Logistics Center
11 Atsugi-Minami Logistics Center B Tower
12 Hanyu Logistics Center
13 Kawaguchi Logistics Center B Tower
14 Kawaguchi Logistics Center A Tower
15 Atsugi-Minami Logistics Center A Tower
16 Ota Nitta Logistics Center
17 Ota Higashi-Shinmachi Logistics Center
18 Ota Kiyohara Logistics Center
19 Chiyodamachi Logistics Center

33

03

35

12 & 1302
23
31
27 30 29
05
03
08 21
25
22 10
28 20

07

05

06 06

11

32

34

01

01

07

24
14

12
04

26

09

Retail13

21

10 & 14

20

18
16
19

02

19
15

16 38
17

18

17
12

01 Morisia Tsudanuma
02 Yokosuka More’s City
03 Recipe SHIMOKITA
04 Kawasaki More’s
05 EQUINIA Shinjuku
06 EQUINIA Ikebukuro
07 Covirna machida08 Nitori Makuhari
09 Konami Sports Club Fuchu
10 FESTA SQUARE
11 GEMS Shibuya
12 Sundai Azamino
13 EQUINIA Aobadai
14 Megalos Kanagawa
15 Universal CityWalk Osaka
16 Izumiya Senrioka
17 Merad Owada
18 Izumiya Yao
19 Izumiya Obayashi
20 Ichibancho stear
21 EQUINIA Aobadori
22 Mitsubishi Motors Meguro (Land)
23 Mitsubishi Motors Chofu (Land)
24 Mitsubishi Motors Shibuya (Land)
25 Mitsubishi Motors Nerima (Land)
26 Mitsubishi Motors Kawasaki (Land)
27 Mitsubishi Motors Takaido (Land)
28 Mitsubishi Motors Katsushika (Land)
29 Mitsubishi Motors Higashikurume (Land)
30 Mitsubishi Motors Setagaya (Land)
31 Mitsubishi Motors Suginami (Land)
32 Mitsubishi Motors Sekimachi (Land)
33 Mitsubishi Motors Higashiyamato (Land)
34 Mitsubishi Motors Motosumiyoshi (Land)
35 Mitsubishi Motors Kawagoe (Land)
36 Mitsubishi Motors Edogawa (Land)
37 Mitsubishi Motors Sayama (Land)
38 Mitsubishi Motors Ibaraki Maintenance Center(Land)

30

Unitholders (at end of 5th Fiscal Period)
Number of unitholders

Breakdown of financial institutions: 149 (0.7%)
・Financial institutions
・Other domestic corporations : 362 (1.8%): 206 (1.0%)
・Foreign corporations

End of 4th FY(2015/2/28)
Unitholders
20,422End of 4th period

Individuals and others:
19,705 (96.5%): 136 (0.8%)
・Financial institutions
・Other domestic corporations : 307 (1.7%): 213 (1.2%)
・Foreign corporations

End of 5th FY(2015/8/31)
Unitholders
17,947

Banks

64,541 units

3.88% 63,071 units

3.79%

Trust banks

687,427 units

41.28% 786,263 units

47.22%

Life insurance companies

22,648 units

1.36% 31,085 units

1.87%

Non-life insurance companies

1,128 units

0.07%

667 units

0.04%

Other financial institutions

90,131 units

5.41% 72,648 units

4.36%

865,875 units

52.00% 953,734 units

57.27%

Top 10 unitholders

Individuals and others:
17,291 (96.3%)

Unitholder

Number of investment units
End of 4th
FY
238,488(2015/2/28) （14.3％）
No. of Units
1,665,260

865,875（52.0％）

144,735（8.7％）

416,162（25.0％）

953,734（57.3％）

141,018（8.5％）

371,782（22.3％）

Financial institutions

Other domestic corporations

Foreign corporations

Ratio

393,33923.62%

2 The Master Trust Bank of Japan, Ltd.

169,052

10.15%

3 Trust & Custody Services Bank, Ltd.

141,894

8.52%

4 Nomura Real Estate Development Co., Ltd.

87,8205.27%

5 Nomura Bank (Luxembourg) S.A.

85,071

5.11%

6 The Nomura Trust and Banking Co., Ltd.

65,621

3.94%

25,0571.50%

20,912

1.26%

17,836

1.07%

13,1690.79%

1,019,771

61.24%NOMURA PB NOMINEES LIMITED OMNIBUS-MARGIN(CASHPB)CREDIT SUISSE SECURITIES (EUROPE) LIMITED PB
8OMNIBUS CLIENT ACCOUNTSTATE STREET BANK-WEST PENSION FUND
9
CLIENTS-EXEMPT
10 The Gibraltar Life Insurance Co., Ltd.

Individuals and others

Number of units

1 Japan Trustee Services Bank, Ltd.

7

End of 1st FY
End of 5th
FY (2013/8/31)
198,726(2015/8/31) （11.9％）
No. of Units
1,665,260

End of 5th period

Total

31

Tenant Status (at end of 5th Fiscal Period)
Top 10 tenants (based on leased area)
TenantUse

Property Name

Total leased
area
(㎡)

Ratio
(%)

Landport Urayasu
1

Fukuyama Transporting Co., Ltd.

Logistics

92,389.48

9.8

70,311.49

7.4

67,691.71

7.1

Sagamihara Onodai Logistics Center
Izumiya Senrioka
2

Izumiya Co., Ltd.

RetailIzumiya Yao
Izumiya Obayashi
Kawaguchi Ryoke Logistics Center3

Nippon Express Co., Ltd.

Logistics
Hanyu Logistics Center

4

Amazon Japan Logistics K.K.

Logistics

Landport Kawagoe

56,377.76

5.9

5

Neovia Logistics Service

Logistics

Sagamihara Tana Logistics Center

50,450.00

5.3

6Yokohama Okadaya

Retail

48,193.96

5.1

Yokosuka More’s City
Kawasaki More’s
7

Mitsui-Soko Logistics Co., Ltd.

Logistics

Ota Nitta Logistics Center

42,328.00

4.5

8ASKUL Corporation

Logistics

Landport Itabashi

37,276.71

3.9

9

Undisclosed (Note)

Retail(land)

Mitsubishi Motors (Total 16 properties)

35,432.72

3.7

10

Otsuka Warehouse Co., Ltd.

Logistics

Landport Urayasu

35,104.40

3.7

508,465.08

55.9

Top 10 tenants total(Note) The name of the tenant is undisclosed due to unavoidable circumstances.

32

Changes in Financial Performance
1st FP

2nd FP

3rd FP

4th FP

5th FP

Operating Revenues

million yen

3,683

9,176

9,468

10,066

10,406

Operating Profits

million yen

2,089

5,348

4,638

4,750

4,328

Net Income

million yen

1,251

4,860

4,079

4,145

3,692

Asset Total

million yen

252,265

261,582

257,040

276,539

287,696

Interest-bearing Debt Total

million yen

78,47884,43580,39399,150110,307

Net Asset

million yen

162,371

165,982

165,201

165,267

164,813Return on Assets (ROA)

%

2.5

3.8

3.1

3.1

2.6

Return on Equity (ROE)

%

3.5

6.0

4.9

5.1

4.4

FP End Capital Adequacy Ratio

%

64.4

63.5

64.3

59.8

57.3

LTV

%

31.1

32.3

31.3

35.9

38.3

times

9.6

13.2

10.2

9.5

8.2

Weighted Average Interest Rate

%

0.99

0.98

1.12

1.00

0.95

Debt Average Remaining Duration

years

4.8

4.4

5.1

4.6

4.0

million yen

3,123

7,755

7,127

7,396

7,697

%

6.26

6.57

5.94

5.84

5.73

FFO

million yen

1,950

6,359

5,617

5,853

5,433

Number of Properties

properties

54

55

55

56

57

Acquisition Price Total

million yen

227,616

238,023

238,023

255,603266,393

Book Value Total

million yen

229,489

239,044

238,207

254,835

264,503

Appraisal Value Total

million yen

239,326

252,818

257,123

279,984

296,113

NAV per Unit

thousand yen

103

107

110

114

117

Interest Coverage Ratio

Rent NOINOI Yield (acquisition price base)

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

Rent NOI=Real Estate Rental Business Revenues-Real Estate Rental Business Income+Current FP Depreciation and Amortization*For the total asset value at start of 1st FP, total assets amount on the date of commencement of the actual asset management (June 13, 2013) is usedNOI Yield (Acquisition Price Base)=Rent NOI/Total Acquisition Price x 100 *annual basis

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

FFO=Net Income+Current FP Depreciation and Amortization+Investment Corporation Bond Issuance Ammortization-Real Estate Disposition Profit & Loss

*For the net asset at start of 1st FP, total net asset amount on the date of commencement of the actual asset management (June 13, 2013) is used

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

Capital Adequacy Ratio at FP End=Net Asset at FP End/Total Asset at FP End x 100*annual basis=each measure/operating days x 365 days

LTV=Total Interest-bearing Debt at FP End/Total Asset at FP End x 100
Interest Coverage Ratio=Net Income Before Interest Depreciation/(Interest Expenses+Investment Coroporation Bond Interest)

33

Logistics Facilities Environment
Change in the size of the e-commerce retail market
and the number of home delivery service
Number of parcels handled(milliom)（¥billion）

3,700

Clothes andaccessories

5,000

3,500

Spots, books，music
and toys

4,000

3,300

Pharmaceuticalcosmetics

3,000

3,100

2,000

2,900

1,000

2,700

0

2,500

6,000

2007

2008

2009

2010

2011

2012

2013

2014

Warehouse stock in greater Tokyo area

Warehouses in greater Tokyo
area

Large-scale warehouses
8.0 million tsubo 23.6%

Food
Furniture,
household goods,
etc.
General retail

New large-scale warehouses
4.2 million tsubo 12.3%<Right axis>
Number of parcels
handledChange in 3PL ３PL事業の売上高推移
sales

Supply-demand balance of rentablelarge scale logistics facilities（平成20年度=100）
160

160

（2008＝ 100）
New Supply

140
140

(tsubo) 400,000
120
120

Net demand

Vacancy Rate (Overall)

Vacancy Rate (More than one year old)
Forecast

20%

350,000
16%

100

100

300,000

80
80

250,000

12%

200,000

60
60

8%

150,000
40
40

100,000
4%

20
20

50,00000

02008
平成20年度

2009
平成21年度

2010
平成22年度

2011
平成23年度

2012
平成24年度

2013
平成25年度

2014
平成26年度

0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017（出所）シービーアールイー株式会社（注）公表資料に基づき3PL事業の売上がセグメント別(各社の定義に基づきます。）に7年間情報取得可能な8社を対象とし、平(Source) Prepared by Nomura
Real Estate Asset Management Co., Ltd. based on public data of the Ministry of Economy, Trade and Industry and the Ministry of Land, Infrastructure, Transport and Tourism (upper left), public data of the
成20年度を100として売上高合計（指数）の推移を示したものです。なお、M&A等による企業の事業拡大等も含まれます。
Ministry of Internal Affairs and Communications and the Ministry of Economy, Trade and Industry (upper right), and CBRE, Inc. (lower left and lower right).

34

Retail Facilities Environment
Retail sales (by item)

Change in retail industry corporate performance

Food and beverage

45

120

40

36

34 10035
Other retail

30

25

80

21

20
15

13

12

6

5

Mechanicalequipment

0

60
40

Automobile retail

Clothing and accessories

10

17

Commodities

17

20

Ordinary income(¥ billion)
1,800

Operating profit on sales

(%)
4.5

1,600

4

1,400

3.5

1,200

3

1,000

2.5

800

2

600

1.5

400

1

200

0.5

0

0
7-9
10-12
1-3
4-6
7-9
10-12
1-3
4-6
7-9
10-12
1-3
4-6
7-9
10-12
1-3
4-6
7-9
10-12
1-3
4-6
7-9
10-12
1-3
4-6
7-9
10-12
1-3
4-6
7-9
10-12
1-3
4-6
7-9
10-12
1-3
4-6

¥ trillion (total retail sales)
140
46¥ trillion (sales by item)50

701988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

2006

2007

2008

2009

2010

2011

2012

2013

2014

Total retail industry sale (excluding fuel)Change in Economy Watcher’s index( DI )
65

DI for current business conditions

Change in cash wage

DI for future conditions

60( YOY % )
4
2

55
50

0

45

-2

40
35

-4

30
25

-6

20

-8

15
2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

1998 1999 2000 2001 2002 2003 2005 2006 2007 2008 2009 2010 2012 2013 2014 2015

(Source) Prepared by Nomura Real Estate Asset Management Co., Ltd. based on public data of the Ministry of Economy, Trade and Industry (upper left), public data of the Ministry of Finance (upper right) ,public data of the Cabinet
Office (lower left ), and public data of Ministry of Health, Labour and Welfare (lower right).

35

Overview of the Asset Management Company
Overview

Organizational chart

Finance
Client Relations & Marketing
Investment Management
Product Management
Research & Analysis section

Acquisitions
Investment Management Planning

NMF Investment Management
Group

Memberships

Discretionary Investment M anagement Section

Chief Strategy Officer

License, etc.

Accounting

Project Screening Committee

・Financial instruments business operator registration:
Commissioner of the Kanto Local Finance Bureau(Financial Instruments) No. 374
・Licensed for discretionary proxy in realty trading:
Minister of Land, Infrastructure and Transport
Permit No.18
・Licensed for real estate trading: Governor of Tokyo (3)No. 81679
・The Investment Trusts Association, Japan; The Japan
Investment Advisers Association, The Association
for Real Estate Securitization, etc.

Internal Audit

NPR Valuation Committee

Registration,

nmf3285@nomura-re.co.jp

Leagal & Compliance

Risk Management Committee+81-3-3365-8767

Statutory Auditors

Contact Information

Corporate Planning

President & CEO

8-5-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo

Compliance Committee

Location

Board of
Statutory Auditors

Nomura Real Estate Holdings, Inc. (100%)

Board of Directors

Shareholder

Investment committee

Nomura Real Estate Asset Management Co., Ltd.

General Meeting of Shareholders

Company name

Fund Management
Fund Management
Management Planning
Asset Management I
Asset Management II
NPR Investment Management

36This document has been prepared for the purpose of provision of information only, and should not be construed
as an offer, solicitation or commercial conduct of any nature associated with any specific products. Investors
wishing to purchase the investment units of Nomura Real Estate Master Fund, Inc. should contact their own
securities brokers or dealers. A fee may be charged by your financial instruments business operator in relation
to the sale or purchase of investment units.
For management fees that the Fund pays to Nomura Real Estate Asset Management Co., Ltd., please refer tothe terms and conditions of the Fund, asset management reports, etc.
The forward-looking statements with respect to the future financial results contained in this document are basedon the current facts about the investment policy of the Fund, applicable laws and regulations, the market
environment, business practice, etc., as of the preparation date of this document and do not reflect or consider
any changes in the circumstances after the preparation date. These forward-looking statements inherently
reflect uncertainty about known risks as well as unknown risks and other factors and may deviate from theactual operating and management results, financial conditions, etc., of the Fund.
Investment in real estate investment securities may result in a loss due to a decline in the transaction pricecaused by, for example, changes in the price or the revenue-generating capability of the underlying properties
or deterioration of the financial conditions of the issuer.
Although the information contained in this document is intended to be complete and thorough, there is no
assurance of precision and safety of the same. Please note that the contents of this document is subject tochange or cancellation without prior notice.
It is prohibited to make duplication, reproduction, distribution or use of any part or whole of the information
contained in this document without express prior written consent.