STATEMENT ON PRINCIPAL ADVERSE IMPACTS OF INVESTMENT DECISIONSON SUSTAINABILITY FACTORS
Product Name: Nomura Real Estate Master Fund, Inc.
Legal Entity Identifier: 353800TNNZOQ1CPZE086
The following is the adverse sustainability impact statement of Nomura Real Estate Master Fund, Inc. (“NMF”)
pursuant to Regulation (EU) 2019/2088 (“SFDR”). NMF has no employees in accordance with the prohibitionon having employees under the Act on Investment Trusts and Investment Corporations of Japan, and rely on
Nomura Real Estate Asset Management Co., Ltd. (the “Asset Manager”) to manage and operate the properties
in our portfolio. NMF and the Asset Manager are hereinafter referred to collectively as “we”, “us” or “our”.
References to “fiscal year” or “FY” are to the 12 months began or beginning March 1 of the year specified inline with the fiscal year of the Asset Manager, unless noted otherwise.
Please note that SFDR requirements, including the scope of their application to issuers outside the European
Economic Area, continue to evolve. We are therefore taking a principles-based approach to compliance with the
SFDR disclosure standards, which are subject to potential changes in the future.
1. Summary
Pursuant to Article 4 of the Delegated Regulation C (2022)1931 supplementing SFDR (the “SFDR DelegatedRegulation”), NMF is required to publish on its website the information referred to therein covering the periodof one calendar year. NMF is a Japanese real estate investment trust, commonly known as J-REIT, and has noemployees, relying on the Asset Manager for the management and operation of its properties. The Asset Manager
does not operate based on a calendar year, but operates based on NMF’s fiscal year ending in February of every
year. A recalculation and translation of the data into the reference period of one calendar year would most likely
lead to inaccuracies and would therefore provide a potentially less accurate overview of the required
information than using the approved and validated data for the period from March 1, 2023 to February 29, 2024.
This reference period is sufficiently compatible with, and shows results that do not materially differ from, thosethat would be produced using the calendar year-based reference period noted in the SFDR Delegated Regulation.
We consider principal adverse impacts of our investment decisions on sustainability factors. The present
statement is our consolidated statement of the principal adverse impacts on sustainability factors (“PAI”). The
statement covers the reference period from March 1, 2023 to February 29, 2024. The statement will be reviewed
as needed.
Based on the belief that a sustainable society is essential for our sustainable growth, NMF has made effort toaddress social issues through its business in line with its fundamental philosophy of securing stable profit overthe medium to long term while achieving steady growth of assets under management. NMF, together the AssetManager, has conducted asset management in a manner that takes into consideration environmental, social andgovernance (ESG) issues in order to enhance unitholder value over the medium to long term.
We use the definition of PAI as described in Recital 20 of SFDR being “those impacts of investment decisions
and advice that result in negative effects on sustainability factors,” with sustainability factors referring toenvironmental, social and employee matters, respect for human rights, anti‐corruption and anti‐bribery matters
as defined in article 2 (24) of SFDR.
We believe that investment decisions that negatively affect climate or other environment-related resources, or
have negative implications for society, can have a significant impact on risks and value creation for ourunitholders. To this end, we consider PAI of our investment decisions throughout all major steps of theinvestment decision and property management process throughout the lifecycle of the properties in our portfolio.

2. Description of principal adverse sustainability impacts
Nearly all types of economic activity have the potential to impact various PAI indicators both positively andadversely. We aim to manage the risks connected to PAI from our investment decisions in several ways,
including general screening criteria, due diligence and our ESG initiatives. Some of the PAI indicators listed
below are currently already being monitored and reported. As the availability of data improves in the future, we
intend to add more indicators.
Table 1
Principal adverse sustainability impacts statement
NMF does not invest in investee companies, but invest in real estate. As adverse sustainability indicators 1-16
as contained in the Table 1 of Annex 1 of the draft Delegated Regulation pertain to investee companies, these
are not included in this PAI statement, which pertains to real estate investments.
Indicators applicable to investments in real estate assets
Adversesustainability
indicator

MetricImpact in
2023

Impact in
2022

Impact in
2021

Explanation

Actionstaken

Fossilfuels

17.
Exposure
to fossil
fuels
throughrealestateassetsShare ofinvestment
s in realestateassetsinvolved intheextraction,
storage,transport or
manufactur
e of fossil
fuels

N/A

N/A

N/A

We do notinvest in realestate assets
involved in theextraction,
storage,transport or
manufacture offossil fuels.

N/A

Energyefficiency18.
Exposure
toenergyinefficien
t realestateassetsShare ofinvestment
s inenergyinefficient
real estate
assetsAs ofFebruary29, 2024,
42.4% ofourproperties
did not
obtain the
Green
Certification (asdefined to
the right)
based onfloor area.

As ofFebruary28, 2023,
40.5% ofourproperties
did not
obtain the
Green
Certification (asdefined to
the right)
based onfloor area.

As ofFebruary28, 2022,
39.5% ofourproperties
did not
obtain the
Green
Certification (asdefined to
the right)
based onfloor area.

To track theenvironmental
performanceof ourproperties, we
use thefollowingcertifications
issued bythird-party
organizations:the DBJ Green
Building
Certification(“DBJ
Certification”),
the Building
Energy-We will doour best to
obtain any
GreenCertification
for properties
that have notreceivedsuchcertification,
including byimplementin
g measures
to reduce
environment
al impactcaused byourefficiency
Labeling
System(“BELS”)
certification(“BELS
Certification”)
and theComprehensiv
e Assessment
System for
Built
Environment
Efficiency(“CASBEE”)
Certification
for Real Estate(collectively,“GreenCertifications”).

properties,
such asinstallationof LED
lighting andand double
sash
windows andrenovation of
airconditioning
facilities.

Table 2
Additional climate and other environment-related indicators
NMF does not invest in investee companies, but invests in real estate. As additional climate and otherenvironment-related indicators 1-17 as contained in Table 2 of Annex 1 of the draft Delegated Regulation
pertain to investee companies, these are not included in this PAI statement, which pertains to real estate
investments.
Adversesustainability
impactAdverse sustainability impact (qualitative or quantitative)

MetricIndicators applicable to investments in real estate assets
Greenhousegasemissions

18. GHG emissions
Scope 1 GHG emissions generated by properties were 1,535 t-CO2e (in FY 2020),
1,358 t-CO2e (in FY 2021), 1,289 t-CO2e (in FY 2022) and 1,196 t-CO2e (in FY2023).
Scope 2 GHG emissions generated by properties were 21,883 t-CO2e (in FY 2020),
19,637 t-CO2e (in FY 2021), 21,324 t-CO2e (in FY 2022) and 18,379 t-CO2e (inFY 2023).
Scope 3 GHG emissions generated by properties were 34,657 t-CO2e (in FY 2020),
31,114 t-CO2e (in FY 2021), 36,697 t-CO2e (in FY 2022) and 72,148 t-CO2e (inFY 2023).
Total GHG emissions generated by properties were 58,075 t-CO2e (in FY 2020),
52,108 t-CO2e (in FY 2021), 59,310 t-CO2e (in FY 2022) and 91,723 t-CO2e (inFY 2023).
We aim to achieve a 40% reduction in GHG emissions per floor area (intensity)from our portfolio by FY 2030 compared with the FY 2016 level (Medium-term
goal: Achieve a 34% reduction by FY 2025).

Scope 1GHG
emissionsgeneratedby realestate assets
Scope 2GHG
emissionsgeneratedby realestate assets
From 1January2023, Scope
3 GHG
emissionsgeneratedby realestate assets
Total GHG
emissionsgeneratedby realestate assets

Table 3
Additional indicators for social and employee, respect for human rights, anti-corruption and anti-bribery
matters
NMF has no employees in accordance with the prohibition on having employees under the Act on Investment
Trusts and Investment Corporations of Japan, and relies on the Asset Manager to manage and operate theproperties in our portfolio. Accordingly, additional indicators for social and employee, respect for humanrights, anti-corruption and anti-bribery matters in this PAI statement pertain to the Asset Manager and thetenants of the properties in our portfolio, to the extent available.
SOCIAL AND EMPLOYEE, RESPECT FOR HUMAN RIGHTS, ANTI-CORRUPTION AND ANTIBRIBERY MATTERS
Adversesustainability
impactAdverse sustainability impact (qualitative or quantitative)

MetricIndicators applicable to investments to the Asset Manager or tenantsSocial andemployeematters

5. Lack of grievance/complaints handling mechanism related to
employee matters
Nomura Real Estate Group, including us, conducts an annual
employee satisfaction survey, and we use the feedback received
to ensure that our work environment is fair. Also, we haveadopted a 360 degree evaluation framework that allows
employees to evaluate their supervisors in terms of skills,
performance and other qualities.
We also regularly conduct satisfaction surveys to obtain feedback
from our tenants, residents and other property users. The surveys
for our residents are conducted each year; and the surveys for ouroffice, retail and logistics tenants are conducted every three
years. The results of these surveys are shared with property
managers, building managers, developers and other relevant
parties, and we use them to improve the properties and services
for tenants.
6. Insufficient whistleblower protection
Nomura Real Estate Group has established the Nomura Real
Estate Group Helpline as a whistle-blowing system for officers
and employees of the Group, including the Asset Manager. A
similar compliance helpline has been established at the AssetManager as well. The Asset Manager’s officers and employees
can use these helplines to report and consult on violations of laws
or corporate ethics, as well as harassment, human rights, andhealth issues. Persons involved in the helpline operations arebound by confidentiality obligations, and the Asset Manager
strives to protect whistle-blowers so that they are not treatedunfavorably for having made a report.

Share of investments ininvestee companies
without any
grievance/complaints
handling mechanism
related to employee
matters
The Asset Manager has
grievance/complaints
handling mechanisms
available to all of its
officers and employees
as well as to all of its
tenants.

Share of investments inentities without policies
on the protection ofwhistleblowers
All of the AssetManager’s officers andemployees are provided
whistleblower protection.

Anti-corruption
and anti-bribery

15. Lack of anti-corruption and anti-bribery policies
Pursuant to its Basic Policy on Preventing Bribery of Foreign
Public Officials, Regulations on Preventing Bribery of Foreign
Public Officials and Guidelines on Preventing Bribery, the AssetManager has internal procedures regulating interaction withforeign officials such as entertaining, giving gifts, inviting,donating, and utilizing their agencies to prevent corruption andbribery. In addition, the Compliance Department regularly
reviews entertainment and gifts given to officers and employees(once every six months).

As for tenants, when executing a lease agreement, the AssetManager confirms that each tenant is not anti-social forces. In
addition, the Asset Manager requires all lease agreements toinclude provisions requiring the lessees to reject relations with
anti-social forces.

Share of investments inentities without policies
on anti-corruption andanti- bribery consistent
with the United Nations
Convention against
Corruption
The Asset Manager has
compliance policies
addressing anticorruption and antibribery that apply to allof its officers andemployees. In addition,
to the best of ourknowledge, none of ourtenants have any relation
with anti-social forces.

For descriptions of actions which NMF takes and will take with respect to the PAI indicators, please refer to our
ESG website: https://www.nre-mf.co.jp/en/esg/index.html
3. Description of policies to identify and prioritize principal adverse sustainability impacts
Subject to data availability, we monitor the selected PAI indicators for the existing properties in our portfolio.
Prior to our investment in a property, we conduct due diligence review of the property, including ESG due
diligence, which includes selected PAI indicators. The due diligence findings related to selected PAI indicators
are reported and reviewed prior to the investment decision.
NMF has established a green finance framework (“Green Finance Framework”) to issue green bonds andborrows green loans. All proceeds from green finance are allocated to (i) acquisition of assets meeting thefollowing eligibility criteria (“Eligible Green Assets”), (ii) refinancing of loans used to acquire Eligible Green
Assets, and (iii) redemption of outstanding investment corporation bonds issued to acquire Eligible Green Assets.
Eligibility criteria. Eligible Green Assets have acquired any of the following Green Certifications or any
recertification thereof within 36 months after the date of receiving proceeds from green finance, or will acquire
such (re)notification in the future.
For further information, please refer to our ESG website: https://www.nre-mf.co.jp/en/esg/index.html
4. Engagement policies
Due Diligence and Screening
When investing in properties using proceeds from our green financing, we do not consider properties that do
not meet the eligibility criteria under our Green Finance Framework. We also do not consider investing inproperties that building engineering report alleges any issue arising from the use or storage of hazardous
substances to exist or any potential for soil contamination. We also review whether the property we may
acquire is compliant with applicable law.

We have selected PAI indicators GHG emissions intensity as our PAI indicators in Table 2 above with ourbelief that reduction of GHG emissions is one of the major environmental challenges confronted by the world.
We endeaver to reduce GHG emissions and energy consumption based on our environmental performancetarget.
As our PAI indicator in Table 3, we have selected lack of grievance/complaints handling mechanism related to
employee matters. This selection reflects the importance of ensuring that our employees’ work environment isfair and their work is rewarding through impartial evaluations, as well as our initiatives with our tenants. We
have selected insufficient whistleblower protection and lack of anti-corruption and anti-bribery policies as our
additional PAI indicators in Table 3, in line with the policies of Nomura Real Estate Group.
Engagement
We have established targets for the ratio of properties with Green Certifications, GHG emissions and water
consumption and seek to meet these targets through various initiatives, including improvement of building
management and cooperation with tenants and property managers.
We have included environmental provisions, which we refer to as “Green Lease” provisions, in the standard
leases with our tenants. Under the Green Lease provisions, we collaborate with tenants to improve
environmental performance (energy and water saving, waste reduction) for acquisition of Green Certifications
and share the status and goals with regard to energy consumption and other environmental performanceindicators with tenants.
Under our Green Purchasing Manuals, we give preference to the products and services which meet oursasutainability standards in selecting the products and services used for the management of properties in our
portfolio. Moreover, with regard to the selection of suppliers including property managers, building managers
and construction firms, their sustainability initiatives is a key consideration.
5. References to international standards
The Asset Manager became a signatory to the Principles for Responsible Investment (PRI) in December 2017with the emphasis on asset management considering ESG. Moreover, in July 2020, the Asset Manager becamea signatory as a supporter to the Financial Stability Board’s Task Force on Climate-related Financial Disclosures(“TCFD”) established by the Financial Stability Board and joined the the TCFD Consortium, a group of domestic
companies that support TCFD recommendations.
6. Historical comparison
See Table 1, Table 2 and Table 3 above.